Federal Reserve Bulletin, 2002-03

Volume 88 • Number 3 • March 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 141 MONETARY POLICY REPORT TO THE weaker than the economy's potential for a time, CONGRESS the Committee retained its assessment that the balance of risks were tilted unacceptably toward Last year was a difficult one for the economy of economic weakness. The extent and persistence the United States. The slowdown in the growth of any recovery in production will, of course, of economic activity that had become apparent depend critically on the trajectory of final in late 2000 intensified in the first half of 2001, demand in the period ahead, a period in which as businesses slashed investment spending and the economy faces considerable risk of subpar declines in manufacturing output steepened. economic performance. Foreign economies also slowed, further reducing the demand for U.S. production. The aggres- 173 INDUSTRIAL PRODUCTION AND CAPACITY sive actions by the Federal Reserve to ease the UTILIZATION: THE 2001 ANNUAL REVISION stance of monetary policy in the first half of the year provided support to consumer spending and In late 2001, the Board of Governors of the the housing sector. Nevertheless, the weakening Federal Reserve System published the annual in activity became more widespread through the revision of its index of industrial production summer, job losses mounted further, and the and the related measures of capacity and capacunemployment rate moved higher. The devastat- ity utilization for the period January 1992 to ing events of September 11 further set back an October 2001. The updated measures reflect already fragile economy. The economic fallout the incorporation of newly available, moreof the events of September 11 led the Federal comprehensive source data and the introduction Open Market Committee (FOMC) to cut the of improved methods for compiling a few series. target federal funds rate early the following Measured fourth quarter to fourth quarter, week and again at each meeting through the end increases in rates of industrial output and capacof the year. ity have been revised downward from rates pre- Firms moved quickly to reduce payrolls and viously reported for 1999 and 2000. The revicut production after mid-September; manu- sion places the decline in industrial output in facturing and industries related to travel, hos- 2001 at an annual rate of 6.0 percent. The estipitality, and entertainment bore the brunt of mated rate of increase in capacity in 2001 was the downturn. Consumer spending, however, lowered by 0.7 percentage point, to 1.7 percent. remained surprisingly solid over the final three The rate of industrial capacity utilization as of months of the year in the face of enormous the third quarter of 2001 was little changed by economic uncertainty, widespread job losses, the revision; at 74.6 percent in the fourth quarter and further deterioration of household balance of 2001, the rate is 4 percentage points below sheets from the sharp drop in equity prices the nadir of the 1990-91 recession but 3 percentimmediately following September 11. With busi- age points above that of the 1982 recession. nesses having positioned themselves to absorb a falloff of demand, the surprising strength in 188 ANNOUNCEMENTS household spending late in the year resulted in a Federal Open Market Committee directive. dramatic liquidation of inventories. In the end, real GDP posted a much better performance Publication of revisions to Regulation C. than had been anticipated in the immediate after- Amendments to the disclosure requirements of math of the attacks. Regulation C. More recently, there have been encouraging Interagency release of consumer guide on prisigns that economic activity is beginning to firm. vacy notices. The FOMC left its target for the federal funds rate unchanged in its meeting in January 2002, Release of minutes of Board discount rate but reflecting a concern that growth could be meetings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

191 LEGAL DEVELOPMENTS A68 INDEX TO STATISTICAL TABLES Various bank holding company, bank service A70 BOARD OF GOVERNORS AND STAFF corporation, and bank merger orders; and pending cases. A72 FEDERAL OPEN MARKET COMMITTEE AND A1 FINANCIAL AND BUSINESS STATISTICS STAFF; ADVISORY COUNCILS These tables reflect data available as of A74 FEDERAL RESERVE BOARD PUBLICATIONS January 29, 2002. A76 MAPS OF THE FEDERAL RESERVE SYSTEM A3 GUIDE TO TABLES A4 Domestic Financial Statistics A78 FEDERAL RESERVE BANKS, BRANCHES, A42 Domestic Nonfinancial Statistics AND OFFICES A50 International Statistics A63 GUIDE TO SPECIAL TABLES AND STATISTICAL RELEASES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress Report submitted to the Congress on February 27, tioning of those markets. The economic fallout of the 2002, pursuant to section 2B of the Federal Reserve events of September 11 led the Federal Open Market Act Committee (FOMC) to cut the target federal funds rate after a conference call early the following week and again at each meeting through the end of the year MONETARY POLICY AND THE (see box "Monetary Policy after the Terrorist ECONOMIC OUTLOOK Attacks"). Displaying the same swift response to economic Last year was a difficult one for the economy of the developments that appears to have characterized United States. The slowdown in the growth of much business behavior in the current cyclical epieconomic activity that had become apparent in late sode, firms moved quickly to reduce payrolls and 2000 intensified in the first half of the year. Busi- cut production after mid-September. Although these nesses slashed investment spending—making espe- adjustments occurred across a broad swath of the cially deep cuts in outlays for high-technology economy, manufacturing and industries related to equipment—in response to weakening final demand, travel, hospitality, and entertainment bore the brunt an oversupply of some types of capital, and declining of the downturn. Measures of consumer confidence profits. As actual and prospective sales deteriorated, fell sharply in the first few weeks after the attacks, many firms in the factory sector struggled with but the deterioration was not especially large by uncomfortably high levels of inventories, and the cyclical standards, and improvement in some of these accompanying declines in manufacturing output indexes was evident in October. Similarly, equity steepened. At the same time, foreign economies also prices started to rebound in late September, and risk slowed, further reducing the demand for U.S. produc- spreads began to narrow somewhat by early Novemtion. The aggressive actions by the Federal Reserve ber, when it became apparent that the economic to ease the stance of monetary policy in the first half effects of the attacks were proving less severe than of the year provided support to consumer spending many had feared. and the housing sector. Nevertheless, the weakening Consumer spending remained surprisingly solid in activity became more widespread through the over the final three months of the year in the face of summer, job losses mounted further, and the unem- enormous economic uncertainty, widespread job ployment rate moved higher. With few indications losses, and further deterioration of household balance that economic conditions were about to improve, sheets from the sharp drop in equity prices immediwith underlying inflation moderate and edging lower, ately following September 11. Several factors were at and with inflation expectations well contained, the work in support of household spending during this Federal Reserve continued its efforts to counter the period. Low and declining interest rates provided a ongoing weakness by cutting the federal funds rate, lift to outlays for durable goods and to activity in bringing the cumulative reduction in that rate to housing markets. Nowhere was the boost from low 3 percentage points by August. interest rates more apparent than in the sales of new The devastating events of September 11 further set motor vehicles, which soared in response to the back an already fragile economy. Heightened uncer- financing incentives offered by manufacturers. Low tainty and badly shaken confidence caused a wide- mortgage interest rates not only sustained high levels spread pullback from economic activity and from of new home construction but also allowed houserisk-taking in financial markets, where equity prices holds to refinance mortgages and extract equity from fell sharply for several weeks and credit risk spreads homes to pay down other debts or to increase spendwidened appreciably. The most pressing concern of ing. Fiscal policy provided additional support to conthe Federal Reserve in the first few days following sumer spending. The cuts in taxes enacted last year, the attacks was to help shore up the infrastructure of including the rebates paid out over the summer, cushfinancial markets and to provide massive quantities ioned the loss of income from the deterioration in of liquidity to limit potential disruptions to the func- labor markets. And the purchasing power of house- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 Federal Reserve Bulletin • March 2002 hold income was further enhanced by the sharp drop posted a much better performance than had been in energy prices during the autumn. With businesses anticipated in the immediate aftermath of the attacks. having positioned themselves to absorb a falloff of More recently, there have been encouraging signs demand, the surprising strength in household spend- that economic activity is beginning to firm. Job losses ing late in the year resulted in a dramatic liquidation diminished considerably in December and January, of inventories. In the end, real gross domestic product and initial claims for unemployment insurance and Monetary Policy after the Terrorist Attacks The terrorist attacks on September 11 destroyed a portion of line that week to channel the funds to institutions with a the infrastructure of U.S. financial markets, disrupted com- need for dollars. munication networks, and forced some market participants By Thursday and Friday, the disruption in air traffic to retreat to contingency sites in varying states of readi- caused the Federal Reserve to extend record levels of credit ness. These developments, along with the tragic loss of to depository institutions in the form of check float. Float life among the employees of a few major financial firms, increased dramatically because the Federal Reserve contingreatly complicated trading, clearing, and settlement of ued to credit the accounts of banks for deposited checks many different classes of financial instruments. Direct dis- even though the grounding of airplanes meant that checks locations elevated uncertainties about payment flows, mak- normally shipped by air could not be presented to the ing it difficult for the reserve market to channel funds where checkwriters' banks on the usual schedule. Float declined to they were needed most. Depositories that held more reserve normal levels the following week once air traffic was perbalances than they preferred had considerable difficulty mitted to recommence. Lastly, over the course of the week unloading the excess in the market; by contrast, deposi- that included September 11, as the market for reserves tories awaiting funds had to scramble to cover overdraft > began to function more normally, the Federal Reserve positions. As a result, the effective demand for reserves resumed the use of open market operations to provide the ballooned. bulk of reserves. The open market Desk accommodated all The Federal Reserve accommodated the increase in the propositions down to the target federal funds rate, operating demand for reserves through a variety of means, the relative exclusively through overnight transactions for several days. importance of which shifted through the week. On Tuesday The injection of reserves through open market operations morning, shortly after the attacks, the Federal Reserve peaked at $81 billion on Friday. The combined infusion of issued a press release reassuring financial markets that the liquidity from the various sources pushed the level of Federal Reserve System was functioning normally and stat- reserve balances at Federal Reserve Banks to more than ing that "the discount window is available to meet liquidity $100 billion on Wednesday, September 12, about ten times needs." Depository institutions took up the offer, and bor- the normal level. As anticipated by the FOMC, federal rowing surged to a record $45 Vi billion by Wednesday. funds traded somewhat below their new target level for Discount loans outstanding dropped off sharply on Thurs- the rest of the week. By the end of the month, bid-asked day and returned to very low levels by Friday. Separately, spreads and trading volumes in the interbank and other overnight overdrafts on Tuesday and Wednesday rose to markets receded to more normal levels, and federal funds several billion dollars, as a handful of depository and other consistently began to trade around the intended rate. institutions with accounts at the Federal Reserve were The Federal Reserve took several steps to facilitate marforced into overdraft on their reserve accounts. Overnight ket functioning in September in addition to accommodating overdrafts returned to negligible levels by the end of the the heightened demand for reserves. The hours of funds and week. securities transfer systems operated by the Federal Reserve Like their U.S. counterparts, foreign financial institutions were extended significantly for a week after the attacks. The operating in the United States faced elevated dollar liquidity Federal Reserve Bank of New York liberalized the terms needs. In some cases, however, these institutions encoun- under which it would lend the securities in the System tered difficulties positioning the collateral at their U.S. portfolio, and the amount of securities lent rose to record branches to secure Federal Reserve discount window credit. levels in the second half of September. For the ten days To be in a position to help meet those needs, three foreign following the attacks, the Federal Reserve reduced or elimicentral banks established new or expanded arrangements nated the penalty charged on overnight overdrafts, largely with the Federal Reserve to receive dollars in exchange for because those overdrafts were almost entirely the result their respective currencies. These swap lines, which lasted of extraordinary developments beyond the control of the for thirty days, consisted of $50 billion for the European account holders. In addition, the Federal Reserve helped Central Bank, $30 billion for the Bank of England, and an restore communication between market participants and in increase of $8 billion (from $2 billion to $10 billion) for the some cases processed bilateral loans of reserves between Bank of Canada. The European Central Bank drew on its account holders in lieu of market intermediation. 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Monetary Policy Report to the Congress 143 the level of insured unemployment have reversed two years is likely to continue to restrain the growth their earlier sharp increases. Although motor vehicle of spending in coming quarters. To be sure, the conpurchases have declined appreciably from their blis- traction in business capital spending appears to be tering fourth-quarter pace, early readings suggest that waning. But spending on some types of equipment, consumer spending overall has remained very strong most notably communications equipment, continues early this year. In the business sector, new orders for to decline, and there are few signs yet of a broadcapital equipment have provided some tentative indi- based upturn in capital outlays. Activity abroad cations that the deep retrenchment in investment remains subdued, and a rebound of foreign output is spending could be abating. Meanwhile, purchasing likely to follow, not lead, a rebound in the United managers in the manufacturing sector report that States. Furthermore, lenders and equity investors orders have strengthened and that they view the level remain quite cautious. Banks have continued to of their customers' inventories as being in better tighten terms and standards on loans, and risk spreads balance. Indeed, the increasingly rapid pace of inven- have increased a little this year. Stock prices have tory runoff over the course of the last year has left the retreated from recent highs as earnings continue to level of production well below that of sales, suggest- fall amid concerns about the transparency of corpoing scope for a recovery in output given the current rate financial reports and uncertainty about the pace sales pace. Against this backdrop, the FOMC left its at which profitability will improve. target for the federal funds rate unchanged in January. However, reflecting a concern that growth could be weaker than the economy's potential for a time, Monetary Policy, Financial Markets, and the FOMC retained its assessment that the risks were the Economy over 2001 and Early 2002 tilted unacceptably toward economic weakness. The extent and persistence of any recovery in As economic weakness spread and intensified over production will, of course, depend critically on the the first half of 2001, the FOMC aggressively lowtrajectory of final demand in the period ahead. Sev- ered its target for the federal funds rate. Because eral factors are providing impetus to such a recovery firms reacted unusually swiftly to indicators that in the coming year. With the real federal funds rate inventories were uncomfortably high and capital was hovering around zero, monetary policy should be becoming underutilized, the drop in production and positioned to support growth in spending. Money and business capital spending was especially steep. Morecredit expanded fairly rapidly through the end of the over, sharp downward revisions in corporate profit year, and many households and businesses have expectations caused equity prices to plunge, which, strengthened their finances by locking in relatively along with a decline in consumer confidence, pointed low-cost long-term credit. The second installment of to vulnerability in household spending. Meanwhile, a personal income tax cuts and scheduled increases in significant deceleration in energy prices, after a surge government spending on homeland security and early in the year, began to hold down overall inflanational defense also will provide some stimulus to tion; the restraining effect of energy prices, combined activity this year. Perhaps the most significant poten- with the moderation of resource utilization, also tial support to the economy could come from further promised to reduce core inflation. Responding to the gains in private-sector productivity. Despite the pro- rapid deterioration in economic conditions, the nounced slowdown in real GDP growth last year, FOMC cut its target for the federal funds rate 2Vi peroutput per hour in the nonfarm business sector centage points—in 5 half-point steps—by the middle increased impressively. Continued robust gains in of May. Moreover, the FOMC indicated throughout productivity, stemming from likely advances in tech- this period that it judged the balance of risks to the nology, should provide a considerable boost to house- outlook as weighted toward economic weakness. The hold and business incomes and spending and contrib- Board of Governors of the Federal Reserve System ute to a sustained, noninflationary recovery. approved reductions in the discount rate that matched Still, the economy faces considerable risk of sub- the Committee's cuts in the target federal funds rate. par economic performance in the period ahead. As a result, the discount rate declined from 6 percent Because outlays for durable goods and for new homes to 31/2 percent over the period. have been relatively well maintained in this cycle, the At its June and August meetings, the FOMC noted scope for strong upward impetus from household information suggesting continued softening in the spending seems more limited than has often been the economy and a lack of convincing evidence that the case in past recoveries. Moreover, the net decline in end of the slide in activity was in sight. Although household net worth relative to income over the past consumer spending on both housing and nonhousing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

144 Federal Reserve Bulletin • March 2002 Selected interest rates Percent Intended federal funds rate Ten-year Treasury Two-year Treasury Discount rate NOTE. The data are daily and extend through February 21, 2002. The dates on the horizontal axis are those of scheduled FOMC meetings and of any intermeeting policy actions. items—buoyed by the tax cuts and rebates, low mort- in the very near future. Accordingly, the FOMC, at a gage interest rates, declining energy prices, and real- telephone conference on September 17, voted to ized capital gains from home sales—remained fairly reduce its target for the federal funds rate V2 percentresilient, economic conditions in manufacturing dete- age point, to 3 percent, and stated that it continued to riorated further. Firms continued to reduce payrolls, judge the risks to the outlook to be weighted toward work off excess inventories, and cut back capital economic weakness. equipment expenditures amid sluggish growth in Over subsequent weeks, heightened aversion to business sales, significantly lower corporate profits, risk, which caused investors to flock from private to and greater uncertainty about future sales and earn- Treasury and federal agency debt, boosted risk ings. With energy prices in retreat, price inflation spreads sharply, especially on lower-rated corporate remained subdued. In reaching its policy decisions at debt. Increased demand for safe and liquid assets its June and August meetings, the FOMC took into contributed to selling pressure in the stock market. At account the substantial monetary policy stimulus its October 2 meeting, the FOMC had little hard already implemented since the start of the year—but information available on economic developments not yet fully absorbed by the economy—and the since the attacks. However, evidence gleaned from oncoming effects of stimulative fiscal policy mea- surveys, anecdotes, and market contacts indicated sures recently enacted by the Congress. Conse- that the events of September 11 had considerable quently, the Committee opted for smaller interest rate adverse repercussions on an already weak economy: cuts of lA percentage point at both the June and Survey indicators of consumer confidence had fallen, August meetings, which brought the target federal and consumer spending had apparently declined. At funds rate down to 3'/2 percent; as earlier in the year, the same time, anecdotal information pointed to addithe FOMC continued to indicate that it judged the tional deep cutbacks in capital spending by many balance of risks to the outlook as weighted toward firms after an already-significant contraction in busieconomic weakness. After both meetings, the Board ness fixed investment over the summer months. of Governors of the Federal Reserve System also When the FOMC met on November 6, scattered approved similar reductions in the discount rate, early data tended to confirm the information that the which moved down to 3 percent. decline in production, employment, and final demand After the terrorist attacks on September 11, the had steepened after the terrorist attacks. Although an available Committee members held a telephone con- economic turnaround beginning in the first half of ference on September 13, during which they agreed 2002 was a reasonable expectation according to the that the financial markets were too disrupted to allow Committee, concrete evidence that the economy was for an immediate alteration in the stance of monetary stabilizing had yet to emerge. Meanwhile, the marked policy. However, the members were in agreement decrease in energy prices since the spring had that the attacks' potential effects on asset prices and induced a decline in overall price inflation, and inflaon the performance of the economy, and the resulting tion expectations had fallen. Accordingly, the FOMC uncertainty, would likely warrant some policy easing voted to lower its target for the federal funds rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 145 V2 percentage point at both its October and Novem- stantially, the FOMC left the federal funds rate ber meetings and reiterated its view that the risks to unchanged at the close of its meeting, but it continthe outlook were weighted toward economic weak- ued to see the risks to the outlook as weighted mainly ness. The sizable adjustments in the stance of mone- toward economic weakness. tary policy in part reflected concerns that insufficient policy stimulus posed an unacceptably high risk of a more extended cyclical retrenchment that could prove Economic Projections for 2002 progressively more difficult to counter, given that the federal funds rate—at 2 percent—was already at such Federal Reserve policymakers are expecting the a low level. economy to begin to recover this year from the mild By the time of the December FOMC meeting, the downturn experienced in 2001, but the pace of expanmost recent data were suggesting that the rate of sion is not projected to be sufficient to cut into the economic decline might be moderating. After plung- margin of underutilized resources. The central tening earlier in the year, orders and shipments of dency of the real GDP growth forecasts made by the nondefense capital goods had turned up early in the members of the Board of Governors and the Federal fourth quarter, and the most recent survey evidence Reserve Bank presidents is 2Vi percent to 3 percent, for manufacturing also suggested that some expan- measured as the change between the final quarter of sion in that sector's activity might be in the offing. 2001 and the final quarter of this year. The pace of In the household sector, personal consumption expansion is likely to increase only gradually over expenditures appeared to have been quite well main- the course of the year, and the unemployment rate is tained, an outcome that reflected the continuation of expected to move higher for a time. The FOMC zero-rate financing packages offered by the automak- members project the civilian unemployment rate to ers, widespread price discounting, and low interest stand at about 6 percent to 6lA percent at the end of rates. In an environment of very low mortgage inter- 2002. est rates, household demand for housing remained at A diminution of the rate of inventory liquidation a relatively high level, and financial resources freed is likely to be an important factor helping to buoy up by a rapid pace of mortgage refinancing activity production this year. In 2001, businesses cut invenalso supported consumer spending. tories sharply so as to avoid carrying excessive stocks Nonetheless, the evidence of emerging stabiliza- relative to the weaker pace of sales, and although this tion in the economy was quite tentative and limited, process of liquidation probably is not yet complete and the Committee saw subpar economic perfor- in many industries, the overall pace of reduction is mance as likely to persist over the near term. More- likely to slow. Then, as final demand strengthens, over, in the probable absence of significant inflation- liquidation should give way to some restocking later ary pressures for some time, a modest easing action in the year. could be reversed in a timely manner if it turned out As noted above, the forces affecting demand this not to be needed. In view of these considerations, the year are mixed. On the positive side are the stimula- FOMC lowered its target for the federal funds rate tive effects of both fiscal policy and the earlier mone- Va percentage point, to l3A percent, on December 11, tary policy actions. A gradual turnaround in employ- 2001, and stated that it continued to judge the risks to the outlook to be weighted mainly toward economic weakness. As had been the case throughout the year, Economic projections for 2002 the Board of Governors approved reductions in the Percent discount rate that matched the FOMC's cuts in the target federal funds rate, bringing the discount rate to Federal Reserve Governors and VA percent, its lowest level since 1948. Memo: Reserve Bank presidents Indicator Subsequent news on economic activity bolstered 2001 actual Central Range the view that the economy was beginning to stabilize. tendency The information reviewed at the January 29-30, Change, fourth quarter 2002, FOMC meeting indicated that consumer spend- t N o o fo m u i r n th a l G q D u P ar ter1 1.9 y/i-y/i 4-4 ing had held up remarkably well, investment orders Real GDP .1 2-3 V2 21/2-3 had firmed further, and the rate of decline in manufac- PCE chain-type price index 1.3 1-2 About l'/2 turing production had lessened toward the end of Average level, fourth quarter Civilian unemployment rate 5.6 53/4-6'/2 6-6'A 2001. With weakness in business activity abating, gjgjjjgjjffe 1. Change from average for fourth quarter of previous year to average for and monetary policy already having been eased subfourth quarter of year indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

146 Federal Reserve Bulletin • March 2002 ment and a strengthening of the economies of our Change in real GDP major trading partners should provide some lift to final demand, and spending by both households and businesses ought to be supported by robust productivity growth. On the other hand, the problems facing the high-tech sector have not yet completely receded, and indications are that spending on other types of capital equipment remains lackluster. The surprising strength of household spending through this period of economic weakness suggests a lack of pent-up consumer demand going forward. In addition, consumers likely will not benefit from declining energy prices to the extent they did last year, and the net decline in equity values since mid-2000 will probably continue to weigh on consumption spending in the period ahead. NOTE. Here and in subsequent charts, except as noted, annual changes Federal Reserve policymakers believe that con- are measured from Q4 to Q4, and change for a half-year is measured sumer prices will increase slightly more rapidly in between its final quarter and the final quarter of the preceding period. 2002 than in 2001, as last year's sharp decline in energy prices is unlikely to be repeated. The central tendency of the FOMC members' projections for the terrorist attacks of September 11, which had increases in the chain-type price index for personal extremely adverse effects on certain sectors of the consumption expenditures (PCE) is about IV2 pereconomy—most notably, airline transportation and cent; last year's actual increase was about VA perhospitality industries. Nevertheless, by early this year cent. Nevertheless, diminished levels of resource some signs appeared that the economy was beginning utilization, the indirect effects of previous declines in to mend. energy prices on firms' costs, and continued competitive pressures all ought to restrain the pace of Inflation declined last year, pulled down by a sharp price increases outside of the energy sector this year. drop in energy prices. Excluding food and energy items, consumer price inflation leveled off and, by some measures, moved lower last year. Weakening economic activity, the indirect effects of declining energy prices on firms' costs, and continued strong ECONOMIC AND FINANCIAL DEVELOPMENTS competitive pressures helped keep a lid on core con- IN 2001 AND EARLY 2002 sumer price inflation. In 2001, the economy turned in its weakest performance in a decade. Real GDP increased at an annual rate of 3A percent in the first half of the year and, according to the advance estimate from the Com- Change in PCE chain-type price index merce Department, declined at a V2 percent annual rate in the second half. Although the effects of the weakening economy were broadly felt, the factory sector was especially hard hit. Faced with slumping demand both here and abroad, manufacturers cut production aggressively to limit excessive buildups n • n I of inventories. Moreover, businesses sharply reduced their investment spending, with particularly dramatic cuts in outlays for high-technology equipment. By contrast, household spending was reasonably well maintained, buoyed by lower interest rates and cuts in federal taxes. Firms trimmed payrolls through most of the year, and the unemployment rate moved up nearly 2 percentage points to around 53A percent by year-end. Job losses were especially large following NOTE. The data are for personal consumption expenditures (PCE). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 147 The Household Sector exerted a notable restraining influence on household spending last year. Consumer Spending Both monetary and fiscal policy supported consumer spending over the past year. Low interest rates Growth in consumer spending slowed last year but helped enable motor vehicle finance companies to remained sufficiently solid to provide an important offer favorable financing on new vehicles. In addisource of support to overall final demand. Personal tion, low mortgage rates led to a spate of mortgage consumption expenditures (PCE) increased 3 percent refinancing that lasted most of the year, lowering in real terms in 2001 after having advanced 4lA per- payments and freeing cash to be used by households cent in 2000 and around 5 percent in both 1998 and for other spending needs. Indeed, many households 1999. The deceleration in consumer spending was apparently used these refinancings as an opportunity widespread among durable goods, nondurable goods, to extract equity from their homes, a move that and services. However, motor vehicle expenditures further accommodated consumer spending. Furtherremained strong through most of the year and surged more, the first wave of tax reductions from the Ecoin the fall as consumers responded enthusiastically nomic Growth and Tax Relief Reconciliation Act of to automakers' aggressive expansion of financing 2001—including the $300 and $600 rebate checks incentives. After September 11, spending declined in mailed last summer—likely helped to boost spending certain travel- and tourism-related categories, includ- in the latter part of the year. The continued phase-in ing air transportation, hotels and motels, and recre- of the tax reductions enacted last year should provide ation services such as amusement parks; spending in further stimulus to income and consumption this year. these categories has recovered only partially since The personal saving rate, which had declined then. through 1999, leveled off in 2000 and in the first half Last year's downshift in consumption growth reflected the weakening labor market and associated deceleration of income as well as the erosion in Wealth and saving household wealth since the middle of 2000. With employment declining over much of last year, real personal income rose only about PA percent after a -to-income ratio gain of 4V2 percent in 2000. The slowing of income growth was even sharper in nominal terms, but price declines for gasoline and other energy items in the latter half of the year substantially cushioned the blow to real incomes. A continued rise in house prices supported the wealth position of many households; in the aggregate, however, household wealth deteriorated further as equity prices moved lower, on net. The decline in wealth since mid-2000 likely Percent Change in real income and consumption Personal saving rate Percent, annual rate Q Disposable personal income • Personal consumption expenditures NOTE. The data are quarterly. The wealth-to-income ratio is the ratio of household net worth to disposable personal income and extends through 2001 :Q3; the personal saving rate extends through 2001 :Q4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

148 Federal Reserve Bulletin • March 2002 of 2001. The saving rate moved erratically in the adjustable-rate mortgages moved down sharply to second half of the year but rose on average. It shot up very low levels in the fourth quarter and into early in the summer as households received their tax 2002. According to the Michigan SRC survey, declinrebates; it then declined later in the year as house- ing mortgage rates have helped elevate consumers' holds spent some of the rebates and as purchases assessments of homebuying conditions substantially of new motor vehicles soared in response to the since mid-2000. incentives. In the single-family sector, 1.27 million new homes Consumer sentiment, as measured by both the Uni- were started last year, 3V2 percent more than in 2000, versity of Michigan Survey Research Center (SRC) when activity had been held down by higher mortand the Conference Board, had been running at gage rates. The pace of starts moved up further in extremely high levels through most of 2000 but fell January 2002, in part because of unusually favorable considerably near the beginning of last year as con- weather. Furthermore, sizable backlogs of building cerns about the economy intensified. By the spring, permits early this year suggest that construction activmeasures of sentiment leveled off near their historical ity will remain solid. Sales of new homes were averages and well above levels normally associated elevated throughout 2001—indeed, for the year, they with recessions. Sentiment dropped in September. were the highest on record—and sales of existing The SRC measure recovered gradually thereafter, homes remained strong as well. Meanwhile, the while the Conference Board index fell further before increase in home prices moderated last year. The turning up later in the year; by early 2002, both constant-quality price index of new homes, which sentiment measures again stood near their historical attempts to control for the mix of homes sold, rose averages. only VA percent last year, down from a 6 percent gain in 2000. In the multifamily sector, starts averaged 328,000 Residential Investment units last year, a rate close to the solid pace of the past several years. Conditions are still relatively As with consumer spending, real expenditures on favorable for the construction of multifamily units. In housing were well maintained last year, buoyed by particular, vacancy rates have remained low, although favorable mortgage interest rates. Interest rates on rents and property values increased at a slower rate thirty-year fixed-rate mortgages, which had been as last year than in 2000. high as 8V2 percent in the spring of 2000, hovered around the low level of 7 percent in the first half of 2001. They moved down further to 6V2 percent by Household Finance late October, before backing up to 7 percent again by December as prospects for the economy improved. Households continued to borrow at a brisk pace last As monetary policy eased, contract rates on year, increasing their debt outstanding an estimated 83/ percent, a rate about 1 percentage point faster 4 Mortgage rates Private housing starts Percent Millions of units, annual rate Fixed rate A — 8.5 — — 8.0 Single-family — — 7.5 VV// —— 11..22 - ys P*- 7.0 — Adjustable rate \ — 6.5 — .8 — — 6.0 Multifamily — 5.5 — 4 1 , , 1 . . 1 . . 1 . , 1 , . 1 , . 1 . . h , , 1 . TTTI 1999 2000 2001 2002 I 1 1 I 1 1 1 1 I 1 ! 1 1 1 1 NOTE. The data, which are monthly and extend through January 2002, are 1989 1991 1993 1995 1997 1999 2001 contract rates on thirty-year mortgages from the Federal Home Loan Mortgage Corporation. NOTE. The data are quarterly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 149 Household debt service burden Delinquency rates on selected types of household loans Percent — 4 1985 1987 1989 1991 1993 1995 1997 1999 2001 Percent NOTE. The data are quarterly; 2001 :Q4 is a preliminary estimate. Debt burden is an estimate of the ratio of debt payments to disposable income; debt payments consist of the estimated required payments on outstanding mortgage and consumer debt. than the average growth over the previous two years. The cumulative declines in mortgage interest rates encouraged households to take on large amounts of 3 mortgage debt, both by fostering homebuying and by All mortgages — 2 making it attractive to refinance existing mortgages and extract some of the accumulated equity; indeed, the Mortgage Bankers Association (MBA) refinancing index in October reached the highest level since 1989 1991 1993 1995 1997 1999 2001 its inception in January 1980. The frenzied pace of NOTE. The data are quarterly and extend through 2001 :Q3. SOURCE. For auto loans, the Big Three automakers and staff estimates based refinancing activity tailed off some later in the fourth on data from Moody's Investors Service; for mortgages, the Mortgage Bankers quarter, when fixed mortgage interest rates backed Association and the Mortgage Information Corporation. up. All told, mortgage debt grew an estimated 9 percent last year. Strength in durable goods outlays cies at finance companies edged up, although they supported growth in consumer credit (debt not too remained at a relatively subdued level. The ecosecured by real estate) in the first quarter of 2001, but nomic slowdown and the rise in unemployment sigas consumption spending decelerated over the next nificantly eroded the quality of loans to subprime two quarters, the expansion of consumer credit borrowers, and delinquency rates for both mortgages slowed sharply. However, consumer credit growth and consumer credit in that segment of the market surged in the fourth quarter, in large part because of moved sharply higher. the jump in motor vehicle sales. For the year as a whole, the rate of expansion of consumer credit, at 6V4 percent, was well below the 10!/4 percent rate The Business Sector posted in 2000. Hefty household borrowing outstripped the growth Much of the weakness in activity last year was conof disposable personal income in 2001. As a result, centrated in the business sector. In late 2000, manudespite lower interest rates, the household debt- facturers had begun to cut back production in an service burden—an estimate of minimum scheduled effort to reduce an undesired build-up of inventories, payments on mortgage and consumer debt as a share and sharp inventory liquidation continued throughout of disposable income—finished the year near the last year. Moreover, the boom in capital outlays that peak recorded at the end of 1986. Measures of house- had helped drive the expansion through the late 1990s hold credit quality deteriorated noticeably last year. gave way to a softening of spending in late 2000 and According to the MBA, delinquency rates on home to sharp declines last year. Spending dropped for mortgages continued to trend higher from their his- most types of capital equipment and structures; cuttoric lows of the late 1990s, and auto loan delinquen- backs were especially severe for high-tech equip- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

150 Federal Reserve Bulletin • March 2002 ment, some types of which may have been over- 9 percent in 2001. Spending on communications bought. A sharp reduction in corporate profits and equipment swung even more severely, moving from cash flow contributed to last year's downturn in capi- increases of more than 20 percent on average from tal spending, as did general uncertainty about the 1998 to 2000 to a decline of more than 30 percent last economic outlook. Despite the reduction in interest year. Business spending on software held up comrates, which helped restrain businesses' interest paratively well, falling only 2Vi percent in 2001 after expenses, financing conditions worsened somewhat, having risen around 12 percent in 1999 and 2000. on balance, given weaker equity values, higher bor- A number of factors may have weighed on outlays rowing costs for risky firms, and some tightening of for high-tech equipment, including businesses' decibanks' lending standards. sions to lengthen the replacement cycle for computers in light of weak economic conditions and the absence of new applications requiring the most up-to- Fixed Investment date machines. But in addition, the magnitude by which these categories of expenditure had increased Real spending on equipment and software (E&S) in preceding years, together with the abruptness of declined 8V2 percent in 2001 after an increase of the their downturn, suggests that firms may have been same amount in 2000 and double-digit rates of too optimistic about the immediate profitability of increase for several preceding years. Spending on some types of high-tech capital; as these expectations high-tech equipment, which has accounted for about were revised, businesses viewed their previous 40 percent of E&S spending in recent years, dropped investment as more than sufficient to meet anticipated especially sharply last year. Outlays for computers demand. This possibility is especially likely in the and peripheral equipment, which had risen more than case of communications equipment, for which expec- 30 percent in each of the preceding seven years, fell tations about prospects for growth in demand appear to have been disappointed. Some of the cutbacks may have reflected a general pulling back in an environ- Change in real business fixed investment ment of greater uncertainty. The sharp rise and subsequent decline of equity values in the high-tech sector mirrors the pattern of rising and slowing investment and provides some support for the notion that earnings expectations may have been overly upbeat in the past. Under the influence of ongoing weakness in the market for heavy trucks, business spending on motor vehicles declined through most of the year. But spending stabilized in the fourth quarter, as the generous incentives on motor vehicles may have helped boost spending by small businesses as well as consumers. Domestic orders for new aircraft declined last year, especially after the terrorist attacks last fall, but these lower orders had not yet affected spending by year-end because of the very long lags involved in producing planes. Apart from spending on transportation and high-tech equipment, real outlays declined IV2 percent last year after having increased 6 percent in 2000, with the turnaround driven by a sharp swing in spending on many types of industrial machinery and on office furniture. Late last year, conditions in some segments of the high-tech sector showed signs of bottoming. Developments in the semiconductor industry have improved, with production increasing during the fall. Some of the improvement is apparently coming from increased demand for computers. In the advance esti- NOTE. High-tech equipment includes computers and peripheral equipment mate from the Commerce Department for the fourth and communications equipment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 151 quarter, real spending on computers and peripheral Change in real nonfarm business inventories equipment was reported to have surged at an annual rate of 40 percent. However, spending on communi- Percent, annual rate cations equipment, for which evidence of a capital • Total overhang has been most pronounced, continued to • Non-motor-vehicle decline sharply in the fourth quarter, and orders for communications equipment have yet to display any convincing signs of turning around. As for other 1 i ll mi types of capital equipment, spending continued to J decline in the fourth quarter, but a moderate rebound IF in new orders for many types of capital goods from their autumn lows hinted that a broader firming of — 4 demand may be under way. Real business spending for nonresidential struc- I 1 I L J L tures also declined sharply in 2001. Construction of 1995 1997 1999 2001 office buildings dropped last year after having increased notably for several years; industrial building remained fairly steady through the first half of The motor vehicle sector accounted for about onelast year but plummeted in the second half. Vacancy quarter of last year's overall inventory drawdown. rates for these two types of properties rose consider- Late in 2000 and early last year, automakers cut ably, and by year-end the industrial vacancy rate had production in an attempt to clear out excess stocks reached its highest level since mid-1993. Meanwhile, held by dealers. By the spring, vehicle assemblies spending on non-office commercial buildings (a cate- had stabilized, and the automakers instead dealt with gory that includes retail, wholesale, and some ware- heavy stocks by further sweetening incentives to house space) decreased moderately last year. Invest- boost sales. By the end of the year, inventories of cars ment in public utilities moved down as well, a decline and light trucks stood at a relatively lean 2 lA million reflecting, in part, a cutback in spending for commu- units, nearly 1 million units fewer than were held a nications projects such as the installation of fiber- year earlier. optic networks. Investment in the energy sector was a pocket of strength last year. Construction of drilling structures surged in 2000 and much of 2001, as the Corporate Profits and Business Finance industry responded to elevated prices of oil and natural gas. However, with oil and natural gas prices The profitability of the U.S. nonfinancial corporate reversing their earlier increases, drilling activity sector suffered a severe blow in 2001. The profit turned down in the latter part of the year. slump had begun in the fourth quarter of the previous year, when the economic profits of nonfinancial corporations—that is, book profits from current Inventory Investment production with inventory and capital consumption adjustments compiled by the Commerce By late 2000, manufacturers were already cutting Department—plummeted almost 45 percent at an production to slow the pace of inventory accumula- annual rate. The first three quarters of 2001 brought tion as inventories moved up relative to sales. Pro- little respite, and economic profits spiraled downward duction cuts intensified in early 2001, and producers at an average annual rate of 25 percent. The ratio of and distributers liquidated inventories at increasing the profits of nonfinancial corporations to the sector's rates throughout the year. The runoff of inventories gross nominal output fell to IV2 percent last year, a was a major factor holding down GDP growth last level not seen since the early 1980s. Earnings reports year. Indeed, the arithmetic subtraction from real for the fourth quarter indicate that nonfinancial corpo- GDP growth attributable to the decline in nonfarm rate profits continued to fall late in the year. inventory investment was 1 Vi percentage points over Business borrowing slowed markedly last year the four quarters of 2001. However, because sales because firms slashed investment in fixed capital and also were weakening, inventory-sales ratios remained inventories even more than the drop in profits and high in much of the manufacturing sector, and in other internally generated funds. Business debt some portions of the wholesale sector as well, expanded at a 6V4 percent annual rate in 2001, well throughout the year. below the double-digit rates of the two previous Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

152 Federal Reserve Bulletin • March 2002 Before-tax profits of nonfinancial corporations Financing gap and net equity retirement as a percent of sector GDP at nonfarm nonfinancial corporations Percent Billions of dollars 1977 1980 1983 1986 1989 1992 1995 1998 2001 1991 1993 1995 1997 1999 2001 NOTE. The data are quarterly and extend through 2001 :Q3. Profits are from NOTE. The data are annual; 2001 is based on partially estimated data. The domestic operations of nonfinancial corporations, with inventory valuation and financing gap is the difference between capital expenditures and internally capital consumption adjustments. generated funds. Net equity retirement is the difference between equity retired through share repurchases, domestic cash-financed mergers, or foreign takeovers of U.S. firms and equity issued in public or private markets, including years, and its composition shifted decidedly toward funds invested by venture capital partnerships. longer-term sources of funds. Early in the year, favorable conditions in the corporate bond market, combined with firms' desire to lock in low interest rates, their commercial paper outstanding. The move out prompted investment-grade firms to issue a high vol- of commercial paper also reflected elevated credit ume of bonds. They used the proceeds to strengthen spreads between high- and low-tier issuers resulting their balance sheets by repaying short-term debt from the defaults of California utilities and several obligations, refinancing other longer-term debt, and debt downgrades among prominent firms early in the building up liquid assets. Junk bond issuance was year. Announcements of new equity share repurchase also strong early in 2001, as speculative-grade yields programs thinned considerably in the first half of the fell in response to monetary policy easings, although year, as firms sought to conserve their cash buffers investors shunned the riskiest issues amid increasing in response to plummeting profits. A significant sloweconomic uncertainty and rising defaults among down in cash-financed merger activity further below-investment-grade borrowers. damped equity retirements, although these retirements still outpaced gross equity issuance, which was The heavy pace of bond issuance, along with a restrained by falling share prices. Over the summer, reduced need to finance capital investments, enabled issuance of investment-grade bonds dropped off firms to decrease their business loans at banks and appreciably. Moreover, market sentiment toward speculative-grade issues cooled, as further erosion in Major components of net business financing that sector's credit quality took its toll. Business Billions of dollars loans and outstanding commercial paper continued to contract, and with share prices in the doldrums, nonfinancial firms raised only a small amount of funds in public equity markets in the third quarter. The terrorist attacks on September 11 constricted corporate financing flows for a time. The stock market closed for that week, and trading in corporate bonds came to a virtual halt. After the shutdown of the stock market, the Securities and Exchange Commission, in an effort to ensure adequate liquidity, temporarily lifted some restrictions on firms' repurchases of their own shares. According to reports from dealers, this change triggered a spate of repurchases 2000 2001 in the first few days after the stock markets reopened NOTE. Seasonally adjusted annual rate for nonfarm nonfinancial corporate on September 17. When full-scale trading in corpobusiness. The data for 2001 :Q4 are estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 153 Spreads of corporate bond yields over the ten-year swap rate credit quality and ratings downgrades among some high-profile issuers in the fall. Percentage points By early October, the investment-grade corporate bond market had largely recovered from the disruptions associated with the terrorist attacks, and bond issuance in that segment of the market picked up considerably. Firms capitalized on relatively low High yield longer-term interest rates to pay down short-term obligations, to refinance existing higher-coupon debt, and to boost their holdings of liquid assets. With high-yield bond risk spreads receding moderately, BBB issuance in the speculative-grade segment of the corporate bond market stirred somewhat from its moribund state, although investors remained highly selective. Public equity issuance, after stalling in September, also regained some ground in the fourth NOTE. The data are daily and extend through February 21, 2002. The spreads compare the yields on the Merrill Lynch AA, BBB, and 175 indexes with the quarter, spurred by a rebound in stock prices. As was ten-year swap rate. the case for most of the year, initial public offerings and venture capital financing remained at depressed rate bonds resumed on September 17, credit spreads levels. on corporate bonds widened sharply: Risk spreads on Commercial paper issuance recovered somewhat speculative-grade private debt soared to levels not early in the fourth quarter as firms repaid bank loans seen since late 1991, and spreads on investment- made in the immediate aftermath of the terrorist grade corporate bonds also moved higher, although attacks and as credit spreads for lower-rated issuers by a considerably smaller amount. Against this back- started to narrow. However, the collapse of the Enron drop, junk bond issuance nearly dried up for the rest Corporation combined with typical year-end presof the month. Commercial paper rates—even for sures to widen quality spreads in early December. All top-tier issuers—jumped immediately after the told, the volume of domestic nonfinancial commerattacks, as risk of payment delays increased. In cial paper outstanding shrank by one-third over the response to elevated rates, some issuers tapped their year as a whole. Business loans at banks fell further backup lines at commercial banks, and business loans in the fourth quarter; for the year, business loans spiked in the weeks after the attacks. Risk spreads for contracted A1 A percent, their first annual decline since low-tier borrowers in the commercial paper market 1993. remained elevated, even after market operations had The slowing of sales and the drop in profits caused largely recovered, because of ongoing concerns about corporate credit quality to deteriorate noticeably last Spread of low-tier CP rates over high-tier CP rates Net interest payments of nonfinancial corporations relative to cash flow Basis points • • ^n NOTE. The data are daily and extend through February 21, 2002. The series 1977 1980 1983 1986 1989 1992 1995 1998 2001 shown is the difference between the rate on A2/P2 nonfinancial commercial paper and the AA rate. NOTE. The data are quarterly and extend through 2001 :Q3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

154 Federal Reserve Bulletin • March 2002 Default rate on outstanding bonds heavy issuance of CMBS, yield spreads on investment-grade CMBS over swap rates were about unchanged over the year, suggesting that investors view credit problems in this sector as being contained. Commercial banks, however, stiffened their lending posture in response to eroding prospects for the commercial real estate sector; significant net fractions of loan officers surveyed over the course of the year reported that their institutions had firmed standards on commercial real estate loans. The Government Sector Federal Government 1991 1993 1995 1997 1999 2001 NOTE. The data are monthly; the series shown is a twelve-month moving average. Deteriorating economic conditions and new fiscal initiatives have led to smaller federal budget suryear. In part because of the decline in market interest pluses than had been anticipated earlier. The fiscal rates, the ratio of net interest payments to cash flow 2001 surplus on a unified basis was $127 billion, or in the nonfinancial corporate sector moved only mod- about VA percent of GDP—well below both the estly above the relatively low levels of recent years, record $236 billion surplus recorded in fiscal 2000 and most firms did not experience significant difficul- and the $281 billion surplus that the Congressional ties servicing their debt. However, many firms were Budget Office had anticipated for fiscal 2001 at this downgraded, and evidence of financial distress time last year. Receipts, which had increased at least mounted over the course of the year. The twelve- 6 percent in each of the preceding seven fiscal years, month trailing average of the default rate on corpo- declined around 2 percent in fiscal 2001; the rise rate bonds nearly tripled last year and by December in individual tax receipts slowed dramatically and ran almost Vi percentage point higher than its peak in corporate receipts plunged 27 percent. The lower 1991. Delinquency rates on business loans at banks receipts reflected both the weakening economy— also rose, although not nearly as dramatically. The specifically, slow growth of personal income, the amount of nonfinancial debt downgraded by Moody's drop in corporate profits, and a pattern of declines Investors Service last year was more than five times in equity values that led to lower net capital gains the amount upgraded; downgrades were especially realizations—and changes associated with the Ecopronounced in the fourth quarter, when ratings agen- nomic Growth and Tax Relief Reconciliation Act of cies lowered debt ratings of firms in the telecommuni- 2001. Some provisions of the act went into effect cation, energy, and auto sectors. Commercial mortgage debt, supported by stillstrong construction spending, expanded at a brisk Federal receipts and expenditures 10 percent pace over the first half of 2001. The growth of commercial mortgage debt edged down only Vi percentage point in the second half, despite a sharp slowdown in business spending on nonresidential structures. As a result, the issuance of commercial-mortgage-backed securities (CMBS) maintained a robust pace throughout the year. Available data indicate some deterioration in the quality of commercial real estate credit. Delinquency rates on commercial real estate loans at banks rose steadily in 2001 and have started to edge out of their recent record-low range. In addition, CMBS delinquency rates increased, especially toward the end of the year, amid the rise in office vacancy rates. Despite the 1983 1986 1989 1992 1995 1998 2001 erosion in credit quality in commercial real estate and NOTE. The data are from the unified budget and are for fiscal years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 155 Change in real government expenditures Federal government debt held by the public on consumption and investment Percent of nominal GDP Percent • Federal • State and local — 6 I ll N 1 In | ! — 1 0 — 3 1 I I I I I I I I I I I I I I I I I I I I I II I I I I I I I I I I I I I I 1961 1971 1981 1991 2001 1995 1997 1999 2001 NOTE. The data are as of the end of the fiscal year. Excludes debt held in federal government accounts and by the Federal Reserve System. immediately, including the rebate checks that were The existence of surpluses through fiscal 2001 mailed last summer. In addition, the act shifted some meant that the federal government continued to concorporate tax payments into fiscal 2002. tribute to the pool of national saving. Nevertheless, Meanwhile, outlays were up 4 percent in fiscal gross saving by households, businesses, and govern- 2001; abstracting from a decline in net interest payments has been trending down over the past few ments, outlays increased nearly 6 percent, a second years from the recent high of around 19 percent of year of increases larger than had prevailed for some GDP in 1998. time. Outlays have increased across all major catego- The Treasury used federal budget surpluses over ries of expenditure, including defense, Medicare and the first half of the year to pay down its outstanding Medicaid, and social security. As for the part of marketable debt. In the third quarter, however, the cut federal spending that is counted in GDP, real federal in personal income taxes and a weakening in receipts outlays for consumption and gross investment as the economy contracted led the Treasury to reenter increased somewhat more rapidly than in recent years the credit markets as a significant borrower of new through the first three quarters of 2001 as defense funds. The Treasury's budget position swung back expenditures picked up. Spending rose faster still in into surplus late in the year owing to somewhat the fourth quarter because of increases for homeland stronger-than-expected tax receipts, which helped security and the additional costs associated with the push fourth-quarter net borrowing below its thirdwar in Afghanistan. quarter level. Despite the increase in the Treasury's net borrowing over the second half of the year, publicly held debt remained at only about one-third of National saving nominal GDP last year, its lowest level since the mid-1980s and well below the 1993 peak of almost 50 percent. The terrorist attacks on September 11 and the associated disruptions to financial markets had some spillover effects on Treasury financing. On the day of the attacks, the Treasury cancelled its scheduled bill auction; over the next several days, it drew down nearly all of its compensating balances with commercial banks—about $12V2 billion in total—to meet its obligations. On Thursday of that week, the settlement of securities sold the day before the attacks eased the Treasury's immediate cash squeeze, and the incoming stream of estimated quarterly personal income tax 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 payments provided additional funds. Infrastructure NOTE. The data are quarterly and extend through 2001 :Q3. National saving problems involving the trading and clearing of Treacomprises the gross saving of households, businesses, and governments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

156 Federal Reserve Bulletin • March 2002 sury securities were largely resolved over the follow- shifting to debt financing. Finally, a few states are ing week, and when the Treasury resumed its regular considering actions such as postponing tax cuts that bill issuance on September 17, exceptionally strong were enacted earlier. demand for bills pushed stop-out rates—that is, the Debt of the state and local government sector highest yield accepted during the auction—to their expanded rapidly last year after slow growth in 2000. lowest level since 1961. Although the Treasury can- Gross issuance of long-term municipal bonds accelercelled debt buybacks scheduled for late September to ated over the first half of 2001 as state and local conserve cash, it later announced that buyback opera- governments took advantage of lower yields to refund tions would begin again in October. outstanding debt. Spurred by falling interest rates and With its credit needs still limited, the Treasury declining tax revenues, these governments continued announced on October 31 that it was suspending to issue long-term bonds to finance new capital issuance of nominal and inflation-indexed thirty-year projects at a rapid clip over the second half of the securities. Subsequently, the thirty-year Treasury year. Despite a deterioration in tax receipts, credit bond yield fell sharply, bid-asked spreads on out- quality in the municipal market remained high in standing bonds widened, and liquidity in the bond 2001. Late in the year, however, signs of weakness sector deteriorated. Although bid-asked spreads nar- had emerged, as the pace of net credit-ratings rowed over the balance of the year, market partici- upgrades slowed noticeably. Especially significant pants reported that liquidity in the bond sector problems continue to plague California and New remained below its level before the Treasury's York, both of which saw their debt ratings lowered in announcement. The announcement on October 31 November. In California, the problems were attribalso indicated that after the January 2002 buyback uted to declining tax revenues and difficulties related operations, the Treasury would determine the amount to the state's electricity crisis earlier in the year, and timing of buybacks on a quarter-by-quarter basis, while New York's slip in credit quality resulted not thereby fueling speculation that future buybacks only from deteriorating tax receipts but also from might be scaled back in light of the changed budget fears of higher-than-expected costs related to clean outlook. up and rebuilding after the terrorist attacks. State and Local Governments The External Sector Real expenditures for consumption and gross invest- Trade and the Current Account ment by states and localities rose 5 percent last year after an increase of 2Vi percent in 2000. Much of the The U.S. current account deficit narrowed signifiacceleration reflected a burst of spending on construc- cantly during 2001, with both imports and exports of tion of schools and other infrastructure needs. In goods and services falling sharply in response to a addition, outlays at the end of last year were boosted global weakening of economic activity. The deficit in by the cleanup from the September 11 attacks in New York. As for employment, state and local governments added jobs in 2001 at a more rapid pace than U.S. current account they did over the previous year and thereby helped to offset job losses in the private sector. The fiscal condition of state and local governments has been strained by the deterioration in economic performance. State governments are considering a variety of actions to achieve budget balance in the current fiscal year. Most states are intending to cut planned expenditures, and many are considering drawing down rainy-day funds, which governments had built up in earlier years. According to the National Conference of State Legislators, these rainyday funds stood at the relatively high level of $23 billion at the end of fiscal 2001 (June 30). Moreover, some states that had planned to fund capital expenditures with current receipts appear to be NOTE. The observation for 2001 is the average of the first three quarters. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 157 goods and services narrowed to $333 billion at an declined in almost all major goods categories, with annual rate in the fourth quarter of 2001 from the largest drops by far in high-tech capital goods and $401 billion at the end of the previous year. In other machinery. Two exceptions were exports of addition, the deficit was temporarily reduced further automotive products, which rose during the second in the third quarter because service import payments and third quarters (largely parts to Canada and were lowered by a large one-time estimated insur- Mexico destined ultimately for use in U.S. markets, ance payment from foreign insurers (reported on an and vehicles to Canada), and agricultural goods. accrual basis) related to the events of September ll.1 About 45 percent of U.S. exports of goods were Excluding the estimated insurance figure, the current capital equipment; 20 percent were industrial supaccount deficit was $434 billion at an annual rate plies; and 5 percent to 10 percent each were agriculover the first three quarters of the year, or 4 lA percent tural, automotive, consumer, and other goods. The of GDP, compared with $445 billion and 4V2 percent value of exported goods declined at double-digit rates for the year 2000. Net investment income payments for almost all major market destinations. Even were about the same during the first three quarters of exports to Canada and Mexico declined sharply, 2001 as in the corresponding period a year earlier; despite support from two-way trade with the United higher net payments on our growing net portfolio States in such sectors as automotive products. liability position were offset by higher net direct As growth of the U.S. economy slowed noticeably, investment receipts. real imports of goods and services turned down and U.S. real exports were hit by slower growth abroad, declined 8 percent for 2001 as a whole. Service continued appreciation of the dollar, and plunging payments dropped 15 percent last year. The plunge in global demand for high-tech products. Real exports outlays for travel and passenger fares after September of goods and services fell 11 percent over the four 11 held down total real service payments, bringing quarters of 2001, with double-digit declines begin- their level in the fourth quarter 15 percent below that ning in the second quarter. Service receipts decreased in the second quarter. Spending on services other 7 percent; all of the decline came after the events of than travel and passenger fares changed little during September 11. Receipts from travel and passenger the year.2 Imported goods fell 6 percent last year, fares, which plunged following the terrorist attacks, with much of the decrease in capital goods (computwere about one-fourth lower in the fourth quarter ers, semiconductors, and other machinery). In conthan in the second quarter. Receipts from foreigners trast, real imports of automotive products, consumer for other services changed little over the year. Exports goods, oil, and other industrial supplies were little changed, and imports of foods rose. The pattern of import growth appears to have shifted toward the end 1. The "insurance payment" component of imported services is of the year. Imports of real non-oil goods declined at calculated as the value of premiums paid to foreign companies less the about a 10 percent annual rate during the first three amount of losses recovered from foreign companies. In the third quarters of the year but fell less rapidly in the fourth quarter, the estimated size of losses recovered far exceeded the amount paid for insurance premiums, resulting in a negative recorded insur- quarter. The price of imported non-oil goods, after ance payment. According to NIPA accounting, the entire amount of a rising in the first quarter, declined at an annual rate of recovery is recorded in the quarter in which the incident occurred. about 6 percent from the second quarter through the fourth quarter, led by decreases in the price of Change in real imports and exports of goods and services imported industrial supplies. The value of imported oil fell more than one-third over the four quarters of 2001, a drop resulting almost entirely from a sharp decline in oil prices. The spot price of West Texas intermediate (WTI) crude decreased about $10 per barrel during the year, with much of the decline occurring after September 11. During the first eight months of 2001, the spot price of WTI averaged $28 per barrel as weakened demand for oil and increased non-OPEC supply were largely 2. According to NIPA accounting, the value of the one-time insurance payments by foreign insurers is not reflected in NIPA real imports of services. The deflator for service imports was adjusted down for the third quarter to offset the lower value of service imports; 1995 1997 1999 2001 the deflator returned to its usual value in the fourth quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

158 Federal Reserve Bulletin • March 2002 Prices of oil and of other commodities U.S. international securities transactions Billions of dollars Private foreign purchases of U.S. securities Q Net foreign purchases of U.S. bonds _ 200 • Net foreign purchases of U.S. equities 150 •mmmm&m 100 50 Billions of dollars NOTE. The data are monthly; the last observation for oil is the average of Private U.S. purchases of foreign securities trading days through February 21, 2002; the last observation for other commodities is December 2001. The oil price is the spot price of West Texas intermediate ~~, Net U.S. purchases of foreign bonds crude oil. The price of other commodities is a weighted average of thirty-nine • Net U.S. purchases of foreign equities . nonfuel primary-commodity prices from the International Monetary Fund. offset by OPEC production restraint. In the wake of the terrorist attacks, oil prices dropped sharply in response to a decline in jet fuel consumption, weaker economic activity, and reassurance from Saudi Arabia that supply would be forthcoming. Oil prices continued to drift lower during the fourth quarter, reflecting OPEC's apparent unwillingness to continue to sacrifice market share in order to defend higher oil prices. In late December, however, OPEC worked out an arrangement in which it agreed to types of U.S. securities demanded by private foreignreduce its production targets an additional 1.5 million ers but did not reduce the overall demand for them. barrels per day, contingent on the pledges from sev- Indeed, during the first half, foreign private purchases eral non-OPEC producers (Angola, Mexico, Norway, of U.S. securities averaged $137 billion per quarter, a Oman, and Russia) to reduce oil exports a total of rate well above the record $109 billion pace set in 462,500 barrels per day. Given the uncertainty over 2000. A slowing of foreign purchases of U.S. equithe extent to which these reductions will actually be ties, relative to 2000, was more than offset by a implemented and the comfortable level of oil inven- pickup in foreign purchases of corporate and agency tories, the spot price of WTI remained near $20 per bonds. In addition, private foreigners, who had sold a barrel in early 2002. significant quantity of Treasury securities during 2000, roughly halted their sales in the first half of 2001. The increased capital inflows arising from Financial Account larger foreign purchases of U.S. securities in the first half was only partly offset by an increase in the pace The slowing of U.S. and foreign economic growth at which U.S. residents acquired foreign securities, over the course of last year had noticeable effects on especially equities. the composition of U.S. capital flows, especially The pattern of private securities transactions when the slowing became more pronounced in the changed significantly in the third quarter: Foreign second half. On balance, net private capital flowed in purchases of U.S. equities slowed markedly, and at a pace only slightly below the record set in 2000, U.S. investors shifted from net purchases of foreign including unprecedented net inflows through private securities to net sales. However, the reduced flows securities transactions. in the third quarter seem to have reflected short-lived During the first half of 2001, sagging stock prices reactions to events in the quarter. Preliminary data for and signs of slower growth brought a shift in the the fourth quarter show a significant bounceback in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 159 foreign purchases of U.S. securities and a return to Net change in payroll employment purchases of foreign securities by U.S. residents. The changing economic climate also affected direct Thousands of jobs, monthly average investment capital flows. During 2000, foreign direct Private nonfarm investment in the United States averaged more than 300 ii $70 billion per quarter. These flows slowed to less 200 than $60 billion per quarter in the first half and then dropped to only $26 billion in the third quarter (the 100 last available data). The drop resulted in part from a 'M Jan. + decline in the outlook for corporate profits and a n o significant reduction in general merger and acquisi- 100 tion activity. By contrast, U.S. direct investment abroad picked up over the course of 2001. The third 200 quarter outflow of $52 billion—a record—reflected J I I L J I I I L both a large merger and robust retained earnings by 1990 1992 1994 1996 1998 2000 2002 the foreign affiliates of U.S. firms. Capital inflows from official sources were relatively modest in 2001, • Manufacturing and related | Non-manufacturing-related 300 totaling only $15 billion, compared with $36 billion Jimji in 2000. 200 100 Jan. The Labor Market Employment and Unemployment ••-_ > • • . J 100 200 Last year's weakening in economic activity took its toll on the labor market. Payroll employment edged up early last year and then dropped nearly 1 Vi million 1998 1999 2000 2001 by January 2002. Declines were particularly large in NOTE. Manufacturing and related industries includes establishments in manufacturing, wholesale trade, and help supply services. Non-manufacturing-related manufacturing, which has shed one in twelve jobs industries includes the remainder of private nonfarm establishments. since mid-2000. Job cuts accelerated in the months following the terrorist attacks of September 11, with declines occurring in a wide variety of industries. The unemployment rate moved up from 4 percent in late 2000 to 5.8 percent by December 2001. In Janu- Measures of labor utilization ary 2002, the unemployment rate edged down to Percent 5.6 percent. Early last year, employment in manufacturing, which had been trending down for several years, began to decline more rapidly. Job losses were wide- Augmented unemployment rate spread within the manufacturing sector but were most pronounced in durable-goods industries, such as those producing electrical and industrial machinery and metals. Employment at help supply firms and in wholesale trade—industries that are directly related to manufacturing—also began to decline. Outside of Civilian unemployment rate manufacturing and its related industries, private payrolls continued to increase robustly in the first quarter of last year, but hiring then slowed, although it remained positive, on net, in the second and third NOTE. The data extend through January 2002. The augmented unemploy- quarters. Construction payrolls increased into the ment rate is the number of unemployed plus those who are not in the labor force and want a job, divided by the civilian labor force plus those who are not in the spring but flattened out thereafter. Employment at labor force and want a job. In January 1994, a redesigned survey was intro- retail trade establishments also continued to increase duced; data for the augmented rate from that point on are not directly comparable with those of earlier periods. For the augmented rate, the data are quarterly moderately through the spring but began to decline in through December 1993 and monthly thereafter; for the civilian labor force rate, the late summer. In services industries other than help the data are monthly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

160 Federal Reserve Bulletin • March 2002 supply firms—a broad group that accounted for Change in output per hour nearly half of the private payroll increases over the preceding several years—job gains slowed but Percent, annual rate remained positive in the second and third quarters of last year. In all, private payroll employment declined 4 about 115,000 per month in the second and third quarters, and the unemployment rate moved up 3 steadily to Axh percent by the spring and to nearly if: 5 percent by August. The labor market was especially hard hit by the terrorist attacks. Although labor demand was weak prior to the attacks, the situation turned far worse following the events of September 11, and private payrolls plunged more than 400,000 per month on U I I I I I I I 1 LJ I I I average in October and November. Employment fell 1991 1993 1995 1997 1999 2001 substantially not only in manufacturing and in indus- NOTE. Nonfarm business sector. tries directly affected by the attacks, such as air transportation, hotels, and restaurants, but also in a compensation measures paint different pictures of the wide variety of other industries such as construction magnitude of that deceleration. The slowing likely and much of the retail sector. reflected the influence of the soft labor market, Employment continued to decline in December energy-driven declines in price inflation toward the and January but much less than in the preceding two latter part of the year, and subdued inflation expecmonths. Manufacturing and its related industries lost tations. Compensation probably was also held down jobs at a slower pace, and employment leveled off in by a reduction in variable pay, such as bonuses that other private industries. The unemployment rate are tied to company performance and stock-option moved up to 5.8 percent in December but then ticked activity. down to 5.6 percent in January. The recent reversal of According to the employment cost index, hourly the October and November spikes in new claims for compensation costs increased AVA percent during unemployment insurance and in the level of insured 2001, down from a AVi percent increase in 2000; both unemployment also point to some improvement in the wages and salaries and benefits components labor market conditions early this year. recorded slightly smaller increases. The deceleration in the index for wages and salaries was concentrated among sales workers, whose wages often include a Productivity and Labor Costs substantial commission component and so are especially sensitive to cyclical developments. Although Given economic conditions, growth of labor productivity was impressive in 2001. Productivity growth Measures of the change in hourly compensation typically drops when the economy softens, partly because businesses tend not to shed workers in proportion to reduced demand. Last year, however, out- Q Employment cost index put per hour in the nonfarm business sector increased | Nonfarm compensation per hour a relatively solid IV2 percent, according to the advance estimate, after having risen 2Vi percent in 2000—a mild deceleration by past cyclical standards. Indeed, productivity is estimated to have increased at an annual rate of more than 2 percent in the second half of the year, an impressive performance during a period when real GDP was, on net, contracting. The buoyancy of productivity during 2001 provides further support to the view that the underlying trend of productivity growth has stepped up notably in recent 1991 years. NOTE. For the employment cost index (ECI), change is from December to Hourly labor compensation costs increased more December; for nonfarm compensation, Q4 to Q4. The ECI is for private industry excluding farm and household workers. Nonfarm compensation per hour is for slowly last year than in 2000, although different the nonfarm business sector. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 161 Change in unit labor costs Prices Percent Inflation declined in 2001 largely because of a steep drop in energy prices. The chain-type price index for personal consumption expenditures (PCE) increased 1.3 percent last year after having increased 2.6 percent in 2000; the turnaround in consumer energy prices accounted for almost all of that deceleration. Increases in PCE prices excluding food and energy items also slowed a little last year after having moved up in 2000. The chain-type price index for gross domestic purchases—the broadest price measure for domestically purchased goods and services— decelerated considerably last year. The small increase in this index reflected both the drop in energy prices and a resumption of rapid declines for prices of NOTE. Nonfarm business sector. investment goods, especially computers, following a the increase in employers' cost of benefits slowed period of unusual firmness in 2000. The price index overall, the cost of providing health insurance for GDP—the broadest price measure for domestiincreased more than 9 percent last year; the rise cally produced goods and services—posted a smaller continued this component's accelerating contribution deceleration of about xh percentage point between to labor costs over the past few years after a period of 2000 and 2001 because lower oil prices have a restrained cost increases in the mid-1990s. smaller weight in U.S. production than in U.S. An alternative measure of hourly compensation is purchases. the BLS's measure of compensation per hour in the Consumer energy prices continued to move higher nonfarm business sector, which is derived from com- through the early months of 2001 before turning pensation information in the national accounts; this down sharply in the second half of the year. Despite measure increased 4 percent last year, a very large the fact that crude oil prices were declining over the drop from the 7% percent increase registered in 2000. first half of the year, retail gasoline prices increased One reason that these two compensation measures at an annual rate of 8 percent during that period. The may diverge is that only nonfarm compensation per sizable increase in margins on gasoline reflected both hour captures the cost of stock options. Although the refinery disruptions and low inventory levels going two compensation measures differ in numerous other into the summer driving season. But gasoline prices respects as well, the much sharper deceleration in fell sharply thereafter as refineries came back on line, nonfarm compensation per hour may indicate that imports of gasoline picked up, and crude oil prices stock option exercises leveled off or declined in 2001 moved considerably lower over the latter half of the in response to the fall in equity values. However, year. In all, gasoline prices were down 19 percent because nonfarm compensation per hour can be over the year as a whole. Heating oil prices reflected revised substantially, one must be cautious in interpreting the most recent quarterly figures from this Change in consumer prices series. Unit labor costs, the ratio of hourly compensation to output per hour in the nonfarm business sector, • Consumer price index increased about 2 percent last year. Although down — • Chain-type price index for PCE — 6 from a huge 5 percent increase in 2000 that reflected — — 5 that year's surge in nonfarm compensation per hour, the figure for 2001 is still a little higher than the — 4 moderate increases seen over the preceding several years. Last year's increase in unit labor costs was held up by the smaller productivity increases that accompanied weak economic activity; accordingly, subsequent increases in unit labor costs would be held down if output per hour begins to increase more rapidly as the economy strengthens. 1991 1993 1995 1997 1999 2001 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

162 Federal Reserve Bulletin • March 2002 Change in consumer prices excluding food and energy in livestock prices—especially beef. But these prices softened later in the year under the influence of Percent higher supplies, lower domestic demand, and foreign outbreaks of mad cow disease, which apparently • Consumer price index — • Chain-type price index for PCE — 6 damped demand for beef no matter where produced. Excluding food and energy items, PCE prices rose 1.6 percent last year, a small deceleration from its 1.9 percent increase over 2000. That deceleration was concentrated in prices of goods, with prices especially soft for motor vehicles and apparel. By contrast, prices of many services continued to accelerate last year. In particular, shelter costs—which include residential rent, the imputed rent of owner-occupied housing, and hotel and motel prices—increased 4'/4 percent last year after having risen 3Vi percent in 1991 1993 1995 1997 1999 2001 2000. Standing somewhat in contrast to the small decelcrude oil developments more directly and declinederation in core PCE prices, the core consumer price sharply through most of the year. Meanwhile, spot index (CPI) increased 23A percent last year, about the prices of natural gas peaked in January 2001 at the same rate as in 2000. Although components of the extraordinarily high level of nearly $10 per million CPI are key inputs of the PCE price index, the two BTUs, and prices at the consumer level continued price measures differ in a variety of ways. One importo surge in the first few months of the year. These tant difference is that the PCE measure is broader increases reflected the pressure from ongoing strength in scope; it includes expenditures made by nonprofit in demand coupled with unusually cold weather early institutions and consumption of items such as checklast winter that left stocks at very low levels. But the ing services that banks provide without explicit situation improved as expanded supply allowed charge. Prices for the PCE categories that are outside stocks to be replenished: Spot prices reversed those the scope of the CPI decelerated notably in 2001 and earlier increases, and prices of consumer natural gas accounted for much of the differential movements of declined substantially through the rest of the year. inflation measured by the two price indexes. Another In contrast, electricity prices rose through most of difference is that the CPI places a larger weight on last year. The increases reflected the effects of the housing than does the PCE price index, and last earlier rises in the prices of natural gas and coal on year's acceleration of housing prices therefore fuel costs of utilities as well as problems with elec- boosted the CPI relative to the PCE measure. tricity generation in California. California was able to The leveling off or decline in core consumer price avoid serious power disruptions last summer because inflation reflects a variety of factors, including the high electricity prices, weak economic activity, and weakening of economic activity and the accompanymoderate weather all helped keep demand in check. ing slackening of resource utilization; the decline in Consumer food prices increased more rapidly last energy prices that reduced firms' costs; and continuyear, rising about 3 percent after having risen only ing intense competitive pressures in product markets. 2Vi percent in 2000. Early in the year, strong demand, These factors also likely helped to reduce inflation both domestic and foreign, led to large increases expectations late last year, and this reduction itself may be contributing to lower inflation. According to Alternative measures of price change the Michigan SRC, median one-year inflation expec- Percent tations, which had held near 3 percent through 2000 and into last summer, moved down to 23A percent in Price measure 2000 2001 the third quarter and plummeted to 1 percent or lower Chain-type in October and November. Falling energy prices and Gross domestic product 2.4 1.8 Gross domestic purchases 2.5 1.1 widespread reports of discounting following the Sep- Personal consumption expenditures 2.6 1.3 tember 11 attacks likely played a role in causing this Excluding food and energy 1.9 1.6 sharp break in expectations. Part of this drop was Fixed-weight Consumer price index 3.4 1.9 reversed in December, and since then, inflation Excluding food and energy 2.5 2.7 expectations have remained around 2 percent—a rate NOTE. Changes are based on quarterly averages and are measured to the still well below the levels that had prevailed earlier. fourth quarter of the year indicated from the fourth quarter of the preceding year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 163 Meanwhile, the Michigan SRC's measure of longer- Interest Rates term inflation expectations, which had also remained close to 3 percent through 2000 and the first half of Short-term market interest rates moved down with 2001, ticked down to 23A percent in October and the FOMC's cumulative cut in the target federal stood at that level early this year. funds rate of A3A percentage points, and yields on intermediate-term Treasury securities declined almost 2 percentage points. Longer-term interest rates had U.S. Financial Markets already fallen in the latter part of 2000, when investors began to anticipate significant policy easing in As a consequence of the Federal Reserve's aggres- response to weakening economic growth. As the sive easing of the stance of monetary policy in 2001, FOMC aggressively eased the stance of monetary interest rates on short- and intermediate-term Trea- policy during the winter and spring, investors' expecsury securities fell substantially over the course of the tations of a prompt revival in economic activity took year. Longer-term Treasury bond yields, however, hold and were manifested in a sharp upward tilt of ended the year about unchanged, on balance. These money market futures rates and an appreciable rise rates had already fallen appreciably in late 2000 in in longer-term interest rates over the second quarter. anticipation of monetary policy easing. They may However, signs of the anticipated economic turnalso have been held up last year by an increased around failed to materialize as the summer prolikelihood of federal budget deficits and, except in gressed. Indeed, the weakening in economic activity the immediate aftermath of the terrorist attacks, by was becoming more widespread, which prompted investors' optimism about future economic prospects. expectations of further monetary policy easing over Despite this optimism, the slowdown in final demand, the near term, and longer-term interest rates turned a slump in corporate earnings, and a marked deterio- down again. ration in credit quality of businesses in a number The terrorist attacks of September 11 dramatically of sectors made investors more wary about risk. redrew the picture of the nation's near-term eco- Although interest rates on higher-rated investment- nomic prospects. Market participants lowered markgrade corporate bonds generally moved in line with edly their expected trajectory for the path of the those on comparably dated government securities, federal funds rate in the immediate aftermath of the lower-rated firms found credit to be considerably attacks, and revisions to policy expectations, commore expensive, as risk spreads on speculative-grade bined with considerable flight-to-safety demands, cut debt soared for most of the year before narrowing short- and intermediate-term Treasury yields substansomewhat over the last few months. Interest rates on tially over subsequent days. The FOMC, confronted commercial paper and business loans fell last year by with evidence of additional weakness in final demand about as much as the federal funds rate, but risk and prices, eased policy further over the balance of spreads generally remained in the elevated range. In the year, and short-term market interest rates conaddition, commercial banks tightened standards and tinued to decline. In early November, however, terms for business borrowers throughout the year. intermediate- and long-term interest rates turned up, Equity prices were exceptionally volatile and fell further, on balance, in 2001. Rates on selected Treasury securities Increased caution on the part of lenders did not appear to materially damp aggregate credit flows. Private borrowing was robust last year, especially when compared with the marked slowing in nominal spending. Relatively low long-term interest rates encouraged both businesses and households to concentrate borrowing in longer-term instruments, thereby locking in lower debt-service obligations. The proceeds of long-term borrowing were also used to strengthen balance sheets by building stocks of liquid assets. A shift toward safer and more liquid asset holdings showed through in rapid growth of M2, which was spurred further by reduced short-term market interest rates and elevated stock market volatility. NOTE. The data are daily and extend through February 21, 2002. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

164 Federal Reserve Bulletin • March 2002 Corporate bond yields Yields on higher quality investment-grade corporate bonds generally followed those on comparablydated Treasury securities last year, although risk spreads widened moderately before narrowing over the last few months. In contrast, interest rates on speculative-grade corporate debt increased steadily in 2001, as risk spreads ballooned in response to mounting signs of financial distress among weaker firms. Even with a considerable narrowing over the final two months of the year, risk spreads on belowinvestment-grade bonds remained quite wide. Spreads for high-yield bonds edged down further in 2002 after rising sharply in early January, when several important technology and telecommunications companies revised down their earnings forecasts or 1990 1992 1994 1996 1998 2000 2002 released corrections to past earnings statements. NOTE. The data are monthly averages and extend through January 2002. The AA rate is calculated from bonds in the Merrill Lynch AA index with seven to Interest rates on commercial and industrial (C&I) ten years remaining maturity. The high-yield rate is the yield on the Merrill loans at banks fell last year by about as much as the Lynch 175 high-yield index. federal funds rate. According to the Federal Reserve's quarterly Survey of Terms of Business Lending, the as it became apparent that the economic fallout from spread over the target federal funds rate of the averthe attacks would be more limited than some had age interest rate on C&I loans varied somewhat over originally feared, and as military success in Afghanithe year, falling for a while then rising sharply stan bolstered investors' confidence and moderated between August and November; nonetheless, it has safe-haven demands. By the end of the year, yields on generally remained in the elevated range that has intermediate-term Treasury securities had reversed persisted since late 1998. The same survey also indiabout half of their post-September 11 decline, while cated that over the course of last year commercial yields on longer-term Treasury securities had risen banks, like other lenders, have become especially enough to top their pre-attack levels. In early 2002, cautious about lending to marginal credits, as indihowever, yields on intermediate- and longer-term cated by the average spread on riskier C&I loans not Treasuries edged down again, as market participants made under a previous commitment, which soared in trimmed their expectations for the strength of the 2001. economic rebound, and the Congress failed to move forward with additional fiscal stimulus. Equity Markets Spread of average business loan rate over the intended federal funds rate The exceptional volatility of equity prices in 2001 Percentage points likely reflected the dramatic fluctuations in investors' assessment of the outlook for the economy and corporate earnings. Share prices tumbled early last year, as pessimism and uncertainty about the direction of the economy were intensified by a spate of negative earnings announcements and profit warnings in February and March. The pronounced sell-off of equities came to a halt at the end of the first quarter, with the Wilshire 5000—a very broad index of stock prices— down about 13 percent, while the tech-heavy Nasdaq ended the first quarter at its lowest level since 1998 and more than 60 percent below its record high reached in March of 2000. Companies, especially in the technology sector, NOTE. The data are for loans made by domestic commercial banks and are reported weak profits for the first quarter, but their based on a survey conducted in the middle month of each quarter; the final observation is for November 2001. High-risk loans are those in categories announcements generally surpassed analysts' sharply "moderate" and "acceptable." lowered expectations. With the 1 percentage point SOURCE. Federal Reserve Survey of Terms of Business Lending. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 165 Major stock price indexes In late September, stock prices staged a comeback that lasted through the fourth quarter, as incoming January 3, 2000 = 100 information suggested that the economy had proven remarkably resilient and economic prospects were improving. On the perception that the worst for the technology sector would soon pass, share prices of firms in technology industries jumped sharply, lifting the Nasdaq more than 35 percent from its September nadir. On balance, last year's gyrations in stock prices left the Wilshire 5000 down about 10 percent, while the Nasdaq fell 20 percent. The widespread decline in equity prices through the first three quarters of 2001 is estimated to have wiped out nearly $3V2 trillion in household wealth, translating into 8 lA percent of total 2000 2001 2002 household net worth. Of this total, however, about $VA trillion was restored by the stock market rally in NOTE. The data are daily and extend through February 21, 2002. the fourth quarter. Moreover, the level of household net worth at the end of last year was still almost reduction in the federal funds rate over March and 50 percent higher than it was at the end of 1995, April, investors became more confident that an when stepped-up productivity gains had begun to improvement in economic conditions was in train, induce investors to boost significantly their expectaand equity prices rallied; the rebound was particu- tions of long-term earnings growth. In January and larly strong for technology companies—the Nasdaq early February of 2002, investors reacted to generally rose almost 40 percent between April and the end of disappointing news about expected earnings, espe- May. The forward momentum in equity markets was cially in the telecommunications sector, and to conchecked in June, however, in part because analysts cerns about corporate accounting practices by erasing slashed their estimates for near-term corporate earn- some of the fourth-quarter gain in equity prices. ings growth. Although the stock market initially Despite this decline, the price-earnings ratio for the proved resilient in the face of the bleak profit news, S&P 500 index (calculated using operating earnings suggesting that weak earnings had been largely expected over the next year) remained close to its anticipated by investors, the steady barrage of dismal level at the beginning of 2001. The relatively elevated economic news—particularly in the technology and ratio reflected lower market interest rates as well as telecommunications sectors—started to exert down- investor anticipation of a return to robust earnings ward pressure on share prices by early August. The growth. slide in stock prices intensified in early September, with technology stocks taking an exceptional drubbing. By September 10, the Wilshire 5000 was down almost 10 percent from the end of July, while the Price-earnings ratios for the S&P 500 Nasdaq had lost more than 16 percent. The attacks on September 11, a Tuesday, caused stock markets to shut down and to remain closed for the rest of that week. Trading resumed in an orderly fashion on Monday, September 17, but the day ended with the market as a whole down about 5 percent— with airline and hotel stocks pounded most—and trading volume on the New York Stock Exchange hitting a record high. Major stock price indexes, which sagged further in subsequent days and weeks, were weighed down by investors' more pessimistic evaluation of the near-term economic outlook and by sizable downward revisions to analysts' earnings projections for the rest of 2001. By the third week of the 1984 1987 1990 1993 1996 1999 2002 month, broad stock price indexes had fallen a total NOTE. The data are monthly and extend through January 2002. The ratios are of 12 percent from their levels on September 10. based on I/B/E/S consensus estimates of earnings over the coming twelve months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

166 Federal Reserve Bulletin • March 2002 Debt and Depository Intermediation nominal GDP decelerating sharply, the ratio of nonfinancial debt to GDP moved up notably in 2001, more The growth of the debt of nonfederal sectors was than reversing its decrease in the previous year. strong over the first half of the year, as the decline in The economic slowdown and the decline in market longer-term interest rates during the final months of interest rates last year left a noticeable imprint on the 2000 prompted some opportunistic tapping of bond composition of financial flows, with borrowing by markets by businesses and helped keep the expansion businesses and households migrating toward longerof household credit brisk. However, the combination term bond and mortgage markets. As a consequence, of a stepdown in the growth of consumer durables credit at depository institutions expanded sluggishly purchases, a further drop in capital expenditures, and over the year. Growth of loans at commercial banks a substantial inventory liquidation over the second dropped off sharply, from 12 percent in 2000 half of the year resulted in a significantly slower pace to 2lA percent in 2001. The slowdown in total of private borrowing. On balance, growth of nonfed- bank credit—after adjustments for mark-to-market eral debt retreated about 1 percentage point in 2001, accounting rules—was less severe, because banks to IVi percent. Federal debt continued to contract acquired securities, largely mortgage-backed securiearly last year; it then turned up as the budget fell ties, at a brisk pace throughout the year. A healthy into a deficit reflecting the implementation of the tax banking sector served as an important safety valve cut, the effect of the weaker economy on tax receipts, for several weeks after September 11, as businesses and emergency spending in the wake of the terrorist tapped backup lines of credit to overcome problems attacks. As a result, the federal government paid associated with the repayment of maturing commerdown only VA percent of its debt, on net, over 2001, cial paper and issuance of new paper. Moreover, with compared with 63A percent in the previous year. With payment flows temporarily interrupted by the terrorist attacks, a substantial volume of overdrafts was created, causing a spike in the "other" loan category Growth of nonfinancial debt that includes loans to depository institutions. By the end of October, however, the disruptions to business financing patterns and payment systems that bloated bank balance sheets had largely dissipated, and loans contracted sharply. Commercial banks reported a marked deterioration in loan performance last year. Delinquency and charge-off rates on C&I loans trended up appreciably, although they remained well below rates recorded during the 1990-91 recession. Delinquency rates on credit card accounts increased for the second year in Delinquency rates on commercial and industrial and credit card loans at banks Percent Percent Credit cards Federal NOTE. The data are monthly. Annual growth rates are computed from fourthquarter averages. Domestic nonfinancial debt consists of the outstanding credit market debt of governments, households, nonprofit organizations, nonfinancial NOTE. The data, from bank Call Reports, are quarterly, seasonally adjusted, businesses, and farms. and extend through 2001 :Q3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 167 Net percentage of domestic banks tightening standards on Percent of all U.S. commercial bank assets credit card and selected commercial and industrial loans at well-capitalized banks Percent 1990 1992 1994 1996 1998 2000 2002 NOTE. The data extend through January 2002 and are based on a survey NOTE. The data are quarterly and extend through 2001 :Q3. Capital status is generally conducted four times per year. Large and medium-sized firms are determined using the regulatory standards for the leverage, tier 1, and total those with annual sales of $50 million or more. Net percentage is percentage capital ratios. reporting a tightening less percentage reporting an easing. SOURCE. Federal Reserve Senior Loan Officer Opinion Survey on Bank Lending Practices. exposure to Enron and, to a lesser extent, Argentina. On the positive side, wider net interest margins helped support profits throughout 2001. a row, reaching 5 percent for the first time since early 1992. Banks responded to the deteriorating business and household balance sheets by tightening credit The Monetary Aggregates standards and terms for both types of loan, according to the Federal Reserve's Senior Loan Officer Opinion The broad monetary aggregates grew very rapidly Survey on Bank Lending Practices. Banks indicated in 2001. Over the four quarters of the year, M2 that they had tightened business lending policies in increased 10 lA percent, a rate significantly above the response to greater uncertainty about the economic pace of the past several years. Because the rates of outlook and their reduced tolerance for risk. Simireturn provided by many components of M2 move larly, the net fractions of banks reporting that they sluggishly, the swift decline in short-term market had tightened standards for both credit card and other interest rates last year significantly lowered the consumer loans rose markedly over the first half of opportunity cost of holding M2 assets, especially for last year. As household financial conditions continued to slip, the net proportion of banks that tightened standards on consumer loans remained at an elevated M2 growth rate level in the second half of the year. Percent In response to rising levels of delinquent and charged-off loans, commercial banks significantly boosted the rate of provisioning for loan losses last year, which, along with reduced income from capital market activities, cut into the banking sector's profits. Nonetheless, through the third quarter of 2001— the latest period for which Call Report data are available—measures of industry profitability remained near the elevated range recorded for the past several years, and banks continued to hold substantial capital to absorb losses. Indeed, virtually all assets were at well-capitalized banks at the end of the third quarter, and the substitution of securities for loans on banks' balance sheets also helped edge up risk-based capital NOTE. M2 consists of currency, travelers checks, demand deposits, other ratios. In the fourth quarter, a number of large banks checkable deposits, savings deposits (including money market deposit accounts), saw their profits decline further because of their small-denomination time deposits, and balances in retail money market funds. Annual growth rates are computed from fourth-quarter averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

168 Federal Reserve Bulletin • March 2002 M2 velocity and opportunity cost plunging equity prices led to a sharp step-up in the growth of retail money market mutual funds. After a Ratio, ratio scale Percentage points, ratio scale substantial unwinding of distortions to money flows in October, M2 growth over the balance of the year M2 velocity was spurred by further declines in its opportunity cost resulting from additional monetary policy easings and by heightened volatility in equity markets. The hefty advance in M2 last year outpaced the anemic expansion of nominal income, and M2 velocity—the ratio of nominal GDP to M2—posted a record decline. \ \ TL \ / M2 \ M3—the broadest monetary aggregate—grew 1.7 —J V \ /w \ J opportunity \ i V / cost \ 13 percent over 2001. In addition to the surge in its M2 component, huge inflows into institutional money I I I I I I I I I I I I I II I I I I I II I II I funds boosted M3 growth. Investors' appetite for 1977 1980 1983 1986 1989 1992 1995 1998 2001 these instruments was enormous last year because NOTE. The data are quarterly. The velocity of M2 is the ratio of nominal gross domestic product to the stock of M2. The opportunity cost of holding M2 their returns were unusually attractive as they lagged is a two-quarter moving average of the difference between the three-month the steep decline in market interest rates. The slow- Treasury bill rate and the weighted average return on a ssets included in M2. down in the growth of bank credit over the summer, its liquid deposits (the sum of checking and savings which resulted in a contraction in managed liabilities, accounts) and retail money funds components. More- damped the rise in M3 somewhat. The velocity of M3 over, negative returns and elevated volatility in equity dropped for the seventh year in the row, to a record markets likely raised household demand for M2 low. assets through the fall. An unprecedented level of mortgage refinancing activity (which results in prepayments that temporarily accumulate in deposit International Developments accounts before being distributed to investors in mortgage-backed securities), as well as increased for- Economic activity in foreign economies weakened eign demand for U.S. currency, also bolstered the substantially in 2001. Early in the year, activity growth of M2 over the course of the year. abroad was depressed by high oil prices, the global Involuntary accumulation of liquid deposits result- slump in the high-tech sector, and spillover from the ing from payment system disruptions after the terror- U.S. economic slowdown. The September terrorist ist attacks, combined with elevated safe-haven attacks further heightened economic uncertainty. demands, caused M2 to surge temporarily in the On average, foreign economic activity was about flat weeks following September 11. At the same time, over the year. The weakest performer among industrial economies was Japan, where output declined. M3 growth rate The euro area eked out a slight increase in its real GDP. Activity in most emerging market economies in both Asia and Latin America declined. Asian developing economies were particularly hard hit by the falloff in demand for their high-tech exports. In Latin America, the output decline in Mexico largely reflected sharply reduced export demand from the United States; Argentina's financial crisis precipitated a further sharp drop in output in that country. An easing of average foreign inflation reflected the weakness of activity as well as a net decline in global oil prices over the course of the year. In response to the pronounced weakness in economic activity, monetary authorities in the major 1991 1993 1995 1997 1999 2001 industrial countries eased policy throughout the year. Nevertheless, interest rates on long-term government NOTE. M3 consists of M2 plus large-denomination time deposits, balances in institutional money market funds, repurchase-agreement liabilities (overnight securities showed little net change from the beginand term), and eurodollars (overnight and term). Annual growth rates are ning to the end of the year in most major industrial computed from fourth-quarter averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 169 countries. Weak economic conditions tended to put Nominal U.S. dollar exchange rate indexes downward pressure on long-term rates, but moves toward more stimulative macroeconomic policies January 1999= 100 appeared to encourage market participants to expect economic recovery, thereby supporting long-term interest rates. Following the terrorist attacks in September, interest rates declined around the globe as expected economic activity weakened and demand shifted away from equities and toward the relative safety of bonds. However, toward year-end, as the period of crisis passed, long-term interest rates rebounded strongly. Overall stock indexes in foreign industrial economies declined for the second consecutive year as activity faltered and actual and projected corporate earnings fell sharply. Technology-oriented stock NOTE. The data are monthly. Indexes are trade-weighted averages of the indexes again fell more than the overall indexes. exchange value of the dollar against major currencies and against the currencies Among emerging market economies, the performance of a broader group of important U.S. trading partners. Last observations are the average of trading days through February 21, 2002. of stocks was mixed; stock indexes in several Asian emerging market economies rebounded strongly late The dollar's average foreign exchange value in the year, a move possibly reflecting market partici- remained strong through most of 2001. The dollar pants' hopes for a revival in global demand for the continued to rise despite mounting evidence of weakhigh technology products that feature prominently in ening U.S. economic activity and the significant easthese countries' exports. Argentine financial markets ing of monetary policy by the FOMC. Market particicame under increasing pressure throughout the year pants may have felt that the falloff in economic because of growing fears of a debt default and the growth in foreign economies and expectations that end of the peso's peg to the dollar. Near year-end, the United States offered stronger prospects for eco- Argentine authorities in fact suspended debt pay- nomic growth in the future outweighed disappointments to the private sector and, early in 2002, ended ing U.S. economic performance in the near term. the one-to-one peg to the dollar. There was limited The dollar's average foreign exchange value against negative spillover to other emerging financial mar- the currencies of other major industrial countries kets from the sharp deterioration in Argentina's eco- recorded a net increase of 8 percent over 2001 as a nomic and financial condition, in contrast to the whole. The dollar also strengthened, but by a lesser situation that prevailed during other emerging market amount, against the currencies of our most important financial crises of recent years. developing country trading partners. So far this year, the dollar's average value has risen further on balance. Foreign equity indexes January 1999 = 100 Industrial Economies The dollar showed particular strength against the Japanese yen last year, appreciating nearly 15 percent. The weakness of the yen reflected serious ongoing structural problems and the relapse of the Japanese economy back into recession. Early in the year, in response to signs of renewed weakening of the economy, the Bank of Japan announced that it was easing policy by shifting its operating target from the overnight rate—already not far above zero—to balances held by financial institutions at the Bank of Japan. Policy was eased further and more liquidity 1999 2000 2001 2002 was injected into the banking system when the bal- NOTE. The data are monthly. The last observations are the average of trading ances target was raised three times later in the year. days through February 21, 2002. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

170 Federal Reserve Bulletin • March 2002 U.S. dollar exchange rate against the euro activity in Europe, the euro again declined. On baland the Japanese yen ance, the dollar appreciated more than 5 percent relative to the euro over the course of the year. Real GDP in the euro area is estimated to have increased at less than a 1 percent rate in 2001, a sharp slowing from the nearly 3 percent growth rate of the previous year. Fixed investment and inventory investment both are estimated to have made negative contributions to the growth of real GDP, whereas consumption growth remained near the rate of the previous year. The slowing of growth in the euro area was not uniform across countries, with weakness being more pronounced in Germany and less so in France. The European Central Bank (ECB) held off easing monetary policy in the early months of the year, restrained by the euro's weakness, growth of M3 that NOTE. The data are monthly. Exchange rates are in foreign currency units per remained in excess of the ECB's reference value, and dollar. Last observations are the average of trading days through February 21, a euro-area inflation rate above its 2 percent target 2002. ceiling. In May, evidence of slowing activity prompted the ECB to reduce its key policy rate The yen received a temporary boost when Junichiro 25 basis points. Three additional reductions followed Koizumi, widely seen as more likely to introduce later in the year, as activity weakened further and the economic reforms, became prime minister in April. inflation rate receded toward its target ceiling. The The yen again strengthened in the immediate wake of total reduction in the ECB's key policy rate over the the September terrorist attacks, prompting the Bank course of the year was 150 basis points. The beginof Japan to make substantial intervention sales of ning of 2002 saw the introduction of euro notes and yen. However, later in the year, amid signs of a coins, a process that proceeded smoothly. renewed deterioration of economic conditions, the The dollar appreciated 6 percent against the Canayen again started to weaken significantly. dian dollar in 2001 as the Canadian economy slowed For the year as a whole, Japanese real GDP is abruptly. Real GDP in Canada is estimated to have estimated to have declined more than 1 percent, a been about flat last year after growing more than reversal of the rebound recorded the previous year. 3 percent in 2000. A key factor in this slowing was Private investment declined and private consumption the sharp drop-off in Canadian exports to the United moved lower, as households curtailed spending in the States. An inventory correction also depressed outface of rising unemployment and falling real income. put. Earlier in the year, consumption was buoyed by The winding-down of the large-scale public works continued employment growth, tax cuts, and a housprograms of recent years more than offset the effect ing boom. However, later in the year, growth of on growth from the additional spending contained in consumption faltered as employment prospects worsseveral supplemental budgets. Last year marked the ened and asset prices weakened. The Bank of Canada third consecutive year of deflation, with the prices of has moved aggressively to counter the slowing of both consumer goods and real estate continuing to economic activity by lowering its key policy interest rate nine times in 2001 and once in January 2002 for move lower. a cumulative total of 375 basis points.3 When the The dollar's movements against the euro in 2001 Bank of Canada initiated easing moves early in 2001, appear to have been mainly influenced by market inflation was slightly above the Bank's target range perceptions of the strength of economic activity in of 1 percent to 3 percent; but by the end of the year, the United States relative to that in the euro area. In slack activity and falling energy prices had pushed the early part of the year, the euro weakened as the inflation rate down to near the bottom of the evidence mounted that the economic slowdown that range. was already apparent in the United States as the year began was also taking hold in Europe. During the summer, the euro rose against the dollar as market participants appeared to revise downward their 3. Among these reductions was one on September 17, when the Bank of Canada (along with the ECB) announced a reduction of its expectation of an early US. recovery. Then, later in policy rate by 50 basis points, following the 50 basis point reduction the year, with more signs of a further weakening of in the federal funds rate announced by the FOMC earlier in the day. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress 171 Emerging Market Economies restrictions led to widespread protests, which triggered the resignation of President de la Rua and an Argentina was a main focus of attention among interval of political turmoil. After the resignation of emerging market economies in 2001. In the first part President de la Rua, the government announced it of the year, worse-than-expected data on the fiscal would suspend debt payments to the private sector. situation and concerns that the government would be The government of the new president, Eduardo unable to implement announced fiscal measures Duhalde, suspended Argentina's currency board heightened doubts about whether Argentina would be arrangement and established a temporary dual able to avoid a default on its debt. Argentine financial exchange rate system. In early February, the dual markets received only temporary support from a exchange rate system was abandoned, and the peso's large-scale debt exchange completed in June and an floating rate moved to about 2 pesos per dollar amid enhancement of IMF support approved in September. continuing economic uncertainty. For 2001 as a With financial market confidence eroding, conditions whole, Argentine real GDP is estimated to have took a dramatic turn for the worse late in the year; fallen at well over a 5 percent rate, and prices financial asset prices fell sharply, and funds moved declined further. out of the banking system as the government moved To date, the negative spillover from events in to restructure its debt and the one-to-one peg to the Argentina to other emerging financial markets has dollar looked increasingly precarious. In early been limited, possibly because market participants December, the government imposed capital controls, had been well aware of Argentina's problems for including limits on bank account withdrawals. These some time and viewed them as largely confined to that country. Brazil was probably most heavily affected by events in Argentina, and the bond spread Selected emerging markets on Brazilian debt showed a net increase of about 110 basis points over the course of last year while the spread on Argentina debt exploded upward. Other important factors weighing on Brazilian economic activity last year likely were weak growth in the United States—Brazil's most important export market—and the emergence of an energy shortage as drought limited hydroelectric output. For the year as a whole, Brazilian real GDP is estimated to have risen at less than a 1 percent rate after growing at a 4 percent rate the previous two years. The Brazilian currency registered a net depreciation against the dollar of about 16 percent over the course of last year, while stock prices declined more than 10 percent. The Brazilian central bank tightened policy last year in an effort to hold down the inflationary impact of currency depreciation. Real GDP in Mexico declined about 1 percent in 2001, a sharp reversal from the 5 percent growth rates recorded in the previous two years. The falloff in activity was mainly a reflection of the negative / effects on direct trade and confidence in Mexico Argentina / — 20 arising from the slowdown of the U.S. economy. In light of the marked weakening of activity, declining inflation, and a strong peso, the Bank of Mexico started to loosen the stance of monetary policy in May, and short-term interest rates continued to decline over the rest of the year. In February 2002, NOTE. The data are monthly. Exchange rates are in foreign currency units per the Bank of Mexico moved to tighten monetary condollar. As of January 2002, the Argentine peso rate is the floating rate. Bond ditions, citing concerns that an increase in adminisspreads are the J.P. Morgan Emerging Market Bond Index (stripped Bradybond) spreads over U.S. Treasuries; the dotted line is a break in the series for tered prices would raise inflation. Mexican financial Argentina in December 2001. Last observations are the average of trading days markets fared quite well last year, with the peso through February 21, 2002. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

172 Federal Reserve Bulletin • March 2002 appreciating 5 percent against the dollar and stock Korea is an important exporter of high-tech products prices rising nearly 15 percent. The effect on Mexi- such as semiconductors, it has a relatively more can financial markets from Argentina's difficulties diversified economy than most of its Asian neighappeared to have been quite limited, as indicated by bors, and thus the magnitude of its slowdown last the net decline of the Mexican debt spread by year was somewhat muted. Government moves 80 basis points over the course of the year. toward monetary and fiscal policy stimulus over the Economic growth in the Asian emerging market course of the year helped support domestic demand economies turned negative last year. On average, real in Korea. GDP in developing Asia is estimated to have declined In China, recorded growth of real GDP remained about 1 percent in 2001, compared with average robust last year. China's lesser dependency on exports growth of 6 percent in the previous year. A key factor in general, and high-tech exports in particular, cushin this slowing was the sharp falloff in global demand ioned it from last year's global slowdown, and the for the high-tech products that had fueled rapid export government stepped up the pace of fiscal stimulus to growth in the region in recent years. offset weakening private demand. Hong Kong, with The economies of Taiwan, Singapore, and Malay- exports not heavily concentrated in high-tech goods sia are highly dependent on exports of semiconduc- and an economy closely integrated with a rapidly tors and other high-tech products, and as global growing Chinese economy, is nevertheless estimated demand for these goods was cut back sharply, real to have experienced a decline in real GDP last year. GDP in these countries declined by an estimated The peg of Hong Kong's currency to a strengthening 5 percent on average last year. Indonesia and Thai- U.S. dollar put pressure on its competitive position, land, both relatively less dependent on high-tech and domestic price deflation continued. exports and experiencing some reduction in political Conditions in financial markets in emerging Asia tension over the course of the year, managed to were, for the most part, not particularly volatile last record small positive real GDP growth rates last year, year. Debt spreads were little changed on average for albeit well below rates of the previous year. the region as a whole, exchange rates against the Korean real GDP is estimated to have increased dollar generally moved lower, and stock indexes about 2 percent in 2001. While in an absolute sense declined somewhat on average. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

173 Industrial Production and Capacity Utilization: The 2001 Annual Revision Carol Corrado, Charles Gilbert, and Norman Morin, earlier estimates. After having picked up in the secof the Board's Division of Research and Statistics, ond half of 1999 and having posted rapid gains in the prepared this article. Kristen Hamden provided first half of 2000, industrial output slowed noticeably research assistance. at midyear. According to the revised data, however, industrial output in the second half of 2000 was In late 2001, the Board of Governors of the Federal weaker than previously estimated, and the peak in Reserve System published the annual revision of IP occurred in June 2000 instead of August 2000. its index of industrial production (IP) and the related The cumulative decline in IP since the June peak is measures of capacity and capacity utilization for the 7.0 percent (table l).2 period January 1992 through October 2001 (chart 1). The rate of industrial capacity utilization (the ratio Measured from fourth quarter to fourth quarter, of production to capacity) as of the third quarter of industrial output and capacity are reported to have 2001 was little changed by the revision; at 74.6 perincreased at a slower rate in 1999 and 2000 than cent in the fourth quarter of 2001, the rate is 4 perpreviously reported, and the revision places the centage points below the nadir of the 1990-91 recesdecline in IP in 2001 at an annual rate of 6.0 percent.1 sion but 3 percentage points above that of the 1982 The estimated rate of increase in capacity in 2001 recession.3 For the fourth quarter of 2000, capacity was lowered 0.7 percentage point, to 1.7 percent. utilization was revised down 0.6 percentage point, to Despite the downward revision to IP in 1999 and 80.7 percent; a downward revision to the operating 2000, the general contour is the same as that in the rate in manufacturing of 1.2 percentage points was partly offset by an upward revisions to the operating NOTE. Charles Gilbert directed the 2001 annual revision and pre- rates in mining and utilities. pared the revised estimates of industrial production; Norman Morin prepared the revised measures of capacity and capacity utilization. Other contributors to the revision and this article were William Cleveland, Mark Doms, Marie DeGregorio, Gloria Fennell, Kristen 2. The revised data show consecutive declines in monthly IP for Hamden, Susan Polatz, and Dixon Tranum. the nine months ending June 2001, a 0.1 percent increase in July 2001, 1. Data referred to in the text and shown in table 1 are based on IP and decreases for the five months ending December 2001; the earlier and utilization rates as published on January 16, 2002. Statements data showed declines in monthly IP in every month from October referring to previously reported estimates refer to data published on 2000 to October 2001. November 16, 2001. 3. These comparisons use quarterly average data. 1. Industrial production, capacity, and utilization Ratio scale. 1992 output = 100 Percent of capacity Production 1992 1994 1996 1998 2000 2002 1988 2000 2002 NOTE. The production indexes and utilization rates are seasonally adjusted. All the revised measures extend through December 2001; the earlier measures extend through October 2001. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

174 Federal Reserve Bulletin • March 2002 The updated measures reflect the incorporation the inclusion of the Census data on capital spending of newly available, more-comprehensive source data by industry for 1999 and indicators of the rate of and the introduction of improved methods for compil- change in manufacturing capital spending in 2000 ing a few series. The new source data are for recent and 2001. years, primarily 1999 forward, and the modified The revised indexes of industrial production and methods affect the indexes from 1992 forward. capacity also reflect the updating of the value-added The statistical revisions to the IP index were weights used in aggregating the individual indexes to derived principally from the inclusion of information the major industry and market group subtotals and to contained in annual reports issued by the U.S. Census total industry. The industry groups in IP and capacity Bureau—the 1999 Annual Survey of Manufactures continue to be based on the 1987 Standard Industrial and selected 2000 Current Industrial Reports. Annual Classification (SIC); in the 2002 revision, the indusdata from the U.S. Geological Survey (USGS) on trial production and capacity utilization data will minerals (except fuels) were also introduced; revised be constructed and grouped according to the North data for 1999 and some new data for 2000 were American Industry Classification System (NAICS). available. In addition, the new monthly production Beginning with this revision, the capacity index for estimates for 2000 and 2001 reflect updated seasonal the extraction of natural gas is based on newly availfactors and the inclusion of monthly source data that able estimates from the EIA; the new data substanbecame available (or were revised) after the closing tially lower the estimate of the industry's capacity of the regular four-month reporting window. for the 1995-99 period. The new EIA figures are The capacity indexes and capacity utilization rates designed to better reflect the ability of producing incorporate the revised production indexes, results wells to deliver gas into the gathering and pipeline from the Census Bureau's 2000 Survey of Plant system; the previous EIA figures measured capacity Capacity for the fourth quarter of the year, and newly at the wellhead only. The revision also incorporates available 2000 data on industrial capacity from the new source data for another capacity series (silver); USGS, the Energy Information Administration (EIA) refinements to the methods used to compile two of the U.S. Department of Energy, and other organiza- monthly production series (construction machinery tions. In addition, the relationships used to estimate and original equipment motor vehicle parts); and new the current change in manufacturing capacity reflect methods and new source data to derive the valuel. Revised rates of change in industrial production and capacity and the revised rate of capacity utilization, 1998-2001 Revised rate of change > Difference between revised and previous 22000000 (percent) ... (percentage points) pprroo-- §1998- 1998ppoorrttiioonn 2001 1998 1999 2000 9 2001 2001 1998 1999 2000 2001 avg. * 1 avg. Production Total industry • MpB 100.0 PS1-7 Is m 3.51 4.3 2.6 -6.0 -.5 .3 ill-.7 ' -1.6 -.1 Manufacturing 86.5 1.8 4.3 4.8 2.3 -6.3 -.6 .3 gg-J, -1.9 .1 Excluding selected high-tech industries 78.3 -.5 1.4 1.9 -1.3 -5.3 -.2 - .2 -.4 -.7 .7 Selected high-tech industries 8.2 22.5 35.8 34.0 39.5 -15.9 -7.3 -1.4 -6.6 -15.8 -5.1 Mining and utilities 13.5 .5 -2.7 1.3 4.2 -3.8 .3 .5 .2 .4 -1.8 Capacity Total industry 100.0 4.0 6.4 3.9 4.0 1.7 -.5 -.1 -.7 -.5 -.7 Manufacturing 88.0 4.5 7.2 4.5 4.7 1.6 -.5 -.6 -.3 -1.0 Excluding selected high-tech fei 79.4 1.9 4.4 2.0 1.0 .3 -.2 -.1 .0 -.3 -.3 Selected high-tech industries 8.7 30.3 36.6 28.6 42.9 12.9 -6.3 -2.8 -9.2 —4.7 -8.6 Mining and utilities 12.0 1.0 -.2 .5 .8 3.1 .0 -.8 -.3 -.4 1.3 Capacity utilization Js* • • * - (percent, end of period) Total industry 100.0 80.1 81.5 81.8 80.7 74.6 -.1 .2 .2 -.6 -.2 Manufacturing 88.0 78.9 80.7 81.0 79.1 72.9 -.3 .2 .1 -1.2 -.4 Excluding selected high-tech || . industries 79.4 79.1 80.8 80.7 78.9 74.5 -.2 .1 -.2 -.6 .IP Selected high-tech industries 8.7 78.1 79.8 83.2 81.2 60.5 -.5 .7 2.4 -3.9 -2.3 Mining and utilities 12.0 89.2 88.1 88.8 91.8 85.7 1.4 1.3 y ^u 2.4 .3 NOTE. The 1998-2001 average rate of change is calculated as the average calculated for the period 1997:Q4 to 2001 :Q3. The difference in capacity annual percent change in the seasonally adjusted index from the fourth quarter utilization for 2001 refers to 2001:Q3 and the difference for 1998-2001 refers to of 1997 to the fourth quarter of 2001. Rates for years are calculated from the the period ending 2001 :Q3. fourth quarter of the previous year to the fourth quarter of the year specified. High-tech industries include the manufacturers of semiconductors and related The capacity utilization rates for years are for the last quarter of the year. devices, computers and computer peripherals, and communications equipment. The difference between revised and previous rates of change for IP for 2001 is calculated for the period 2000:Q4 to 2001 :Q3; the difference for 1998-2001 is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: The 2001 Annual Revision 175 added weights for the IP and capacity series for For most two-digit manufacturing industries, the electric utilities. The rates of change in the new new annual reports issued by the Census Bureau weights were applied to the old 1992 weight to derive implied only small changes to previously published a new series of annual weights ("best-change" IP figures for 1999. The output indexes for the transmethod) and result in slightly larger value-added portation equipment industry, the apparel and prodproportions for the electric utility industry. ucts industry, and the rubber and plastics industry were revised up. However, new data for the computer industry, mainly for printers and other peripheral SUMMARY OF THE REVISION equipment, implied a weaker gain in output for the industrial machinery and equipment group. The out- For the third quarter of 2001, the revision places the put of that industry was also lowered in 2000 because production index at 139.6 percent of output in 1992 of the inclusion of available data from the Curand the capacity index at 183.2 percent of output in rent Industrial Reports. Nonetheless, on balance, the 1992 (appendix table 1); both indexes are lower than revised data still indicate that the production of indusreported previously (chart 1). As noted earlier, the trial machinery and equipment increased at a robust capacity utilization rate was little changed for the rate in both years. third quarter of 2001. The revision now places the rise in the production Appendix tables 2, 3, and 4 show new data for index for the output of high-technology industries— monthly manufacturing IP and capacity utilization as computers and office equipment (SIC 357), semiwell as the results for total and manufacturing indus- conductors and related devices (SIC 3672-9), and tries, excluding selected high-technology industries. communications equipment (SIC 366)—at about Tables 5 and 6 show the revised rates of change 40 percent in 2000. The previously published estiof industrial production for market groups, industry mate was appreciably stronger; the new estimates groups, special aggregates, and selected detail for show less-rapid gains in the output of semiconducthe years 1997 through 2001 (fourth quarter to fourth tors, computers, and peripherals. The downward reviquarter); tables 7 and 8 show the revised figures for sions to the indexes for semiconductor output reflect capacity utilization and capacity. For production and the incorporation of data from the 2000 Current capacity, the tables also show the difference between Industrial Report and more-comprehensive informathe revised and earlier rates of change (third quarter tion on prices. used for 2001). For capacity utilization, the tables Excluding high-technology industries, the revised show the difference between the revised and previous IP series show more-pronounced weakness, mainly rates for the final quarter of the year. in manufacturing, in the second half of 2000. The change reflects the updating of seasonal factors and the inclusion of revisions to monthly source data. The Industrial production more-pronounced weakness appears in the durable goods manufacturing industries, especially the indus- The revision lowered the rate of increase in industrial trial machinery, motor vehicle parts, instruments, furoutput 0.7 percentage point for 1999 and 1.6 percent- niture, and stone, clay, and glass products industries. age points for 2000 (measured from the fourth quar- Among major market groups, the revised producter of the preceding year to the fourth quarter of the tion indexes for consumer goods and for construction year indicated); the increase in industrial production supplies showed, on balance, little change for 2000 was raised slightly for 1997 and 1998. and 2001. The revised indexes for business equip- The somewhat faster increase in IP now shown ment and for industrial materials showed slower gains for 1997 and 1998 reflects both the incorporation of in 2000 and little change in the decline for 2001. recently issued revisions to the annual Census data The revised position of the peak in 2000 in overand the introduction of refinements and revisions all industrial production reflects reductions in the to the price deflators used to construct the annual rates of change between June 2000 and August 2000 indexes that determine the trend in each industrial for several industries. The selected high-technology production series from one year to the next.4 aggregate is a major contributor to the change in the peak; new data suggest that output in 2000 was lower than previously estimated, and based on revised highfrequency source data, production was revised down 4. The general methods used to measure individual IP series were more sharply in the second half of 2000 than in the reviewed in an article published in the March 2001 issue of the first half. In addition, both new data on cigarette Federal Reserve Bulletin (www.federalreserve.gov/pubs/bulletin/ production and updated methods for estimating the 2001/0301 scnd.pdf) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

176 Federal Reserve Bulletin • March 2002 output of motor vehicle parts contributed to the dip Capacity at electric and gas utilities increased a bit into negative territory of the rate of change in IP more slowly from 1997 through 2000 than previously between June 2000 and August 2000. reported. The North American Electric Reliability Over history, the initial estimates of industrial pro- Council reduced its estimate of generating capacity duction have tended to reliably indicate the turning for 2000 but sharply increased the estimate for 2001; points in IP (with all of its source data incorporated). as a result, the rise in capacity at utilities for 2001 For the four previous recessions, the initial estimates was revised up more than 1 percentage point, to identified the first month of decline in IP correctly or 5.2 percent. In both the previous and the revised data, one month early. For three of the four previous reces- the rate of expansion of utility capacity for 2001 is sions, they identified the first month of recovery the largest since 1974, a surge reflecting the response correctly or one month early. For the fourth reces- of producers to the significant shortfall in generating sion, despite showing a significant slowing of capacity last winter. declines around the currently estimated turning point, the initial estimates of IP pegged the beginning of the recovery two months later than is now shown. Capacity Utilization The Survey of Plant Capacity indicated that the fac- Capacity tory operating rate was lower in the fourth quarter of 2000 than previously estimated. The revised utiliza- Manufacturing capacity in 2001 is estimated to have tion rate for manufacturing was 79.1 percent in the risen 1.6 percent, more than 1 percentage point lower final quarter of 2000, 1 percentage point lower than than previously published. On average, manufactur- reported earlier. ing capacity increased 4.6 percent per year in 1999 Capacity utilization in manufacturing reached and 2000 (previously estimated at about 5 percent) 81.7 percent in the middle of 2000, 0.6 percentage and, on average, expanded 6 percent per year from point above its long-term (1967-2000) average. The 1994 through 1998 (a number virtually unchanged factory operating rate had climbed to 83 percent in from the previous estimates). The rapid gains 1997, before the onset of economic turmoil in Asia, in capacity during the second half of the 1990s but dropped back more than 2 percentage points by were concentrated in industries that produce high- the end of 1998. From the middle of 2000 through the technology goods and devices. Given the downward fourth quarter of 2001, the utilization of manufacturrevision to output in these industries, the pace of ing capacity plummeted almost 9 percentage points. capacity expansion was also revised down; nonethe- Among manufacturing industries in the fourth less, from 1994 through 2000 it still averaged nearly quarter of 2001, the utilization rates for primary 40 percent per year. The relatively slow expansion of processors were nearly the same as those for capacity in these industries in 2001, now estimated at advanced processors. Since the middle of 2000, the 12.9 percent, was in large part the result of a down- decline in the rate for primary-processing industries— shift in capital spending by semiconductor manufac- about 12 percentage points—has been especially turers. Outside the selected high-technology indus- sharp. Primary processors were operating at relatries, investment spending for 2001 is estimated to tively elevated rates in the second quarter of 2000. have fallen 6 percent, and plant capacity is estimated The rates for primary metals; semiconductors; stone, to have edged up 0.3 percent, down from the 2 per- clay, and glass products; petroleum products; and cent pace in 1999 and the 3.2 percent annual average motor vehicle parts were above their long-term averfor 1994 through 1998. ages. By the fourth quarter of 2001, the only primary- Capacity in mining was revised down noticeably processing industry that was operating at rates above its long-term average was petroleum and products. for the 1995-2000 period but was revised up substan- Among advanced processors, only the producers of tially for 2001. The changes were primarily the result light trucks, ships and boats, and chemical products of incorporating new EIA measures for the capability were operating at above-average rates. to extract natural gas; in value-added terms, natural gas extraction is about 30 percent of mining output. Capacity utilization in mining was revised up to According to the revised data, from 1995 through 90.7 percent in the third quarter of 2001 and then 1998, capacity at mines increased a scant 0.1 percent declined to 88.4 percent in the fourth quarter, still per year, and in 1999 and 2000, it declined about somewhat higher than its long-term average of 2 percent per year. For 2001, however, mining capac- 87.6 percent. The utilization rate for electric and gas ity is estimated to have increased 0.4 percent. utilities in the third quarter of 2001 was little changed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: The 2001 Annual Revision 41 by the revision, but the rates in 1998, 1999, and 2000 updated to capture data that became available after increased. the closing of the regular four-month reporting window. For example, monthly data from the U.S. Department of the Treasury on the production of TECHNICAL ASPECTS OF THE REVISION alcoholic beverages and cigarettes may be unavailable initially but available for inclusion in the annual As noted earlier, the annual revision incorporated revision. more-comprehensive annual data on industry out- The input measures were also updated to incorpoput, utilization, value added, and capital spending for rate revised data on monthly production-worker hours 1999 and 2000, along with an update of all seasonal (based on the Bureau of Labor Statistics [BLS] factors and monthly data on production, production- benchmark of employment to March 2000 comworker hours, and electric power use. In addition, the prehensive measures) and on monthly electric power capital input measures used in the construction of use since 1997. Besides benchmarking data on capacity indexes incorporate more-recent data for production-worker hours to March 2000 compreoverall business investment and prices from the hensive measures, the BLS also incorporated data Bureau of Economic Analysis.5 derived from new sampling procedures from 1999 Previously issued annual data on output and prices forward. The new estimates reduced the change in for 1997 and 1998 that were slightly revised by the production-worker hours at manufacturers in the secoriginal source were also included. ond half of 2000, with the bulk of the reduction in The Census Bureau reported its new 1999 and industries in which the data on production-worker 2000 data on industry output and capacity utilization, hours are used as the monthly production indicator in as well as its revisions to 1997 and 1998 data, on the IP. new North American Industrial Classification System Seasonal factors for all series were re-estimated (NAICS). Before being included in the IP and capac- using data that extend into 2001. Factors for ity indexes, which continue to be based on the 1987 production-worker hours, which adjust for timing, Standard Industrial Classification (SIC), the data were holiday, and monthly seasonal patterns, were updated recategorized by the Federal Reserve according to the with data through October 2001. Factors for the SIC system. electric power series, which are developed using In the 2002 revision, the industrial production and multivariate methods, were re-estimated using data capacity utilization data will be derived according through May 2001. The updated factors for the physito NAICS; data from at least 1977 forward will be cal product series, which include adjustments for subject to revision; and the indexes will be rebased, holiday and workday patterns, used data through with 1997 equal to 100. The new NAICS production at least June 2001. Seasonal factors for unit motor data will be derived from annual output measures vehicle assemblies were updated with data through constructed by reclassifying the establishments in September 2001; they are on the Board's web site at historical Censuses of Manufactures and Mineral w ww.federalreserve.gov/releases/g 17/mvsf .htm. Industries according to NAICS categories; annual output indexes constructed in this way maximize the reliability and historical consistency of the IP industry detail. Weights for Aggregation The weights for the aggregation of IP indexes and Revised Monthly Data capacity utilization rates are derived from annual estimates of industry value added. For manufactur- The product data that are used to measure the ing, the Census Bureau provides such data annually; monthly movements of many IP indexes were for mining, quinquennial figures are provided. For the electric and gas utility industries, the Federal Reserve derives estimates of value added from annual revenue and expense data issued by other organizations. Estimates of industry value added were 5. The general methods used to measure individual capacity series were summarized in the March 2001 issue of the Federal Reserve updated with annual data through 1999, and the Bulletin. A fuller description of the models used to develop the weights for aggregation (unit value added) were esti- Federal Reserve's capacity estimates were reported in the March 2000 mated using the most recent data on producer prices. issue of the Bulletin (www.federalreserve.gov/pubs/bulletin/2000/ 0300secnd.pdf). Appendix table 9 reports the annual value-added Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 Federal Reserve Bulletin • March 2002 proportions incorporated in the IP index from 1994 2. U.S. LAN equipment, 1992-2001 forward. Beginning with this revision, the methods and data Value of Production Price production PPeerriioodd used to obtain estimates of value added in the electric index index (millions of dollars) utility industry have been improved. A change was necessary for several reasons. First, many of the data Annual estimates (1992 = KV that had been used to compute value added were 1992 100.000 100.000 1,684.8 1993 190.691 83.556 2,684.4 contained in an EIA publication that has been discon- 1994 298.728 74.243 3,736.6 tinued. Second, the EIA data on "utilities" include 1995 604.349 62.153 6,328.3 regulated entities only, and data covering all produc- 1996 953.621 57.123 9,177.7 1997 1,610.035 47.548 12,897.7 ers of electric power (that is, including the unregu- 1998 2,480.329 34.327 14,344.5 lated power generators) are required to avoid a severe 1999 3,191.443 28.130 15,124.9 2000 4,163.164 24.406 17,118.2 understatement of the value added by the entire Quarterly estimates industry in 2000. Finally, a review of the earlier (1996.Q1 = 100) methods suggested value added was understated for 1996:Q1 100.000 100.000 7,923.2 Q2 $ 113.744 M 98.967 8,919.0 the period preceding the deregulation of the industry. Q3 128.626 93.735 9,552.8 Q4 150.302 86.623 10,315.7 The Federal Reserve's new estimates of value 1997:Q1 161.797 84.029 10,772.1 added for the electric utility industry were con- Q2 183.502 79.683 11,585.3 structed according to the Census definition of value Q3 224.022 77.535 13,762.2 Q4 262.123 74.493 15,471.1 added, that is, industry revenue minus the cost of 1998:Q1 290.487 62.795 14,452.9 purchased material inputs. Data on industry revenue Q2 326.083 59.075 15,262.7 Q3 328.499 53.487 13,921.3 (including all establishments that distribute power to Q4 329.790 52.587 13,741.0 final users) were obtained from Statistical Yearbooks 1999:Q 1 417.721 48.619 16,091.2 issued by the Edison Electric Institute; these data Q2 419.060 47.117 15,644.2 Q3 394.817 46.808 14,642.6 were combined with EIA measures of fuel costs to -K* Q4 402.795 44.249 14,121.6 obtain an estimate of Census value added. The new 2000:Q1 449.375 43.459 15,473.4 figures were applied on a best-change basis for the Q2 493.979 41.718 16,327.9 Q3 599.868 39.456 18,752.6 period from 1992 forward; the 2002 revision will Q4 604.171 37.433 17,919.0 introduce refined results as well as revised figures for 2001 :Q1 538.767 34.889 14,893.0 earlier years. Q2 465.929 34.232 12,651.6 Q3 471.295 31.602 11,814.1 Changes to Individual Series now developed from monthly product data (engines, brakes, axles, and transmissions), production-worker With this revision, the capacity series for natural gas hours, and motor vehicle assemblies; previously, the extraction (part of SIC 13) incorporates new esti- series was derived from the product data only. mates developed by the EIA; the new estimates are The annual estimates of motor vehicle repair parts substantially lower than the agency's previous figures were also improved; their derivation now includes that were used to derive the capacity for natural gas information on the average age of the motor vehicle extraction. The new figures are designed to better fleet. reflect the ability of producing wells to deliver gas into the gathering and pipeline system, whereas previous EIA figures measured capacity at the wellhead LAN Equipment only. The source data for one other capacity series has The 2000 revision introduced a new IP series for the changed. The index for silver capacity is now based production of local area network (LAN) equipment on data from the USGS; previously it was derived (routers, switches, and hubs). The new series is not using a trend-through-peak method. published in the monthly statistical release, but it is The monthly production indicators for construction included in the broader IP aggregate for communicamachinery and original equipment motor vehicle tions equipment and updated on an ongoing basis parts were refined. The weights used to combine the (see the March 2001 Bulletin article). Table 2 shows available product data for construction machinery updates of the results for LAN equipment originally were updated. The indicator for motor vehicle parts is issued a year ago. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: The 2001 Annual Revision 179 APPENDIX A: SUMMARY TABLES BASED ON THE G.17 RELEASE, JANUARY 16, 2002 A.l. Revised data for industrial production, capacity, and utilization for total industry Seasonally adjusted data except as noted Quarter Annual YYeeaarr JJaann.. FFeebb.. MMaarr.. AApprr.. MMaayy JJuunnee JJuullyy AAuugg.. SSeepptt.. avg.1 1 2 3 4 Industrial production (percent change) 1979 -.5 .8 .3 -.9 1.2 .0 -.7 -.4 .1 .4 -.5 -.2 2.2 1.1 -2.3 -.3 3.3 1980 .5 .1 .0 -1.9 -2.5 -1.3 -.6 1.2 1.5 .7 1.6 .5 .8 -15.0 -4.2 14.2 -2.8 1981 -.9 .5 .5 -.7 .8 .6 .9 -.4 -.8 -.8 -1.4 -1.1 1.9 2.2 4.1 -10.5 1.6 1982 -1.6 2.2 -.7 -.9 -.8 -.3 -.8 -.5 -.7 -.8 -.3 -.8 -6.4 -5.2 -7.3 -7.5 -5.4 1983 2.1 -.2 1.0 1.3 1.2 .6 1.8 1.3 1.7 .8 -.1 .5 6.8 11.9 17.3 10.3 3.7 1984 2.1 -.2 1.1 .5 .6 .5 .2 .0 -.1 -.5 .1 -.4 11.1 7.2 2.6 -2.6 8.9 1985 .4 .9 .3 .2 .2 -.2 -.4 .6 .6 -.9 .6 .7 3.0 2.8 .3 1.4 1.6 1986 .6 -.7 -1.0 .8 -.2 -.3 .3 .3 -.1 .9 .5 .9 2.0 -1.7 .7 6.5 1.1 1987 -.6 1.2 .4 .4 .4 .9 .6 .1 -.1 1.4 .3 .6 4.2 6.7 5.6 7.1 4.6 1988 .1 .3 .0 .6 .1 .1 .7 .5 -.4 .3 .8 .5 3.2 3.1 3.9 3.6 4.5 1989 .6 -.8 .9 .2 -.6 -.2 -1.0 .4 -.2 -.5 .4 .5 3.8 .5 -4.4 -.1 1.8 1990 -.5 .5 .5 -.6 .4 .0 .0 .2 .1 -.6 -1.3 -.6 2.0 .6 1.0 -5.8 -.2 1991 -.5 -.8 -.9 .3 .8 1.2 .1 .1 1.0 -.1 -.1 -.6 -8.3 1.5 6.2 1.1 -2.0 1992 .0 .5 .9 .7 .3 -.1 .9 -.3 .4 .5 .6 .0 .6 6.6 3.3 4.4 3.1 1993 .3 .4 .2 .3 -.4 .2 .2 -.2 1.0 .4 .5 .8 3.6 1.5 1.8 6.5 3.4 1994 .2 .3 .8 .6 .7 .5 .3 .4 .2 .8 .6 1.1 5.7 7.6 5.2 7.5 5.5 1995 .5 .0 .1 -.2 .3 .4 -.5 1.3 .4 -.1 .3 .2 5.9 .8 3.6 3.6 4.8 1996 -.3 1.2 -.1 1.0 .7 .7 .2 .6 .5 .0 1.0 .6 2.9 8.4 6.3 5.8 4.6 1997 .4 1.1 .1 .6 .3 .5 .5 1.0 .7 .7 .6 .2 7.7 6.0 7.7 8.2 6.9 1998 .6 .1 .3 .5 .3 -.6 -.2 1.9 -.2 .6 -.4 .0 4.5 3.2 2.8 3.5 5.1 1999 .7 .2 .4 .1 .4 .2 .6 .5 .0 .8 .4 .7 3.6 3.3 4.7 5.8 3.7 2000 .2 .6 .6 .5 .7 .4 -.4 .1 .1 -.4 -.3 -.4 5.8 7.0 .6 -2.6 4.5 2001 -.8 -.3 -.4 -.6 -.3 -.9 .1 -.3 -1.1 -.7 -.4 -.1 -6.1 -5.9 -A.l -7.2 -3.9 Industrial production (index) 1999 136.9 137.2 137.8 137.9 138.5 138.8 139.6 140.2 140.3 141.3 141.9 142.9 137.3 138.4 140.0 142.0 139.4 2000 143.2 144.0 144.9 145.6 146.6 147.2 146.5 146.7 146.8 146.3 145.8 145.1 144.0 146.5 146.7 145.7 145.7 2001 143.9 143.5 142.9 142.0 141.6 140.3 140.4 140.0 138.5 137.5 136.9 136.7 143.5 141.3 139.6 137.0 140.1 Capacity (index) 1999 168.4 168.9 169.5 170.0 170.5 171.0 171.5 172.0 172.5 173.1 173.6 174.2 168.9 170.5 172.0 173.6 171.3 2000 174.8 175.4 176.0 176.6 177.2 177.9 178.5 179.0 179.6 180.1 180.6 181.1 175.4 177.2 179.0 180.6 178.1 2001 181.5 181.8 182.2 182.4 182.6 182.8 183.0 183.2 183.3 183.5 183.7 183.8 181.8 182.6 183.2 183.7 182.8 Utilization (level, percent) 1979 86.7 87.1 87.1 86.1 86.9 86.7 85.9 85.4 85.3 85.5 84.9 84.5 87.0 86.6 85.5 85.0 86.0 1980 84.7 84.6 84.4 82.6 80.4 79.2 78.5 79.3 80.3 80.7 81.8 82.1 84.6 80.7 79.4 81.5 81.5 1981 81.2 81.4 81.6 80.9 81.4 81.8 82.3 81.8 80.9 80.1 78.8 77.7 81.4 81.4 81.7 78.9 80.8 1982 76.3 77.8 77.1 76.2 75.4 75.0 74.2 73.7 73.0 72.2 71.9 71.1 77.1 75.6 73.6 71.7 74.5 1983 72.5 72.3 72.9 73.7 74.5 74.8 76.1 77.0 78.2 78.7 78.6 78.9 72.6 74.4 77.1 78.7 75.7 1984 80.4 80.1 80.8 81.0 81.3 81.5 81.5 81.3 81.0 80.5 80.4 79.8 80.4 81.3 81.3 80.2 80.8 1985 79.9 80.4 80.4 80.3 80.3 79.9 79.4 79.6 79.9 79.0 79.2 79.5 80.2 80.2 79.6 79.2 79.8 1986 79.8 79.2 78.2 78.7 78.4 78.1 78.2 78.3 78.2 78.8 79.1 79.7 79.1 78.4 78.2 79.2 78.7 1987 79.1 80.0 80.2 80.5 80.7 81.4 81.8 81.8 81.6 82.6 82.8 83.2 79.8 80.8 81.7 82.9 81.3 1988 83.2 83.4 83.3 83.7 83.7 83.6 84.1 84.5 84.1 84.2 84.8 85.1 83.3 83.7 84.2 84.7 84.0 1989 85.4 84.6 85.3 85.3 84.7 84.4 83.4 83.6 83.3 82.8 83.0 83.2 85.1 84.8 83.4 83.0 84.1 1990 82.7 83.0 83.3 82.7 82.9 82.7 82.6 82.6 82.6 82.0 80.8 80.2 83.0 82.8 82.6 81.0 82.3 1991 79.6 78.9 78.1 78.2 78.7 79.6 79.5 79.5 80.2 80.0 79.8 79.2 78.9 78.8 79.7 79.6 79.3 1992 79.0 79.3 79.8 80.3 80.3 80.1 80.7 80.3 80.4 80.7 81.0 80.9 79.4 80.2 80.5 80.9 80.2 1993 81.1 81.3 81.2 81.4 80.9 80.9 81.0 80.6 81.3 81.4 81.6 82.1 81.2 81.1 81.0 81.7 81.2 1994 82.1 82.1 82.6 82.8 83.1 83.3 83.3 83.4 83.3 83.6 83.8 84.4 82.3 83.1 83.3 84.0 83.2 1995 84.5 84.2 83.9 83.4 83.3 83.3 82.5 83.2 83.2 82.8 82.7 82.5 84.2 83.3 83.0 82.7 83.3 1996 81.9 82.5 82.0 82.5 82.7 82.9 82.7 82.9 83.0 82.6 83.0 83.1 82.1 82.7 82.9 82.9 82.7 1997 83.1 83.6 83.3 83.4 83.3 83.3 83.2 83.6 83.7 83.8 83.9 83.6 83.3 83.3 83.5 83.8 83.5 1998 83.6 83.1 82.9 82.9 82.7 81.8 81.2 82.4 81.8 82.0 81.3 81.1 83.2 82.5 81.8 81.5 82.2 1999 81.3 81.2 81.3 81.1 81.2 81.2 81.4 81.5 81.3 81.7 81.7 82.0 81.3 81.2 81.4 81.8 81.4 2000 81.9 82.1 82.3 82.5 82.7 82.8 82.1 81.9 81.7 81.2 80.7 80.2 82.1 82.6 81.9 80.7 81.8 2001 79.3 78.9 78.5 77.8 77.5 76.7 76.7 76.4 75.5 74.9 74.5 74.4 78.9 77.4 76.2 74.6 76.8 NOTE. Monthly percent change figures show change from the previous Estimates from October 2001 through December 2001 are subject to further month; quarterly figures show the change from the previous quarter at a revision in the upcoming monthly releases. compound annual rate of growth. Production and capacity indexes are expressed 1. Annual averages of industrial production are calculated from indexes that as percentages of output in 1992. are not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Federal Reserve Bulletin • March 2002 A.2. Revised data for industrial production, capacity, and utilization for manufacturing industries Seasonally adjusted data except as noted Quarter Year Annual avg.1 1 2 3 4 Industrial production (percent change) 1979 -.3 .7 .4 -1.5 1.5 .1 -.5 -.9 .0 .5 -.7 -.1 3.4 .3 -2.4 -1.5 3.6 1980 .2 .3 -.4 -2.1 -3.1 -1.5 -.7 1.7 1.5 1.1 1.7 .3 -.4 -17.7 -4.7 16.8 -3.9 1981 -.6 .6 .3 .2 .7 -.1 .6 -.8 -.8 -1.1 -1.6 -1.6 2.5 4.2 -.1 -13.1 1.6 1982 -2.0 2.9 -.7 -.9 -.4 .0 -.8 -.5 -.5 -1.2 -.3 -.7 -7.6 -2.7 -5.6 -8.0 -5.9 1983 2.5 .4 1.4 1.1 1.4 .8 1.5 1.1 2.2 .6 .3 -.1 11.5 14.7 17.1 11.2 5.7 1984 2.5 .6 .7 .5 .4 .7 .3 .1 -.2 .0 .1 -.3 13.2 6.6 3.4 -.4 9.9 1985 .1 .6 .7 .2 .5 -.3 -.4 .9 .4 -.8 1.1 -.1 2.1 4.2 1.1 1.6 2.3 1986 1.5 -.5 -.9 1.4 -.1 -.3 .3 .6 .0 .8 .4 1.2 4.5 1.7 1.7 6.7 2.8 1987 -.8 1.6 .2 .5 .3 1.0 .7 -.2 .1 1.3 .5 .6 5.0 7.0 5.5 7.6 5.3 1988 -.2 .4 -.1 1.0 -.1 .0 .7 .3 .2 .2 .9 .6 2.3 4.1 3.7 5.2 4.7 1989 .9 -1.2 .8 .1 -.7 .0 -1.1 .3 -.3 -.6 .4 .1 4.3 -.7 -4.5 -1.4 1.9 1990 -.2 .9 .3 -.8 .4 -.1 .0 .3 -.1 -.6 -1.3 -.6 2.9 -.1 .8 -6.3 -.5 1991 -.9 -.7 -1.1 .3 .7 1.4 .2 .2 1.1 -.1 -.2 -.5 -9.7 1.2 7.8 1.7 -2.4 1992 .1 .7 1.0 .6 .4 .0 .9 -.3 .3 .5 .6 -.1 2.0 7.4 4.1 3.7 4.0 1993 .7 .2 .2 .5 -.3 .0 .2 -.3 1.1 .4 .5 .9 4.2 2.1 1.3 6.9 3.7 1994 .1 .4 1.1 .8 .8 .3 .5 .6 .3 .9 .8 1.1 5.9 9.4 6.0 9.0 6.1 1995 .6 -.1 .2 -.3 .1 .5 -.7 1.2 .7 .0 .1 .1 6.4 .4 3.0 4.2 5.3 1996 -.3 1.2 -.2 1.2 .8 .9 .6 .6 .6 .0 1.0 .7 2.4 9.2 8.4 6.2 4.9 1997 .4 1.2 .3 .5 .4 .7 .4 1.3 .6 .6 .7 .3 8.8 6.8 8.9 8.7 7.9 1998 .9 .0 .2 .7 .2 -.7 -.2 2.3 -.2 .8 -.2 .2 6.0 3.0 3.2 5.2 5.9 1999 .6 .4 .2 .2 .6 .1 .4 .8 .0 .8 .6 .6 3.9 3.6 4.8 6.9 4.2 2000 .3 .5 .9 .3 .7 .5 -.4 -.1 .1 -.5 -.5 -.7 6.3 7.1 .4 -4.0 4.8 2001 -.8 -.3 -.4 -.8 -.2 -1.0 .2 -.5 -1.1 -.7 -.2 -.1 -7.1 -6.2 -4.9 -7.1 -4.5 Industrial production (index) 1999 141.8 142.4 142.7 143.0 143.8 143.9 144.4 145.6 145.7 146.8 147.7 148.6 142.3 143.6 145.2 147.7 144.7 2000 149.0 149.8 151.1 151.6 152.6 153.3 152.7 152.6 152.8 152.0 151.2 150.1 149.9 152.5 152.7 151.1 151.6 2001 148.9 148.4 147.9 146.7 146.4 145.0 145.2 144.5 142.9 141.8 141.5 141.3 148.4 146.0 144.2 141.6 144.8 Capacity (index) 1999 176.1 176.8 177.4 178.0 178.6 179.2 179.8 180.4 181.1 181.7 182.4 183.1 176.8 178.6 180.4 182.4 179.5 2000 183.8 184.6 185.4 186.1 186.9 187.7 188.4 189.1 189.8 190.4 191.0 191.5 184.6 186.9 189.1 191.0 187.9 2001 192.0 192.4 192.7 193.0 193.2 193.4 193.5 193.6 193.8 193.9 194.1 194.2 192.3 193.2 193.6 194.1 193.3 Utilization (level, percent) 1979 86.4 86.7 86.9 85.3 86.4 86.3 85.6 84.5 84.3 84.5 83.6 83.3 86.7 86.0 84.8 83.8 85.3 1980 83.3 83.3 82.7 80.8 78.1 76.7 75.9 77.0 77.9 78.6 79.7 79.7 83.1 78.5 76.9 79.3 79.5 1981 79.0 79.2 79.3 79.3 79.6 79.3 79.6 78.8 78.0 77.0 75.6 74.2 79.2 79.4 78.8 75.6 78.3 1982 72.6 74.6 73.9 73.1 72.7 72.6 71.8 71.4 70.9 69.9 69.6 69.0 73.7 72.8 71.4 69.5 71.8 1983 70.6 70.8 71.8 72.5 73.4 73.9 74.8 75.6 77.2 77.6 77.7 77.5 71.1 73.2 75.9 77.6 74.4 1984 79.3 79.5 79.8 80.0 80.1 80.3 80.4 80.2 79.8 79.6 79.5 79.0 79.5 80.1 80.1 79.4 79.8 1985 78.9 79.1 79.3 79.2 79.4 78.9 78.3 78.8 78.8 77.9 78.5 78.2 79.1 79.2 78.6 78.2 78.8 1986 79.1 78.6 77.8 78.7 78.5 78.1 78.2 78.6 78.4 78.9 79.1 79.9 78.5 78.5 78.4 79.3 78.7 1987 79.1 80.2 80.3 80.6 80.7 81.4 81.8 81.5 81.5 82.5 82.8 83.1 79.9 80.9 81.6 82.8 81.3 1988 82.9 83.1 82.9 83.7 83.5 83.4 83.8 84.0 84.0 84.1 84.8 85.1 83.0 83.5 83.9 84.7 83.8 1989 85.7 84.5 85.0 85.0 84.2 84.1 83.0 83.1 82.7 82.1 82.2 82.1 85.1 84.4 82.9 82.1 83.6 1990 81.8 82.5 82.6 81.8 82.0 81.8 81.6 81.7 81.5 80.9 79.7 79.0 82.3 81.9 81.6 79.9 81.4 1991 78.2 77.5 76.6 76.8 77.1 78.1 78.2 78.2 79.0 78.9 78.6 78.1 77.5 77.3 78.5 78.5 77.9 1992 78.0 78.4 79.0 79.4 79.5 79.4 80.0 79.6 79.7 79.9 80.2 80.0 78.5 79.4 79.8 80.0 79.4 1993 80.4 80.4 80.4 80.6 80.2 80.0 80.1 79.7 80.4 80.5 80.7 81.2 80.4 80.3 80.0 80.8 80.4 1994 81.1 81.1 81.8 82.2 82.5 82.5 82.6 82.8 82.7 83.1 83.4 84.0 81.3 82.4 82.7 83.5 82.5 1995 84.1 83.7 83.5 82.9 82.6 82.6 81.7 82.3 82.5 82.1 81.8 81.5 83.8 82.7 82.1 81.8 82.6 1996 80.9 81.4 80.8 81.3 81.5 81.8 81.9 82.0 82.1 81.7 82.1 82.2 81.0 81.6 82.0 82.0 81.6 1997 82.1 82.7 82.5 82.5 82.4 82.5 82.4 83.0 83.0 83.0 83.0 82.7 82.5 82.5 82.8 82.9 82.7 1998 83.0 82.4 82.1 82.2 81.8 80.8 80.1 81.5 80.9 81.2 80.6 80.4 82.5 81.6 80.9 80.7 81.4 1999 80.5 80.6 80.4 80.3 80.5 80.3 80.3 80.7 80.5 80.8 81.0 81.1 80.5 80.4 80.5 81.0 80.6 2000 81.0 81.1 81.5 81.4 81.6 81.7 81.0 80.7 80.5 79.8 79.2 78.4 81.2 81.6 80.7 79.1 80.7 2001 77.6 77.2 76.7 76.0 75.8 75.0 75.1 74.6 73.7 73.1 72.9 72.8 77.2 75.6 74.5 72.9 75.0 NOTE. See also general note to table A.L. 1. Annual averages of industrial production are calculated from indexes that are not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: The 2001 Annual Revision 181 A.3. Revised data for industrial production, capacity, and utilization for total industry excluding selected high-technology industries Seasonally adjusted data except as noted Quarter Annual YYeeaarr JJaann.. FFeebb.. MMaarr.. AApprr.. MMaayy JJuunnee JJuullyy AAuugg.. SSeepptt.. Oct. avg.1 1 2 3 4 Industrial production (percent change) 1979 -.7 .8 .2 -1.1 1.1 -.1 -.8 -.5 .0 .3 -.6 -.3 .9 -.1 -3.5 -1.4 2.2 1980 .3 .0 -.1 -2.2 -2.7 -1.3 -.8 1.2 1.6 .6 1.6 .5 -.7 -16.6 -4.9 13.8 ^1.0 1981 -.9 .4 .4 -.8 .8 .5 .9 -.5 -1.0 -.8 -1.6 -1.4 1.3 1.1 3.2 -11.8 .8 1982 -1.6 2.0 -.8 -.9 -.9 -.4 -1.0 -.4 -1.0 -1.0 -.3 -1.2 -7.7 -5.8 -8.2 -9.1 -6.5 1983 2.5 -.4 .8 1.2 1.2 .4 1.8 1.4 1.6 .6 -.2 .5 6.9 10.6 16.8 8.7 2.8 1984 1.9 -.3 1.0 .4 .4 .3 .1 -.1 -.2 -.5 .0 -.5 9.7 5.3 1.0 -3.5 7.5 1985 .3 .9 .2 .1 .2 -.1 -.5 .6 .7 -.8 .3 .7 2.3 2.5 .5 1.0 .9 1986 .7 -.8 -1.1 .8 -.3 -.2 .0 .2 -.2 1.0 .4 1.0 1.7 -1.8 -.6 6.3 .8 1987 -.8 1.2 .3 .4 .5 .8 .5 .1 -.2 1.3 .3 .5 3.5 6.8 5.0 6.5 4.2 1988 .1 .2 .1 .4 -.2 .1 .6 .5 -.3 .4 .6 .5 2.8 1.8 3.3 3.5 3.9 1989 .5 -.7 .9 .1 -.7 -.3 -.9 .4 -.3 -.3 .2 .3 3.5 -.3 -4.8 -.4 1.4 1990 -.4 .5 .5 -.5 .3 -.1 .0 .1 .2 -.6 -1.4 -.7 1.7 .6 .7 -6.4 -.5 1991 -.5 -.9 -1.0 .4 .8 1.2 .1 .0 1.0 -.2 -.2 -.7 -8.8 1.4 6.1 .4 -2.4 1992 -.3 .5 .8 .7 .2 -.3 .8 -.4 .3 .4 .5 .1 -.9 5.8 2.2 3.3 2.2 1993 .4 .4 .1 .3 -.5 .2 .2 -.3 .9 .3 .4 .7 3.5 .8 1.0 5.3 2.7 1994 .2 .3 .6 .3 .5 .4 .2 .3 .1 .6 .5 .8 4.8 5.5 3.3 5.3 4.1 1995 .2 -.2 -.1 -.4 .1 .3 -.6 1.1 .1 -.4 .1 .0 2.8 -1.4 1.4 .3 2.4 1996 -.5 1.1 -.3 .8 .5 .5 -.1 .3 .3 -.3 .8 .4 .6 6.1 3.2 2.8 2.0 1997 .2 .9 -.2 .4 .1 .3 .2 .8 .6 .6 .3 -.2 4.9 2.8 5.0 6.1 4.1 1998 .2 -.2 .3 .5 .2 -.9 -.6 1.8 -.5 .5 -.5 -.2 .7 1.9 -.4 1.3 2.5 1999 .4 .0 .2 -.1 .3 -.1 .2 .4 -.1 .6 .1 .3 .7 .8 2.1 3.7 1.1 2000 -.2 .3 .2 .2 .3 .3 -.7 .0 -.1 -.5 -.4 -.5 1.2 2.8 -2.0 -3.9 1.3 2001 -.7 -.2 -.3 -.4 -.1 -.8 .3 -.3 -1.1 -.8 -.4 -.1 -5.4 -3.9 -3.3 -7.7 -3.9 Industrial production (index) 1999 119.6 119.6 119.9 119.7 120.1 120.0 120.3 120.7 120.6 121.4 121.6 122.0 119.7 119.9 120.6 121.7 120.5 2000 121.7 122.0 122.3 122.5 122.9 123.2 122.3 122.3 122.2 121.6 121.1 120.5 122.0 122.8 122.2 121.0 122.0 2001 119.6 119.4 119.1 118.6 118.5 117.6 117.9 117.6 116.3 115.3 114.8 114.6 119.4 118.2 117.2 114.9 117.2 Capacity (index) 1999 147.1 147.3 147.6 147.8 148.0 148.2 148.4 148.6 148.7 148.8 149.0 149.1 147.3 148.0 148.6 148.9 148.2 2000 149.2 149.3 149.4 149.5 149.6 149.7 149.7 149.8 149.9 150.0 150.1 150.2 149.3 149.6 149.8 150.1 149.7 2001 150.2 150.3 150.4 150.5 150.5 150.6 150.7 150.7 150.8 150.8 150.9 150.9 150.3 150.5 150.7 150.9 150.6 Utilization (level, percent) 1979 86.6 87.1 87.1 86.1 86.8 86.6 85.8 85.2 85.1 85.3 84.7 84.3 86.9 86.5 85.4 84.7 85.9 1980 84.4 84.3 84.1 82.1 79.8 78.7 78.0 78.8 80.0 80.4 81.6 81.8 84.3 80.2 78.9 81.3 81.2 1981 81.0 81.2 81.5 80.7 81.3 81.6 82.2 81.6 80.7 79.9 78.5 77.3 81.2 81.2 81.5 78.6 80.6 1982 76.0 77.4 76.7 75.9 75.1 74.7 73.9 73.5 72.6 71.8 71.5 70.5 76.7 75.2 73.3 71.3 74.1 1983 72.3 72.0 72.6 73.4 74.2 74.5 75.8 76.8 78.0 78.4 78.2 78.6 72.3 74.0 76.9 78.4 75.4 1984 80.0 79.7 80.4 80.6 80.8 81.0 80.9 80.7 80.5 80.0 79.9 79.3 80.1 80.8 80.7 79.7 80.3 1985 79.5 80.0 80.1 80.0 80.0 79.8 79.3 79.6 80.0 79.1 79.2 79.6 79.9 79.9 79.6 79.3 79.7 1986 80.1 79.4 78.5 79.0 78.7 78.5 78.4 78.5 78.3 79.0 79.3 80.0 79.3 78.7 78.4 79.4 79.0 1987 79.4 80.2 80.5 80.8 81.1 81.7 82.1 82.2 81.9 83.0 83.2 83.5 80.0 81.2 82.1 83.2 81.6 1988 83.6 83.7 83.7 84.0 83.8 83.9 84.3 84.6 84.3 84.6 85.0 85.3 83.7 83.9 84.4 85.0 84.2 1989 85.7 85.0 85.6 85.6 84.9 84.6 83.6 83.9 83.5 83.2 83.3 83.4 85.4 85.0 83.7 83.3 84.4 1990 83.0 83.3 83.7 83.1 83.3 83.1 83.0 83.0 83.0 82.4 81.1 80.5 83.3 83.2 83.0 81.4 82.7 1991 80.0 79.2 78.4 78.6 79.1 80.0 80.0 79.9 80.6 80.4 80.2 79.5 79.2 79.2 80.2 80.0 79.7 1992 79.2 79.5 80.1 80.5 80.6 80.3 80.9 80.4 80.5 80.8 81.0 81.0 79.6 80.5 80.6 80.9 80.4 1993 81.2 81.4 81.4 81.5 81.0 81.0 81.1 80.8 81.4 81.5 81.8 82.2 81.3 81.2 81.1 81.8 81.3 1994 82.2 82.3 82.7 82.8 83.1 83.3 83.3 83.3 83.2 83.5 83.7 84.2 82.4 83.1 83.3 83.8 83.1 1995 84.2 83.9 83.6 83.1 83.1 83.1 82.4 83.2 83.1 82.6 82.5 82.3 83.9 83.1 82.9 82.5 83.1 1996 81.7 82.4 82.0 82.5 82.8 83.0 82.8 82.9 83.0 82.6 83.1 83.2 82.1 82.8 82.9 83.0 82.7 1997 83.2 83.7 83.3 83.5 83.3 83.3 83.3 83.7 84.0 84.2 84.2 83.8 83.4 83.4 83.7 84.1 83.6 1998 83.7 83.2 83.2 83.3 83.2 82.2 81.4 82.6 82.0 82.2 81.5 81.1 83.4 82.9 82.0 81.6 82.5 1999 81.3 81.2 81.2 81.0 81.1 80.9 81.1 81.3 81.1 81.6 81.6 81.8 81.2 81.0 81.2 81.7 81.3 2000 81.6 81.8 81.8 81.9 82.2 82.3 81.7 81.6 81.5 81.1 80.7 80.2 81.7 82.1 81.6 80.7 81.5 2001 79.6 79.5 79.2 78.8 78.7 78.1 78.3 78.0 77.1 76.4 76.1 76.0 79.4 78.5 77.8 76.2 78.0 NOTE. See also general note to table A.l. 1. Annual averages of industrial production are calculated from indexes that Excludes computers, communications equipment, and semiconductors and are not seasonally adjusted. related electronic components. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin • March 2002 A.4. Revised data for industrial production, capacity, and utilization for manufacturing industries excluding selected high-technology industries Seasonally adjusted data except as noted Quarter Annual Aug. avg.1 1 2 3 4 Industrial production (percent change) 1979 -.7 .7 .3 -1.7 1.4 .0 -.6 -1.1 -.1 .4 -.9 -.2 1.9 -1.2 -3.8 -2.9 2.2 1980 .0 .1 -.6 -2.4 -3.4 -1.5 -.9 1.7 1.6 1.0 1.7 .2 -2.3 -19.9 -5.6 16.5 -5.4 1981 -.6 .4 .2 .1 .7 -.3 .5 -.9 -1.1 -1.2 -1.8 -2.0 1.8 2.8 -1.7 -15.0 .5 1982 -2.1 2.7 -.8 -.9 -.5 -.1 -1.0 -.3 -.9 -1.4 -.4 -1.1 -9.4 -3.4 -6.7 -10.2 -7.4 1983 3.1 .3 1.3 1.0 1.4 .6 1.5 1.1 2.1 .4 .1 -.1 12.1 13.2 16.3 9.1 4.7 1984 2.3 .4 .6 .3 .1 .5 .2 -.1 -.3 .0 .0 -.4 11.6 4.0 1.4 -1.3 8.1 1985 .0 .6 .6 .1 .5 -.1 -.5 .9 .4 -.8 .8 -.1 1.2 4.0 1.4 1.1 1.5 1986 1.6 -.6 -1.0 1.5 -.2 -.1 -.1 .6 -.1 .9 .3 1.3 4.4 1.9 .3 6.6 2.5 1987 -1.0 1.6 .1 .6 .4 .9 .6 -.2 .0 1.3 .5 .5 4.1 7.1 4.8 6.9 4.8 1988 -.2 .2 .1 .8 -.4 .0 .6 .1 .3 .4 .8 .5 1.8 2.6 2.9 5.3 4.0 1989 .9 -1.1 .8 .0 -.7 -.1 -1.0 .3 -.3 -.4 .2 -.1 4.1 -1.7 -5.0 -1.8 1.4 1990 -.1 .9 .4 -.7 .4 -.2 .1 .2 .0 -.7 -1.4 -.7 2.7 -.1 .4 -7.1 -.9 1991 -.8 -.8 -1.2 .4 .7 1.5 .2 .1 1.2 -.2 -.3 -.6 -10.3 1.0 7.8 1.0 -2.8 1992 -.2 .6 .9 .6 .3 -.1 .8 -.4 .2 .3 .5 -.1 .1 6.4 2.8 2.3 2.9 1993 .8 .1 .1 .5 -.4 -.1 .2 -.4 1.0 .3 .5 .7 4.0 1.3 .3 5.6 2.8 1994 .0 .4 .8 .6 .6 .1 .4 .4 .1 .7 .6 .8 4.8 7.0 3.8 6.5 4.6 1995 .3 -.4 -.1 -.5 -.1 .4 -.9 1.0 .4 -.4 -.1 -.1 2.8 -2.1 .5 .4 2.5 1996 -.5 1.0 -.5 1.0 .5 .7 .3 .3 .3 -.4 .8 .5 -.4 6.7 4.9 2.6 1.9 1997 .2 .9 -.1 .3 .1 .5 .1 1.1 .5 .6 .4 -.1 5.7 3.1 5.7 6.3 4.6 1998 .5 -.3 .2 .6 .1 -1.0 -.7 2.1 -.5 .7 -.4 -.1 1.7 1.4 -.4 2.8 2.9 1999 .3 .2 .0 -.1 .5 -.2 .0 .7 -.1 .6 .4 .2 .6 .8 1.8 4.5 1.4 2000 -.2 .1 .4 -.1 .2 .3 -.7 -.3 .0 -.6 -.7 -.8 1.0 2.2 -2.5 -5.6 1.1 2001 -.7 -.2 -.3 -.5 .0 -.8 .5 -.5 -1.1 -.9 -.2 -.1 -6.3 -3.9 -3.2 -7.7 -4.6 Industrial production (index) 1999 121.5 121.8 121.8 121.7 122.2 122.0 122.0 122.8 122.7 123.5 123.9 124.2 121.7 121.9 122.5 123.9 122.5 2000 123.9 124.1 124.6 124.5 124.8 125.2 124.3 124.0 123.9 123.2 122.4 121.3 124.2 124.9 124.1 122.3 123.9 2001 120.5 120.4 120.0 119.4 119.4 118.5 119.0 118.4 117.0 116.0 115.8 115.6 120.3 119.1 118.1 115.8 118.2 Capacity (index) 1999 151.1 151.4 151.7 152.0 152.2 152.5 152.7 152.9 153.1 153.3 153.4 153.6 151.4 152.2 152.9 153.4 152.5 2000 153.8 153.9 154.1 154.2 154.3 154.5 154.6 154.7 154.8 154.9 155.0 155.0 153.9 154.3 154.7 155.0 154.5 2001 155.1 155.2 155.2 155.2 155.3 155.3 155.3 155.3 155.3 155.4 155.4 155.4 155.1 155.3 155.3 155.4 155.3 Utilization (level, percent) 1979 86.3 86.7 86.8 85.2 86.2 86.0 85.4 84.2 84.0 84.2 83.3 83.0 86.6 85.8 84.5 83.5 85.1 1980 82.8 82.8 82.2 80.1 77.2 75.9 75.1 76.3 77.4 78.0 79.2 79.2 82.6 77.8 76.3 78.8 78.8 1981 78.6 78.8 78.9 78.8 79.3 78.9 79.2 78.4 77.5 76.5 75.0 73.4 78.8 79.0 78.4 75.0 77.8 1982 71.9 73.8 73.2 72.5 72.0 71.9 71.1 70.9 70.2 69.2 68.8 68.0 72.9 72.1 70.7 68.7 71.1 1983 70.1 70.3 71.2 71.9 72.9 73.3 74.4 75.2 76.8 77.0 77.1 77.0 70.5 72.7 75.5 77.1 73.9 1984 78.7 79.0 79.3 79.4 79.3 79.6 79.6 79.4 79.0 78.9 78.8 78.4 79.0 79.4 79.3 78.7 79.1 1985 78.2 78.5 78.8 78.7 78.9 78.7 78.1 78.7 78.8 78.0 78.5 78.2 78.5 78.8 78.5 78.2 78.5 1986 79.4 78.8 78.0 79.0 78.8 78.6 78.4 78.8 78.6 79.2 79.3 80.2 78.7 78.8 78.6 79.6 78.9 1987 79.3 80.5 80.5 80.9 81.1 81.8 82.2 82.0 81.9 82.9 83.2 83.6 80.1 81.3 82.0 83.2 81.7 1988 83.3 83.5 83.4 84.0 83.6 83.6 84.1 84.1 84.3 84.5 85.1 85.4 83.4 83.8 84.2 85.0 84.1 1989 86.1 85.0 85.5 85.3 84.5 84.3 83.2 83.4 82.9 82.5 82.5 82.3 85.5 84.7 83.2 82.4 83.9 1990 82.1 82.8 83.0 82.3 82.4 82.1 82.1 82.1 81.9 81.3 80.0 79.3 82.6 82.3 82.0 80.2 81.8 1991 78.5 77.8 76.8 77.0 77.5 78.5 78.6 78.6 79.5 79.3 78.9 78.4 77.7 77.7 78.9 78.9 78.3 1992 78.2 78.6 79.2 79.6 79.7 79.6 80.1 79.7 79.8 79.9 80.1 80.0 78.7 79.6 79.9 80.0 79.5 1993 80.5 80.4 80.4 80.7 80.3 80.1 80.2 79.7 80.5 80.5 80.8 81.3 80.5 80.4 80.1 80.9 80.5 1994 81.1 81.3 81.8 82.1 82.5 82.4 82.5 82.7 82.6 83.0 83.3 83.8 81.4 82.3 82.6 83.3 82.4 1995 83.8 83.3 83.0 82.5 82.3 82.4 81.5 82.1 82.2 81.7 81.4 81.2 83.4 82.4 81.9 81.4 82.3 1996 80.6 81.2 80.6 81.3 81.5 81.8 81.9 82.0 82.0 81.5 82.0 82.2 80.8 81.5 82.0 81.9 81.6 1997 82.2 82.8 82.5 82.5 82.3 82.5 82.4 83.0 83.1 83.3 83.4 82.9 82.5 82.5 82.8 83.2 82.7 1998 83.0 82.5 82.3 82.5 82.2 81.1 80.3 81.7 81.0 81.3 80.7 80.4 82.6 81.9 81.0 80.8 81.6 1999 80.4 80.4 80.2 80.0 80.3 80.0 79.9 80.3 80.2 80.6 80.8 80.8 80.4 80.1 80.1 80.7 80.3 2000 80.6 80.6 80.9 80.8 80.9 81.1 80.4 80.1 80.1 79.5 79.0 78.3 80.7 80.9 80.2 78.9 80.2 2001 77.7 77.6 77.4 76.9 76.9 76.3 76.6 76.2 75.3 74.7 74.5 74.4 77.5 76.7 76.1 74.5 76.2 NOTE. See also general note to table A.L. 1. Annual averages of industrial production are calculated from indexes that Excludes computers, communications equipment, and semiconductors and are not seasonally adjusted, related electronic components. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: The 2001 Annual Revision 183 A.5. Rates of change in industrial production, by market and industry group, 1997-2001 Difference between rates of change: Revised rate of change revised minus earlier IItteemm SSIICC (percent) (percentage points) ccooddee'' 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 Total index 7.4 3.5 4.3 2.6 -6.0 .2 .3 -.7 -1.6 -.1 MARKET GROUP Products 6.0 2.9 2.6 1.8 -5.3 .0 -.3 -.8 -1.2 .3 Consumer goods 3.7 .2 2.5 .7 -2.0 -.3 .0 -.6 .1 .6 Durable 7.6 5.6 6.7 -4.2 -2.7 -.8 1.3 -1.5 .2 -.1 Automotive products 8.8 7.4 5.8 -7.3 3.7 -1.8 2.1 2.5 -.4 .4 Home electronics 19.5 12.4 30.8 7.4 -24.3 -.3 .7 -22.6 4.5 -3.5 Appliances, furniture, and carpeting 4.4 6.0 2.6 -2.0 -1.9 .2 -.9 --33..44 --..77 --..55 Miscellaneous 4.4 -.4 3.8 -2.0 -11.8 -.1 2.1 -.8 2.2 -2.8 Nondurable 2.6 -1.3 1.3 2.2 -1.8 -.1 -.4 -.4 .2 .8 Non-energy 2.8 -1.0 1.2 1.1 -.8 -.1 -.5 -.4 -.1 1.1 Foods and tobacco 1.9 -.1 .7 .4 -1.4 -.3 -.7 .4 -.5 .5 Clothing -3.3 -6.4 -2.8 -8.5 -11.3 -.2 1.8 2.1 -4.1 2.0 Chemical products 4.9 2.5 4.4 5.4 6.3 -.5 -.8 -1.4 2.9 2.8 Paper products 6.5 -6.1 .1 2.4 -5.1 1.3 -.8 -2.5 -.8 .9 Energy 1.6 -3.4 2.3 8.6 -7.0 -.2 .6 -.3 1.9 -1.0 Business equipment 14.0 8.4 4.4 5.8 -12.9 .8 -.6 -1.2 -5.2 -1.2 Transit 25.5 15.4 -3.9 -7.5 -13.1 2.1 2.5 5.0 1.3 -.2 Information processing 17.9 14.4 15.6 16.4 -12.4 1.4 -2.4 -5.4 -6.7 -3.3 Industrial and other 5.8 -.5 -1.8 3.0 -13.4 -.3 -.4 -.2 -5.6 -.1 Defense and space equipment -2.5 5.5 -7.6 -2.2 -.4 2.5 -2.7 -4.6 1.1 -1.3 Construction supplies 4.0 6.6 3.9 .5 -4.6 .1 -.9 -.6 .2 .9 Business supplies 4.2 1.3 1.4 .9 -6.3 -.6 -.5 -.8 -.3 .9 Materials 9.5 4.5 7.2 3.9 -6.9 .1 .8 -.8 -2.4 -.5 Durable 14.3 8.8 10.4 7.5 -8.6 .2 1.6 -.5 -4.6 -.7 Consumer parts 8.5 3.6 5.9 -2.1 -4.8 -1.8 3.5 -1.2 -2.3 2.9 Equipment parts 28.6 22.0 19.7 25.1 -11.0 2.5 1.4 -2.3 -11.0 -3.7 Other 4.7 .2 4.4 -3.1 -8.1 -.7 .7 .9 -1.3 .8 Nondurable 5.7 -3.3 3.9 -4.7 -5.9 .5 -.5 -1.7 .5 1.3 Textile 4.9 -6.2 4.6 -12.8 -12.0 1.5 2.2 5.9 -3.2 3.3 Paper 4.3 -2.7 4.5 -4.5 -1.9 -.3 .2 .3 .0 .9 Chemical 6.5 -5.6 5.3 -4.2 -7.8 .2 -1.6 -4.2 2.0 1.0 Energy .1 -.4 .6 1.6 -3.4 .0 .3 .1 .2 -2.4 INDUSTRY GROUP Manufacturing 8.3 4.3 4.8 2.3 -6.3 .3 .3 -.8 -1.9 .1 Durable 11.9 8.4 6.9 4.8 -8.5 .4 .4 -1.3 -3.6 -.5 Lumber and products 24 2.8 5.6 1.8 -6.8 -.3 -.9 .1 1.3 .6 -.3 Furniture and fixtures 25 8.1 6.1 5.0 .8 -7.4 .2 -.2 1.9 -4.8 .0 Stone, clay, and glass products 32 2.5 5.8 3.2 -.9 -3.7 -.9 .2 1.0 -1.8 .5 Primary metals 33 5.8 -3.5 6.7 -5.2 -13.2 -.2 .0 -1.3 .5 -2.1 Fabricated metals 34 6.5 1.7 1.2 2.2 -7.3 .3 .2 -.5 1.3 1.5 Industrial machinery and equipment .. 35 7.8 9.1 7.1 7.5 -12.0 .5 -2.5 -6.5 -6.9 1.4 Electrical machinery 36 31.3 22.2 23.7 27.3 -14.7 2.9 1.8 -1.5 -11.7 -4.6 Motor vehicles and parts 371 14.3 6.7 7.5 -8.0 -.3 -1.7 3.5 1.6 -1.6 .8 Aerospace and miscellaneous transportion equipment 372-6,9 13.7 11.3 -8.9 .2 -9.3 .8 .9 2.7 .5 .0 Instruments 38 2.9 4.2 .6 1.3 -5.0 .0 .3 -3.9 -.6 -2.1 Miscellaneous 39 2.0 -.5 4.8 -1.0 -9.1 -1.1 -1.2 -1.9 -1.0 -1.8 Nondurable 3.9 -.7 2.1 -.7 -3.6 -.3 -.3 -.5 .0 1.0 Food and tobacco products 20,21 2.6 .1 .7 .4 -1.5 -.1 -.7 .4 -.4 .5 Textile mill products 22 .7 -6.1 .4 -10.6 -10.6 -.8 .4 .6 -2.7 3.3 Apparel products 23 1.8 -3.1 .3 -6.7 -11.1 2.0 3.3 4.3 -1.4 -.4 Paper and products 26 4.5 -.5 2.3 -3.0 -4.3 -.4 -.4 -.6 .1 1.2 Printing and publishing 27 5.1 -2.4 .7 .5 -7.7 .0 -.6 -1.1 -1.0 1.3 Chemicals and products 28 4.8 -.6 4.1 .8 -.6 -.5 -.7 -2.6 2.2 1.9 Petroleum products 29 3.0 1.3 -.6 2.0 -1.9 -.1 -.8 -.7 .8 -.4 Rubber and plastics products 30 6.1 3.0 5.9 -2.8 -4.9 -.9 1.4 2.3 -.9 .1 Mining 10-14 1.4 -5.3 -.2 1.7 -1.7 -.1 .1 .3 .3 -2.2 Utilities 449911,,22,,33pptt 2.0 -.6 2.2 6.8 -5.9 -.3 .7 -.1 .2 -.7 Electric 2.8 1.8 1.8 5.2 -3.9 -.4 .3 .1 -1.1 -.1 Gas -1.4 -11.5 4.7 12.9 -12.5 .1 .4 .1 5.4 -3.1 NOTE. Rates of change are calculated as the percent change in the seasonally 1. Standard Industrial Classification; see Executive Office of the President, adjusted index from the fourth quarter of the previous year to the fourth quarter Office of Management and Budget, Standard Industrial Classification Manual, of the year specified. For 2001, the differences between rates of change are 1987 (U.S. Government Printing Office, 1987). calculated from annualized rates between the fourth quarter of 2000 and the pt. Part of classification. third quarter of 2001. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 Federal Reserve Bulletin • March 2002 A.6. Rates of change in industrial production, special aggregates and selected detail, 1997-2001 Difference between rates of change: Revised rate of change revised minus earlier MMaarrkkeett ggrroouupp cc SS oo II dd CC ee11 (percent) (percentage points) 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 Total index 7.4 3.5 4.3 2.6 -6.0 .2 .3 -.7 -1.6 -.1 ffifn-jP Energy 1.4 -2.5 1.2 4.5 -4.0 -.2 .6 .1 .4 -1.5 Consumer products 1.6 -3.4 2.3 8.6 -7.0 -.2 .6 -.3 1.9 -1.0 Commercial products 5.0 -.1 .7 7.3 .9 .1 .4 -.3 • 1 .9 Oil and gas drilling 8.7 -26.3 5.7 19.1 -6.8 .0 .1 .1 .2 -.2 Converted fuel 1.2 -.2 2.7 5.6 -8.0 .8 .0 -.1 .4 .3 Primary materials -.5 -.5 -.6 -.2 -1.4 -.4 .5 .1 .0 -3.0 Non-energy 8.4 4.3 4.8 2.3 -6.3 .3 .3 -.8 -1.9 .2 Selected high-technology industries 40.2 35.8 34.0 39.5 -15.9 4.5 -1.4 -6.6 -15.8 -5.1 Computers and office equipment 357 24.5 40.5 33.0 33.4 -10.4 3.0 -13.5 -21.3 -8.7 -1.5 Communications equipment 366 27.6 6.5 21.1 25.4 -24.3 3.0 -2.5 7.7 -10.2 -9.0 Semiconductors and related electronic components 3672-9 55.0 50.5 41.1 48.6 -14.4 6.1 4.9 -6.7 -24.8 -43 Excluding selected hightechnology industries 5.3 1.4 2.0 -1.4 -5.3 -.3 .1 -.3 -.7 .8 Motor vehicles and parts 371 ' ' 14.3 6.7 7.5 -8.0 -.3 -1.7 3.5 1.6 -1.6 .8 Motor vehicles 3711,3 14.2 9.0 6.3 -11.4 2.1 .0 2.1 4.2 .9 -1.0 Motor vehicle parts 3714 14.1 3.7 9.2 -1.2 -2.1 -4.0 5.4 -1.6 -4.5 2.1 Excluding motor vehicles and parts .. 4.6 1.0 1.5 -.8 -5.7 -.2 -.1 -.5 -.6 .7 Consumer goods 3.2 -.5 1.9 .5 -2.0 -.1 -.2 -.6 .1 .6 Business equipment 9.0 4.1 -3.1 1.9 -11.9 -.3 .9 -.8 -3.4 .4 Business supplies 4.0 1.7 1.6 -.5 -8.1 -.8 -.7 -1.0 -.4 1.1 Materials 5.2 -.8 3.3 -2.7 -6.9 -.2 .2 .0 -.4 .7 Special aggregates Measures excluding selected hightechnology industries Total industry 4.7 .9 1.8 -.5 -5.1 -.3 .2 -.3 -.5 .4 Manufacturing 5.2 1.4 1.9 -1.3 -5.3 -.2 .2 -.4 --..77 ..77 Durable 6.5 3.3 1.8 -1.8 -7.0 -.3 .7 -.4 --11..44 ..55 Industrial machinery 351-6,8,9 3.4 .5 -.4 .1 -12.5 -.2 -.1 -1.6 -4.8 2.5 Electrical machinery 361-5,9,71 5.2 .9 3.9 -1.2 -8.4 -.2 1.2 -2.6 -1.2 -1.2 Measures excluding motor vehicles and parts Total industry 7.0 3.3 4.1 3.4 -6.3 .2 .1 -.9 -1.5 -.2 Manufacturing 7.9 4.2 4.5 3.2 -6.8 .4 .1 -1.0 -1.8 .0 Durable 11.6 8.6 6.8 6.8 -9.7 .7 .0 -1.8 -3.7 -.8 Primary processing 2 11.0 5.7 8.0 3.7 -7.1 .5 1.3 -.9 -1.9 .0 Advanced processing3 6.6 3.5 2.8 1.4 -5.8 .2 -.4 -.9 -1.9 .3 NOTE. See also general note to table A.5. 3. Advanced-processing manufacturing includes foods, tobacco products, 1. Standard Industrial Classification; see table A.5, note 1. apparel products, printing and publishing, chemical products and other agricul- 2. Primary-processing manufacturing includes textile mill products; paper tural chemicals, leather and products, furniture and fixtures, industrial and and products; industrial chemicals, synthetic materials, and fertilizers; petro- commercial machinery and computer equipment, electrical machinery except leum products; rubber and plastics products; lumber and products; primary semiconductors and related electronic components, transportation equipment metals; fabricated metals; stone, clay, and glass products; semiconductors and except motor vehicle parts, instruments, and miscellaneous manufactures. related electronic components; and motor vehicle parts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: The 2001 Annual Revision 185 A.7. Capacity utilization rates, by industry group, 1967-2001 Difference between rates: Revised rate revised minus earlier (percent of capacity, seasonally adjusted) SSIICC (percentage points) IItteemm ccooddee11 1967-2000 1988-89 1990-91 1999:Q4 2000:Q4 2001 :Q4 1999:Q4 2000:Q4 2001:Q3 avg. high low Total index 82.1 85.4 78.1 81.8 80.7 74.6 .2 -.6 -.2 Manufacturing 81.1 85.7 76.6 81.0 79.1 72.9 .1 -1.2 -.4 Durable manufacturing 79.6 84.6 73.1 81.2 78.6 69.8 .2 -2.0 -1.1 Lumber and products 24 82.6 93.6 75.5 84.7 77.3 76.3 1.4 1.1 .6 Furniture and fixtures 25 81.4 86.6 72.5 80.5 78.7 72.5 1.7 -1.4 -.4 Stone, clay, and glass products 32 78.9 83.5 69.7 85.2 82.3 77.8 -.1 -1.7 -1.2 Primary metals 33 81.7 92.7 73.7 88.5 83.6 73.0 -.1 .6 -.6 Fabricated metal products 34 78.0 82.0 71.9 76.7 76.3 70.3 -.2 .6 1.9 Industrial machinery and equipment 35 81.3 85.4 72.3 79.1 78.4 67.2 -.7 -1.6 Electrical machinery 36 81.4 84.0 75.0 85.0 82.8 64.1 1.6 -4.3 -2.9 Motor vehicles and parts 371 77.1 89.1 55.9 84.8 76.3 74.1 1.9 .3 •1 Aerospace and miscellaneous transportation equipment 372-6,9 75.2 87.3 79.2 74.7 74.0 67.3 1.9 1.2 1.3 Instruments 38 81.3 81.4 77.2 76.4 76.6 72.7 -4.0 -3.9 -4.6 Miscellaneous manufactures 39 76.0 79.0 71.7 79.7 78.4 71.1 -1.9 -2.2 -2.3 Nondurable manufacturing 83.2 87.3 80.7 80.7 79.8 77.1 -.3 .0 .7 Foods and textiles 20,21 83.2 85.9 81.6 80.2 80.4 79.3 -.3 -.9 -.5 Textile mill products 22 85.6 90.4 77.7 84.6 77.4 71.6 2.2 .3 2.2 Apparel products 23 80.9 85.1 75.5 77.3 72.2 65.6 5.6 2.8 2.8 Paper and products 26 88.6 93.5 85.0 84.9 81.5 77.5 -1.8 -1.8 -.8 Printing and publishing 27 85.2 91.7 79.6 77.8 78.5 72.9 -2.9 -3.5 -2.0 Chemicals and products 28 79.3 86.2 79.3 77.6 77.7 76.9 -.8 2.1 3.0 Petroleum products 29 87.3 88.5 85.1 93.0 94.5 92.1 -.1 .2 -.2 Rubber and plastics products 30 84.7 89.6 77.4 87.1 82.0 76.5 1.8 1.1 1.1 Mining 87.6 88.0 87.0 87.1 90.3 88.4 2.5 3.8 1.2 Utilities 87.7 92.6 83.4 90.1 93.6 83.7 .9 1.6 .4 mBBjjj Special aggregates Selected high-technology industries 80.5 81.9 72.4 83.2 81.2 60.5 2.4 -3.9 -2.3 Computers and office equipment 357 81.1 86.9 66.9 77.4 75.0 61.3 .9 -3.2 -.8 Communications equipment 366 80.5 84.8 73.4 81.6 81.6 57.9 6.4 -5.6 -3.9 Semiconductors and related electronic components 3672-9 80.0 81.1 75.6 86.7 83.6 61.1 .7 -4.3 -1.4 Measures excluding selected hightechnology industries s m Total industry 82.2 85.7 78.4 81.7 80.7 76.2 .0 .0 .3 Manufacturing 81.1 86.1 76.8 80.7 78.9 74.5 -.2 -.6 .1 Industrial machinery 351-6,8,9 81.2 85.5 74.0 79.5 79.6 69.7 -1.3 -4.6 -1.5 Electrical machinery 361-5,9,71 83.4 87.5 74.3 85.1 81.8 74.3 -.3 -1.0 -2.3 Primary processing2 82.2 88.3 76.7 84.2 81.1 73.3 -.4 -1.7 -.6 Advanced processing3 80.5 84.2 76.6 79.0 77.9 72.7 -.3 -1.7 -1.0 NOTE. The "high" column refers to periods in which utilization generally fabricated metals; stone, clay, and glass products; semiconductors and related peaked; the "low" column refers to recession years in which utilization gener- electronic components; and motor vehicle parts. ally bottomed out. The monthly highs and lows are specific to each series, and 3. Advanced-processing manufacturing includes foods, tobacco products, all did not occur in the same month. apparel products, printing and publishing, chemical products and other agricul- 1. Standard Industrial Classification; see table A.5, note 1. tural chemicals, leather and products, furniture and fixtures, industrial and 2. Primary-processing manufacturing includes textile mill products; paper commercial machinery and computer equipment, electrical machinery except and products; industrial chemicals, synthetic materials, and fertilizers; petroleum semiconductors and related electronic components, transportation equipment products; rubber and plastics products; lumber and products; primary metals; except motor vehicle parts, instruments, and miscellaneous manufactures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 Federal Reserve Bulletin • March 2002 A.8. Rates of change in capacity, by industry group. 1997-2001 Difference between rates of change: Revised rate of change revised minus earlier (percent) (percentage points) 2000 2001 1997 1998 1999 2000 2001 4.0 1.7 -.1 -.7 -.5 Manufacturing 4.7 1.6 .5 -.1 -.6 -.3 -1.0 Durable manufacturing 8.1 3.0 .9 .2 -1.7 -.7 -1.9 Nondurable manufacturing .4 -.2 -.1 -.9 .4 -.5 -.1 Mining -1.9 .4 -.6 -.5 -.9 -1.1 1.8 Utilities 2.9 5.2 -.4 -1.0 .1 -.5 1.1 Special aggregates Slitf Selected high-technology industries 42.9 4.1 -2.8 -9.2 -4.1 -8.6 Manufacturing excluding selected high-technology industries .0 -.1 .0 -.3 -.3 Primary processing 9.4 9.8 5.0 1.0 .4 .1 -.3 -1.4 Advanced processing2 .. 5.6 5.5 4.2 .7 -.2 -1.0 -.1 -.9 NOTE. See also general note to table A.5. 2. Advanced-processing manufacturing includes foods, tobacco products, 1. Primary-processing manufacturing includes textile mill products; paper apparel products, printing and publishing, chemical products and other agriculand products; industrial chemicals, synthetic materials, and fertilizers; petro- tural chemicals, leather and products, furniture and fixtures, industrial and leum products; rubber and plastics products; lumber and products; primary commercial machinery and computer equipment, electrical machinery except metals; fabricated metals; stone, clay, and glass products; semiconductors and semiconductors and related electronic components, transportation equipment related electronic components; and motor vehicle parts. except motor vehicle parts, instruments, and miscellaneous manufactures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization: The 2001 Annual Revision 187 A.9. Annual proportions in industrial production, by market and industry group, 1994-01 Item c S od IC e 1 1994 1995 1996 1997 1998 1999 2000 2001 Total index 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 MARKET GROUP Products 60.2 59.5 59.9 60.6 61.5 60.8 59.9 61.9 Consumer goods 28.6 28.3 28.4 28.3 28.7 28.6 28.4 30.4 Durable 6.2 6.1 6.3 6.3 6.3 6.7 6.5 6.5 Automotive products 2.7 2.7 2.8 2.9 2.9 3.3 3.4 3.5 Home electronics .5 .5 .5 .5 .5 .5 .4 .3 Appliances, furniture, and carpeting 1.4 1.3 1.3 1.3 1.4 11..33 11..33 11..33 Miscellaneous 1.6 1.6 1.6 1.6 1.6 1.5 1.5 1.4 Nondurable 22.4 22.2 22.1 22.0 22.3 21.9 21.8 23.9 Non-energy 19.3 19.1 19.0 19.2 19.5 18.8 18.6 20.6 Foods and tobacco 9.7 9.7 9.6 9.7 10.1 10.0 10.1 11.2 Clothing 2.3 2.1 2.0 1.9 1.7 1.5 1.4 1.3 Chemical products 4.5 4.5 4.5 4.6 4.7 4.5 4.3 5.1 Paper products 2.8 2.8 2.8 3.0 3.0 2.8 2.8 3.0 Energy 3.1 3.1 3.1 2.9 2.8 3.1 3.2 3.4 Business equipment 13.3 13.4 13.7 14.3 14.7 14.2 13.7 13.1 Transit 2.4 2.3 2.3 2.6 3.1 3.2 3.1 2.9 Information processing 5.2 5.2 5.4 5.6 5.6 5.5 5.5 5.0 Industrial and other 5.6 5.9 6.0 6.0 6.0 5.4 5.2 5.1 Defense and space equipment 2.7 2.5 2.3 2.1 2.2 2.1 1.9 2.0 Construction supplies 5.7 5.6 5.7 5.9 6.2 6.3 6.4 6.6 Business supplies 9.0 8.9 8.9 8.9 8.9 8.8 8.7 8.9 Materials 39.8 40.5 40.1 39.4 38.5 39.2 40.1 38.1 Durable 22.2 22.8 23.0 23.2 23.1 23.2 23.5 22.4 Consumer parts 4.6 4.5 4.5 4.5 4.6 4.8 4.7 4.6 Equipment parts 7.6 8.2 8.4 8.4 8.5 8.5 9.0 88..11 Other 9.9 10.1 10.2 10.2 10.1 9.9 9.7 99..66 Nondurable 9.4 9.3 8.5 8.6 8.3 8.0 7.9 7.6 Textile 1.1 1.0 1.0 1.0 .9 .9 .8 .8 Paper 2.0 2.1 1.7 1.7 1.7 1.7 1.6 1.6 Chemical 4.2 4.1 3.9 4.0 3.8 3.6 3.7 3.5 Energy 8.3 8.4 8.6 7.7 7.1 8.0 8.8 8.1 INDUSTRY GROUP Manufacturing 86.5 86.6 86.5 87.6 88.5 87.7 86.5 86.7 Durable 46.2 46.6 47.3 48.1 48.9 48.8 48.3 46.8 Lumber and products 24 2.2 2.1 2.1 2.1 2.1 2.3 2.2 2.2 Furniture and fixtures 25 1.3 1.4 1.4 1.5 1.6 1.6 1.5 1.6 Stone, clay, and glass products 32 2.2 2.2 2.3 2.3 2.4 2.5 2.5 2.7 Primary metals 33 3.5 3.5 3.5 3.6 3.4 3.3 3.2 2.9 Fabricated metals 34 5.2 5.3 5.4 5.6 5.8 5.7 5.8 5.8 Industrial machinery and equipment 35 8.4 8.8 9.0 9.1 9.0 8.4 8.2 7.7 Electrical machinery 36 7.8 8.3 8.5 8.7 8.7 8.7 9.1 7.8 Motor vehicles and parts 371 5.5 5.4 5.4 5.6 5.6 6.4 6.5 6.4 Aerospace and miscellaneous transportion equipment 372-6,9 3.8 3.5 3.4 3.6 4.3 4.1 3.9 4.1 Instruments 38 4.9 4.8 4.8 4.7 4.7 4.6 4.4 4.5 Miscellaneous 39 1.3 1.3 1.3 1.3 1.3 1.2 1.2 1.2 Nondurable 40.3 40.0 39.2 39.6 39.6 38.9 38.2 39.9 Food and tobacco products 20,21 10.5 10.5 10.3 10.3 10.8 10.6 10.7 11.8 Textile mill products 22 1.8 1.7 1.6 1.5 1.5 1.4 1.3 1.2 Apparel products 23 2.1 2.0 1.9 1.9 1.7 1.7 1.5 1.5 Paper and products 26 3.8 3.9 3.5 3.5 3.5 3.4 3.3 3.3 Printing and publishing 27 6.6 6.6 6.6 6.9 6.8 6.5 6.4 6.6 Chemicals and products 28 10.0 9.9 9.7 9.9 9.7 9.3 9.2 9.7 Petroleum products 29 1.5 1.5 1.7 1.6 1.6 1.9 1.9 1.9 Rubber and plastics products 30 3.8 3.7 3.7 3.8 3.9 3.9 3.8 3.8 Mining 10,14 5.9 5.9 6.2 5.6 5.0 5.8 6.8 6.2 Utilities 449911,,22,,33,,pptt 7.6 7.5 7.3 6.8 6.5 6.4 6.7 7.1 Electric 6.0 5.9 5.8 5.5 5.3 5.2 5.2 5.6 Gas 1.6 1.6 1.5 1.3 1.1 1.3 1.5 1.5 NOTE. The IP proportion data are estimates of the industries' relative contri- 1. Standard Industrial Classification; see table A.5, note 1. bution to overall IP growth between the reference year and the following year. pt. Part of classification. For example, a 1 percent increase in durable goods manufacturing between 2000 and 2001 would account for a 0.483 percent increase in total IP. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 Announcements FEDERAL OPEN MARKET COMMITTEE quality and consistency of data collected on home DIRECTIVE mortgage loans. The amendments to Regulation C, which imple- The Federal Open Market Committee decided on ments the Home Mortgage Disclosure Act (HMDA), January 30, 2002, to keep its target for the federal require lenders to disclose pricing data on higher-cost funds rate unchanged at l3/4 percent. loans, expand the number of nondepository institu- Signs that weakness in demand is abating and tions subject to HMDA's reporting requirements, and economic activity is beginning to firm have become revise certain regulatory definitions. The amendmore prevalent. With the forces restraining the ments take effect for data collection beginning Janueconomy starting to diminish, and with the long- ary 1, 2003. The Board also requested public comterm prospects for productivity growth remaining ment with respect to certain items by April 1, 2002. favorable and monetary policy accommodative, the Regulation C requires depository and for-profit, outlook for economic recovery has become more nondepository institutions to collect, report, and dispromising. close data about applications for, and originations The degree of any strength in business capital and and purchases of, home mortgage loans and homehousehold spending, however, is still uncertain. improvement loans. Data reported include the type, Hence, the Committee continues to believe that, purpose, and amount of the loan; the race, ethnicity, against the background of its long-run goals of sex, and income of the loan applicant; and the locaprice stability and sustainable economic growth and tion of the property. of the information currently available, the risks are Data collected under Regulation C help the public weighted mainly toward conditions that may generate and regulatory agencies enforce fair lending laws and economic weakness in the foreseeable future. are used to determine whether financial institutions are serving the housing needs of their communities. The changes to Regulation C will facilitate fair PUBLICATION OF REVISIONS TO lending analysis and enhance understanding of the REGULATION C (HMDA) home mortgage market generally and the subprime market in particular. The Board took into account The Federal Reserve Board on February 7, 2002, changes in the home mortgage market, including published revisions to its Regulation C, which implegrowth in areas such as subprime lending and loan ments the Home Mortgage Disclosure Act (HMDA). preapproval programs. At the same time, the Board The Board approved the revisions at its meeting on has attempted to minimize the increase in the data January 23, 2002. The amendments take effect for collection and reporting burden by limiting prodata collection beginning January 1, 2003. posed changes to those most likely to have significant In a related action, also approved on January 23, benefit. were Board requests for public comment on the The final rule has the following stipulations: appropriate threshold for collecting price data on higher-cost loans; a proposal to require lenders to • Requires lenders to report the spread between the ask telephone applicants their race, ethnicity, and sex; annual percentage rate (APR) and the yield on the and a proposal to require lenders to report lien status comparable Treasury security for originated loans for applications and originated loans. Comment is with APRs that exceed the yield on the security by requested by April 12, 2002. a certain threshold. (The Board tentatively set the thresholds at 3 percentage points for first-lien loans and 5 percentage points for subordinate-lien loans AMENDMENTS TO DISCLOSURE REQUIREMENTS and seeks comment on the appropriateness of these OF REGULATION C (HMDA) particular thresholds.) The Federal Reserve Board approved on January 23, • Requires lenders to identify loans subject to the 2002, regulatory changes intended to improve the Home Ownership and Equity Protection Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

189 • Conforms the categories for reporting race and other financial companies, what choices consumers ethnicity to government-wide standards established face, and consumers' right to opt out of information by the Office of Management and Budget and, consis- sharing. tent with those standards, allows applicants to record The materials encourage consumers to (1) read all more than one race. privacy notices, (2) get answers to questions from • Requires lenders to report denials of applications the financial companies that provided the notices, for credit received through certain preapproval pro- (3) if applicable, decide whether to opt out, and grams and identify originated loans initiated through (4) if they want to opt out, follow the instructions preapproval programs. in the notice—and if necessary—shop around for a • Permits, but does not require, lenders to report financial institution with the privacy policy they want. requests for preapproval that the lender approves but The agencies are the Board of Governors of the that applicants do not pursue. Federal Reserve System, the Commodity Futures • Expands the coverage of nondepository lenders Trading Commission, the Federal Deposit Insurance by adding a dollar-volume threshold of $25 million to Corporation, the Federal Trade Commission, the the current loan-percentage test. National Credit Union Administration, the Office • Modifies the definitions of "refinancing" and of the Comptroller of the Currency, the Office of "home-improvement loan" to generate more consis- Thrift Supervision, and the Securities and Exchange tent, accurate, and useful data. Commission. • Requires lenders to report whether the loan Single printed copies of the brochure are free involves a manufactured home. and available upon request from the member agencies. The brochure can also be printed from The Board also seeks comment on requiring lend- www.consumer.gov or from the agencies' web sites. ers to ask telephone applicants their race, ethnicity, and sex (lenders already ask these questions in • Board of Governors of the Federal Reserve in-person, mail, and Internet applications) and on System's web site (www.federalreserve.gov/pubs/ requiring lenders to report lien status for applications privacy) and from Publications Services, Stop 127, and originated loans. Federal Reserve Board, 20th and C Streets, NW, The Board also adopted a number of clarifying and Washington, DC 20551 (202-452-3245). technical changes, in addition to reorganizing Regula- • Commodity Futures Trading Commission's web tion C to make it easier to use. site (www.cftc.gov/cftc/cftcfinancialprivacy.htm) and from the Office of Public Affairs, Three Lafayette Center, 1155 21st Street, NW, Washington, DC 20581 INTERAGENCY RELEASE OF (202-418-5080). CONSUMER GUIDE ON PRIVACY NOTICES • Federal Deposit Insurance Corporation's web site (http://www.fdic.gov/consumers/privacy/ In conjunction with National Consumer Protection privacychoices/index.html) and from the Public Week, several federal agencies released on Feb- Information Center, 801 17th Street, NW, Room ruary 6, 2002, a guide to help consumers make 100, Washington, DC 20434 (800-276-6003 or informed choices about whether to allow their per- 202-416-6940). sonal financial information to be shared. Privacy • Federal Trade Commission's web site (http:// Choices for Your Personal Financial Information www.ftc.gov) and from the Consumer Response guides consumers through the choices they face as Center, Room 130, 600 Pennsylvania Avenue, a result of the privacy provisions of the Gramm- NW, Washington, DC 20580 (877-FTC-HELP/ Leach-Bliley Act of 1999. The theme for National 877-382-4357, toll-free; TDD for the hearing Consumer Protection Week this year is "Consumer impaired: 202-326-2502). Confidential: The Privacy Story." • National Credit Union Administration's web site Federal privacy laws give consumers the right to (http://www.ncua.gov) and from the Publications prevent, or "opt out" of, some sharing of their per- Center, 1775 Duke Street, Alexandria, VA 22314 sonal financial information. These laws balance con- (703-518-6340). sumers' right to privacy with financial companies' • Office of the Comptroller of the Currency's web need to provide information for normal business site (http://www.occ.treas.gov) and from Communipurposes. cations, Mail Stop 3-2, Office of the Comptroller of The consumer information explains the privacy the Currency, 250 E Street, SW, Washington, DC notices that consumers receive from their banks and 20219 (202-874-4700). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 Federal Reserve Bulletin • March 2002 • Office of Thrift Supervision's web site (http:// BOARD DISCOUNT RATE MEETING MINUTES www.ots.treas.gov) and from Publications, Office of Thrift Supervision, 1700 G Street, NW, Washing- The Federal Reserve Board released on February 8, ton, DC 20552 (202-906-6410, OTS Publications 2002, the minutes of its discount rate meetings from Hotline). November 19, 2001, to December 11, 2001. • • Securities and Exchange Commission's web site (http://www.sec.gov) and from the Office of Investor Education and Assistance, 450 5th Street, NW, Washington, DC 20549-0213 (fax: 202-942-9634). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

191 Legal Developments ORDERS ISSUED UNDER BANK HOLDING COMPANY Wesbanco, with total consolidated assets of $2.4 billion,4 ACT controls Wesbanco Bank, which operates in West Virginia and Ohio. Wesbanco Bank is the fifth largest depository Orders Issued Under Section 3 of the Bank Holding institution in West Virginia, controlling deposits of Company Act $1.7 billion, representing approximately 8.1 percent of total deposits of insured depository institutions in the state Wesbanco, Inc. ("state deposits").5 Wesbanco Bank is the seventy-third Wheeling, West Virginia largest depository institution in Ohio, controlling deposits of $191 million, representing less than 1 percent of state Order Approving the Merger of Bank Holding deposits. Companies, Merger of Banks, and Establishment of Bancorp's only subsidiary bank, Wheeling Bank, is the Branches sixteenth largest depository institution in West Virginia, controlling total deposits of $193.8 million, representing Wesbanco, Inc. ("Wesbanco"), a bank holding company less than 1 percent of state deposits. Wheeling Bank is the within the meaning of the Bank Holding Company Act fifty-first largest insured depository institution in Ohio, ("BHC Act"), has requested the Board's approval under controlling deposits of $274.5 million, representing less section 3 of the BHC Act (12U.S.C. § 1842) to acquire than 1 percent of state deposits. American Bancorporation, Wheeling, West Virginia On consummation of the proposal, and accounting for ("Bancorp"),1 and its subsidiary bank, Wheeling National the divestiture proposed by Wesbanco, Wesbanco Bank Bank, St. Clairsville, Ohio ("Wheeling Bank").2 Wes- would become the fourth largest depository institution in banco's subsidiary state member bank, Wesbanco Bank, West Virginia, controlling deposits of approximately Wheeling, West Virginia, has requested the Board's ap- $1.8 billion, representing approximately 9 percent of state proval under section 18(c) of the Federal Deposit Insur- deposits, and would become the thirty-third largest deposiance Act (the Bank Merger Act ("BMA")) tory institution in Ohio, controlling deposits of approxi- (12 U.S.C. § 1828(c)) to merge with Wheeling Bank, with mately $465.4 million, representing less than 1 percent of Wesbanco Bank as the survivor. In addition, Wesbanco state deposits. Bank has requested the Board's approval under section 9 of the Federal Reserve Act ("FRA") (12 U.S.C. § 321) to Interstate Analysis establish branches at the locations of Wheeling Bank's branches in West Virginia, Ohio, and Pennsylvania.3 Section 3(d) of the BHC Act allows the Board to approve Notice of the proposal, affording interested persons an an application by a bank holding company to acquire opportunity to submit comments, has been published control of a bank located in a state other than the home (66 Federal Register 57,967 (2001)). In addition, as re- state of such bank holding company if certain conditions quired by the BMA, reports on the competitive effects of are met. For purposes of the BHC Act, the home state of the merger were requested from the United States Attorney Wesbanco is West Virginia,6 and Bancorp's subsidiary General and relevant banking agencies. The time for filing bank is located in West Virginia, Ohio, and Pennsylvania.7 comments has expired, and the Board has considered the The Board has reviewed the interstate banking laws of proposal and all comments received in light of the factors set forth in section 3 of the BHC Act, the BMA, and the FRA. 4. Consolidated asset data are as of June 30, 2001. 5. Deposit and ranking data are as of June 30, 2000. In this context, the term "depository institution" includes commercial banks, savings 1. AB Corporation, a wholly owned subsidiary of Wesbanco, has banks, and savings associations. requested the Board's approval under section 3 of the BHC Act to 6. See 12 U.S.C. § 1842(d). A bank holding company's home state become a bank holding company by merging with Bancorp. is the state in which the total deposits of all banking subsidiaries of AB Corporation would be merged with and into Wesbanco following such company were the largest on July 1, 1966, or the date on which its merger with Bancorp. the company became a bank holding company, whichever is later. 2. Wesbanco also has requested the Board's approval to acquire an 12 U.S.C. § 1841(o)(4)(C). option to purchase up to 19.9 percent of Bancorp's voting common 7. For purposes of section 3(d) of the BHC Act, the Board considers stock. The option would expire on consummation of the proposed a bank to be located in the states in which the bank is chartered, merger. headquartered, or operates a branch. See 12 U.S.C. §§ 1841(o)(4)-(6) 3. The branches to be established by the proposal are listed in and 1842(d)(1) and (2); NationsBank Corporation, 84 Federal Re- Appendix A. serve Bulletin 858 (1998). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 Federal Reserve Bulletin • March 2002 each state in which Wesbanco would acquire banking Consummation of the proposal without divestitures operations and consulted with the appropriate banking would be consistent with Board precedent and the DOJ supervisor in each of those states about the permissibility Guidelines in the Wheeling and Steubenville-Weirton of the proposed transaction under applicable state law. All banking markets.13 These banking markets would remain the conditions for an interstate acquisition enumerated in moderately concentrated after consummation of the prosection 3(d) of the BHC Act are met in this case.8 In light posal, and numerous competitors would remain in the of all the facts of record, the Board is permitted to approve markets. the proposal under section 3(d) of the BHC Act. In the Tyler-Wetzel banking market, consummation of the proposal, without divestitures, would exceed the DOJ Competitive Considerations Guidelines. Wesbanco Bank is the largest depository institution in the market, controlling deposits of $106.5 million, Section 3 of the BHC Act and the BMA prohibit the Board representing approximately 37 percent of market deposits. from approving a proposal that would result in a monopoly Wheeling Bank is the fifth largest depository institution in or would be in furtherance of an attempt to monopolize the the market, controlling deposits of $20.4 million, representbusiness of banking. The BHC Act and the BMA also ing approximately 7 percent of market deposits. The HHI prohibit the Board from approving a proposal that would would increase 517 points to 2528. substantially lessen competition in any relevant banking To mitigate the potential anticompetitive effects of the market unless the anticompetitive effects of the proposal in proposal in the Tyler-Wetzel banking market, Wesbanco that banking market are clearly outweighed in the public has committed to divest one branch that controls approxiinterest by the probable effect of the proposal in meeting mately $17 million in deposits to a competitively suitable the convenience and needs of the community to be served.9 purchaser in the market.14 On consummation of the pro- Wesbanco Bank and Wheeling compete directly in the posal, taking into account the proposed divestiture, Wes- Wheeling, Steubenville-Weirton, and Tyler-Wetzel bank- banco Bank would remain the largest depository institution ing markets in West Virginia and Ohio.10 The Board has in the banking market, controlling deposits of $110 milreviewed carefully the competitive effects of the proposal lion, representing approximately 38 percent of market dein each of these banking markets in light of all the facts of posits, and the HHI in the Tyler-Wetzel banking market record, including the number of competitors that would would increase 120 points to 2131. Eight other depository remain in the market, the share of total deposits in deposi- institutions would remain in the market. Four of these tory institutions in the market ("market deposits") con- depository institutions, including the acquirer of the ditrolled by the companies involved in the proposal,11 the vested branch, would each control more than 8 percent of concentration level of deposits in the market and the in- market deposits. crease in this level as measured by the Herfindahl- Hirschman Index ("HHI") under the Department of Justice Merger Guidelines ("DOJ Guidelines"), and other charac- trated when the post-merger HHI is more than 1800. The Department teristics of the markets.12 of Justice has informed the Board 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. 8. See 12 U.S.C. §§ 1842(d)(1)(A) and (B) and 1842(d)(2)(A) and The Department of Justice has stated that the higher than normal HHI (B). Wesbanco is well capitalized and well managed. On consumma- thresholds for screening bank mergers for anticompetitive effects tion of the proposal, Wesbanco would control less than 10 percent of implicitly recognize the competitive effects of limited-purpose lenders the total amount of deposits of insured depository institutions in the and other nondepository financial institutions. United States and less than 30 percent of the total amount of deposits 13. In the Wheeling banking market, Wesbanco Bank would remain held by insured depository institutions in each of West Virginia, Ohio, the largest depository institution and would control $757.9 million in and Pennsylvania. All of Bancorp's banks have been in existence and deposits, representing approximately 34 percent of market deposits. continuously operated for at least the minimum period required under Sixteen other depository institutions would remain in the Wheeling West Virginia, Ohio, and Pennsylvania law. See W.Va. Code §§ 1A-2- banking market on consummation of this proposal. The HHI would 12a(c) and 31A-8A-5d (Michie 1996); Ohio Rev. Code increase 498 points to 1676. Ann. § 1115.05 (2001); 7 Pa. Cons. Stat. § 904 (2001). In the Steubenville-Weirton banking market, Wesbanco Bank would 9. 12 U.S.C. § 1842(c)(1)(A) and (B); 12 U.S.C. § 1828(c)(5)(A) become the largest competitor on consummation of the proposal, and and (B). would control $338.7 million in deposits, representing approximately 10. These banking markets are defined in Appendix B. 23 percent of market deposits. Sixteen other depository institutions 11. Market share data for all banking markets are as of June 30, would remain in the market on consummation of this proposal. The 2000. These data are based on calculations that include the deposits of HHI would increase 199 points to 1487. thrift institutions at 50 percent. The Board previously has indicated 14. Wheeling Bank has executed a sale agreement for the proposed that thrift institutions have become, or have the potential to become, divestiture discussed in this order with a purchaser that is competisignificant competitors of commercial banks. See, e.g., Midwest tively suitable and has committed to complete the divestiture within Financial Group, 75 Federal Reserve Bulletin 386 (1989); National 180 days of consummation of the proposal. Wesbanco has committed City Corporation, 70 Federal Reserve Bulletin 743 (1984). Thus, the that, if it is unsuccessful in completing the divestiture within the Board has regularly included thrift deposits in the calculation of 180-day period, it will transfer the unsold branch to an independent market share on a 50-percent weighted basis. See, e.g., First Hawai- trustee that is acceptable to the Board and will instruct the trustee to ian, Inc., 11 Federal Reserve Bulletin 52 (1991). sell the branch promptly to an alternative purchaser acceptable to the 12. Under the DOJ Guidelines, 49 Federal Register 26,823 Board. See BankAmerica Corporation, 78 Federal Reserve Bulletin (June 29, 1984), a market is considered moderately concentrated when 338 (1992); United New Mexico Financial Corporation, 11 Federal the post-merger HHI is between 1000 and 1800 and highly concen- Reserve Bulletin 484 (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 193 The Board has considered the views of the Department As noted above, Wesbanco Bank also has applied under of Justice and the other banking agencies on the competi- section 9 of the FRA to establish branches at the former tive effects of the proposal in each relevant banking mar- sites of Wheeling Bank's branches in West Virginia, Ohio, ket. The Department of Justice has advised the Board that, and Pennsylvania. The Board has considered the factors it in light of the proposed divestiture, consummation of the is required to consider when reviewing an application proposal is not likely to have a significantly adverse effect under section 9 of the FRA18 and, for the reasons discussed on competition in any relevant banking market. The Office in this order, finds those factors to be consistent with of the Comptroller of the Currency, the Office of Thrift approval. Supervision, and the Federal Deposit Insurance Corporation have been afforded an opportunity to comment and Conclusion have not objected to consummation of the proposal. Based on all the facts of record, including the proposed Based on the foregoing, and in light of all the facts of divestiture in the Tyler-Wetzel banking market and the record, the Board has determined that the applications number and size of the competitors remaining in the mar- should be, and hereby are, approved. The Board's approval kets, the Board concludes that consummation of the pro- is specifically conditioned on compliance by Wesbanco posal is not likely to have a significantly adverse effect on with all the commitments made in connection with the competition or on the concentration of banking resources proposal and with the conditions discussed in this order, in the banking markets in which Wesbanco Bank and including the divestiture commitments discussed above. Wheeling Bank directly compete or in any other relevant For the purpose of this action, the commitments and condibanking market, and that competitive considerations are tions referred to above are deemed to be conditions imconsistent with approval. posed in writing by the Board in connection with its findings and decision and, as such, may be enforced in Financial, Managerial, and Other Factors proceedings under applicable law. The proposed transactions shall not be consummated Section 3 of the BHC Act and the BMA also require the before the fifteenth calendar day after the effective date of Board to consider the financial and managerial resources this order, or later than three months after the effective date and future prospects of the companies and banks involved, of this order, unless such period is extended for good cause the convenience and needs of the communities to be by the Board or by the Federal Reserve Bank of Cleveland, served, and certain supervisory factors.15 The Board has acting pursuant to delegated authority. reviewed these factors in light of the record, including By order of the Board of Governors, effective January 7, supervisory reports of examination assessing the financial 2002. and managerial resources of the organizations and financial information provided by Wesbanco.16 Based on all the Voting for this action: Chairman Greenspan, Vice Chairman Fergufacts of record, the Board concludes that the financial and son, and Governors Meyer, Gramlich, Bies, and Olson. managerial resources and the future prospects of Wesbanco, Bancorp, and their respective subsidiary banks are ROBERT DEV. FRIERSON consistent with approval, as are the other supervisory fac- Deputy Secretary of the Board tors the Board must consider under the BHC Act and the BMA. In addition, considerations related to the conve- Apppendix A nience and needs of the communities to be served, including the records of performance of the institutions involved Branches to be Established by Wesbanco Bank under the Community Reinvestment Act ("CRA") (12 U.S.C. § 2901 et seq.), are consistent with approval of West Virginia the proposal.17 1145 Market Street, Wheeling 12th & Main Streets, Wheeling 15. 12 U.S.C. § 1842(c)(2); 12 U.S.C. § 1828(c)(5). Elm Grove Crossing, Wheeling 16. The Board received a comment on the proposal alleging that a Zane & Huron Streets, Wheeling director of an insured depository institution that was acquired by and 3265 Main Street, Weirton merged into Wesbanco Bank in 1995 engaged in illegal acts. The Three Springs Drive, Weirton commentor provided no evidence to support these allegations. The State Route 2, New Martinsville Board notes that the individual cited in the comment currently does not serve as an officer or director of Wesbanco or any of its subsidiar- Route 20, Pine Grove ies, including Wesbanco Bank. The Board has also reviewed this comment in light of supervisory information assessing the current managerial resources of Wesbanco and its subsidiaries. 17. Wesbanco Bank received a "satisfactory" rating at its most recent examination for CRA performance by the Federal Reserve Bank of Cleveland, as of May 7, 2001. Wheeling Bank also received a "satisfactory" CRA rating from its primary federal supervisor, the Office of the Comptroller of the Currency, at its most recent evaluation, as of December 29, 1999. 18. 12 U.S.C. § 322. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 Federal Reserve Bulletin • March 2002 Ohio liabilities of three branches of Banco Bilbao Vizcaya Argentaria Puerto Rico, San Juan, Puerto Rico ("Banco Bil- 135 W. Main Street, St. Clairsville bao").1 One Mall Drive, St. Clairsville Notice of the proposal, affording interested persons an 102 E. Main Street, Freeport opportunity to submit comments, has been given in accor- 875 E. Main Street, Barnesville dance with the Bank Merger Act and the Board's Rules of 219 High Street, Flushing Procedure (12 C.F.R. 262.3(b)). As required by the Bank 3868 Central Avenue, Shadyside Merger Act, reports on the competitive effects of the 850 Wheeling Avenue, Cambridge merger were requested from the United States Attorney 100 Mall Road, Steubenville General and the other federal banking agencies. The time 109 N. Hamilton Road, Gahanna for filing comments has expired, and the Board has consid- 6121 E. Livingston Avenue, Columbus ered the application and all the facts of record in light of 148/150 E. Broad Street, Columbus the factors set forth in the Bank Merger Act. 369 Stoneridge Lane, Gahanna Banco Popular is a subsidiary of Popular, Inc., also in San Juan, and is the largest depository institution in Puerto 5670 North Hamilton Road, New Albany Rico, controlling deposits of $9.6 billion, representing 31.8 percent of the total deposits in depository institutions Pennsylvania in Puerto Rico ("Commonwealth deposits").2 The Banco Bilbao branches that Banco Popular proposes to acquire 6 S. Main Street, Washington control deposits of approximately $49.8 million, representing less than 1 percent of Commonwealth deposits. On Appendix B consummation, Banco Popular would remain the largest Banking Markets in Which Wesbanco and Bancorp depository institution in Puerto Rico, controlling deposits Directly Compete of $9.7 billion, representing 31.9 percent of Commonwealth deposits. Wheeling Banking Market Competitive Considerations The Wheeling market is defined as Marshall and Ohio counties in West Virginia; Belmont County in Ohio, and The Bank Merger Act prohibits the Board from approving Mt. Pleasant and Warren townships in Jefferson County, a proposal that would result in a monopoly or would be in Ohio. furtherance of any attempt to monopolize the business of banking.3 The Bank Merger Act also prohibits the Board Steubenville-Weirton Banking Market from approving a proposal that would substantially lessen competition or tend to create a monopoly in any relevant The Steubenville-Weirton market is defined as Jefferson market, unless the Board finds that the anticompetitive County, Ohio, except Mt. Pleasant and Warren townships; effects of the proposed transaction are clearly outweighed the German, Rumley, Archer, Green, Cadiz, Athens, and in the public interest by the probable effects of the transac- Short Creek townships in Harrison County, Ohio; Brooke tion in meeting the convenience and needs of the commu- County, West Virginia; and Butler and Clay districts in nity to be served.4 Hancock County, West Virginia. Banco Popular and the Banco Bilbao branches to be acquired compete directly in the San Juan and Ponce, Tyler-Wetzel Banking Market Puerto Rico, banking markets ("San Juan banking market" and "Ponce banking market").5 The Board has reviewed The Tyler-Wetzel market is defined as Tyler and Wetzel carefully the competitive effects of the proposal in each counties in West Virginia and the Adams, Jackson, Lee, Ohio, and Salem townships in Monroe County, Ohio. 1. The Banco Bilbao branches are located at 24 Munoz Rivera Street, Adjuntas; 8 Palmer Street, Ciales; and 17-4 de Julio Street, Orocovis, all in Puerto Rico. Immediately following consummation of ORDERS ISSUED UNDER BANK MERGER ACT the proposed transaction, Banco Popular would consolidate each Banco Bilbao branch with an existing Banco Popular branch that is Banco Popular de Puerto Rico within 600 feet of the acquired branch. 2. Deposit and ranking data are as of June 30, 2000. In this context, Hato Rey, Puerto Rico depository institutions include commercial banks, savings banks, and savings associations. Order Approving the Acquisition of Branches 3. 12 U.S.C. § 1828(c)(5)(A). 4. 12 U.S.C. § 1828(c)(5)(B). Banco Popular de Puerto Rico ("Banco Popular"), a state 5. The San Juan banking market is defined as the San Juan-Caguas- Aricebo Consolidated Metropolitan Statistical Area and the municipalmember bank, has applied under section 18(c) of the Fedities of Aibonito, Barranquitas, Ciales, Jayuya, Lares, Maunabo, Oroeral Deposit Insurance Act (12 U.S.C. § 1828(c)) ("Bank covis, Quebradillas, Utuado, and Vieques, all in Puerto Rico. The Merger Act") to acquire certain assets and assume certain Ponce banking market is defined as the Ponce Metropolitan Statistical Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 195 market in light of the facts of record, including the number $748.5 million, representing 43.9 percent of market of competitors that would remain in the market, the relative deposits. Banco Bilbao would remain the second largest share of the total deposits in depository institutions in the depository institution in the market, controlling deposits of market ("market deposits") that Banco Popular would $241.7 million, representing 14.2 percent of market deposcontrol,6 the concentration level of market deposits and the its. The HHI would increase 43 points to 2411. Twelve increase in this level as measured by the Herfindahl- commercial banks, including Banco Bilbao, would com- Hirschman Index ("HHI") under the Department of Justice pete in the market after consummation of the proposal. In Merger Guidelines ("DOJ Guidelines"),7 and other charac- addition, fourteen savings and credit union cooperative teristics of the markets. The transaction is consistent with societies ("cooperatives") compete in the Ponce banking the DOJ Guidelines and Board precedent in the San Juan market,8 controlling $290.4 million in deposits.9 and Ponce banking markets. The Department of Justice has reviewed the proposal Banco Popular is the largest depository institution in the and advised the Board that consummation of the proposal San Juan banking market, controlling deposits of approxi- is not likely to have a significantly adverse effect on mately $8.2 billion, representing 32.1 percent of market competition in the San Juan or Ponce banking markets or deposits. The Banco Bilbao branches to be acquired con- in any other relevant banking market. The Puerto Rico trol deposits of approximately $36.9 million, representing Commissioner of Financial Institutions and the other fedless than 1 percent of market deposits. On consummation eral banking agencies also have been afforded an opportuof the proposal, Banco Popular would remain the largest nity to comment on the proposal and have not objected. depository institution in the San Juan banking market, After carefully reviewing all the facts of record, and for controlling deposits of approximately $8.2 billion, repre- the reasons discussed above, the Board concludes that senting 32.2 percent of market deposits. Banco Bilbao consummation of the proposal is not likely to result in a would remain the fifth largest depository institution in the significantly adverse effect on competition or on the conmarket, controlling deposits of $2.2 billion, representing centration of banking resources in any relevant banking 8.5 percent of market deposits. The HHI would increase market and that competitive factors are consistent with 7 points to 1695. Thirteen depository institutions, including approval of the proposal. Banco Bilbao, would compete in the market after consummation. Other Factors Banco Popular is the largest depository institution in the Ponce banking market, controlling deposits of approxi- In reviewing this proposal under the Bank Merger Act, the mately $735.6 million, representing 43.1 percent of market Board also has considered the financial resources and fudeposits. The Banco Bilbao branch that Banco Popular ture prospects of the institutions involved. The Board has proposes to acquire controls deposits of approximately reviewed these factors in light of all the facts of record, $12.9 million, representing less than 1 percent of market including supervisory reports of examination assessing the deposits. On consummation of the proposal, Banco Popular financial resources of and information provided by Banco would remain the largest depository institution in the Ponce Popular. The Board notes that Banco Popular would rebanking market, controlling deposits of approximately main well capitalized on consummation of the proposal. The Board also has carefully reviewed reports of examination and other material related to the management record and resources of Banco Popular. In light of all the facts of Area and the municipalities of Adjuntas, Arrojo, Coamo, Guanica, record, the Board concludes that the financial and manage- Guayama, Pantillas, Salinas, and Santa Isabel, all in Puerto Rico. rial resources and future prospects of Banco Popular and 6. Unless otherwise noted, market share data are as of June 30, 2000, and are based on calculations in which the deposits of thrift Banco Bilbao are consistent with approval of this proposal. institutions, which include savings banks and savings associations, are In addition, considerations related to the convenience and weighted at 50 percent. The Board has previously indicated that thrift needs of the communities to be served, including the institutions have become, or have the potential to become, significant records of performance of the institutions involved under 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 8. Cooperatives are Commonwealth-insured depository institutions weighted basis. See, e.g., First Hawaiian, Inc., 11 Federal Reserve unique to Puerto Rico. Although cooperatives are membership organi- Bulletin 52 (1991). zations, few impose membership restrictions, and they are authorized 7. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a to provide a full range of products and services to nonmembers, market is considered moderately concentrated if the post-merger HHI including transactions accounts for personal and business purposes. is between 1000 and 1800 and highly concentrated if the post- merger For a detailed discussion of the activities of cooperatives, see Ban- HHI is more than 1800. The Department of Justice has informed the Ponce Corporation, 11 Federal Reserve Bulletin 43, 45 (1991); State- Board that a bank merger or acquisition generally will not be chal- ment by the Board of Governors of the Federal Reserve System lenged (in the absence of other factors indicating anticompetitive Regarding the Application by Banco Santander, S.A., 82 Federal effects) unless the post-merger HHI is at least 1800 and the merger Reserve Bulletin 833, 834-835 (1996) ("Statement"). increases the HHI by more than 200 points. The Department of Justice 9. The Board previously has recognized and continues to believe has stated that the higher than normal HHI thresholds for screening that cooperatives are at least as significant as thrift institutions as bank mergers for anticompetitive effects implicitly recognize the competitors of commercial banks and should be weighted at competitive effects of limited-purpose lenders and other nondeposi- 50 percent in the Ponce banking market. See Statement at 835 n.13. tory financial institutions. Deposit data for cooperatives are as of June 30, 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 Federal Reserve Bulletin • March 2002 the Community Reinvestment Act ("CRA"), are consistent Notice of the application, affording interested persons an with approval.10 opportunity to submit comments, has been published in a newspaper of general circulation in New York, New York Conclusion (The New York Post, June 20, 2001). The time for filing comments has expired, and all comments have been con- Based on the foregoing and the facts of record, the Board sidered. has determined that the application should be, and hereby Bank, with total consolidated assets of approximately is, approved. The Board's approval is specifically condi- $81.1 billion,1 is Germany's largest mortgage bank and is tioned on compliance by Banco Popular with all commit- primarily engaged in construction and long-term finance ments made in connection with the proposal. For purposes for institutional investors and developers. Bank operates of this action, the commitments and conditions referred to eleven offices in Germany and four representative offices in in this order are deemed to be conditions imposed in other countries in Europe. writing by the Board in connection with its findings and Bank's largest shareholders are BGAG Beteiligungsgedecision and, as such, may be enforced in proceedings sellschaft der Gewerkschaften AG ("BGAG"), Frankfurt, under applicable law. Germany, and BHW Holding AG ("BHW"), Hameln, The acquisition of the branches may not be consum- Germany.2 BGAG and BWH are holding companies with mated before the fifteenth calendar day after the effective investments primarily in the financial services and real date of this order, and the proposal may not be consum- estate sectors.3 mated later than three months after the effective date of this The proposed representative office would assist Bank in order, unless such period is extended for good cause by the its property financing business. The office would solicit Board or the Reserve Bank, acting pursuant to delegated loans and other banking business, conduct research, and authority. act as a liaison with customers of Bank. By order of the Board of Governors, effective Janu- In acting on an application to establish a representative ary 15, 2002. office, the IBA and Regulation K provide that the Board shall take into account whether the foreign bank engages Voting for this action: Chairman Greenspan, Vice Chairman Fergu- directly in the business of banking outside of the United son, and Governors Meyer, Gramlich, Bies, and Olson. States and has furnished to the Board the information it needs to assess the application adequately. The Board also ROBERT DEV. FRIERSON shall take into account whether the foreign bank and any Deputy Secretary of the Board foreign bank parent is subject to comprehensive supervision or regulation on a consolidated basis by its home country supervisor (12 U.S.C. § 3107(a)(2); 12 C.F.R. ORDERS ISSUED UNDER INTERNATIONAL BANKING 211.24(d)(2)).4 In addition, the Board may take into ACT account additional standards set forth in the IBA and Regulation K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. Allgemeine HypothekenBank Rheinhoden AG 211.24(c)(2)). Frankfurt, Germany Order Approving Establishment of a Representative Office 1. Unless otherwise indicated, data are as of June 30, 2001. 2. BGAG owns 50 percent of Bank; BHW owns 40 percent of Bank. The remainder is held by DBV Winterthur Holding AG, Wiesbaden, Allgemeine HypothekenBank Rheinhoden AG ("Bank"), Germany. Frankfurt, Germany, a foreign bank within the meaning of 3. BGAG and BHW are considered financial holding companies the International Banking Act ("IBA"), has applied under under German law and, accordingly, are subject to supervision by the section 10(a) of the IBA (12 U.S.C. § 3107(a)) to establish German Federal Banking Supervisory Office. 4. In assessing this standard, the Board considers, among other a representative office in New York, New York. The Forfactors, the extent to which the home country supervisors: eign Bank Supervision Enhancement Act of 1991, which (i) Ensure that the bank has adequate procedures for monitoring amended the IBA, provides that a foreign bank must obtain and controlling its activities worldwide; the approval of the Board to establish a representative (ii) Obtain information on the condition of the bank and its office in the United States. subsidiaries and offices through regular examination reports, audit reports, or otherwise; (iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic; 10. 12 U.S.C. § 2901 et seq. Banco Popular received an "outstand- (iv) Receive from the bank financial reports that are consolidated ing" rating at its most recent examination for CRA performance by on a worldwide basis or comparable information that permits the Federal Reserve Bank of New York ("Reserve Bank"), as of analysis of the bank's financial condition on a worldwide June 5, 2000. The Reserve Bank reviewed the general policy em- consolidated basis; ployed by Banco Popular in closing and consolidating branches in (v) Evaluate prudential standards, such as capital adequacy and connection with its CRA performance examination of the bank and risk asset exposure, on a worldwide basis. determined that the policy conformed to the Joint Interagency Policy These are indicia of comprehensive, consolidated supervision. No Statement Regarding Branch Closings. See 64 Federal Register single factor is essential, and other elements may inform the Board's 34,844(1999). determination. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 197 As noted above, Bank engages directly in the business of the extent that the provision of such information to the banking outside the United States. Bank also has provided Board may be prohibited by law or otherwise, Bank and its the Board with information necessary to assess the applica- parent companies have committed to cooperate with the tion through submissions that address the relevant issues. Board to obtain any necessary consents or waivers that With respect to supervision by home country authorities, might be required from third parties for disclosure of such the Board previously has determined, in connection with information. In addition, subject to certain conditions, the applications involving other German banks, that those German Federal Banking Supervisory Office may share banks were subject to home country supervision on a information on Bank's operations with other supervisors, consolidated basis.5 Bank is upervised by the German including the Board. In light of these commitments and Federal Banking Supervisory Office on substantially the other facts of record, and subject to the condition described same terms and conditions as the other banks. Based on all below, it has been determined that Bank has provided the facts of record, it has been determined that Bank is adequate assurances of access to any necessary information subject to comprehensive supervision and regulation on a that the Board may request. consolidated basis by its home country supervisor. On the basis of all the facts of record, and subject to the The additional standards set forth in section 7 of the IBA commitments made by Bank and its parent companies, and and Regulation K (see 12 U.S.C. § 3105(d)(3)-(4); the terms and conditions set forth in this order, Bank's 12 C.F.R. 211.24(c)(2)) have also been taken into account. application to establish the representative office is hereby The German Federal Banking Supervisory Office has no approved.6 Should any restrictions on access to informaobjection to the establishment of the proposed representa- tion on the operations or activities of Bank or any of its tive office. affiliates subsequently interfere with the Board's ability to With respect to the financial and managerial resources of obtain information to determine and enforce compliance by Bank, taking into consideration Bank's record of opera- Bank or its affiliates with applicable federal statutes, the tions in its home country, its overall financial resources, Board may require or recommend termination of any of and its standing with its home country supervisor, financial Bank's direct and indirect activities in the United States. and managerial factors are consistent with approval of the Approval of this application also is specifically conditioned proposed representative office. Bank appears to have the on compliance by Bank and its parent companies with the experience and capacity to support the proposed represen- commitments made in connection with this application and tative office and has established controls and procedures with the conditions in this order.7 The commitments and for the proposed representative office to ensure compliance conditions referred to above are conditions imposed in with U.S. law. writing by the Board in connection with its decision and With respect to access to information on Bank's opera- may be enforced in proceedings against Bank and its tions, the restrictions on disclosure in relevant jurisdictions affiliates under 12 U.S.C. § 1818. in which Bank operates have been reviewed and relevant By order, approved pursuant to authority delegated by government authorities have been communicated with re- the Board, effective January 8, 2002. garding access to information. Bank and its parents have committed to make available to the Board such informa- ROBERT DEV. FRIERSON tion on the operations of Bank and any of their affiliates Deputy Secretary of the Board that the Board deems necessary to determine and enforce compliance with the IBA, the Bank Holding Company Act 6. Approved by the Director of the Division of Banking Supervision of 1956, as amended, and other applicable federal law. To and Regulation, with the concurrence of the General Counsel, pursuant to authority delegated by the Board. See 12 C.F.R. 265.7(d)(12). 7. The Board's authority to approve the establishment of the pro- 5. See DePfa Bank AG, 87 Federal Reserve Bulletin 710 (2001); posed representative office parallels the continuing authority of the RHEINHYP Rheinische Hypothekenbank AG, 87 Federal Reserve State of New York to license offices of a foreign bank. The Board's Bulletin 558 (2001); Deutsche Hyp Deutsche Hypothekenbank, approval of this application does not supplant the authority of the 86 Federal Reserve Bulletin 658 (2000); Deutsche Bank AG, State of New York or its agent, the New York State Banking Depart- 85 Federal Reserve Bulletin 509 (1999); Westdeutsche Immobilien- ment ("Department"), to license the proposed office of Bank in Bank, 85 Federal Reserve Bulletin 346 (1999); Commerzbank AG, 85 accordance with any terms or conditions that the Department may Federal Reserve Bulletin 336 (1999). impose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 Federal Reserve Bulletin • March 2002 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 Andrews Holding Company, Commercial State Bank, Dallas January 16, 2002 Andrews, Texas Andrews, Texas BancorpSouth, Inc., Pinnacle Bancshares, Inc., St. Louis December 31, 2001 Tupelo, Mississippi Little Rock, Arkansas Pinnacle Bank, Little Rock, Arkansas Baylor Bancshares, Inc., Citizens State Bank, Dallas January 17, 2002 Seymour, Texas Princeton, Texas Baylor/Delaware Corporation, Wilmington, Delaware Bryan-Heritage Limited Partnership, The First National Bank of Bryan, Dallas January 9, 2002 Bryan, Texas Bryan, Texas Bryan Family Management Trust, Bryan, Texas Buerge Bancshares, Inc., Grand Lake Bancorp, Inc., Kansas City January 25, 2002 Joplin, Missouri Tulsa, Oklahoma Sarcoxie Bancorp, Inc., Sarcoxie, Missouri CBA Bancshares, Inc., Community Bank of Arizona, San Francisco January 10, 2002 Minneapolis, Minnesota Wickenburg, Arizona C&S Bancorporation, Inc., Citizens & Southern Bank, Atlanta January 8, 2002 Savannah, Georgia Savannah, Georgia First Charter Corporation, United Community Bancorp, Richmond January 18, 2002 Charlotte, North Carolina Hickory, North Carolina First National of Illinois, Inc., Castle Bank, N.A., Kansas City January 16, 2002 Omaha, Nebraska DeKalb, Illinois First National of Nebraska, Inc. First National of Illinois, Inc., Kansas City January 16, 2002 Omaha, Nebraska Omaha, Nebraska F.N.B. Corporation, Sun Bancorp, Inc., Atlanta January 4, 2002 Naples, Florida Selinsgrove, Pennsylvania Sun Bank, Selinsgrove, Pennsylvania Hardin County Bancorp, Inc., State Bank of Rosiclare, St. Louis January 24, 2002 Rosiclare, Illinois Rosiclare, Illinois Jane Austin Chapman Limited Austin Bancorp, Inc., Dallas January 3, 2002 Partnership, L.P., Jacksonville, Texas Jacksonville, Texas Capital Bancorp, Inc., Jacinto City, Texas Franks ton Bancorp, Inc., Frankston, Texas First State Bank, Athens, Athens, Texas Lauritzen Enterprises, Farmers & Merchants State Bank, Kansas City January 4, 2002 Omaha, Nebraska Bloomfield, Nebraska Macatawa Bank Corporation, Grand Bank Financial Corporation, Chicago January 25, 2002 Holland, Michigan Grand Rapids, Michigan Grand Bank, Grand Rapids, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 199 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Mercantile Bancorp, Inc. NorthStar Bancshares, Inc., St. Louis January 15, 2002 Quincy, Illinois Kansas City, Missouri NorthStar Bank, N.A., Kansas City, Missouri Northern Plains Investment, Inc. North Star Holding Company, Inc. Minneapolis February 1, 2002 Jamestown, North Dakota Jamestown, North Dakota Stutsman County State Bank, Jamestown, North Dakota Texas Regional Bancshares, Inc. Riverway Holdings, Inc., Dallas January 4, 2002 McAllen, Texas Houston, Texas Texas Regional Delaware, Inc., Riverway Bank, Wilmington, Delaware Houston, Texas Williamstown Mutual Holding Williamstown Savings Bank, Boston January 9, 2002 Company, Williamstown, Massachusetts Williamstown, Massachusetts Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date FBOP Corporation, Gateway Investment Services, Inc., Chicago January 2, 2002 Oak Park, Illinois Los Angeles, California Mahaska Investment Company, To engage in the permissible Chicago December 26, 2001 Oskaloosa, Iowa nonbanking activity of data processing Meader Insurance Agency, Inc., Waverly Insurance Agency, Inc., Kansas City December 20, 2001 Waverly, Kansas Waverly, Kansas Union Planters Corporation, Union Planters Investment Advisors, St. Louis January 10, 2002 Memphis, Tennessee Inc., Memphis, Tennessee Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date BB&T Corporation, Area Bancshares Corporation, Richmond January 11, 2002 Winston-Salem, North Carolina Owensboro, Kentucky BB&T Corporation, Mid-America Bancorp, Richmond January 11, 2002 Winston-Salem, North Carolina Louisville, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 Federal Reserve Bulletin • March 2002 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 Arvest Bank, Arvest Bank, St. Louis January 3, 2002 Fayetteville, Arkansas Fort Smith, Arkansas Arvest Bank, Joplin, Missouri Bank of Bentonville, Bentonville, Arkansas First Arvest Bank, Siloam Springs, Arkansas Arvest State Bank, Tulsa, Oklahoma Bank of Mulberry, Bank of Mansfield, St. Louis January 28, 2002 Mulberry, Arkansas Mansfield, Arkansas Potomac Valley Bank, South Branch Valley National Bank, Richmond December 12, 2001 Petersburg, West Virginia Moorefield, West Virginia Texas State Bank, Riverway Bank, Dallas January 4, 2002 McAllen, Texas Houston, Texas United States Trust Company of U.S. Trust Company of New Jersey, New York January 28, 2002 New York, Princeton, New Jersey New York, New York PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the tion. On August 15, 2001, the district court consolidated the Federal Reserve Banks in which the Board of Governors is not action with Artis v. Greenspan, No. 99-CV-2073 (EGS) named a party. (D.D.C., filed August 3, 1999), also an employment discrimination action. Community Bank & Trust v. United States, No. 01-571C Howe v. Bank for International Settlements, No. 00CV12485 (Ct. Fed. Cl„ filed October 3, 2001). Action challenging on RCL (D. Mass., filed December 7, 2000). Action seeking constitutional grounds the failure to pay interest on reserve damages in connection with gold market activities and the accounts held at Federal Reserve Bank. repurchase by the Bank for International Settlements of its Emran v. Greenspan, No. 1:01CV1992 (PLF) (D.D.C., filed privately-owned shares. September 20, 2001). Employment discrimination claim. Trans Union LLC v. Federal Trade Commission, et al., On December 21, 2001, the case was dismissed by stipula- No. 01-5202 (D.C. Cir., filed June 4, 2001). Appeal of tion of the parties. district court order entered April 30, 2001, upholding chal- Laredo National Bancshares, Inc. v. Whalen v. Board of lenged providions of an interagency rule regarding Privacy Governors, No. 01-CV-134 (S.D. Tex., removed on Septemof Consumer Finance Information. ber 5, 2001, from No. 99CVQ00940-D3 (District Court, 341st Judicial District, Webb County, Texas, originally filed Albrecht v. Board of Governors, No. 00-CV-317 (CKK) July 26, 2001). Third-party petition seeking indemnification (D.D.C., filed February 18, 2000). Action challenging the or contribution from the Board in connection with a claim method of funding of the retirement plan for certain Board asserted against defendant Whalen alleging tortious interfer- employees. On March 30, 2001, the district court granted in ence with a contract. part and denied in part the Board's motion to dismiss. Radfar v. United States, No. 1:01CV1292 (PLF) (D.D.C., Fraternal Order of Police v. Board of Governors, complaint filed June 11, 2001). Action under the Federal No. 1:98CV03116 (WBB)(D.D.C„ filed December 22, Tort Claims Act for injury on Board premises. 1998). Declaratory judgment action challenging Board la- Artis v. Greenspan, No. 01-CV-0400(ESG) (D.D.C., complaint bor practices. On February 26, 1999, the Board filed a filed February 22, 2001). Employment discrimination ac- motion to dismiss the action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A3 GUIDE TO TABLES Federal Finance—Continued All Gross public debt of US. 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 US. government securities dealers— A5 Reserves of depository institutions and Reserve Bank Positions and financing credit A30 Federal and federally sponsored credit A6 Reserves and borrowings—Depository agencies—Debt outstanding institutions Securities Markets and Corporate Finance Policy Instruments A31 New security issues—Tax-exempt state and local A7 Federal Reserve Bank interest rates governments and corporations A8 Reserve requirements of depository institutions A32 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A32 Corporate profits and their distribution 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 Monetary and Credit Aggregates A34 Mortgage markets—New homes A35 Mortgage debt outstanding A12 Aggregate reserves of depository institutions and monetary base A13 Money stock and debt measures Consumer Credit A3 6 Total outstanding Commercial Banking Institutions- A3 6 Terms Assets and Liabilities A15 All commercial banks in the United States Flow of Funds A16 Domestically chartered commercial banks A37 Funds raised in U.S. credit markets A17 Large domestically chartered commercial banks A39 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 U.S. budget receipts and outlays A48 Gross domestic product and income All Federal debt subject to statutory limitation A49 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 Federal Reserve Bulletin • March 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 TABLE A52 Liabilities to, and claims on, foreigners A53 Liabilities to foreigners A64 Assets and liabilities of U.S. branches and A55 Banks' own claims on foreigners agencies of foreign banks, September 30, 2001 A56 Banks' own and domestic customers' claims on foreigners A68 INDEX TO STATISTICAL TABLES A56 Banks' own claims on unaffiliated foreigners A57 Claims on foreign countries—Combined domestic offices and foreign branches 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

A3 Guide to Tables SYMBOLS AND ABBREVIATIONS c Corrected G-10 Group of Ten e Estimated GDP Gross domestic product n.a. Not available GNMA Government National Mortgage Association n.e.c. Not elsewhere classified GSE Government-sponsored enterprise P Preliminary HUD Department of Housing and Urban r Revised (Notation appears in column heading Development when about half the figures in the column have IMF International Monetary Fund been revised from the most recently published IOs Interest only, stripped, mortgage-backed securities table.) IPCs Individuals, partnerships, and corporations * Amount insignificant in terms of the last decimal IRA Individual retirement account place shown in the table (for example, less than MMDA Money market deposit account 500,000 when the smallest unit given is in millions) MSA Metropolitan statistical area 0 Calculated to be zero NAICS North American Industry Classification System Cell not applicable NOW Negotiable order of withdrawal ABS Asset-backed security OCDs Other checkable deposits ATS Automatic transfer service OPEC Organization of Petroleum Exporting Countries BIF Bank insurance fund OTS Office of Thrift Supervision CD Certificate of deposit PMI Private mortgage insurance CMO Collateralized mortgage obligation POs Principal only, stripped, mortgage-backed securities CRA Community Reinvestment Act of 1977 REIT Real estate investment trust FAMC Federal Agriculture Mortgage Corporation REMICs Real estate mortgage investment conduits FFB Federal Financing Bank RHS Rural Housing Service FHA Federal Housing Administration RP Repurchase agreement FHLBB Federal Home Loan Bank Board RTC Resolution Trust Corporation FHLMC Federal Home Loan Mortgage Corporation SCO Securitized credit obligation FmHA Farmers Home Administration SDR Special drawing right FNMA Federal National Mortgage Association SIC Standard Industrial Classification FSA Farm Service Agency TIIS Treasury inflation-indexed securities FSLIC Federal Savings and Loan Insurance Corporation VA Department of Veterans Affairs G-7 Group of Seven GENERAL INFORMATION In many of the tables, components do not sum to totals because of include not fully guaranteed issues) as well as direct obligarounding. tions of the U.S. Treasury. Minus signs are used to indicate (1) a decrease, (2) a negative "State and local government" also includes municipalities, figure, or (3) an outflow. special districts, and other political subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic NonfinancialS tatistics • March 2002 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 2001 2001 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Ql Q2 Q3 Q4 Aug. Sept.' Oct.' Nov.' Dec. Reserves of depository institutions2 1 Total -2.1 1.9 72.3r -30.4 9.0' 539.2 -257.6 -130.1 14.7 2 Required -3.6 4.3 10.9r 23.3 15.6' 4.2 162.8 -138.5 10.5 3 Nonborrowed .4 .9 61.0r -20.6 12.1' 445.1 -201.8 -129.3 15.2 4 Monetary base3 6.4 5.4 14.7 6.5 15.4 47.3 -18.3 -1.8 10.2 Concepts of money and debt* 5 Ml 5.0 5.5 14.8r 1.5 8.4' 59.0 -42.0 -.8 20.5 6 M2 9.8 9.7 10.8' 9.3 8.2 26.9 -1.7 9.4 7.9 7 M3 13.1 14.7 9.6' 11.9 .8 24.0 7.4 13.7 8.7 8 Debt 4.8 5.9 5.8 n.a. 6.8' 8.0 5.6 6.7 n.a. Nontransaction components 9 In M25 11.2 10.9 9.6 11.5 8.1 18.0 9.8 12.2 4.4 10 In M3 only6 20.7 25.8r 7.0' 17.8 -15.2r 17.6 27.3 22.9 10.3 Time and savings deposits Commercial banks 11 Savings, including MMDAs 17.4 20.4 19.8 23.3 24.5 32.6 12.0 29.8 20.4 12 Small time7 2.5 -7.8 -10.3 -12.3 -7.7' -8.6 -10.8 -17.5 -19.6 13 Large time8-9 -1.3 -,3r -5.2' -8.4 -19.2' -5.0 -9.5 -8.2 -1.9 Thrift institutions 14 Savings, including MMDAs 6.5 22.4r 25.4' 26.6 24.3 22.9 33.4 26.7 10.8 15 Small time7 6.5 4.0 -12.5 -9.9 -4.5 -14.9 -17.6 -15.3 16 Large time8 11.1 12.8 16.0 .5 31.1 13.6 2.1 -22.7 -13.7 Money market mutual funds 17 Retail 12.2 7.0 4.9 8.7 -9.6 17.1 16.2 4.3 -4.0 18 Institution-only 50.8 55.1 21.9 45.5 -20.1 53.0 76.4 30.0 23.0 Repurchase agreements and eurodollars 19 Repurchase agreements10 -7.1 21.0 -9.6 .6 -11.5 -11.1 62.6 10.9 20 Eurodollars10 38.6 7.4' 3.6' 7.4 -8.2' 24.3 -17.3 42.8 -6.4 Debt components4 21 Federal -5.2 -7.0 3.1 n.a. 7.6 12.3 .0 -.1 n.a. 22 Nonfederal 7.1 8.8r 6.3 n.a. 6.6' 7.0 6.8 8.1 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 Oct. Nov. Dec. Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 613,459r 616,947 628,846 616,000 619,203 621,108 622,733 619,744 627,354 633,773 U.S. government securities2 2 Bought outright—System account3 541,533 547,415 553,365 546,037 549,068 549,494 550,440 551,513 554,231 555,865 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 33,035 32,049 38,552 31,004 34,257 35,243 34,571 31,500 36,593 41,743 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 9 50 23 90 33 9 8 43 12 36 9 Seasonal credit 68 33 35 31 30 33 34 34 35 36 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 501r 479 701 71 578 679 1,663 383 730 169 13 Other Federal Reserve assets 38,302 36,911 36,160 38,757 35,227 35,639 36,006 36,261 35,742 35,915 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 33,045 33,104 33,167 33,097 33,111 33,113 33,139 33,153 33,167 33,181 ABSORBING RESERVE FUNDS 17 Currency in circulation 615,444 622,206 632,828 621,370 622,985 626,232 625,473 627,038 630,596 638,670 18 Reverse repurchase agreements—triparty4 . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 438 435 434 438 436 429 435 441 440 425 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,234 5,131 5,274 4,690 5,603 5,074 5,500 5,008 5,864 4,645 21 Foreign 505 213 253 149 172 327 394 154 290 344 22 Service-related balances and adjustments . . 8,160 8,012 8,901 7,788 8,237 8,151 8,525 8,750 9,134 8,972 23 Other 262 267 247 256 274 263 245 240 221 207 24 Other Federal Reserve liabilities and capital . . 17,892 17,910 17,841 17,967 17,766 17,815 18,048 17,885 17,966 17,756 25 Reserve balances with Federal Reserve Banks5 1 l,814r 9,123 9,480 9,684 10,087 9,175 10,497 6,627 9,254 9,180 End-of-month figures Wednesday figures Oct. Nov. Dec. Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 625,350 624,228 638,778 627,260 623,368 627,136 617,919 633,971 629,355 643,505 U.S. government securities2 2 Bought outright—System account3 544,287 550,314 551,675 547,300 549,166 550,765 552,758 553,524 555,584 555,997 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 45,050 36,500 50,250 37,755 36,250 39,350 28,000 42,500 37,700 50,250 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 15 3 4 1 4 3 2 83 10 13 9 Seasonal credit 40 35 30 28 31 33 36 35 34 32 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 244 1,523 -23 3,283 2,369 1,001 985 1,355 24 1,166 13 Other Federal Reserve assets 35,703 35,842 36,832 38,882 35,539 35,974 36,127 36,465 35,993 36,038 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 33,069 33,139 33,195 33,097 33,111 33,111 33,139 33,153 33,167 33,181 ABSORBING RESERVE FUNDS 17 Currency in circulation 616,853 624,672 643,479 623,072 626,282 626,851 626,844 629,822 634,598 642,191 18 Reverse repurchase agreements—triparty4 . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 435 434 425 437 428 434 441 443 425 425 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,112 6,219 6,645 5,347 4,627 4,313 4,788 4,592 7,174 4,856 21 Foreign 75 528 61 471 163 351 86 294 622 233 22 Service-related balances and adjustments . 8,223 8,525 9,061 7,788 8,237 8,151 8,525 8,750 9,134 8,972 23 Other 271 236 820 262 257 272 243 216 208 223 24 Other Federal Reserve liabilities and capital . 17,773 18,101 17,083 17,604 17,606 17,858 17,716 17,764 17,698 17,429 25 Reserve balances with Federal Reserve Banks: 22,922 11,896 7,643 18,622 12,125 15,261 5,660 18,489 5,907 15,602 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 • March 2002 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1999 2000 2001 2001 Dec. Dec. Dec. June Julyr Aug/ Sept.' Oct.r Nov.r Dec. 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 5,262 7,022 9,060 7,043' 7,693 7,578 25,633 12,552 8,944 9,060 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 60,619 45,245 43,918 43,139 43,910 44,007 43,436 45,021 43,065 43,918 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 36,392 31,451 31,896 31,174 31,644 32,090 31,934 32,509 31,214 31,896 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 24,227 13,794 12,022 11,966 12,266 11,917 11,502 12,512 11,851 12,022 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 41,654 38,473 40,956 38,217r 39,337 39,668 57,567 45,061 40,158 40,956 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 40,357 37,046 39,316 36,855 37,929 38,459 38,549 43,739 38,672 39,316 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss11111 1,297 1,427 1,641 l,362r 1,408 1,209 19,019 1,321 1,487 1,641 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnnggggg aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 320 210 67 229 283 183 3,385 127 84 67 99999 AAAAAdddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt 179 99 34 110 109 19 3,292 60 51 34 1111100000 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll 67 111 33 120 174 164 93 67 33 33 1111111111 SSSSSpppppeeeeeccccciiiiiaaaaalllll LLLLLiiiiiqqqqquuuuuiiiiidddddiiiiitttttyyyyy FFFFFaaaaaccccciiiiillllliiiiitttttyyyyy88888 74 0 1111122222 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt''''' 0 0 0 0 ' ' 0 ' ' 0 0 0 ' ' 0 0 Biweekly averages of daily figures for two-week periods ending on dates indicated 2001 2002 Sept. 5r Sept. 19r Oct. 3' Oct. 17r Oct. 31r Nov. 14' Nov. 28r Dec. 12r Dec. 26 Jan. 9 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 8,311 44,485 9,514 13,892 11,863 8,314 9,626 8,587 9,219 9,751 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 42,883 42,992 44,254 45,739 44,469 43,504 42,766 42,081 45,197 44,748 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 31,735 30,969 33,254 32,469 32,390 30,969 31,528 30,727 32,660 32,567 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 11,149 12,023 11,000 13,270 12,079 12,535 11,238 11,355 12,537 12,180 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 40,046 75,454 42,768 46,361 44,253 39,283 41,154 39,314 41,879 42,318 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 38,555 37,389 40,022 45,363 42,913 37,741 39,707 37,938 40,018 40,655 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 1,490 38,064 2,745 997 1,340 1,542 1,447 1,375 1,860 1,662 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnnggggg aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 156 6,717 613 82 69 119 53 60 60 105 99999 AAAAAdddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt 29 6,622 538 8 10 84 22 26 24 83 1111100000 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll 127 95 75 74 59 35 32 34 36 22 1111111111 SSSSSpppppeeeeeccccciiiiiaaaaalllll LLLLLiiiiiqqqqquuuuuiiiiidddddiiiiitttttyyyyy FFFFFaaaaaccccciiiiillllliiiiitttttyyyyy88888 1111122222 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt''''' 0 ' ' 0 ' ' 0 0 ' ' 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 5. Total vault cash (line 2) less applied vault cash (line 3). ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash (line 3). 2. Excludes required clearing balances and adjustments to compensate for float and 7. Total reserves (line 5) less required reserves (line 6). includes other off-balance-sheet "as-of' adjustments. 8. Borrowing at the discount window under the terms and conditions established for the 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by Century Date Change Special Liquidity Facility in effect from October 1, 1999, through those banks and thrift institutions that are not exempt from reserve requirements. Dates refer April 7, 2000. to the maintenance periods in which the vault cash can be used to satisfy reserve require- 9. Consists of borrowing at the discount window under the terms and conditions estabments. lished for the extended credit program to help depository institutions deal with sustained 4. All vault cash held during the lagged computation period by "bound" institutions (that liquidity pressures. Because there is not the same need to repay such borrowing promptly as is, those whose required reserves exceed their vault cash) plus the amount of vault cash with traditional short-term adjustment credit, the money market effect of extended credit is applied during the maintenance period by "nonbound" institutions (that is, those whose vault similar to that of nonborrowed reserves. cash exceeds their required reserves) to satisfy current reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 2/ O 8/ n 0 2 Effective date Previous rate 2/ O 8/ n 0 2 Effective date Previous rate 2/ O 8/ n 0 2 Effective date Previous rate Boston 1.25 12/11/01 1.50 1.80 2/7/02 1.70 2.30 2/7/02 2.20 New York 12/11/01 Philadelphia 12/11/01 Cleveland 12/13/01 Richmond 12/13/01 Atlanta 12/13/01 Chicago 12/11/01 St. Louis 12/12/01 Minneapolis 12/13/01 Kansas City 12/13/01 Dallas 12/13/01 San Francisco 1.25 12/11/01 1.50 1.80 2/7/02 1.70 2.30 2/7/02 2.20 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 3.50-4.00 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^.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 4-4.75 4.75 17 8.5 8.5 17 4.75 4.75 In effect Feb. 8, 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. 1 5.00 5.00 6-6.5 6 Mar. 20 4.50-5.00 4.50 1991—Feb. 1 6 6 21 4.50 4.50 4 5.5-6 5.5 Apr. 18 4.00-4.50 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 • March 2002 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt Percentage of deposits Effective date Net transaction accounts2 1 $0million-$41.3 million3 33333 1111122222/////2222277777/////0000011111 2 More than $41.3 million4 1111100000 1111122222/////2222277777/////0000011111 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 27, 2001, 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 17, 2002, for institutions that report quarterly, foreign banks, and Edge Act corporations. the exemption was raised from $5.5 million to $5.7 million. 2. Transaction accounts include all deposits against which the account holder is permitted 4. The reserve requirement was reduced from 12 percent to 10 percent on April 2, 1992, to make withdrawals by negotiable or transferable instruments, payment orders of with- for institutions that report weekly, and on April 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 from 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 December 13, 1990, and to zero for the maintenance by check, draft, debit card, or similar order payable directly to third parties) are savings period that began December 27, 1990. For institutions that report quarterly, the reserve deposits, not transaction accounts. requirement on nonpersonal time deposits with an original maturity of less than 1.5 years was 3. The Monetary Control Act of 1980 requires that the amount of transaction accounts reduced from 3 percent to zero on January 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 October 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 27, 2001, 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 17, 2002, for institutions that report quarterly, the amount was decreased deposits with an original maturity of less than 1.5 years (see note 5). from $42.8 million to $41.3 million. Under the Garn-St. Germain Depository Institutions Act of 1982, the Board adjusts the amount of reservable liabilities subject to a zero percent reserve requirement each year for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 2001 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 11999988 11999999 22000000 May June July Aug. Sept. Oct. Nov. U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 3,550 0 8,676 624 2,165 718 2,899 348 772 3,075 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 450,835 464,218 477,904 47,112 40,363 42,001 55,231 42,268 44,132' 59,292 4 For new bills 450,835 464,218 477,904 47,112 40,363 42,001 55,231 42,268 44,132' 59,292 5 Redemptions 2,000 0 24,522 3,939 0 0 0 1,543 0' 0 Others within one year 6 Gross purchases 6,297 11,895 8,809 2,174 1,410 235 1,385 0 1,411 1,408 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 46,062 50,590 62,025 8,117 0 7,088 9,379 0 6,535 5,873 9 Exchanges ^19,434 -53,315 -54,656 -8,965 0 -7,667 -6,873 0 -11,809 -9,559 10 Redemptions 2,676 1,429 3,779 2,287 0 4,668 1,055 0 473' 0 One to five years 11 Gross purchases 12,901 19,731 14,482 2,685 1,428 4,193 810 851 22 1,920 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -37,777 -44,032 -52,068 -1,913 0 1,838 -9,379 0 -2,164 -3,073 14 Exchanges 37,154 42,604 46,177 6,508 0 7,667 5,290 0 11,809 7,967 Five to ten years 15 Gross purchases 2,294 4,303 5,871 657 0 756 935 0 422 459 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -5,908 -5,841 -6,801 -5,130 0 -8,926 1,043 0 -4,372 -1,824 18 Exchanges 7,439 7,583 6,585 2,457 0 0 1,043 0 0 1,592 More than ten years 19 Gross purchases 4,884 9,428 5,833 1,241 1,419 815 720 0 1,184 0 20 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -2,377 -717 -3,155 -1,074 0 0 -1,043 0 0 -975 22 Exchanges 4,842 3,139 1,894 0 0 0 540 0 0 0 All maturities 23 Gross purchases 29,926 45,357 43,670 7,380 6,422 6,716 6,749 1,199 3,811 6,862 24 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 4,676 1,429 28,301 6,226 0 4,668 1,055 1,543 473 0 Matched transactions 26 Gross purchases 4,430,457 4,413,430 4,399,257 398,039 367,462 392,721 406,143 508,129 431,887 377,247 27 Gross sales 4,434,358 4,431,685 4,381,188 397,600 366,411 394,381 405,627 515,429 425,110 378,129 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 1,592 7,472 388 6,211 -7,645 10,114 5,980 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 0 304,989 890,236 120,135 65,005 106,355 103,255 406,930 110,885 121,530 40 Gross sales 0 164,349 987,501 114,832 72,065 103,255 99,850 388,805 113,715 130,080 41 Net change in triparty obligations 0 140,640 -97,265 5,303 -7,060 3,100 3,405 18,125 -2,830 -8,550 42 Total net change in System Open Market Account . . 27,538 135,780 -63,877 6,895 412 3,488 9,616 10,480 7,284 -2,570 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 NonfinancialS tatistics • March 2002 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 2001 2001 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Oct. Nov. Dec. 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 1,046 1,049 1,070 1,079 1,066 1,123 1,064 1,047 Loans 4 To depository institutions 35 39 118 44 45 55 38 34 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Triparty obligations 7 Repurchase agreements—triparty2 39,350 28,000 42,500 37,700 50,250 45,050 36,500 50,250 Federal agency obligations3 8 Bought outright 10 10 10 10 10 10 10 10 y Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities3 550,765 552,758 553,524 555,584 555,997 544,287 550,314 551,675 n Bought outright4 550,765 552,758 553,524 555,584 555,997 544,287 550,314 551,675 12 Bills 185,299 185,817 186,591 186,484 186,389 182,652 184,845 182,074 13 Notes 262,376 263,851 263,846 265,920 265,944 258,389 262,378 265,941 14 Bonds 103,090 103,090 103,087 103,179 103,663 103,246 103,091 103,660 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 590,161 580,807 596,152 593,338 606,301 589,403 586,862 601,969 17 Items in process of collection 8,037 10,777 10,069 9,101 5,222 7,676 7,168 3,188 18 Bank premises 1,519 1,520 1,518 1,518 1,519 1,513 1,517 1,512 Other assets 19 Denominated in foreign currencies5 14,958 14,889 14,840 14,790 14,468 15,090 15,042 14,559 20 All other6 19,821 19,819 20,096 20,737 21,125 21,633 19,267 20,814 21 Total assets 648,787 642,105 656,989 653,807 662,945 649,682 644,165 656,334 LIABILITIES 22 Federal Reserve notes 595,220 595,194 598,181 602,936 610,501 585,342 593,031 611,757 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 28,219 19,970 32,834 24,775 31,084 38,735 27,342 25,004 25 Depository institutions 23,283 14,853 27,731 16,772 25,771 33,278 20,359 17,478 26 U.S. Treasury—General account 4,313 4,788 4,592 7,174 4,856 5,112 6,219 6,645 27 Foreign—Official accounts 351 86 294 622 233 75 528 61 28 Other 272 243 216 208 223 271 236 820 29 Deferred credit items 7,490 9,225 8,210 8,398 3,932 7,833 5,690 2,490 30 Other liabilities and accrued dividends7 2,687 2,681 2,664 2,605 2,594 2,773 2,745 2,399 31 Total liabilities 633,616 627,070 641,889 638,714 648,111 634,683 628,809 641,650 CAPITAL ACCOUNTS 32 Capital paid in 7,370 7,357 7,365 7,355 7,357 7,269 7,354 7,373 33 Surplus 6,733 6,730 6,728 6,725 6,712 6,738 6,732 7,311 34 Other capital accounts 1,069 949 1,007 1,012 765 993 1,270 0 35 Total liabilities and capital accounts 648,787 642,105 656,989 653,807 662,945 649,682 644,165 656334 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) 746,906 748,513 751,210 753,040 752,553 741,957 746,821 751,540 38 LESS: Held by Federal Reserve Banks 151,686 153,318 153,029 150,104 142,053 156,615 153,790 139,783 39 Federal Reserve notes, net 595,220 595,194 598,181 602,936 610,501 585,342 593,031 611,757 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 1,181 0 0 0 0 0 0 43 U.S. Treasury and agency securities 581,975 580,768 584,936 589,691 597,256 572,097 579,786 598.512 44 Total collateral 595,220 595,194 598,181 602,936 610,501 585,342 593,031 611,757 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 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 Oct. Nov. Dec. 1 Total loans 35 39 118 44 45 55 38 34 2 Within fifteen days' 31 17 94 40 41 44 32 33 3 Sixteen days to ninety days 5 22 24 3 3 11 7 1 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 550,765 552,758 553,524 555,584 555,997 544,287 550,314 551,675 6 Within fifteen days1 23,947 15,078 15,940 21,405 22,044 19,638 4,477 10,685 7 Sixteen days to ninety days 113,309 125,205 124,812 118,662 117,382 113,438 135,090 124,547 8 Ninety-one days to one year 130,323 129,286 129,591 131,635 132,180 134,127 127,556 130,627 9 One year to five years 151,091 151,093 151,093 151,727 151,727 147,078 151,093 153,158 10 Five years to ten years 53,251 53,251 53,247 53,317 53,341 50,204 53,252 53,338 11 More than ten years 78,845 78,845 78,842 78,838 79,322 79,802 78,846 79,320 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 • March 2002 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2001 IItteemm 1998 1999 2000 2001 Dec. Dec. Dec. Dec. May June July' Aug.r Sept.' Oct.r Nov. Dec. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 45.18 41.78 38.44 41.03 38.88 38.76 39.64 39.94 57.89 45.46 40.53r 41.03 2 Nonborrowed reserves4 45.07 41.46 38.23 40.96 38.67 38.53 39.36 39.76 54.50 45.34 40.45 40.96 3 Nonborrowed reserves plus extended credit5 45.07 41.46 38.23 40.96 38.67 38.53 39.36 39.76 54.50 45.34 40.45 40.96 4 Required reserves 43.67 40.48 37.01 39.39 37.86 37.40 38.23 38.73 38.87 44.14 39.05r 39.39 5 Monetary base6 513.49 593.09 583.82 634.38 599.08 601.87 607.70 615.52 639.78 630.00 629.06 634.38 Not seasonally adjusted 6 Total reserves7 45.31 41.89 38.53 41.12 39.46 38.32r 39.45 39.80 57.73 45.24 40.34 41.12 7 Nonborrowed reserves 45.19 41.57 38.32 41.05 39.24 38.09r 39.17 39.62 54.34 45.12 40.26 41.05 8 Nonborrowed reserves plus extended credit5 45.19 41.57 38.32 41.05 39.24 38.09r 39.17 39.62 54.34 45.12 40.26 41.05 9 Required reserves8 43.80 40.59 37.10 39.48 38.44 36.95 38.05 38.59 38.71 43.92 38.85' 39.48 10 Monetary base9 518.27 600.72 590.06 640.06 598.57 601.68r 608.24 614.56 638.01 628.35 629.90 640.06 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 45.21 41.65 38.47 40.96 39.37 38.22 39.34 39.67 57.57 45.06 40.16 40.96 12 Nonborrowed reserves 45.09 41.33 38.26 40.89 39.16 37.99 39.05 39.48 54.18 44.93 40.07r 40.89 13 Nonborrowed reserves plus extended credit5 45.09 41.33 38.26 40.89 39.16 37.99 39.05 39.48 54.18 44.93 40.07r 40.89 14 Required reserves 43.70 40.36 37.05 39.32 38.36 36.86 37.93 38.46 38.55 43.74 38.67r 39.32 15 Monetary base12 525.06 608.02 596.98 648.89 605.48 608.81 615.58 622.04 645.75 636.45 637.87 648.89 16 Excess reserves13 1.51 1.30 1.43 1.64 1.02 1.36 1.41 1.21 19.02 1.32 1.49r 1.64 17 Borrowings from the Federal Reserve .12 .32 .21 .07 .21 .23 .28 .18 3.39 .13 .08 .07 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 1998 1999 2000 2001 Dec. Dec. Dec. Dec. Sept.r Oct.r Nov.1" Dec. Seasonally adjusted Measures2 1 Ml 1,097.0 1,124.8 1,088.1 1,177.9 1,200.9 1,158.9 1,158.1 1,177.9 2 M2 4,384.1 4,651.8 4,937.4 5,449.3 5,379.7 5,371.9 5,413.8 5,449.3 3 M3 6,029.7 6,531.0 7,114.3 8,027.0 7,831.8 7,879.8 7,969.5 8,027.0 4 Debt 16,280.0r 17,363.5 18,282.4r n.a. 19,074.1 19,163.5 19,269.9 n.a. Ml components 5 Currency3 459.2 516.7 529.9 580.6 568.0 571.5 575.0 580.6 6 Travelers checks4 8.2 8.2 8.0 7.7 8.4 8.1 7.8 7.7 7 Demand deposits5 379.4 356.2 311.2 331.3 367.2 328.1 323.9 331.3 8 Other checkable deposits6 250.1 243.6 239.0 258.2 257.3 251.1 251.4 258.2 Nontransaction components 9 In M27 3,287.1 3,527.0 3,849.3 4,271.4 4,178.8 4,213.0 4,255.8 4,271.4 10 In M3 only8 1,645.6 1,879.2 2,176.9 2,577.7 2,452.1 2,507.9 2,555.7 2,577.7 Commercial banks 11 Savings deposits, including MMDAs 1,185.8 1,287.2 1,422.2 1,744.7 1,657.4 1,674.0 1,715.6 1,744.7 12 Small time deposits9 626.4 635.5 699.8 637.7 663.9 657.9 648.3 637.7 13 Large time deposits10 " 575.1 648.4 726.3 680.5 691.8 686.3 681.6 680.5 Thrift institutions 14 Savings deposits, including MMDAs 414.1 449.0 451.6 560.1 528.3 543.0 555.1 560.1 15 Small time deposits9 325.8 320.6 344.8 332.5 346.1 341.8 336.8 332.5 16 Large time deposits10 88.7 91.3 103.1 112.7 116.0 116.2 114.0 112.7 Money market mutual funds 17 Retail 735.1 834.7 930.9 996.6 983.0 996.3 999.9 996.6 18 Institution-only 535.5 628.1 783.1 1,182.7 1,064.4 1,132.2 1,160.5 1,182.7 Repurchase agreements and eurodollars 19 Repurchase agreements12 294.5 338.2 367.3 376.6 358.0 354.7 373.2 376.6 20 Eurodollars12 151.8 173.3 197.1 225.2 221.8 218.6 226.4 225.2 Debt components 21 Federal debt 3,751.1 3,660.1 3,400.4 n.a. 3,373.2 3,373.2 3,372.8 n.a. 22 Nonfederal debt 12,528.9 13,703.4 14,882.1 n.a. 15,700.9 15,790.3 15,897.1 n.a. Not seasonally adjusted Measures2 23 Ml 1,120.4 1,148.3 1,112.3 1,202.8 1,195.8 1,156.1 1,164.9 1,202.8 24 M2 4,406.4 4,675.9 4,966.0 5,479.7 5,364.4 5,343.8 5,402.9 5,479.7 25 M3 6,061.9 6,568.6 7,159.7 8,080.9 7,783.9 7,826.9 7,961.4 8,080.9 26 Debt 16,267.5 17,355.0 18,273.5 n.a. 18,990.4 19,078.2 19,190.0 n.a. Ml components 27 Currency3 463.3 521.5 535.2 585.6 566.3 569.9 575.8 585.6 28 Travelers checks4 8.4 8.4 8.1 7.9 8.3 8.1 7.9 7.9 29 Demand deposits5 395.9 371.8 326.5 347.3 366.2 328.2 329.4 347.3 30 Other checkable deposits6 252.8 246.6 242.5 262.1 255.1 249.9 251.8 262.1 Nontransaction components 31 In M27 3,286.0 3,527.6 3,853.7 4,277.0 4,168.6 4,187.7 4,238.1 4,277.0 32 In M3 only8 1,655.5 1,892.8 2,193.7 2,601.2 2,419.5 2,483.1 2,558.5 2,601.2 Commercial banks 33 Savings deposits, including MMDAs 1,186.0 1,288.8 1,426.9 1,750.2 1,655.4 1,661.6 1,710.2 1,750.2 34 Small time deposits9 626.5 635.7 700.0 637.8 664.2 658.9 649.6 637.8 35 Large time deposits10 " 574.5 647.7 725.6 680.0 687.1 682.6 681.8 680.0 Thrift institutions 36 Savings deposits, including MMDAs 414.2 449.6 453.1 561.8 527.6 538.9 553.3 561.8 37 Small time deposits9 325.8 320.7 345.0 332.5 346.2 342.3 337.5 332.5 38 Large time deposits10 88.6 91.2 103.0 112.6 115.2 115.5 114.1 112.6 Money market mutual funds 39 Retail 733.5 832.8 928.7 994.5 975.2 986.0 987.5 994.5 40 Institution-only 547.5 643.2 801.4 1,208.3 1,042.4 1,117.8 1,165.2 1,208.3 Repurchase agreements and eurodollars 41 Repurchase agreements12 290.4 334.7 364.2 373.2 355.3 349.9 371.6 373.2 42 Eurodollars12 154.5 176.0 199.5 227.1 219.4 217.3 225.7 227.1 Debt components 43 Federal debt 3,754.9 3,663.2 3,403.5 n.a. 3,319.1 3,318.2 3,352.4 n.a. 44 Nonfederal debt 12,512.5 13,691.8 14,870.0 n.a. 15,671.3 15,760.0 15,837.6 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • March 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 worldwide and 10. Large time deposits are those issued in amounts of $100,000 or more, excluding those at all banking offices in the United Kingdom and Canada. Excludes amounts held by booked at international banking facilities. depository institutions, the U.S. government, money market funds, and foreign banks and 11. Large time deposits at commercial banks less those held by money market funds, official institutions. Seasonally adjusted M3 is calculated by summing large time deposits, depository institutions, the U.S. government, and foreign banks and official institutions. institutional money fund balances, RP liabilities, and eurodollars, each seasonally adjusted 12. Includes both overnight and term. separately, and adding this result to seasonally adjusted M2. Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial sectors—the federal sector (U.S. government, not including government-sponsored enter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A15 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1 A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 2000 2001 2001 Dec. June' July' Aug.' Sept.' Oct.' Nov.' Dec. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Seasonally adjusted Assets 1 Bank credit 5,217.1r 5,327.0 5,330.4 5,346.2 5,422.0 5,397.7 5,424.6 5,405.2 5,425.0 5,420.2 5,402.3 5,399.2 ? Securities in bank credit l,334.3r 1,379.2 1,387.9 1,417.8 1,437.5 1,462.3 1,476.0 1,471.8 1,471.6 1,463.5 1,469.6 1,478.2 U.S. government securities 788.8 755.4 755.6 768.9 779.8 798.1 807.6 824.2 831.0 821.8 818.9 820.9 4 Other securities 545.5r 623.9 632.4 649.0 657.7 664.3 668.4 647.7 640.5 641.6 650.7 657.3 5 Loans and leases in bank credit2 .... 3,882.8 3,947.8 3,942.4 3,928.4 3,984.6 3,935.3 3,948.6 3,933.3 3,953.4 3,956.7 3,932.7 3,921.1 6 Commercial and industrial 1,088.4 1,080.8 1,070.5 1,063.8 1,067.0 1,047.7 1,036.5 1,021.9 1,030.7 1,030.4 1,022.0 1,016.2 7 Real estate 1,658.1 1,708.4 1,717.6 1,716.0 1,723.9 1,736.0 1,751.4 1,761.9 1,765.5 1,777.2 1,762.7 1,749.3 8 Revolving home equity 130.0 136.3 137.5 139.4 142.1 147.4 149.9 153.1 151.8 152.8 152.8 153.4 9 Other l,528.0r 1,572.2 1,580.0 1,576.6 1,581.8 1,588.6 1,601.4 1,608.8 1,613.7 1,624.5 1,609.9 1,595.8 in Consumer 541.2 551.8 549.9 548.1 548.7 551.3 559.7 560.0 561.0 560.3 560.3 559.7 11 Security3 171.8 172.1 170.2 171.1 181.7 150.1 150.8 141.4 144.0 136.5 142.0 148.4 17 Other loans and leases 423.3 434.7 434.3 429.3 463.2 450.2 450.2 448.2 452.1 452.3 445.8 447.5 n Interbank loans 250.2 267.7 273.0 287.8 353.8 302.9 282.2 290.0 285.8 288.8 278.5 306.1 14 Cash assets4 285.5 275.5 288.8 284.1 329.5 303.6 295.1 292.2 291.7 305.0 285.5 291.5 15 Other assets5 381.4' 408.5 420.2 433.8 469.9 487.9 486.6 478.1 480.2 481.6 469.1 479.9 16 Total assets6 6,070.3r 6,212.7 6,245.8 6,284.5 6,507.3 6,422.2 6,417.9 6,393.4 6,412.2 6,424.5 6,362.3 6,403.8 Liabilities 17 Deposits 3,848.2 4,045.5 4,071.4 4,083.7 4,209.1 4,161.3 4,177.8 4,213.2 4,202.5 4,213.8 4,204.8 4,212.6 18 Transaction 601.5 601.0 606.1 611.0 689.5 638.1 631.0 632.3 621.2 626.8 638.5 656.6 19 Nontransaction 3,246.7 3,444.4 3,465.3 3,472.7 3,519.6 3,523.3 3,546.8 3,580.9 3,581.3 3,587.0 3,566.3 3,556.0 ?0 Large time 932.9 980.0 975.2 965.1 964.4 976.4 976.3 973.0 971.4 977.8 974.3 969.8 ?1 Other 2,313.8 2,464.4 2,490.1 2,507.6 2,555.1 2,546.9 2,570.5 2,607.9 2,609.8 2,609.2 2,591.9 2,586.2 7? Borrowings 1,233.6' 1,209.6 1,221.6 1,232.5 1,286.4 1,264.8 1,237.6 1,239.0 1,227.1 1,246.8 1,224.9 1,257.8 ?3 From banks in the U.S 392.8 382.0 390.0 398.0 443.7 423.2 402.4 406.1 401.7 412.7 398.4 406.2 ?4 From others 840.8' 827.6 831.6 834.5 842.7 841.6 835.2 833.0 825.4 834.1 826.4 851.5 75 Net due to related foreign offices 225.7 184.5 190.7 192.9 169.5 176.9 161.2 147.5 166.6 160.0 144.2 137.9 26 Other liabilities 350.6' 354.8 334.8 346.4 397.9 369.0 404.8 357.6 362.3 356.3 358.2 362.4 27 Total liabilities 5,658.1r 5,794.3 5,818.6 5,855.5 6,062.9 5,972.0 5,981.4 5,957.4 5,958.5 5,976.9 5,932.0 5,970.7 28 Residual (assets less liabilities)7 412.2' 418.4 427.3 428.9 444.4 450.2 436.4 436.1 453.7 447.6 430.3 433.1 Not seasonally adjusted Assets ?9 Bank credit 5,253.7' 5,319.8 5,309.7 5,328.8 5,416.4 5,405.6 5,445.3 5,441.9 5,451.9 5,448.1 5,440.7 5,442.4 3(1 Securities in bank credit 1,339.8' 1,378.6 1,378.9 1,411.0 1,433.7 1,460.1 1,479.9 1,477.8 1,481.4 1,469.3 1,474.6 1,480.5 31 U.S. government securities 788.6 755.7 751.5 764.2 776.8 793.2 808.0 823.5 834.3 821.7 818.1 817.1 3? Other securities 551.2' 622.8 627.4 646.8 656.9 667.0 671.9 654.3 647.1 647.6 656.5 663.4 33 Loans and leases in bank credit2 .... 3,913.8' 3,941.2 3,930.8 3,917.8 3,982.7 3,945.5 3,965.4 3,964.0 3,970.4 3,978.8 3,966.2 3,961.9 34 Commercial and industrial 1,090.6 1,083.1 1,069.6 1,057.7 1,063.8 1,047.2 1,037.6 1,024.4 1,030.1 1,026.9 1,024.9 1,022.5 35 Real estate 1,662.7 1,707.8 1,716.6 1,719.1 1,727.5 1,739.7 1,757.3 1,767.0 1,770.7 1,784.6 1,766.3 1,755.4 36 Revolving home equity 130.1 136.4 137.9 140.2 143.4 148.6 150.7 153.2 152.1 153.0 153.0 153.4 37 Other 1,532.6' 1,571.3 1,578.7 1,578.9 1,584.1 1,591.1 1,606.6 1,613.8 1,618.6 1,631.6 1,613.4 1,602.1 38 Consumer 547.0 549.1 547.4 549.2 551.0 551.1 560.2 565.7 562.2 563.1 567.2 570.0 39 Credit cards and related plans . . 217.6 217.2 216.8 218.0 217.1 216.5 225.8 232.4 227.8 229.9 234.4 237.7 40 Other 329.5 331.8 330.6 331.3 333.9 334.5 334.3 333.3 334.5 333.2 332.8 332.3 41 Security3 184.2 167.6 162.5 162.6 175.5 156.4 157.5 152.2 150.6 149.9 155.1 158.8 4? Other loans and leases 429.3 433.8 434.7 429.2 465.0 451.1 452.8 454.7 456.7 454.4 452.6 455.2 43 Interbank loans 258.9 265.5 265.3 276.4 341.9 296.9 290.5 300.1 302.7 300.8 290.9 304.5 44 Cash assets4 305.9 271.6 279.7 272.3 324.8 303.9 303.9 312.8 298.5 309.3 305.9 313.5 45 Other assets5 387.7' 409.4 418.7 430.8 469.9 483.5 486.1 485.3 485.8 485.5 476.4 486.6 46 Total assets6 6,142.1' 6,200.2 6,207.1 6,240.8 6,484.9 6,420.3 6,455.0 6,467.8 6,467.8 6,472.4 6,440.7 6,474.3 Liabilities 47 Deposits 3,894.8 4,026.5 4,039.7 4,043.1 4,183.5 4,148.7 4,201.1 4,264.9 4,245.7 4,253.7 4,253.9 4,259.1 48 Transaction 630.7 600.7 599.8 597.2 683.4 632.2 637.2 662.7 630.8 635.2 667.4 695.6 49 Nontransaction 3,264.1 3,425.8 3,439.9 3,445.9 3,500.1 3,516.5 3,563.9 3,602.2 3,614.9 3,618.5 3,586.5 3,563.5 50 Large time 946.8 970.4 961.3 951.6 953.1 970.3 984.2 989.3 984.4 995.1 990.9 988.9 51 Other 2,317.3 2,455.4 2,478.6 2,494.3 2,547.1 2,546.3 2,579.7 2,612.9 2,630.6 2,623.4 2,595.6 2,574.6 52 Borrowings 1,236.4' 1,210.4 1,212.4 1,210.8 1,281.1 1,262.5 1,245.9 1,241.2 1,232.0 1,237.9 1,234.6 1,256.0 53 From banks in the U.S 394.7 382.8 386.7 389.8 433.9 418.0 403.2 407.5 403.5 410.8 402.0 406.5 54 From others 841.8' 827.6 825.6 821.0 847.2 844.5 842.7 833.7 828.5 827.1 832.6 849.6 55 Net due to related foreign offices 230.6 180.7 184.4 192.0 171.4 177.4 163.1 152.9 171.4 165.1 149.5 143.4 56 Other liabilities sss.a 352.7 330.4 346.3 398.3 369.2 407.2 360.2 364.5 359.1 360.3 366.1 57 Total liabilities 5,714.8r 5,770.3 5,766.8 5,792.2 6,034.4 5,957.8 6,017.4 6,019.2 6,013.5 6,015.8 5,998.4 6,024.5 58 Residual (assets less liabilities)7 427.3' 429.9 440.3 448.6 450.5 462.5 437.7 448.6 454.3 456.6 442.4 449.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • March 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 Dec. June July Aug.' Sept.' Oct.' Nov.' Dec. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Seasonally adjusted Assets 1 Bank credit 4,615.7' 4,723.2' 4,730.9' 4,749.4 4,829.0 4,811.7 4,831.8 4,819.0 4,834.4 4,833.9 4,812.5 4,815.8 2 Securities in bank credit l,127.4r 1,162.7' 1,165.1' 1,196.2 1,214.4 1,235.9 1,246.9 1,242.5 1,244.8 1,237.4 1,239.2 1,250.3 J U.S. government securities 720.0 698.6 706.2 720.2 728.4 741.9 748.3 766.8 773.3 765.0 763.1 765.2 4 Other securities 407.4' 464.0 458.9' 476.0 486.1 494.1 498.6 475.7 471.4 472.4 476.1 485.0 f5a Lo C an o s m a m nd e r l c e i a a s l e a s n i d n i b n a d n u k s tr c i r a e l d it2 .... 3,4 8 8 7 8 9 . . 3 4 r 3, 8 56 6 0 9 . . 5 7 ' 3, 8 5 6 6 4 5 . . 6 8 ' ' 3,5 85 5 9 3 . . 1 2 3,6 8 1 62 4 . . 1 5 3, 8 5 4 7 7 5 . . 7 8 3,5 8 8 3 4 6. . 4 9 3,5 8 7 2 6 6 . . 5 4 3, 8 5 3 8 1 9 . . 9 6 3,5 8 9 3 6 3 . . 4 0 3,5 8 7 2 3 5 . .1 2 3,5 82 6 1 5 . . 9 5 7 Real estate l,639.8r 1,690.3' 1,699.3 1,697.6 1,705.2 1,717.3 1,732.4 1,742.8 1,746.5 1,758.3 1,743.5 1,730.0 8 Revolving home equity 130.0 136.3 137.5 139.4 142.1 147.4 149.9 153.1 151.8 152.8 152.8 153.4 y Other 1,509.8 1,554.0' 1,561.8 1,558.2 1,563.1 1,569.9 1,582.5 1,589.7 1,594.7 1,605.6 1,590.7 1,576.6 10 Consumer 541.2 551.8 549.9 548.1 548.7 551.3 559.7 560.0 561.0 560.3 560.3 559.7 ii Security3 71.3 80.8 83.5 86.5 102.7 77.6 74.1 67.6 66.7 61.8 65.6 74.8 12 Other loans and leases 356.6 368.0 368.5' 362.0 395.9 381.9 382.2 379.8 383.5 383.1 378.7 379.1 13 Interbank loans 223.8 246.4 251.8 267.6 327.8 279.0 256.7 268.9 256.5 269.1 259.3 284.8 14 Cash assets4 245.5 239.1 252.0 246.6 284.0 264.4 257.7 255.8 254.8 268.1 248.8 256.2 15 Other assets5 346.9r 371.4' 389.8' 403.6 436.4 455.6 452.3 447.2 448.9 450.9 438.5 448.6 16 Total assets6 5,368.3r 5,514.5r 5,558.2r 5,600.2 5,809.7 5,741.1 5,728.3 5,719.1 5,724.3 5,751.2 5,686.4 5,732.8 Liabilities 17 Deposits 3,466.1 3,626.7 3,657.7 3,676.8 3,799.7 3,739.6 3,749.4 3,777.7 3,772.0 3,774.9 3,764.9 3,779.4 18 Transaction 590.8 591.6 596.9 601.5 677.2 627.3 620.3 621.2 610.3 615.2 627.4 645.8 19 Nontransaction 2,875.3 3,035.1 3,060.7 3,075.3 3,122.5 3,112.3 3,129.1 3,156.5 3,161.7 3,159.7 3,137.5 3,133.6 20 Large time 563.6 573.1 573.0 570.1 569.8 568.1 561.0 550.9 554.2 552.9 547.9 549.7 21 Other 2,311.7 2,462.1 2,487.8 2,505.2 2,552.7 2,544.2 2,568.1 2,605.6 2,607.5 2,606.8 2,589.6 2,583.9 22 Borrowings 993.1r 993.4' 1,010.5' 1,021.9 1,064.6 1,056.4 1,024.6 1,035.6 1,018.3 1,040.1 1,028.2 1,055.8 23 From banks in the U.S 370.7 359.5 367.7 377.4 413.1 399.3 378.1 381.5 380.1 390.5 378.9 377.6 24 From others 622.4' 633.9' 642.7' 644.4 651.5 657.1 646.5 654.1 638.2 649.6 649.3 678.2 25 Net due to related foreign offices 227.5 204.1 207.1 205.7 188.6 194.1 191.9 197.2 200.6 213.6 191.5 191.1 26 Other liabilities 277.4r 270.6' 256.4' 270.4 319.5 294.7 327.9 282.5 289.6 283.0 282.5 284.3 27 Total liabilities 4,964.1r 5,094.8r 5,131.7r 5,174.8 5,372.3 5,284.8 5,293.8 5,293.1 5,280.4 5,311.5 5,267.1 5,310.6 28 Residual (assets less liabilities)7 404.2' 419.7' 426.5' 425.5 437.3 456.4 434.5 426.0 443.9 439.7 419.3 422.3 Not seasonally adjusted Assets 29 Bank credit 4,641.6' 4,719.7 4,714.7' 4,738.5 4,825.1 4,816.7 4,849.7 4,846.0 4,857.9 4.852.7 4,841.6 4,846.8 30 Securities in bank credit 1,132.9' 1,162.0' 1,156.1' 1,189.4 1,210.6 1,233.7 1,250.8 1,248.5 1,254.6 1,243.3 1,244.2 1,252.6 31 U.S. government securities 719.8 699.0 702.2 715.6 725.3 736.9 748.7 766.1 776.6 764.9 762.3 761.4 32 Other securities 413.2' 463.0' 453.9' 473.8 485.3 496.8 502.1 482.3 478.0 478.4 482.0 491.1 33 Loans and leases in bank credit2 .... 3,508.6' 3,557.7 3,558.7 3,549.1 3,614.5 3,583.0 3,598.9 3,597.6 3,603.2 3,609.4 3,597.4 3,594.2 34 Commercial and industrial 879.2 873.1' 864.5' 854.2 859.2 846.9 836.8 826.5 830.9 829.2 825.6 824.2 35 Real estate 1,644.4' 1,689.7' 1,698.4' 1,700.7 1,708.8 1,721.0 1,738.4 1,747.9 1,751.7 1,765.7 1,747.2 1,736.2 36 Revolving home equity 130.1 136.4 137.9 140.2 143.4 148.6 150.7 153.2 152.1 153.0 153.0 153.4 37 Other 1,514.3' 1,553.2' 1,560.4 1.560.5 1,565.4 1,572.4 1,587.7 1,594.7 1.599.6 1,612.7 1,594.2 1,582.8 38 Consumer 547.0 549.1 547.4 549.2 551.0 551.1 560.2 565.7 562.2 563.1 567.2 570.0 39 Credit cards and related plans . . 217.6 217.2 216.8 218.0 217.1 216.5 225.8 232.4 227.8 229.9 234.4 237.7 40 Other 329.5 331.8' 330.6 331.3 333.9 334.5 334.3 333.3 334.5 333.2 332.8 332.3 41 Security3 77.6 78.2 78.6 81.8 97.6 80.8 79.3 73.7 71.9 68.0 74.3 80.6 42 Other loans and leases 360.3 367.7 369.9' 363.1 397.9 383.3 384.2 383.8 386.6 383.4 383.1 383.2 43 Interbank loans 232.5 244.2 244.0 256.2 315.9 273.0 265.0 279.0 273.4 281.2 271.7 283.2 44 Cash assets4 263.1 236.4 244.2 236.0 280.3 264.0 264.4 273.8 259.3 270.6 266.5 275.3 45 Other assets5 351.4' 373.6' 389.1' 400.9 436.6 451.6 451.8 452.8 453.0 452.8 444.3 454.0 46 Total assets6 5,424.9r 5,508.2' 5,526.0r 5,564.5 5,790.3 5,736.0 5,760.5 5,779.7 5,773.0 5,786.2 5,751.3 5,786.9 Liabilities 47 Deposits 3,501.9 3,614.8 3,636.2 3,647.9 3,782.2 3,734.4 3,769.4 3,816.3 3,808.3 3,803.2 3,801.1 3,807.5 48 Transaction 619.3 591.3 590.5 587.6 670.7 621.3 626.3 650.9 619.5 623.2 655.3 683.9 49 Nontransaction 2,882.6 3,023.5 3,045.7 3,060.3 3,111.4 3,113.1 3,143.1 3,165.4 3,188.8 3,179.9 3,145.8 3,123.6 50 Large time 567.5 570.4 569.3 568.3 566.7 569.5 565.8 555.0 560.6 558.9 552.5 551.4 51 Other 2,315.1 2,453.1 2,476.3 2,492.0 2,544.7 2,543.7 2,577.3 2,610.5 2,628.2 2,621.0 2,593.2 2,572.2 52 Borrowings 996.0' 994.3' 1,001.2' 1,000.2 1,059.3 1,054.1 1.033.0 1,037.8 1,023.2 1,031.2 1,038.0 1,054.0 53 From banks in the U.S 372.6 360.3 364.5 369.2 403.3 394.0 379.0 383.0 381.9 388.6 382.5 377.8 54 From others 623.4' 634.0' 636.7' 631.0 655.9 660.0 654.0 654.8 641.3 642.6 655.5 676.2 55 Net due to related foreign offices 227.6 203.4 204.0 206.1 188.0 194.2 193.7 197.6 200.8 214.7 191.1 192.8 56 Other liabilities 277.7' 270.0' 253.4' 270.8 318.8 294.7 330.2 283.1 289.9 284.2 282.3 286.4 57 Total liabilities 5,003.2r 5,082.6r 5,094.8r 5,125.0 5,348.2 5,277.4 5,326.3 5,334.8 5,322.2 5,333.3 5,312.5 5,340.7 58 Residual (assets less liabilities)7 421.7' 425.6' 431.2' 439.5 442.0 458.6 434.2 445.0 450.8 452.9 438.9 446.2 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 Dec/ June' July' Aug.' Sept.' Oct.' Nov.' Dec. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Seasonally adjusted Assets 1 Bank credit 2,576.0 2,633.6 2,624.7 2,624.8 2,691.7 2,632.9 2,634.2 2,600.0 2,622.5 2,617.5 2,594.4 2,596.2 7 Securities in bank credit 583.7 613.3 608.7 629.9 641.2 648.7 653.4 636.3 643.3 631.8 633.7 644.0 3 U.S. government securities 357.9 352.5 352.1 359.5 362.5 363.2 366.0 377.1 385.4 375.5 374.4 377.1 4 Trading account 28.8 35.1 38.3 36.3 37.9 35.8 40.4 34.1 43.5 36.9 31.2 30.2 Investment account 329.0 317.4 313.8 323.2 324.6 327.4 325.6 343.0 341.9 338.6 343.2 346.9 6 Other securities 225.8 260.8 256.6 270.4 278.6 285.5 287.4 259.1 257.8 256.3 259.3 266.9 7 Trading account 119.0 143.5 140.8 153.1 161.0 165.8 165.1 128.0 137.0 134.0 130.0 124.4 8 Investment account 106.8 117.3 115.9 117.3 117.7 119.7 122.3 131.2 120.8 122.4 129.2 142.5 9 State and local government . . 26.3 27.9 27.8 27.6 27.5 26.8 27.1 26.9 26.8 26.8 27.0 27.1 in Other 80.6 89.4 88.1 89.7 90.2 92.9 95.2 104.3 94.1 95.5 102.2 115.4 ii Loans and leases in bank credit2 .... 1,992.3 2,020.3 2,015.9 1,994.9 2,050.6 1,984.2 1,980.9 1,963.7 1,979.2 1,985.7 1,960.7 1,952.2 17, Commercial and industrial 593.6 571.4 562.3 557.2 561.2 545.7 535.4 524.1 529.1 530.9 523.2 520.5 13 Bankers acceptances 1.0 .7 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 14 Other 592.5 570.7 562.3 557.2 561.2 545.7 535.4 524.1 529.1 530.9 523.2 520.5 15 Real estate 827.8 855.1 855.7 846.0 845.9 842.4 851.7 855.1 859.8 871.0 855.8 844.1 16 Revolving home equity 84.2 87.1 87.1 87.6 89.4 92.5 94.4 96.2 95.5 95.9 95.8 96.4 17 Other 743.7 768.0 768.7 758.4 756.5 749.9 757.3 759.0 764.2 775.1 760.0 747.6 18 Consumer 243.4 254.4 254.2 251.4 253.2 242.8 245.3 245.7 247.9 247.1 245.9 243.8 19 Security3 64.6 72.6 75.2 78.1 94.0 69.8 66.3 59.6 58.8 53.8 57.7 66.5 20 Federal funds sold to and repurchase agreements with broker-dealers 49.2 54.8 59.6 63.5 66.2 56.4 52.3 45.6 45.5 40.2 43.6 52.1 71 Other 15.3 17.8 15.5 14.5 27.8 13.4 14.0 14.0 13.3 13.6 14.1 14.4 77, State and local government 12.6 13.4 14.2 14.2 14.4 15.3 15.6 14.9 15.7 15.1 14.7 14.6 23 Agricultural 10.1 10.4 10.1 9.5 9.2 9.2 9.4 9.3 9.3 9.3 9.3 9.2 24 Federal funds sold to and repurchase agreements with others 21.2 25.6 31.0 31.9 32.6 28.8 30.6 29.3 30.7 30.3 29.2 27.7 75 All other loans 87.9 84.8 81.6 75.6 109.1 104.5 100.8 94.4 101.7 102.3 89.8 91.3 76 Lease-financing receivables 131.1 132.6 131.7 131.0 131.0 125.7 125.7 131.3 126.1 125.9 135.2 134.5 77 Interbank loans 140.2 131.8 136.5 150.9 207.3 175.8 152.8 165.8 154.9 165.1 156.7 176.9 28 Federal funds sold to and repurchase agreements with commercial banks 66.3 73.1 71.6 80.5 131.5 94.3 90.1 96.3 85.9 96.2 88.9 105.5 79 Other 73.9 58.7 64.9 70.4 75.8 81.5 62.7 69.5 69.0 68.9 67.8 71.5 30 Cash assets4 145.7 136.3 146.8 140.7 174.8 155.3 151.2 146.8 146.9 155.1 142.7 146.5 31 Other assets5 255.4 261.7 270.8 282.7 308.2 323.6 321.5 313.4 313.1 316.7 307.5 317.6 32 Total assets6 3,080.4 3,125.6 3,140.7 3,160.9 3,343.9 3,248.2 3,220.1 3,184.6 3,197.5 3,214.2 3,159.2 3,195.2 Liabilities 33 Deposits 1,691.9 1,740.3 1,752.4 1,754.8 1,860.1 1,792.3 1,792.5 1,798.3 1,798.6 1,799.0 1,791.0 1,800.3 34 Transaction 300.0 300.5 306.8 304.4 376.1 323.5 320.8 321.5 317.5 318.4 325.5 333.0 35 Nontransaction 1,391.9 1,439.8 1,445.6 1,450.3 1,483.9 1,468.8 1,471.7 1,476.9 1,481.2 1,480.5 1,465.5 1,467.3 36 Large time 269.3 274.6 271.6 264.9 264.7 260.3 251.4 246.6 249.1 247.6 243.7 246.0 37 Other 1,122.6 1,165.2 1,174.0 1,185.5 1,219.2 1,208.6 1,220.3 1,230.3 1,232.1 1,233.0 1,221.8 1,221.4 38 Borrowings 666.1 659.4 672.9 678.3 709.6 692.1 658.2 662.4 652.7 670.0 654.8 675.8 39 From banks in the U.S 214.9 211.1 218.9 226.5 257.6 233.6 212.6 215.0 215.9 224.4 214.1 207.7 40 From others 451.2 448.3 454.0 451.7 452.0 458.5 445.7 447.3 436.8 445.7 440.8 468.1 41 Net due to related foreign offices 206.7 190.9 192.4 190.3 178.0 184.6 181.7 187.3 189.9 200.8 182.0 182.7 42 Other liabilities 226.2 214.4 197.6 210.2 257.5 230.8 263.0 217.0 224.3 217.4 217.7 218.1 43 Total liabilities 2,790.8 2,805.0 2,815.4 2,833.5 3,005.1 2,899.8 2,895.4 2,865.0 2,865.5 2,887.2 2,845.5 2,876.9 44 Residual (assets less liabilities)7 289.5 320.7 325.3 327.4 338.8 348.4 324.7 319.6 332.0 327.0 313.7 318.3 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • March 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 Dec.r June' July' Aug/ Sept.' Oct/ Nov/ Dec. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Not seasonally adjusted Assets 45 Bank credit 2,597.4 2,628.2 2,608.4 2,610.6 2,682.3 2,636.1 2,650.9 2,622.4 2,646.4 2,634.3 2,618.8 2,615.0 46 Securities in bank credit 590.0 611.0 599.9 623.8 637.6 648.9 659.1 643.2 655.4 639.2 639.8 645.4 47 U.S. government securities 358.5 351.2 348.2 355.5 359.7 360.7 368.2 377.5 391.1 376.9 374.7 372.5 48 Trading account 28.9 35.0 37.9 35.9 37.7 35.5 40.6 34.1 44.2 37.1 31.2 29.9 49 Investment account 329.6 316.2 310.3 319.7 322.0 325.1 327.6 343.3 346.9 339.8 343.4 342.6 50 Mortgage-backed securities . 219.0 229.7 229.1 241.8 247.3 257.9 256.1 269.3 270.8 265.2 270.5 269.5 51 Other 110.6 86.5 81.3 77.9 74.8 67.3 71.5 74.0 76.1 74.6 72.9 73.2 52 One year or less 30.6 25.5 21.1 20.1 20.1 18.2 27.0 26.4 29.4 28.1 25.2 25.0 53 One to five years 45.5 34.4 34.3 33.8 34.6 31.9 30.3 35.2 34.0 34.5 35.7 35.9 54 More than five years .... 34.5 26.6 25.9 24.0 20.1 17.1 14.2 12.3 12.7 12.0 12.1 12.3 55 Other securities 231.5 259.8 251.7 268.3 277.9 288.2 290.9 265.8 264.4 262.3 265.1 272.9 56 Trading account 122.0 142.9 138.1 151.9 160.5 167.4 167.1 131.2 140.5 137.1 133.0 127.2 57 Investment account 109.5 116.9 113.6 116.4 117.4 120.8 123.8 134.5 123.9 125.2 132.1 145.7 58 State and local government . 26.9 27.8 27.3 27.3 27.4 27.1 27.4 27.6 27.4 27.5 27.6 27.7 59 Other 82.6 89.1 86.4 89.0 89.9 93.8 96.4 107.0 96.5 97.8 104.5 118.0 60 Loans and leases in bank credit2 . .. 2,007.4 2,017.2 2,008.5 1,986.8 2,044.7 1,987.2 1,991.8 1,979.2 1,991.0 1,995.1 1,979.1 1,969.6 61 Commercial and industrial 592.7 573.0 562.3 554.0 559.7 545.3 536.5 523.3 528.4 527.2 522.6 520.6 62 Bankers acceptances 1.0 .7 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 63 Other 591.6 572.3 562.3 554.0 559.7 545.3 536.5 523.3 528.4 527.2 522.6 520.6 64 Real estate 832.4 853.8 854.3 847.4 847.8 845.0 857.2 860.1 866.5 878.5 860.0 847.5 65 Revolving home equity 84.1 87.4 87.7 88.7 90.5 93.4 94.9 96.0 95.8 96.0 95.8 95.9 66 Other 450.4 464.8 465.0 457.7 454.8 440.1 449.5 452.4 458.5 469.5 452.3 440.5 67 Commercial 298.0 301.6 301.5 301.0 302.4 311.5 312.8 311.7 312.2 313.0 312.0 311.0 68 Consumer 245.5 253.8 252.4 250.2 251.9 240.4 243.6 247.8 247.2 247.3 248.0 247.6 69 Credit cards and related plans . 82.5 88.0 87.3 85.1 84.6 74.3 76.5 80.1 78.8 80.0 80.6 80.7 70 Other 163.0 165.9 165.1 165.1 167.3 166.1 167.2 167.6 168.4 167.4 167.4 167.0 71 Security3 70.6 70.2 70.5 73.6 89.1 72.9 71.0 65.5 63.4 59.6 66.2 72.5 72 Federal funds sold to and repurchase agreements with broker-dealers 53.8 53.0 55.9 59.9 62.8 58.9 56.0 50.0 49.0 44.6 50.0 56.8 73 Other 16.8 17.3 14.6 13.7 26.3 14.0 15.1 15.4 14.3 15.0 16.2 15.7 74 State and local government 12.6 13.4 14.2 14.2 14.4 15.3 15.6 14.9 15.7 15.1 14.7 14.6 75 Agricultural 10.1 10.4 10.2 9.6 9.3 9.3 9.4 9.3 9.3 9.2 9.2 9.2 76 Federal funds sold to and repurchase agreements with others 21.2 25.6 31.0 31.9 32.6 28.8 30.6 29.3 30.7 30.3 29.2 27.7 77 All other loans 90.9 84.8 82.4 75.7 110.3 104.8 102.2 97.4 103.9 102.1 94.0 94.7 78 Lease-financing receivables 131.4 132.2 131.2 130.2 129.6 125.5 125.6 131.6 125.9 125.7 135.1 135.0 79 Interbank loans 144.0 136.2 136.4 145.4 199.5 168.7 153.8 170.2 158.3 167.9 164.1 177.0 80 Federal funds sold to and repurchase agreements with commercial banks 68.1 75.5 71.5 77.6 126.5 90.5 90.7 98.8 87.8 97.8 93.0 105.5 81 Other 76.0 60.7 64.8 67.8 73.0 78.2 63.1 71.4 70.6 70.1 71.0 71.5 82 Cash assets4 157.1 134.7 140.4 132.9 170.5 154.2 152.6 158.3 147.7 156.5 155.2 159.3 83 Other assets5 259.9 264.0 270.0 280.1 308.4 319.6 321.0 319.0 317.3 318.6 313.3 323.0 84 Total assets6 3,121.5 3,125.2 3,117.3 3,130.6 3,322.3 3,239.4 3,238.6 3,228.5 3,229.5 3,236.7 3,209.2 3,232.5 Liabilities 85 Deposits 1,709.7 1,739.8 1,744.2 1,738.8 1,848.8 1,785.7 1,799.8 1,817.5 1,813.1 1,808.7 1,809.4 1,813.1 86 Transaction 317.9 300.6 302.0 293.4 369.7 317.8 323.3 340.5 320.9 322.3 344.6 358.5 87 Nontransaction 1,391.9 1,439.2 1,442.2 1,445.4 1,479.1 1,467.9 1,476.5 1,477.0 1,492.2 1,486.4 1,464.7 1,454.7 88 Large time 273.1 272.0 267.9 263.1 261.7 261.7 256.2 250.7 255.5 253.6 248.4 247.6 89 Other 1,118.7 1,167.3 1,174.3 1,182.3 1,217.5 1,206.3 1,220.2 1,226.3 1,236.7 1,232.8 1,216.3 1,207.1 90 Borrowings 668.9 660.2 663.6 656.6 704.3 689.8 666.6 664.5 657.6 661.2 664.6 674.1 91 From banks in the U.S 216.8 211.9 215.6 218.3 247.8 228.4 213.4 216.5 217.7 222.5 217.7 208.0 92 From nonbanks in the U.S 452.1 448.3 448.0 438.3 456.5 461.4 453.2 448.0 439.9 438.7 446.9 466.1 93 Net due to related foreign offices 206.7 190.3 189.2 190.6 177.5 184.8 183.5 187.6 190.1 201.9 181.7 184.4 94 Other liabilities 226.6 213.8 194.7 210.6 256.7 230.8 265.3 217.6 224.7 218.6 217.5 220.2 95 Total liabilities 2,811.9 2,804.1 2,791.7 2,796.6 2,987.3 2,891.1 2,915.1 2,887.2 2,885.4 2,890.5 2,873.1 2,891.8 96 Residual (assets less liabilities)7 309.5 321.1 325.6 334.0 334.9 348.3 323.4 341.3 344.1 346.2 336.1 340.6 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 Dec/ Juner Julyr Aug/ Sept/ Oct/ Nov/ Dec. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Seasonally adjusted Assets 1 Bank credit 2,039.8 2,089.6 2,106.2 2,124.6 2,137.2 2,178.8 2,197.6 2,219.0 2,211.9 2,216.3 2,218.1 2,219.6 7 Securities in bank credit 543.8 549.4 556.3 566.3 573.2 587.2 593.5 606.2 601.5 605.6 605.6 606.3 U.S. government securities 362.1 346.1 354.1 360.7 365.8 378.7 382.3 389.6 387.9 389.5 388.7 388.1 4 Other securities 181.7 203.2 202.2 205.5 207.4 208.6 211.2 216.6 213.6 216.1 216.9 218.2 Loans and leases in bank credit2 .... 1,496.0 1,540.2 1,549.9 1,558.4 1,564.0 1,591.6 1,604.0 1,612.8 1,610.4 1,610.7 1,612.5 1,613.3 6 Commercial and industrial 285.8 298.2 302.3 301.9 300.9 302.0 301.0 302.3 302.8 302.1 302.0 301.4 7 Real estate 812.0 835.2 843.6 851.6 859.3 874.9 880.7 887.7 886.7 887.3 887.8 885.9 8 Revolving home equity 45.9 49.1 50.5 51.8 52.7 54.9 55.5 57.0 56.2 56.8 57.0 57.0 9 Other 766.1 786.1 793.1 799.8 806.6 820.0 825.2 830.7 830.5 830.5 830.7 829.0 in Consumer 297.8 297.4 295.8 296.7 295.5 308.5 314.4 314.2 313.2 313.1 314.4 315.9 ii Security3 6.8 8.2 8.3 8.4 8.7 7.8 7.8 8.0 7.8 8.0 7.9 8.2 i? Other loans and leases 93.7 101.2 99.9 99.8 99.6 98.4 100.1 100.6 99.9 100.3 100.5 101.8 n Interbank loans 83.6 114.6 115.2 116.7 120.5 103.1 103.9 103.1 101.6 104.0 102.6 107.8 14 Cash assets4 99.7 102.8 105.1 105.9 109.2 109.1 106.5 108.9 107.9 113.0 106.1 109.8 15 Other assets5 91.5 109.7 119.0 120.9 128.2 132.0 130.8 133.8 135.8 134.2 131.0 131.0 16 Total assets6 2,288.0 2,388.9 2,417.5 2,439.3 2,465.7 2,492.9 2,508.2 2,534.5 2,526.8 2,537.1 2,527.2 2,537.7 Liabilities 17 Deposits 1,774.2 1,886.4 1,905.2 1,922.0 1,939.6 1,947.3 1,956.8 1,979.4 1,973.4 1,975.9 1,973.9 1,979.1 18 Transaction 290.8 291.1 290.1 297.0 301.1 303.8 299.5 299.7 292.8 296.7 301.9 312.8 19 Nontransaction 1,483.4 1,595.3 1,615.1 1,625.0 1,638.5 1,643.5 1,657.4 1,679.6 1,680.5 1,679.2 1,672.0 1,666.3 ?n Large time 294.3 298.5 301.4 305.2 305.1 307.8 309.5 304.3 305.1 305.3 304.2 303.8 ?i Other 1,189.1 1,296.9 1,313.7 1,319.7 1,333.5 1,335.7 1,347.9 1,375.3 1,375.4 1,373.9 1,367.8 1,362.6 ??. Borrowings 327.0 334.1 337.6 343.6 355.0 364.3 366.4 373.2 365.6 370.0 373.4 379.9 73 From banks in the U.S 155.8 148.4 148.8 150.9 155.6 165.7 165.6 166.5 164.2 166.1 164.8 169.9 ?4 From others 171.2 185.7 188.7 192.7 199.4 198.6 200.8 206.7 201.4 203.9 208.6 210.1 75 Net due to related foreign offices 20.9 13.1 14.7 15.5 10.5 9.5 10.2 10.0 10.7 12.8 9.4 8.4 26 Other liabilities 51.2 56.2 58.8 60.2 62.0 63.9 64.9 65.5 65.3 65.6 64.9 66.2 27 Total liabilities 2,173.3 2,289.8 2,316.3 2,341.3 2,367.2 2,384.9 2,398.4 2,428.1 2,415.0 2,424.3 2,421.6 2,433.7 28 Residual (assets less liabilities)7 114.7 99.0 101.2 98.1 98.5 108.0 109.8 106.4 111.9 112.8 105.6 104.0 Not seasonally adjusted Assets 79 Bank credit 2,044.2 2,091.5 2,106.3 2,127.9 2,142.8 2,180.6 2,198.7 2,223.6 2,211.4 2,218.4 2,222.8 2,231.8 30 Securities in bank credit 542.9 551.0 556.2 565.6 573.1 584.8 591.7 605.2 599.2 604.1 604.5 607.1 31 U.S. government securities 361.3 347.8 354.0 360.1 365.7 376.3 380.5 388.7 385.6 388.0 387.6 388.9 37 Other securities 181.7 203.2 202.2 205.5 207.4 208.6 211.2 216.6 213.6 216.1 216.9 218.2 33 Loans and leases in bank credit2 .... 1,501.3 1,540.5 1,550.1 1,562.3 1,569.7 1,595.8 1,607.0 1,618.4 1,612.2 1,614.3 1,618.3 1,624.7 34 Commercial and industrial 286.6 300.0 302.1 300.2 299.4 301.6 300.3 303.2 302.5 302.0 302.9 303.6 35 Real estate 812.0 835.9 844.1 853.4 861.0 876.0 881.1 887.8 885.2 887.2 887.2 888.7 36 Revolving home equity 46.0 49.1 50.2 51.5 52.9 55.2 55.8 57.2 56.3 57.0 57.2 57.4 37 Other 766.0 786.8 793.9 801.9 808.2 820.8 825.3 830.6 828.9 830.2 830.0 831.3 38 Consumer 301.5 295.2 295.0 299.0 299.1 310.7 316.5 318.0 315.1 315.7 319.2 322.4 39 Credit cards and related plans . . 135.1 129.3 129.5 132.9 132.5 142.3 149.3 152.3 149.0 150.0 153.8 157.0 4n Other 166.5 166.0 165.5 166.1 166.6 168.4 167.2 165.7 166.1 165.8 165.4 165.4 41 Security3 7.0 8.0 8.1 8.2 8.5 7.9 8.2 8.2 8.5 8.4 8.1 8.1 4? Other loans and leases 94.1 101.3 100.8 101.5 101.7 99.6 100.8 101.3 101.0 101.0 100.9 101.9 43 Interbank loans 88.5 108.0 107.7 110.8 116.5 104.3 111.2 108.8 115.1 113.3 107.7 106.2 44 Cash assets4 106.0 101.7 103.8 103.1 109.9 109.8 111.8 115.5 111.6 114.1 111.3 116.0 45 Other assets5 91.5 109.7 119.0 120.9 128.2 132.0 130.8 133.8 135.8 134.2 131.0 131.0 46 Total assets6 2,303.4 2,383.0 2,408.7 2,433.9 2,468.0 2,496.6 2,522.0 2,551.3 2,543.5 2,549.5 2,542.2 2,554.4 Liabilities 47 Deposits 1,792.2 1,875.0 1,892.0 1,909.1 1,933.3 1,948.7 1,969.7 1,998.9 1,995.2 1,994.4 1,991.7 1,994.3 48 Transaction 301.5 290.7 288.6 294.3 301.0 303.5 303.0 310.4 298.6 300.9 310.7 325.5 49 Nontransaction 1,490.7 1,584.3 1,603.4 1,614.9 1,632.3 1,645.2 1,666.6 1,688.5 1,696.6 1,693.5 1,681.0 1,668.9 5n Large time 294.3 298.5 301.4 305.2 305.1 307.8 309.5 304.3 305.1 305.3 304.2 303.8 51 Other 1,196.4 1,285.8 1,302.0 1,309.6 1,327.2 1,337.4 1,357.1 1,384.2 1,391.5 1,388.2 1,376.9 1,365.1 57 Borrowings 327.0 334.1 337.6 343.6 355.0 364.3 366.4 373.2 365.6 370.0 373.4 379.9 53 From banks in the U.S 155.8 148.4 148.8 150.9 155.6 165.7 165.6 166.5 164.2 166.1 164.8 169.9 54 From others 171.2 185.7 188.7 192.7 199.4 198.6 200.8 206.7 201.4 203.9 208.6 210.1 55 Net due to related foreign offices 20.9 13.1 14.7 15.5 10.5 9.5 10.2 10.0 10.7 12.8 9.4 8.4 56 Other liabilities 51.2 56.2 58.8 60.2 62.0 63.9 64.9 65.5 65.3 65.6 64.9 66.2 57 Total liabilities 2,191.3 2,278.4 2,303.1 2,328.4 2,360.9 2,386.3 2,411.2 2,447.6 2,436.8 2,442.8 2,439.4 2,448.9 58 Residual (assets less liabilities)7 112.1 104.6 105.7 105.5 107.1 110.2 110.8 103.7 106.7 106.7 102.8 105.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • March 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 Dec. June July Aug. Sept.' Oct.' Nov.' Dec. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Seasonally adjusted Assets 1 Bank credit 601.3r 603.8r 599.5' 596.8' 593.1 586.0 592.8 586.2 590.6 586.3 589.8 583.4 2 Securities in bank credit 206.9r 216.6' 222.9' 221.6' 223.1 226.4 229.1 229.4 226.8 226.1 230.3 227.9 3 U.S. government securities 68.9 56.7r 49.3' 48.6' 51.4 56.2 59.3 57.4 57.7 56.8 55.8 55.7 4 Other securities 138.1' 159.8r 173.5' 173.0' 171.6 170.2 169.8 172.0 169.1 169.2 174.5 172.2 5 Loans and leases in bank credit2 .... 394.4 387.3 376.6 375.2 370.0 359.5 363.7 356.8 363.8 360.3 359.5 355.5 6 Commercial and industrial 209.0 211.1 205.9 204.8 205.0 200.0 200.1 195.6 198.9 197.4 196.8 194.2 7 Real estate 18.3 18.1 18.2 18.4 18.7 18.7 18.9 19.1 19.0 18.9 19.2 19.2 8 Security3 100.4 91.3 86.7 84.7 79.0 72.5 76.7 73.8 77.4 74.7 76.4 73.6 9 Other loans and leases 66.7 66.7 65.8 67.3 67.3 68.3 68.0 68.4 68.6 69.2 67.0 68.4 10 Interbank loans 26.4 21.3 21.2 20.2 26.0 24.0 25.5 21.1 29.3 19.6 19.2 21.4 11 Cash assets4 40.0 36.3 36.8 37.5 45.5 39.2 37.4 36.5 37.0 36.9 36.6 35.3 12 Other assets5 34.6 37.1 30.4 30.1 33.5 32.4 34.3 31.0 31.3 30.7 30.6 31.3 13 Total assets6 701.9r 698.2r 687.6r 684.2r 697.6 681.1 689.6 674.3 687.9 673.2 675.9 671.0 Liabilities 14 Deposits 382.1 418.8 413.7 407.0 409.4 421.7 428.4 435.5 430.5 438.9 439.9 433.2 15 Transaction 10.7 9.5 9.2 9.5 12.3 10.8 10.7 11.1 10.9 11.6 11.2 10.8 16 Nontransaction 371.5 409.3 404.6 397.4 397.1 411.0 417.7 424.4 419.5 427.3 428.8 422.4 17 Borrowings 240.5 216.1 211.2 210.6 221.8 208.4 213.0 203.4 208.8 206.7 196.6 202.0 18 From banks in the U.S 22.1 22.5 22.3 20.6' 30.5 23.9 24.2 24.5 21.6 22.2 19.5 28.6 19 From others 218.4 193.7 188.9 190.0 191.2 184.5 188.8 178.9 187.2 184.5 177.1 173.4 20 Net due to related foreign offices -1.8 -19.6 -16.4' -12.8' -19.1 -17.2 -30.8 -49.7 -34.0 -53.6 -47.3 -53.1 21 Other liabilities 73.2r 84.2r 78.4' 76.0' 78.4 74.3 77.0 75.1 72.7 73.3 75.6 78.1 22 Total liabilities 694.0r 699.5r 686.9r 680.8r 690.5 687.3 687.6 664.3 678.0 665.4 664.9 660.1 23 Residual (assets less liabilities)7 8.0- -1.3r .8' 3.4' 7.1 -6.2 1.9 10.1 9.9 7.9 10.9 10.8 Not seasonally adjusted Assets 24 Bank credit 612.1' 600. r 595.0' 590.3' 591.3 588.9 595.6 595.8 594.0 595.5 599.1 595.6 25 Securities in bank credit 206.9' 216.6r 222.9' 221.6' 223.1 226.4 229.1 229.4 226.8 226.1 230.3 227.9 26 U.S. government securities 68.9 56.7' 49.3' 48.6' 51.4 56.2 59.3 57.4 57.7 56.8 55.8 55.7 27 Trading account 11.8 13.3' 12.4' 11.7' 13.1 14.3 13.4 12.7 12.9 12.8 12.5 11.5 28 Investment account 57.0 43.4' 36.9' 36.9' 38.3 41.9 45.9 44.7 44.8 44.0 43.3 44.2 29 Other securities 138.1' 159.8' 173.5' 173.0' 171.6 170.2 169.8 172.0 169.1 169.2 174.5 172.2 30 Trading account 92.3r 106.4 107.9' 109.4' 108.5 107.7 108.3 108.8 107.5 107.4 110.4 110.6 31 Investment account 45.8r 53.5' 65.7' 63.6' 63.1 62.6 61.5 63.1 61.6 61.8 64.1 61.6 32 Loans and leases in bank credit2 .... 405.2 383.5 372.1 368.7 368.3 362.5 366.6 366.5 367.2 369.4 368.8 367.7 33 Commercial and industrial 211.4 210.0 205.2 203.5 204.6 200.2 200.8 197.9 199.2 197.7 199.3 198.3 34 Real estate 18.3 18.1 18.2 18.4 18.7 18.7 18.9 19.1 19.0 18.9 19.2 19.2 35 Security3 106.6 89.4 83.9 80.8 77.9 75.6 78.2 78.6 78.8 81.8 80.8 78.2 36 Other loans and leases 69.0 66.1 64.8 66.0 67.1 67.9 68.6 71.0 70.2 71.0 69.5 71.9 37 Interbank loans 26.4 21.3 21.2 20.2 26.0 24.0 25.5 21.1 29.3 19.6 19.2 21.4 38 Cash assets4 42.8 35.2 35.5 36.3 44.5 39.9 39.5 39.0 39.1 38.8 39.4 38.2 39 Other assets5 36.3 35.8 29.6 29.8 33.2 31.9 34.3 32.5 32.8 32.7 32.1 32.6 40 Total assets6 717.2r 692.0r 681.1r 676.3r 694.6 684.3 694.5 688.0 694.8 686.2 689.4 687.4 Liabilities 41 Deposits 392.9 411.6 403.5 395.1 401.4 414.3 431.7 448.5 437.4 450.6 452.9 451.6 42 Transaction 11.3 9.4 9.3 9.5 12.6 10.9 10.9 11.8 11.2 12.0 12.1 11.7 43 Nontransaction 381.5 402.3 394.3 385.6 388.7 403.4 420.8 436.7 426.2 438.6 440.8 439.9 44 Borrowings 240.5 216.1 211.2 210.6 221.8 208.4 213.0 203.4 208.8 206.7 196.6 202.0 45 From banks in the U.S 22.1 22.5 22.3 20.6' 30.5 23.9 24.2 24.5 21.6 22.2 19.5 28.6 46 From others 218.4 193.7 188.9 190.0 191.2 184.5 188.8 178.9 187.2 184.5 177.1 173.4 47 Net due to related foreign offices 3.0 -22.8' -19.6' -14.1' -16.6 -16.9 -30.7 -44.7 -29.4 -49.7 -41.6 -^19.4 48 Other liabilities 75.3r 82.7' 76.9' 75.5' 79.5 74.5 77.0 77.2 74.5 74.9 78.0 79.6 49 Total liabilities 711.6r 687.7r 672.0r 661.1' 686.1 680.4 691.0 684.4 691.3 682.5 685.9 683.8 50 Residual (assets less liabilities)7 5.6r 4.3' 9.0' 9.1' 8.5 3.9 3.5 3.6 3.5 3.7 3.5 3.6 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 Liabilities'—Continued F. Memo items Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2000 2001 2001 Dec/ Juner Julyr Aug.r Sept/ Oct/ Nov/ Dec. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 77.9 87.5 79.8 89.8 98.0 100.8 104.3 80.6 82.9 84.1 83.6 79.3 2 Revaluation losses on off-balancesheet items8 83.1 81.9 71.8 78.4 84.8 86.0 86.5 68.4 72.3 72.3 69.7 65.9 3 Mortgage-backed securities9 248.5 262.2 262.1 274.6 280.5 290.3 290.7 311.8 304.9 299.8 312.2 320.4 4 Pass-through 181.4 200.6 199.8 211.3 217.1 221.4 205.4 209.3 200.1 196.8 210.7 219.1 5 CMO, REMIC, and other 67.1 61.6 62.3 63.4 63.4 68.9 85.3 102.6 104.9 103.1 101.5 101.3 6 Net unrealized gains (losses) on available-for-sale securities10 4.1 4.2 2.6 5.1 7.1 9.2 10.0 5.2 5.4 6.1 5.4 5.2 7 Off-shore credit to U.S. residents'1 .... 23.4 20.6 20.2 19.6 20.2 20.0 19.2 19.1 18.9 18.8 19.1 19.3 8 Securitized consumer loans12 79.8 82.3 96.8 96.7 97.5 98.1 99.6 99.8 98.6 98.6 99.7 101.0 9 Credit cards and related plans 69.9 73.3 86.7 86.2 87.2 87.8 88.3 88.7 87.5 87.5 88.7 90.0 10 Other 9.9 9.0 10.1 10.5 10.3 10.3 11.3 11.0 11.1 11.1 11.0 11.0 11 Securitized business loans12 13.7 20.4 20.6 20.8 20.9 21.1 20.6 19.7 19.9 19.8 19.7 19.7 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities9 207.5 232.7 239.9 245.0 250.8 256.0 261.4 266.2 265.8 267.0 264.9 266.3 13 Securitized consumer loans12 229.6 236.9 225.6 228.5 231.6 235.1 238.0 243.5 240.8 241.9 243.2 244.6 14 Credit cards and related plans 220.5 228.6 216.9 219.9 223.0 226.9 229.5 235.2 232.3 233.5 234.9 236.3 15 Other 9.1 8.3 8.7 8.6 8.5 8.2 8.6 8.4 8.5 8.4 8.4 8.3 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 47.2 57.0 53.8 55.1 54.9 56.5 55.7 56.3 54.9 55.0 57.0 57.6 17 Revaluation losses on off-balancesheet items8 43.0 51.7 49.0 51.1 50.5 48.8 48.7 49.9 47.7 48.4 50.4 51.3 18 Securitized business loans12 34.8 29.6 27.4 26.6 26.5 26.6 25.2 24.0 24.5 24.4 23.9 23.5 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 coiporations (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 NonfinancialS tatistics • March 2002 1.32 COMMERCIAL PAPER OUTSTANDING Millions of dollars, seasonally adjusted, end of period Year ending December 2001 IItteemm 1996 1997 1998 1999 2000 June July Aug. Sept. Oct. Nov. 1 All issuers 775,371 966,699 1,163,303 1,403,023 1,615,341 1,468,919 1,453,770 1,434,238 1,423,004 1,436,254 1,435,808 Financial companies1 2 Dealer-placed paper, total2 361,147 513,307 614,142 786,643 973,060 982,216 958,911 957,792 950,346 984,996 993,491 3 Directly placed paper, total3 229,662 252,536 322,030 337,240 298,848 244,520 265,824 248,974 255,122 232,407 227,422 4 Nonfinancial companies4 184,563 200,857 227,132 279,140 343,433 242,183 229,035 227,473 217,537 218,851 214,894 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 Date of change Av r e a r t a e ge Av r e a r t a e ge Av r e a r t a e ge 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 Apr. 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 2002—Jan. 4.75 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 11999999 22000000 22000011 Sept. Oct. Nov. Dec. Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 MONEY MARKET INSTRUMENTS 4.97 6.24 3.88 3.07 2.49 2.09 1.82 1.95 2.02 1.88 1.84 1.77 4.62 5.73 3.40 2.77 2.02 1.58 1.33 1.50 1.50 1.43 1.25 1.25 Commercial paper3-5'6 Nonfinancial 5.09 6.27 3.78 2.96 2.40 2.03 1.84 1.99 1.91 1.76 1.82 1.89 5.14 6.29 3.68 2.87 2.30 2.00 1.79 1.99 1.84 1.74 1.78 1.79 5.18 6.31 3.65 2.81 2.28 1.97 1.78 1.98 1.85 1.73 1.78 1.80 Financial 5.11 6.28 3.80 2.97 2.42 2.04 1.83 1.99 1.89 1.77 1.84 1.85 5.16 6.30 3.71 2.87 2.31 2.02 1.81 2.03 1.87 1.76 1.80 1.82 5.22 6.33 3.65 2.84 2.29 2.00 1.81 2.00 1.87 1.76 1.80 1.81 Certificates of deposit, secondary market3,7 5.19 6.35 3.84 2.99 2.43 2.08 1.90 2.06 1.98 1.84 1.89 1.90 5.33 6.46 3.71 2.87 2.31 2.03 1.83 2.07 1.88 1.79 1.82 1.84 5.46 6.59 3.66 2.84 2.26 2.03 1.90 2.08 1.93 1.84 1.91 1.93 5.31 6.45 3.70 2.85 2.31 2.03 1.84 2.03 1.89 1.80 1.83 1.82 U.S. Treasury bills Secondary market3-5 4.64 5.82 3.40 2.64 2.16 1.87 1.69 1.84 1.72 1.66 1.68 1.70 4.75 5.90 3.34 2.63 2.12 1.88 1.78 1.87 1.80 1.73 1.77 1.80 44..8811 55..7788 33..8844 nn..aa.. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities9 5.08 6.11 3.49 2.82 2.33 2.18 2.22 2.23 2.21 2.17 2.23 2.28 5.43 6.26 3.83 3.12 2.73 2.78 3.11 3.03 3.02 3.08 3.15 3.21 18 3-year 5.49 6.22 4.09 3.45 3.14 3.22 3.62 3.50 3.51 3.60 3.68 3.74 5.55 6.16 4.56 4.12 3.91 3.97 4.39 4.25 4.23 4.41 4.45 4.49 5.79 6.20 4.88 4.51 4.31 4.42 4.86 4.70 4.70 4.91 4.91 4.95 21 10-year 5.65 6.03 5.02 4.73 4.57 4.65 5.09 4.92 4.92 5.14 5.14 5.17 6.20 6.23 5.63 5.53 5.34 5.33 5.76 5.60 5.63 5.83 5.79 5.81 23 30-year 55..8877 55..9944 55..4499 55..4488 5.32 5.12 5.48 5.33 5.38 5.54 5.49 5.51 STATE AND LOCAL NOTES AND BONDS Moody's series'0 5.28 5.58 4.99 4.93 4.89 4.85 5.18 4.97 5.06 5.26 5.19 5.19 25 Baa 5.70 6.19 5.75 5.62 5.55 5.53 5.81 5.65 5.74 5.90 5.81 5.80 55..4433 55..7711 55..1155 55..0099 5.05 5.04 5.25 5.15 5.21 5.26 5.26 5.26 CORPORATE BONDS 7.45 7.98 7.49 7.54 7.41 7.32 7.43 7.46 7.47 7.46 7.40 7.39 Rating group 28 Aaa13 7.05 7.62 7.08 7.17 7.03 6.97 6.77 7.10 7.04 6.73 6.65 6.66 29 Aa 7.36 7.83 7.26 7.28 7.13 7.01 7.19 7.15 7.17 7.25 7.19 7.19 30 A 7.53 8.11 7.67 7.67 7.59 7.49 7.70 7.64 7.67 7.75 7.69 7.69 31 Baa 7.88 8.37 7.95 8.03 7.91 7.81 8.05 7.95 7.99 8.13 8.07 8.02 MEMO Dividend-price ratio]i 11..2255 11..1155 11..3322 11..4488 1.45 1.38 1.36 1.38 1.33 1.37 1.37 1.36 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly 8. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for statistical release. For ordering address, see inside front cover. indication purposes only. 1. The daily effective federal funds rate is a weighted average of rates on trades through 9. Yields on actively traded issues adjusted to constant maturities. SOURCE: U.S. Depart- New York brokers. ment of the Treasury. 2. Weekly figures are averages of seven calendar days, ending on Wednesday of the 10. General obligation bonds based on Thursday figures; Moody's Investors Service. current week; monthly figures include each calendar day in the month. 11. State and local government general obligation bonds maturing in twenty years are used 3. Annualized using a 360-day year or bank interest. in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys' 4. Rate for the Federal Reserve Bank of New York. A1 rating. Based on Thursday figures. 5. Quoted on a discount basis. 12. Daily figures are averages of Aaa, Aa, A, and Baa yields from Moody's Investors 6. Interest rates interpolated from data on certain commercial paper trades settled by the Service. Based on yields to maturity on selected long-term bonds. Depository Trust Company. The trades represent sales of commercial paper by dealers or 13. Effective December 7, 2001, the Moody's Aaa yield includes yields only for industrial direct issuers to investors (that is, the offer side). See the Board's Commercial Paper web firms. Prior to December 7, 2001, the Aaa yield represented both utilities and industrial. pages (http://www.federalreserve.gov/releases/cp) for more information. 14. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in 7. An average of dealer offering rates on nationally traded certificates of deposit. the price index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic NonfinancialS tatistics • March 2002 1.36 STOCK MARKET Selected Statistics 2001 IInnddiiccaattoorr 11999999 22000000 22000011 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading volume (averages of daily figures) CCCCCCCooooooommmmmmmmmmmmmmooooooonnnnnnn ssssssstttttttoooooooccccccckkkkkkk ppppppprrrrrrriiiiiiiccccccceeeeeeesssssss (((((((iiiiiiinnnnnnndddddddeeeeeeexxxxxxxeeeeeeesssssss))))))) 1111111 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((DDDDDDDeeeeeeeccccccc....... 33333331111111,,,,,,, 1111111999999966666665555555 ======= 55555550000000))))))) 619.52 643.71 606.03 607.06 644.44 630.86 613.36 604.52 544.39 556.04 575.31 582.82 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 775.29 809.40 749.46 747.48 798.94 782.73 756.04 748.65 672.89 688.35 715.98 727.67 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 491.62 414.73 444.45 455.22 477.21 458.60 469.80 458.35 382.68 371.56 410.05 433.70 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 284.82 478.99 377.72 400.49 414.69 382.98 374.11 357.76 339.72 341.51 330.78 325.33 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 530.97 552.48 596.61 587.88 618.74 622.17 614.54 605.59 538.01 553.16 577.85 585.47 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111^^^^^^^*******3333333 ------- 11111110000000)))))))''''''' 1,327.33 1,427.22 1,194.18 1,189.84 1,270.37 1,238.71 1,204.45 1,178.51 1,044.64 1,076.59 1,129.68 1,144.93 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,, 1111111999999977777773333333 -------55555550000000)))))))2222222 770.90 922.22 879.08 891.18 940.73 923.06 892.74 883.01 823.78 825.91 814.78 828.19 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 799,554 1,026,867 1,216,529 1,247,382 1,091,366 1,152,193 1,120,074 1,012,907 1,666,980 1,293,019 1,242,965 1,240,245 9999999 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 32,629 51,437 68,074 77,612 66,103 62,395 56,735 48,304 72,319 66,765 88,694 53,337 Customer financing (millions of dollars, end-of-period balances) 11111110000000 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrr-------dddddddeeeeeeeaaaaaaallllllleeeeeeerrrrrrrsssssss3333333 228,530 198,790 1,974,550 166,940 174,180 170,000 165,250 161,130 144,670 144,010 148,650 150,450 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss4444444 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss5555555 55,130 100,680 1,203,170 97,470 91,990 98,430 97,950 103,990 115,450 101,850 98,330 101,640 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 79,070 84,400 907,650 77,460 76,260 75,270 73,490 73,710 74,220 69,550 72,090 78,040 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 July Aug. Sept. Oct. Nov. Dec. U.S. budget1 1 Receipts, total 1,827,302 2,025,218 1,990,930 127,842 122,559 158,496 157,163 121,233 187,914 2 On-budget 1,382,986 1,544,634 1,483,411 89,473 84,011 116,598 122,004 83,375 150,941 3 Off-budget 444,468 480,584 507,519 38,369 38,548 41,898 35,159 37,858 36,973 4 Outlays, total 1,702,875 1,788,826 1,863,909 125,022 202,549 123,250 166,548 175,500 161,347 5 On-budget 1,382,097 1,458,061 1,517,071 92,145 138,167 111,255 134,014 140,388 162,916 6 Off-budget 320,778 330,765 346,838 32,877 64,382 11,996 32,534 35,112 -1,569 7 Surplus or deficit (-), total 124,579 236,392 127,021 2,820 -79,990 35,245 -9,385 -54,267 26,567 8 On-budget 889 86,573 -33,660 -2,672 -54,156 5,343 -12,010 -57,013 -11,975 9 Off-budget 123,690 149,819 160,682 5,492 -25,834 29,902 2,625 2,746 38,542 Source of financing (total) 10 Borrowing from the public -88,674 -222,807 -90,118 -7,460 74,101 1,996 -3,695 72,036 -8,813 11 Operating cash (decrease, or increase [-]) -17,580 3,799 8,440 20,589 16,769 -37,890 16,612 -2,908 -21,837 12 Other2 -18,325 -17,384 -45,343 -15,949 -10,880 649 -3,532 -14,861 4,083 MEMO 13 Treasury operating balance (level, end of period) 56,458 52,659 44,219 23,098 6,329 44,219 27,607 30,515 52,352 14 Federal Reserve Banks 6,641 8,459 9,796 5,592 5,533 9,796 5,112 6,219 6,645 15 Tax and loan accounts 49,817 44,199 34,423 17,506 795 34,423 22,495 24,295 45,707 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 • March 2002 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 2000 2001 2001 22000000 22000011 HI H2 HI H2 Oct. Nov. Dec. RECEIPTS 1 All sources 2,025,218 1,990,930 1,089,763 953,667 1,120,040 875,207 157,163 121,233 187,914 2 Individual income taxes, net 1,004,462 994,339 550,208 458,679 580,632 420,105 77,772 56,534 92,036 3 Withheld 780,397 793,386 388,526 395,572 402,417 398,365 69,963 59,818 86,889 4 Nonwithheld 358,049 383,146 281,103 77,732 308,418 76,199 9,858 2,729 6,472 5 Refunds 134,046 182,251 119,477 14,628 130,256 54,461 2,049 6,013 1,325 Corporation income taxes 6 Gross receipts 235,655 186,732 119,166 123,962 102,947 90,970 30,134 3,411 38,238 7 Refunds 28,367 35,657 13,781 15,776 20,262 21,945 10,388 3,450 2,247 8 Social insurance taxes and contributions, net .... 652,852 693,967 353,514 310,122 379,878 314,678 48,794 53,263 50,628 9 Employment taxes and contributions2 620,451 661,442 333,584 297,665 359,648 302,518 46,887 50,494 50,058 10 Unemployment insurance 27,640 27,812 17,562 10,097 17,842 9,880 1,529 2,356 224 11 Other net receipts3 4,761 4,712 2,368 2,360 2,387 2,281 378 413 346 12 Excise taxes 68,865 66,232 33,532 35,501 32,490 29,124 3,657 4,842 3,011 13 Customs deposits 19,914 19,616 9,218 10,676 9,370 10,032 1,920 1,571 1,297 14 Estate and gift taxes 29,010 28,400 15,073 13,216 15,471 12,643 2,488 2,204 1,895 15 Miscellaneous receipts4 42,826 37,305r 22,831 17,286 19,517 19,595 2,786 2,857 3,056 OUTLAYS 16 All types 1,788,826 1,863,909 892,947 895,630 948,750 954,216 166,548 175,500 161,347 17 National defense 294,494 304,486 143,476 147,651 153,154 160,877 26,373 30,983 26,988 18 International affairs 17,216 16,522 7,250 11,902 6,522 9,072 2,519 2,606 1,924 19 General science, space, and technology 18,637 20,715 9,601 10,389 10,073 10,868 2,025 1,781 1,738 20 Energy -1,060 48 -893 130 -244 494 -355 145 192 21 Natural resources and environment 25,031 23,738 10,814 12,907 11,059 13,310 2,248 2,518 2,179 22 Agriculture 36,641 28,339 11,164 20,977 10,832 19,954 5,288 4,576 4,773 23 Commerce and housing credit 3,211 5,801 -2,497 4,408 -1,539 6,941 1,194 218 -1,123 24 Transportation 46,854 53,882 21,054 25,841 23,810 33,006 5,423 5,885 4,580 25 Community and regional development 10,629 12,827 5,050 5,962 5,265 8,450 1,509 1,110 1,436 26 Education, training, employment, and social services 59,201 62,869 31,234 29,263 35,698 28,290 6,113 5,370 5,838 27 Health 154,534 171,912 75,871 81,413 87,427 92,411 17,549 15,216 16,045 28 Social security and Medicare 606,549 650,407 306,966 307,473 328,072 331,522 53,444 58,302 54,914 29 Income security 247,895 263,274 133,915 113,212 146,913 124,312 21,664 24,281 21,322 30 Veterans benefits and services 47,083 45,029 23,174 22,615 23,171 24,769 4,294 5,941 4,062 31 Administration of justice 27,820 29,754 13,981 14,635 14,694 16,209 3,230 2,834 2,868 32 General government 13,454 15,084 6,198 6,461 8,887 8,688 1,581 1,365 3,123 33 Net interest5 223,218 206,088 115,545 104,685 107,824 89,692 16,157 15,928 13,781 34 Undistributed offsetting receipts6 -42,581 -47,011 -19,346 -24,070 -22,865 -24,516 -3,727 -3,560 -3,294 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 A27 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1999 2000 2001 IItteemm Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 5,805.0 5,801.5 5,714.2 5,701.9 5,689.6 5,800.6 5,753.9 5,834.5 5,970.3r 2 Public debt securities 5,776.1 5,773.4 5,685.9 5,674.2 5,662.2 5,773.7 5,726.8 5,807.5 5,943.4r 3 Held by public 3,715.5 3,688.0 3,495.7 3,438.5 3,413.5 3,434.4 3,274.2 3,338.7 3,393.8r 4 Held by agencies 2,060.6 2,085.4 2,190.2 2,235.7 2,248.7 2,339.4 2,452.6 2,468.8 2,549.7r 5 Agency securities 28.9 28.1 28.3 27.7 27.4 26.8 27.1 27.0 26.8r 6 Held by public 28.3 27.8 28.2 27.6 27.3 26.8 27.1 27.0 26.8r 7 Held by agencies .6 .4 .1 .1 .1 .1 .0 .0 ,0r 8 Debt subject to statutory limit 5,686.9 5,686.5 5,600.6 5,591.6 5,580.5 5,692.5 5,645.0 5,732.6 5,871.4r 9 Public debt securities 5,686.7 5,686.3 5,600.5 5,591.4 5,580.2 5,692.3 5,644.8 5,807.5 5,943.4r 10 Other debt1 .1 .2 .2 .2 .2 .2 .2 .2 ,3r 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 2001 TTyyppee aanndd hhoollddeerr 11999988 11999999 22000000 22000011 Qi Q2 Q3 Q4 1 Total gross public debt 5,614.2 5,776.1 5,662.2 5,943.4 5,773.7 5,726.8 5,807.5 5,943.4 By type 2 Interest-bearing 5,605.4 5,766.1 5,618.1 5,930.8 5,752.0 5,682.8 5,763.6 5,930.8 3 Marketable 3,355.5 3,281.0 2,966.9 2,982.9 2,981.9 2,822.3 2,897.3 2,982.9 4 Bills 691.0 737.1 646.9 811.3 712.0 620.1 734.9 811.3 5 Notes 1,960.7 1,784.5 1,557.3 1,413.9 1,499.0 1,441.0 1,399.6 1,413.9 6 Bonds 621.2 643.7 626.5 602.7 627.9 616.9 612.9 602.7 7 Inflation-indexed notes and bonds' 67.6 100.7 121.2 140.1 128.0 129.3 134.9 140.1 8 Nonmarketable2 2,249.9 2,485.1 2,651.2 2,947.9 2,770.0 2,860.5 2,866.4 2,947.9 9 State and local government series 165.3 165.7 151.0 146.3 152.9 153.3 146.4 146.3 10 Foreign issues3 34.3 31.3 27.2 15.4 24.7 24.0 18.3 15.4 11 Government 34.3 31.3 27.2 15.4 24.7 24.0 18.3 15.4 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 180.3 179.4 176.9 181.5 177.4 178.4 179.6 181.5 14 Government account series4 1,840.0 2,078.7 2,266.1 2,574.8 2,360.3 2,474.7 2,492.1 2,574.8 15 Non-interest-bearing 8.8 10.0 44.2 12.7 46.5 44.0 43.8 12.7 By holder5 16 U.S. Treasury and other federal agencies and trust funds 1,828.1 2,064.2 2,249.0 n.a. 2,357.0 2,469.1 2,493.7 n.a. 17 Federal Reserve Banks6 452.1 478.0 511.7 551.7 523.9 535.1 534.1 551.7 18 Private investors 3,334.0 3,233.9 2,880.4 n.a. 2,892.9 2,722.6 2,779.7 n.a. 19 Depository institutions 237.3 246.5 199.2 n.a. 187.9 190.1 189.0 n.a. 20 Mutual funds 343.3 335.4 312.6 n.a. 322.8 333.2 362.7 n.a. 21 Insurance companies 141.7 123.4 110.2 n.a. 101.9 94.8 88.5 n.a. 22 State and local treasuries7 269.3 266.8 236.2 n.a. 224.0 216.5 188.9 n.a. Individuals 23 Savings bonds 186.6 186.4 184.8 n.a. 184.8 185.5 186.4 n.a. 24 Pension funds 356.9 349.7 333.4 n.a. 326.5 324.6 314.7 n.a. 25 Private 139.1 138.5 137.7 n.a. 131.2 127.5 122.7 n.a. 26 State and Local 217.7 211.2 195.7 n.a. 195.3 197.1 192.0 n.a. 27 Foreign and international8 1,278.7 1,268.7 1,201.3 n.a. 1,196.1 1,167.1 1,170.0 n.a. 28 Other miscellaneous investors7'9 517.5 444.1 276.9 n.a. 323.6 195.8 n.a. n.a. 1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 8. Includes nonmarketable foreign series Treasury securities and Treasury deposit funds. 1997. Excludes Treasury securities held under repurchase agreements in custody accounts at the 2. Includes (not shown separately) securities issued to the Rural Electrification Administra- Federal Reserve Bank of New York. tion, depository bonds, retirement plan bonds, and individual retirement bonds. 9. Includes individuals, government-sponsored enterprises, brokers and dealers, bank 3. Nonmarketable series denominated in dollars, and series denominated in foreign cur- personal trusts and estates, corporate and noncorporate businesses, and other investors. rency held by foreigners. SOURCES. Data by type of security, U.S. Treasury Department, Monthly Statement of the 4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. Public Debt of the United States; data by holder, Federal Reserve Board of Governors, Flow 5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin, holdings; data for other groups are Treasury estimates. unless otherwise noted. 6. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin table 1.18. 7. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable federal securities was removed from "Other miscellaneous investors" and added to "State and local treasuries." The data shown here have been revised accordingly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic NonfinancialS tatistics • March 2002 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages 2001 2001, week ending Sept. Oct. Nov. Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Dec. 26 By type of security 1 U.S. Treasury bills 29,627 28,935 42,441 32,351 46,129 38,720 41,919 41,112 44,621 40,085 36,596 30,462 Treasury coupon securities by maturity 2 Three years or less 96,124 106,558 133,582 110,220 135,164 121,476 133,713 142,859 134,961 117,836 100,532 54,426 3 More than three but less than or equal to six years 76,258 83,732 111,681 87,813 141,908 109,895 107,670 83,813 105,445 96,935 87,243 37,426 4 More than six but less than or equal to eleven years 60,808 59,295 79,622 66,353 89,839 70,506 90,672 66,402 71,130 80,786 64,945 26,256 5 More than eleven 18,764 24,268 30,303 34,983 40,584 27,110 28,648 23,938 27,849 23,206 18,809 10,470 6 Inflation-indexed2 1,653 2,565 2,282 2,168 3,405 1,994 1,969 1,952 1,491 1,503 1,453 772 Federal agency and governmentsponsored enterprises 7 Discount notes 70,486 61,756 60,945 63,560 62,391 61,257 60,314 57,674 64,828 56,354 59,856 52,876 Coupon securities by maturity 8 Three years or less 11,891 11,551 13,099 11,480 11,691 13,475 16,350 11,290 11,358 11,510 12,941 3,511 9 More than three years but less than or equal to six years 8,913 11,860 9,457 9,211 8,492 13,461 10,164 5,747 9,510 8,104 8,565 10,054 10 More than six years but less than or equal to eleven years .... 10,595 8,487 11,006 9,484 12,092 10,308 13,725 7,828 9,241 10,741 6,878 3,546 11 More than eleven years 1,010 1,451 1,758 1,989 2,274 2,854 1,093 1,143 1,165 1,489 1,853 1,474 12 Mortgage-backed 129,615 130,025 144,605 92,084 166,493 181,741 140,520 91,673 131,685 170,741 136,978 40,216 Corporate securities 13 One year or less 95,488 79,349 76,651 67,299 76,073 84,847 83,253 63,122 72,261 75,478 91,035 54,280 14 More than one year 14,825 20,690 22,319 22,731 21,754 24,765 25,170 17,712 20,921 18,841 18,721 9,047 By type of counterparty With interdealer broker 15 U.S. Treasury 125,189 139,549 180,416 150,216 204,851 170,365 179,261 166,102 170,943 166,587 139,874 65,989 16 Federal agency and governmentsponsored enterprises 11,668 11,878 13,155 12,120 12,741 14,406 14,167 11,317 12,829 11,793 11,517 6,321 17 Mortgage-backed 33,296 36,435 36,048 25,614 38,520 47,633 32,056 27,251 34,270 41,039 37,960 11,200 18 Corporate 793 666 588 558 625 672 613 462 521 485 472 201 With other 19 U.S. Treasury 158,044 165,804 219,495 183,672 252,179 199,336 225,330 193,975 214,554 193,765 169,704 93,824 20 Federal agency and governmentsponsored enterprises 91,226 83,227 83,110 83,603 84,198 86,949 87,479 72,366 83,274 76,404 78,575 65,140 21 Mortgage-backed 96,318 93,590 108,557 66,470 127,973 134,108 108,464 64,422 97,415 129,702 99,018 29,016 22 Corporate 109,520 99,373 98,382 89,471 97,202 108,940 107,810 80,373 92,661 93,834 109,284 63,127 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 A29 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2001 2001, week ending item Sept. Oct. Nov. Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 NET OUTRIGHT POSITIONS2 By type of security 1 U.S. Treasury bills 29,542 21,414 19,504r 21,354 5,491 10,700 20,314 38,298 30,754 43,293 33,371 Treasury coupon securities by maturity 2 Three years or less -13,889 -21,698 —28,331r -29,568 -27,897 -26,296 -31,734 -28,206 -25,500 -24,373 -29,358 3 More than three years but less than or equal to six years -10,010 -19,650 -23,842r -21,421 -24,026 -22,704 -23,811 -24,715 -24,234 -22,702 -25,922 4 More than six but less than or equal to eleven years -13,631 -8,478 -10,659r -8,339 -8,587 -7,486 -11,358 -14,145 -14,365 -17,183 -17,288 5 More than eleven 10,701 10,868 10,806r 12,495 13,586 13,700 11,113 6,819 3,821 4,001 3,971 6 Inflation-indexed 3,918 4,541 4,378' 4,392 5,117 4,365 4,152 4,163 3,387 3,258 2,633 Federal agency and governmentsponsored enterprises 7 Discount notes 58,480 50,870 49,71 r 43,180 45,104 55,967 50,853 47,424 47,952 50,292 46,561 Coupon securities, by maturity 8 Three years or less 14,089 14,742 1 l,372r 11,265 9,833 12,226 11,510 11,589 12,520 11,919 10,668 9 More than three years but less than or equal to six years -1,937 1,395 583r 1,370 1,023 1,582 897 -542 -1,610 -603 -1,074 10 More than six but less than or equal to eleven years 2,516 1,889 l,932r 357 739 1,045 3,361 2,288 2,967 2,431 1,755 11 More than eleven 3,231 3,733 4,482r 3,988 4,232 4,718 4,655 4,565 3,636 4,101 3,420 12 Mortgage-backed 7,506 12,233 24,212r 13,967 28,015 25,172 19,937 24,916 20,033 16,283 20,774 Corporate securities 13 One year or less 18,108 18,969 21,057r 18,895 22,512 24,956 21,561 16,744 15,653 22,309 18,128 14 More than one year 29,098 31,904 35,1 llr 33,500 36,262 34,767 33,033 35,698 37,507 42,449 41,847 FINANCING3 Securities in U.S. Treasury 15 Overnight and continuing 536,941 565,640 558,495r 573,068 584,875 581,145 507,774 556,033 573,035 570,867 523,170 16 Term 660,031 660,095 733,782r 707,291 728,636 743,640 750,444 713,570 729,714 735,721 765,042 Federal agency and governmentsponsored enterprises 17 Overnight and continuing 112,778 120,632 132,478r 121,299 145,788 133,597 119,425 131,925 129,596 133,506 125,436 18 Term 171,037 176,742 217,708' 187,817 205,840 197,372 232,333 229,793 236,941 247,270 255,285 Mortgage-backed securities 19 Overnight and continuing 24,748 26,548 29,959r 25,276 32,415 28,176 23,420 33,671 37,505 37,285 33,549 20 Term 208,146 216,423 226,356r 230,291 222,660 225,519 229,877 225,796 231,852 225,636 230,396 Corporate securities 21 Overnight and continuing 34,799 37,072 39,512' 37,898 38,817 38,851 38,980 42,104 37,047 38,428 37,305 22 Term 12,781 14,101 15,88a 13,808 14,528 13,984 16,727 17,354 19,119 18,300 18,880 MEMO: Reverse repurchase agreements 23 Overnight and continuing 338,279 362,499 367,220' 389,737 406,008 382,523 297,926 374,929 393,445 386,656 340,194 24 Term 929,665 936,892 1,066,87 lr 994,875 1,051,851 1,057,706 1,099,430 1,052,854 1,086,627 1,107,733 1,140,661 Securities out U.S. Treasury 25 Overnight and continuing 556,068 580,816 547,900r 585,572 561,390 578,587 487,138 558,791 567,822 545,176 519,127 26 Term 596,767 589,529 670,462r 636,553 666,574 671,469 688,687 657,001 663,869 694,389 701,100 Federal agency and governmentsponsored enterprises 27 Overnight and continuing 200,899 218,541 221,623r 207,288 231,218 223,140 205,545 224,772 227,978 223,470 225,653 28 Term 131,482 130,511 172,805r 143,002 159,821 152,423 198,903 176,537 185,175 198,983 212,762 Mortgage-backed securities 29 Overnight and continuing 258,259 271,700 277,885r 255,932 261,857 305,406 245,344 300,779 271,418 267,683 287,375 30 Term 112,292 134,317 147,287' 139,969 132,790 134,053 193,704 133,075 131,621 136,497 138,937 Corporate securities 31 Overnight and continuing 80,776 92,074 95,909r 92,193 95,076 103,381 95,421 91,021 91,495 100,808 98,076 32 Term 8,333 10,158 10,853r 12,244 9,508 8,320 14,041 11,722 10,225 9,869 10,881 MEMO: Repurchase agreements 33 Overnight and continuing 965,270 1,019,698 1,000,031' 1,005,472 1,008,405 1,059,874 888,904 1,038,747 1,014,709 996,637 983,641 34 Term 832,229 846,123 981,393' 912,562 948,335 946,450 1,075,887 958,159 969,989 1,019,036 1,042,256 1. Data for positions and financing are obtained from reports submitted to the Federal 3. Figures cover financing U.S. government, federal agency, government-sponsored enter- Reserve Bank of New York by the U.S. government securities dealers on its published list of prise, mortgage-backed, and corporate securities. Financing transactions for Treasury primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar inflation-indexed securities (TIIS) are reported in actual funds paid or received, except for days of the report week are assumed to be constant. Monthly averages are based on the pledged securities. TIIS that are issued as pledged securities are reported at par value, which number of calendar days in the month. is the value of the security at original issuance (unadjusted for inflation). 2. Net outright positions include all U.S. government, federal agency, government- NOTE. Major changes in the report form filed by primary dealers included a break in many sponsored enterprise, mortgage-backed, and corporate securities scheduled for immediate and series as of the week ending July 4, 2001. Current weekly data may be found at the Federal forward delivery, as well as U.S. government securities traded on a when-issued basis Reserve Bank of New York web site (http://www.newyorkfed.org/pihome/statistics) under the between the announcement and issue date. Primary Dealer heading. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • March 2002 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2001 AAggeennccyy 11999977 11999988 11999999 22000000 June July Aug. Sept. Oct. 1 Federal and federally sponsored agencies 1,022,609 1,296,477 1,616,492 1,851,632 1,986,146 2,009,746 2,028,562 2,071,164 26,781 2 Federal agencies 27,792 26,502 26,376 25,666 25,495 25,325 26,623 27,017 6 3 Defense Department1 6 6 6 6 6 6 6 6 n.a. 4 Export-Import Bank2-3 552 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 252 5 Federal Housing Administration4 102 205 126 255 204 210 224 231 n.a. 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. 26,775 8 Tennessee Valley Authority 27,786 26,496 26,370 25,660 25,489 25,319 26,617 27,011 n.a. 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 1,960,651 1,984,421 2,001,939 2,044,147 n.a. 11 Federal Home Loan Banks 313,919 382,131 529,005 594,404 595,148 601,490 599,070 614,325 618,071 12 Federal Home Loan Mortgage Corporation 169,200 287,396 360,711 426,899 496,711 508,944 515,671 534,434 540,371 13 Federal National Mortgage Association 369,774 460,291 547,619 642,700 702,300 706,800 718,000 727,000 726,200 14 Farm Credit Banks8 63,517 63,488 68,883 74,181 76,330 76,307 76,264 76,385 76,339 15 Student Loan Marketing Association9 37,717 35,399 41,988 45,375 47,687 48,427 50,356 49,404 n.a. 16 Financing Corporation1'' 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 38,235 37,510 37,789 42,825 40,574 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 552 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Postal Service6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23 Tennessee Valley Authority n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Other lending14 25 Farmers Home Administration 13,530 9,500 6,665 5,275 5,155 5,155 5,155 4,375 n.a. 26 Rural Electrification Administration 14,898 14,091 14,085 13,126 13,381 13,483 13,602 13,599 13,698 27 Other 20,110 20,538 21,402 22,174 19,699 18,872 19,032 30,851 26,876 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 May June July Aug. Sept. Oct. Nov. Dec. 1 All issues, new and refunding1 262,342 215,427 180,403 26,248 29,298 19,232 21,152 13,159 30,446 30,105 28,363 By type of issue 2 General obligation 87,015 73,308 64,475 8,385 9,691 5,836 8,796 3,926 14,302 10,163 9,218 3 Revenue 175,327 142,120 115,928 17,863 19,606 13,396 12,356 9,233 16,144 19,942 19,146 By type of issuer 4 State 23,506 16,376 19,944 3,123 2,905 2,029 2,713 1,504 6,008 2,271 746 5 Special district or statutory authority2 178,421 152,418 111,695 17,281 20,672 11,784 12,351 9,137 17,382 21,601 22,525 6 Municipality, county, or township 60,173 46,634 39,273 5,845 5,721 5,419 6,088 2,518 7,056 6,233 5,093 7 Issues for new capital 160,568 161,065 154,257 20,002 20,044 15,015 13,550 10,110 21,249 21,009 21,389 By use of proceeds 8 Education 36,904 36,563 38,665 5,714 6,460 3,379 2,950 3,017 4,279 4,475 4,818 9 Transportation 19,926 17,394 19,730 2,522 1,258 3,160 1,669 1,195 1,587 2,882 1,349 10 Utilities and conservation 21,037 15,098 11.917 2,969 3,191 1,055 1,228 1,025 2,324 2,429 2,560 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 7,122 422 443 508 708 663 688 359 1,642 13 Other purposes 42,450 47,896 47,309 4,736 5,047 3,803 4,524 1,732 9,158 5,281 6,319 1. Par amounts of long-term issues based on date of sale. SOURCE. Securities Data Company beginning January 1990; Investment Dealer's Digest 2. Includes school districts. before then. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 2001 TTyyppee ooff oo rr iiss ss iiss uu ss ee uu ,, ee oo rr ffffeerriinngg,, 11999988 11999999 22000000 Apr. May June July Aug. Sept. Oct. Nov. 1 All issues1 1,128,491 1,072,866 942,198 92,778 164,563 122,773 93,451 97,944 89,855 139,181 123,517 2 Bonds2 1,001,736 941,298 807,281 86,274 154,623 102,476 84,872 89,990 84,509 123,346 110,888 By type of offering 3 Sold in the United States 923,771 818,683 684,484 81,156 146,164 96,382 79,508 86,759 80,223 120,162 106,563 4 Sold abroad 77,965 122,615 122,798 5,117 8,459 6,094 5,364 3,231 4,286 3,185 4,326 MEMO 5 Private placements, domestic 37,844 24,703 18,370 0 2,563 3,146 12 48 0 224 4,936 By industry group 6 Nonfinancial 307,711 293,963 242,452 33,549 67,142 34,996 18,904 28,546 31,920 43,830 42,189 7 Financial 694,025 647,335 564,829 52,725 87,481 67,480 65,968 61,443 52,589 79,517 68,699 8 Stocks3 182,055 223,968 283,717 6,504 9,940 20,297 8,579 7,954 5,346 15,835 12,629 By type of offering 9 Public 126,755 131,568 134,917 6,504 9,940 20,297 8,579 7,954 5,346 15,835 12,629 10 Private placement4 55,300 92,400 148,800 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 11 Nonfinancial 74,113 110,284 118,369 4,822 6,809 16,630 4,237 5,487 81 7,611 7,592 12 Financial 52,642 21,284 16,548 1,682 3,131 3,667 4,342 2,467 5,265 8,224 5,037 1. Figures represent gross proceeds of issues maturing in more than one year; they are the 2. Monthly data include 144(a) offerings. principal amount or number of units calculated by multiplying by the offering price. Figures 3. Monthly data cover only public offerings. exclude secondary offerings, employee stock plans, investment companies other than closed- 4. Data are not available. end, intracorporate transactions, and Yankee bonds. Stock data include ownership securities SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve issued by limited partnerships. System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • March 2002 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2001 IItteemm 22000000 22000011 May June July Aug. Sept. Oct. Nov/ Dec. 1 Sales of own shares2 2,279,315 1,806,175 158,361 139,270 138,428 142,577 105,038 153,827 147,192 151,480 2 Redemptions of own shares 2,057,277 1,677,026 132,574 125,097 129,021 131,408 127,995 137,837 124,060 149,465 3 Net sales3 222,038 129,149 25,787 14,173 9,407 11,169 -22,957 15,990 23,132 2,015 4 Assets4 5,123,747 4,683,807 4,956,982 4,888,874 4,825,144 4,635,477 4,253,850 4,376,923 4,625,601 4,683,807 5 Cash5 277,386 222,637 237,487 240,199 240,392 240,329 223,077 229,576 239,671 222,637 6 Other 4,846,361 4,461,170 4,719,495 4,648,675 4,584,752 4,395,148 4,030,773 4,147,347 4,385,930 4,461,170 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 Ql 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 11999999 22000000 22000011 Q2 Q3 Q4 Ql Q2 Q3 Q4 ASSETS 1 Accounts receivable, gross2 845.4 958.6 n.a. 921.5 939.9 958.6 954.4 988.7 967.7 n.a. 2 Consumer 304.4 327.9 n.a. 321.8 331.5 327.9 319.2 324.5 329.2 n.a. 3 Business 395.1 458.4 n.a. 441.9 443.0 458.4 459.1 481.9 451.1 n.a. 4 Real estate 145.8 172.3 n.a. 157.7 165.4 172.3 176.1 182.3 187.4 n.a. 5 LESS: Reserves for unearned income 61.4 69.7 n.a. 66.1 68.3 69.7 69.9 61.5 60.8 n.a. 6 Reserves for losses 14.7 16.7 n.a. 15.7 15.6 16.7 17.2 17.4 18.0 n.a. 7 Accounts receivable, net 769.3 872.2 n.a. 839.6 856.1 872.2 867.3 909.7 888.9 n.a. 8 All other 406.6 461.5 n.a. 419.4 442.3 461.5 474.8 459.0 478.2 n.a. 9 Total assets 1,175.9 1,333.7 n.a. 1,259.0 1,298.4 1,333.7 1,342.1 1,368.7 1,367.1 n.a. LIABILITIES AND CAPITAL 10 Bank loans 35.4 35.9 n.a. 32.8 35.7 35.9 41.6 45.3 44.5 n.a. 11 Commercial paper 230.4 238.8 n.a. 224.3 218.8 238.8 180.9 181.6 171.0 n.a. Debt 12 Owed to parent 87.8 102.5 n.a. 95.1 100.0 102.5 97.2 93.4 90.8 n.a. 13 Not elsewhere classified 429.9 502.2 n.a. 483.7 507.3 502.2 533.8 542.1 555.9 n.a. 14 All other liabilities 237.8 301.8 n.a. 277.5 288.1 301.8 325.1 336.3 327.7 n.a. 15 Capital, surplus, and undivided profits 154.5 152.5 n.a. 145.7 148.5 152.5 163.5 170.0 177.3 n.a. 16 Total liabilities and capital 1,175.9 1,333.7 n.a. 1,259.0 1,298.4 1,333.7 1,342.1 1,368.7 1,367.1 n.a. 1. Includes finance company subsidiaries of bank holding companies but not of 2. Before deduction for unearned income and losses. Excludes pools of securitized retailers and banks. Data are amounts carried on the balance sheets of finance compa- assets, nies; securitized pools are not shown, as they are not on the books. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A33 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 2001 June' July' Aug.' Sept.' Oct.' Nov. Seasonally adjusted 1 Total 904.4 1,027.0 1,181.3 1,235.7 1,241.1 1,241.5 1,244.3 1,242.0 1,245.3 2 Consumer 369.1 409.0 464.0 490.4 491.0 496.7 496.0 497.9 510.4 3 Real estate 150.3 174.0 198.9 208.5 212.7 214.9 213.1 217.8 210.8 4 Business 385.0 444.0 518.4 536.8 537.4 529.9 535.2 526.3 524.1 Not seasonally adjusted 5 Total 912.7 1,036.4 1,192.1 1,241.8 1,236.0 1,235.7 1,239.5 1,240.7 1,242.2 6 Consumer 372.5 412.7 468.3 491.3 493.0 498.2 498.0 500.9 513.9 7 Motor vehicle loans 113.5 129.2 141.6 144.6 146.0 153.5 151.6 164.8 177.8 8 Motor vehicle leases 96.6 102.9 108.2 110.2 110.0 110.3 108.3 107.3 105.5 9 Revolving2 31.9 32.5 37.6 36.8 36.4 36.0 35.9 28.0 29.3 10 Other3 37.9 39.8 40.7 32.8 33.2 33.6 33.4 31.3 31.7 Securitized assets4 11 Motor vehicle loans 54.8 73.1 97.1 114.6 115.8 113.5 117.5 124.3 124.8 12 Motor vehicle leases 12.7 9.7 6.6 7.6 7.4 7.2 7.0 6.9 7.0 13 Revolving 5.5 6.7 19.6 29.1 29.1 28.9 29.3 23.5 23.4 14 Other 19.6 18.8 17.1 15.5 15.2 15.2 15.0 14.8 14.5 15 Real estate 150.3 174.0 198.9 208.5 212.7 214.9 213.1 217.8 210.8 16 One- to four-family 90.0 108.2 130.6 140.1 144.7 146.9 144.8 150.2 143.2 17 Other 31.2 37.6 41.7 42.2 42.0 42.2 42.6 42.1 42.3 Securitized real estate assets4 18 One- to four-family 29.0 28.0 24.7 23.4 23.2 23.0 22.8 22.7 22.4 19 Other .1 .2 1.9 2.8 2.8 2.8 2.9 2.9 2.9 20 Business 389.9 449.6 525.0 542.0 530.3 522.6 528.4 522.0 517.6 21 Motor vehicles 64.8 69.4 75.5 83.9 79.6 56.9 57.8 52.7 52.9 22 Retail loans 19.5 21.1 18.3 16.6 16.6 16.7 16.7 16.8 16.2 23 Wholesale loans5 32.8 34.8 39.7 49.3 45.0 22.2 23.6 18.7 19.5 24 Leases 12.5 13.6 17.6 18.1 18.0 18.0 17.5 17.2 17.2 25 Equipment 212.2 238.7 283.5 292.6 287.3 288.4 288.2 290.6 287.3 26 Loans 59.2 64.5 70.2 76.1 74.5 76.1 76.8 79.9 77.1 27 Leases 153.0 174.2 213.3 216.4 212.8 212.3 211.4 210.7 210.2 28 Other business receivables6 63.9 87.0 99.4 105.4 103.8 103.2 105.1 104.8 103.9 Securitized assets4 29 Motor vehicles 29.2 31.5 37.8 31.4 30.6 45.2 48.0 45.3 43.9 30 Retail loans 2.6 2.9 3.2 3.1 2.9 2.8 2.6 2.4 3.0 31 Wholesale loans 24.7 26.4 32.5 25.8 25.1 39.8 42.8 40.3 38.3 32 Leases 1.9 2.1 2.2 2.6 2.6 2.6 2.7 2.7 2.7 33 Equipment 13.0 14.6 23.1 22.6 23.0 22.7 23.1 22.5 23.4 34 Loans 6.6 7.9 15.5 15.2 15.2 14.8 15.1 14.5 15.5 35 Leases 6.4 6.7 7.6 7.5 7.8 7.9 8.0 8.0 7.9 36 Other business receivables6 6.8 8.4 5.6 6.0 6.0 6.2 6.1 6.1 6.2 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidibreakdowns have been obtained for some components. In addition, previously unavailable aries of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods, such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and 1. Owned receivables are those carried on the balance sheet of the institution. Managed receivable dealer capital; small loans used primarily for business or farm purposes; and receivables are outstanding balances of pools upon which securities have been issued; these wholesale and lease paper for mobile homes, campers, and travel trailers. balances are no longer carried on the balance sheets of the loan originator. Data are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • March 2002 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2001 June July Aug. Sept. Oct. Nov. Dec. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 210.7 234.5 245.0 250.6 242.9 241.5 246.6 242.9 252.2 253.0 2 Amount of loan (thousands of dollars) 161.7 177.0 184.2 188.7 182.7 181.3 184.3 181.2 189.1 190.0 3 Loan-to-price ratio (percent) 78.7 77.4 77.3 77.3 77.3 76.6 77.1 76.9 77.2 77.2 4 Maturity (years) 28.8 29.2 28.8 28.7 28.8 28.7 29.0 28.5 28.6 28.9 5 Fees and charges (percent of loan amount)2 .77 .70 .67 .66 .66 .61 .61 .67 .63 .69 Yield fpercent per year) 6 Contract rate1 6.94 7.41 6.90 7.02 7.01 7.06 6.80 6.63 6.54 6.68 7 Effective rate13 7.06 7.52 7.00 7.12 7.11 7.15 6.89 6.73 6.63 6.79 8 Contract rate (HUD series)4 7.45 n.a. 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 7.74 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 GNMA securities6 7.03 7.57 6.36 6.55 6.49 6.29 6.03 5.86 5.96 6.43 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 523,941 610,122 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 FHA/VA insured 55,318 61,539 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Conventional 468,623 548,583 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Mortgage transactions purchased (during period) 195,210 154,231 270,384 24,430 26,082 22,111 16,016 20,020 25,389 36,769 Mortgage commitments (during period) 15 Issued7 187,948 163,689 52,796 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 To sell8 5,900 11,786 1,601 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 324,443 385,693 491,719 443,810 454,485 465,553 470,850 477,588 483,911 491,719 18 FHA/VA insured 1,836 3,332 3,506 2,738 2,689 2,643 2,597 2,553 3,562 3,506 19 Conventional 322,607 382,361 488,213 441,072 451,796 462,910 468,253 475,035 480,349 488,213 Mortgage transactions (during period) 20 Purchases 239,793 174,043 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Sales 233,031 166,901 389,611 38,133 44,574 33,933 32,666 31,646 38,958 50,532 22 Mortgage commitments contracted (during period)9 228,432 169,231 417,434 37,312 43,788 34,087 31,140 41,346 42,619 51,456 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 5,203,854 5,726,058 6,363,297 6,637,220 6,790,900 6,938,109 7,061,571 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 301,700 333,677 376,466 395,650 403,925 414,386 423,557 438,827 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 10 Nonfarm, nonresidential 421,865 457,054 517,130 557,059 570,513 583,071 596,405 612,366 11 Farm 26,987 29,035 31,839 33,717 33,919 34,016 34,234 35,159 12 Savings institutions3 631,826 643,957 668,634 701,992 721,563 723,534 741,114 751,660 13 One- to four-family 520,782 533,895 549,046 578,612 595,518 595,053 608,289 616,506 14 Multifamily 59,540 56,847 59,168 59,174 60,077 61,094 62,666 63,193 15 Nonfarm, nonresidential 51,150 52,798 59,945 63,688 65,437 66,852 69,589 71,378 16 Farm 354 417 475 518 531 535 569 583 17 Life insurance companies 206,840 213,640 230,787 232,615 234,735 235,941 235,050 237,146 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 20 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 30 Farm 4,852 4,513 4,268 4,179 4,167 4,148 4,093 4,072 31 Federal Housing and Veterans' Administrations 3,811 3,674 3,712 3,845 3,395 3,507 2,873 2,918 32 One- to four-family 1,767 1,849 1,851 1,832 1,327 1,308 1,276 1,267 33 Multifamily 2,044 1,825 1,861 2,013 2,068 2,199 1,597 1,651 34 Resolution Trust Corporation -278 24 -10 0 0 0 0 0 35 One- to four-family 0 0 0 0 0 0 0 0 36 Multifamily 0 0 0 0 0 0 0 0 37 Nonfarm, nonresidential 0 0 0 0 0 0 0 0 38 Farm 0 0 0 0 0 0 0 0 39 Federal Deposit Insurance Corporation 724 361 152 72 82 45 50 24 40 One- to four-family 117 58 25 12 13 7 8 4 41 Multifamily 140 70 29 14 16 9 10 5 42 Nonfarm, nonresidential 467 233 98 46 53 29 32 15 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 161,308 157,675 151,500 153,507 152,815 155,363 156,294 159,221 45 One- to four-family 149,831 147,594 141,195 142,478 141,786 144,150 145,014 147,730 46 Multifamily 11,477 10,081 10,305 11,029 11,029 11,213 11,280 11.491 47 Federal Land Banks 30,657 32,983 34,187 34,830 35,549 36,326 37,072 38.686 48 One- to four-family 1,804 1,941 2,012 2,049 2,092 2,137 2.181 2,276 49 Farm 0 0 0 0 0 0 0 0 50 Federal Home Loan Mortgage Corporation 48,454 57,085 56,676 56,972 57,046 59,240 60,110 61,542 51 One- to four-family 42,629 49,106 44,321 42,892 42,138 42,871 42,771 42,537 52 Multifamily 5,825 7,979 12,355 14,080 14,908 16,369 17,339 19,005 53 Mortgage pools or trusts5 2,232,848 2,581,969 2,947,760 3,035,546 3,116,180 3,232,338 3,303,731 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 5/ 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 7.3 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 DomesticN onfinancial Statistics • March 2002 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2001 June July Aug. Sept. Oct.' Nov. Seasonally adjusted 1 Total 1,315,797 1,413,564 1,557,931 l,616,292r 1,614,677' 1,618,374' 1,621,613' 1,632,813 1,652,655 2 Revolving 560,155 594,339 663,170 699,651 694,227' 692,376' 692,732 689,209 694,627 3 Nonrevolving2 755,642 819,225 894,761 916,642 920,450' 925,998' 928,880' 943,604 958,028 Not seasonally adjusted 4 Total 1,346,596 1,446,127 1,593,051 1,608,104 1,607,080' 1,620,732' l,622,818r 1,635,919 1,660,902 By major holder 5 Commercial banks 508,932 499,758 541,470 540,213 535,459 537,724 535,255 539,758 547,823 6 Finance companies 183,345 201,549 219,783 214,271 215,566' 223,079' 220,884' 224,098 238,741 7 Credit unions 155,406 167,921 184,434 186,357 185,081 186,274 185,732 185,523 185,878 8 Savings institutions 51,611 61,527 64,557 65,340 66,584 67,828 69,072 68,275 67,477 9 Nonfinancial business 74,877 80,311 82,662 68,013 65,228 63,310 60,212 58,719 60,287 10 Pools of securitized assets3 372,425 435,061 500,145 533,910' 539,163' 542,517' 551,662' 559,546 560,696 By major type of credit* 11 Revolving 586,163 621,914 692,955 693.662 686,887' 688,770' 688,512 685,802 696,829 12 Commercial banks 210,346 189,352 218,063 213,014 208,852 206,279 203,126 208,591 217,140 13 Finance companies 31,944 32,483 37,561 36,848 36,397' 35,979' 35,90! 27,999 29,280 14 Credit unions 19,930 20,641 22,226 21,268 21,799 22,195 21,879 21,666 22,055 15 Savings institutions 12,450 15,838 16,560 16,389 16,568 16,746 16,925 16,862 16,800 16 Nonfinancial business 39,166 42,783 42,430 31,366 29,314 27,603 25,207 23,709 24,463 17 Pools of securitized assets3 272,327 320,817 356,114 374,776 373,958 379,968 385,474 386,975 387,092 18 Nonrevolving 760,433 824,213 900,095 914,442 920,193' 931,962' 934,306' 950,118 964,073 19 Commercial banks 298,586 310,406 323,407 327,199 326,607 331,445 332,129 331,168 330,683 20 Finance companies 151,401 169,066 182,221 177,422 179,169' 187,100' 184,983' 196,100 209,461 21 Credit unions 135,476 147,280 162,208 165,089 163,282 164,079 163,853 163,857 163,823 22 Savings institutions 39,161 45,689 47,997 48,951 50,016 51,082 52,147 51,413 50,678 23 Nonfinancial business 35,711 37,528 40,232 36,647 35,914 35,707 35,005 35,010 35,824 24 Pools of securitized assets3 100,098 114,244 144,031 159,134 165,206' 162,549' 166,188' 172,571 173,604 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 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks2 1 48-month new car 8.72 8.44 9.34 8.67 n.a. n.a. 8.31 n.a. n.a. 7.86 2 24-month personal 13.74 13.39 13.90 13.28 n.a. n.a. 13.25 n.a. n.a. 12.62 Credit card plan 3 All accounts 15.71 15.21 15.71 15.07 n.a. n.a. 14.60 n.a. n.a. 14.22 4 Accounts assessed interest 15.59 14.81 14.91 14.63 n.a. n.a. 14.64 n.a. n.a. 13.88 Auto finance companies 5 New car 6.30 6.66 6.61 6.56 6.15 6.20 6.41 5.42 2.71 2.89 6 Used car 12.64 12.60 13.55 12.57 12.05 11.79 12.06 12.01 11.41 10.96 OTHER TERMS3 Maturity (months) 7 New car 52.1 52.7 54.9 57.0 57.2 57.3 57.7 57.2 53.7 51.0 8 Used car 53.5 55.9 57.0 57.8 57.6 57.6 57.6 57.6 57.2 56.7 Loan-to-value ratio 9 New car 92 92 92 92 91 91 91 92 94 92 10 Used car 99 99 99 100 100 100 100 101 100 100 Amount financed (dollars) 11 New car 19,083 19,880 20,923 21,871 22,124 22,687 22,591 23,049 24,443 24,934 12 Used car 12,691 13,642 14,058 14,350 14,586 14,571 14,321 14,408 14,627 14,669 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 QL Q2 Q3 Q4 Ql' Q2' Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors . . 705.9 733.6r 805.5r l,048.8r l,099.8r 951.1r 978.2r 792.0r 772.1r 1,006.5 1,018.6 1,275.5 By sector and instrument 2 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 -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 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 10 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 11 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 1? 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 N 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 667711..22 661166..22 IX 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 12.8r 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 74 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 76 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 784.5 822.0' 877.3r 1,092.2' l,127.8r 1,071.4' 970.3r 880.6r 838.9r 999.6 961.5 1,148.7 Financial sectors 29 Total net borrowing by financial sectors 454.0 550.1' 662.2' l,087.2r 1,084.4' 608.0' 897.1' 794.0' 963.1r 864.2 795.7 1,086.3 By 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 882200..66 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 --1155..88 6699..88 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 47 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 ..11 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 226688..33 328.0 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 50.6r 57.8' 57.1' 70.3' 61.R 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 ..66 ..88 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 1100..55 --1100..22 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 NonfinancialS tatistics • March 2002 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued Billions of dollars; 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 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 CCoorrppoorraattee 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 -.2' -4.1 -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 -7.3' -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.l (780) quarterly statistical release, tables F.2 through F4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 11999999 Qi 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 ? Domestic nonfederal nonfinancial sectors -79.3 14.0' -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 Nonfarm noncorporate business 4.4 4.2 3.0 18.1 7.1 -2.1 .4 -4.0 -2.7 ^1.8 -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 8 273.9 414.4 3)1.3 254.2 208.8 315.2 197.9 216.2 387.8 411.2' 349.6 381.9 9 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 1? 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 N 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 -48.6 16.5 14 Bank holding companies -.3 3.9 5.4 -.9 6.2 ^12.2 3.5 -6.7 -3.2 7.3 -2.8 -1.4 n 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 ifi 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 88..88 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 116622..44 20 Other insurance companies 21.5 22.5 25.2 5.8 -3.0 -11.2 -18.1 6.2 -11.7 2.1 ..11 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 --77..11 -.9 27 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 27 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 78 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 11..11 7.7 3? Brokers and dealers 90.1 -15.7 14.9 6.8 -34.7 102.9' 89.8' 152.1' -69.0 289.5' 3355..44 250.1 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 l,674.6r 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 11..55 -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 ^1.0 .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 4? 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 -4.1' -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 47 133.7 123.3 139.7 109.2 222.3 193.6' 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 57 Investment in bank personal trusts 6.4 -5.3 -49.9 -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 3,983.1r 3,722.3 4,749.2 Liabilities not identified as assets (—) 56 Treasury currency -.3 -.4 -.2 -.1 -.7 -1.8 -.7 .9 --33..33 --33..66 --..55 --..77 57 Foreign deposits 25.0R 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 —198.7r -173.7' -245.5' -127.4' -418.9' -501.0' -353.3' -232.2' -390.1' 27.3' -477.6 -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 3,046.2' 3,360.7r 4,392.3r 4,740.8r 4,377.5r 4,485.3r 4,749.6r 3,903.1r 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.l and F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • March 2002 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 2000 2001 11999977 Ql Q2 Q3 Q4 Ql' Q2' Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 14,441.1r 15,245.1' 16,293.9r 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 3 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 By 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 y Bank loans n.e.c 934.0r 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 ii 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 3,720.0r 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 By 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 iy 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 Bonds 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 14,983.3r 15,853.1r 16,945.4r 18,108.1' 18,366.1' 18,542.5' 18,769.3' 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 il 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 47 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 . 19,812.1r 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.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999966 Ql Q2 Q3 Q4 Ql Q2' Q3 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 19,812.1R 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 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 2,086.8' 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 17 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.-affiliated 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 7.1 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 73 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 74 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 75 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 78 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 79 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 37 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 19,812.1" 21,3U.r 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 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 47 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 5533 4455,,330088..77'' 4499,,880033..33'' 5555,,445577..66'' 6611,,442266..66'' 6622,,992211..33'' 6633,,449922..55'' 6644,,882233..66'' 6644,,990033..99'' 6655,,001177..33'' 66,266.6 6666,,445522..11 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 67,807.3' 76,812.0' 87,317.3' 89,557.3' 89,389.6' 90,436.5' 89,303.8' 87,097.8' 89,254.8 86,517.1 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L.l and L.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • March 2002 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 2001 MMeeaassuurree 11999999 22000000 22000011 Apr. May June July Aug. Sept. Oct.' Nov.' Dec.P 1 Industrial production1 139.4 145.7 140.1 142.0 141.6 140.3 140.4 140.0 138.5r 137.5 136.9 136.7 Market groups 2 Products, total 129.6 133.5 129.3 131.0 130.9 130.0 130.3 129.4 127.7' 126.6 126.5 126.2 3 Final, total 131.8 135.8 132.0 134.0 133.9 132.9 133.2 132.0 130.0' 129.0 129.2 128.8 4 Consumer goods 119.9 121.9 120.6 121.3 121.4 121.1 122.2 121.4 119.9' 119.5 119.8 119.8 5 Equipment 153.5 161.8 152.3 157.3 156.5 154.1 152.7 150.5 147.1' 145.2 144.8 143.6 6 Intermediate 123.2 126.4 121.4 122.2 122.2 121.4 121.4 121.6 120.7' 119.4 118.5 118.6 V Materials 155.6 166.4 158.0 160.3 159.4 157.4 157.2 157.6 156.5' 155.6 154.3 154.3 Industry groups 8 Manufacturing 144.7 151.6 144.8 146.7 146.4 145.0 145.2 144.5 142.9' 141.8 141.5 141.3 9 Capacity utilization, manufacturing (percent)2 . . 80.6 80.7 75.0 76.0 75.8 75.0 75.1 74.6 73.7' 73.1 72.9 72.8 10 Construction contracts3 115.0 129.5 137.8 13 t.0r 136.0r 133.0' 137.0' 133.0' 142.0' 137.0 136.0 148.0 11 Nonagricultural employment, total4 118.7 121.3 121.8 122.0 122.0 122.0 122.0 121.9 121.8 121.4 121.0 120.9 12 Goods-producing, total 109.8 110.7 108.1 109.4 109.0 108.4 108.1 107.5 107.1 106.5 105.8 105.2 13 Manufacturing, total 102.5 102.0 97.7 99.5 98.7 98.1 97.7 96.8 96.4 95.7 94.8 94.1 14 Manufacturing, production workers 103.7 102.8 97.0 99.0 98.2 97.3 96.8 95.9 95.3 94.6 93.6 92.8 15 Service-producing 121.1 124.2 125.5 125.4 125.6 125.6 125.7 125.9 125.8 125.4 125.2 125.2 16 Personal income, total 144.3 154.3 161.9 161.3 161.6 162.1 162.7 162.8 162.7 162.5 162.5 163.2 17 Wages and salary disbursements 149.9 162.2 171.0 170.8 170.7 171.5 171.8 171.8 171.7 171.4 171.5 172.4 18 Manufacturing 134.0 142.3 144.3 146.8 145.4 144.9 144.9 144.1 143.4 142.1 140.9 140.8 19 Disposable personal income5 139.2 147.9 156.0 154.5 154.8 155.2 157.9 161.0 159.1 156.2 156.3 156.8 20 Retail sales5 155.1 167.0 172.6 172.2 172.4 172.3 172.6 172.9 169.2 180.8 174.6 174.1 Prices6 21 Consumer (1982-84=100) 166.6 172.2 177.1 176.9 177.7 178.0 177.5 177.5 178.3 177.7 177.4 176.7 22 Producer finished goods (1982-100) 133.0 138.0 140.7 141.8 142.7 142.2 140.5 140.9' 141.7 139.6 138.4 137.2 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 is described in the March 2002 4. Based on data from the U.S. Department of Labor, Employment and Earnings. Series issue of the Bulletin. For a description of the methods of estimating industrial production and covers employees only, excluding personnel in the armed forces. capacity utilization, see "Industrial Production and Capacity Utilization: Historical Revision 5. Based on data from U.S. Department of Commerce, Survey of Current Business. and Recent Developments," Federal Reserve Bulletin, vol. 83 (February 1997), pp. 67-92, 6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price and the references cited therein. For details about the construction of individual industrial indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics, production series, see "Industrial Production: 1989 Developments and Historical Revision," Monthly Labor Review. Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204, NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for 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 11999999'' 22000000'' 22000011 May June July Aug. Sept. Oct.' Nov.' Dec. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 139,368 140,863 141,815 141,445' 114411,,446688'' 114411,,665511'' 114411,,338800'' 114422,,006688'' 114422,,228800 114422,,227799 114422,,331144 Employment 2 Nonagricultural industries3 130,207 131,903 131,929 132,042' 131,959' 132,051' 131,282' 131,823' 131,412 131,099 130,809 3 Agriculture 3,281 3,305 3,144 3,193 3,044' 3,055' 3,126' 33,,118811'' 33,,220033 33,,115544 33,,224466 Unemployment 4 Number 5,880 5,655 6,742 6,210' 6,465' 6,545' 6,972' 7,064' 7,665 8,026 8,259 5 Rate (percent of civilian labor force) 4.2 4.0 4.8 4.4 4.6' 4.6' 4.9 5.0' 5.4 5.6 5.8 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 128,916 131,759 132,210 132,530 132,431 132,449 132,395 132,230 131,782 131,427 131,297 7 Manufacturing 18,552 18,469 17,697 17,879 17,757 17,688 17,533 17,448 17,325 17,159 17,037 8 Mining 539 543 563 564 565 567 569 569 569 567 564 9 Contract construction 6,415 6,698 6,861 6,881 6,864 6,867 6,861 6,871 6,852 6,851 6,847 10 Transportation and public utilities 6,834 7,019 7,069 7,130 7,118 7,108 7,082 7,070 7,016 6,952 6,919 11 Trade 29,758 30,331 30,498 30,584 30,583 30,623 30,593 30,524 30,393 30,365 30,298 12 Finance 7,555 7,560 7,624 7,644 7,631 7,618 7,623 7,633 7,634 7,638 7,627 13 Service 39,055 40,460 41,024 41,078 41,085 41,046 41,129 41,134 40,995 40,889 40,942 14 Government 20,206 20,681 20,874 20,770 20,828 20,932 21,005 20,981 20,998 21,006 21,063 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 2001 2001 2001 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2 Q3r Q4 Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 143.5 141.3 139.6 137.0 181.8 182.6 183.2 183.7 78.9 77.4 76.2 74.6 2 Manufacturing 148.4 146.0 144.2 141.6 192.3 193.2 193.6 194.1 77.2 75.6 74.5 72.9 3 Primary processing3 172.0 168.9 167.1 164.6 221.4 223.0 223.8 224.6 77.7 75.8 74.7 73.3 4 Advanced processing4 135.3 133.3 131.5 128.8 176.2 176.6 176.9 177.2 76.8 75.5 74.3 72.7 Durable goods 185.0 181.9 178.3 173.5 244.4 246.3 247.5 248.6 75.7 73.8 72.0 69.8 6 Lumber and products 110.2 113.2 115.5 113.8 148.2 148.5 148.8 149.0 74.4 76.2 77.6 76.3 7 Primary metals 120.8 120.5 117.8 109.7 151.0 150.8 150.6 150.4 80.0 79.9 78.2 73.0 8 Iron and steel 113.7 117.3 115.7 106.4 147.9 147.4 146.8 146.2 76.9 79.6 78.8 72.8 9 Nonferrous 129.5 124.6 120.6 114.0 155.1 155.3 155.6 155.9 83.5 80.2 77.5 73.1 10 Industrial machinery and equipment 226.9 217.0 208.8 201.5 295.3 297.3 298.8 300.0 76.8 73.0 69.9 67.2 11 Electrical machinery 544.2 509.2 485.3 483.3 716.8 735.6 745.4 753.6 75.9 69.2 65.1 64.1 12 Motor vehicles and parts 155.2 166.8 169.5 165.2 218.7 220.1 221.5 222.9 71.0 75.8 76.5 74.1 13 Aerospace and miscellaneous transportation equipment , 100.2 99.0 95.9 90.9 135.4 135.3 135.2 135.1 74.0 73.2 71.0 67.3 14 Nondurable goods 113.2 111.5 111.0 110.1 143.1 143.0 142.9 142.9 79.1 77.9 77.7 77.1 15 Textile mill products 91.4 88.0 85.3 82.6 118.4 117.4 116.4 115.3 77.2 74.9 73.3 71.6 16 Paper and products 109.2 108.9 108.5 107.8 138.5 138.7 138.8 139.0 78.9 78.5 78.1 77.5 17 Chemicals and products 121.6 119.6 121.1 121.9 158.1 158.3 158.5 158.6 76.9 75.6 76.4 76.9 18 Plastics materials 121.0 116.4 117.4 114.9 152.0 152.5 153.0 153.4 79.6 76.3 76.7 74.9 19 Petroleum products 114.8 115.5 113.2 112.9 122.0 122.2 122.4 122.7 94.1 94.5 92.5 92.1 20 Mining 102.0 102.9 101.8 99.4 111.9 112.0 112.2 112.4 91.1 91.8 90.7 88.4 21 Utilities 123.5 120.0 119.1 117.2 134.6 136.2 138.1 140.0 91.8 88.1 86.3 83.7 22 Electric 125.6 123.6 122.2 121.3 133.1 135.1 137.4 139.8 94.4 91.5 88.9 86.8 1973 1975 Previous cycle5 Latest cycle6 2000 2001 High Low High Low High Low Dec. July Aug. Sept.r Oct/ Nov/ Dec/ Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 80.2 76.7 76.4 75.5 74.9 74.5 74.4 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 78.4 75.1 74.6 73.7 73.1 72.9 72.8 3 Primary processing3 91.8 67.3 88.6 65.7 88.3 76.7 79.6 74.9 74.8 74.4 73.7 73.1 73.0 4 Advanced processing4 86.5 72.5 86.3 71.0 84.2 76.6 77.6 75.1 74.5 73.3 72.7 72.8 72.6 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 77.7 72.8 72.3 71.0 69.9 69.8 69.7 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 75.9 76.6 78.1 78.2 76.1 76.5 76.4 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 83.2 79.3 78.0 77.4 75.6 72.7 70.6 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 79.4 80.8 78.8 76.9 75.8 73.7 68.9 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 87.4 77.7 77.1 77.8 75.4 71.6 72.4 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 77.8 70.5 70.6 68.6 67.5 67.5 66.6 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 81.7 65.4 65.1 64.8 64.4 64.1 63.9 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 72.9 79.0 76.7 74.0 70.7 74.4 77.3 13 Aerospace and miscellaneous transportation equipment. . . 78.4 67.6 81.9 66.6 87.3 79.2 74.4 71.8 70.8 70.3 69.4 67.2 65.3 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 79.3 78.0 77.7 77.3 77.4 77.0 76.8 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 76.0 72.2 73.7 74.1 71.9 71.4 71.5 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 80.0 77.9 77.6 78.9 77.9 77.6 77.1 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 76.6 76.5 76.5 76.3 77.4 76.8 76.5 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 70.8 76.9 77.6 75.8 77.7 74.3 72.8 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 93.6 93.6 92.2 91.5 93.6 92.1 90.5 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 90.2 90.9 90.4 90.9 89.1 88.4 87.7 21 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 95.6 86.0 87.7 85.1 85.2 83.0 82.9 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 97.6 88.5 90.6 87.5 88.0 86.3 86.0 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; fabricated metals; semiconductors and related electronic components; and rates was released in November 2001. The recent annual revision is described in the March motor vehicle parts. 2002 issue of the Bulletin. For a description of the methods of estimating industrial 4. Advanced processing includes foods, tobacco, apparel, furniture and fixtures, printing production and capacity utilization, see "Industrial Production and Capacity Utilization: and publishing, chemical products such as drugs and toiletries, agricultural chemicals, leather Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February and products, machinery except semiconductors and related electronic components, transpor- 1997), pp. 67-92, and the references cited therein. For details about the construction of tation equipment except motor vehicle parts, instruments, and miscellaneous manufacturing. individual industrial production series, see "Industrial Production: 1989 Developments and 5. Monthly highs, 1978-80; monthly lows, 1982. Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. 6. Monthly highs, 1988-89; monthly lows, 1990-91. 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 • March 2002 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 2000 2001 „ rroouupp pprroo-- 2001 aavvgg.. tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.' Oct.r Nov/ Dec.P Index(1992= 100) MAJOR MARKETS 1 Total index 100.0 140.1 145.1 143.9 143.5 142.9 142.0 141.6 140.3 140.4 140.0 138.5 137.5 136.9 136.7 2 Products 60.8 129.3 133.6 132.7 132.2 132.1 131.0 130.9 130.0 130.3 129.4 127.7 126.6 126.5 126.2 3 Final products 46.3 132.0 136.3 135.2 134.7 135.1 134.0 133.9 132.9 133.2 132.0 130.0 129.0 129.2 128.8 4 Consumer goods, total 29.0 120.6 122.5 121.0 121.2 121.8 121.3 121.4 121.1 122.2 121.4 119.9 119.5 119.8 119.8 5 Durable consumer goods 5.8 151.2 153.2 147.3 149.1 152.9 152.2 154.2 153.2 157.0 154.1 151.8 146.2 152.1 154.7 6 Automotive products 2.5 149.9 145.3 138.5 141.8 149.8 149.6 152.8 152.3 161.1 155.6 152.5 145.2 155.8 160.6 7 Autos and trucks 1.6 160.5 150.2 142.2 147.8 159.6 160.1 165.7 163.4 178.3 169.1 163.9 154.5 170.7 177.8 8 Autos, consumer 0.9 93.9 89.3 93.4 93.3 97.0 96.0 97.9 97.2 97.5 90.6 92.7 86.9 94.7 101.1 9 Trucks, consumer 0.7 231.4 215.1 194.4 206.0 226.3 228.4 237.9 234.0 264.3 252.6 239.8 226.5 251.5 259.6 10 Auto parts and allied goods 0.9 133.5 138.2 133.3 132.8 134.7 133.5 132.5 135.1 133.9 134.5 134.8 131.0 132.3 133.2 11 Other 3.3 151.3 160.9 155.9 156.1 155.1 153.9 154.5 152.9 151.0 151.0 149.8 146.1 146.5 146.5 12 Appliances, televisions, and air conditioners 0.9 281.7 306.4 289.5 284.4 284.0 284.0 292.1 285.0 271.7 289.5 288.2 271.6 277.1 283.4 13 Carpeting and furniture 0.8 119.1 125.5 119.8 124.7 123.1 119.9 117.7 118.6 116.2 117.6 118.5 117.0 119.1 118.4 14 Miscellaneous home goods 1.6 114.1 120.5 119.5 118.3 117.7 117.4 117.7 116.2 117.7 112.7 110.5 109.2 107.5 106.5 15 Nondurable consumer goods 23.2 113.2 115.1 114.5 114.4 114.3 113.9 113.6 113.4 113.9 113.6 112.3 112.9 112.1 111.5 16 Foods and tobacco 10.4 108.7 110.3 109.4 109.5 109.3 108.9 108.6 108.9 109.3 108.7 107.7 107.9 108.1 107.6 17 Clothing 2.4 78.2 82.2 83.0 82.6 82.8 82.0 80.6 78.2 79.0 76.4 74.8 74.6 73.3 73.2 18 Chemical products 4.6 145.1 140.1 139.4 141.7 143.8 143.4 145.2 145.7 147.5 146.7 145.9 148.8 148.6 148.3 19 Paper products 2.9 105.6 107.9 109.2 107.3 106.9 107.4 106.7 106.6 106.0 105.7 105.1 103.9 102.2 101.0 20 Energy 3.0 117.4 125.8 124.0 122.1 119.8 118.7 116.9 115.8 116.0 117.8 114.8 116.3 112.7 112.0 21 Fuels 0.8 113.9 112.3 112.9 114.2 113.9 114.6 115.6 115.2 114.3 112.2 113.9 116.1 114.0 110.6 22 Residential utilities 2.1 119.3 133.2 130.0 126.2 122.8 120.7 117.2 115.8 116.5 120.5 115.0 116.0 111.6 112.4 23 Equipment 17.3 152.3 162.0 161.8 159.8 159.6 157.3 156.5 154.1 152.7 150.5 147.1 145.2 144.8 143.6 24 Business equipment 13.2 175.8 189.3 188.7 186.1 185.4 182.1 181.3 177.8 176.1 173.3 168.4 166.2 166.0 164.6 25 Information processing 5.4 278.9 303.4 304.1 297.5 294.1 288.4 286.8 279.6 275.2 271.9 266.0 265.6 265.4 263.5 26 Computer and office equipment 1.1 942.5 1,012.9 1,017.4 1,012.6 996.5 970.9 950.6 948.7 934.2 925.5 903.0 899.9 905.0 912.4 27 Industrial 4.0 125.2 135.9 137.2 132.4 132.6 129.1 129.0 125.2 123.1 122.2 119.6 118.9 117.6 116.3 28 Transit 2.5 127.6 134.0 131.0 131.6 135.6 133.8 134.5 133.1 133.8 128.7 124.6 119.2 118.7 118.6 29 Autos and trucks 1.2 145.8 145.9 140.0 142.5 151.1 148.0 152.5 150.5 157.1 149.6 143.6 136.2 143.6 151.2 30 Other 1.3 139.2 148.5 145.4 151.6 143.3 143.1 139.1 140.7 140.8 139.8 131.7 130.1 134.3 130.6 31 Defense and space equipment 3.4 73.9 75.2 75.5 74.1 74.5 74.4 73.5 73.4 73.6 73.5 73.8 74.0 73.8 73.9 32 Oil and gas well drilling 0.6 143.4 139.9 146.7 147.7 151.0 152.2 151.9 150.4 147.1 143.1 140.4 133.5 129.5 124.5 33 Manufactured homes 0.2 93.9 86.0 79.6 87.1 87.3 88.6 91.7 96.0 95.4 97.9 102.9 100.2 99.5 100.9 34 Intermediate products, total 14.5 121.4 125.3 125.0 124.4 123.4 122.2 122.2 121.4 121.4 121.6 120.7 119.4 118.5 118.6 35 Construction supplies 5.4 137.3 139.5 138.8 138.6 139.4 139.0 138.7 138.0 137.3 138.8 138.1 134.1 133.6 133.1 36 Business supplies 9.1 112.0 116.9 116.9 116.0 113.8 112.2 112.4 111.6 112.0 111.3 110.4 110.6 109.5 110.1 37 Materials 39.2 158.0 164.5 162.8 162.5 160.9 160.3 159.4 157.4 157.2 157.6 156.5 155.6 154.3 154.3 38 Durable goods materials 20.7 212.7 223.9 220.3 219.7 218.0 216.4 216.2 212.9 212.6 212.0 209.4 207.7 205.9 206.4 39 Durable consumer parts 4.0 155.6 157.6 149.0 154.6 155.0 155.1 159.6 157.7 160.2 160.8 155.3 152.0 153.9 157.0 40 Equipment parts 7.5 442.1 482.4 474.0 470.1 464.3 452.9 446.5 436.1 429.9 429.6 430.4 432.0 427.9 428.1 41 Other 9.2 125.2 129.8 130.3 128.2 127.2 127.9 127.5 126.2 126.4 125.4 123.8 122.4 120.1 119.4 42 Basic metal materials 3.1 113.9 123.5 121.4 118.1 114.5 117.6 116.7 115.5 115.7 113.6 113.3 111.6 106.6 104.1 43 Nondurable goods materials 8.9 104.2 107.1 108.4 107.9 104.9 104.7 103.0 102.2 102.7 104.0 104.2 104.2 103.0 102.5 44 Textile materials 1.1 91.0 95.0 99.3 95.8 95.3 95.0 90.9 90.8 87.6 90.1 89.0 87.7 85.6 85.3 45 Paper materials 1.8 109.5 109.7 112.2 112.1 106.0 110.2 108.3 104.8 107.7 109.5 110.5 112.0 110.7 110.2 46 Chemical materials 4.0 102.6 106.3 107.8 108.0 104.8 101.8 100.5 100.3 100.9 102.2 102.1 102.6 100.7 99.9 47 Other 2.1 109.6 112.7 110.5 109.9 108.7 110.6 109.4 109.3 109.7 109.8 110.2 108.5 109.5 109.4 48 Energy materials 9.6 103.2 105.8 104.3 104.6 104.5 104.9 103.8 103.1 102.3 103.0 103.1 102.5 101.8 101.7 49 Primary energy 6.2 98.7 99.5 99.4 98.9 99.1 99.5 99.0 99.5 98.5 98.4 99.4 98.2 97.9 97.6 50 Converted fuel materials 3.4 111.8 118.9 113.6 116.1 115.5 115.7 113.1 109.1 109.0 111.4 109.3 110.3 108.8 109.2 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 139.7 145.2 144.1 143.6 142.6 141.7 141.1 139.9 139.5 139.4 138.0 137.3 136.3 135.8 52 Total excluding motor vehicles and parts 95.3 139.0 144.6 144.0 143.1 142.0 141.0 140.2 139.0 138.7 138.5 137.2 136.5 135.5 134.9 53 Total excluding computer and office equipment 98.4 134.2 139.0 137.8 137.4 136.9 136.0 135.7 134.4 134.6 134.1 132.8 131.8 131.2 131.0 54 Consumer goods excluding autos and trucks . . 27.5 118.5 121.2 120.0 119.9 119.8 119.3 119.0 118.8 119.1 118.8 117.6 117.6 117.0 116.5 55 Consumer goods excluding energy 26.1 121.0 122.0 120.5 121.0 122.0 121.6 122.0 121.8 122.9 121.8 120.6 119.8 120.7 120.8 56 Business equipment excluding autos and trucks 12.0 179.6 194.9 195.0 191.8 189.8 186.4 184.9 181.3 178.4 176.2 171.5 170.0 168.8 166.1 57 Business equipment excluding computer and office equipment 12.0 146.8 158.0 157.4 155.1 154.7 152.1 151.7 148.5 147.2 144.7 140.6 138.6 138.4 137.0 58 Materials excluding energy 29.6 175.8 183.9 182.2 181.6 179.3 178.2 177.4 175.0 175.0 175.2 173.7 172.7 171.0 171.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value '—Continued Monthly data seasonally adjusted 1992 Group c S o I d C e2 p p r o o r - - 2 a 0 v 0 g 1 . tion Apr. May July Aug. Sept.' Index(1992=100) MAJOR INDUSTRIES 59 Total index 100.0 140.1 145.1 143.9 143.5 142.9 142.0 141.6 140.3 140.4 140.0 138.5 137.5 136.9 136.7 60 Manufacturing 85.4 144.8 150.1 148.9 148.4 147.9 146.7 146.4 145.0 145.2 144.5 142.9 141.8 141.5 141.3 61 Primary processing 31.0 167.9 174.8 172.9 172.4 170.7 170.1 169.4 167.3 167.4 167.3 166.6 165.4 164.1 164.2 62 Advanced processing 54.4 131.9 136.4 135.5 135.1 135.1 133.7 133.6 132.5 132.9 131.7 129.8 128.8 128.9 128.7 63 Durable goods 44.8 179.2 188.5 185.6 184.6 184.7 182.9 182.7 180.1 180.0 178.9 176.1 173.5 173.5 173.6 64 Lumber and products ' ' 24 2.1 113.2 112.1 109.3 109.5 111.8 111.8 113.7 114.2 114.0 116.2 116.4 113.3 114.0 114.0 65 Furniture and fixtures 25 1.4 138.8 146.4 143.1 144.4 142.5 141.8 140.4 138.3 138.4 138.7 135.1 134.7 134.8 135.5 66 Stone, clay, and glass products 32 2.1 130.5 130.4 132.5 132.4 132.9 133.1 133.0 130.0 130.0 130.8 129.9 128.9 127.5 126.1 67 Primary metals 33 3.1 117.1 125.8 123.9 121.0 117.5 121.2 120.8 119.5 119.5 117.5 116.4 113.8 109.3 106.1 68 Iron and steel 331,2 1.8 113.2 117.8 115.4 114.4 111.3 115.8 118.4 117.7 118.8 115.7 112.7 111.0 107.7 100.5 69 Raw steel 331PT 0.1 103.0 104.3 106.6 106.9 107.0 99.2 106.2 107.8 108.3 106.2 105.8 99.5 95.1 87.5 70 Nonferrous 333-6,9 1.4 122.0 135.5 134.3 128.9 125.1 127.8 124.0 122.0 120.8 119.9 121.2 117.4 111.6 112.9 71 Fabricated metal products . . 34 5.0 130.2 136.0 136.2 133.2 132.2 131.0 131.0 129.5 131.1 131.0 128.7 126.9 126.1 126.8 72 Industrial machinery and equipment 35 7.8 213.1 228.2 228.1 227.0 225.5 220.2 217.0 213.8 210.2 211.0 205.1 202.1 202.4 200.0 73 Computer and office equipment 357 1.6 1,080.9 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 1,035.7 1,035.2 1,040.7 1,048.5 74 Electrical machinery 36 7.1 503.8 569.5 555.4 543.6 533.6 518.8 511.4 497.6 485.9 485.5 484.6 483.8 482.6 483.4 75 Transportation equipment . . 37 9.4 128.5 128.8 123.1 126.4 131.0 130.5 133.2 131.9 134.6 131.6 128.5 124.5 127.1 128.9 76 Motor vehicles and parts . 371 4.7 162.9 158.6 146.9 154.9 163.7 163.2 169.7 167.7 174.6 169.9 164.2 157.3 165.8 172.6 77 Autos and light trucks . 371PT 2.5 154.1 145.2 138.8 143.5 154.2 154.4 159.5 157.2 170.2 160.9 156.6 147.4 162.6 169.7 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.7 96.2 100.7 100.7 99.5 100.4 99.9 98.9 98.3 97.1 95.7 9955..00 9933..77 9900..88 88.1 79 Instruments 38 5.4 115.2 118.8 119.7 118.4 117.7 117.2 116.8 114.5 115.0 113.9 112.8 112.9 112.6 112.5 80 Miscellaneous 39 1.3 117.5 123.6 122.7 120.2 119.9 120.4 119.0 119.8 120.7 116.7 114.5 113.6 111.0 112.8 81 Nondurable goods 40.6 111.3 113.5 113.5 113.5 112.5 111.8 111.5 111.1 111.5 111.1 110.5 110.6 110.0 109.7 82 Foods 20 9.6 112.6 113.5 113.0 113.5 113.6 112.6 112.8 112.9 113.1 113.0 111.7 111.8 112.2 112.1 83 Tobacco products 21 1.6 93.8 98.7 96.2 94.8 93.3 94.8 92.9 93.8 95.0 93.2 92.7 92.8 92.7 90.8 84 Textile mill products 22 1.8 86.8 90.5 92.4 90.9 91.0 90.4 86.7 86.8 84.3 85.8 85.9 83.2 82.4 82.2 85 Apparel products 23 2.2 93.0 97.8 97.7 97.6 97.4 97.0 96.5 94.0 95.1 91.2 89.4 88.1 87.5 87.0 86 Paper and products 26 3.5 108.6 110.6 111.0 110.8 106.0 110.6 108.8 107.1 108.1 107.7 109.7 108.3 107.8 107.3 87 Printing and publishing .... 27 6.8 101.6 106.5 106.9 105.9 104.3 102.5 102.3 101.3 101.1 100.7 99.7 99.7 98.6 98.7 88 Chemicals and products .... 28 10.0 121.0 121.1 121.2 122.2 121.4 119.5 119.9 119.5 121.2 121.2 121.0 122.7 121.8 121.4 89 Petroleum products 29 1.4 114.1 114.1 114.5 115.3 114.7 115.4 115.6 115.5 114.6 112.9 112.1 114.7 113.0 111.1 90 Rubber and plastics 30 3.5 136.9 139.5 140.4 139.5 138.8 137.9 137.1 137.7 138.0 137.3 136.5 134.5 134.0 135.0 91 Leather and products 31 0.3 63.2 67.6 67.8 67.9 67.5 65.7 63.6 62.2 62.1 62.8 61.4 60.5 59.5 59.2 92 Mining 6.8 101.5 100.9 101.3 102.2 102.5 103.1 103.0 102.5 101.9 101.4 102.1 100.1 99.4 98.6 93 Metal 10 0.4 89.7 98.7 96.5 91.6 87.9 92.1 91.3 88.6 88.8 87.9 91.2 89.8 86.5 84.7 94 Coal 12 1.0 111.7 107.1 113.8 113.4 115.5 114.9 113.9 115.9 111.9 111.7 111.7 106.5 106.6 105.8 95 Oil and gas extraction 13 4.8 96.3 96.2 95.7 96.6 97.1 97.6 97.4 97.0 97.0 96.3 97.0 95.4 94.8 93.9 96 Stone and earth minerals 14 0.6 132.5 125.3 130.0 135.0 133.0 134.3 137.1 133.7 130.6 132.2 131.2 129.6 128.5 129.1 97 Utilities 7.8 119.9 127.7 125.2 123.4 121.8 121.3 119.7 119.1 118.2 121.1 118.1 118.8 116.2 116.7 98 Electric 491,3PT 6.2 123.2 128.7 127.1 125.0 124.7 125.2 122.8 122.9 121.0 124.5 121.0 122.3 120.7 120.9 99 Gas 492,3PT 1.6 109.4 122.4 117.0 116.2 110.3 107.1 107.8 105.2 107.4 108.1 106.9 105.6 100.0 101.1 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.7 143.8 149.8 149.3 148.2 147.0 145.8 145.1 143.7 143.5 143.0 141.7 141.0 140.1 113399..44 101 Manufacturing excluding computers and office equipment 83.8 138.0 142.9 141.7 141.3 140.8 139.8 139.5 138.1 138.4 137.7 136.2 135.2 134.9 113344..77 102 Computers, communications equipment, and semiconductors 5.6 1,048.4 1,193.6 1,166.2 1,146.7 1,127.5 1,089.4 1,065.4 1,036.7 1,006.7 999.5 994.8 1,000.8 999.7 1,002.3 103 Manufacturing excluding computers and semiconductors 81.3 121.2 124.8 124.0 123.7 123.3 122.6 122.6 121.5 122.0 121.3 119.9 118.8 118.5 111188..33 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.8 118.2 121.3 120.5 120.4 120.0 119.4 119.4 118.5 119.0 118.4 117.0 116.0 115.8 111155..66 Gross value (billions of 1996 dollars, annual rates) MAJOR MARKETS 105 Products, total 100.0 2,718.5 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 2,694.5 2,665.6 2,673.1 2,673.8 106 Final 77.2 2,100.0 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 2,075.1 2,053.8 2,065.8 2,065.9 107 Consumer goods 51.9 1,302.5 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 1,298.5 1,289.6 1,299.2 1,302.6 108 Equipment 25.3 797.4 850.5 845.0 837.7 839.5 825.8 823.3 811.6 806.5 793.3 773.1 759.5 761.3 757.0 109 Intermediate 22.8 618.7 639.8 637.1 634.5 630.8 625.7 626.3 623.7 623.5 625.0 619.4 611.8 607.5 608.0 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February 1997), pp. are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The 67-92, and the references cited therein. For details about the construction of individual latest historical revision of the industrial production index and the capacity utilization rates industrial production series, see "Industrial Production: 1989 Developments and Historical was released in November 2001. The recent annual revision is described in the March 2002 Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. issue of the Bulletin, For a description of the methods of estimating industrial production and 2. Standard Industrial Classification. capacity utilization, see "Industrial Production and Capacity Utilization: Historical Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • March 2002 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 2001 IItteemm 11999988 11999999 22000000 Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,612 1,664 1,592 1,663 1,627 1,587 1,621 1,587 1,571 1,571 1,528 1,485 1,595 2 One-family 1,188 1,247 1,198 1,228 1,209 1,218 1,205 1,225 1,211 1,210 1,164 1,140 1,211 3 Two-family or more 425 417 394 435 418 369 416 362 360 361 364 345 384 4 Started 1,617 1,641 1,569 1,623 1,592 1,626 1,610 1,634 1,660 1,559 1,585 1,518 1,625 5 One-family 1,271 1,302 1,231 1,288 1,208 1,295 1,285 1,292 1,290 1,271 1,265 1,225 1,248 6 / Un T d w er o c -f o a n m st i r l u y c o ti r o n m o a r t e e nd of period1 .... 3 9 4 7 6 1 3 9 3 5 9 3 3 9 3 3 8 4 3 9 3 8 5 9 1, 3 0 8 0 4 2 1, 3 0 3 0 1 6 1, 3 0 2 1 5 6 1, 3 0 4 1 2 2 1, 3 0 7 1 0 9 1, 2 0 8 0 8 9 1, 3 0 2 1 0 5 1, 2 0 9 0 3 9 1, 3 0 7 0 7 9 8 One-family 659 648 623 675 676 682 688 688 693 691 691 682 679 9 Two-family or more 312 305 310 314 326 324 328 324 326 318 324 327 330 10 Completed 1,474 1,605 1,574 1,531 1,478 1,569 1,499 1,643 1,583 1,620 1,543 1,577 1,576 11 One-family 1,160 1,270 1,242 1,201 1,207 1,232 1,225 1,275 1,269 1,276 1,258 1,317 1,265 12 Two-family or more 315 335 332 330 271 337 274 368 314 344 285 260 311 13 Mobile homes shipped 374 348 250 180 179 184 186 198 193 199 206 207 203 Merchant builder activity in one-family units 1 1 4 5 N Nu u m m b b e e r r s fo o r ld s ale at end of period1 8 30 8 0 6 8 31 8 5 0 8 30 7 1 7 9 29 5 5 9 9 2 5 8 3 9 8 2 9 9 9 3 8 29 8 6 2 3 8 0 8 1 9 8 30 7 7 7 8 3 7 0 1 9 8 3 5 10 4 R 8 3 5 0 1 8 8 30 9 8 5 Price of units sold (thousands of dollars)2 lb Median 152.5 161.0 169.0 169.1 166.3 175.2 175.3 179.4 175.0 173.7 166.4R 170.9 162.8 17 Average 181.9 195.8R 207.2R 211.0 210.2 205.5 211.4 211.7 209.3 207.5 203.3R 207.6 203.3 EXISTING UNITS (one-family) 18 Number sold 4,970 5,205 5,113 5,190 5,430 5,220 5,360 5,330 5,200 5,540 4,900 5,180 5,230 Price of units sold (thousands of dollars)2 19 Median 128.4 133.3 139.0 138.6 143.4 143.1 145.0 152.2 151.7 153.7 147.4 145.4 147.1 20 Average 159.1 168.3 176.2 174.6 179.5 179.9 183.6 191.1 190.6 193.5 185.2 181.8 182.9 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 703,533 763,914 817,130 869,334 869,140 870,826 869,574 861,571 863,742 856,629 851,883 858,928 861,802 22 Private 550,754 595,667 641,269 681,826 681,176 677,429 670,838 665,322 667,765 663,108 660,249 660,415 654,999 23 Residential 314,514 349,560 375,268 398,863 395,080 392,160 394,330 391,508 395,668 399,558 398,136 403,398 399,587 24 Nonresidential 236,240 246,107 266,001 282,963 286,096 285,269 276,508 273,814 272,097 263,550 262,113 257,017 255,412 25 Industrial buildings 40,547 32.794 31,984 33,386 34,823 34,662 31,943 32,966 34,645 31,884 31,291 26,174 24,430 26 Commercial buildings 95,760 104,531 116,988 124,568 128,792 124,935 118,601 116,842 115,894 110,860 111,249 111,993 108,989 2/ Other buildings 39,609 40,906 44,505 46,264 47,117 46,080 46,643 46,020 45,549 44,851 44,829 45,969 45,816 28 Public utilities and other 60,324 67,876 72,523 78,745 75,364 79,592 79,321 77,986 76,009 75,955 74,744 72,881 76,177 29 Public 152,779 168,247 175,861 187,508 187,964 193,397 198,736 196,249 195,977 193,521 191,635 198,514 206,802 30 Military 2,539 2,142 2,334 2,342 2,131 2,530 2,274 2,477 2,375 2,539 2,362 2,337 2,355 31 Highway 45,251 52,024 52,851 56,204 57,443 57,717 60,437 61,534 60,470 55,667 53,534 55,504 59,528 52 Conservation and development 5,415 5,995 6,043 7,838 7,573 6,332 7,216 6,592 6,063 7,265 7,344 7,485 7,341 33 Other 99,575 108,086 114,634 121,124 120,817 126,818 128,809 125,646 127,069 128,050 128,395 133,188 137,578 1. Not at annual rates. SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, which are 2. Not seasonally adjusted. private, domestic shipments as reported by the Manufactured Housing Institute and season- 3. Recent data on value of new construction may not be strictly comparable with data for ally adjusted by the Census Bureau, and (2) sales and prices of existing units, which are previous periods because of changes by the Bureau of the Census in its estimating techniques. published by the National Association of Realtors. All back and current figures are available For a description of these changes, see Construction Reports (C-30-76-5), issued by the from the originating agency. Permit authorizations are those reported to the Census Bureau Census Bureau in July 1976. from 19,000 jurisdictions beginning in 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data except as noted Change from 12 Change from 3 months earlier Change from 1 month earlier months earlier (annual rate) IIInnndddeeexxx llleeevvveeelll,,, IIIttteeemmm 2001 2001 DDDeeeccc... 22000000 22000011 222000000111111 DDeecc.. DDeecc.. Mar. June Sept. Dec. Aug. Sept. Oct. Nov. Dec. CONSUMER PRICES2 (1982-84=100) 1 All items 3.4 1.6 4.0 3.7 .7 -2.0 .1 .4 -.3 .0 -.2 176.7 ? 2.8 2.8 4.1 3.3 2.8 1.2 .2 .2 .5 -.1 -.1 174.7 Energy items 14.2 -13.0 6.0 16.8 -18.2 -43.6 -1.9 2.6 -6.3 -4.4 -3.2 111.4 4 All items less food and energy 2.6 2.7 3.5 2.6 2.4 2.6 .2 .2 .2 .4 ..11 187.8 Commodities .6 -.3 1.4 -1.6 .3 -.8 -.4 .3 -.1 .2 --..33 144.7 6 Services 3.4 4.0 4.2 4.5 3.1 4.0 .5 .1 .2 .5 .3 212.6 PRODUCER PRICES (1982=100) 7 Finished goods 3.6 -1.8 4.7 .9 -1.4 -10.8 .4' ,5r -1.6 -.6 -.7 137.2 8 Consumer foods 1.7 1.8 10.5 .9 2.0 -5.2 .7 .2 -.4 -.8 -.1 140.4 1 9 0 C O o th n e s r u m co e n r s u en m e e r r g y g oods 16 1 . . 6 4 -17 1 . . 2 3 9 2 . . 5 3 -4 2 . . 2 8 -16 1 . . 3 3 -4 -1 7 . . 3 0 1 f .3 f r 2. . 2 2 r ' -7 -. . 4 7 -3. . 8 3 ^ - 1 . . 1 0 1 8 5 0 7 . . 7 6 11 Capital equipment 1.2 -.1 .0 .6 1.7 -2.8 A' .1 -.7 .1 -.1 139.7 Intermediate materials 12 Excluding foods and feeds 4.2 -4.2 1.5 -1.2 -5.6 -10.9 -,5r .2' -1.5 -.5 --..99 112266..00 13 Excluding energy 1.6 -1.6 1.5 -.9 -3.7 -3.2 -.1 -.4 -.2 -.2 134.6 Crude materials 14 Foods 7.4 -7.4 15.6 -6.8 4.2 -34.5 -A' 1.0r -2.6 -5.9 -1.9 96.4 15 Energy 85.6 -53.0 —42.4 -52.0 -61.6 -53.9 -9.7r -19.2 28.3 -20.5 76.7 16 Other -5.5 -9.9 -10.8 -15.0 ^t.5 -9.3 -1.8r -,lr -1.7 -.8 .1 124.2 1. Not seasonally adjusted. SOURCE. U.S. Department of Labor, Bureau of Labor Statistics. 2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence measure of homeownership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 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 Q3 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 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 7 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 lb 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 ^12.3 -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 professional' 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, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 2000 2001 AAccccoouunntt 11999988 11999999 22000000 Q3 Q4 Ql 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 7 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 8 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 in Business and professional1 598.2 645.4 684.4 687.6 693.5 705.4 716.6 720.5 II 25.6 26.6 30.6 31.6 31.7 29.8 28.7 32.3 17 Rental income of persons2 138.6 147.7 141.6 138.3 141.7 139.6 139.0 144.0 N 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 J ?3 Gross domestic product 31,449.2 32,441.9 32,652.6' 32,730.1' 32,779.0' 3322,,880000..66'' 3322,,773300..00'' 3322,,551122..99'' 24 Personal consumption expenditures 21,007.2 21,862.6 22,152.4' 22,239.7' 22,340.5' 22,448.7' 22,522.8' 22,502.6' 25 Disposable personal income 22,800.0 23,150.0 23,148.0' 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 79 Personal saving 301.5 160.9 67.7 54.5 74.7 78.8 81.5 285.3 30 Undistributed corporate profits1 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? 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 35 132.0 210.9 315.0 326.9 320.5 303.7 286.2 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 47 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 -430.5 -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 • March 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 ^144,667 -115,305 -116,324 -111,778 -107,576 -94,980 7 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 -4,991 -5,102 -5,171 -1,265 -1,329 -1,360 -1,337 -1,322 10 Unilateral current transfers, net -44,427 -48,913 -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 ^148,565 -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 -A 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 US. 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 -45,172 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 --44,,005577 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 May June July Aug. Sept. Oct. Nov.? 1 Goods and services, balance -166,686 -261,838 -375,739 -28,876 -29,827 -30,166 -28,017 -19,019 -29,325 -27,887 2 Merchandise -246,855 -345,434 -452,207 -34,449 -35,553 -35,838 -34,073 -35,531 -35,045 -33,969 3 Services 79,868 83,596 76,468 5,573 5,726 5,672 6,056 16,512 5,720 6,082 4 Goods and services, exports 933,053 957,353 1,065,702 87,155 85,312 82,822 83,837 76,775 77,640 78,204 5 Merchandise 670,324 684,553 772,210 62,846 60,848 58,688 59,533 55,597 56,590 56,216 6 Services 262,729 272,800 293,492 24,309 24,464 24,134 24,304 21,178 21,050 21,988 7 Goods and services, imports -1,099,739 -1,219,191 -1,441,441 -116,031 -115,139 -112,988 -111,854 -95,794 -106,965 -106,091 8 Merchandise -917,179 -1,029,987 -1,224,417 -97,295 -96,401 -94,526 -93,606 -91,128 -91,635 -90,185 9 Services -182,560 -189,204 -217,024 -18,736 -18,738 -18,462 -18,248 —4,666 -15,330 -15,906 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 2002 AAsssseett 11999988 11999999 22000000 June July Aug. Sept. Oct. Nov. Dec. Jan.P 1 Total 81,761 71,516 67,647 64,847 65,736 67,852 70,963 69,707 69,158 68,654 67,533 2 Gold stock1 11,046 11,048 11,046 11,044 11,044 11,044 11,045 11,045 11,045 11,045 11,045 3 Special drawing rights2-3 10,603 10,336 10,539 10,409 10,518 10,913 10,919 10,827 10,864 10,774 10,657 4 Reserve position in International Monetary Fund2 24,111 17,950 14,824 14,619 14,965 15,297 18,404 17,787 17,293 17,854 17,602 5 Foreign currencies4 36,001 32,182 31,238 28,775 29,209 30,598 30,595 30,048 29,956 28,981 28,229 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 2002 AAsssseett 11999988 11999999 22000000 June July Aug. Sept. Oct. Nov. Dec. Jan.P 1 Deposits 167 71 215 102 84 80 608 75 528 61 162 Held in custody 2 U.S. Treasury securities2 607,574 632,482 594,094 586,607 578,573 590,820 587,566 599,043 600,129 592,630 592,031 3 Earmarked gold3 10,343 9,933 9,451 9,100 9,100 9,100 9,100 9,099 9,099 9,099 9,098 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 • March 2002 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2001 IItteemm 11999999 22000000 May June July Aug. Sept. Oct.' NOV.P 1 Total1 806,318 845,869 836,962 835,417 845,155 839,457 852,175 860,460 867,671 By type 2 Liabilities reported by banks in the United States2 138,847 144,593 143,616 144,414 151,858 137,621 143,597 140,003 130,661 3 U.S. Treasury bills and certificates3 156,177 153,010 137,933 139,195 143,288 151,850 153,899 161,081 167,562 U.S. Treasury bonds and notes 4 Marketable 422,266 415,964 410,979 407,736 406,995 407,338 409,887 412,126 418,392 5 Nonmarketable4 6,111 5,348 5,049 5,081 4,846 4,805 4,036 3,520 3,542 6 U.S. securities other than U.S. Treasury securities5 82,917 126,954 139,385 138,991 138,168 137,843 140,756 143,730 147,514 By area 1 Europe1 244,805 253,592 251,505 252,391 262,830 260,593 262,568 263,765 262,134 8 Canada 12,503 12,394 10,967 11,573 11,727 12,033 11,299 11,780 12,589 9 Latin America and Caribbean 73,518 76,753 75,861 79,068 79,359 76,251 75,751 77,555 77,388 10 Asia 463,703 488,170 482,959 478,253 475,475 474,650 488,358 490,897 498,815 11 Africa 7,523 9,165 9,272 9,054 10,574 9,864 10,249 10,337 9,560 12 Other countries 4,266 5,795 6,398 5,078 5,190 6,066 3,950 6,126 7,185 1. Includes the Bank for International Settlements. 5. Debt securities of U.S. government corporations and federally sponsored agencies, and 2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, U.S. corporate stocks and bonds. negotiable time certificates of deposit, and borrowings under repurchase agreements. SOURCE. Based on U.S. Department of the Treasury data and on data reported to the 3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official department by banks (including Federal Reserve Banks) and securities dealers in the United institutions of foreign countries. States, and on the 1994 benchmark survey of foreign portfolio investment in the United 4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of States. zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning March 1990, 30-year maturity issue; Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April 1993, 30-year maturity issue. 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 U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A53 3.18 BANKS' OWN C L A I MS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2001 IItteemm 11999988 11999999 22000000 May June July Aug. Sept. Oct.' Nov.p BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,347,837 1,408,740 l,511,410r 1,532,678' 1,519,311' 1,519,999' 1,509,166' 1,489,196' 1,563,086 1,639,311 2 Banks' own liabilities 884,939 971,536 1,077,636' 1,113,888' 1,095,034' 1,098,902' 1,077,597' 1,056,582' 1,110,738 1,165,827 3 Demand deposits 29,558 42,884 33,365 29,123 32,833 29,949 33,668 34,258 29,730 34,709 4 Time deposits2 151,761 163,620 187,883 180,063 179,380 174,456 174,196 178,502 167,661 155,864 5 Other1 140,752 155,853 171,401 206,146 212,071 225,276 206,037 196,294 207,593 220,659 6 Own foreign offices4 562,868 609,179 684,987' 698,556' 670,750' 669,221' 663,696' 647,528' 705,754 754,595 7 Banks' custodial liabilities5 462,898 437,204 433,774 418,790' 424,277' 421,097' 431,569' 432,614' 452,348 473,484 8 U.S. Treasury bills and certificates6 183,494 185,676 177,846 156,103' 156,601' 160,932' 170,724' 173,237' 182,927 191,048 9 Short-term agency securities7 n.a. n.a. n.a. 62,429' 60,086' 61,475' 62,805' 62,117' 65,652 59,723 10 Other negotiable and readily transferable instruments8 141,699 132,617 145,840 81,431' 79,431' 77,199' 77,350' 75,344' 77,394 78,995 11 Other 137,705 118,911 110,088 118,827 128,159 121,491 120,690 121,916 126,375 143,718 12 Nonmonetary international and regional organizations9 11,883 15,276 12,542 14,668 13,818 11,255 13,214 13,309 10,136 11,044 13 Banks' own liabilities 10,850 14,357 12,140 14,342 13,479 11,020 12,983 13,075 9,573 10,208 14 Demand deposits 172 98 41 15 28 50 21 36 40 21 15 Time deposits2 5,793 10,349 6,246 3,532 4,228 2,896 2,738 2,299 2,627 3,009 16 Other3 4,885 3,910 5,853 10,795 9,223 8,074 10,224 10,740 6,906 7,178 17 Banks' custodial liabilities5 1,033 919 402 326 339 235 231 234 563 836 18 U.S. Treasury bills and certificates6 636 680 252 105 68 78 92 118 521 779 19 Short-term agency securities7 n.a. n.a. n.a. 132 134 132 117 102 18 36 20 Other negotiable and readily transferable instruments8 397 233 149 87 137 25 21 13 13 17 21 Other 0 6 1 2 0 0 1 1 11 4 22 Official institutions10 260,060 295,024 297,603 281,549 283,609 295,146 289,471 297,496 301,084 298,223 23 Banks' own liabilities 80,256 97,615 96,989 96,391 99,996 108,991 94,150 101,385 96,143 92,346 24 Demand deposits 3,003 3,341 3,952 2,522 2.465 2,169 2,934 3,042 2,496 3,336 25 Time deposits2 29,506 28,942 35,573 26,625 32,752 28,121 26,441 31,971 24,275 18,348 26 Other3 47,747 65,332 57,464 67,244 64,779 78,701 64,775 66,372 69,372 70,662 27 Banks' custodial liabilities5 179,804 197,409 200,614 185,158 183,613 186,155 195,321 196,111 204,941 205,877 28 U.S. Treasury bills and certificates6 134,177 156,177 153,010 137,933 139,195 143,288 151,850 153,899 161,081 167,562 29 Short-term agency securities7 n.a. n.a. n.a. 43,193 40,301 39,971 40,727 39,961 41,078 35,037 30 Other negotiable and readily transferable instruments8 44,953 41,182 47,366 3,509 3,647 2,686 2,558 2,230 1,946 1,715 31 Other 674 50 238 523 470 210 186 21 836 1,563 32 Banks" 885,336 900,379 972,932' 989,775' 969,419' 957,962' 955,810' 928,746' 989,024 1,053,003 33 Banks' own liabilities 676,057 728,492 821,306' 845,021' 815,981' 811,203' 809,865' 786,741' 841,794 890,750 34 Unaffiliated foreign banks 113,189 119,313 136,319 146,465 145,231 141,982 146,169 139,213 136,040 136,155 35 Demand deposits 14,071 17,583 15,522 12,143 15,211 12,548 14,585 14,928 11,166 13,149 36 Time deposits2 45,904 48,140 66,904 69,365 63,199 62,794 64,252 64,816 61,245 56,194 37 Other3 53,214 53,590 53,893 64,957 66,821 66,640 67,332 59,469 63,629 66,812 38 Own foreign offices4 562,868 609,179 684,987' 698,556' 670,750' 669,221' 663,696' 647,528' 705,754 754,595 39 Banks' custodial liabilities5 209,279 171,887 151,626 144,754' 153,438' 146,759' 145,945' 142,005' 147,230 162,253 40 U.S. Treasury bills and certificates6 35,359 16,796 16,023 8,539' 8,459' 9,097' 9,584' 8,784' 10,288 10,907 41 Short-term agency securities7 n.a. n.a. n.a. 3,774' 3,172' 2,537' 2,423' 2,629' 2,868 2,470 42 Other negotiable and readily transferable instruments8 45,332 45,695 36,036 28,513' 28,123' 27,327' 27,274' 24,188' 23,829 23,305 43 Other 128,588 109,396 99,567 103,928 113,684 107,798 106,664 106,404 110,245 125,571 44 Other foreigners 190,558 198,061 228,333 246,686' 252,465' 255,636' 250,671' 249,645' 262,842 277,041 45 Banks' own liabilities 117,776 131,072 147,201 158,134 165,578 167,688 160,599 155,381 163,228 172,523 46 Demand deposits 12,312 21,862 13,850 14,443 15,129 15,182 16,128 16,252 16,028 18,203 47 Time deposits2 70,558 76,189 79,160 80,541 79,201 80,645 80,765 79,416 79,514 78,313 48 Other3 34,906 33,021 54,191 63,150 71,248 71,861 63,706 59,713 67,686 76,007 49 Banks' custodial liabilities5 72,782 66,989 81,132 88,552' 86,887' 87,948' 90,072' 94,264' 99,614 104,518 50 U.S. Treasury bills and certificates6 13,322 12,023 8,561 9,526' 8,879' 8,469' 9,198' 10,436' 11,037 11,800 51 Short-term agency securities7 n.a. n.a. n.a. 15,330' 16,479' 18,835' 19,538' 19,425' 21,688 22,180 52 Other negotiable and readily transferable instruments8 51,017 45,507 62,289 49,322' 47,524' 47,161' 47,497' 48,913' 51,606 53,958 53 Other 8,443 9,459 10,282 14,374 14,005 13,483 13,839 15,490 15,283 16,580 MEMO 54 Negotiable time certificates of deposits in custody for foreigners 27,026 30,345 34,217 25,912 24,884 22,640 24,442 23,228 22,646 22,778 55 Repurchase agreements7 n.a. n.a. n.a. 119,901 126,508 138,328 132,705 111,109 127,516 136,459 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 • March 2002 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States '—Continued Payable in U.S. dollars Millions of dollars, end of period 2001 IItteemm 11999988 11999999 22000000 May June July Aug. Sept. Oct.' NOV.p AREA 56 Total, all foreigners 1,347,837 1,408,740 l,511,410r 1,532,678' l,519,311r l,519,999r l,509,166r l,489,196r 1,563,086 1,639,311 57 Foreign countries 1,335,954 1,393,464 l,498,867r 1,518,009r l,505,492r l,508,743r l,495,952r l,475,887r 1,552,949 1,628,267 58 Europe 427,375 441,810 446,788 464,175' 457,565' 449,794' 431,373' 414,241' 435,140 491,807 59 Austria 3,178 2,789 2,692 2,593 2,026 2,040 2,370 2,398 2,117 2,944 60 Belgium12 42,818 44,692 33,399 5,895 6,270 7,058 6,624 6,424 6,960 6,640 61 Denmark 1,437 2,196 3,000 2,910 3,063 2,596 3,294 3,243 3,752 4,248 62 Finland 1,862 1,658 1,411 1,144 2,395 1,574 1,003 1,267 1,223 1,135 63 France 44,616 49,790 37,833 40,209 40,076 42,709 39,661 38,263 49,058 49,691 64 Germany 21,357 24,753 35,519 30,344' 32,392' 32,363' 27,830' 20,426' 23,707 23,111 65 Greece 2,066 3,748 2,011 1,525 1,653 2,288 2,607 2,440 2,408 2,080 66 Italy 7,103 6,775 5,072 5,534 6,767 5,877 4,761 5,803 5,445 5,913 67 Luxembourg12 n.a. n.a. n.a. 14,971' 14,876 14,578' 14,427' 15,065 14,612 16,536 68 Netherlands 10,793 8,143 7.047 10,787' 9,637' 11,388' 11,553' 11,149' 12,285 13,078 69 Norway 710 1,327 2,305 2,573 4,584 3,540 3,961 3,565 3,145 3,056 70 Portugal 3,236 2,228 2,403 2,112' 2,328' 2,700' 2,534' 2,626' 3,787 3,924 71 Russia 2,439 5,475 19,018 21,359' 22,841' 23,968' 22,689' 22,944' 23,431 21,243 72 Spain 15,781 10,426 7,787 7,886 7,412 6,974 7,286 8,927 9,785 10,536 /3 Sweden 3,027 4,652 6,497 5,284 5,507 4,111 3,233 3,760 3,461 3,705 74 Switzerland 50,654 63,485 74,635 93,170 73,078 65,942 53,148 39,576 39,706 81,121 75 Turkey 4,286 7,842 7,548 7,171 5,487 6,194 7,068 6,203 6,749 6,822 / 6 United Kingdom 181,554 172,687 167,757 139,049' 145,734' 137,279' 138,192' 139,289' 142,991 155,524 77 Channel Islands and Isle of Man13 n.a. n.a. n.a. 34,742 34,994 35,018 35,745 36,072 36,392 36,161 78 Yugoslavia14 233 286 276 301 297 395 297 321 313 310 79 Other Europe and other former U.S.S.R.15 30,225 28,858 30,578 34,616 36,148 41,202 43,090 44,480 43,813 44,029 80 Canada 30,212 34,214 30,982 26,034' 26,025' 26,437' 28,149' 26,148' 25,522 27,920 81 Latin America 121,327 117,495 120,041 113,386' 117,646' 118,808' 120,930' 119,457' 122,101 120,200 82 Argentina 19,014 18,633 19,451 12,390 16,458 13,296 11,260 15,139 12,997 10,772 83 Brazil 15,815 12,865 10,852 11,264 12,586 14,369 16,142 16,979 16,398 14,288 84 Chile 5,015 7,008 5,892 5,702 5,491 5,443 5,322 5,740 5,415 5,297 85 Colombia 4,624 5,669 4,542 4,746 4,631 4,397 4,582 4,449 4,589 4,643 86 Ecuador 1,572 1,956 2,112 2,140 1,981 2,145 2,170 2,117 2,101 2,004 87 Guatemala 1,336 1,626 1,601 1,597' 1,518' 1,531' 1,469' 1,443' 1,851 1,934 88 Mexico 37,157 30,717 32,166 33,116' 33,326' 34,766' 37,990' 37,424' 40,367 40,242 89 Panama 3,864 4,415 4.240 3,649' 3,521' 3,701' 3,679' 3,769' 3,741 3,501 90 Peru 840 1,142 1,427 1,535 1,614 1,599 1,526 1,466 1,509 1,585 91 Uruguay 2,486 2,386 3,003 3,333 3,026 2,980 2,993 2,684 3,121 3,264 92 Venezuela 19,894 20,192 24,730 27.053' 27,038' 27,666' 26,983' 21,869' 23,584 26,100 93 Other Latin America16 9,710 10,886 10,025 6,861 6,456 6,915' 6,814' 6,378 6,428 6,570 94 Caribbean 433,539 461,200 573,337 600,384' 598,298' 608,639' 613,815' 596,097' 649,562 669,641 95 Bahamas 118,085 135,811 189,298 190,142 187,469 183,844 184,769' 178,265' 212,415 201,522 96 Bermuda 6,846 7,874 9,636 7,025' 7,821' 8,235' 7,424' 7,538' 9,611 9,179 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 Islands'7 n.a. n.a. n.a. 385,617' 384,269' 400,562' 406,077' 392,289' 406,402 439,272 99 Cuba 62 75 90 84 85 88 45 154 86 85 100 Jamaica 577 520 794 1,101 963 975 967 958 880 930 101 Netherlands Antilles 5,010 4,047 5.428 3,474' 3,970' 3,285' 3,341' 4,584' 6,094 4,070 102 Trinidad and Tobago 473 595 894 1,237 1,272 1,253 1,428 1,410 1,509 1,768 103 Other Caribbean16 n.a. n.a. n.a. 11,704' 12,449' 10,397' 9,764' 10,899' 12,565 12,815 104 307,960 319,489 305,554' 291,882' 284,154' 283,786' 227799,,221177'' 330000,,665577'' 330000,,999988 229999,,006600 China 105 Mainland 13,441 12,325 16,531 23,157' 15,391' 15,587' 16,024' 16,886 17,880 12,368 106 Taiwan 12,708 13,603 17,352 18,105' 19,847' 23,066' 22,759' 22,236' 19,174 21,097 107 Hong Kong 20,900 27,701 26,462 27,347 29,181' 26,841 23,837 24,585 23,146 26,294 108 India 5,250 7,367 4,530 4,281 4,043 4,413 4,076 4,024 3,881 3,906 109 Indonesia 8,282 6,567 8,514 10,600 10,565 11,629 11,987 11,926 12,350 11,757 110 Israel 7,749 7,488 8,053 8,282 8,696 8,710 7,715 8,818 7,343 7,742 111 Japan 168,563 159,075 150,415 141,252' 137,074' 134,254' 132,307' 149,612' 160,012 157,760 112 Korea (South) 12,524 12,988 7,955 5,854 6,746 7,366 7,046 7,723 7,743 8,116 113 Philippines 3,324 3,268 2,316 1,684 1,478 1,657 1,791 1,884 1,756 2,109 114 Thailand 7,359 6,050 3,117 3,376' 3,401' 3,469' 3,850' 3,445' 3,665 4,791 115 Middle Eastern oil-exporting countries18 15,609 21,314 23,763' 19,677' 20,551' 19,221' 20,573' 20,875' 18,443 18,620 116 Other 32,251 41,743 36,546 28,267 27,181 27,573 27,252 28,643 25,605 24,500 117 Africa 8,905 9,468 10,824 10,622 10,584 12,178 12,194 11,609 12,088 11,222 118 Egypt 1,339 2,022 2,621 2,220 2,267 3,526 3,647 3,014 2,910 3,110 119 Morocco 97 179 139 116 102 118 165 235 331 344 120 South Africa 1,522 1,495 1,010 707 693 839 1,324 810 886 11,,001188 121 Congo (formerly Zaire) 5 14 4 2 14 5 5 2 4 11 122 Oil-exporting countries19 3,088 2,914 4,052 4,740 4,645 4,349 3,839 4,431 4,980 3,967 123 Other 2,854 2,844 2,998 2,837 2,863 3,341 3,214 3,117 2,977 2,782 124 Other countries 6,636 9,788 11,341 11,526 11,220 9,101 10,274 7,678 7,538 8,417 125 Australia 5,495 8,377 10,070 10.419 9,855 8,058 9,290 6,822 6,584 7,799 126 New Zealand20 n.a. n.a. n.a. 437 862 501 517 437 505 217 127 All other 1,141 1,411 1,271 670 503 542 467 419 449 401 128 Nonmonetary international and regional organizations 11,883 15,276 12,543 14,669 13,819 11,256 13,214 13,309 10,137 11,044 129 International21 10,221 12,876 11,270 12,705 12,549 10,241 12,090 12,224 8,784 9,286 130 Latin American regional22 594 1,150 740 1,146 705 441 509 569 480 462 131 Other regional23 1,068 1,250 533 518 523 502 558 476 822 1,234 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 May June July Aug. Sept. Oct.' Nov.p 1 Total, all foreigners 734,995 793,139 904,642r 996,692r 990,714r 975,314' 948,790r 956,986r 993,102 1,016,323 2 Foreign countries 731,378 788,576 899,956r 992,782r 986,016r 970,460r 944,239' 952,510r 988,207 1,011,065 3 Europe 233,321 311,686 378,115 461,025 452,076 441,780 413,717 406,726 413,853 462,589 4 Austria 1,043 2,643 2,926 3,364 2,870 2,714 3,130 3,116 3,848 3,412 Belgium2 7,187 10,193 5,399 5,627 4,254 9,184 4,451 4,780 6,424 7,994 6 Denmark 2,383 1,669 3,272 2,505 2,268 1,345 1,570 1,672 933 2,507 7 Finland 1,070 2,020 7,382 8,800 8,460 8,666 8,350 10,917 12,065 11,010 8 France 15,251 29,142 40,035 42,189 48,835 56,997 56,342 51,709 60,732 58,769 9 Germany 15,923 29,205 36,834 55,063 51,242 47,378 47,744 37,802 39,565 36,254 10 Greece 575 806 646 285 313 369 278 288 333 327 11 Italy 7,284 8,496 7,629 6,867 8,111 5,466 6,227 6,639 7,750 6,321 1? Luxembourg2 n.a. n.a. n.a. 1,876 1,285 914 1,010 910 1,088 1,392 13 Netherlands 5,697 11,810 17,043 16,488 16,993 16,875 16,309 18,408 17,256 17,173 14 Norway 827 1,000 5,012 2,915 6,502 4,379 3,851 4,835 3,617 4,603 15 Portugal 669 1,571 1,382 1,173 1,304 1,050 1,232 1,285 1,164 1,709 16 Russia 789 713 517 715 911 589 877 676 863 680 17 Spain 5,735 3,796 2,603 4,275 3,654 3,955 3,431 4,662 3,713 5,398 18 Sweden 4,223 3,264 9,226 10,986 11,049 11,507 11,651 12,216 11,800 12,897 19 Switzerland 46,874 79,158 82,085 137,273 111,492 96,036 79,942 72,545 71,968 121,798 70 Turkey 1,982 2,617 3,059 2,596 2,530 2,499 2,407 2,307 2,324 2,243 ?1 United Kingdom 106,349 115,971 144,938 149,064 161,720 161,232 157,531 163,164 158,423 158,716 ?,?. Channel Islands and Isle of Man3 n.a. n.a. n.a. 3,838 3,275 3,417 3,162 3,900 3,783 3,819 23 Yugoslavia4 53 50 50 59 49 4 4 4 4 n.a. 24 Other Europe and other former U.S.S.R.5 9,407 7,562 8,077 5,067 4,959 7,204 4,218 4,891 6,200 5,567 25 Canada 47,037 37,206 39,837' 44,568' 50,138' 43,293' 42,832' 50,279' 48,773 50,792 76 Latin America 79,976 74,040 76,561' 73,828' 73,740' 73,405' 76,349' 74,667' 74,177 72,928 71 Argentina 9,552 10,894 11,519' 11,713' 11,896' 12,317' 13,076' 12,093' 11,603 11,354 ?8 Brazil 16,184 16,987 20,567 20,728 21,538 20,941 22,152 22,481 21,427 20,453 ?9 Chile 8,250 6,607 5,815 5,444 5,451 5,217 5,379 5,240 5,423 5,522 30 Colombia 6,507 4,524 4,370 3,740 3,641 3,625 3,720 3,604 3,564 3,598 31 Ecuador 1,400 760 635 482 523 515 505 508 507 504 3? Guatemala 1,127 1,135 1,244 1,234 1,199 1,148 1,276 1,262 1,568 1,522 33 Mexico 21,212 17,899 17,415 17,961 17,385 17,476 17,582 16,947 17,272 16,996 34 Panama 3,584 3,387 2,933 2,872 3,086 3,190 3,199 3,212 3,426 3,415 35 Peru 3,275 2,529 2,807 2,535 2,570 2,516 2,422 2,440 2,435 2,369 36 Uruguay 1,126 801 673 366 398 410 453 459 492 540 37 Venezuela 3,089 3,494 3,518 3,109 2,982 2,913 3,417 3,225 3,221 3,306 38 Other Latin America6 4,670 5,023 5,065 3,644 3,071 3,137 3,168 3,196 3,239 3,349 39 Caribbean 262,678 281,128 319,403' 324,711' 322,554' 317,628' 326,661' 333,330' 356,456 325,937 40 Bahamas 96,455 99,066 114,090 112,802 105,772 100,133 99,046 114,763 124,546 97,916 41 Bermuda 5,011 8,007 9,260 5,507 5,802 7,236 6,803 6,974 11,440 6,015 47 British West Indies7 153,749 167,189 189,289' n.a. n.a. n.a. n.a. n.a. n.a. n.a. 43 Cayman Islands7 n.a. n.a. n.a. 195,783' 200,144' 198,911' 204,753' 197,100' 207,916 207,864 44 Cuba 0 0 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 45 Jamaica 239 295 355 396 301 326 367 369 380 406 46 Netherlands Antilles 6,779 5,982 5,801 5,738 5,749 5,617 10,228 9,818 7,647 9,583 47 Trinidad and Tobago 445 589 608 804 946 989 1,086 959 858 880 48 Other Caribbean6 n.a. n.a. n.a. 3,681 3,840 4,416 4,378 3,347 3,669 3,273 49 98,607 75,143 77,829 81,217 80,927 86,714 77,445 80,734 87,331 91,337 China 50 Mainland 1,261 2,110 1,606 2,252 4,387 3,785 2,191 3,462 4,118 4,427 51 Taiwan 1,041 1,390 2,247 1,985 2,524 2,906 2,780 3,276 4,244 3,897 5? Hong Kong 9,080 5,903 6,669 9,127 9,249 7,488 5,743 6,432 5,161 7.984 53 India 1,440 1,738 2,178 1,648 1,634 1,576 1,622 1,576 1,561 1,609 <S4 Indonesia 1,942 1,776 1,914 2,015 1,932 2,011 1,975 1,944 1,965 1,935 S5 Israel 1,166 1,875 2,729 2,715 2,417 4,483 3,621 3,622 3,980 4,592 56 Japan 46,713 28,641 34,974 34,442 32,338 36,953 34,922 32,349 39,940 34,665 57 Korea (South) 8,289 9,426 7,776 11,673 11,258 12,803 10,701 11,788 11,137 14,742 58 Philippines 1,465 1,410 1,784 1,788 1,831 2,333 1,740 2,151 1,505 2,021 59 Thailand 1,807 1,515 1,381 1,380 1,541 1,119 1,440 1,172 1,470 1,283 60 Middle Eastern oil-exporting countries8 16,130 14,267 9,346 9,926 8,621 8,531 8,267 7,953 8,290 10,088 61 Other 8,273 5,092 5,225 2,266 3,195 2,726 2,443 5,009 3,960 4,094 6? 3,122 2,268 2,094 1,904 2,132 2,038 2,052 1,872 1,878 2,108 63 Egypt 257 258 201 466 530 391 389 397 381 477 64 Morocco 372 352 204 185 175 173 151 154 148 116 65 South Africa 643 622 309 289 528 608 661 493 443 571 66 Congo (formerly Zaire) 0 24 0 n.a. n.a. n.a. 2 n.a. n.a. 1 67 Oil-exporting countries9 936 276 471 197 142 130 128 148 169 179 68 Other 914 736 909 767 757 736 721 680 737 764 69 Other countries 6,637 7,105 6,117 5,529 4,449 5,602 5,183 4,902 5,739 5,374 70 Australia 6,173 6,824 5,868 5,215 4,121 5,143 4,807 3,982 5,402 4,964 71 New Zealand10 n.a. n.a. n.a. 136 279 360 264 329 275 330 72 All other 464 281 249 178 49 99 112 591 62 80 73 Nonmonetary international and regional organizations" . . 3,617 4,563 4,686 4,535 4,848 4,854 4,551 4,476 4,904 5,258 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 • March 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 TTyyppee ooff ccllaaiimm May Juner Julyr Aug.' Sept.r Oct/ Nov.? 1 Total 875,891 944,937 l,095,869r 1,181,652 1,132,166 7 Banks' claims 734,995 793,139 904,642r 996,692r 990,714 975,314 948,790 956,986 993,102 1,016,323 3 Foreign public borrowers 23,542 35,090 37,907 49,538r 52,198 55,767 47,161 45,782 49,327 56,590 4 Own foreign offices2 484,535 529,682 630,137 709,123 686,065 660,538 652,434 657,672 678,931 689,455 Unaffiliated foreign banks 106,206 97,186 95,243r 79,937r 91,447 94,593 84,545 92,177 92,517 96,908 6 Deposits 27,230 34,538 23,886 19,722r 20,155 24,399 15,590 19,803 22,533 26,294 7 Other 78,976 62,648 71,357r 60,215r 71,292 70,194 68,955 72,374 69,984 70,614 8 All other foreigners 120,712 131,181 141,355r 158,094r 161,004 164,416 164,650 161,355 172,327 173,370 9 Claims of banks' domestic customers3 140,896 151,798 191,227 190,938 175,180 10 Deposits 79,363 88,006 100,352 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 4,257 3,054 2,468 14 Banks' loans under resale agreements5 n.a. n.a. n.a. 116,938 129,693 131,731 117,224 111,844 144,250 144,901 15 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States6 39,978 31,125 53,153 58,117r 66,905 60,152 60,299 54,932 57,698 66,930 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 276,550 250,418 267,082 274,009 307,613 302,109 298,548 By borrower ?. 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 8 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 1? 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. 1 Total 721.8 1,051.6 941.6 945.5 955.0 991.0 954.4 1,027.3 l,140.5r l,135.8r 1,278.2 2 G-10 countries and Switzerland 242.8 217.7 219.4 243.4 272.4 313.6 280.3 300.7 332.8' 334.8r 296.5 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 79.3 101.9 138.2 112.8 115.6 141.3 127.5 100.6 11 Canada 13.7 16.8 17.9 16.3 17.3 18.2 18.5 16.7 15.4 21.3r 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 70.2 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 IS 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 20 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 23 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 2.5 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 28 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 139.2 143.4 144.6 149.4 154.6 158.1 149.5 145.5 149.8r 157.3r 199.8 Latin America 37 Argentina 18.4 23.1 22.8 23.2 22.4 21.6 21.4 21.4 20.9 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 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 3.2r 6.7r 5.9 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 4.9 5.5 7.0 7.7 7.9 8.2 5.8 9.1 6.5 11.8 14.1 42 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 52 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 140.2r 93.9r 79.r 59.9r 53.9 60.6r 59.4r 76.3r 72.0r 58.8r 71.7 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 21.5r 22.3r 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 • March 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 June Sept. Dec. Mar. June Sept.p 1 Total 57,382 46,570 53,044 70,534 76,644 73,904 73,805 68,501 65,560 2 Payable in dollars 41,543 36,668 37,605 47,864 51,451 48,931 46,676 42,207 41,816 3 Payable in foreign currencies 15,839 9,902 15,415 22,670 25,193 24,973 27,129 26,294 23,744 By type 4 Financial liabilities 26,877 19,255 27,980 44,068 49,895 47,419 47,958 42,296 39,455 5 Payable in dollars 12,630 10,371 13,883 22,803 26,159 25,246 23,351 18,043 17,803 6 Payable in foreign currencies 14,247 8,884 14,097 21,265 23,736 22,173 24,607 24,253 21,652 7 Commercial liabilities 30,505 27,315 25,064 26,466 26,749 26,485 25,847 26,205 26,105 8 Trade payables 10,904 10,978 12,857 13,764 13,918 14,293 12,481 13,213 11,821 9 Advance receipts and other liabilities 19,601 16,337 12,207 12,702 12,831 12,192 13,366 12,992 14,284 10 Payable in dollars 28,913 26,297 23,722 25,061 25,292 23,685 23,325 24,164 24,013 11 Payable in foreign currencies 1,592 1,018 1,318 1,405 1,457 2,800 2,522 2,041 2,092 By area or country Financial liabilities 12 Europe 18,027 12,589 23,241 30,332 36,175 34,172 37,572 33,173 28,992 13 Belgium and Luxembourg 186 79 31 163 169 147 112 98 136 14 France 1,425 1,097 1,659 1,702 1,299 1,480 1,553 1,222 1,538 15 Germany 1,958 2,063 1,974 1,671 2,132 2,168 2,624 2,463 1,994 lb Netherlands 494 1,406 1,996 2,035 2,040 2,016 2,169 1,763 1,998 17 Switzerland 561 155 147 137 178 104 103 93 92 18 United Kingdom 11,667 5,980 16,521 21,463 28,601 26,362 28,962 25,751 21,390 19 Canada 2,374 693 284 714 249 411 718 628 793 20 Latin America and Caribbean 1,386 1,495 892 2,874 3,447 44,,112255 3,632 2,100 3,518 21 Bahamas 141 7 1 78 105 66 18 40 256 22 Bermuda 229 101 5 1,016 1,182 1,739 1,837 461 1,551 23 Brazil 143 152 126 146 132 148 26 21 40 24 British West Indies 604 957 492 463 501 406 1,657 1,508 1,561 25 Mexico 26 59 25 26 35 26 31 20 24 26 Venezuela 1 2 0 0 0 2 1 1 3 27 Asia 4,387 3,785 3,437 9,453 9,320 7,965 5,324 5,639 5,421 28 Japan 4,102 3,612 3,142 6,024 4,782 6,216 4,757 3,297 3,442 29 Middle Eastern oil-exporting countries1 27 0 4 5 7 11 15 8 9 30 Africa 60 28 28 33 48 52 38 61 59 31 Oil-exporting countries- 0 0 0 0 0 0 0 0 5 32 All other3 643 665 98 662 656 694 674 695 672 Commercial liabilities 33 Europe 10,228 10,030 9,262 9,293 9,411 9,629 8,792 8,723 8,855 34 Belgium and Luxembourg 666 278 140 178 201 293 251 297 160 35 France 764 920 672 711 716 979 689 665 892 3b Germany 1,274 1,392 1,131 948 1,023 1,047 982 1,017 966 37 Netherlands 439 429 507 562 424 300 349 343 343 38 Switzerland 375 499 626 565 647 502 623 697 683 39 United Kingdom 4,086 3,697 3,071 2,982 2,951 2,847 2,542 2,706 2,296 40 Canada 1,175 1,390 1,775 2,053 1,889 1,933 1,625 2,043 1,650 41 Latin America and Caribbean 2,176 1,618 2,310 2,607 2,443 2,381 2,166 2,292 2,879 42 Bahamas 16 14 22 10 15 31 5 31 44 43 Bermuda 203 198 152 300 377 281 280 367 570 44 Brazil 220 152 145 119 167 114 239 279 312 45 British West Indies 12 10 48 22 19 76 64 21 28 46 Mexico 565 347 887 1,073 1,079 841 792 762 884 47 Venezuela 261 202 305 239 124 284 243 218 242 48 Asia 14,966 12,342 9,886 10,965 11,133 10,983 11,542 11,384 11,114 49 Japan 4,500 3,827 2,609 2,200 1,998 2,757 2,431 2,377 2,421 50 Middle Eastern oil-exporting countries' 3,111 2,852 2,551 3,489 3,706 2,832 3,359 3,087 3,053 51 Africa 874 794 950 950 1,220 948 1,072 1,115 938 52 Oil-exporting countries2 408 393 499 575 663 483 566 539 471 53 Other3 1,086 1,141 881 598 653 614 650 648 669 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 June Sept. Dec. Mar. June Sept.p 1 Total 68,128 77,462 76,669 80,731 94,803 90,157 107,705 98,023 109,374 2 Payable in dollars 62,173 72,171 69,170 72,300 82,872 79,558 94,932 88,243 98,590 3 Payable in foreign currencies 5,955 5,291 7,472 8,431 11,931 10,599 12,773 9,780 10,784 By type 4 Financial claims 36,959 46,260 40,231 44,303 58,303 53,031 74,255 61,907 75,260 5 Deposits 22,909 30,199 18,566 17,462 30,928 23,374 25,419 25,381 22,391 6 Payable in dollars 21,060 28,549 16,373 15,361 27,974 21,015 23,244 23,174 19,888 7 Payable in foreign currencies 1,849 1,650 2,193 2,101 2,954 2,359 2,175 2,207 2,503 8 Other financial claims 14.050 16,061 21,665 26,841 27,375 29,657 48,836 36,526 52,869 9 Payable in dollars 11,806 14,049 18,593 22,384 20,541 25,142 41,417 32,054 47,321 10 Payable in foreign currencies 2,244 2,012 3,072 4,457 6,834 4,515 7,419 4,472 5,548 11 Commercial claims 31,169 31,202 36,438 36,428 36,500 37,126 33,450 36,116 34,114 12 Trade receivables 27,536 27,202 32,629 31,283 31,530 33,104 28,958 31,168 29,381 13 Advance payments and other claims 3,633 4,000 3,809 5,145 4,970 4,022 4,492 4,948 4,733 14 Payable in dollars 29,307 29,573 34,204 34,555 34,357 33,401 30,271 33,015 31,381 15 Payable in foreign currencies 1,862 1,629 2,207 1,873 2,143 3,725 3,179 3,101 2,733 By area or country Financial claims 16 Europe 14,999 12,294 13,023 18,254 23,706 23,136 31,855 23,975 24,919 17 Belgium and Luxembourg 406 661 529 317 304 296 430 262 677 18 France 1,015 864 967 1,292 1,477 1,206 3,142 1,376 1,682 19 Germany 427 304 504 576 696 848 1,401 1,163 1,112 20 Netherlands 677 875 1,229 1,984 2,486 1,396 2,313 1,072 954 21 Switzerland 434 414 643 624 626 699 613 653 665 22 United Kingdom 10,337 7,766 7,561 11,668 16,191 15,900 20,938 15,913 16,960 23 Canada 3,313 2,503 2,553 5,799 7,517 4,576 4,847 4,787 4,580 24 Latin America and Caribbean 15,543 27,714 18,206 14,874 21,691 19,317 28,791 24,419 37,721 25 Bahamas 2,308 403 1,593 655 1,358 1,353 561 818 879 26 Bermuda 108 39 11 34 22 19 1,729 426 1,456 27 Brazil 1,313 835 1,476 1,666 1,568 1,827 1,648 1,877 2,081 28 British West Indies 10,462 24,388 12,099 7,751 15,722 12,596 21,227 16,515 29,222 29 Mexico 537 1,245 1,798 2,048 2,280 2,448 2,461 2,633 2,910 30 Venezuela 36 55 48 78 101 87 38 66 80 31 Asia 2,133 3,027 5,457 3,923 4,002 4,697 7,215 6,829 6,693 32 Japan 823 1,194 3,262 1,410 1,726 1,631 3,867 1,698 1,761 33 Middle Eastern oil-exporting countries 11 9 23 42 85 80 86 76 100 34 Africa 319 159 286 320 284 411 430 476 456 35 Oil-exporting countries2 15 16 15 39 3 57 42 35 83 36 Allother3 652 563 706 1,133 1,103 894 1,117 1,421 891 Commercial claims 12,120 13,246 16,389 15,935 16,486 15,938 13,775 14,602 14,401 37 Europe 328 238 316 425 393 452 395 408 360 38 Belgium and Luxembourg 1,796 2,171 2,236 2,693 2,921 3,095 3,479 3,194 3,063 39 France 1,614 1,822 1,960 1,905 2,159 1,982 1,586 1,995 1,979 40 Germany 597 467 1,429 1,242 1,310 1,729 757 864 845 41 Netherlands 554 483 610 562 684 763 634 472 514 42 Switzerland 3,660 4,769 5,827 4,937 5,193 4,502 3,562 3,826 3,576 43 United Kingdom 44 Canada 2,660 2,617 2,757 3,250 2,953 3,502 3,392 3,498 3,125 45 Latin America and Caribbean 5,750 6,296 5.959 5,792 5,788 5,851 5,144 6,127 5,604 46 Bahamas 27 24 20 48 75 37 20 39 35 47 Bermuda 244 536 390 381 387 376 407 650 526 48 Brazil 1,162 1,024 905 894 981 957 975 1,377 1,192 49 British West Indies 109 104 181 51 55 137 130 135 124 50 Mexico 1,392 1,545 1,678 1,565 1,612 1,507 1,350 1,421 1,446 51 Venezuela 576 401 439 466 379 328 292 321 305 52 Asia 8,713 7,192 9,165 9,172 8,986 9,630 8,985 9,707 8,710 53 Japan 1,976 1,681 2,074 1,881 2,074 2,796 2,560 3,157 2,437 54 Middle Eastern oil-exporting countries 1,107 1,135 1,625 1,241 1,199 1,024 966 1,054 922 55 Africa 680 711 631 766 895 672 773 673 842 56 Oil-exporting countries2 119 165 171 160 392 180 165 154 170 57 Other3 1,246 1,140 1,537 1,513 1,392 1,572 1,381 1,509 1,432 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 • March 2002 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2001 2001 TTrraannssaaccttiioonn,, aanndd aarreeaa oorr ccoouunnttrryy 11999999 22000000 J N a o n v .- . May June' July' Aug.' Sept.' Oct.' Nov.p U.S. corporate securities STOCKS 1 Foreign purchases 2,340,659 3,605,196 2,811,703 276,905' 259,622 244,887 247,288 193,465 255,670 241,003 2 Foreign sales 2,233,137 3,430,306 2,708,568 259,584' 249,184 233,412 239,580 204,974 248,425 227,814 3 Net purchases, or sales (-) 107,522 174,890 103,135 17,321' 10,438 11,475 7,708 -11,509 7,245 13,189 4 Foreign countries 107,578 174,903 102,951 17,306' 10,417 11,460 7,709 -11,498 7,222 13,180 5 Europe 98,060 164,656 81,397 9,798' 9,306 6,700 9,203 -7,305 7,470 8,513 6 France 3,813 5,727 5,818 338 3,044 35 624 -2,605 1,969 -845 7 Germany 13,410 31,752 7,740 1,025 133 1,048 463 ^118 825 694 8 Netherlands 8,083 4,915 9,649 573 334 654 595 358 552 1,096 9 Switzerland 5,650 11,960 2,600 448 298 -228 -127 -688 351 325 10 United Kingdom 42,902 58,736 36,485 4,494' 4,005 3,744 6,165 -564 3,311 3,275 11 Channel Islands and Isle of Man1 n.a. n.a. -718 59 -168 -40 24 -73 -23 -198 12 Canada -335 5,956 9,732 628 129 948 -225 1,137 193 935 13 Latin America and Caribbean 5,187 -17,812 -9,092 3,436 -1,038 65 --22,,993355 -1,779 -1,508 1,833 14 Middle East2 -1,066 9,189 1,540 -173 234 515 882266 664 -514 -105 15 Other Asia 4,445 12,494 20,128 3,530' 1,725 3,222 620 -879 1,551 1,811 16 Japan 5,723 2,070 6,723 1,086' 1,001 1,958 54 -806 1,148 414 17 Africa 372 415 -359 9 -82 -20 72 -37 -31 -9 18 Other countries 915 5 -395 78 143 30 148 -299 61 202 19 Nonmonetary international and regional organizations -56 -11 184 15 21 15 -1 -11 23 9 BONDS3 20 Foreign purchases 854,692 1,208,386 1,765,878 169,528 158,157 139,401 157,635 156,454 192,442 187,610 21 Foreign sales 602,100 871,416 1,392,219 129,146 125,693 111,998 132,936 137,718 144,773 154,987 22 Net purchases, or sales (-) 252,592 336,970 373,659 40,382 32,464 27,403 24,699 18,736 47,669 32,623 23 Foreign countries 252,994 337,074 373,125 40,370 32,445 27,511 24,501 18,581 47,841 32,380 24 Europe 140,674 180,917 196,923 26,116 14,740 12,464 9,625 9,788 22.352 17,699 25 France 1,870 2,216 4,698 817 618 1,154 -1,035 -573 601 270 26 Germany 7,723 4,067 12,374 1,500 114 -185 472 454 1,666 2,001 27 Netherlands 2,446 1,130 2,175 509 576 -210 -297 457 83 -154 28 Switzerland 4,553 3,973 5,646 399 294 291 628 -51 292 417 29 United Kingdom 106,344 141,223 156,375 21,489 12,575 10,067 8,759 9,801 17,261 14,455 30 Channel Islands and Isle of Man1 n.a. n.a. 1,596 -218 330 203 106 93 355 69 31 Canada 6,043 13,287 3,701 240 822 485 -1,434 -646 1,335 25 32 Latin America and Caribbean 58,783 59,444 71,451 9,167 7,387 6,222 8,961 2,518 2,270 7,838 33 Middle East1 1,979 2,076 1,883 -395 -24 -345 -22 8 307 432 34 Other Asia 42,817 78,794 99,092 5,412 9,646 8,815 7,569 7,281 21,044 6,593 35 Japan 17,541 39,356 34,909 -480 5,187 3,452 1,641 1,066 15,243 1,104 36 Africa 1,411 938 806 14 160 79 136 -6 272 71 37 Other countries 1,287 1,618 -731 -184 -286 -209 -334 -362 261 -278 38 Nonmonetary international and regional organizations -402 -70 535 12 19 -108 198 155 -172 243 Foreign securities 39 Stocks, net purchases, or sales (-) 15,640 -13,088 -41,650 -7,732' -6,551 -6,345 -2,106 2,331 -3,096 2,723 40 Foreign purchases 1,177,303 1,802,185 1,308,689 135,462' 119,750 114,276 96,409 99,580 105,784 107,620 41 Foreign sales 1,161,663 1,815,273 1,350,339 143,194' 126,301 120,621 98,515 97,249 108,880 104,897 42 Bonds, net purchases, or sales (-) -5,676 ^1,054 31,572 2,267 1,048 5,629 9,405 10,319 308 -905 43 Foreign purchases 798,267 958,932 1,088,303 101,383 101,950 91,585 87,584 87,076 94,389 95,663 44 Foreign sales 803,943 962,986 1,056,731 99,116 100,902 85,956 78,179 76,757 94,081 96,568 45 Net purchases, or sales (-), of stocks and bonds 9,964 -17,142 -10,078 -5,465' -5,503 -716 7,299 12,650 -2,788 1,818 46 Foreign countries 9,679 -17,278 -9,558 -5,610r -5,500 -684 7,159 12,652 -2,594 1,824 47 Europe 59,247 -25,386 -1,207 -4,436' 2,100 1,368 6.267 5,993 -3,639 2,416 48 Canada -999 -3,888 1,536 931 405 299 -1,786 1,295 -804 -467 49 Latin America and Caribbean ^1,726 -15,688 3,604 3,047 -6,662 -444 711 2,658 -571 1,970 50 ^42,961 24,488 -10,717 -4.380' —151 -1,587 1,608 2,534 3,070 -2,101 51 Japan ^13,637 20,970 -18,150 -3,672' -10 -1,535 616 -391 1,441 -3,533 52 710 943 -699 -132 -47 -111 -25 -34 -565 183 53 Other countries -1,592 2,253 -2,075 -640 -845 -209 384 206 -85 -177 54 Nonmonetary international and regional organizations 285 150 -519 145 -3 -32 140 -2 -194 -6 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 J N a o n v .- . May June July Aug. Sept. Oct. Nov.p 1 Total estimated -9,953 -54,032 7,922 3,076 -3,445 -11,494 4,410 -l,990r 14,969 12,654 2 Foreign countries -10,518 -53,571 8,574 2,831 -3,237 -11,668 4,590 -2,138r 14,884 12,880 3 Europe -38,228 -50,704 -20,810 -498 -2,522 -8,223 321 -782r 2,339 -5,872 4 Belgium2 -81 73 -800 -216 -25 -343 42 174 -146 -9 5 Germany 2,285 -7,304 -2,743 1,176 -1,517 -970 67 -113 -392 54 6 Luxembourg2 n.a. n.a. 496 92 145 168 -64 -348 285 -5 7 Netherlands 2,122 2,140 -5,780 -1,730 1,117 1,263 2,437 -2,653 -1,336 -701 8 Sweden 1,699 1,082 -993 -386 -663 -114 593 1,037 -109 268 9 Switzerland -1,761 -10,326 1,078 -912 -3 270 -44 979 -339 215 10 United Kingdom -20,232 -33,669 -9,215 1,120 -3,180 -7,844 -4,610 l,992r 7,359 -7,396 11 Channel Islands and Isle of Man3 n.a. n.a. -43 -9 22 -64 11 -1 -34 7 12 Other Europe and former U.S.S.R -22,260 -2,700 -2,810 367 1,582 -589 1,889 -1,849 -2,949 1,695 13 Canada 7,348 -550 -7,113 745 161 -1,653 -356 -947 -3,091 ^130 14 Latin America and Caribbean -7,523 -4,914 11,414 140 -3,812 1,893 3,711 -541 3,998 6,266 15 Venezuela 362 1,288 287 51 -126 248 -128 39 -129 103 16 Other Latin America and Caribbean 1,661 -11,581 19,484 1,587 -545 -880 67 -524 4,065 8,393 17 Netherlands Antilles -9,546 5,379 -8,357 -1,498 -3,141 2,525 3,772 -56 62 -2,230 18 29,359 1,639 23,537 2,704 3,464 -3,940 576 -150r 11,755 11,820 19 Japan 20,102 10,580 13,395 4,658 -3,920 -2,126 324 -3,329' 16,640 1,737 ?0 Africa -3,021 -414 -587 -6 -12 -65 -120 47 -396 53 21 Other 1,547 1,372 2,133 -254 -516 320 458 235 279 1,043 22 Nonmonetary international and regional organizations 565 —461 -652 245 -208 174 -180 148 85 -226 23 International 190 -483 -333 393 -52 -90 103 -65 8 63 24 Latin American Caribbean regional 666 76 66 -4 -2 -1 -3 0 1 43 MEMO 25 Foreign countries -10,518 -53,571 8,574 2,831 -3,237 -11,668 4,590 -2,138r 14,884 12,880 76 Official institutions -9,861 -6,302 2,428 913 -3,243 -741 343 2,549 2,239 6,266 27 Other foreign -657 -47,269 6,146 1,918 6 -10,927 4,247 -4,687r 12,645 6,614 Oil-exporting countries 7.8 Middle East4 2,207 3,483 -1,352 -120 316 -590 -308 -586 12 2,442 29 0 0 -2 1 3 2 -2 -2 0 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 • March 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 2002 Aug. Sept. Oct. Nov. Dec. Jan. Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 64.54 58.15 51.69 52.46 50.36 50.42 51.65 51.38 51.70 2 Brazil/real 1.8207 1.8301 2.3527 2.5122 2.6767 2.7408 2.5481 2.3635 2.3799 3 Canada/dollar 1.4858 1.4855 1.5487 1.5399 1.5679 1.5717 1.5922 1.5788 1.5997 4 China, P.R./yuan 8.2783 8.2784 8.2770 8.2770 8.2768 8.2768 8.2769 8.2761 8.2771 5 Denmark/krone 6.9900 8.0953 8.3323 8.2632 8.1654 8.2186 8.3832 8.3526 8.4183 6 European Monetary Union/euro3 1.0653 0.9232 0.8952 0.9014 0.9114 0.9050 0.8883 0.8912 0.8832 7 Greece/drachma 306.30 365.92 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 Hong Kong/dollar 7.7594 7.7924 7.7997 7.7997 7.7997 7.7999 7.7996 7.7989 7.7989 9 India/rupee 43.13 45.00 47.22 47.17 47.75 48.05 48.04 47.93 48.35 10 Japan/yen 113.73 107.80 121.57 121.37 118.61 121.45 122.41 127.59 132.68 11 Malaysia/ringgit 3.8000 3.8000 3.8000 3.8000 3.8000 3.8001 3.8000 3.8000 3.8000 12 Mexico/peso 9.553 9.459 9.337 9.133 9.425 9.339 9.225 9.157 9.164 13 New Zealand/dollar2 52.94 45.68 42.02 43.14 41.73 41.39 41.58 41.57 42.45 14 Norway/krone 7.8071 8.8131 8.9964 8.9427 8.7691 8.8329 8.9296 8.9713 8.9684 15 Singapore/dollar 1.6951 1.7250 1.7930 1.7613 1.7494 1.8113 1.8295 1.8382 1.8394 16 South Africa/rand 6.1191 6.9468 8.6093 8.3115 8.6756 9.2804 9.7388 11.6761 11.6258 17 South Korea/won 1,189.84 1,130.90 1,292.01 1,285.65 1,293.83 1,302.36 1,282.10 1,292.29 1,316.34 18 Sri Lanka/rupee 70.868 76.964 89.602 89.994 90.157 90.954 92.670 93.194 93.473 19 Sweden/krona 8.2740 9.1735 10.3425 10.3329 10.6353 10.5661 10.6117 10.5753 10.4561 20 Switzerland/franc 1.5045 1.6904 1.6891 1.6808 1.6338 1.6357 1.6509 1.6566 1.6709 21 Taiwan/dollar 32.322 31.260 33.824 34.639 34.575 34.583 34.498 34.682 35.027 21 Thailand/baht 37.887 40.210 44.532 44.907 44.331 44.750 44.411 43.952 44.036 23 United Kingdom/pound2 161.72 151.56 143.96 143.72 146.38 145.01 143.56 144.13 143.22 24 Venezuela/bolivar 606.82 680.52 724.10 731.97 743.46 743.22 745.10 753.64 762.40 Indexes4 NOMINAL 25 Broad (January 1997=100)5 116.87 119.67 126.09 125.62 125.97 126.86 127.33 127.52 129.15 26 Major currencies (March 1973=100)6 94.07 98.32 104.32 103.84 103.40 104.37 105.64 106.30 108.10 27 Other important trading partners (January 1997-100)7 129.94 130.33 136.34 135.95 137.49 138.08 137.19 136.62 137.68 REAL 28 Broad (March 1973=100)5 99.42r 102.91' 108.90' 108.54' 109.01' 109.30' 109.66' 109.54' 111.47 29 Major currencies (March 1973=100)6 97.05r 103.16' 110.69' 110.05' 109.92' 110.81' 112.45' 112.64' 115.52 30 Other important trading partners (March 1973-100)7 109.84r 110.10' 114.57' 114.52' 115.79' 115.33' 114.15' 113.63' 114.56 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

A63 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 December 31,2000 May 2001 A72 March 31, 2001 August 2001 A72 June 30, 2001 February 2002 A72 September 30, 2001 March 2002 A65 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 • March 2002 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 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 t F d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 1 Total assets4 976,788 171,918 790,152 124,545 20,113 4,510 43,421 4,940 2 Claims on nonrelated parties 754,326 67,782 584,996 56,744 19,446 1,224 43,066 1,065 3 Cash and balances due from depository institutions 60,651 24,074 55,875 22,109 519 104 863 362 4 Cash items in process of collection and unposted debits 2,145 0 1,773 0 5 0 22 0 5 Currency and coin (U.S. and foreign) 14 n.a. 10 n.a. 1 n.a. 0 n.a. 6 Balances with depository institutions in United States 40,753 9,787 38,164 9,356 436 49 521 62 7 U.S. branches and agencies of other foreign banks (including their IBFs) 35,303 8,715 33,430 8,379 211 48 410 62 8 Other depository institutions in United States (including their IBFs) 5,449 1,072 4,734 977 224 1 111 0 9 Balances with banks in foreign countries and with foreign central banks 17,225 14,287 15,609 12,753 59 55 310 300 10 Foreign branches of U.S. banks 1,016 708 693 415 30 30 0 0 11 Banks in home country and home-country central banks 3,608 2,978 3,603 2,973 5 5 0 0 12 All other banks in foreign countries and foreign central banks 12,601 10,600 11,314 9,365 24 20 310 300 13 Balances with Federal Reserve Banks 514 n.a. 319 n.a. 18 n.a. 10 n.a. 14 Total securities and loans 435,792 34,181 329,581 26,077 18,260 1,074 27,166 35 15 Total securities, book value 110,435 5,861 99,254 5,330 1,286 438 4,064 12 16 U.S. Treasury 12,969 n.a. 12,117 n.a. 47 n.a. 267 n.a. 17 Obligations of U.S. government agencies and corporations 27,616 n.a. 24,057 n.a. 42 n.a. 1,478 n.a. 18 Other bonds, notes, debentures, and corporate stock (including state and local securities) 69,849 5,861 63,080 5,330 1,196 438 2,319 12 19 Securities of foreign governmental units 11,914 3,927 11,696 3,882 131 33 12 12 20 Mortgage-backed securities 16,051 0 15,842 0 186 0 0 0 21 Other asset-backed securities 9,581 14 7,901 14 0 0 0 0 22 All other 32,303 1,920 27,641 1,435 880 406 2,307 0 23 Federal funds sold and securities purchased under agreements to resell 90,129 7,283 79,326 6,508 357 27 5,058 664 24 Depository institutions in the United States 25,381 4,009 19,588 3,898 357 27 350 0 25 Other 64,748 3,274 59,738 2,610 0 0 4,708 664 26 Total loans, gross 325,735 28,348 230,596 20,768 16,999 636 23,110 24 27 LESS: Unearned income on loans 377 28 269 22 25 1 9 0 28 EQUALS: Loans, net 325,358 28,320 230,327 20,747 16,974 636 23,102 24 Total loans, gross, by category 29 Real estate loans 17,942 61 13,658 61 2,754 0 130 0 30 Loans to depository institutions and acceptances of other banks 73,558 14,031 55,477 9,117 2,264 484 5,106 21 31 Commercial banks in United States (including their IBFs) 6,693 1,599 5,220 1,173 637 329 340 0 32 U.S. branches and agencies of other foreign banks 3,580 1,524 2,433 1,098 581 329 312 0 33 Other commercial banks in United States 3,112 75 2,787 75 55 0 28 0 34 Other depository institutions in United States (including their IBFs) . . . 15 0 1 0 0 0 0 0 35 Banks in foreign countries 16,132 11,253 10,278 6,922 220 155 219 21 36 Foreign branches of U.S. banks 293 193 256 161 30 30 0 0 37 Other banks in foreign countries 15,839 11,060 10,022 6,761 190 125 219 21 38 Loans to other financial institutions 50,719 1,179 39,979 1,022 1,407 0 4,548 0 39 Commercial and industrial loans 210,816 12,397 141,072 10,082 11,387 131 16,916 0 40 U.S. addressees (domicile) 173,584 27 117,164 25 10,612 0 14,445 0 41 Non-U.S. addressees (domicile) 37,231 12,370 23,908 10,057 775 131 2,471 0 42 Loans to foreign governments and official institutions (including foreign central banks) 3,560 1,780 2,521 1,441 217 22 218 2 43 Loans for purchasing or carrying securities (secured and unsecured) .... 13,128 0 12,564 0 0 0 185 0 44 All other loans 6,167 79 5,033 67 377 0 261 0 45 Lease financing receivables (net of unearned income) 566 0 271 0 0 0 295 0 46 U.S. addressees (domicile) 566 0 271 0 0 0 295 0 47 Non-U.S. addressees (domicile) 0 0 0 0 0 0 0 0 48 Trading assets 127,661 866 87,021 865 47 0 7,860 0 49 All other assets 40,092 1,379 33,192 1,185 263 18 2,120 3 50 Customers' liabilities on acceptances outstanding 819 n.a. 591 n.a. 75 n.a. 109 n.a. 51 U.S. addressees (domicile) 277 n.a. 195 n.a. 72 n.a. 6 n.a. 52 Non-U.S. addressees (domicile) 542 n.a. 396 n.a. 3 n.a. 103 n.a. 53 Other assets including other claims on nonrelated parties 39,274 1,379 32,601 1,185 189 18 2,011 3 54 Net due from related depository institutions5 222,462 104,136 205,157 67,801 667 3,287 355 3,876 55 Net due from head office and other related depository institutions5 .... 222,462 n.a. 205,157 n.a. 667 n.a. 355 n.a. 56 Net due from establishing entity, head office, and other related depository institutions5 n.a. 104,136 n.a. 67,801 n.a. 3,287 n.a. 3,876 57 Total liabilities4 976,788 171,918 790,152 124,545 20,113 4,510 43,421 4,940 58 Liabilities to nonrelated parties 850,574 161,191 710,260 115,284 8,636 4,403 39,053 4,906 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A65 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 2001 '—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s 59 Total deposits and credit balances 392,894 118,200 338,057 84,307 2,991 1,017 13,028 3,953 60 Individuals, partnerships, and corporations (including certified and official checks) 303,249 9,975 254,240 4,937 2,678 144 11,787 28 61 U.S. addressees (domicile) 286,843 82 244,116 0 956 0 11,722 0 62 Non-U.S. addressees (domicile) 16,406 9,894 10,124 4,937 1,722 144 65 28 63 Commercial banks in United States (including their IBFs) 51,048 9,905 47,218 8,105 271 103 1,238 248 64 U.S. branches and agencies of other foreign banks 18,189 9,274 16,221 7,579 0 58 255 230 65 Other commercial banks in United States 32,859 632 30,997 526 271 45 983 18 66 Banks in foreign countries 10,082 63,074 9,395 45,011 9 76 1 1,104 67 Foreign branches of U.S. banks 1,852 3,463 1,851 2,357 0 0 0 289 68 Other banks in foreign countries 8,230 59,612 7,544 42,654 9 76 1 815 69 Foreign governments and official institutions (including foreign central banks) 8,615 35,241 8,291 26,251 7 693 1 22,,557733 70 All other deposits and credit balances 19,900 3 18,913 3 26 0 0 0 71 Transaction accounts and credit balances (excluding IBFs) 8,928 n.a. 6,655 n.a. 255 n.a. 159 n.a. 72 Individuals, partnerships, and corporations (including certified and official checks) 7,438 n.a. 5,454 n.a. 243 n.a. 115577 n.a. 73 U.S. addressees (domicile) 5,208 n.a. 4,223 n.a. 110 n.a. 148 n.a. 74 Non-U.S. addressees (domicile) 2,231 n.a. 1,231 n.a. 133 n.a. 9 n.a. 75 Commercial banks in United States (including their IBFs) 316 n.a. 309 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 283 n.a. 277 n.a. 0 n.a. 0 n.a. 78 Banks in foreign countries 687 n.a. 459 n.a. 9 n.a. 1 n.a. 79 Foreign branches of U.S. banks 1 n.a. 1 n.a. 0 n.a. 0 n.a. 80 Other banks in foreign countries 686 n.a. 458 n.a. 9 n.a. 1 n.a. 81 Foreign governments and official institutions (including foreign central banks) 287 n.a. 225511 n.a. 2 n.a. 11 n.a. 82 All other deposits and credit balances 199 n.a. 182 n.a. 1 n.a. 00 n.a. 83 Nontransaction accounts (including MMDAs, excluding IBFs) 383,966 n.a. 331,402 n.a. 2,736 n.a. 12,869 n.a. 84 Individuals, partnerships, and corporations (including certified and official checks) 295,811 n.a. 224488,,778866 n.a. 2,435 n.a. 1111,,663311 n.a. 85 U.S. addressees (domicile) 281,636 n.a. 239,893 n.a. 845 n.a. 11,574 n.a. 86 Non-U.S. addressees (domicile) 14,176 n.a. 8,893 n.a. 1,590 n.a. 57 n.a. 87 Commercial banks in United States (including their IBFs) 50,731 n.a. 46,909 n.a. 271 n.a. 1,238 n.a. 88 U.S. branches and agencies of other foreign banks 18,156 n.a. 16,188 n.a. 0 n.a. 255 n.a. 89 Other commercial banks in United States 32,576 n.a. 30,720 n.a. 271 n.a. 983 n.a. 90 Banks in foreign countries 9,394 n.a. 8,937 n.a. 0 n.a. 0 n.a. 91 Foreign branches of U.S. banks 1,850 n.a. 1,850 n.a. 0 n.a. 0 n.a. 92 Other banks in foreign countries 7,544 n.a. 7,086 n.a. 0 n.a. 0 n.a. 93 Foreign governments and official institutions (including foreign central banks) 8,329 n.a. 88,,004400 n.a. 5 n.a. 00 n.a. 94 All other deposits and credit balances 19,700 n.a. 18,731 n.a. 25 n.a. 0 n.a. 95 IBF deposit liabilities n.a. 118,200 n.a. 84,307 n.a. 1.017 n.a. 3,953 96 Individuals, partnerships, and corporations (including certified and official checks) n.a. 9,975 n.a. 4,937 n.a. 144 n.a. 2288 97 U.S. addressees (domicile) n.a. 82 n.a. 0 n.a. 0 n.a. 0 98 Non-U.S. addressees (domicile) n.a. 9,894 n.a. 4,937 n.a. 144 n.a. 28 99 Commercial banks in United States (including their IBFs) n.a. 9,905 n.a. 8,105 n.a. 103 n.a. 248 100 U.S. branches and agencies of other foreign banks n.a. 9,274 n.a. 7,579 n.a. 58 n.a. 230 101 Other commercial banks in United States n.a. 632 n.a. 526 n.a. 45 n.a. 18 102 Banks in foreign countries n.a. 63,074 n.a. 45,011 n.a. 76 n.a. 1,104 103 Foreign branches of U.S. banks n.a. 3,463 n.a. 2,357 n.a. 0 n.a. 289 104 Other banks in foreign countries n.a. 59,612 n.a. 42,654 n.a. 76 n.a. 815 105 Foreign governments and official institutions (including foreign central banks) n.a. 35,241 n.a. 26,251 n.a. 693 n.a. 22,,557733 106 All other deposits and credit balances n.a. 3 n.a. 3 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

A66 Special Tables • March 2002 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 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 t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 107 Federal funds purchased and securities sold under agreements to repurchase 152,322 20,587 135,946 13,966 1,176 212 5,062 683 108 Depository institutions in the United States 30,423 3,635 24,950 2,515 825 81 2,051 318 109 Other 121,899 16,953 110,996 11,452 351 132 3,011 365 110 Other borrowed money 79,076 20,650 64,395 15,607 3,237 3,149 6,152 259 111 Owed to nonrelated commercial banks in United States (including their IBFs) 11,122 2,940 9,708 2,415 428 345 354 60 112 Owed to U.S. offices of nonrelated U.S. banks 6,505 491 6,080 445 89 24 179 0 113 Owed to U.S. branches and agencies of nonrelated foreign banks 4,617 2,449 3,628 1,970 339 322 175 60 114 Owed to nonrelated banks in foreign countries 15,935 14,209 11,835 10,209 2,382 2,376 203 199 115 Owed to foreign branches of nonrelated U.S. banks 1,246 1,124 1,036 949 174 174 0 0 116 Owed to foreign offices of nonrelated foreign banks 14,689 13,085 10,799 9,260 2,208 2,202 203 199 117 Owed to others 52,019 3,501 42,852 2,983 428 427 5,595 0 118 All other liabilities 108,083 1,755 87,556 1,404 215 25 10,858 11 119 Branch or agency liability on acceptances executed and outstanding 954 n.a. 600 n.a. 75 n.a. 222299 n.a. 120 Trading liabilities 72,253 121 56,189 119 16 0 8,745 2 121 Other liabilities to nonrelated parties 34,875 1,634 30,767 1.285 125 25 1,884 9 122 Net due to related depository institutions5 126,214 10,727 79,892 9,261 11,476 108 4,368 35 123 Net due to head office and other related depository institutions5 126,214 n.a. 79,892 n.a. 11,476 n.a. 4,368 n.a. 124 Net due to establishing entity, head office, and other related depository institutions5 n.a. 10,727 n.a. 9,261 n.a. 108 n.a. 35 MEMO 125 Holdings of own acceptances included in commercial and industrial loans 1,211 n.a. 651 n.a. 17 n.a. 204 n.a. 126 Commercial and industrial loans with remaining maturity of one year or less (excluding those in nonaccrual status) 104,056 n.a. 64,863 n.a. 6,147 n.a. 13,018 n.a. 127 Predetermined interest rates 51,209 n.a. 27,282 n.a. 3,511 n.a. 9,906 n.a. 128 Floating interest rates 52,847 n.a. 37,581 n.a. 2,637 n.a. 3,112 n.a. 129 Commercial and industrial loans with remaining maturity of more than one year (excluding those in nonaccrual status) 102,408 n.a. 72,902 n.a. 4,942 n.a. 3,789 n.a. 130 Predetermined interest rates 19,950 n.a. 14,867 n.a. 592 n.a. 576 n.a. 131 Floating interest rates 82,458 n.a. 58,035 n.a. 4,350 n.a. 3,213 n.a. Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A67 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 2001 '—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l 1 n g o IB nl F y s 3 exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u t F d a s i l n g I o B n F ly s 111133332222 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss 387,668 n.a. 333,942 n.a. 2,544 n.a. 12,808 n.a. 111133333333 TTTTiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 377,509 n.a. 326,155 n.a. 2,542 n.a. 12,806 n.a. 111133334444 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss 10,159 n.a. 7,788 n.a. 2 n.a. 2 n.a. All states2 New York California Illinois Total Total Total Total including IBFs including IBFs including IBFs including IBFs IBFs3 only3 IBFs only IBFs only IBFs only 111133335555 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 28,371 n.a. 25,047 n.a. 1,595 n.a. 1,050 n.a. 111133336666 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 322 0 166 0 63 0 23 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.l 1, last issued on July 10, 1980. Data in this table and in monthly branch and agency report, available through the G.ll monthly statistical release, the G. 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. 11 tables. 2. Includes the District of Columbia. 5. Related depository institutions includes the foreign head office and other U.S. and 3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to foreign branches and agencies of a bank, a bank's parent holding company, and majoritypermit banking offices located in the United States to operate international banking facilities owned banking subsidiaries of the bank and of its parent holding company (including (IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column. subsidiaries owned both directly and indirectly). These data are either included in or excluded from the total columns as indicated in the 6. In some cases, two or more offices of a foreign bank within the same metropolitan area headings. The notation "n.a." indicates that no IBF data have been reported for that item, file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 Federal Reserve Bulletin • March 2002 Index to Statistical Tables References are to pages A3-A67, although the prefix 'A" is omitted in this index. ACCEPTANCES, bankers (See Bankers acceptances) Federal finance Assets and liabilities (See also Foreigners) Debt subject to statutory limitation, and types and ownership Commercial banks, 15-21 of gross debt, 27 Domestic finance companies, 32, 33 Receipts and outlays, 25, 26 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 25 Foreign banks, U.S. branches and agencies, 64-7 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, 23 Federal Land Banks, 35 Bankers balances, 15-21, 64-7 (See also Foreigners) Federal National Mortgage Association, 30, 34, 35 Bonds {See also U.S. government securities) Federal Reserve Banks New issues, 31 Condition statement, 10 Rates, 23 Discount rates (See Interest rates) Business activity, nonfinancial, 42 U.S. government securities held, 5, 10, 11, 27 Business loans (See Commercial and industrial loans) Federal Reserve credit, 5, 6, 10, 12 Federal Reserve notes, 10 CAPACITY utilization, 43 Federally sponsored credit agencies, 30 Capital accounts Finance companies Assets and liabilities, 32 Commercial banks, 15-21 Business credit, 33 Federal Reserve Banks, 10 Loans, 36 Certificates of deposit, 23 Paper, 22, 23 Commercial and industrial loans Float, 5 Commercial banks, 15-21 Weekly reporting banks, 17, 18 Flow of funds, 37^1 Commercial banks Foreign banks, U.S. branches and agencies, 64-7 Assets and liabilities, 15-21 Foreign currency operations, 10 Commercial and industrial loans, 15-21 Foreign deposits in U.S. banks, 5 Consumer loans held, by type and terms, 36 Foreign exchange rates, 62 Real estate mortgages held, by holder and property, 35 Foreign-related institutions, 20 Time and savings deposits, 4 Foreign trade, 51 Commercial paper, 22, 23, 32 Foreigners Condition statements (See Assets and liabilities) Claims on, 52, 55-7, 59 Construction, 42, 46 Liabilities to, 51-4, 58, 60, 61 Consumer credit, 36 Consumer prices, 42 GOLD Consumption expenditures, 48, 49 Certificate account, 10 Corporations Stock, 5, 51 Profits and their distribution, 32 Government National Mortgage Association, 30, 34, 35 Security issues, 31, 61 Gross domestic product, 48, 49 Cost of living (See Consumer prices) Credit unions, 36 HOUSING, new and existing units, 46 Currency in circulation, 5, 13 Customer credit, stock market, 24 INCOME, personal and national, 42, 48, 49 Industrial production, 42, 44 DEBT (See specific types of debt or securities) Insurance companies, 27, 35 Demand deposits, 15-21 Interest rates Depository institutions Bonds, 23 Reserve requirements, 8 Consumer credit, 36 Reserves and related items, 4-6, 12 Federal Reserve Banks, 7 Deposits (See also specific types) Money and capital markets, 23 Commercial banks, 4, 15-21 Mortgages, 34 Federal Reserve Banks, 5, 10 Prime rate, 22 Discount rates at Reserve Banks and at foreign central banks and International capital transactions of United States, 50-61 foreign countries (See Interest rates) International organizations, 52, 53, 55, 58, 59 Discounts and advances by Reserve Banks (See Loans) Inventories, 48 Dividends, corporate, 32 Investment companies, issues and assets, 32 Investments (See also specific types) EMPLOYMENT, 42 Commercial banks, 4, 15-21 Euro, 62 Federal Reserve Banks, 10, 11 Financial institutions, 35 FARM mortgage loans, 35 Federal agency obligations, 5, 9-11, 28, 29 LABOR force, 42 Federal credit agencies, 30 Life insurance companies (See Insurance companies) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 Loans (See also specific types) Savings deposits (See Time and savings deposits) Commercial banks, 15-21 Savings institutions, 35, 36, 37-41 Federal Reserve Banks, 5-7, 10, 11 Securities (See also specific types) Financial institutions, 35 Federal and federally sponsored credit agencies, 30 Foreign banks, U.S. branches and agencies, 64-7 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) T T h A r X if t r i e n c s e t i i p tu ts t , i o f n e s d , e r 4 a l ( , S e 2 e 6 also Credit unions and Savings institutions) NATIONAL defense outlays, 26 Time and savings deposits, 4, 13, 15-21 National income, 48 Trade, foreign, 51 Treasury cash, Treasury currency, 5 OPEN market transactions, 9 Treasury deposits, 5, 10, 25 Treasury operating balance, 25 PERSONAL income, 49 Prices UNEMPLOYMENT, 42 Consumer and producer, 42, 47 U.S. government balances Stock market, 24 Commercial bank holdings, 15-21 Prime rate, 22 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

134 Federal Reserve Bulletin • March 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 J B R D O O A O H B V S N A ID S N L T N W A O A H . P E L S P Y Z K I , A I M D N S M O p A e O O L c T R R i O E E a , , - l C S S A A p p s M e e si c c E s i i R t a a a O l l n A N A t , s s t s s o S i i p s s t t t e h a a c e n n i a t B t l t t o o o A a s t r t h s h d i e e s t B B a o n o a t a r t r o d d the Board D T D K H A A A O V L R E I M E D N A W H S H . . . A H H . J E O O C N W H O D N A N E R S N R O D O S , N O R , D N S D , , e A i A p r u s s e s s t c y o o t o c c D i r i a a ir t t e e e c D D to i i r r r e e c c t t o o 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 J R M E O A N B R N E G I R F A T E R R D E T E J. V M J . O . F H R S N H IE S A R O N S N K O , S N S , , e A D c s r e s e p i t s a u t r a ty y n t S S ec e r c e r t e a ta ry r y D M ST A Y E V R P I O D H N E W N L . . D W K . I W O LC A L O S IN T X , E , A R D , s e s A p o s u c s i t o a y c t i D e a i t D r e e ir D c e t i o c r t r e o c r t or 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 JOYCE K. ZICKLER, Deputy Associate Director R H W J S R G J S A A T T I O E E I C C M E E L R R G K H P P L E B A E H A H S I E R P L A R E E R . D V M T N D N T J . . A E H A S M C A . C N P . O . . . O N E I U R S B D L I L H C N P Y I L W E O E H G T B , E F A R , E S A N S F R , A N M C e K M D , A s n K E O S A s S s i , R , T o o s N e S I H o J c r , n N e R i c E A i J G a n . o i N R , s , a t i r , e A . s o t , D A o e D r s A D c e s s A i D s o i p i s r a s r s o e c u i o e s t r c i c t e o c c e a y t i t i o c c a t D o a e D i t r t a o r t e i e D i r t r r e e D D e i c r D c i t e i r t o r i e c o e r r c t r e c o t c t o r o t r o r r J D J S W A G D T . . A H A L A L I N N W L I V O V E E C I L I I M A N C E D L D I N E Y A A L P L N S S M I S B A . . E E H . D T J R L L . P R O A C E . I A I C N A S I A W C S F I E K N N I M S S A A S - N M G C , P M S E , W H O C S S A R A O N H R e H , R N n s E E E I Q S s , , i I R T o i D e A U , S s E r n E t E A e , s a i R A s n Z A o s n , i , d i s r s s t o A i v A t s A s r D a i s i t s s s n d A s a i s e t i r t v n i d a s r s e i D t t v n s t c a a i D e t i t s n r n o r D e i e t t r r r c i D e D r t c o e i i t r c r r o e t e r o c c t r t o o r r MICHAEL G. MARTINSON, Associate Director MOLLY S. WASSOM, Associate Director DIVISION OF MONETARY AFFAIRS HOWARD A. AMER, Deputy Associate Director VINCENT R. REINHART, Director NORAH M. BARGER, Deputy Associate Director DAVID E. LINDSEY, Deputy Director BETSY CROSS, Deputy Associate Director BRIAN F. MADIGAN, Deputy Director DEBORAH P. BAILEY, Assistant Director WILLIAM C. WHITESELL, Deputy Associate Director BARBARA J. BOUCHARD, Assistant Director JAMES A. CLOUSE, Assistant Director ANGELA DESMOND, Assistant Director WILLIAM B. ENGLISH, Assistant Director JAMES A. EMBERSIT, Assistant Director RICHARD D. PORTER, Senior Adviser CHARLES H. HOLM, Assistant Director HEIDI WILLMANN RICHARDS, Assistant Director WILLIAM G. SPANIEL, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 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 R 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

136 Federal Reserve Bulletin • March 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 ANTHONY M. SANTOMERO ROGER W. FERGUSON, JR. ROBERT D. MCTEER, JR. GARY H. STERN EDWARD M. GRAMLICH MARK W. OLSON 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 DAVID H. HOWARD, Associate Economist GARY P. GILLUM, Assistant Secretary DAVID E. LINDSEY, Associate Economist MICHELLE A. SMITH, Assistant Secretary LORETTA J. MESTER, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel STEPHEN D. OLINER, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel ARTHUR J. ROLNICK, Associate Economist KAREN H. JOHNSON, Economist HARVEY ROSENBLUM, Associate Economist VINCENT R. REINHART, Economist MARK S. SNIDERMAN, Associate Economist DAVID J. STOCKTON, Economist DAVID W. WILCOX, Associate Economist THOMAS A. CONNORS, Associate Economist DINO KOS, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL DAVID A. DABERKO, President L. M. BAKER, JR., Vice President 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

A73 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 JAMIE BARRERA, San Antonio, Texas RUHI MAKER, Rochester, New York KENNETH BORDELON, Baton Rouge, Louisiana OSCAR MARQUIS, Park Ridge, Illinois TERESA A. BRYCE, St. Louis, Missouri PATRICIA MCCOY, Cleveland, Ohio MANUEL CASANOVA, JR., Brownsville, Texas JEREMY NOWAK, Philadelphia, Pennsylvania CONSTANCE K. CHAMBERLIN, Richmond, Virginia ELIZABETH RENUART, Boston, Massachusetts ROBERT M. CHEADLE, Ada, Oklahoma DEBRA REYES, Tampa, Florida ROBIN COFFEY, Chicago, Illinois BENSON ROBERTS, Washington, District of Columbia LESTER W. FIRSTENBERGER, Pittsfield, New Hampshire AGNES BUNDY SCANLON, Boston, Massachusetts THOMAS FITZGIBBON, Chicago, Illinois RUSSELL W. SCHRADER, San Francisco, California LARRY HAWKINS, Houston, Texas FRANK TORRES, JR., Washington, District of Columbia EARL JAROLIMEK, Fargo, North Dakota HUBERT VAN TOL, Sparta, Wisconsin 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

138 Federal Reserve Bulletin • March 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. Privacy Choices for Your Personal Financial Information 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

A75 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, general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and by Stephen A. Rhoades. July 1994. 37 pp. 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. to be added to the mailing list for the series may be sent to Lowrey. December 1997. 17 pp. 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

140 Federal Reserve Bulletin • March 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

A77 1-A 2-B 3-C 4-D 5-E MH Pittsburgh Baltimore MD NY A/ Q X IJ /C I / VAB VT wv NC /"t cinnati • Charlone Bullalo * MA cr • R1 N / J NY KY sc BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H •Nashville TN- KY / Birmingharru il ;IN f MV D MO Louisville AR — TN LA Jacksonville Memphis New Oi leans > Little Rock ( MS Miami ATLANTA CHICAGO ST. LOUIS 9-1 Ml ' Helena MINNEAPOLIS 10-J 12-L BMW — CO 1 — MO 0 Denver • • H• • BWB M B BI m- OHahoina t"it\ OK KANSAS CITY 11-K L\ Salt Lake City NM Hb ••••Ik. •BBWBI "•'fy! •((PB • BH I ilil • LA r LI PC I / \ !»-»««« X r-> | TL Ho• iN.m •Los Angeles San Antonio*^ DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 Federal Reserve Bulletin • March 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 Gail Darling Sammie C. Clay Houston 77252 Edward O. Gay lord Robert Smith III1 San Antonio, 78295 Ron Harris 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

A79 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

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