Federal Reserve Bulletin, 2003-01

Volume 89 • Number 1 • January 2003 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 • 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 Publications Department under the direction of Lucretia M. Boyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents L RECENT CHANGES IN U.S. FAMILY forty-nine organizations and discusses areas in FINANCES: EVIDENCE FROM THE 1998 AND which, in the committee's opinion, the Federal 2001 SURVEY OF CONSUMER FINANCES Reserve and other organizations may be able to foster, or help reduce barriers to, innovation in Data from the Federal Reserve Board's Survey of the payments system. Consumer Finances show a striking pattern of growth in family income and net worth between 34 ANNOUNCEMENTS 1998 and 2001. Inflation-adjusted incomes of families rose broadly, although growth was fast- FOMC directive. est among the group of families whose income Appointment of new members and designation was higher than the median. The median value of of the president and vice president of the Thrift family net worth grew faster than that of income, Institutions Advisory Council for 2003. but as with income, the growth rates of net worth were fastest for groups above the median. The Appointment of new president of the Federal years between 1998 and 2001 also saw a rise Reserve Bank of Cleveland. in the proportion of families that own corporate Publication of final Regulation W. equities either directly or indirectly (such as through mutual funds or retirement accounts); Revisions to policies and procedures regarding by 2001 the proportion exceeded 50 percent. The priority provision and restoration of telecommugrowth in the value of equity holdings helped nications circuits. push up financial assets as a share of total family Proposed revisions to the official staff commenassets despite a decline in the overall stock martary to Regulation Z. ket that began in the second half of 2000. The level of debt carried by families rose over Proposal to expand operating hours for the the period, but the expansion in equities and the on-line Fedwire funds service. increased values of principal residences and other Formation of working group to study risk in the assets were sufficient to reduce debt as a proclearance and settlement of U.S. government portion of family assets. The typical share of securities. family income devoted to debt repayment also fell over the period. For some groups, however— Release of minutes of discount rate meetings. particularly those with relatively low levels of Enforcement action. income and wealth—a concurrent rise in the frequency of late debt payments indicated that their Delay in publication of G.17 statistical release. ability to service their debts had deteriorated. 38 LEGAL DEVELOPMENTS 33 STAFF STUDY SUMMARY Various bank holding company, bank service corporation, and bank merger orders; and pend- The Federal Reserve System's Payments System ing cases. Development Committee asked Federal Reserve staff to seek the views of the private sector and A1 FINANCIAL AND BUSINESS STATISTICS other interested parties on developments in payments, clearing, and settlement services, focusing These tables reflect data available as of on potential barriers to innovation and the impli- November 26, 2002. cations of new technologies for the design and A3 GUIDE TO TABLES function of payments systems. The staff study "The Future of Retail Electronic Payments Sys- A4 Domestic Financial Statistics tems: Industry Interviews and Analysis" presents A42 Domestic Nonfinancial Statistics highlights of interviews with representatives of A44 International Statistics Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A57 GUIDE TO SPECIAL TABLES AND A64 FEDERAL RESERVE BOARD PUBLICATIONS STATISTICAL RELEASES A66 MAPS OF THE FEDERAL RESERVE SYSTEM A58 INDEX TO STATISTICAL TABLES A68 FEDERAL RESERVE BANKS, BRANCHES, A60 BOARD OF GOVERNORS AND STAFF AND OFFICES A62 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances Ana M. Aizcorbe, Arthur B. Kennickell, and Kevin B. (SCF) for those years; it also uses evidence from Moore, of the Board's Division of Research and earlier years of the survey to place the 1998-2001 Statistics, prepared this article with assistance from changes in a broader context. Ryan M. Bledsoe, Gerhard Fries, and L. Brooke Wells. ECONOMIC BACKGROUND Data from the Federal Reserve Board's Survey of Consumer Finances show a striking pattern of growth After growing rapidly for several years, real in family income and net worth between 1998 and (inflation-adjusted) gross domestic product increased 2001. Inflation-adjusted incomes of families rose at a more moderate 2.3 percent rate in 2000. Between broadly, although growth was fastest among the 1998 and 2000, the increase in overall economic group of families whose income was higher than the activity was sufficiently strong to lower the unemmedian. The median value of family net worth grew ployment rate from 4.5 percent to 4.0 percent. In part faster than that of income, but as with income, the because of a run-up in energy prices, the rate of growth rates of net worth were fastest for the group inflation as measured by the consumer price index for above the median. The years between 1998 and 2001 all urban consumers (CPI) rose from 1.5 percent to also saw a rise in the proportion of families that own 3.4 percent. corporate equities either directly or indirectly (such Real GDP actually declined through the first three as through mutual funds or retirement accounts); by quarters of 2001, before turning up in the fourth 2001 the proportion exceeded 50 percent. The growth quarter, and for the year as a whole, real GDP in the value of equity holdings helped push up finan- was essentially unchanged. The unemployment rate cial assets as a share of total family assets despite a jumped to 4.8 percent during the year—close to its decline in the overall stock market that began in the level in early 1998—and the CPI inflation rate fell to second half of 2000. 1.9 percent, the same pace as for 1998. The level of debt carried by families rose over Developments in the financial sector during the the period, but the expansion in equities and the 1998-2001 period were mixed. The stock market increased values of principal residences and other decline over much of 2000 and 2001 reversed gains assets were sufficient to reduce debt as a proportion posted earlier, and by the end of 2001 it had brought of family assets. The typical share of family income most major indexes close to their 1998 levels. Interdevoted to debt repayment also fell over the period. est rates on mortgages followed a similar pattern. For For some groups, however—particularly those with example, the thirty-year fixed rate rose over the late relatively low levels of income and wealth—a con- 1990s, but by September 2001 (the middle of the data current rise in the frequency of late debt payments collection period for the 2001 survey), it had returned indicated that their ability to service their debts had to the 63/ percent level seen in September 1998. By 4 deteriorated. September 2001, interest rates for loans on new vehi- This article reviews these and other changes in the cles and for credit card balances were below their financial condition of U.S. families between 1998 and 1998 levels. Interest rates on deposits had dropped 2001.1 The discussion draws on data from the Federal below 3 percent by 2001. While the homeownership Reserve Board's Survey of Consumer Finances rate rose moderately over the period, house prices 1. The appendix to this article provides a summary of key technical aspects of the survey. For a detailed discussion of the 1995 and 1998 in U.S. Family Finances: Results from the 1998 Survey of Consumer surveys as well as references to earlier surveys, see Arthur B. Ken- Finances," Federal Reserve Bulletin, vol. 86 (January 2000), nickell, Martha Starr-McCluer, and Brian J. Surette, "Recent Changes pp. 1-29. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin • January 2003 The Data Used in This Article Data from the Survey of Consumer Finances (SCF) are the SCF are adjusted to 2001 dollars using the "current methbasis of the analysis presented in this article. The SCF is a ods" version of the consumer price index (CPI) for all triennial interview survey of U.S. families sponsored by the urban consumers.1 Because the current-methods index Board of Governors of the Federal Reserve System with the shows a lower rate of past price inflation than does the cooperation of the U.S. Department of the Treasury. Since official CPI, upward adjustments for inflation made to the 1992, data for the SCF have been collected by NORC, a pre-2001 nominal values are smaller than they would have research organization at the University of Chicago, roughly been under the official CPI. between May and December of each survey year. The principal detailed tables describing asset and debt The majority of statistics included in this article are holdings focus on the percent of various groups that have related to characteristics of "families." As used here, this such items and the median holding for those that have term is more comparable to the U.S. Bureau of the Census them.2 This conditional median is chosen to give a sense of definition of "households" than to their use of "families," the "typical" holding. Generally, when one deals with data which excludes the possibility of one-person families. The that exhibit very large values for a relatively small part of appendix provides full definitions of "family" for the SCF the population—as is the case for many of the items conand the associated family "head." The survey is designed to sidered in this article—estimates of the median are often provide detailed information on U.S. families' balance statistically less sensitive to such outliers than are estimates sheets and their use of financial services as well as on their of the mean. One liability of using the median as a descrippensions, labor force participation, and demographic char- tive device is that medians are not "additive"; that is, the acteristics as of the time of the interview. It also collects sum of the medians of two items for a common population information on families' total cash income before taxes for is not generally equal to the median of the sum. In contrast, the calendar year preceding the survey. The survey ques- means for a common population are additive. In tables tionnaire has changed in only minor ways since 1989, where a comparable median and mean are given, the growth of the mean relative to the median may usually be taken except in a small number of instances in which the structure as indicative of change at the top of the distribution; for was altered to accommodate changes in financial behaviors. example, when the mean grows more rapidly than the Thus, the data are highly comparable over time. median, it is typically taken to indicate that the values The need to measure financial characteristics imposes comprised by the top of the distribution rose more rapidly special requirements on the sample design for the survey. than those in the lower part of the distribution. The SCF is expected to provide reliable information both on attributes that are broadly distributed in the population To provide a measure of the significance of the develop- (such as home ownership) and on those that are highly ments discussed in this article, standard errors due to samconcentrated in a relatively small part of the population pling are given for selected estimates.3 Space limits pre- (such as closely held businesses). To address this require- vent the inclusion of the standard errors for all estimates. ment, the SCF employs a sample design, essentially Although we do not directly address the statistical signifiunchanged since 1989, consisting of two parts: a standard, cance of the results, the article highlights findings that are geographically based random sample and a special over- significant or are interesting in a broader context. sample of relatively wealthy families. Weights are used to combine information from the two samples to make estimates for the full population. In the 1998 survey, 4,309 families were interviewed, and in the 2001 survey, 1. In an ongoing effort to improve accuracy, the Bureau of Labor Statistics 4,449 were interviewed. has introduced several revisions to its CPI methodology. The currentmethods index attempts to extend these changes to earlier years to obtain a This article draws principally upon the final data from the series as consistent as possible with current practices in the official CPI. For 1998 and 2001 surveys. To provide a larger context, some technical information about the construction of this index, see Kenneth J. information is also included from the final versions of the Stewart and Stephen B. Reed, "Consumer Price Index Research Series Using Current Methods, 1978-1998," Monthly Labor Review, vol. 122 (June 1999), 1992 and 1995 surveys. Differences between estimates from pp. 29-38. To adjust assets and liabilities to 2001 dollars, the earlier survey earlier surveys as reported here and as reported in earlier data were multiplied by the following amounts: for 1992, 1.2374; for 1995, Federal Reserve Bulletin articles are attributable to addi- 1.1558; and for 1998, 1.0885. To adjust family income for the previous calendar year to 2001 dollars, the following factors were applied: for 1992, tional statistical processing, correction of minor data errors, 1.2675; for 1995, 1.1815; for 1998, 1.0998; and for 2001, 1.0279. revisions to the survey weights, conceptual changes in the 2. The median of a distribution is defined as the value at which equal parts of the population considered have values larger or smaller. definitions of variables used in the articles, and adjustments 3. As noted in the appendix, these standard errors are estimated with a for inflation. In this article, all dollar amounts from the procedure different from that employed in earlier articles on the survey. climbed steadily; some indexes of house prices in 2001 lowered the income tax burden beginning gained nearly 25 percent. that year. Other changes in tax law expanded incen- Other institutional factors also affected family tives for saving; of particular note were increases in finances. Tax cuts and rebates that were implemented the limits on contributions to individual retirement Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 3 accounts (IRAs) and 401(k) accounts. At the same tially higher than for those with any lesser amount of time, the first in a series of estate tax reductions was schooling. Incomes of white non-Hispanic families implemented. Increases in education-related tax are substantially higher than those of other families.4 credits also held down the tax payments of families. Families headed by self-employed workers have the Continuing growth of the Internet made financial highest median and mean incomes of all work-status information and tools for financial management more groups. Income is also higher for homeowners than widely available; according to the SCF the fraction of for other families, and it is progressively higher for families who used such resources about doubled groups with greater net worth. By region of the between 1998 and 2001, but the overall rate of use country, the ordering of median incomes over time remained less than 25 percent of families. has varied, but the means show consistently higher Ongoing demographic trends continued to change values for the Northeast and West than for the North the structure of the population. Overall population Central and South. growth was about 3.2 percent between 1998 and 2001; about 45 percent of the increase was due to net immigration. With the aging of the baby-boom pop- Income by Demographic Category ulation, the number of people aged 45 to 64 grew more than 10 percent. The number of households Incomes grew at different rates in different parts of grew 4.1 percent—a rate faster than the 3.6 percent the income distribution between 1998 and 2001, with pace in the 1995-98 period—while the average num- faster growth at both the top and the bottom of the ber of people per household remained close to two. ranges than in the middle. During this period, the median income of families in the lowest 20 percent of the income distribution grew 14.4 percent; for the FAMILY INCOME middle group (40th to 60th percentiles), it rose 9.6 percent; and for those in the highest group (90th Between 1998 and 2001, inflation-adjusted family to 100th percentiles), it rose 19.3 percent. A similar incomes rose notably faster than they did in the pattern holds for the 1992-2001 period. 1995-98 period (see table 1 for dollar values): The By age group, median income rose between 1998 median rose 9.6 percent (2.5 percent during the and 2001 for all except the 45-54 group, for which it 1995-98 period), and the mean rose 17.4 percent declined 1.3 percent. In percentage terms, the greatest (12.2 percent during the 1995-98 period).2 The Cur- increase was for the 75-and-older group—a rise of rent Population Survey (CPS) of the Bureau of the 23.1 percent; income for this group had been fairly Census reports growth in median income for the flat from 1992 through 1998. Mean income grew for 1998-2001 period that is similar to the growth shown all age groups between 1998 and 2001, but particuin the SCF, but at a somewhat higher level.3 larly so—22.6 percent—for the 45-54 group. Some patterns of income across family groups hold consistently, or nearly so, in the four surveys primarily because the CPS truncates incomes above a certain amount taken in the nine-year period between 1992 and 2001. to obscure respondents who might otherwise be identifiable. Across age classes, median and mean income show 4. The race and ethnicity of members of a single family may vary; the expected life-cycle pattern: They rise to a peak in this article categorizes the family as a whole according to the selfidentification of the respondent to the SCF interview. The SCF questhe 45-54 group and then decline for groups that are tion that is used to identify race and Hispanic origin was changed in older and increasingly more likely to be retired. 1998. In earlier surveys, respondents were asked to choose a single Income also rises with education, and incomes for category that best described their race or ethnicity. In 1998, respondents could choose as many as seven responses, but they were asked family heads that have a college degree are substanto report first the category with which they identified most. For comparability with the earlier surveys, this article uses only the 2. To measure income, the interviewers request information on all first response to the race and ethnicity questions for the 1998 and 2001 components of the family's cash income, before taxes, for the full surveys. Only a few of the survey respondents gave more than one calendar year preceding the interview (see box "The Data Used in response, and more complex treatments of the data do not yield This Article"). Hence, references in the text and tables of this article conclusions that are substantively different from those reported in this to income reported from the survey years 1992, 1995, 1998, and 2001 article. cover the income received in 1991, 1994, 1997, and 2000 respectively. The estimated proportion of families that are of Hispanic origin in 3. According to the CPS, median household income for the twelve the 2001 SCF is lower than an estimate based on the CPS, most likely months preceding March 2001 was $42,200. The difference in the because the CPS, unlike the SCF, asks directly about ethnicity in a levels of the medians in the two surveys appears to be largely question separate from the one that asks about race. Thus, in the CPS, explained by differences in the way the surveys treat incomes of respondents who do not normally identify themselves as Hispanic household members. Under the SCF definition of family, household might provide an ethnic origin that is later classified as Hispanic. The members (and their respective incomes) may belong to different proportions of families of Asian and Native American origin in the families (see the appendix for details), whereas the CPS household SCF are smaller than those obtained from the CPS, most likely measure includes the incomes of all household members. In addition, because of sampling error. The SCF estimate of the proportion of mean income is substantially higher in the SCF than in the CPS, African Americans is close to an estimate based on the CPS data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Federal Reserve Bulletin • January 2003 1. Before-tax family income, percentage of families who saved, and distribution of families, by selected characteristics of families, 1992, 1995, 1998, and 2001 surveys Thousands of 2001 dollars except as noted 1992 1995 FFaammiillyy Percentage Percentage cchhaarraacctteerriissttiicc of Percentage of Percentage Median Mean of Median Mean of families families families families who saved who saved All families .. 33.0 49.5 57.1 100 35.5 51.6 55.2 100 (•7) (•7) (.9) (.8) Percentile of income Less than 20 8.4 8.1 30.2 20.0 8.0 7.7 31.6 20.0 20-39.9 19.6 19.6 49.1 20.0 20.3 20.3 43.4 20.0 40-59.9 33.0 33.6 59.2 20.0 35.5 34.8 57.2 20.0 60-79.9 52.3 53.5 70.0 20.0 52.7 53.5 66.8 20.0 80-89.9 78.0 79.5 71.6 10.0 79.3 80.4 69.9 10.0 90-100 133.2 186.0 82.0 10.0 130.1 202.6 84.2 10.0 Age of head (years) Less than 35 30.4 37.5 59.1 25.8 29.6 36.1 56.4 24.8 35-44 44.4 57.7 56.9 22.8 44.3 56.4 54.3 23.0 45-54 51.6 70.2 59.0 16.2 46.5 76.4 58.0 17.9 55-64 36.8 61.4 59.2 13.2 39.1 62.3 58.0 12.5 65-74 22.1 35.9 54.0 12.6 22.3 43.3 50.0 12.0 75 or more 17.0 28.9 49.4 9.4 18.5 30.7 51.7 9.8 Education of head No high school diploma 15.2 21.6 38.1 20.4 16.8 24.2 42.8 18.5 High school diploma 29.5 37.2 56.8 30.0 30.1 40.4 50.6 31.7 Some college 34.3 45.8 59.5 17.8 35.5 46.9 54.1 19.0 College degree 55.8 81.1 68.1 31.9 52.9 82.5 68.2 30.7 Race or ethnicity of respondent White non-Hispanic 38.1 54.7 61.1 75.3 38.2 56.7 59.1 77.6 Nonwhite or Hispanic 22.8 33.7 44.9 24.7 23.0 33.8 41.7 22.4 Current work status of head Working for someone else 42.6 54.2 63.2 54.8 42.6 55.9 60.4 58.3 Self-employed ......, 55.5 94.3 59.4 10.9 43.8 92.5 63.4 10.3 Retired 18.8 28.4 48.2 26.0 19.4 32.3 46.1 25.0 Other not working 14.0 25.9 41.3 8.3 13.0 21.5 30.6 6.5 Region Northeast 41.1 57.3 57.5 20.2 35.5 56.9 52.6 19.8 North Central 35.8 51.0 61.3 24.4 36.2 52.6 59.2 23.9 South 29.2 42.1 54.2 34.6 32.8 47.7 54.6 35.1 West 32.7 52.5 56.4 20.9 36.7 51.8 54.0 21.2 Housing status Owner 43.1 60.6 63.2 63.9 43.8 63.9 61.3 64.7 Renter or other 21.2 29.8 46.2 36.1 21.3 29.0 44.0 35.3 Percentile of net worth Less than 25 16.1 21.5 37.4 25.0 16.7 21.5 35.8 25.0 25-49.9 30.2 34.2 52.4 25.0 33.1 36.2 51.4 25.0 50-74.9 40.6 45.1 63.5 25.0 41.0 47.1 59.5 25.0 75-89.9 53.2 62.9 70.8 15.0 49.4 61.1 68.6 15.0 90-100 100.1 148.8 81.0 10.0 93.0 162.2 82.4 10.0 Across education groups, median and mean did rise for both groups in the most recent three-year incomes rose most strongly for families headed by period, it rose much faster for the white non-Hispanic persons with a college degree; median income for group (19.3 percent) than for the nonwhite or Histhis group rose 13.4 percent, and the mean rose panic group (11.2 percent). 25.1 percent. Median income also rose for other Although median income for nonwhite or Hispanic education groups except for families headed by per- families was essentially static from 1998 to 2001, the sons without a high school diploma or its equivalent, median income for African American families a group that had seen little change in income since increased 20.3 percent in that period, from $21,200 to 1992; among these education groups, mean income $25,500 (data not shown in tables).5 The mean for rose most notably for the group with at least some college education. 5. CPS data for the same period show substantial but smaller growth in the median. The SCF data show a small decline in the Between 1998 and 2001, the median income of median income of families with respondents who chose to identify nonwhite or Hispanic families was about unchanged, themselves as Hispanic; this classification in the survey is not, as while the median rose 10.0 percent for white non- noted earlier, comparable to that used in the CPS. Median incomes of other minorities showed larger declines in the SCF, but the sample Hispanic families; the two growth rates had been sizes of these groups are so small that none of these differences is Digitized for FRAclSoEsRer over the 1992-98 period. Although the mean statistically significant. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 5 1.—Continued Thousands of 2001 dollars except as noted 1998 2001 FFaammiillyy Percentage Percentage cchhaarraacctteerriissttiicc of Percentage of Percentage Median Mean of Median Mean of families families families families who saved who saved All families 36.4 57.9 55.9 100.0 39.9 68.0 59.2 100.0 (.9) (1.2) (.8) (1.8) Percentile of income Less than 20 9.0 8.6 32.1 20.0 10.3 10.0 30.0 20.0 20-39.9 22.1 22.0 45.5 20.0 24.4 24.1 53.4 20.0 40-59.9 36.4 37.0 56.1 20.0 39.9 40.3 61.3 20.0 60-79.9 58.0 59.1 67.9 20.0 64.8 65.2 72.0 20.0 80-89.9 86.0 86.6 73.7 10.0 98.7 98.0 74.9 10.0 90-100 142.2 239.0 82.0 10.0 169.6 302.7 84.3 10.0 Age of head (years) L35es-4s t4ha n 35 29.8 39.3 53.0 23.3 33.4 44.2 52.9 22.7 45.8 65.3 57.3 23.3 51.4 77.1 62.3 22.3 45-54 55.2 76.0 57.8 19.2 54.5 93.2 61.7 20.6 55-64 41.9 78.1 61.1 12.8 45.2 86.9 62.0 13.2 65-74 26.5 50.9 56.3 11.2 27.8 58.1 61.8 10.7 75 or more 18.2 31.8 48.6 10.2 22.4 36.7 55.5 10.4 Education of head No high school diploma 16.9 23.6 39.5 16.5 17.0 25.1 38.7 16.0 High school diploma 31.8 40.3 53.7 31.9 33.9 44.8 56.7 31.7 Some college 38.6 55.3 56.7 18.5 40.9 55.5 61.7 18.3 College degree 59.8 93.2 65.6 33.2 67.8 116.6 70.0 34.0 Race or ethnicity of respondent White non-Hispanic 41.1 64.1 59.8 77.7 45.2 76.5 62.9 76.2 Nonwhite or Hispanic 25.4 36.5 42.1 22.3 25.7 40.6 47.5 23.8 Current work status of head Working for someone else 44.2 58.3 59.8 59.2 47.3 67.3 61.6 60.9 Self-employed 57.4 119.1 61.1 11.3 63.3 138.3 70.4 11.7 Retired 21.0 35.9 48.6 24.4 21.0 40.0 50.5 22.9 Other not working 12.7 23.9 33.7 5.1 16.7 36.4 42.7 4.5 Region Northeast 38.6 66.4 53.5 19.3 41.3 77.7 58.1 19.0 North Central 35.8 53.3 58.3 23.6 43.9 64.7 63.0 23.0 South 34.4 53.8 55.0 35.7 36.0 61.4 57.3 36.2 West 39.4 62.1 56.9 21.3 40.7 74.0 59.5 21.8 Housing status Owner 47.6 72.6 62.2 66.2 52.1 85.1 66.7 67.7 Renter or other 22.1 29.1 43.4 33.8 24.7 32.2 43.6 32.3 Percentile of net worth Less than 25 17.3 22.1 36.3 25.0 19.7 24.0 34.5 25.0 25-49.9 33.1 36.9 50.2 25.0 34.9 39.7 54.3 25.0 50-74.9 44.2 51.0 61.8 25.0 50.9 58.4 68.0 25.0 75-89.9 61.8 73.6 71.9 15.0 70.0 78.8 77.7 15.0 90-100 96.2 193.7 80.0 10.0 128.5 256.4 83.9 10.0 NOTE. For questions on income, respondents were asked to base their index for all urban consumers (see text box "The Data Used in This Article"). answers on the calendar year preceding the interview. For questions on sav- See the appendix for details on standard errors (shown in parentheses below the ing, respondents were asked to base their answers on the year (that is, not first row of data for the medians and means here and in table 3) and for definispecifically the calendar year) preceding the interview. tions of family and family head. Percentage distributions may not sum to 100 because of rounding. Dollars have been converted to 2001 values with the current-methods consumer price African American families rose 20.4 percent, from ers who were not self-employed rose slightly. Mean $31,400 to $37,800. income rose for all work-status groups between 1998 By work status, median income grew fastest and 2001, but over the 1992-2001 period it rose most between 1998 and 2001 for the self-employed for the self-employed group (46.7 percent). (10.3 percent) and "other not working" (31.5 per- Over the 1998 to 2001 period, median income rose cent).6 Although the latter group showed a large fastest in the North Central region. Growth in the percentage increase, it continued to have the lowest mean was similar in all regions except the South, median income of all the work-status groups. The where it lagged slightly. Over the same period, the median income of the retired group was unchanged, median and mean incomes of homeowners continued while the median income of families headed by work- to pull away from the lower levels of other families. By net worth group, median and mean incomes grew 6. The "other not working" group consists of family heads who for all over this period, but they rose most rapidly for are unemployed and those who are out of the labor force but who are Digitized fonro tF rRetAirSedE Ror over age 65. the top decile of the distribution. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Federal Reserve Bulletin • January 2003 Family Saving 2. Reasons respondents gave as most important for their families' saving, distributed by type of reason, 1992, 1995, 1998, and 2001 surveys Because saving out of current income is an impor- Percent tant determinant of family net worth, the SCF asks respondents whether, over the preceding year, family Reason 1992 1995 1998 2001 spending was less than, more than, or about equal to, 11.0 Education 9.1 10.8 10.9 its income. Though only qualitative, the answers are For the family 2.6 2.7 4.1 5.1 a useful indicator of whether families are saving. Buying own home 4.0 5.1 4.4 4.2 9.7 12.8 9.7 9.5 Asking instead for a specific dollar amount would Retirement 19.4 23.7 33.0 32.1 33.9 33.0 29.8 31.2 require much more time from respondents and would Investments 7.6 4.2 2.0 1.0 No particular reason 1.7 .8 1.3 1.1 likely lower the rate of response to the survey. When asked for a reason, wBm Overall, the proportion of families who reported reported do not save 12.0 6.8 4.9 4.9 Total 100 100 100 100 that they saved in the preceding year rose 3.3 percent- NOTE. See note to table 1. age points, to 59.2 percent, the highest level since 1992, the year this measure was first recorded. The most common response—declined slightly in 2001 proportion of families that saved rose in all income after having increased consistently between 1992 and groups except the bottom quintile, in all age groups 1998. In contrast, the fraction reporting liquidityexcept the youngest, in all education groups except related reasons—the second most common the lowest, in all work-status groups (but particularly response—increased in 2001.8 The proportion of so in the self-employed group), in all regions, and in families reporting education-related reasons held all wealth groups except the bottom quartile. steady. Reported saving for investments continued to In contrast, estimates of the rate of saving by decline. households as measured in the national income and product accounts (NIPA) were lower in 2001 than in the preceding three years, both in levels and as a percent of disposable income. However, the SCF and NET WORTH NIPA concepts of saving differ in some important From 1998 to 2001, net worth (wealth)—the differways. First, the underlying SCF question asks only ence between families' gross assets and their whether family spending has been less, more, or liabilities—rose strongly (table 3). Median wealth about the same as its income over the past year. Thus, rose 10.4 percent from 1998 to 2001 and 40.5 percent the amounts by which a family's expenditures diffrom 1992 to 2001. The mean rose 28.7 percent in the fered from its income might have changed appreshorter period and 71.6 percent in the longer period. ciably but without necessarily altering the family's By age group, median and mean net worth show a answer. "hump" pattern that generally peaks in the 55-64 Second, the NIPA measure of saving relies on age group. This pattern reflects both life-cycle saving definitions of income and consumption that may not behavior and the lower expected total lifetime earnbe the same as those that respondents had in mind ings of progressively older age groups. The median when answering the survey questions. For example, and mean values of wealth rise in tandem with the NIPA measure of personal income includes payincome groups, a relationship reflecting both income ments employers make to their employees' definedearned from assets and a higher likelihood of saving benefit pension plans but not the payments made among higher-income families. Wealth and income from such plans to families, whereas the SCF meashow similarly strong differentials across groups sure includes only the latter. The SCF measure also defined in terms of education, racial and ethnic backincludes realized capital gains, whereas the NIPA ground, occupation, and housing tenure (own or rent). measure excludes capital gains of all forms, realized and unrealized. The SCF also collects information on families' most important motivations for saving (table 2).7 Sensitivity of Estimates to the Value of Equities Several patterns appear in the data. The fraction of Adjusting for the changes in the market valuation families reporting retirement-related reasons—the of assets—particularly corporate equities—that came 7. Although families were asked to report their motives for saving regardless of whether they were currently saving, some families reported only that they do not save. The analysis here is confined 8. Liquidity-related reasons include "emergencies," the possibilito the first reason reported by families. ties of unemployment and health care costs, and having ready money. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 7 after the survey would considerably alter the esti- at the date of each interview to a value as of Octomates of net worth discussed here. Although one ber 4, 2002 (a 29.4 percent reduction from the same cannot know what the survey families did and experi- date in 2001). The adjustment reduces estimated enced after the interview, one can examine the sensi- median net worth to $80,700—a 6.3 percent decline tivity of the wealth estimates..We make the following relative to the value measured in the survey. The assumptions to estimate a value of net worth for the mean falls to $341,300—a 13.7 percent decline. survey families that reflects the subsequent decline Notably, even these adjusted values are above their in equity prices: The values of closely held busi- 1998 levels. Because a disproportionate share of nesses behave like equity prices, all equities and equities and other business assets is held by relabusiness assets change in value like an average port- tively wealthy families, the adjustment affects them folio of equities, no systematic portfolio rearrange- disproportionately; relative to the measured values, ments occurred since the time of the survey, and wealth would fall 14.8 percent at the 95th perother assets held about steady in real terms. centile of the distribution of wealth, 11.9 percent We use the Wilshire 5000 index to adjust the at the 90th percentile, and 7.8 percent at the values of equities and businesses from those reported 75th percentile. 3. Family net worth, by selected characteristics of families, 1992, 1995, 1998, and 2001 surveys Thousands of 2001 dollars 1992 1995 1998 2001 FFaammiillyy cchhaarraacctteerriissttiicc MMeeddiiaann Mean Median Mean MMeeddiiaann MMeeaann MMeeddiiaann Mean All families 61.3 230.5 66.4 244.8 78.0 307.4 86.1 395.5 (3.1) (6.8) (2.2) (6.0) (3.0) (10.5) (2.8) (7.7) Percentile of income Less than 20 4.9 40.7 6.9 51.3 6.3 52.0 7.9 52.6 20-39.9 34.4 79.4 38.7 91.3 36.1 104.7 37.2 114.3 40-59.9 48.9 124.7 53.6 118.3 58.1 137.6 62.5 160.9 60-79.9 93.2 174.0 87.8 186.4 122.2 223.4 141.5 292.1 80-89.9 142.5 278.9 148.1 297.4 205.2 354.0 263.1 456.5 90-100 450.0 1,188.0 410.2 1,255.9 492.4 1,684.0 833.6 2,258.2 Age of head (years) Less than 35 11.4 56.2 13.9 49.9 9.9 69.5 11.6 90.7 35-44 55.1 164.8 60.3 165.9 69.0 213.6 77.6 259.5 45-54 96.8 331.7 107.5 342.4 114.8 394.1 132.0 485.6 55-64 141.1 418.0 133.2 442.3 139.2 579.3 181.5 727.0 65-74 121.7 354.6 128.0 402.9 159.5 507.9 176.3 673.8 75 or more 107.5 264.0 107.5 298.5 136.7 338.3 151.4 465.9 Education of head No high school diploma 23.1 86.7 26.2 97.3 23.0 85.9 25.5 103.0 High school diploma 47.6 138.1 60.0 153.6 58.8 171.7 58.1 180.7 Some college 71.4 211.6 54.1 218.1 80.4 258.6 71.6 284.7 College degree 121.5 420.0 120.7 444.6 159.3 574.6 213.3 793.7 Race or ethnicity of respondent M SM White non-Hispanic 86.2 274.8 88.5 289.8 103.4 363.9 120.9 482.9 Nonwhite or Hispanic 14.8 95.8 18.3 89.1 17.9 109.9 17.1 115.3 Current work status of head Working for someone else 48.5 151.1 56.6 158.1 57.5 182.9 65.0 225.3 Self-employed 178.5 741.7 180.1 809.9 270.4 1,005.0 352.3 1,257.9 Retired 87.5 231.6 93.8 260.6 123.0 334.7 113.7 450.1 Other not working 4.9 77.2 4.3 67.0 3.9 81.9 9.0 179.2 Region Northeast 79.3 260.2 95.8 289.9 102.7 329.8 92.3 450.4 North Central 70.5 214.1 75.8 229.7 87.4 270.8 104.5 339.4 South 42.7 173.9 50.9 215.4 66.7 290.7 73.8 375.7 West 88.2 314.8 63.3 268.5 66.1 355.5 87.6 439.8 Housing status Owner 122.3 333.7 120.2 350.8 143.8 439.9 171.7 558.1 Renter or other 4.0 47.8 5.6 50.5 4.6 47.3 4.8 55.0 Percentile of net worth Less than 25 .6 -1.1 1.1 -.2 .5 -2.0 1.1 .0 25-49.9 29.0 31.3 32.6 35.3 35.6 39.1 40.8 44.1 50-74.9 108.4 111.9 109.8 115.1 131.1 139.9 156.1 165.7 75-89.9 252.1 269.8 255.7 275.7 335.8 349.8 430.2 449.4 90-100 822.6 1,544.6 785.6 1,658.6 975.6 2,105.8 1,301.9 2,754.9 NOTE. See note to table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Federal Reserve Bulletin • January 2003 Net Worth by Demographic Category of their relatively lower holdings of equities, which appreciated strongly over the period. Between 1998 and 2001, the median and mean values Across occupation groups, the self-employed of net worth grew for most demographic groups. received the largest dollar gains in the wealth mea- Among wealth groups, the median net worth of the sures over the 1998-2001 period; this result also bottom quartile grew the most—120 percent—but holds over the 1992-2001 period. Over the three-year from a 1998 base of only $500. For the other wealth period, the percentage growth in these measures was groups, the median grew at progressively higher rates highest for families headed by people who were ranging from 14.6 percent for the second quartile to neither working nor retired; nonetheless, wealth for 33.4 percent for the highest decile. this group remained quite small. Net worth increased for all income groups, but The median wealth of families living in the Northparticularly so for the top decile of the income distri- east declined somewhat during the three-year period. bution, in which the median rose 69.3 percent and the At the same time, mean wealth in this region mean rose 34.1 percent. Over the 1992-2001 period, increased a bit faster than elsewhere. Over the ninemedian and mean wealth rose the most for the top year period, the largest percentage growth for the quintile; the increase in the mean in the top decile typical family was seen in the South and the North was especially large—90.1 percent. Central regions. Among age groups between 1998 and 2001, By housing tenure, the growth of median and mean median wealth rose the most—30.4 percent—for the net worth was fastest for homeowners in both the 55-64 group, which had experienced slower growth three-year and nine-year periods. These differences between 1992 and 1998 than the other age groups. largely reflect higher incomes of homeowners and Over the 1992-2001 period, median wealth grew generally rising real estate prices. the most—more than 40 percent—for the two oldest groups; the increase in the mean for these groups was also the largest during both the post-1992 and post- ASSETS 1998 periods. Across education groups, median net worth rose After having risen 9.1 percentage points over the six only for families headed by persons with less than a years from 1992 to 1998, the share of financial assets high school diploma or equivalent (10.9 percent) and in families' total assets rose 1.3 percentage points in for those headed by a person with a college degree the three years between 1998 and 2001 (table 4); the (33.9 percent). Mean wealth rose for all education slowdown reflects complex changes in ownership groups, but it rose notably—38.1 percent—only for and holdings of more specific types of financial assets the highest education group, which also gained dis- (table 5)—particularly the growth in assets backed proportionately during the 1992-2001 period. by publicly traded equities (table 6). By definition, The growth in net worth among nonwhite and the rise in the share of financial assets in total assets Hispanic families was markedly slower than that of is exactly offset by the decline in the share of nonother families in the 1998-2001 period. The median financial assets (tables 7 and 8). net worth of nonwhite and Hispanic families declined The percent of families having any type of asset slightly, and the mean rose 4.9 percent; in contrast, in 2001, 96.7 percent, was virtually unchanged from the median net worth of other families rose 16.9 per- 1998 (table 8); this leveling off follows a period of cent and the mean rose 32.7 percent. The subgroup of growth since at least 1992. Between 1998 and 2001, African Americans families did better than the over- the median holding of those with assets increased all minority group in the three-year period: Their 9.8 percent, about the same rate of growth seen since median net worth rose 13.1 percent, from $16,800 to 1992. Across most of the demographic groups shown $19,000; the mean rose 8.3 percent, from $69,500 to in table 8, percentage ownership of any type of asset $75,700 (not shown in tables). was steady at or near 100 percent but declined by The differences between all minority families and more than 1 percentage point for the families with other families are even more striking for the 1992— incomes in the lowest 20 percent of the distribution, 2001 period: The median wealth of nonwhite and those headed by persons younger than 35 or between Hispanic families rose 15.5 percent and the mean the ages of 65 and 74, and those headed by persons rose 20.4 percent, while the median for other families who were neither retired nor working. The median increased 40.3 percent and the mean rose 75.7 per- holding of assets among families having any assets cent. Some of the slower growth among nonwhite rose for nearly every group; exceptions were small and Hispanic families appears to be a consequence declines for families with incomes in the 40th to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 9 60th percentiles of the distribution of income and money market mutual funds, and call accounts at households headed by retired persons. brokerages. This ownership rate is only Vi percentage point higher than in the preceding survey, but it is 4.0 percentage points higher than the level in 1992. Financial Assets Families that did not have transaction accounts in 2001 were disproportionately likely to have low After showing declines in earlier surveys, the share incomes, to be younger than 35, to be nonwhite or of transaction accounts in total assets held about Hispanic, to be headed by a person who was neither steady between 1998 and 2001 (table 4). The share working nor retired, to be a renter, and to have of another important type of deposit, certificates of relatively low levels of wealth (see box "Families deposit, continued its longer-term pattern of decline. without a Checking Account"); however, the rate of The shares of formal retirement accounts and of ownership rose at least slightly for all of these groups "other managed assets" both increased notably from between 1998 and 2001. 1998 to 2001. Median holdings of transaction accounts rose Overall ownership of any financial asset rose only 21.2 percent from 1998 to 2001. Across the demoslightly from 1998 to 2001 after showing steady graphic groups shown, median holdings rose or increases in the past several surveys (table 5). The were unchanged for almost every group. The rate median holding increased 14.3 percent between the of increase was particularly pronounced for families two most recent surveys, only a small part of the headed by persons aged 55-74 and families in the 97.2 percent increase since 1992. Across demo- highest income and wealth groups. graphic groups, there were marked changes in owner- Certificates of deposit (CDs), interest-bearing ship only for a few groups; ownership declined at deposits with a set term, are traditionally viewed as least 1 percentage point for families headed by per- a low-risk saving vehicle, one often used by people sons aged 65 to 74 and families headed by retired who desire a safe haven from the volatility of finanpersons. Median holdings of financial assets went up cial markets. The fraction of families owning CDs or were unchanged for most groups; the only notable continued the slow increase observed since 1995; decline was among households headed by retired it edged up to 15.7 percent in 2001. Ownership rose persons. most notably for families with incomes in the top decile of the distribution and for families headed by self-employed persons; ownership declined nota- Transaction Accounts and Certificates of Deposit bly for the pre-retirement, 55-64 age group. The overall median value of CD holdings fell 8.0 per- In 2001, 90.9 percent of families had some type of cent over the 1998-2001 period, and the decline transaction account—a category comprising check- was shared by most demographic groups; notable ing, savings, and money market deposit accounts, exceptions were the top decile of the income distribution, families headed by persons younger than 35, nonwhite or Hispanic families, and families headed by persons who were neither working nor Value of financial assets of all families, distributed retired. by type of asset, 1992, 1995, 1998, and 2001 surveys Percent Savings Bonds and Other Bonds Transaction accounts 11.4 11.5 Certificates of deposit 1 4.3 3.1 Savings bonds are owned disproportionately by fami- Savings bonds Bonds fflmf. 43 46 lies headed by persons between 35 and 64 years of Stocks 22.7 21.6 age, by families with incomes in the highest 40 per- Mutual funds (excluding money market funds) . cent of the distribution, and by families in the top half Retirement accounts of the distribution of net worth. From 1998 to 2001, Cash value of life insurance Other managed assets the overall share of families owning savings bonds Other Total declined 2.6 percentage points, to 16.7 percent; from 1992 to 2001, it declined 5.6 percentage points. The MEMO Financial assets as a median holding fell slightly over the three-year share of total assets period, to $1,000, and that decline was shared by NOTE. For this and following tables, see text for definition of asset most groups. categories. Also see note to table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Federal Reserve Bulletin • January 2003 Families without a Checking Account Between 1998 and 2001, the proportion of families with When attention is further restricted to families that once any type of transaction account rose xh percentage point had a checking account (not shown in tables), some substan- (table 5), and the share without a checking account fell tively different patterns emerge. The proportion of such the same amount, from 13.2 percent to 12.7 percent (not families reporting that they do not like banks declined to shown in tables). The decline in the fraction of families 18.2 percent in 2001. This decline is offset by an increase in without a checking account follows a longer trend; in the proportion reporting that they could not manage a 1992, 16.6 percent of families lacked such an account.1 checking account and an increase in the proportion giving Among families without a checking account in 2001, more strictly "economic" reasons—12.8 percent said that 50.4 percent had held such an account in the past. Among service charges were too high, and 6.3 percent said that they families without a checking account, 59.3 percent had had some sort of credit problem. incomes in the lowest 20 percent of that distribution, 55.8 percent were headed by persons younger than 45, and 57.4 percent were nonwhite or Hispanic. The SCF asked all families that did not have a checking account to give a reason for not having an account Distribution of reasons cited by respondents for their (table). The most commonly reported reason—given by families' not having a checking account, by reason, 1992, 1995, 1998, and 2001 surveys 28.6 percent of families—was that the family did not write enough checks to make account ownership worth- Percent while. Another 14.0 percent said that they did not have Reason 1992 1995 1998 2001 enough money to make account ownership worthwhile. And 22.6 percent said that they did not like dealing with Do not write enough checks to make it worthwhile 30.4 25.3 28.4 28.6 banks; this response showed the largest increase since Minimum balance is too high ... 8.7 8.8 8.6 6.5 1998—4.1 percentage points. Do not like dealing with banks .. 15.3 18.6 18.5 22.6 Service charges are too high 11.3 8.4 11.0 10.2 Cannot manage or balance a checking account 6.5 8.0 7.2 6.6 1. For the definition of transaction account, see the main text. For a No bank has convenient hours discussion of the ways that lower-income families obtain checking and or location .8 1.2 1.2 .4 credit services and the effects that developments in electronic transactions Do not have enough money 21.2 20.0 12.9 14.0 may have on such families, see Jeanne M. Hogarth and Kevin H. Credit problems .7 1.4 2.7 3.6 O'Donnell, "Banking Relationships of Lower-Income Families and the Do not need/want an account ... 3.2 4.9 6.3 5.3 Other 1.9 3.5 3.1 2.1 Governmental Trend toward Electronic Payments," Federal Reserve Bul- 100 100 100 100 letin, vol. 85 (July 1999), pp. 459-73. Other types of bonds were held by only 3.0 percent Publicly Traded Stock of families over the three-year period.9 As measured in the survey, the ownership rate had been declining The direct ownership of publicly traded stocks is steadily before then—it was 5.7 percent in 1989. more widespread than the direct ownership of bonds, Ownership is notably more likely among families in but it is also concentrated among high-income and the highest income and wealth groups. The median high-wealth families. The fraction of families with value of holdings fell 10.9 percent over the three-year such stock holdings has been rising since 1995; it period. But a steady rise in the mean (not shown in rose 2.1 percentage points over the most recent threetables) in the 1989-98 period of declining ownership year period, to 21.3 percent. Ownership went up for rates suggests that these bonds remain an important almost every group; exceptions were families with part of the financial assets of some relatively wealthy incomes in the 40th to 60th percentiles of the distribufamilies. tion and families headed by persons aged 45 to 54 or 65 to 74. Increases in ownership were most notable for families at the top of the income and wealth distributions, and they were spread roughly equally over racial and ethnic groups. Despite the decline of major stock price indexes in 9. Other bonds as reported in the survey are held directly and 2001 to about the levels of 1998, the median value of include corporate and mortgage-backed bonds; federal, state, and stock holdings increased 5.3 percent over that threelocal government bonds; and foreign bonds. In the survey, financial year period. Across demographic groups, the changes assets held indirectly are those held in mutual funds, in retirement accounts, and in other managed assets. in medians were mixed. However, the median Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 11 increased notably for families headed by persons ship is also more likely among families headed by aged 55 and older and for families with net worth in persons less than 65 years of age. The older group is the highest 10 percent of the distribution. The median less likely to have such accounts for several reasons. increased substantially among families living in the First, even though retirement accounts have been in Northeast (not shown in tables); the median grew existence for about twenty years, they may not have more slowly or declined in other areas. become common until relatively late in the careers of people in the group. Second, once a person reaches age 59V2, funds in retirement accounts may be with- Mutual Funds drawn without penalty, and some in the group may have done so. Third, families may have used funds The pattern of ownership of mutual funds (which, in from retirement accounts accumulated from previous this article, are those held directly and exclude money employment to purchase an annuity at retirement; market funds) is very similar to that of stocks. In a annuities are treated in this article as a separate type continuation of earlier trends, the fraction of families of managed asset. owning mutual funds rose 1.2 percentage points over From 1998 to 2001, the fraction of families with the 1998-2001 period, to 17.7 percent. Over this retirement accounts rose 3.3 percentage points, to period, the percent of families with stock funds and 52.2 percent. In 2001, 20.9 percent had only an taxable funds of government-backed bonds rose, employer-provided account of the types included while the ownership of tax-exempt bond funds, other here, 18.4 percent had only an IRA or Keogh account, bond funds, and combination funds fell. The rise in and 12.9 percent had both (not shown in tables). ownership of mutual funds of any type was spread Among these three groups, growth was slowest for across all income groups, but it was particularly steep the first group. Ownership of any type of retirement in the highest decile. The patterns were somewhat account was up in almost every demographic group. mixed across other groups; the increases were large The median holding of tax-deferred retirement for families headed by persons aged 55 and older. assets rose 11.1 percent over the recent three-year The rate of ownership rose for white non-Hispanic period; although this rate is notably lower than the families, and it fell for other families. nearly 33 percent rate of growth registered between Between 1998 and 2001, the median value of 1995 and 1998, it is more in line with earlier trends. mutual fund holdings for families with such funds In the 1998 to 2001 period, growth in the median grew 28.7 percent, a somewhat faster pace than that was particularly marked for families with incomes in over the preceding two surveys. The most notable the highest 40 percent of the distribution and famiincreases were for families with incomes in the high- lies with net worth in the highest quarter of that est decile, families headed by self-employed workers, distribution. homeowners, and families with wealth in the lowest Families may accumulate a variety of assets and quartile or the highest decile. Median holdings also income entitlements to support their retirement. As grew substantially for nonwhite or Hispanic families noted earlier, the most common set of reasons survey but from a much lower base than was the case for respondents gave for saving was retirement related. other families. Thus, many of the assets described under categories other than retirement accounts are likely to be an important part of the retirement saving plan for Retirement Accounts families. At least two common types of retirement plan Ownership of tax-deferred retirement accounts are not included in the assets described in this secincreases with both income and net worth.10 Ownertion: social security (the federally funded Old-Age and Survivors' Insurance program, or OASI) and 10. The tax-deferred retirement accounts consist of IRAs, Keogh employer-sponsored defined-benefit plans. OASI is accounts, and certain employer-sponsored accounts. Employerwell described elsewhere, and it covers the great sponsored accounts include 401(k), 403(b), and thrift saving accounts majority of the population.11 The retirement income from current or past jobs; other current job plans from which loans or withdrawals can be made; and accounts from past jobs from which provided by defined-benefit plans is typically based the family expects to receive the account balance in the future. This definition of employer-sponsored plans is intended to confine the analysis to amounts that are portable across jobs and to which families practice, individuals' choices for investment are often restricted to a will ultimately have full access. narrower set offered by their employers. IRAs and Keoghs may be invested in virtually any asset, including 11. For a detailed description of OASI, see Social Security Adminstocks, bonds, mutual funds, options, and real estate. In principle, istration, "Online Social Security Handbook," Publication 65-008, employer-sponsored plans may be similarly broadly invested; in www.ssa.gov/OP_Home/handbook/ssa-hbk.htm. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Federal Reserve Bulletin • January 2003 5. Family holdings of financial assets, by selected characteristics of families and type of asset, 1998 and 2001 surveys A. 1998 Survey of Consumer Finances Trans- Certifi- Retire- Other Any Family Savings Mutual Life action cates of Bonds Stocks ment managed Other financial characteristic bonds funds insurance accounts deposit accounts assets asset Percentage of families holding asset All families 90.5 15.3 19.3 3.0 19.2 16.5 48.9 29.6 5.9 9.4 92.9 Percentile of income Less than 20 68.5 12.1 4.9 * 3.7 3.2 9.4 16.6 3.0 8.3 75.6 20-39.9 90.3 15.6 12.2 * 9.7 8.7 30.9 22.2 4.5 8.0 93.0 40-59.9 95.1 15.4 19.6 2.7 17.9 13.8 53.5 27.7 4.0 10.5 97.1 60-79.9 98.8 15.2 25.8 2.9 21.5 20.2 69.2 34.7 7.1 9.9 99.1 80-89.9 99.6 17.9 35.4 3.2 32.7 28.8 75.3 44.3 7.2 8.7 99.8 90-100 99.7 18.5 32.9 10.8 53.6 44.3 87.5 49.0 14.9 11.5 100.0 Age of head (years) Less than 35 84.6 6.2 17.2 1.0 13.1 12.2 39.8 18.0 1.9 10.1 88.6 35-44 90.5 9.4 24.9 1.5 18.9 16.0 59.6 29.0 3.9 11.8 93.3 45-54 93.5 11.8 21.8 2.8 22.6 23.0 59.2 32.9 6.5 9.1 94.9 55-64 93.9 18.6 18.1 3.5 25.0 15.2 58.4 35.8 6.5 8.4 95.6 65-74 94.1 29.9 16.1 7.2 21.1 18.0 46.1 39.1 11.8 7.3 95.6 75 or more 89.7 35.9 12.0 5.9 18.0 15.1 16.7 32.6 11.6 6.4 92.1 Race or ethnicity of respondent White non-Hispanic 94.7 17.9 22.2 3.7 22.1 18.8 53.7 32.1 7.1 9.7 96.3 Nonwhite or Hispanic 75.8 6.4 9.2 .4 9.1 8.4 32.1 20.8 1.7 8.3 81.2 Current work status of head Working for someone else 92.7 11.1 21.8 1.9 19.5 16.6 58.9 27.5 4.2 9.4 94.8 Self-employed 95.4 11.7 20.2 5.4 26.5 24.8 53.5 39.5 8.7 14.1 96.9 Retired 87.2 28.8 14.4 5.1 17.1 14.8 28.8 32.4 9.9 6.8 90.3 Other not working 69.1 7.6 11.8 * 8.8 4.8 17.5 17.6 * 10.9 75.2 Housing status Owner 96.2 18.9 23.3 3.8 24.9 21.0 58.4 36.9 7.7 8.7 97.5 Renter or other 79.2 8.3 11.5 1.3 8.0 7.5 30.2 15.2 2.4 10.8 84.1 Percentile of net worth Less than 25 72.1 3.0 7.0 * 3.2 2.1 18.5 10.7 * 7.9 78.0 25-49.9 91.4 9.8 16.3 * 9.4 8.7 44.3 23.8 2.4 10.0 94.8 50-74.9 98.5 19.6 24.1 2.2 18.8 15.3 56.4 35.6 5.9 8.2 99.1 75-89.9 99.7 30.2 27.8 3.4 36.4 35.5 72.0 45.5 10.2 10.2 99.9 90-100 100.0 26.8 33.2 16.9 58.7 46.4 83.0 52.2 22.1 13.1 100.0 Median value of holdings for families holding asset (thousands of 2001 dollars) All families 3.3 16.3 1.1 48.8 19.0 27.2 26.1 7.9 34.3 3.3 24.5 Percentile of income Less than 20 .8 10.9 1.4 * 16.3 21.8 6.5 4.4 17.4 .7 2.0 20-39.9 1.6 21.8 1.1 * 10.9 27.2 9.8 5.4 27.8 1.4 7.1 40-59.9 2.5 15.2 .5 23.0 8.2 10.9 13.1 4.6 25.5 2.7 17.6 60-79.9 4.7 15.8 .8 20.6 16.3 19.6 22.9 8.2 32.9 5.4 39.8 80-89.9 8.2 17.4 1.5 20.7 19.6 21.8 47.1 10.9 27.2 6.2 87.6 90-100 19.6 21.8 I.I 117.6 54.4 65.3 98.0 19.6 98.0 27.2 241.1 Age of head (years) Less than 35 1.6 2.7 .5 3.3 5.4 7.6 7.6 2.9 21.2 1.1 5.0 35-14 3.1 8.7 .8 60.2 13.1 15.2 22.3 9.3 27.2 2.7 24.9 45-54 4.9 12.5 1.1 34.5 26.1 32.7 37.0 10.9 42.8 6.5 41.1 55-64 4.4 18.5 1.6 108.8 22.9 63.1 50.9 10.3 70.8 10.9 49.6 65-74 6.1 21.8 2.2 56.6 54.4 65.3 41.4 9.3 45.0 6.5 49.9 75 or more 6.7 32.7 5.4 20.5 54.4 64.2 32.7 5.4 32.7 8.9 39.9 Race or ethnicity of respondent White non-Hispanic 4.0 18.5 1.1 50.1 21.8 31.6 28.3 8.2 34.8 4.4 32.7 Nonwhite or Hispanic 1.6 6.8 .8 15.4 9.8 10.9 14.2 5.4 25.1 1.1 7.1 Current work status of head Working for someone else 2.9 9.8 .7 1166..33 10.9 17.4 21.8 7.6 3322..77 2.0 2200..88 Self-employed 6.9 23.9 1.0 163.3 56.6 43.5 53.9 12.5 42.8 7.6 49.0 Retired 5.4 26.1 2.7 54.4 54.4 59.9 33.7 6.5 34.8 7.6 35.7 Other not working 1.1 10.9 .9 * 12.0 19.0 16.3 5.4 * .5 2.7 Housing status Owner 5.4 19.6 1.1 45.2 21.8 3322..77 32.7 8.7 3344..88 5.4 44.9 Renter or other 1.2 10.9 .7 54.4 8.7 13.1 8.5 5.4 25.1 l.l 3.8 Percentile of net worth Less than 25 .7 1.6 .4 * .8 1.6 2.3 1.3 * ..55 11..11 25-49.9 1.9 6.7 .5 * 3.3 6.5 9.0 5.4 10.9 2.0 11.4 50-74.9 5.2 16.3 1.1 10.9 8.7 15.2 30.5 7.6 21.8 6.5 46.8 75-89.9 11.4 27.2 2.2 27.2 28.6 38.4 64.8 10.9 25.5 7.6 157.2 90-100 25.0 47.9 2.2 108.8 92.5 116.5 136.1 21.8 130.6 21.8 500.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 13 5.—Continued B. 2001 Survey of Consumer Finances cha F ra a c m te il r y is tic a T c a c c r o a ti n u o s n n - t s c C d a e e t p e r o t s i s f o i i t - f S b a o v n in d g s s Bonds Stocks M fu u n tu d a s l a R c m c e o t e i u n r n e t - ts ins L ur if a e n ce m a O a s n t s h a e g e ts r e d Other fin a A a s n s n c e y i t a l Percentage of families holding asset All families 90.9 15.7 16.7 3.0 21.3 17.7 52.2 28.0 6.6 9.3 93.1 Percentile of income Less than 20 70.9 10.0 3.8 * 3.8 3.6 13.2 13.8 2.2 6.2 74.8 20-39.9 89.4 14.7 11.0 * 11.2 9.5 33.3 24.7 3.3 9.9 93.0 40-59.9 96.1 17.4 14.1 1.5 16.4 15.7 52.8 25.6 5.4 9.9 98.3 60-79.9 98.8 16.0 24.4 3.7 26.2 20.6 75.7 35.7 8.5 9.0 99.6 80-89.9 99.7 18.3 30.3 3.9 37.0 29.0 83.7 38.6 10.7 10.8 99.8 90-100 99.2 22.0 29.7 12.7 60.6 48.8 88.3 41.8 16.7 12.5 99.7 Age of head (years) Less than 35 86.0 6.3 12.7 * 17.4 11.5 45.1 15.0 22..11 1100..44 8899..22 35-44 90.7 9.8 22.6 2.1 21.6 17.5 61.4 27.0 3.1 9.5 93.3 45-54 92.2 15.2 21.0 2.8 22.0 20.2 63.4 31.1 6.4 8.5 94.4 55-64 93.6 14.4 14.3 6.1 26.7 21.3 59.1 35.7 13.0 10.6 94.8 65-74 93.8 29.7 11.3 3.9 20.5 19.9 44.0 36.7 11.8 8.5 94.6 75 or more 93.7 36.5 12.5 5.7 21.8 19.5 25.7 33.3 11.2 7.3 95.1 Race or ethnicity of respondent White non-Hispanic 94.9 18.5 19.4 3.8 24.5 20.9 56.9 29.8 88..22 99..22 9966..55 Nonwhite or Hispanic 78.2 6.7 7.8 .4 11.0 7.2 37.3 22.3 1.8 9.7 82.4 Current work status of head Working for someone else 92.4 11.3 19.4 2.0 20.9 17.3 61.5 27.4 5.3 9.4 94.7 Self-employed 95.2 18.7 16.6 6.1 29.8 22.9 58.9 34.6 6.9 12.4 97.4 Retired 88.9 27.0 11.4 4.5 19.7 17.3 29.1 29.1 10.4 7.9 90.8 Other not working 70.5 8.3 7.5 * 13.2 10.8 27.3 12.8 5.6 6.5 72.9 Housing status Owner 96.5 20.0 21.2 4.0 27.0 22.7 62.6 34.5 8.9 8.8 9977..77 Renter or other 79.3 6.7 7.2 .7 9.3 7.1 30.4 14.3 2.0 10.4 83.5 Percentile of net worth Less than 25 72.4 1.8 4.3 * 5.0 2.5 18.9 6.9 * 7.9 77.2 25—49.9 93.6 8.8 12.8 * 9.5 7.2 45.3 26.0 1.3 8.6 96.5 50-74.9 98.2 23.2 23.5 * 20.3 17.5 63.2 34.5 6.2 8.7 98.9 75-89.9 99.6 30.1 25.9 5.3 41.2 35.9 77.6 41.7 13.9 9.4 99.8 90-100 99.6 26.9 26.3 18.4 64.3 54.8 87.4 48.6 26.4 16.1 100.0 Median value of holdings for families holding asset (thousands of 2001 dollars) All families 4.0 15.0 1.0 43.5 20.0 35.0 29.0 10.0 70.0 4.0 28.0 Percentile of income Less than 20 .9 10.0 1.0 * 7.5 21.0 4.5 3.6 24.2 1.7 2.0 20-39.9 1.9 14.0 .6 * 10.0 24.0 8.0 6.2 36.0 3.0 8.0 40-59.9 2.9 13.0 .5 10.0 7.0 24.0 13.6 7.0 70.0 3.0 17.1 60-79.9 5.3 15.0 1.0 40.0 17.0 30.0 30.0 12.0 60.0 3.0 55.5 80-89.9 9.5 13.0 1.0 50.0 20.0 28.0 55.0 10.0 70.0 7.0 97.1 90-100 26.0 25.0 2.0 88.7 50.0 87.5 130.0 24.0 112.0 15.0 364.0 Age of head (years) Less than 35 1.8 4.0 .3 * 5.7 9.0 6.6 10.0 40.0 11..33 66..33 35-44 3.4 6.0 1.0 13.6 15.0 17.5 28.5 9.0 50.0 2.0 26.9 45-54 4.6 12.0 1.0 60.0 15.0 38.5 48.0 11.0 60.0 5.0 45.7 55-64 5.5 19.0 2.5 60.0 37.5 60.0 55.0 10.0 55.0 10.0 56.6 65-74 8.0 20.0 2.0 71.4 85.0 70.0 60.0 8.8 120.0 8.0 51.4 75 or more 7.3 25.0 3.0 35.0 60.0 70.0 46.0 7.0 100.0 17.5 40.0 Race or ethnicity of respondent White non-Hispanic 4.8 15.0 1.0 50.0 22.0 40.0 35.0 10.0 70.0 55..00 3388..55 Nonwhite or Hispanic 1.7 9.0 .7 7.6 8.0 17.5 10.0 8.1 45.0 1.7 7.2 Current work status of head Working for someone else 3.2 9.0 1.0 26.0 11.0 20.0 24.5 9.5 55.0 2.5 24.3 Self-employed 8.5 16.0 2.0 71.9 35.0 98.0 54.6 17.0 109.0 12.0 61.0 Retired 5.0 25.0 4.0 50.1 60.0 70.0 54.0 9.0 100.0 10.0 32.5 Other not working 1.9 40.0 .3 * 8.0 40.0 20.0 10.0 39.0 2.0 6.2 Housing status Owner 5.8 15.0 1.2 50.0 22.0 40.0 38.2 10.0 70.0 6.0 50.5 Renter or other 1.2 10.0 .4 29.6 6.3 10.0 6.8 7.5 40.0 2.0 3.9 Percentile of net worth Less than 25 .7 1.5 .2 * 1.3 2.0 2.0 1.8 * 1.0 1.3 25-49.9 2.2 5.0 .5 * 3.2 5.0 7.5 5.2 10.1 2.3 10.6 50-74.9 5.5 11.5 1.0 * 8.3 15.0 30.0 9.0 22.0 4.5 53.1 75-89.9 13.7 20.0 2.0 20.0 25.6 37.5 76.5 12.0 70.0 10.0 201.7 90-100 36.0 40.0 2.0 90.0 122.0 140.0 190.0 30.0 200.0 30.0 707.4 NOTE. See note to table 1. * Ten or fewer observations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Federal Reserve Bulletin • January 2003 on workers' salaries and years of work with an in the lowest 20 percent of the distribution, 46.4 peremployer, a group of employers, or a union. Unfortu- cent who were eligible declined to participate; in nately, income streams from OASI and defined- contrast, among heads of families with incomes in benefit plans cannot be translated directly into a the highest 10 percent of the distribution, only current value because valuation depends critically on 15.3 percent of eligible workers declined to particiassumptions about future events and conditions— pate. Among family heads who were eligible but work decisions, earnings, inflation rates, discount chose not to participate, 32.9 percent were covered rates, mortality, and so on—and no widely agreed- by a defined-benefit plan, a level down from 35.8 perupon standards exist for making these assumptions.12 cent in 1998. However, the SCF does contain substantial information (not shown in tables) for family heads and their working spouses or partners regarding the Cash Value Life Insurance defined-benefit and account-type plans to which families have rights; the survey also collects data on Cash value life insurance combines an investment benefits that are being received or will be received. In vehicle with insurance coverage in the form of a 2001, 57.1 percent of families had rights to some type death benefit.13 Some cash value policies offer a high of plan other than OASI through current or past work, degree of choice in the way the policy payments are a level virtually the same as in 1998. Of such families invested. Investment returns on cash value life insurin 2001, 43.5 percent had only an account-type plan, ance are typically shielded from taxation until the 35.3 percent had only a defined-benefit plan, and money is withdrawn; if the funds remain untapped 21.1 percent had both. Comparable data are not avail- until the policyholder dies, the beneficiary of the able for all types of pensions in 1998. However, when policy may receive, tax-free, the death benefit or the attention is restricted to plans offered through the cash value, whichever is greater. In contrast, term current job of the family head or that person's spouse insurance, the other popular life insurance type, offers or partner, the distribution of plan types is about the only a death benefit. One attraction of cash value same in 1998 and 2001; this result stands in contrast policies for some people is the fact that it promotes to evidence from earlier surveys that shows a continu- regular saving funded through the required policy ing shift toward account-type plans. premium. In many account-type pension plans, contributions Ownership of cash value policies is widespread, may be made by the employer, the worker, or both. In with a tendency toward higher levels among families some cases these contributions represent a substantial with higher levels of income and wealth. From 1998 amount of saving, though workers may offset this to 2001, ownership of such policies declined 1.6 persaving by reducing their saving in other forms. cent, to 28.0 percent, a movement that continues an Employer's contributions also represent additional earlier trend of falling ownership. Decreases were income for the worker. In 2001, 86.0 percent of broadly spread over demographic groups. The decline families with account-type plans on a current job had in ownership of cash value policies appears to reflect, employers who made contributions to the plan, and in part, a decline in ownership of any type of life 87.0 percent of families with such plans made contri- insurance. butions themselves. Over the three-year period, ownership of any type The eligibility of working family heads to partici- of life insurance for anyone in the family dropped pate in some type of job-related pension rose from from 72.0 percent of families to 69.3 percent (not 55.0 percent in 1998 to 57.1 percent 2001. Participa- shown in tables). Among those with policies, term tion by eligible workers is usually voluntary. In 2001, insurance has become relatively more popular, per- 26.2 percent of family heads who were eligible to haps because it offers higher levels of death benefits participate failed to do so, up from 23.2 percent in for a given premium and is widely available as an 1998. The choice to participate appears to be related employer-provided benefit; moreover, cash value strongly to income. Of heads of families with income insurance is competing with an expanding set of alternatives for investment. The median holdings of cash value insurance for 12. For one possible calculation of net worth that includes the families that had any has been rising over the 1992— annuity value of defined-benefit pension benefits and OASI payments, see Arthur B. Kennickell and Annika E. Sunden, "Pensions, Social 2001 period. It rose 26.6 percent over the most recent Security, and the Distribution of Wealth," Finance and Economics Discussion Series 1997-55 (Board of Governors of the Federal Reserve System, October 1997). Papers in this series from 1996 to 13. The survey measures the value of such policies according to date are available at www.federalreserve.gov/pubs/feds. their current cash value, not their death benefit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 15 three-year period, during which gains were spread holdings for those who had such assets rose 21.2 peracross most groups. The broad increase in typical cent, to $4,000. holdings suggests that the decline in ownership Some publicly traded companies offer stock removed families with relatively small holdings. A options to their employees as a form of compensapossible explanation of the rise in ownership and use tion.14 Although stock options, when executed, may among families in the oldest age group may be the represent an appreciable part of a family's net worth, more intensive use of such policies for estate plan- the survey does not specifically ask for the value of ning; as for the increase among the younger families, these options.15 Instead, the survey asks whether the they may regard such contractually determined sav- family head or that person's spouse or partner had ing as a convenient way to start a saving plan. been given stock options by an employer during the preceding year.16 In 2001, 11.4 percent of families reported having received stock options, a share virtu- Other Managed Assets ally the same as in 1998 (not shown in tables). Ownership of other managed assets—personal annuities and trusts with an equity interest and managed Direct and Indirect Holdings investment accounts—is concentrated among fami- of Publicly Traded Stocks lies with higher levels of income and wealth and among families headed by persons aged 55 and older. Families may hold stocks in publicly traded compa- From 1998 to 2001, overall ownership of these assets nies directly or indirectly, and information about each rose 0.7 percentage point. Among the component of these forms of ownership is collected separately assets, a small decline in ownership of annuities was in the SCF. When direct and indirect forms are comoffset by increases for trusts and managed investment bined, the data show considerable growth in stock accounts (not shown in tables). Ownership increased ownership from 1992 (table 6). In 2001, 51.9 percent markedly among families with incomes in the highest of families held stock in some form, a level 3 percent- 20 percent of the distribution and with net worth in age points above that in 1998. Ownership rates tend the top quarter of the distribution. to be highest among families with higher incomes Between 1998 and 2001, the median value of such and families headed by persons aged 35 to 64. Over managed assets more than doubled to $70,000, a the most recent three-year period, ownership rates move paralleling the increase noted earlier in the rose for almost all the groups shown. share of other managed assets in total financial assets. The median value of direct and indirect stock hold- At the same time, holdings increased for almost all ings for those who had stock rose from $27,200 in demographic groups, and some of the proportional 1998 to $34,300 in 2001, a 26.1 percent gain that was increases were large. Although these assets are not spread over most of the demographic groups. The broadly held, close examination of the data indicates median more than doubled for the groups of families that the increases are not driven by outliers; rather, headed by persons aged 65 and more. At the same the distribution of holdings appears to have simply time, the ratio of the value of all families' stocks to risen overall. In terms of the underlying components, the value of all families' financial assets rose 2.1 peroverall holdings of managed investment accounts centage points. increased more rapidly than holdings of trusts, which in turn increased more rapidly than annuities (not shown in tables). 14. See David Lebow, Louise Sheiner, Larry Slifman, and Martha Starr-McCluer, "Recent Trends in Compensation Practices," Finance Other Financial Assets and Economics Discussion Series 1999-32 (Board of Governors of the Federal Reserve System, July 1999). 15. Because such options are typically not publicly traded or their For other financial assets—a heterogeneous category execution is otherwise constrained, their value is uncertain until the including oil and gas leases, futures contracts, royal- exercise date; until then, meaningful valuation would require complex ties, proceeds from lawsuits or estates in settlement, assumptions about future movements in stock prices. 16. In theory, families in the survey might have had a good idea and loans made to others—ownership was about of the value of options they had received from their employers and unchanged in the three-year period. Ownership of included that value in their reports of miscellaneous assets. However, such assets tends to be more common among higher in the 2001 survey, only one family reported receiving options from an employer and reported options as a miscellaneous asset, and in that income and wealth groups. Changes in ownership case the two sets of options may not have been the same; no family across demographic groups were mixed, but median made such a report in the 1998 survey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Federal Reserve Bulletin • January 2003 6. Direct and indirect family holdings of stock, by selected characteristics of families, 1992, 1995, 1998, and 2001 surveys Percent except as noted Median value among families Families having stock holdings, Stock holdings as share of direct or indirect1 with holdings group's financial assets (thousands of 2001 dollars) cchhaarraacctteerriissttiicc 1992 1995 1998 2001 1992 1995 1998 2001 1992 1995 1998 2001 All families 36.7 40.4 48.9 51.9 13.0 16.9 27.2 34.3 33.7 39.9 53.9 56.0 Percentile of income Less than 20 6.5 10.0 12.4 9.9 4.3 5.4 7.0 14.3 14.2 20.4 36.9 20-39.91 24.7 30.8 33.5 4.9 7.3 10.9 7.5 16.7 26.7 29.7 34.9 40-59.9 41.5 50.2 52.1 6.2 7.2 13.1 15.0 20.5 28.4 37.9 46.4 60-79.9 54.3 69.3 75.7 10.1 14.6 20.4 28.5 27.9 35.6 45.7 51.7 80-89.9 69.7 77.9 82.0 17.3 28.9 49.0 64.6 32.3 41.3 50.4 57.4 90-100 80.0 90.4 89.6 58.8 69.3 146.5 247.7 40.5 45.4 62.5 60.4 Age of head (years) Less than 35 28.4 36.6 40.8 48.9 4.3 5.9 7.6 7.0 24.8 27.2 44.8 52.6 35-44 42.4 46.4 56.7 59.5 9.3 11.6 21.8 27.5 31.0 39.5 54.6 57.3 45-54 46.4 48.9 58.6 59.2 18.6 30.0 41.4 50.0 40.8 42.6 55.7 59.1 55-64 45.3 40.0 55.9 57.1 30.9 35.8 51.2 81.2 37.3 44.2 58.4 56.1 65-74 30.2 34.4 42.7 39.2 19.8 39.3 61.0 150.0 31.6 35.8 51.3 55.1 75 or more 25.7 27.9 29.4 34.2 30.9 23.1 65.3 120.0 25.5 39.8 48.7 51.4 Housing status Owner 45.7 48.8 59.8 62.0 16.1 20.8 37.0 50.0 34.5 40.9 55.1 56.6 Renter or other 20.9 25.0 27.5 30.7 5.7 7.4 8.1 7.0 27.1 32.4 40.5 46.3 NOTE. See note to table 1. 1. Indirect holdings are those in mutual funds, retirement accounts, and other managed assets. Nonfinancial Assets ship rate is well over 90 percent for many groups. The proportion of families with nonfinancial The value of nonfinancial assets as a proportion of the assets in 2001 was 0.8 percent higher than in 1998. value of the total assets of all families fell from By demographic group, increases in ownership were 59.3 percent in 1998 to 58.0 percent in 2001 more common than decreases, and the decreases (table 7). Primary residences retained their earlier were 1 percentage point or less. The median holdrelative importance, while equity in nonresidential ing for those with such assets rose 6.4 percent, real estate and business equity moved up in relative and the median also rose for all demographic importance. The shares of motor vehicles, other resi- groups except for families headed by retired persons. dential property, and the residual "other" category Gains were most notable for families in the highest declined. income and net worth groups, white non-Hispanic The level of ownership of any type of nonfinan- families, and families headed by self-employed percial asset in the 2001 survey is above 80 percent sons or by persons who were neither working nor for most groups—exceptions are the lowest income retired. and wealth groups, nonwhite or Hispanic families, families headed by persons who were neither working nor retired, and renters (table 8). The owner- Vehicles Vehicles continue to be the most commonly held 7. Value of nonfinancial assets of all families, distributed nonfinancial asset.17 Over the three-year period, the by type of asset, 1992, 1995, 1998, and 2001 surveys share of families that owned some type of vehicle Percent rose 2 percentage points, to 84.8 percent, a level that Type of nonfinancial asset 1992 1995 1998 2001 is still about V2 percentage point below the 1992 level. The decline since 1992 reflects, in part, a Vehicles 5.7 7.1 6.5 5.9 Primary residence 47.0 47.5 47.0 46.8 substitution of other modes of ownership (not shown Other residential property 8.5 8.0 8.5 8.1 in tables): The use of leased vehicles rose from Equity in nonresidential property 10.9 7.9 7.7 8.2 2.9 percent to 5.8 percent in the nine-year period, and Business equity 26.3 27.2 28.5 29.3 Other 1.6 2.3 1.8 1.6 the personal use of vehicles provided by employers Total 100 100 100 100 H ^ I MEMO Nonfinancial assets as a 17. The definition of vehicles here is a broad one that includes cars, share of total assets 68.4 63.3 59.3 58.0 ; vans, sport utility vehicles, trucks, motor homes, recreational vehicles, NOTE. See note to table 1. motorcycles, boats, airplanes, and helicopters. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 17 rose from 3.8 percent to 9.1 percent. The share of employed persons; by age group, ownership rises to families that had at least one vehicle for personal use a peak in the 55-to-64 group and then declines. (whether owned or not) increased to 87.8 percent in Although the median value of such property rose 2001 after holding steady near 87 percent from 1992 13.0 percent in the three-year period, changes by to 1998. demographic group show a mixed pattern of gains The median market value of vehicles for those who and losses, some of them substantial. owned at least one rose 14.4 percent from 1998 to 2001; all demographic groups shared in this gain. Underlying this increase was a nearly 50 percent Net Equity in Nonresidential Real Estate rise—from 10.6 percent to 15.2 percent—in the fraction of total vehicle value attributable to sport utility The ownership of nonresidential real estate edged vehicles, which are generally more expensive than down from 8.6 percent of families in 1998 to 8.3 perstandard automobiles (not shown in tables). cent in 2001.19 Ownership is most common among the highest income and wealth groups and among families headed by persons aged 45 to 74. Between Primary Residence 1998 and 2001, ownership went down for most and Other Residential Real Estate groups. At the same time, the overall median holding for those with such real estate increased 18.4 percent. From 1998 to 2001, the proportion of families own- Holdings rose for most income and age groups— ing a principal residence rose 1.5 percentage points, sometimes by a large amount—but by wealth group to 67.7 percent; the increase continued earlier the only notable increase was in the highest 10 pertrends.18 For 2001, the homeownership rate was cent of the distribution. below average for nonwhite or Hispanic families and family groups with relatively low incomes, headed by persons who were neither retired nor self- Net Equity in Privately Held Businesses employed, with relatively low wealth, and headed by persons aged less than 35. Increases in ownership In 2001, 11.8 percent of families owned privately during the period were widespread. However, of the held business interests, a proportion that has changed groups with below-average ownership, the ownership little since the redesign of the SCF in 1989.20 Ownerrate rose by more than the overall rate of increase ship is most common among families with higher only among the two lowest income groups and the levels of income and wealth and among families group of families headed by persons who were nei- headed by persons aged between 45 and 74. By ther working nor retired; others of these groups saw demographic group, declines in ownership from 1998 very small increases or actual declines in ownership. to 2001 were more common than increases, and even Over the three-year period, the overall median the proportion of the self-employed group that also home value rose 12.1 percent, to $ 122,000. Only two owned a business declined.21 At the same time, owngroups of homeowners saw the median value of their ership among two groups increased notably: families residences fall over the period: families with incomes with incomes in the highest 10 percent of the distribuin the second quintile of the distribution and non- tion and those with net worth in the 75th through white or Hispanic families. The small decline for 90th percentiles of the distribution. nonwhite or Hispanic families did not offset the larger-than-average gains for this group seen in the previous surveys since 1992. 19. Nonresidential real estate comprises the following types of property unless they are owned through a business: commercial prop- In 2001, 11.3 percent of families owned some form erty, rental property with five or more units, farm land, undeveloped of residential real estate besides a primary residence land, and all other types of nonresidential real estate. (second homes, time shares, one- to four-family 20. The forms of business in this category are sole proprietorships, limited partnerships, other types of partnerships, subchapter S corporental properties, and other types of residential proprations and other types of corporations that are not publicly traded, erty), down from 12.8 percent in 1998. Ownership is limited liability companies, and other types of private businesses. If much more common among the highest income and the family surveyed lived on a farm or ranch that was used at least in wealth groups and among families headed by self- part for agricultural business, the value of that part net of the corresponding share of associated debts was included with other business assets; these allocations of debts to farming and ranching businesses ] 8. This measure of principal residences comprises mobile homes represent change in definition from that used in the January 2000 and their sites, the part of farms and ranches not used for the farm- Federal Reserve Bulletin article on the 1998 SCF. ing or ranching business, condominiums, cooperatives, townhouses, 21. In the survey, self-employment status and business ownership detached single-family homes, and other permanent dwellings. are independently determined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Federal Reserve Bulletin • January 2003 Family holdings of nonfinancial assets and of any asset, by selected characteristics of families and type of asset, 1998 and 2001 surveys A. 1998 Survey of Consumer Finances Other Equity in Any Family Primary Business Any Vehicles residential nonresidential Other nonfinancial characteristic residence property property equity asset asset Percentage of families holding asset All families 82.8 66.2 12.8 8.6 11.5 8.5 89.9 96.8 Percentile of income Less than 20 58.7 38.8 1.9 2.1 3.8 2.3 68.7 87.1 20-39.9 81.9 55.3 6.8 6.1 5.7 7.4 89.5 98.1 40-59.9 89.2 67.3 11.8 7.7 9.0 8.9 95.4 99.2 60-79.9 93.0 79.1 17.0 9.5 13.9 10.5 97.3 99.8 80-89.9 92.8 88.2 17.7 14.1 18.8 9.4 98.5 100.0 90-100 90.0 93.1 35.5 21.1 31.0 17.0 99.0 100.0 Age of head (years) Less than 35 78.3 38.9 3.5 2.7 7.2 7.3 83.3 94.8 35^*4 85.8 67.1 12.2 7.5 14.7 8.8 92.1 97.6 45-54 87.5 74.4 16.2 12.2 16.2 9.2 92.9 96.7 55-64 88.7 80.3 20.4 10.4 14.3 8.5 93.8 98.2 65-74 83.4 81.5 18.4 15.3 10.1 10.3 92.0 98.5 75 or more 69.8 77.0 13.6 8.1 2.7 7.0 87.2 96.4 Race or ethnicity of respondent White non-Hispanic 87.3 71.8 14.1 9.4 13.2 10.0 93.8 98.8 Nonwhite or Hispanic 67.2 46.8 8.4 5.8 5.4 3.1 76.4 89.9 Current work status of head Working for someone else 87.6 63.5 10.6 6.7 5.5 8.8 92.4 98.2 Self-employed 89.5 81.3 25.3 17.7 63.4 13.3 98.1 99.2 Retired 73.3 72.4 14.3 10.1 3.6 6.4 85.2 94.7 Other not working 58.5 35.8 4.5 3.6 3.7 3.4 66.3 85.7 Housing status Owner 90.6 100.0 16.8 11.3 14.5 9.5 100.0 100.0 Renter or other 67.6 5.1 3.3 5.4 6.4 70.1 90.7 Percentile of net worth Less than 25 62.3 14.0 * * 1.4 2.7 65.2 87.4 25-49.9 87.4 67.3 5.8 3.6 6.4 8.0 96.0 100.0 50-74.9 90.4 89.3 11.8 7.8 10.6 8.9 99.1 100.0 75-89.9 90.8 94.0 26.2 16.8 17.9 11.4 99.2 100.0 90-100 92.0 95.1 41.7 30.5 41.4 18.8 99.6 100.0 Median value of holdings for families holding asset (thousands of 2001 dollars) All families 11.8 108.8 70.8 41.4 65.3 10.9 106.4 134.2 Percentile of income Less than 20 4.5 59.9 87.1 10.9 31.3 5.4 24.3 16.3 20-39.9 6.9 81.6 65.3 26.1 42.5 5.4 56.9 66.5 40-59.9 10.5 92.5 51.7 29.9 43.5 6.5 85.3 115.7 60-79.9 15.3 119.7 70.8 32.7 54.4 10.9 134.5 202.3 80-89.9 20.1 149.1 58.0 32.7 54.4 10.9 179.1 295.5 90-100 27.7 244.9 131.4 124.1 239.5 32.7 360.6 660.2 Age of head (years) Less than 35 9.7 91.4 46.3 27.2 37.0 5.4 24.7 31.5 35^t4 12.4 109.9 49.0 21.8 68.0 8.7 112.6 139.3 45-54 13.9 130.6 80.5 49.0 108.8 15.2 138.0 194.7 55-64 14.7 119.7 76.2 58.8 68.0 30.5 138.2 215.7 65-74 11.8 103.4 81.6 49.0 72.1 10.9 119.6 178.6 75 or more 7.6 92.5 112.1 58.8 43.5 10.9 104.6 146.9 Race or ethnicity of respondent White non-Hispanic 12.9 108.8 72.9 46.3 76.2 10.9 117.1 157.9 Nonwhite or Hispanic 8.7 92.5 64.2 26.1 32.7 5.4 56.6 47.0 Current work status of head Working for someone else 12.2 106.7 54.4 26.1 32.7 7.6 97.5 122.0 Self-employed 16.8 158.9 92.5 87.1 108.8 54.4 275.5 358.3 Retired 9.3 96.9 108.8 54.4 54.4 10.9 106.5 146.4 Other not working 7.8 98.0 70.3 114.3 42.5 6.2 31.0 19.5 Housing status Owner 14.4 108.8 70.8 49.0 81.6 14.2 142.0 210.4 Renter or other 6.7 70.3 16.3 33.7 5.4 7.8 12.7 Percentile of net worth Less than 25 5.4 43.5 3.8 1.1 7.0 6.4 25-49.9 9.3 65.3 40.8 10.9 13.1 5.4 56.2 66.2 50-74.9 13.7 103.4 38.1 25.0 43.5 9.5 126.9 180.0 75-89.9 16.9 152.4 87.1 49.0 95.2 16.3 237.8 394.4 90-100 25.4 272.1 163.3 130.6 326.5 59.9 563.5 1,060.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 19 8.—Continued B. 2001 Survey of Consumer Finances cha F ra a c m te il r y is tic Vehicles r P es ri i m de a n r c y e re p s r O i o d t p e h e n e r t r t i y a l no E n p r q r e o u s p i i t d e y r e t n y in t i al B e u q s u in it e y s s Other nonf a A i s n n s a e y n t cial a A s n se y t Percentage of families holding asset 84.8 67.7 11.3 8.3 11.8 7.6 90.7 96.7 Percentile of income 56.8 40.6 3.1 2.8 2.5 2.9 67.7 85.3 20-39.9 86.7 57.3 5.4 6.7 7.1 6.1 93.1 98.3 40-59.9 91.6 66.0 7.9 6.7 8.8 6.2 95.6 99.8 60-79 9 94.8 81.8 14.2 7.2 12.0 8.9 97.8 100.0 80-89 9 95.4 90.9 19.7 12.1 18.7 9.4 99.4 100.0 90-100 92.8 94.4 32.8 23.9 38.9 18.0 99.5 100.0 Age of head (years) 78.8 39.9 3.4 2.8 7.0 6.9 83.0 93.1 35-44 88.9 67.8 9.2 7.6 14.2 8.0 93.2 97.4 45-54 90.5 76.2 14.7 10.0 17.1 7.2 95.2 98.1 55-64 90.7 83.2 18.3 12.3 15.6 7.9 95.4 98.2 65-74 81.3 82.5 13.7 12.9 11.6 9.7 91.6 97.1 73.9 76.2 15.2 8.3 2.4 6.2 86.4 97.8 Race or ethnicity of respondent 89.1 74.1 12.9 9.6 13.9 9.0 94.7 99.0 70.9 47.0 6.4 4.1 5.1 2.9 77.9 89.4 Current work status of head 88.5 64.7 10.0 6.7 6.1 7.4 92.5 97.8 88.6 80.3 19.5 18.1 60.8 14.1 97.1 98.4 77.1 73.9 12.0 8.2 3.3 5.4 86.7 95.7 64.0 43.4 4.8 3.8 5.7 * 70.5 82.3 Housing status 92.2 100.0 14.9 11.0 15.5 8.7 100.0 100.0 69.3 3.9 2.6 4.2 5.1 71.3 89.7 Percentile of net worth 64.8 14.3 * * 1.2 3.2 68.2 86.7 25-49.9 86.8 69.6 4.5 3.6 4.0 5.1 96.3 100.0 50-74.9 94.1 91.4 12.6 8.1 11.5 6.6 98.7 100.0 75 89 9 93.1 95.1 19.6 15.4 22.5 10.5 99.6 100.0 90-100 94.1 95.8 39.0 30.1 42.8 22.8 99.7 100.0 Median value of holdings for families holding asset (thousands of 2001 dollars) 13.5 122.0 80.0 49.0 100.0 12.0 113.2 147.4 Percentile of income 5.3 65.0 25.0 32.5 56.3 6.0 34.3 24.9 20-39.9 8.4 80.0 75.0 30.0 35.0 6.0 57.0 67.2 40-59.9 12.6 95.0 50.0 30.0 61.7 10.0 92.2 115.0 60-79 9 17.6 130.0 70.0 49.5 62.5 10.0 151.6 230.0 80-89.9 22.7 175.0 62.5 46.0 100.0 20.0 224.6 377.1 90-100 30.0 300.0 200.0 146.2 268.3 50.0 479.5 1,009.4 Age of head (yearsJ 11.3 95.0 75.0 33.3 50.0 10.0 30.5 39.4 35-44 14.8 125.0 75.0 39.5 100.0 9.0 117.8 157.6 45-54 15.7 135.0 65.0 56.4 102.0 11.0 140.3 211.6 55-64 15.1 130.0 80.0 78.5 100.0 30.0 147.9 226.3 65-74 1133..66 129.0 145.0 50.0 100.0 20.0 149.2 214.6 88..88 111.0 80.0 28.0 510.9 15.0 122.6 169.6 Race or ethnicity of respondent 14.6 130.0 80.0 50.0 100.0 15.0 131.4 183.9 10.0 92.0 60.0 22.5 50.0 5.0 58.2 56.8 Current work status of head 13.7 120.0 70.0 36.8 50.0 10.0 101.8 129.0 19.2 200.0 150.0 100.0 126.0 30.0 335.0 439.2 10.1 100.0 85.0 58.0 65.5 20.0 105.8 143.4 10.2 100.0 110.0 33.0 110.0 * 71.1 41.4 Housing status 16.2 122.0 80.0 50.0 105.0 15.0 156.9 240.1 7.6 60.0 32.5 35.0 6.0 8.9 13.4 Percentile of net worth 6.3 49.5 * * 10.0 4.0 8.2 8.2 25-49.9 11.8 70.0 24.0 9.0 15.0 10.0 62.6 75.1 50-74.9 15.3 120.0 50.0 25.0 50.0 10.0 144.8 215.2 75-89.9 19.0 200.0 80.0 52.3 120.0 18.0 281.8 508.5 90-100 2288..88 335500..00 221100..00 211.7 500.0 40.0 712.5 11,,443388..11 NOTE. See note to table 1. * Ten or fewer observations. . . . Not applicable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Federal Reserve Bulletin • January 2003 The median holding of net business equity for declined 0.9 percent during the recent three-year those having a business interest jumped 53.1 percent period, to 7.6 percent of families. In general, ownerfrom 1998 to 2001, about twice the rate of increase ship is relatively more common among the highest in median holdings of all types of publicly traded income and wealth groups and among families corporate equities. Almost every demographic group headed by self-employed persons. Ownership showed an increase, many of which were substantial. declined for most demographic groups between 1998 The SCF classifies privately owned business inter- and 2001. However, the group for which the ownerests into those in which the family has an active ship rate was already the highest, that is, families management role and those in which it does not. with net worth in the highest 10 percent of the Of families having any business interests in 2001, distribution, saw their ownership rate rise 4 percent- 87.8 percent had only an active role and 9.0 percent age points. The overall median value of these assets had only a non-active role; 3.2 percent had interests rose 10.1 percent. Although increases were common in both types (not shown in tables). In terms of assets, across demographic groups, the highest wealth group the actively managed interests account for 89.0 per- saw a sizable decline; the decline suggests that the cent of total privately owned business interests. group's rise in rate of ownership resulted from the Although some families have more than one business addition of relatively small holdings. that they actively manage, the median number is 1, and the total value of all primary actively managed Unrealized Capital Gains businesses accounts for 81.0 percent of the value of all actively managed businesses.22 The most common Changes in the values of assets such as stock, real organizational form for the primary actively managed estate, and businesses are a key determinant of business is a sole proprietorship, and the vast majorchanges in families' net worth. Unrealized gains are ity of primary actively managed businesses operate increases in the value of assets that are yet to be sold. in an industry other than manufacturing; the median To obtain information on this part of net worth, the number of employees is two. These figures are little survey asks about changes in value from the time of changed since 1998. purchase for certain key assets—publicly traded stocks, mutual funds, the primary residence, other Other Nonfinancial Assets real estate, and businesses.23 The median unrealized capital gain in these assets over the 1998-2001 period Ownership of the remaining nonfinancial assets moved up 29.3 percent, and the mean moved up (tangible items including artwork, jewelry, precious 24.7 percent (table 9). Both measures were well metals, antiques, hobby equipment, and collectibles) above their 1992 levels. The rise in unrealized gains 22. Families with more than one business are asked to report which 23. The survey does not collect information on capital gains for business is most important; that business is designated as the primary every asset. Most notably, it does not collect such information for one. retirement accounts. 9. Family holdings of unrealized capital gains, by selected characteristics of families, 1992, 1995, 1998, and 2001 surveys Thousands of 2001 dollars 1992 1995 1998 2001 FFaammiillyy cchhaarraacctteerriissttiicc Median Mean Median Mean Median Mean Median Mean All families 9.3 86.7 6.5 78.3 11.6 105.2 15.0 131.2 Percentile of income Less than 20 t 19.7 + 18.0 t 19.6 t 17.5 20-39.9 1.4 31.5 .3 29.3 2.0 31.9 1.4 41.4 40-59.9 3.8 48.2 4.3 37.9 9.8 48.6 9.5 46.6 60-79.9 19.9 59.9 15.4 53.9 22.0 71.6 28.0 86.9 80-89.9 30.4 102.7 31.2 80.2 37.2 104.0 55.0 142.0 90-100 115.1 445.1 75.1 424.6 105.6 604.4 161.0 785.1 Age of head (years) Less than 35 t 16.7 t 11.1 t 16.8 t 28.5 35-44 6.2 67.5 4.6 42.3 7.7 69.0 11.0 93.3 45-54 22.3 127.9 21.5 110.5 24.3 137.3 28.0 154.7 55-64 35.9 162.9 32.0 158.8 38.3 203.3 41.0 230.6 65-74 37.1 134.8 34.7 136.6 50.6 178.5 48.0 240.9 75 or more 31.3 82.3 37.7 99.6 39.2 125.0 50.0 150.9 NOTE. See note to table 1. t Less than 0.05 ($50). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 21 reflects strong asset appreciation over the period as amount of debt in the oldest age group dropped well as the relative illiquidity of real estate and during the 1998-2001 period, a decline that partially businesses, reversed a jump seen in the 1995-98 period. In the most recent three-year period, median debt rose for most other demographic groups. Over work-status LIABILITIES groups, the median of only the retired group fell. The median rose substantially for all wealth groups Liabilities and assets both grew substantially from except the lowest one. 1998 to 2001, but assets grew more rapidly overall. As a consequence, the ratio of family debts to assets (the leverage ratio) fell from 14.3 percent to 12.1 per- Mortgages and Other Borrowing cent (table 10). The ratio measured by the survey had on the Primary Residence been little changed between 1992 and 1998. The 2001 level of the leverage ratio is marginally lower Between 1998 and 2001, the proportion of families than the 12.4 percent level registered in the 1989 with home-secured debt rose 1.5 percentage points, survey. Home-secured debt accounted for 75.1 per- to 44.6 percent.24 The increase continues a trend that cent of total family debt in 2001, up 3.8 percentage has been observed in the survey since 1992. Use of points from 1998. home-secured debt rose for most demographic groups in the recent period; groups with a notable decrease were families headed by persons aged 75 and older, the highest wealth group, and families headed by Families' Holdings of Debt self-employed persons. Overall, the median amount of home-secured debt After a decline of almost Vi percentage point between rose 3.7 percent from 1998 to 2001. Increases were 1995 and 1998 in the share of families with any type most marked for families headed by persons aged 65 of debt (not shown in tables), the share rebounded and older, families headed by self-employed per- 1 percentage point in 2001, to 75.1 percent of all sons, and families that had net worth in the highest families (table 11). Borrowing is more prevalent 10 percent of the distribution. For the first two of among families in the income and wealth groups these groups, the accompanying decline in ownerabove the lowest and in age groups below 65. Over ship suggests that those with relatively low levels of the 1998-2001 period, most demographic groups saw such debt were disproportionately represented in the an increase in the proportion of families borrowing. decline in ownership. Despite an increase in the However, the proportion of families in the highest proportion of nonwhite or Hispanic families using wealth group that were indebted declined notably. home-secured debt, the median amount owed by this The overall median value of total outstanding debt group declined; in light of relatively little change in for families that had any rose 9.6 percent from 1998 either the ownership rate or the median value of printo 2001. Across demographic groups, median debt cipal residences, the decline in the median amount rises with income and wealth; it rises and then owed may reflect largely the paying down of existing declines with age. The decline among older age mortgages. groups is driven in large part by the paying off The rising values of houses over this period outof mortgages on primary residences. The median paced the attendant increases in home-secured debt and raised the typical amount of home equity held by 10. Amount of debt of all families, distributed families (not shown in tables). Median home equity by type of debt, 1992, 1995, 1998, and 2001 surveys among those with home-secured debt rose from Percent $53,300 in 1998 to $58,100 in 2001, a 9.0 percent Type of debt 1992 1995 1998 2001 increase. Among those with such debt, the median ratio of home-secured debt to the value of the prin- Home-secured debt 72.0 73.1 71.3 75.1 Other residential property 10.4 7.7 7.7 6.4 cipal residence fell from 58.8 percent in 1998 to Installment loans 11.3 11.9 13.0 12.3 56.0 percent in 2001; at the same time, a survey- Other lines of credit .8 .6 .3 .5 Credit card balances 3.2 3.9 3.9 3.4 based estimate of the aggregate ratio of debt to home Other 2.3 2.8 3.7 2.3 Total 100 100 100 100 values fell from 36.5 percent to 33.5 percent. MEMO Debt as a percentage 24. Home-secured debt consists of first and second mortgages of total assets 14.5 14.6 14.3 12.1 and home equity loans and lines of credit secured by the primary NOTE. See note to table 1. residence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Federal Reserve Bulletin • January 2003 11. Family holdings of debt, by selected characteristics of families and type of debt, 1998 and 2001 surveys A. 1998 Survey of Consumer Finances cha F ra a c m te il r y is tic Home-secured re p s r O i o d t p e h e n e r t r t i y a l Ins l t o al a l n m s ent b C a c l r a a e n r d d c i e t s li O c n r e t e h s d e i o r t f Other d A e n b y t Percentage of families holding debt All families 43.1 5.1 43.7 44.1 2.3 8.8 74.1 Percentile of income Less than 20 11.2 * 27.3 24.5 * 5.5 47.3 20-39.9 23.9 2.0 36.7 40.9 1.7 6.2 66.8 40-59.9 43.7 4.3 51.2 50.1 2.7 7.8 79.9 60-79.9 63.5 7.0 51.6 57.4 2.9 11.3 87.3 80-89.9 73.6 7.8 58.4 53.1 4.5 12.1 89.6 90-100 73.0 15.3 45.4 42.1 2.5 13.9 88.1 Age of head (years) Less than 35 33.2 2.0 60.0 50.7 2.4 99..66 8811..22 35-14 58.7 6.7 53.3 51.3 3.6 11.4 87.6 45-54 58.8 7.0 51.2 52.5 3.6 11.1 87.0 55-64 49.4 7.8 37.9 45.7 1.6 8.3 76.4 65-74 26.0 5.3 20.2 29.2 * 4.1 51.4 75 or more 11.5 1.8 4.2 11.2 * 2.0 24.6 Race or ethnicity of respondent White non-Hispanic 46.7 5.5 44.3 44.4 2.4 8.8 7744..99 Nonwhite or Hispanic 30.7 4.0 41.6 43.3 1.9 8.8 71.1 Current work status of head Working for someone else 50.8 5.3 55.2 53.5 2.7 10.8 86.8 Self-employed 63.1 10.9 46.3 47.5 3.7 10.7 84.6 Retired 18.6 3.1 15.8 20.9 * 3.3 39.9 Other not working 26.8 * 39.0 39.0 * 7.5 65.7 Housing status Owner 65.1 6.3 44.3 46.2 1.8 9.3 7799..44 Renter or other 2.9 42.6 40.0 3.4 7.8 63.5 Percentile of net worth Less than 25 11.2 * 47.2 39.5 2.8 9.3 65.6 25-49.9 47.4 3.3 49.9 54.9 2.5 9.3 81.4 50-74.9 56.2 4.9 46.3 48.7 1.7 7.6 76.8 75-89.9 56.8 9.0 34.4 36.7 2.0 7.6 70.2 90-100 59.0 14.9 27.3 28.4 2.6 10.8 75.9 Median value of holdings for families holding debt (thousands of 2001 dollars) All families 67.5 43.5 9.5 1.9 2.7 3.3 35.4 Percentile of income Less than 20 27.2 * 4.4 1.0 * 1.1 44..88 20-39.9 40.3 35.9 6.7 1.3 1.2 1.9 11.0 40-59.9 47.9 20.7 8.7 2.1 1.6 2.2 27.8 60-79.9 70.8 31.1 13.0 2.4 3.0 3.3 62.9 80-89.9 87.6 46.4 12.5 2.2 3.3 5.4 92.9 90-100 127.4 76.2 15.8 3.3 7.0 10.9 137.3 Age of head (years) Less than 35 77.3 59.9 9.9 11..66 11..11 11..99 2200..99 35-44 76.2 43.5 8.3 2.2 1.5 3.3 60.6 45-54 74.0 43.5 10.9 2.0 3.3 5.4 52.2 55-64 52.2 44.6 9.0 2.2 5.3 5.4 37.2 65-74 28.3 27.4 7.0 1.2 * 4.9 13.0 75 or more 23.1 32.4 9.7 .8 * 1.9 8.8 Race or ethnicity of respondent White non-Hispanic 67.5 46.4 9.8 2.2 33..00 33..66 4433..22 Nonwhite or Hispanic 67.5 32.7 7.8 1.2 .8 1.9 16.9 Current work status of head Working for someone else 71.8 38.5 9.6 2.1 3.0 3.3 38.2 Self-employed 80.4 59.7 12.0 2.2 4.1 7.1 70.1 Retired 40.3 37.0 6.3 1.1 * 2.1 11.1 Other not working 62.0 * 7.3 1.3 • 1.2 13.7 Housing status Owner 67.5 45.7 10.4 2.2 2.4 4.4 65.9 Renter or other 29.9 8.3 1.4 3.0 1.4 6.5 Percentile of net worth Less than 25 61.5 * 8.6 1.7 1.1 1.6 9.1 25-49.9 60.0 31.6 8.5 2.0 3.3 2.2 31.3 50-74.9 64.2 23.9 9.7 2.0 3.3 5.4 50.1 75-89.9 76.2 58.8 11.1 1.6 1.4 6.5 70.8 90-100 108.8 78.4 16.0 2.0 10.9 21.8 105.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 23 11.—Continued B. 2001 Survey of Consumer Finances cha F ra a c m te il r y is tic Home-secured re p s r O i o d t p e h e n e r t r t i y a l Inst l a o l a l n m s e nt b C a c l r a a e n r d d c i e t s li c O n r e t e h s d e i o r t f Other A de n b y t Percentage of families holding debt 44.6 4.7 45.2 44.4 1.5 7.2 75.1 Percentile of income 13.8 * 25.5 30.3 1.3 5.9 49.3 20-39.9 27.0 1.8 43.2 44.5 1.5 5.6 70.2 40-59 9 44.4 3.2 51.9 52.8 1.5 7.7 82.1 60-79.9 61.8 5.4 56.7 52.6 1.5 7.7 85.6 80-89.9 76.9 10.3 55.7 50.3 2.6 9.3 91.4 90-100 75.4 14.9 41.2 33.1 1.4 8.8 85.3 Age of head (years) 35.7 2.7 63.8 49.6 1.7 8.8 82.7 35-44 59.6 4.9 57.1 54.1 1.7 8.0 88.6 45-54 59.8 6.5 45.9 50.4 1.5 7.4 84.6 55-64 49.0 8.0 39.3 41.6 3.1 7.4 75.4 65-74 32.0 3.4 21.1 30.0 * 5.0 56.8 9.5 2.0 9.5 18.4 * 3.6 29.2 Race or ethnicity of respondent 47.6 5.4 45.3 43.3 1.7 7.4 75.8 35.1 2.5 44.6 47.7 t.l 6.5 72.9 Current work status of head 52.5 5.3 57.0 53.2 1.4 8.2 86.5 59.1 7.4 39.8 42.8 3.5 8.1 81.7 19.6 2.2 17.2 24.0 * 4.4 44.3 27.9 * 41.2 32.2 * 6.1 61.5 Housing status 6666..00 6.0 45.5 44.4 - 1.0 6.9 79.9 2.0 44.5 44.3 2.8 7.8 65.0 Percentile of net worth 11.2 * 48.9 45.5 2.4 8.3 68.7 25-49.9 49.4 2.0 51.0 55.1 1.3 7.2 80.8 50_74.9 59.1 5.4 48.1 44.6 * 7.1 77.9 75-89.9 61.2 7.9 37.2 38.9 * 4.9 74.9 90-100 5555..55 15.0 25.6 22.4 2.1 8.2 70.2 Median value of holdings for families holding debt (thousands of 2001 dollars) 70.0 40.0 9.7 1.9 3.9 3.0 38.8 Percentile of income 28.0 * 4.6 1.0 .5 1.0 5.2 20-39.9 40.0 30.0 6.6 1.2 1.1 3.0 11.5 40-59.9 56.1 38.8 9.7 2.0 .7 2.0 29.1 60-79.9 75.6 41.9 11.9 2.3 4.0 3.0 62.3 80-89.9 91.0 31.2 14.5 3.8 7.8 4.0 96.8 90-100 134.0 77.0 13.4 2.8 10.0 21.0 146.4 Age of head (years) 77.0 52.0 9.5 2.0 .5 2.0 24.9 35-44 80.0 45.5 11.1 2.0 .7 3.1 61.5 45-54 75.0 33.5 9.6 2.3 5.3 5.0 54.3 55-64 55.0 40.0 9.0 1.9 20.5 5.0 34.6 65 74 39.0 77.0 7.0 1.0 * 2.5 13.1 44.8 42.0 5.8 .7 * 2.5 5.0 Race or ethnicity of respondent 74.0 40.0 10.0 2.0 4.0 3.6 44.5 61.0 40.0 8.1 1.5 1.0 2.0 20.0 Current work status of head 74.0 37.5 10.0 2.0 3.0 2.1 42.5 100.0 87.5 10.2 2.5 15.0 11.9 77.8 31.5 45.9 6.9 .9 * 3.3 9.8 72.0 * 9.8 2.0 * 2.5 33.8 Housing status 7700..00 41.0 10.4 2.1 15.0 4.0 69.4 37.6 7.0 1.2 1.0 2.0 6.0 Percentile of net worth 57.0 * 8.3 1.6 .5 2.0 8.8 25^9.9 56.5 20.0 9.4 1.9 1.8 1.2 38.5 50-74.9 69.0 47.0 10.0 2.0 * 4.0 60.0 75-89.9 86.0 30.0 11.7 2.1 * 7.0 80.3 90-100 113355..00 7777..00 1111..33 2.0 20.5 30.0 126.0 NOTE. See note to table 1. * Ten or fewer observations. . . . Not applicable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Federal Reserve Bulletin • January 2003 Although home purchase remains the main pur- Installment Borrowing pose of home-secured debt, the incentive to use such borrowing for other purposes has been higher since The use of installment borrowing is broadly distribthe Tax Reform Act of 1986, which phased out the uted, with notably lower use only in the lowest and deductibility of interest payments on most debt other highest income groups, the highest wealth group, and than that secured by a primary residence. In addition, families headed by retired persons or persons aged 65 declining mortgage interest rates since 1998 provided and older.26 From 1998 to 2001, overall use of installmany families the incentive to refinance existing ment borrowing rose 1.5 percentage points, to mortgages. By refinancing for more than the existing 45.2 percent, an increase reflecting, in part, a rise in balance, many families were able to obtain funds for the percent of families with vehicle loans. Between other purposes. 1992 and 1998, the use of installment borrowing had The survey provides some evidence of such bor- been declining, and the 2001 usage is still below that rowing. Families that refinanced a main mortgage of 1992. By income group, the increase over the were asked whether additional funds were obtained, recent three-year period was seen only for the broad and if so, how the funds were used; families that center of the distribution, that is, for families with carried a second mortgage, home equity loan, or incomes in the 20th through 80th percentiles. Over home equity line of credit were asked the purpose the same period, the median amount owed went up of the borrowing. Families that simply chose to take only 2.1 percent, and changes in the median across out larger initial mortgages to free up funds to spend groups were mixed. for other purchases would not be captured by these questions. However, among families with any type Borrowing on Credit Cards of home-secured debt, the available data suggest that the proportion who used such borrowing for a pur- The use of credit cards for borrowing is also widepose other than just financing their home declined in spread but is notably lower among the highest and the period after 1998. In that year, the proportion of lowest income groups and among families headed families with such borrowing was 33.6 percent, and by persons aged 65 or older or by persons who are in 2001 the figure was 32.1 percent; however, the not working.27 From 1998 to 2001, the proportion of 2001 level is substantially above the 1995 level of 22.2 percent.25 families using such borrowing edged up 0.3 percentage point, to 44.4 percent; this small rise breaks Home equity lines of credit are a widely advertised a decline of more than 3 percentage points in the source of tax-preferred borrowing. Among homeown- 1995-98 period. ers, the proportion of families with a home equity Despite the marginal overall change in usage durline edged up 0.4 percentage point, to 14.9 percent in ing the recent three-year period, usage among groups 2001; the proportion actually drawing on such lines shifted more noticeably. Across income groups, usage rose 0.7 percentage point, to 10.6 percent. rose for families with incomes below the 60th percentile, and it fell for groups above that point; similarly, declines for homeowners and white non-Hispanic Borrowing on Other Residential Real Estate families were offset by increases for their complementary sets of families. The median balance in 1998 The decline in ownership of other residential real for those that had credit card debt—$1,900—was estate was accompanied by a marginal decline in the unchanged in 2001. Changes in the median, which proportion of families with borrowings for such real were mixed and generally small across groups, were estate, from 5.1 percent in 1998 to 4.7 percent in most notable for families with incomes in the 80th to 2001. As with the ownership of such property, the 90th percentiles and those with net worth in the 75th associated borrowing is most prevalent among famito 90th percentiles. lies with relatively high income or wealth. Over the period, the use of such debt declined for most demo- 26. The term "installment borrowing" in this article describes graphic groups. At the same time, the overall median consumer loans that typically have fixed payments and a fixed term. amount of such debt fell 8.0 percent, but the changes Examples are automobile loans, student loans, and loans for furniture, appliances, and other durable goods. in the median across demographic groups were 27. Credit cards consist of bank-type cards (such as Visa, Mastermixed. Card, Discover, and Optima), store cards or charge accounts, gasoline company cards, so-called travel and entertainment cards (such as American Express and Diners Club), and other credit cards. In the 25. Appropriate data do not exist in the survey to construct this survey, the amount borrowed on such cards is the amount remaining measure for earlier years. after the most recent bill was paid. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 25 Although the proportion of families using credit insurance policies, which the survey indicates became card borrowing was little changed, the proportion of less prevalent over this period; the other components families having some type of credit card rose 3.7 per- of the use of this type of debt were little changed (not centage points from 1998, to 76.2 percent of families shown in tables). The median amount of other debt in 2001 (not shown in tables). Over the same period, for those who had any fell 9.1 percent, to $3,000. the proportion of families with cards changed as follows for the various card types (not shown in tables): bank-type cards, up 5.2 percentage points, Reasons for Borrowing to 72.7 percent; travel and entertainment cards, up 1.4 percentage points, to 10.5 percent; store cards, The SCF provides information on the reasons that down 4.8 percentage points, to 45.2 percent; and families borrow money (table 12). One subtle probgasoline company cards, down 3.1 percentage points lem with the use of these data is that, even though to 16.1 percent. Ownership rates for other cards and money is borrowed for a particular purpose, it may accounts were relatively small and changed little. be used to offset some other use of funds. For exam- As the most widely held type of card, the bank- ple, a family may have sufficient funds to purchase a type card holds particular importance in any examina- home without using a mortgage but may instead tion of family finances. The ownership rate of such choose to finance the purchase to free existing funds cards rose over the recent three-year period, but the for another purpose. Thus, trends in the data can only proportion of families with such cards who carried suggest the underlying use of funds by families. a balance fell 1 percentage point, to 53.7 percent in The survey does not collect exhaustive detail on 2001. The proportion of families with such cards that the use of borrowed funds. In the case of credit cards, reported that they usually pay off their credit card it was deemed impractical to ask about the purposes bills in full each month rose 1.5 percentage points, to of borrowing that might well be heterogeneous for 55.3 percent. The median charge for the month pre- individual families. For the analysis here, all credit ceding the interview on all bank-type cards held by card debt is included in the category "goods and the family was unchanged at $200. services." All funds owed on a first mortgage on a principal residence are assumed to have been used for the purchase of the home, even when the loan has Borrowing on Other Lines of Credit been refinanced. Because the surveys before 1998 did not collect information on the uses of funds The use of lines of credit other than home equity borrowed from pension accounts, the table reports lines is not common, and from 1998 to 2001 it fell borrowing from pension accounts as a separate cate- 0.8 percentage point, to 1.5 percent of families. In gory, unclassified as to purpose. addition, the proportion of families who had such The data indicate that the proportion of total famlines fell more, from 3.9 percent to 2.7 percent (not ily borrowing attributable to home purchase went shown in tables). At the same time, however, typical up 3 percentage points between 1998 and 2001, to balances for those that had them rose 44.4 percent, to 70.7 percent, a peak for the years shown. The $3,900. increase was offset by declines in other categories, including other residential property and investments. Other Debt 12. Amount of debt of all families, distributed by purpose From 1998 to 2001, the proportion of families that of debt, 1992, 1995, 1998, and 2001 surveys incurred other types of debt fell 1.6 percentage points, Percent to 7.2 percent.28 The use of other debt is spread broadly across demographic groups, but rates of use U Purpose of debt itSs 1992 1995 1998 are notably lower for families headed by those who Home purchase 67.2 70.3 67.7 are retired or are 65 years of age and older. The 1 Home improvement 2.5 2.0 2.1 1.9 Other residential property 10.9 8.2 7.9 6.I decline in overall use appears to have been driven | Investments excluding real estate 1.8 1.0 3.3 2.8 f. Vehicles 7.0 7.6 7.6 7.8 largely by a decline in borrowing against whole life Goods and services 5.6 5.7 6.1 5.7 Education 2.8 2.7 3.4 3.1 1 Unclassiliable loans against pension accounts .1 .2 .4 28. Other borrowing comprises loans on insurance policies, loans 1 Ot T he o r t al 10 2 0 . 1 10 2 0 .2 100 1. 5 against pension accounts, borrowing on margin accounts, and a residual category for all loans not explicitly referenced elsewhere. NOTE. See note to table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Federal Reserve Bulletin • January 2003 However, the treatment of first mortgages on a prin- such lending; their proportion of debt has oscillated cipal residence may cast doubt on these conclusions. up and down by about 1.5 percentage points since Beginning with the 1995 survey, as noted in the 1992; in the most recent three-year period, it rose discussion of home-secured debt, some information 1.4 percentage points. The share of lending by indihas been collected on the use of funds when such viduals has declined by about half since 1992 and mortgages have been refinanced. But even for that was 2.0 percent of the total in 2001. Other changes and later surveys, the proportion of funds used for are smaller and without apparent trend. purposes other than refinancing the earlier mortgage In some cases, loans may have been held at the is unknown. Nonetheless, other information suggests time of the interviews by institutions other than the that the results should not be far off. Only 15.5 per- ones that originally made the loans. Resale of loans is cent of families with mortgages in 2001 had refi- particularly important for mortgage debt. According nanced and extracted additional home equity at some to the 2001 survey, 40.9 percent of the first mortgages time and still had a mortgage; of those families, on primary residences were held by a lender other 43.1 percent used some part of the funds for home than the one that made the original loan, down repairs or improvements, 31.3 percent used some part slightly from the 43.1 figure for 1998 (not shown in for more general purchases, 15.3 percent used some tables). In dollar-weighted terms, the results are simipart for real estate or other investments, 6.9 percent lar. Mortgages with non-originating lenders account used some part for the purchase of vehicles, and for 43.2 percent of the outstanding balances on first 3.5 percent used some part for education expenses mortgages for principal residences, and the figure for (not shown in tables). 1998 is 44.6 percent. Choice of Lenders Debt Burden The survey provides information on the types of As aggregate household debt reported in the Federal lenders to which families owe money at the time of Reserve's flow of funds accounts has risen over the the interview (table 13). The data show two long- past decade, concern has been expressed that debt standing and approximately offsetting trends. The might become excessively burdensome to families. share of total family debt attributable to thrift institu- However, rising aggregate debt levels alone do not tions fell in each survey since before 1992, to reach necessarily imply that conditions deteriorated at the 6.1 percent in 2001, a decline of 10.8 percentage level of individual families. The ability of individual points over the nine-year period. Offsetting this families to service their loans is a function of two movement has been a concurrent rise of 10.7 percent- factors: the level of their loan payments and the age points in the share of debt associated with spe- income and assets they have available to meet those cialized mortgage or other real estate lenders, the payments. In planning their borrowing, families make lender type with the largest share of the total. Com- assumptions about their future ability to repay their mercial banks account for the second largest share of loans. Problems may occur when events turn out to be contrary to those assumptions. If such errors of judgment were sufficiently large and prevalent, a 13. Amount of debt of all families, distributed broad pattern of default, restraint in spending, and by type of lending institution, 1992, 1995, broader financial distress in the economy might 1998, and 2001 surveys ensue. Percent Several factors affecting income and payments Type of institution 1992 1995 1998 2001 shifted over the 1998-2001 period. Interest rates, a key determinant of payments, rose but then declined Commercial bank 33.1 34.9 32.8 34.1 Thrift institution1 16.9 10.8 9.7 6.1 into 2001. Another important determinant of pay- Credit union 4.0 4.5 4.2 5.5 Finance or loan company 3.2 3.2 4.2 4.3 ments is the term over which a loan is scheduled to Brokerage 3.2 1.9 3.8 3.1 be repaid; families may have opted for different terms Mortgage or real estate lender ... 27.3 32.8 35.5 38.0 Individual lender 4.2 5.0 3.3 2.0 either directly or by substituting longer-term borrow- Other nonfinancial 1.6 .8 1.3 1.4 Government 1.9 1.2 .6 1.1 ing based on home equity for loans with shorter Credit card and store card 3.3 3.9 3.9 3.7 terms. Incomes rose fairly broadly over the period, Pension account .1 .2 .4 .3 Other 1.1 .7 .3 .5 while the proportion of families with debt and the Total 100 100 100 100 typical amount owed also rose. The net consequences NOTE. See note to table 1. of these movements on the ratio of payments to 1. Savings and loan association or savings bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 27 income can only be assessed by looking at how these The survey data also make it possible to compute factors vary together over families. measures of payment burden that are not possible The Federal Reserve staff has constructed an with the Federal Reserve's aggregate-level estimate. aggregate-level measure of debt burden: an estimate In particular, the survey allows a detailed look at the of total scheduled loan payments (interest plus mini- spectrum of payments relative to income across all mum repayments of principal) for all households, households with debts. Like the ratio of survey-based divided by disposable personal income. From 1998 to totals, the median of the ratios for individual families 2001, the aggregate-level measure rose about 1 per- that had any debt declined 2.1 percentage points in centage point, to about 14 percent.29 the recent three-year period, to 16.0 percent. More- The survey data may be used to construct a similar over, the measure declined for virtually every group estimate of the debt-burden ratio and to construct shown. such an estimate for various demographic groups A limitation of the median ratio is that it may not (table 14). The SCF-based estimate is the ratio of be indicative of distress because it reflects the situatotal debt payments for all families to total family tion of only a typical family. Unless errors of judgincome of all families. In contrast to the aggregate- ment by both families and lenders were pervasive, level estimate, the SCF-based estimate declined one would not expect to see signs of financial distress 1.9 percentage points over the three-year period, to at the median. Thus, a more compelling indicator of 12.5 percent, after having remained fairly flat over distress is the proportion of families with unusually the 1992-98 period. If total payments and incomes large total payments relative to their incomes. From are computed only for families with debt, the results 1998 to 2001, the proportion of debtors with payare similar. The SCF-based measure also declined ments exceeding 40 percent of their incomes fell over the recent three-year period for almost every 1.8 percentage points, to 11.0 percent, a level only demographic group shown; the only notable excep- 0.2 percentage point above the 1992 level. Like the tion is families with net worth in the 75th to 90th per- other two survey-based payment measures, this indicentiles of the distribution, for whom the ratio rose cator also fell across nearly all demographic groups 0.6 percentage point.30 shown. Other commonly used indicators of debt repayment problems are aggregate delinquency rates, that 29. A description of this series, and the data for it since 1980, are at is, the number of delinquent accounts or the percentwww.federalreserve.gov/releases/housedebt/default.htm. Movements in this ratio may say something about changes in the ability of families age of total balances on which payments are late. as a whole to increase their current consumption, either through direct Data on these measures from various sources and for purchases or through additional borrowing, but they do not necessarily different types of credit do not give a consistent imply that financial restraint moved in any particular way for individual families; to make the latter assessment, one must know the picture of changes in delinquencies over the period.31 joint movements of income and payments across families. A related measure is collected in the SCF. Families 30. The survey measure of payments relative to income may differ that have any debts at the time of their interview are from the aggregate-level measure for several reasons. First, the debt asked whether they have been behind in any of their payments included in each measure are different. The aggregate-level measure includes only debts originated by depositories, finance com- payments in the preceding year. This measure differs panies, and other financial institutions, whereas the survey includes, in conceptually from the aggregate delinquency rates principle, debts from all sources. Second, the aggregate-level measure uses a NIPA estimate of in that the survey counts multiple occasions of late disposable personal income for the period concurrent with the estimated payments as the denominator of the ratio, whereas the survey measure uses total before-tax income reported by survey families for the preceding year; the differences in these two income measures are complex. Third, the payments in the aggregate-level measure are estimated Finally, the survey measure excludes debt payments of household using a formula that entails complex assumptions about minimum members who are not members of the family unit analyzed in this payments and the distribution of loan terms at any given time; the article. survey measure of payments is directly asked of the survey respon- 31. Measures of the share of closed-end consumer credit outstanddents but may also include payments of taxes and insurance on real ing on which payments are late by sixty days or more, based on data estate loans. from the Call Report and from the American Bankers Association Fourth, because the survey measures of payments and income (ABA), showed little change on a point-to-point basis between the are based on the responses of a sample of respondents, they may be 1998 and 2001 surveys. Data from the ABA and from the captive affected both by sampling error and by various types of response error. finance company subsidiaries of motor vehicle manufacturers on As mentioned earlier in this article, the survey income measure tracks delinquency rates on automobile loans show opposite trends for the the most comparable measure of income in the Census Bureau's period. Several measures—based on data from the Call Report, the Current Population Survey. Over the same time, however, the SCF ABA, and Moody's on credit card debt in securitized pools—show an shows a little less growth in the aggregate level of debt than the overall increase in the delinquency rate on credit card debt over the Federal Reserve's flow of funds accounts; timing and conceptual interval. Delinquency rates on mortgages, after falling for the two differences might explain some of the difference. years after 1998, rebounded through 2001. 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A28 Federal Reserve Bulletin • January 2003 14. Ratios of debt payments to family income (aggregate and median), share of debtors with ratio above 40 percent, and share of debtors with any payment sixty days or more past due, by selected characteristics of families, 1992, 1995, 1998, and 2001 surveys Percent Aggregate Median of family ratios Family characteristic 1992 1995 1998 2001 1992 1995 1998 2001 All families 14.0 13.6 14.4 12.5 15.3 15.6 18.1 16.0 Percentile of income Less than 20 15.8 18.0 17.9 15.3 13.1 12.1 26.4 17.2 20-39.9 15.2 16.1 15.7 15.1 14.8 16.1 17.8 15.9 40-59.9 15.5 14.9 17.8 16.5 15.1 15.1 19.0 16.9 60-79.9 16.3 17.4 18.5 16.3 17.2 18.3 19.2 17.9 80-89.9 15.2 16.2 16.4 16.5 16.5 16.5 17.4 17.0 90-100 11.2 9.3 10.2 8.0 13.9 12.2 13.5 11.1 Age of head (years) Less than 35 16.4 17.1 16.6 16.6 15.5 16.2 18.3 16.7 35-W 17.8 16.7 17.1 14.7 18.4 17.6 19.6 17.3 45-54 14.5 14.7 15.9 12.4 15.4 16.1 18.0 16.8 55-64 11.4 11.5 13.0 10.7 14.2 13.9 17.0 13.8 65-74 7.7 6.9 8.5 8.8 9.8 11.1 14.9 15.1 75 and more 3.4 2.4 3.9 3.7 2.6 2.0 9.0 7.0 Percentile of net worth Less than 25 10.8 12.5 13.9 12.5 9.3 10.8 16.2 10.6 25-49.9 17.1 18.0 19.3 17.3 18.3 18.5 19.5 19.4 50-74.9 17.7 17.4 17.7 16.3 18.2 18.3 19.9 17.9 75-89.9 14.2 13.6 14.5 15.1 15.6 15.0 17.8 16.3 90-100 10.4 8.9 10.0 7.3 13.4 12.6 14.7 10.9 Housing status Owner 16.0 15.2 15.8 13.5 18.9 19.7 21.1 19.2 Renter or other 6.9 7.3 7.5 6.8 6.8 7.4 10.2 7.7 payments as one and counts families instead of bal- SUMMARY ances or accounts.32 Over the 1998-2001 period, the survey shows an overall decline in the proportion of The median and mean values of net worth of families debtors who were sixty or more days late with their as a whole grew substantially from 1998 to 2001 but payments on any of their loans in the preceding year; not for all demographic groups distinguished in this the share of such families fell 1.1 percentage points, report. Among groups defined by education of the to 7.0 percent. family head, net worth rose only for the groups at Although the measure also declined over most the opposite extremes: families headed by persons demographic groups, the exceptions are interesting. without a high school diploma or its equivalent and For families with incomes in the lowest 20 percent of families headed by persons with at least a college the distribution, the percent late rose 0.5 percentage degree. The net worth of nonwhite or Hispanic famipoint; for families headed by persons aged less than lies barely moved at the median, and the increase in 35, it rose 0.8 percentage point; for families with net the mean was notably below that of other families. worth in the lowest 25 percent of that distribution, Although equity markets declined further after the it rose 1.6 percentage points; and for renters it rose survey was completed, a sensitivity analysis suggests 1.2 percentage points. Thus, debt repayment prob- that with equity prices as low as they were in October lems appear to exist for some groups despite the 2002, both median and mean family net worth still apparent lack of obvious patterns in the distribution exceeded their levels in 1998. of payments relative to income for the same groups. Accounting for the various ways in which families The explanation may be the use of a lagged value of might own publicly traded corporate equities, the income in the ratio of payments to income; for fami- share of families owning any exceeded 50 percent lies with late payments, income may have deterio- in 2001. At the same time, the median holding of rated subsequently. families with equities rose more than one-fourth. Although managed assets, such as annuities, trusts, and managed investment accounts, are not owned by a large share of the population—less than 7 percent 32. In addition, the aggregate measures cover only certain loan of families in 2001—a large increase in both the types. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 29 14.—Continued Percent Families with ratios greater than 40 percent Families with any payment past due sixty days or more Family characteristic 1992 1995 1998 2001 1992 1995 1998 2001 AH families 10.8 10.6 12.8 11.0 6.0 7.1 8.1 7.0 Percentile of income Less than 20 26.4 26.2 28.2 27.0 11.0 10.2 12.9 13.4 20-39.9 15.1 16.0 17.2 16.0 9.3 10.1 12.3 11.7 40-59.9 10.1 8.1 15.3 11.7 6.9 8.7 10.0 7.9 60-79.9 7.6 7.1 8.6 5.6 4.4 6.6 5.9 4.0 80-89.9 2.9 4.6 3.4 3.5 1.8 2.8 3.9 2.6 90-100 2.5 2.0 2.6 2.0 1.0 1.0 1.6 1.3 Age of head (years) Less than 35 10.5 11.4 11.8 10.8 8.3 8.7 11.1 1111..99 35-44 11.5 9.3 11.8 9.4 6.8 7.7 8.4 5.9 45-54 10.0 10.6 11.5 10.9 5.4 7.4 7.4 6.2 55-64 14.3 14.4 13.9 12.2 4.7 3.2 7.5 7.1 65-74 7.4 7.8 17.5 13.9 1.0 5.3 3.1 1.5 75 and more 8.7 7.4 20.9 14.3 1.8 5.4 1.1 .8 Percentile of net worth Less than 25 9.5 9.5 11.8 10.3 14.4 14.5 16.1 17.7 25-49.9 11.9 11.4 15.1 13.3 5.5 8.2 9.8 7.2 50-74.9 11.8 11.0 12.4 10.5 3.1 4.4 5.5 3.6 75-89.9 9.9 9.2 11.6 10.6 2.3 2.4 1.0 .8 90-100 9.6 11.5 11.1 8.4 1.8 .7 2.4 .3 Housing status Owner 13.6 13.0 15.8 13.9 3.6 5.1 6.1 4.3 Renter or other 4.7 5.1 5.3 3.5 11.1 11.5 12.8 14.0 NOTE. The aggregate measure is the ratio of total debt payments to total income for all families. The median of family ratios is the median of the distribution of ratios calculated for individual families. Also see note to table 1. percent of families with such assets and the level APPENDIX: SURVEY PROCEDURES AND of their holdings served to push up their share of STATISTICAL MEASURES total financial assets. The homeownership rate grew 1.5 percentage points from 1998 to 2001, and the Detailed documentation of the SCF methodology is typical home value rose more than 12 percent. None- available elsewhere.33 The 2001 data used here are theless, the growth of financial assets outpaced other derived from the final internal version of the surassets as a share of total assets. vey information. Data from this survey, suitably The percent of families with any sort of debt went altered to protect the privacy of respondents, along up about 1 percentage point, and median debt for with additional tabulations of data from the surdebtor families rose almost 10 percent. Even so, the veys beginning with 1989, will be available in Februgrowth of assets was faster than the growth of debt, ary 2003 at www.federalreserve.gov/pubs/oss/oss2/ and the aggregate leverage ratio consequently scf2001home.html. Links to the data used in this declined. Debt payments relative to income showed article for earlier periods are available on that site. broad signs of decline over demographic groups. Results reported in this article for earlier surveys may However, increased problems with late payments for differ from the results reported in earlier articles a few groups suggest they face more serious credit because of additional statistical processing, correcdistress. tion of data errors, revisions to the survey weights, Median and mean incomes rose substantially from conceptual changes in the definitions of variables 1998 to 2001, but as in the case of net worth, there used in the articles, and adjustments for inflation. were very different growth rates for various demographic groups. The income data show particularly strong returns to education. Families headed by per- 33. See Arthur B. Kennickell, "Wealth Measurement in the Survey of Consumer Finances: Methodology and Directions for Future sons with a college degree had substantially larger Research," www.federalreserve.gov/pubs/oss/oss2/method.html (May increases in income than other families. 2000), and references cited in that paper. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Federal Reserve Bulletin • January 2003 As a part of the general reconciliations required niques for random sampling. First, a standard multifor this article, the survey data were compared with stage area-probability sample (a geographically based many external estimates, a few of which are men- random sample) is selected to provide good coverage tioned in the text. Generally, the survey estimates of characteristics, such as home ownership, that are correspond fairly well to external estimates. One broadly distributed in the population. particularly important comparison is between the Second, a supplemental sample is selected to dis- SCF and the Federal Reserve's flow of funds proportionately include wealthy families, who hold accounts for the household sector. This comparison a relatively large share of such thinly held assets suggests that when the definitions of the variables in as noncorporate businesses and tax-exempt bonds. the two sources can be adjusted to a common concep- Called the list sample, this group is drawn from a list tual basis, the estimates of totals in the two systems of statistical records derived from tax returns. These tend to be close. The data series in the SCF and in the records are used under strict rules governing confiflow of funds accounts usually show very similar dentiality, the rights of potential respondents to refuse growth rates.34 In general, the only data from the SCF participation in the survey, and the types of informathat can be compared with those of other surveys are tion that can be made available. Individuals listed the medians because of the special design of the SCF by Forbes magazine as being among the wealthiest sample. 400 people in the United States are excluded from sampling. Of the 4,449 interviews completed for the 2001 Definition of Family in the SCF SCF, 2,917 were from the area-probability sample, and 1,532 were from the list sample; the figures for The definition of "family" used throughout this 1998 are 2,780 from the area-probability sample and article differs from that typically used in other gov- 1,519 from the list sample. The 1998 survey repreernment studies. In the SCF, a household unit is sents 102.6 million families, and the 2001 survey divided into a "primary economic unit" (PEU)—the represents 106.5 million families.35 family—and everyone else in the household. The PEU is intended to be the economically dominant single individual or couple (whether married or liv- The Interviews ing together as partners) and all other persons in the household who are financially interdependent Only minor changes to the SCF questionnaire have with that person or those persons. In other govern- been made since 1989, and then only in response ment studies—for example, those of the Bureau of to financial innovations or to gather additional inforthe Census—an individual is not considered a family. mation on the structure of family finances. Thus, the This report also designates a head of the PEU, not data obtained by the five surveys conducted over this to convey a judgment about how an individual fam- period are highly comparable. ily is structured but as a means of organizing the data The generosity of families in giving their time for consistently. If a couple is economically dominant in interviews has been crucial to the SCF. In the 2001 the PEU, the head is the male in a mixed-sex couple SCF, the median interview required about eighty and the older person in a same-sex couple. If a single minutes. However, in some particularly complicated individual is economically dominant, that person is cases, the amount of time needed was substantially designated as the family head in this report. more than two hours. The role of the interviewers in this effort is also critical. Without their dedication and perseverance, the survey would not be possible. The Sampling Techniques The SCF interviews were conducted between the months of May and December in each survey year The survey is expected to provide a core set of data by NORC, a social science and survey research orgaon family assets and liabilities, The major aspects of nization at the University of Chicago (formerly the the sample design that address this requirement have National Opinion Research Center at the University been fixed since 1989. The SCF combines two tech- of Chicago). The great majority of interviews were obtained in person, although interviewers were allowed to conduct telephone interviews if that was 34. For details on how these comparisons are structured and the results of comparisons for earlier surveys, see Rochelle L. Antoniewicz, "A Comparison of Flow of Funds Accounts and the Survey of Consumer Finances," www.federalreserve.gov/pubs/oss/ 35. The 1992 survey represents 95.9 million families, and the 1995 oss2/method.html, October 2000. survey represents 99.0 million families. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes in U.S. Family Finances: Evidence from the 1998 and 2001 Survey of Consumer Finances 31 more convenient for the respondent. In the surveys found were holders of an unusual asset or liability or beginning with 1995, interviewers used a program were members of a demographic group in which such running on laptop computers to administer the survey holdings are rare. These weight adjustments are likely and collect the data. to make the key findings in this article more robust. The use of computer-assisted personal interviewing has the great advantage of enforcing systematic collection of data across all cases. The computer Sources of Error program developed to collect the data for the SCF was tailored to allow the collection of partial informa- Errors may be introduced into survey results at many tion in the form of ranges whenever a respondent stages. Sampling error—the variability expected in either did not know or did not want to reveal an exact estimates based on a sample instead of a census—is a dollar figure. particularly important source of error. Such error can The response rate in the area-probability sample is be reduced either by increasing the size of a sample more than double that in the list sample. In both 1998 or, as is done in the SCF, by designing the sample and 2001, about 70 percent of households selected to reduce important sources of variability. Sampling for the area-probability sample actually completed error can be estimated, and for this article we use interviews. The overall response rate in the list replication methods to do so. sample was about 30 percent; in the part of the list Replication methods draw samples from the set of sample likely containing the wealthiest families, the actual respondents in a way that incorporates the response rate was only about 10 percent. Analysis of important dimensions of the original sample design. the data confirms that the tendency to refuse partici- In the SCF, weights were computed for all the cases pation is highly correlated with net worth. in each of the selected replicates. For each statistic for which standard errors are reported in this article, the weighted statistic is estimated using the replicate Weighting samples, and a measure of the variability of these estimates is combined with a measure of the variabil- To provide a measure of the frequency with which ity due to imputation for missing data to yield the families similar to the sample families could be standard error. The estimation of the standard errors expected to be found in the population of all families, reported in this article employed a variation on the an analysis weight is computed for each case account- procedure used to compute the corresponding estiing for both the systematic properties of the sample mates reported in earlier articles on the survey; this design and for differential patterns of nonresponse. variation concerns an adjustment made in the merg- The SCF response rates are low by the standards ing of the area-probability and list sample observaof other major government surveys. However, unlike tions within each replicate sample, and it has the other surveys, which also almost certainly have effect of moderating the effects of situations in the differential nonresponse by wealthy households, the replicate samples that would not have been allowed SCF has the means to adjust for such nonresponse. A in the actual sample.37 major part of SCF research is devoted to the evalua- Other errors include those that interviewers may tion of nonresponse and adjustments for nonresponse introduce by failing to follow the survey protocol or in the analysis weights of the survey.36 misunderstanding a respondent's answers. SCF inter- For this article, the weights of a small number of viewers are given lengthy, project-specific training to cases have been further adjusted to diminish the minimize such problems. Respondents may introduce possibility that the results reported could be unduly error by interpreting a question in a sense different affected by influential observations. Such influential from that intended by the survey. For the SCF, extenobservations were detected with a graphical tech- sive pretesting of questions and thorough review of nique that allows inspection of the weighted distri- the data tends to reduce this source of error. bution of the underlying data. Most of the cases Nonresponse—either complete nonresponse to the survey or nonresponse to selected items within the survey—may be another important source of error. 36. The weights used in this article are based on a nonresponseadjusted weight that accounts for differential nonresponse across racial and ethnic groups by home ownership. See Arthur B. Kennickell, "Revisions to the SCF Weighting Methodology: Accounting 37. For more information on the revised standard error estimates, for Race/Ethnicity and Homeownership" (Board of Governors see Arthur B. Kennickell, "Revisions to the Variance Estimation of the Federal Reserve System, December 1999), available at Procedure for the SCF" (October 2000), at www.federalreserve.gov/ www.federalreserve.gov/pubs/oss/oss2/method.html. pubs/oss/oss2/method.html. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Federal Reserve Bulletin • January 2003 As noted in more detail above, the SCF uses weight- cal methods to impute missing data; the technique ing to adjust for differential nonresponse to the sur- used makes multiple estimates of missing data to vey. To address missing information on individual allow for an estimate of the uncertainty attributable to questions within the interview, the SCF uses statisti- this type of nonresponse. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

33 Staff Studies The staff members of the Board of Governors of the necessarily indicate concurrence by the Board of Federal Reserve System and of the Federal Reserve Governors, by the Federal Reserve Banks, or by Banks undertake studies that cover a wide range of members of their staffs. economic and financial subjects. From time to time, Single copies of the full text of each study are the studies that are of general interest are published available without charge. The titles available are in the Staff Studies series and summarized in the shown under "Staff Studies" in the list of Federal Federal Reserve Bulletin. The analyses and con- Reserve Board publications at the back of each clusions set forth are those of the authors and do not Bulletin. STUDY SUMMARY THE FUTURE OF RETAIL ELECTRONIC PAYMENTS SYSTEMS: INDUSTRY INTERVIEWS AND ANALYSIS Federal Reserve staff, for the Payments System Development Committee Federal Reserve System Electronic payments have become a prominent fea- of new technologies for the design and function of ture of the U.S. economic landscape, as consumers, payments systems. The staff study "The Future of businesses, and governments have increasingly used Retail Electronic Payments Systems: Industry Interelectronic instruments to make retail payments. Sur- views and Analysis" presents highlights of intervey research by the Federal Reserve published in views with representatives of forty-nine organiza- 2002, for example, indicates that the use of debit and tions and discusses areas in which, in the committee's credit cards and automatic deposit and withdrawal opinion, the Federal Reserve and other organizations (via the automated clearinghouse) grew fivefold from may be able to foster, or help reduce barriers to, inno- 1979 to 2000 and that the use of paper checks for vation in the payments system. The study also propayments probably peaked in the mid-1990s. Over vides a more detailed account of the discussions with the past decade especially, developers have experi- industry representatives and the recommendations mented with new ways of making electronic pay- they made. ments. As with many innovations, only a small num- The study presents nine key issues—including ber of these new methods of payment have enjoyed settlement timing and standards—and accompanying commercial success. Nevertheless, developers' incli- recommendations. No single issue was consistently nation to expand the range of options and techniques identified, no single recommendation was made by a for making electronic payments has been consistent significant number of interviewees, and, with a few with the long-term direction of payments activity in exceptions, no fundamental problems with or barriers the United States. to innovation in existing clearing and settlement The Federal Reserve's Payments System Develop- arrangements were noted. These results should not, ment Committee is concerned about regulatory and however, be interpreted as satisfaction with the status operational barriers to innovation that may inhibit quo. Rather, they point to the complexity and diffithe long-term development of the payments system. culty of innovation. The results also highlight the Accordingly, the committee asked Federal Reserve need to identify and address barriers to innovation, staff to seek the views of the private sector and other where appropriate, and to monitor closely clearing interested parties on developments in payments, and settlement arrangements to ensure that they clearing, and settlement services, focusing on poten- evolve in ways that support safe and efficient paytial barriers to further innovation and the implications ments today and in the future. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Announcements FOMC DIRECTIVE The new president of the council for 2003 is Karen L. McCormick, president and CEO, First Fed- The Federal Open Market Committee decided on eral Savings and Loan Association, Port Angeles, December 10, 2002, to keep its target for the federal Washington. The new vice president is William J. funds rate unchanged at 1]A percent. Small, chairman and CEO, First Federal Bank, Defi- The Committee continues to believe that this ance, Ohio. accommodative stance of monetary policy, coupled The seven new members, named for two-year with still robust underlying growth in productivity, terms beginning January 1, 2003, are the following: is providing important ongoing support to economic Michael J. Brown, Sr., President and CEO, Harbor Federal activity. The limited number of incoming eco- Savings Bank, Ft. Pierce, Fla. nomic indicators since the November meeting, taken together, are not inconsistent with the economy work- Richard J. Driscoll, President, First Savings Bank, FSB, Arlington, Tex. ing its way through its current soft spot. In these circumstances, the Committee believes Curtis L. Hage, Chairman and CEO, Home Federal Bank, Sioux Falls, S.Dak. that, against the background of its long-run goals of price stability and sustainable economic growth and Olan O. Jones, Jr., President and CEO, Eastman Credit of the information currently available, the risks are Union, Kingsport, Tenn. balanced with respect to the prospects for both goals D. Tad Lowrey, Chairman, President, and CEO, Jackson for the foreseeable future. Federal Bank, Brea, Calif. Voting for the FOMC monetary policy action were George W. Nise, President and CEO, Beneficial Savings Alan Greenspan, Chairman; William J. McDonough, Bank, Philadelphia, Pa. Vice Chairman; Ben S. Bernanke; Susan S. Bies; Robert F. Stoico, Chairman, President, and CEO, FIRST- Roger W. Ferguson, Jr.; Edward M. Gramlich; FED AMERICA BANCORP, INC., Swansea, Mass. Jerry L. Jordan; Donald L. Kohn; Robert D. McTeer, Jr.; Mark W. Olson; Anthony M. Santomero; Council members whose terms continue through and Gary H. Stern. 2003 are the following: John B. Dicus, President, Capitol Federal Savings Bank, Topeka, Kan. APPOINTMENT OF NEW MEMBERS AND DESIGNATION OF THE PRESIDENT AND VICE Karen L. McCormick, President and CEO, First Federal PRESIDENT OF THE THRIFT INSTITUTIONS Savings and Loan Association, Port Angeles, Wash. ADVISORY COUNCIL FOR 2003 Kevin E. Pietrini, President and CEO, Queen City Federal Savings Bank, Virginia, Minn. The Federal Reserve Board on December 11, 2002, William J. Small, Chairman and CEO, First Federal Bank, announced the names of seven new members of its Defiance, Ohio Thrift Institutions Advisory Council (TIAC) and des- David L. Vigren, President and CEO, ESL Federal Credit ignated a new president and vice president of the Union, Rochester, N.Y. council for 2003. The council is an advisory group made up of twelve representatives from thrift institutions. The APPOINTMENT OF NEW PRESIDENT OF THE panel was established by the Board in 1980 and FEDERAL RESERVE BANK OF CLEVELAND includes savings and loan, savings bank, and credit union representatives. The council meets three times The Federal Reserve Bank of Cleveland has each year with the Board of Governors to discuss appointed Sandra Pianalto as the Bank's new presidevelopments relating to thrift institutions, the hous- dent. The announcement was made on December 12, ing industry, mortgage finance, and certain regulatory 2002, by David Hoag, chairman of the Cleveland issues. Bank's board of directors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

35 The appointment was made by the directors of the and bank holding companies, and provides pay- Federal Reserve Bank of Cleveland and approved by ment services to financial institutions and the U.S. the Board of Governors of the Federal Reserve Sys- government. tem. She succeeds Jerry L. Jordan, who will retire The Federal Reserve Bank of Cleveland, including January 31, 2003, after having served as president its branch offices in Cincinnati and Pittsburgh and since 1992. She will assume her duties as president its check-processing center in Columbus, serves the on February 1, 2003. Fourth Federal Reserve District, which includes Pianalto has served as first vice president and chief Ohio, western Pennsylvania, eastern Kentucky, and operating officer of the Cleveland Bank since 1993. the northern panhandle of West Virginia. She joined the Federal Reserve Bank of Cleveland in 1983 as an economist. In 1984, she was appointed assistant vice president for public affairs, and in 1988 PUBLICATION OF FINAL REGULATION W she was named vice president and secretary to the board of directors. Before joining the Bank, Pianalto The Federal Reserve Board on November 27, 2002, was an economist at the Board of Governors and announced publication of a final Regulation W served on the staff of the Budget Committee of the (Transactions between Banks and Their Affiliates) U.S. House of Representatives. that comprehensively implements sections 23A and In announcing the appointment, Hoag said, "Sandy 23B of the Federal Reserve Act. The Board approved Pianalto brings to her new position an extensive the final rule at its meeting on October 31, 2002. knowledge of monetary policy as well as a keen Sections 23A and 23B and Regulation W restrict understanding of financial services and the changing (1) loans by a depository institution to its affiliates, payments system." (2) asset purchases by a depository institution from Robert Mahoney, deputy chairman of the Cleve- its affiliates, and (3) other transactions between a land board, led the search committee to find Jordan's depository institution and its affiliates. Regulation W successor. He said, "Sandy has served this Bank well unifies in one public document the Board's interpretafor nearly twenty years. We are proud of her accom- tions of sections 23 A and 23B. plishments and believe that her exceptional leader- Final Regulation W will have an effective date of ship will continue to be an asset to the Fourth District April 1, 2003. and the Federal Reserve System." The Board is also publishing a final rule that "It has been my great fortune to work with Jerry rescinds, as of April 1, 2003, the Board's existing Jordan," said Pianalto. "He is a thoughtful leader formal interpretations of sections 23A and 23B who inspires, teaches, and learns. I'm proud to have (which have been incorporated into Regulation W). the opportunity to continue the tradition of excellence In addition, the Board is seeking public comment that has defined our Bank and our employees." on a proposed rule that would prevent a depository Pianalto is active in the Fourth District's civic institution from using an exemption in Regulation W community, serving on the boards of directors of for the purchase of extensions of credit from an many community organizations, including United affiliate if purchases made under the exemption Way Services of Cleveland, the Northeast Ohio exceeded 100 percent of the institution's capital. Council on Higher Education, Leadership Cleveland, Comment is requested within thirty days of publicathe Rock and Roll Hall of Fame and Museum, and tion in the Federal Register. All three rules will be the Akron Center for Economic Education. published in the Federal Register shortly. She received a B.A. in economics from the University of Akron and an M.A. in economics from The George Washington University. She is a graduate of REVISIONS TO POLICIES AND PROCEDURES the Advanced Management Program at Duke Uni- REGARDING PRIORITY PROVISION AND versity's Fuqua School of Business, and she was RESTORATION OF TELECOMMUNICATIONS awarded an honorary doctor of humane letters from CIRCUITS the University of Akron. The Federal Reserve Bank of Cleveland is one of The Federal Reserve Board on December 3, 2002, twelve regional Reserve Banks that, along with the announced revisions to its policy and procedures for Board of Governors in Washington, comprise the sponsoring private-sector organizations under federal Federal Reserve System. As the nation's central bank, programs that provide priority telecommunications the Federal Reserve System formulates U.S. mone- services to entities that are important to national tary policy, regulates state-chartered member banks security and emergency preparedness. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Federal Reserve Bulletin • January 2003 The Board believes that these programs, which are PROPOSAL TO EXPAND OPERATING HOURS administered by the National Communications Sys- FOR THE ON-LINE FEDWIRE FUNDS SERVICE tem (NCS), will help facilitate the operation and liquidity of banks and the stability of financial mar- The Federal Reserve Board on December 16, 2002, kets, particularly during periods of substantial opera- requested comment on a proposal to expand the opertional disruptions. ating hours for the on-line Fedwire Funds Service. The Board currently sponsors a number of private- Under the proposal, the Fedwire Funds Service sector financial organizations for priority provision would open three and one-half hours earlier than the and restoration of telecommunications circuits under current opening time of 12:30 a.m. Eastern Time the NCS's Telecommunications Service Priority (ET). The closing time for the service would remain (TSP) program. The sponsorship covers circuits used unchanged at 6:30 p.m. ET. The earlier opening time in large-value interbank funds transfer, securities bid- is expected to further the smooth functioning and ding and transfer, and payment-related services. continued development of the payments system, as The Board is announcing an expansion of its spon- well as to improve efficiency and reduce risk in sorship criteria for the TSP program. In addition, the making payments and settlements. Board is adopting sponsorship criteria for the Gov- The Fedwire Funds Service is a real-time, largeernment Emergency Telecommunications Service value electronic funds transfer service, which is proprogram, which provides emergency access and pri- vided by the Federal Reserve Banks. Depository ority processing of local and long-distance calls over institutions and other authorized participants use this the terrestrial public switched network, and for the service to send and receive large-value, time-critical Wireless Priority Service program, which provides payments. Each payment transaction is settled indipriority routing of cellular calls during periods of vidually in central bank money and is final and severe network congestion. The new criteria are irrevocable once processed. effective upon publication in the Federal Register, Depository institutions and other Fedwire users which is expected shortly. would participate in the expanded operating hours The NCS was established in 1963 to provide prior- on a voluntary basis. However, Fedwire users that ity communications to support critical government choose not to participate in the earlier hours would functions during emergencies. In 1984, the NCS still receive any incoming payment transactions sent became an interagency group of twenty-two federal from participating institutions during the expanded departments and agencies, including the Federal hours. If the proposal is adopted, the suggested time- Reserve Board. To be eligible for Board sponsorship, frame for full implementation of the expanded operatorganizations must be essential to the performance of ing hours is the second quarter of 2004. national security and emergency preparedness needed The Board invites commenters' views on the proto maintain the national economic posture during a posed opening time of 9:00 p.m. ET and on the national or regional emergency. business, market, risk-management, and operational issues that should be considered in evaluating the benefits and drawbacks of a longer Fedwire day. PROPOSED REVISIONS TO THE OFFICIAL STAFF Comment on the proposal is requested within COMMENTARY TO REGULATION Z seventy-five days of publication in the Federal Register, which is expected shortly. The Federal Reserve Board on November 26, 2002, published proposed revisions to the official staff commentary that interprets the requirements of Regula- WORKING GROUP TO STUDY RISK IN THE tion Z, which implements the Truth in Lending Act. CLEARANCE AND SETTLEMENT OF U.S. Comment is requested by January 27, 2003. GOVERNMENT SECURITIES The proposed update discusses the status of certain credit card-related fees and the rules for replacing an The Federal Reserve Board announced on Novemaccepted credit card with one or more cards. In ber 26, 2002, that it had established a private-sector addition, the proposed revisions discuss the disclo- working group to recommend steps to mitigate risks sure of private mortgage insurance premiums and the in the clearance and settlement of U.S. government selection of Treasury security yields in determining securities. whether a mortgage loan is covered by Regulation Z The working group will explore ways the two provisions that implement the Home Ownership and major clearing banks could substitute for each other Equity Protection Act. if the services of either were interrupted or termi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 37 nated. The working group has been asked to prepare pants are critically dependent on one of two clearing a final report before the end of 2003. banks for settlement of their trades and financing of Michael Urkowitz, senior adviser to Deloitte Con- their positions. The White Paper requested comment sulting, agreed to chair the working group. The work- on whether structural change was needed to address ing group will include senior representatives of the vulnerabilities. the two major clearing banks (JP Morgan Chase and The comments urged the authorities to concentrate The Bank of New York), the Government Securities on mitigating risks within the current structure, rather Clearing Corporation, securities dealers, interdealer than considering structural change, at least in the brokers, custodian banks, The Bond Market Associa- short run. Several commenters suggested formation tion, and the Investment Company Institute. of an industry group to explore the specific changes The other members of the working group are the that would need to occur to enable the two clearing following: banks to substitute for each other in the event that the services of either were interrupted or terminated. The Mary Ambrecht, Managing Director, Salomon Smith formation of the working group is responsive to that Barney (Citigroup) suggestion. Deborah Cunningham, Senior Vice President, Federated Investors RELEASE OF MINUTES OF DISCOUNT RATE Frank DiMarco, Managing Director, Merrill Lynch MEETINGS Dennis Dirks, Chief Executive Officer, Government Securities Clearing Corp. The Federal Reserve Board on November 15, 2002, Mary Fenoglio, Executive Vice President, State Street released the minutes of its discount rate meetings from September 3 to September 23, 2002. Ian Lowitt, Global Treasurer, Lehman Brothers Lawrence Maffia, Executive Vice President, Investment Company Institute ENFORCEMENT ACTION Stephen Merkel, General Counsel and Executive Vice President, Cantor Fitzgerald The Federal Reserve Board on November 22, 2002, announced the issuance of an Order of Prohibition Ernest Pittarelli, Managing Director, UBS Warburg LLC against Eduardo Del Rio, a former employee and Brian Ruane, Senior Vice President, The Bank of New institution-affiliated party of Deutsche Bank, AG, York New York, New York. Jane Buyers Russo, Managing Director, JP Morgan Chase Mr. Del Rio, without admitting to any allegations, David Simons, Managing Director, Goldman Sachs & Co. consented to the issuance of the Order based on his violations of law, unsafe and unsound practices, and Paul Saltzman, General Counsel and Executive Vice President, The Bond Market Association breaches of his fiduciary duty to Deutsche Bank and its customers in connection with his embezzlement of Thomas Wipf, Managing Director, Morgan Stanley & Co. approximately $8.5 million for his personal use. Staff of the Federal Reserve, the Securities and Exchange Commission (SEC), and the U.S. Depart- DELAY IN PUBLICATION OF G. 17 STATISTICAL ment of the Treasury will participate in the working RELEASE group as observers and technical advisers. The Federal Reserve, Treasury, and SEC have a The Federal Reserve Board announced on Novemparticular interest in promoting the smooth and safe ber 19, 2002, that it would publish the annual revioperation of the U.S. government securities market sion to the G.17 statistical release, Industrial Progiven the market's critical role for conducting mone- duction and Capacity Utilization, on Thursday, tary policy operations, financing government activi- December 5, at 2 p.m. EST. The revision had previties, and providing benchmark prices and hedging ously been scheduled for release on November 26. opportunities for other securities markets. The revised estimates will be classified according On May 13, 2002, the Board and the SEC issued to the 2002 North American Industrial Classification a White Paper on Structural Change in the Settle- System (NAICS). Previously, the estimates from ment of Government Securities. The White Paper 1987 forward were classified according to the 1987 expressed concerns about operational, financial, and Standard Industrial Classification (SIC) System. structural vulnerabilities associated with the status The revision will be made available on the Board's quo, in which all of the most active market partici- web site at www.federalreserve.gov/releases/G17 • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Legal Developments FINAL RULE—AMENDMENT TO REGULATIONS basic objectives of monetary policy and the mainte- A AND D nance of a sound and orderly financial system. The Board of Governors is amending 12 C.F.R. Parts 201 Section 201.2—Definitions. and 204, its Regulations A and D (Extensions of Credit by Federal Reserve Banks; Reserve Requirements of Deposi- For purposes of this part, the following definitions tory Institutions). The Board is publishing final amend- shall apply: ments to Regulation A that replace the existing adjustment and extended credit programs with programs called pri- (a) Appropriate federal banking agency has the same mary and secondary credit and also reorganize and stream- meaning as in section 3 of the Federal Deposit Insurline existing provisions of Regulation A. The final rule ance Act (FDI Act) (12 U.S.C. 1813(q». leaves the existing seasonal credit program essentially un- (b) Critically undercapitalized insured depository instituchanged. The final rule is intended to improve the function- tion means any insured depository institution as deing of the discount window and does not indicate a change fined in section 3 of the FDI Act (12 U.S.C. in the stance of monetary policy. 1813(c)(2)) that is deemed to be critically undercapital- The Board also is amending the penalty provision of ized under section 38 of the FDI Act (12 U.S.C. Regulation D, which is calculated based on the discount 1831o(b)(l)(E)) and its implementing regulations. rate, to conform the calculation of penalties for reserve (c) (1) Depository institution means an institution that deficiencies to the new discount rate framework. maintains reservable transaction accounts or nonper- Effective January 9, 2003, 12 C.F.R. Parts 201 and 204 sonal time deposits and is: are amended as follows: (i) An insured bank as defined in section 3 of the FDI Act (12 U.S.C. 1813(h)) or a bank that is Part 201—Extensions of Credit by Federal Reserve eligible to make application to become an Banks (Regulation A) insured bank under section 5 of such act (12 U.S.C. 1815); 1.The authority citation for Part 201 is revised to read as (ii) A mutual savings bank as defined in section 3 follows: of the FDI Act (12 U.S.C. 1813(f)) or a bank that is eligible to make application to become an insured bank under section 5 of such act Authority. 12U.S.C. 248(i)-(j), 343 et seq., 347a, 347b, (12 U.S.C. 1815); 347c, 348 et seq., 357, 374, 374a, and 461. (iii) A savings bank as defined in section 3 of the FDI Act (12 U.S.C. 1813(g)) or a bank that is 2. Sections 201.1 through 201.5 are revised to read as eligible to make application to become an follows: insured bank under section 5 of such act (12 U.S.C. 1815); Section 201.1—Authority, purpose and scope. (iv) An insured credit union as defined in section 101 of the Federal Credit Union Act (a) Authority. This part is issued under the authority of (12 U.S.C. 1752(7)) or a credit union that is sections 10A, 10B, ll(i), ll(j), 13, 13A, 14(d), and eligible to make application to become an 19 of the Federal Reserve Act (12 U.S.C. 248(i)-(j), insured credit union pursuant to section 201 343 et seq., 347a, 347b, 347c, 348 et seq., 357, 374, of such act (12 U.S.C. 1781); 374a, and 461). (v) A member as defined in section 2 of the (b) Purpose and scope. This part establishes rules under Federal Home Loan Bank Act (12 U.S.C. which a Federal Reserve Bank may extend credit to 1422(4)); or depository institutions and others. Except as otherwise (vi) A savings association as defined in section 3 provided, this part applies to United States branches of the FDI Act (12 U.S.C. 1813(b)) that is an and agencies of foreign banks that are subject to re- insured depository institution as defined in serve requirements under Regulation D (12 CFR part section 3 of the act (12 U.S.C. 1813(c)(2)) or 204) in the same manner and to the same extent as this is eligible to apply to become an insured part applies to depository institutions. The Federal depository institution under section 5 of the Reserve System extends credit with due regard to the act (12 U.S.C. 15(a)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 39 (2) The term "depository institution" does not in- quality, mortgage notes covering one- to fourclude a financial institution that is not required to family residences, state and local government semaintain reserves under section 204.1(c)(4) of curities, and business, consumer, and other cus- Regulation D (12 C.F.R. 204.1(c)(4)) because it is tomer notes. organized solely to do business with other finan- (3) If a Federal Reserve Bank concludes that a discial institutions, is owned primarily by the finan- count would meet the needs of a depository institucial institutions with which it does business, and tion or an institution described in section 13A of does not do business with the general public. the Federal Reserve Act (12 U.S.C. 349) more effectively, the Reserve Bank may discount any (d) Transaction account and nonpersonal time deposit paper indorsed by the institution, provided the have the meanings specified in Regulation D paper meets the requirements specified in the Fed- (12 C.F.R. Part 204). eral Reserve Act. (e) Undercapitalized insured depository institution means any insured depository institution as defined in section (b) No obligation to make advances or discounts. A Fed- 3 of the FDI Act (12 U.S.C. 1813(c)(2)) that: eral Reserve Bank shall have no obligation to make, (1) Is not a critically undercapitalized insured deposi- increase, renew, or extend any advance or discount to tory institution; and any depository institution. (2) (i) Is deemed to be undercapitalized under sec- (c) Information requirements. tion 38 of the FDI Act (12 U.S.C. (1) Before extending credit to a depository institution, 18310(b)(1)(C)) and its implementing regula- a Federal Reserve Bank should determine if the tions; or institution is an undercapitalized insured deposi- (ii) Has received from its appropriate federal tory institution or a critically undercapitalized inbanking agency a composite CAMELS rating sured depository institution and, if so, follow the of 5 under the Uniform Financial Institutions lending procedures specified in section 201.5. Rating System (or an equivalent rating by its (2) Each Federal Reserve Bank shall require any inforappropriate federal banking agency under a mation it believes appropriate or desirable to encomparable rating system) as of the most sure that assets tendered as collateral for advances recent examination of such institution. or for discount are acceptable and that the borrower uses the credit provided in a manner consis- (f) Viable, with respect to a depository institution, means tent with this part. that the Board of Governors or the appropriate federal (3) Each Federal Reserve Bank shall: banking agency has determined, giving due regard to (i) Keep itself informed of the general character the economic conditions and circumstances in the mar- and amount of the loans and investments of a ket in which the institution operates, that the institution depository institution as provided in section is not critically undercapitalized, is not expected to 4(8) of the Federal Reserve Act (12 U.S.C. become critically undercapitalized, and is not expected 301); and to be placed in conservatorship or receivership. Al- (ii) Consider such information in determining though there are a number of criteria that may be used whether to extend credit. to determine viability, the Board of Governors believes that ordinarily an undercapitalized insured depository (d) Indirect credit for others. Except for depository instituinstitution is viable if the appropriate federal banking tions that receive primary credit as described in section agency has accepted a capital restoration plan for the 201.4(a), no depository institution shall act as the depository institution under 12 U.S.C. 1831o(e)(2) and medium or agent of another depository institution in the depository institution is complying with that plan. receiving Federal Reserve credit except with the permission of the Federal Reserve Bank extending credit. Section 201.3—Extensions of credit generally. Section 201.4—Availability and terms of credit. (a) Advances to and discounts for a depository institution. (1) A Federal Reserve Bank may lend to a depository (a) Primary credit. A Federal Reserve Bank may extend institution either by making an advance secured by primary credit on a very short-term basis, usually acceptable collateral under section 201.4 of this overnight, as a backup source of funding to a deposipart or by discounting certain types of paper. A tory institution that is in generally sound financial Federal Reserve Bank generally extends credit by condition in the judgment of the Reserve Bank. Such making an advance. primary credit ordinarily is extended with minimal (2) An advance to a depository institution must be administrative burden on the borrower. A Federal Resecured to the satisfaction of the Federal Reserve serve Bank also may extend primary credit with matu- Bank that makes the advance. Satisfactory collat- rities up to a few weeks as a backup source of funding eral generally includes United States government to a depository institution if, in the judgment of the and federal-agency securities, and, if of acceptable Reserve Bank, the depository institution is in generally Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Federal Reserve Bulletin • January 2003 sound financial condition and cannot obtain such credit Section 201.5—Limitations on availability and in the market on reasonable terms. Credit extended assessments. under the primary credit program is granted at the primary credit rate. (a) Lending to undercapitalized insured depository institu- (b) Secondary credit. A Federal Reserve Bank may extend tions. A Federal Reserve Bank may make or have secondary credit on a very short-term basis, usually outstanding advances to or discounts for a depository overnight, as a backup source of funding to a deposi- institution that it knows to be an undercapitalized tory institution that is not eligible for primary credit if, insured depository institution, only: in the judgment of the Reserve Bank, such a credit (1) If, in any 120-day period, advances or discounts extension would be consistent with a timely return to a from any Federal Reserve Bank to that depository reliance on market funding sources. A Federal Reserve institution are not outstanding for more than Bank also may extend longer-term secondary credit if 60 days during which the institution is an underthe Reserve Bank determines that such credit would capitalized insured depository institution; or facilitate the orderly resolution of serious financial (2) During the 60 calendar days after the receipt of a difficulties of a depository institution. Credit extended written certification from the chairman of the under the secondary credit program is granted at a rate Board of Governors or the head of the appropriate above the primary credit rate. federal banking agency that the borrowing deposi- (c) Seasonal credit. A Federal Reserve Bank may extend tory institution is viable; or seasonal credit for periods longer than those permitted (3) After consultation with the Board of Governors. In under primary credit to assist a smaller depository unusual circumstances, when prior consultation institution in meeting regular needs for funds arising with the Board is not possible, a Federal Reserve from expected patterns of movement in its deposits and Bank should consult with the Board as soon as loans. An interest rate that varies with the level of possible after extending credit that requires consulshort-term market interest rates is applied to seasonal tation under this paragraph (a)(3). credit. (b) Lending to critically undercapitalized insured deposi- (1) A Federal Reserve Bank may extend seasonal tory institutions. A Federal Reserve Bank may make or credit only if: have outstanding advances to or discounts for a depos- (i) The depository institution's seasonal needs itory institution that it knows to be a critically underexceed a threshold that the institution is ex- capitalized insured depository institution only: pected to meet from other sources of liquidity (1) During the 5-day period beginning on the date the (this threshold is calculated as a certain per- institution became a critically undercapitalized incentage, established by the Board of Gover- sured depository institution; or nors, of the institution's average total deposits (2) After consultation with the Board of Governors. In in the preceding calendar year); and unusual circumstances, when prior consultation (ii) The Federal Reserve Bank is satisfied that the with the Board is not possible, a Federal Reserve institution's qualifying need for funds is sea- Bank should consult with the Board as soon as sonal and will persist for at least four weeks. possible after extending credit that requires consul- (2) The Board may establish special terms for sea- tation under this paragraph (b)(2). sonal credit when depository institutions are expe- (c) Assessments. The Board of Governors will assess the riencing unusual seasonal demands for credit in a Federal Reserve Banks for any amount that the Board period of liquidity strain. pays to the FDIC due to any excess loss in accordance with section 10B(b) of the Federal Reserve Act. Each (d) Emergency credit for others. In unusual and exigent Federal Reserve Bank shall be assessed that portion of circumstances and after consultation with the Board of the amount that the Board of Governors pays to the Governors, a Federal Reserve Bank may extend credit FDIC that is attributable to an extension of credit by to an individual, partnership, or corporation that is not that Federal Reserve Bank, up to 1 percent of its a depository institution if, in the judgment of the capital as reported at the beginning of the calendar year Federal Reserve Bank, credit is not available from in which the assessment is made. The Board of Goverother sources and failure to obtain such credit would nors will assess all of the Federal Reserve Banks for adversely affect the economy. If the collateral used to the remainder of the amount it pays to the FDIC in the secure emergency credit consists of assets other than ratio that the capital of each Federal Reserve Bank obligations of, or fully guaranteed as to principal and bears to the total capital of all Federal Reserve Banks interest by, the United States or an agency thereof, at the beginning of the calendar year in which the credit must be in the form of a discount and five or assessment is made, provided, however, that if any more members of the Board of Governors must affir- assessment exceeds 50 percent of the total capital and matively vote to authorize the discount prior to the surplus of all Federal Reserve Banks, whether to disextension of credit. Emergency credit will be extended tribute the excess over such 50 percent shall be made at a rate above the highest rate in effect for advances to at the discretion of the Board of Governors. depository institutions. 3. Sections 201.6, 201.7, 201.8, and 201.9 are removed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 41 Sections 201.6—201.9 [Removed] Section 204.7—Penalties. 4. Section 201.51 is revised to read as follows: (ci) ^ ^ ^ (1) * * * Federal Reserve Banks are authorized to as- Section 201.51—Interest rates applicable to credit sess charges for deficiencies in required reserves at extended by a Federal Reserve Bank. a rate of 1 percentage point per year above the primary credit rate, as provided in section (a) Primary credit. The rate for primary credit provided to 201.51(a) of this chapter, in effect for borrowings depository institutions under section 201.4(a) is a rate from the Federal Reserve Bank on the first day of above the target federal funds rate of the Federal Open the calendar month in which the deficiencies oc- Market Committee. curred. (b) Secondary credit. The rate for secondary credit extended to depository institutions under section 201.4(c) is a rate above the primary credit rate. FINAL RULE-AMENDMENT TO REGULATION A (c) Seasonal credit. The rate for seasonal credit extended The Board of Governors is amending 12 C.F.R. Part 201, to depository institutions under section 201.4(b) is a its Regulation A (Extensions of Credit by Federal Reserve flexible rate that takes into account rates on market Banks), to reflect its approval of a decrease in the basic sources of funds. discount rate at each Federal Reserve Bank. The Board (d) Primary credit rate in a financial emergency. acted on requests submitted by the Boards of Directors of (1) The primary credit rate at a Federal Reserve Bank the twelve Federal Reserve Banks. is the target federal funds rate of the Federal Open Effective November 6, 2002, 12 C.F.R. Part 201 is Market Committee if: amended as follows: (i) In a financial emergency the Reserve Bank has established the primary credit rate at that Part 201—Extensions of Credit by Federal Reserve rate; and Banks (Regulation A) (ii) The Chairman of the Board of Governors (or, in the Chairman's absence, his authorized designee) certifies that Primary credit rate in a 1. The authority citation for 12 C.F.R. Part 201 continues quorum of the Board is not available to act on to read as follows: the Reserve Bank's rate establishment. (2) For purposes of this paragraph (d), a financial Authority: 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d, emergency is a significant disruption to the U.S. 348 et seq., 357, 374, 374a and 461. money markets resulting from an act of war, military or terrorist attack, natural disaster, or other 2. Section 201.51 is revised to read as follows: catastrophic event. Section 201.51—Adjustment credit for depository 5. Section 201.52 is removed. institutions. Section 201.52—[Removed] The rates for adjustment credit provided to depository institutions under section 201.3(a) are: Part 204—Reserve Requirements of Depository Institutions (Regulation D) Federal Reserve Bank Rate Effective 1. The authority citation for Part 204 continues to read as Boston .75 November 7, 2002 New York .75 November 6, 2002 follows: Philadelphia .75 November 7. 2002 Cleveland .75 November 7, 2002 Richmond .75 November 7, 2002 Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, Atlanta .75 November 7, 2002 and 3105. Chicago .75 November 7, 2002 St. Louis .75 November 7, 2002 Minneapolis .75 November 7, 2002 Kansas City .75 November 7, 2002 2. Amend section 204.7 by revising the second sentence of Dallas .75 November 6, 2002 paragraph (a)(1) to read as follows: San Francisco .75 November 6, 2002 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Federal Reserve Bulletin • January 2003 INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (July 1, 2002 - September 30, 2002) Bulletin Volume Applicant Merged or Acquired Bank of Activity Date of Approval and Page Bank of Orange County, Cerritos Valley Bank, July 31, 2002 88,417 Fountain Valley, California Artesia, California Herky Hawk Financial Corporation, New Vienna Savings Bank, September 25, 2002 88, 463 Monticello, Iowa New Vienna, Iowa Casey State Bank, Casey, Illinois Biggsville Financial Corporation, Biggsville, Illinois First State Bank of Biggsville, Biggsville, Illinois Nordea Bank Finland Pic, American Scandinavia Banking Corp., July 25, 2002 88, 418 Helsinki, Finland New York, New York 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) Baok(s) Reserve Bank Effective Date Adbanc, Inc., VE;I, Inc., Kansas City November 12, 2002 Ogallala, Nebraska Colorado Springs, Colorado Adams Bank & Trust Company, Ogallala, Nebraska BankFIRST Bancorp, Inc., BankFIRST, Atlanta November 4, 2002 Winter Park, Florida Winter Park, Florida Backlund Investment Co., Astoria Investment Company, Chicago November 25, 2002 Peoria, Illinois Astoria, Illinois Farmers State Bank, Astoria, Astoria, Illinois Bartonville Investment Co., ^eoria, Illinois Bartonville Bank, Bartonville, Illinois Backlund-White, Inc., Peoria, Illinois Glasford State Bank, Glasford, Illinois Backlund-Scott Company, Wyoming, Illinois Wyoming Bank & Trust Company, Wyoming, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 43 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Dunlap Bank, Dunlap, Illinois Hopedale Investment Company, Peoria, Illinois Community Bank of Hopedale, Hopedale, Illinois BankWest Nevada Corporation, Alliance Bank of Arizona, San Francisco November 26, 2002 Las Vegas, Nevada Phoenix, Arizona BNC Bancorp, Bank of North Carolina, Richmond November 5, 2002 Thomasville, North Carolina Thomasville, North Carolina BTC Financial Corporation, Midamerica Financial Corporation, Chicago November 12, 2002 Des Moines, Iowa Des Moines, Iowa Bankers Trust Company, N.A., Cedar Rapids, Iowa Commerce Bancorp, Inc., Bank of Commerce, Kansas City November 20, 2002 Duncan, Oklahoma Duncan, Oklahoma Community Bankshares, Inc., Community Banks of Tracy, Kansas City November 22, 2002 Greenwood Village, Colorado Tracy, California Davis Bancorporation, Century Capital Financial, Inc., Kansas City November 1, 2002 Davis, Oklahoma Kilgore, Texas Century Capital Financial-Delaware, Inc., Wilmington, Delaware City National Bank, Kilgore, Texas Eagle Community Bancshares, Inc., Eagle Community Bank, Minneapolis November 27, 2002 Brooklyn Park, Minnesota Maple Grove, Minnesota Farmers Bancorp, Inc., First State Bank, St. Louis November 21, 2002 Blytheville, Arkansas Kenton, Tennessee Franklin Resources, Inc., Capital Corporation, San Francisco December 3, 2002 San Mateo, California La Jolla, California Imperial Capital Bank, La Jolla, California Friedman Billings Ramsey Group, ITLA Capital Corporation, Richmond December 3, 2002 Inc., La Jolla, California Arlington, Virginia FBR Ashton, Limited Partnership, Arlington, Virginia FBR Opportunity Fund, Ltd., Arlington, Virginia FBR Small Cap Financial Fund, Arlington, Virginia GB&T Bancshares, Inc., Home Town Bank of Villa Rica, Atlanta November 6, 2002 Gainesville, Georgia Villa Rica, Georgia Gravett Bancshares, Inc., Bank of Gravett, St. Louis December 3, 2002 Gravette, Arkansas Gravette, Arkansas Hazlehurst Investors, Inc., Bank of Hazlehurst, Atlanta November 6, 2002 Hazlehurst, Georgia Hazlehurst, Georgia KeyCorp, Union Bancshares, Ltd., Cleveland November 25, 2002 Cleveland, Ohio Denver, Colorado Buffalo Acquiror Sub, Inc., Cleveland, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Federal Reserve Bulletin • January 2003 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Mahaska Investment Company Belle Plaine Service Corporation, Chicago November 21, 2002 ESOP, Belle Plaine, Iowa Oskaloosa, Iowa Citizens Bank & Trust Company, Mahaska Investment Company, Hudson, Iowa Oskaloosa, Iowa Midamerica Financial Corporation, Bankers Trust Company, N.A., Chicago November 12, 2002 Des Moines, Iowa Cedar Rapids, Iowa Northfield Holdings Corp, Staten Island, New York Northfield Savings Bank, New York November 21, 2002 Staten Island, New York NSB Holding Corp, Northfield Holdings Corp, New York November 21, 2002 Staten Island, New York Staten Island, New York River Bailey Bancorp, Inc., State Bank of Seaton, Chicago November 20, 2002 Davenport, Iowa Seaton, Illinois Southwest Florida Community Sanibel Captiva Community Bank, Atlanta November 26, 2002 Bancorp, Inc., Sanibel, Florida Fort Myers, Florida Sun Financial Corporation, Quad County State Bank, St. Louis November 19, 2002 St. Peters, Missouri Viburnum, Missouri Synergy, MHC, First Bank of Central Jersey, New York November 29, 2002 Cranford, New Jersey North Brunswick, New Jersey Synergy Financial Group, Inc., Synergy Bank, Cranford, New Jersey Cranford, New Jersey Synovus Financial Corp., United Financial Holdings, Inc., Atlanta November 6, 2002 Columbus, Georgia St. Petersburg, Florida United Bank and Trust Company, St. Petersburg, Florida United Bank of the Gulf Coast, Sarasota, Florida TCF Financial Corporation, MainStreet BankShares, Inc., Minneapolis November 21, 2002 Wayzata, Minnesota Martinsville, Virginia Smith River Community Bank, N.A., Martinsville, Virginia Franklin Community Bank, N.A., Rocky Mount, Virginia Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Elfective Date Davis Bancorporation, FBC Financial Corporation, Kansas City November 1, 2002 Davis, Oklahoma Claremore, Oklahoma 1st Bank Oklahoma, Claremore, Oklahoma Midwest Banc Holdings, Inc. Big Foot Financial Corp., Chicago November 21, 2002 Elmwood Park, Illinois Long Grove, Illinois Fairfield Savings Bank, Long Grove, Illinois NSB Holding Corp, Liberty Bank, New York November 21, 2002 Staten Island, New York Avenel, New Jersey Northfield Holdings Corp, Staten Island, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 45 Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date ITLA Capital Corporation, Imperial Capital Bank, La Jolla, San Francisco December 3, 2002 La Jolla, California California APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Applicant(s) Bank(s) Reserve Bank Effective Date The Citizens Banking Company, The Castalia Banking Company, Cleveland December 2, 2002 Sandusky, Ohio Castalia, Ohio Farmers Bank & Trust Company, First State Bank, St. Louis November 21, 2002 Blytheville, Arkansas Kenton, Tennessee Heritage Bank of Commerce, Heritage Bank South Valley, San Francisco November 1, 2002 San Jose, California Morgan Hill, California Midwest Bank and Trust Company, Fairfield Savings Bank, Chicago November 21, 2002 Elmwood Park, Illinois Long Grove, Illinois PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the (Ct. Fed. CI., filed October 3, 2001). Action challenging on Federal Reserve Banks in which the Board of Governors is not constitutional grounds the failure to pay interest on reserve named a party. accounts held at Federal Reserve Banks. Artis v. Greenspan, No. 01-CV-0400 (ESG) (D.D.C., com- Albrecht v. Board of Governors, No. 02-5325 (D.C. Cir., filed plaint filed February 22, 2001). Employment discrimination October 18, 2002). Appeal of district court order dismissing action. On August 15, 2001, the district court consolidated challenge to the method of funding of the retirement plan the action with Artis v. Greenspan, No. 99-CV-2073 (EGS) for certain Board employees. (D.D.C., filed August 3, 1999), also an employment discrimination action. Caesar v. United States, No. 02-0612 (EGS) (D.D.C.), removed on April 1, 2002, from No. 02-1502 (D.C. Superior Fraternal Order of Police v. Board of Governors, Court, originally filed March 1, 2002). Action seeking dam- No. 1:98CV03116 (WBB) (D.D.C., filed December 22, ages for personal injury. 1998). Declaratory judgment action challenging Board la- Community Bank & Trust v. United States, No. 01-571C bor practices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A3 GUIDE TO TABLES Federal Finance A25 Federal debt subject to statutory limitation DOMESTIC FINANCIAL STATISTICS A25 Gross public debt of U.S. Treasury— Types and ownership Money Stock and Bank Credit A26 U.S. government securities A4 Reserves and money stock measures dealers—Transactions A5 Reserves of depository institutions and Reserve Bank A27 U.S. government securities dealers— credit Positions and financing A6 Reserves and borrowings—Depository A28 Federal and federally sponsored credit institutions agencies—Debt outstanding Policy Instruments Securities Markets and Corporate Finance A7 Federal Reserve Bank interest rates A29 New security issues—Tax-exempt state and local A8 Reserve requirements of depository institutions governments and corporations A9 Federal Reserve open market transactions A30 Open-end investment companies—Net sales and assets Federal Reserve Banks A30 Domestic finance companies—Assets and liabilities A31 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 A3 2 Mortgage markets—New homes A3 3 Mortgage debt outstanding A12 Aggregate reserves of depository institutions and monetary base Consumer Credit A13 Money stock measures A34 Total outstanding Commercial Banking Institutions— A34 Terms Assets and Liabilities Flow of Funds A15 All commercial banks in the United States A16 Domestically chartered commercial banks A35 Funds raised in U.S. credit markets A17 Large domestically chartered commercial banks A37 Summary of financial transactions A19 Small domestically chartered commercial banks A3 8 Summary of credit market debt outstanding A20 Foreign-related institutions A39 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 A40 Output, capacity, and capacity utilization A24 Stock market—Selected statistics A42 Industrial production—Indexes and gross value Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A51 Federal Reserve Bulletin • January 2003 INTERNATIONAL STATISTICS Reported by Nonbanking Business Enterprises in the United States Summary Statistics A52 Liabilities to unaffiliated foreigners A44 U.S. international transactions A53 Claims on unaffiliated foreigners A45 U.S. reserve assets A45 Foreign official assets held at Federal Reserve Securities Holdings and Transactions Banks A54 Foreign transactions in securities A46 Selected U.S. liabilities to foreign official A55 Marketable U.S. Treasury bonds and institutions notes—Foreign transactions Reported by Banks in the United States Interest and Exchange Rates A46 Liabilities to, and claims on, foreigners A56 Foreign exchange rates A47 Liabilities to foreigners A49 Banks' own claims on foreigners A50 Banks' own and domestic customers' claims on A57 GUIDE TO SPECIAL TABLES AND foreigners STATISTICAL RELEASES A50 Banks' own claims on unaffiliated foreigners A51 Claims on foreign countries—Combined domestic offices and foreign branches A58 INDEX TO STATISTICAL TABLES 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

A3 2 Domestic Financial Statistics • January 2003 1.10 RESERVES AND MONEY STOCK MEASURES Percent annual rate of change, seasonally adjusted1 2001 2002 2002 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q4 Qi Q2 Q3' June July' Aug.' Sept.' Oct. Reserves of depository institutions2 1 Total -31.2 -9.7 -16.3 -.5 4.6 12.0 12.1 -23.2 -10.9 2 Required 22.1 -9.3 -15.4 -3.1 5.7 8.3 4.2 -19.1 -13.9 3 Nonborrowed -21.4 -9.4 -16.9 -1.9 3.7 10.6 7.8 -20.2 -8.3 4 Monetary base3 6.4 9.1 8.1 7.2 11.2 8.5 4.3 .7 3.7 Concepts of money4 5 Ml 2.1 5.7' -.6 2.9 7.2 8.0 -13.5 8.5 8.7 6 M2 9.5 5.5r 3.3' 10.5 7.7' 13.1 9.7 5.3 10.4 7 M3 12.2' 4.7r 3.1' 8.3 5.9 8.5 10.6 4.1 1.4 Nontransaction components 8 In M25 11.5 5.4' 4.4' 12.6 7.9' 14.5 15.9 4.4 10.8 9 In M3 only6 18.3r 3.r 2.5' 3.6 2.1' -1.6 12.6 1.6 -18.3 Time and savings deposits Commercial banks 10 Savings, including MMDAs 23.2 20.4 13.3 21.0 13.6 17.2 32.8 15.8 15.9 11 Small time7 -12.1 -15.3 -4.9 -5.3 -.6 -7.2 -9.8 -14.8 -17.2 12 Large time8 9 -9.3 4.8 11.3 4.7 -2.9' 7.9 3.9 -2.2 -6.8 Thrift institutions 13 Savings, including MMDAs 27.3 25.6 22.1 21.6 16.2 22.9 24.5 25.5 43.3 14 Small time7 -11.0 -15.7 -14.8 -8.2 -10.8 -4.3 -3.5 -3.1 2.4 15 Large time8 2.6 -.8 -8.4 -1.8 -16.1 1.1 16.3 10.7 19.1 Money market mutual funds 16 Retail 7.9 -11.0' -10.6' 8.7 3.0' 23.9 -.7 -18.5 -2.1 17 Institution-only 49.5 -.3 2.8 .1 10.7 -4.8 -1.5 -13.8 -36.3 Repurchase agreements and eurodollars 18 Repurchase agreements'" .7 9.6 -5.9' 25.8 5.5' -1.6 81.4 59.1 -5.2 19 Eurodollars10 -8.0r 7.1' -6.1' -17.3 -27.7' -17.5 -3.7 -12.3 -1.2 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- time deposits, and retail money fund balances, each seasonally adjusted separately, and ing during preceding month or quarter. adding this result to seasonally adjusted Ml. 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with regula- M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2) tory changes in reserve requirements (See also table 1.20.) balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom component of the money stock, plus (3) (for all quarterly reporters on the "Report of and Canada. Excludes amounts held by depository institutions, the U.S. government, money Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference by summing large time deposits, institutional money fund balances, RP liabilities, and between current vault cash and the amount applied to satisfy current reserve requirements. eurodollars, each seasonally adjusted separately, and adding this result to seasonally adjusted 4. Composition of the money stock measures is as follows: M2. Ml: (1) currency outside the U.S. Treasury. Federal Reserve Banks, and the vaults of 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail depository institutions. (2) travelers checks of nonbank issuers, (3) demand deposits at all money fund balances, each seasonally adjusted separately. commercial banks other than those owed to depository institutions, the U.S. government, and 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities foreign banks and official institutions, less cash items in the process of collection and Federal (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of term) of U.S. addressees, each seasonally adjusted separately. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, 7. Small time deposits—including retail RPs—are those issued in amounts of less than credit union share draft accounts, and demand deposits at thrift institutions. Seasonally $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions adjusted Ml is computed by summing currency, travelers checks, demand deposits, and are subtracted from small time deposits. OCDs, each seasonally adjusted separately. 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those M2: Ml plus (1) savings (including MMDAs). (2) small-denomination time deposits (time booked at international banking facilities. deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail 9. Large time deposits at commercial banks less those held by money market funds, money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh depository institutions, the U.S. government, and foreign banks and official institutions. balances at depository institutions and money market funds. 10. Includes both overnight and term. Seasonally adjusted M2 is calculated by summing savings deposits, small-denomination 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 2002 2002 Aug. Sept. Oct. Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 656,967 659,221 659,702 657,910 655,922 661,636 655,642 661,669 657,682 662,436 U.S. government securities2 2 Bought outright—System account3 601,681 604,667 609,157 605,114 605,242 605,400 609,110 609,633 610,273 608,693 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 16,532 16,617 11,242 15,500 12,214 17,607 7,429 12,536 8,143 14,071 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 191 14 13 7 1 0 45 5 4 3 9 Seasonal credit 187 168 120 162 168 171 136 124 116 98 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 -311 -262 363 -762 47 50 440 658 366 211 13 Other Federal Reserve assets 38,676 38,008 38,797 37,880 38,239 38,397 38,473 38,703 38,771 39,350 14 Gold stock 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 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 34,134 34,282r 34,349 34,281r 34,298r 34,315 34,329 34,343 34,357 34,371 ABSORBING RESERVE FUNDS 17 Currency in circulation 660,865 661,583r 662,719 661,153r 659,713r 660,138 661,683 664,412 662,855 662,102 18 Reverse repurchase agreements—triparty4 . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 373 367 389 364 372 379 376 384 399 400 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,068 5,838 4,873 5,773 6,832 6,182 5,106 4,327 5,064 4,799 21 Foreign 95 101 164 106 80 87 116 77 341 157 22 Service-related balances and adjustments . . 10,168 10,178 10,266 10,117 10,245 10,170 10,291 10,299 10,297 10,183 23 Other 210 221 223 218 234 224 252 216 212 205 24 Other Federal Reserve liabilities and capital .. 19,428 19,399 19,530 19,174 19,423 19,482 19,526 19,535 19,391 19,651 25 Reserve balances with Federal Reserve Banks5 8,135 9,056 9,128 8,529 6,563 12,531 5,863 10,005 6,723 12,552 End-of-month figures Wednesday figures Aug. Sept. Oct. Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 663,956 664,726 662,905 660,975 660,189 661,234 655,425 667,216 657,136 669,906 U.S. government securities2 2 Bought outright—System account3 602,825 604,191 607,865 606,272 606,248 606,190 609,516 610,360 610,231 608,665 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 23,000 21,750 16,500 16,750 15,500 17,250 7,000 13,750 7,500 20,500 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 150 1 0 0 2 1 0 30 4 4 9 Seasonal credit 179 176 80 167 174 156 137 129 103 85 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 -92 396 -695 -372 -185 -619 35 4,273 221 1,004 13 Other Federal Reserve assets 37,882 38,202 39,144 38,148 38,441 38,246 38,727 38,664 39,067 39,639 14 Gold stock 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 11,042 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 34,247 34,315r 34,385 34,281r 34,298r 34,315 34,329 34,343 34,357 34,371 ABSORBING RESERVE FUNDS 17 Currency in circulation 664,116 660,082r 663,370 661,609r 660,760r 662,131 663,579 665,022 663,303 664,065 18 Reverse repurchase agreements—triparty4 . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 361 380 397 370 380 376 381 399 400 397 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 4,874 7,879 5,878 7,175 7,209 5,160 4,401 4,592 5,713 5,388 21 Foreign 86 150 89 139 75 77 76 75 128 238 22 Service-related balances and adjustments . . 10,184 10,170 10,423 10,117 10,245 10,170 10,291 10,299 10,297 10,183 23 Other 194 221 233 215 232 248 258 215 205 206 24 Other Federal Reserve liabilities and capital . . 19,526 19,719 19,720 19,260 19,276 19,327 19,422 19,283 19,372 19,581 25 Reserve balances with Federal Reserve Banks5 12,104 13,682 10,422 9,614 9,552 11,303 4,588 14,916 5,316 17,461 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

A3 2 Domestic Financial Statistics • January 2003 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1999 2000 2001 2002 Dec. Dec. Dec. Apr. May June July Aug. Sept.' Oct. 1 Reserve balances with Reserve Banks2 5,262 7,022 9,054 9,740 9,209 7,929 8,096 8,520 8,732 8,844 2 Total vault cash1 60.620 45,245 43,935 42,013 41,819 41,662 42,723 42,886 42,227 42,931 3 Applied vault cash4 36,392 31,451 32,024 31,156 31.033 30,642 31,296 31,338 30,184 29,850 4 Surplus vault cash5 24,228 13,794 11,911 10,857 10,786 11,021 11,427 11,547 12,043 13,081 5 Total reserves6 41,654 38,473 41,077 40,896 40,242 38,571 39,392 39,859 38,916 38,694 6 Required reserves 40,357 37,046 39,433 39,688 38.969 37,329 38,020 38,220 37,440 37,137 7 Excess reserve balances at Reserve Banks7 1.297 1.427 1,645 1,208 1,273 1,242 1,373 1,638 1,476 1,557 8 Total borrowing at Reserve Banks 320 210 67 71 112 142 191 333 229 143 9 Adjustment 179 99 34 21 7 6 16 148 60 23 10 Seasonal 67 111 33 50 105 136 176 185 169 120 11 Special Liquidity Facilitv8 74 0 12 Extended credit 0 0 0 0 0 0 0 0 0 0 Biweekly averages of daily figures for two-week periods ending on dates indicated 2002 July 10 July 24 Aug. 7 Aug. 21 Sept. 4 Sept. 18 Oct. 2' Oct. 16 Oct. 30 Nov. 13 1 Reserve balances with Reserve Banks2 7,909 8,266 8,024 7,697 10,021 7,668 9,545 7,935 9,653 8,872 2 Total vault cash' 42,968 42,170 43,479 43,488 41,628 41,577 43,186 43,449 42,463 41,719 3 Applied vault cash4 31,438 30.738 32,213 31,351 30,709 28,537r 31,931 28,940 30,577 28,240 4 Surplus vault cash' 11,531 11,433 11,266 12,137 10,919 13,040r 11,255 14,509 11,886 13,479 5 Total reserves6 39,347 39,004 40,236 39,048 40,730 36.205r 41,476 36,875 40,230 37,112 6 Required reserves 37.828 37,709 38,916 37,712 38,446 35,233 39,680 35,337 38,691 35,495 7 Excess reserve balances at Reserve Banks7 1,518 1,294 1,320 1,336 2,284 972 1,795 1,537 1,538 1,616 8 Total borrowing at Reserve Banks 194 189 194 195 626 167 170 155 111 366 9 Adjustment 27 9 14 9 438 4 1 25 4 299 10 Seasonal 168 180 180 186 188 163 170 130 107 67 11 Special Liquidity Facility8 12 Extended credit 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 5. Total vault cash (line 2) less applied vault cash (line 3). ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash (line 3). 2. Excludes required clearing balances and adjustments to compensate for float and 7. Total reserves (line 5) less required reserves (line 6). includes other off-balance-sheet "as-of' adjustments. 8. Borrowing at the discount window under the terms and conditions established for the 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by Century Date Change Special Liquidity Facility in effect from October 1, 1999, through those banks and thrift institutions that are not exempt from reserve requirements. Dates refer April 7, 2000. to the maintenance periods in which the vault cash can be used to satisfy reserve require- 9. Consists of borrowing at the discount window under the terms and conditions estabments. lished for the extended credit program to help depository institutions deal with sustained 4. All vault cash held during the lagged computation period by "bound" institutions (that liquidity pressures. Because there is not the same need to repay such borrowing promptly as is, those whose required reserves exceed their vault cash) plus the amount of vault cash with traditional short-term adjustment credit, the money market effect of extended credit is applied during the maintenance period by "nonbound" institutions (that is, those whose vault similar to that of nonborrowed reserves. cash exceeds their required reserves) to satisfy current reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit' FFeeddeerraall RReesseerrvvee BBaannkk 12/ O 1 n 3 /02 Effective date Previous rate 12/ O 1 n 3 /02 Effective date Previous rate 12/ O 1 n 3 /02 Effective date Previous rate Boston 0.75 11/7/02 1.25 1.30 11/28/02 1.45 1.80 11/28/02 1.95 New York 11/6/02 Philadelphia 11/7/02 Cleveland 11/7/02 Richmond 11/7/02 Atlanta 11/7/02 Chicago 11/7/02 St. Louis 11/7/02 Minneapolis 11/7/02 Kansas City 11/7/02 Dallas 11/6/02 San Francisco 0.75 11/6/02 1.25 1.30 11/28/02 1.45 1.80 11/28/02 1.95 Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range(or F.R. Bank Range (or F.R. Bank Effective date level)—All of Effective date 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 3.5^1.5 3.5 Aug. 21 3.00-3.25 3.00 3 11 11 3.5 3.5 23 3.00 3.00 16 10.5 10.5 Sept. 17 2.50-3.00 2.50 27 10-10.5 10 1992—July 2 3-3.5 3 18 2.50 2.50 30 10 10 7 3 3 Oct. 2 2.00-2.50 2.00 Oct. 12 9.5-10 9.5 4 2.00 2.00 13 9.5 9.5 1994—May 17 3-3.5 3.5 Nov. 6 1.50-2.00 1.50 Nov. 22 9-9.5 9 18 3.5 3.5 8 . . . 1.50 1.50 26 9 9 Aug. 16 3.5-4 4 Dec. 11 1.25-1.50 1.25 Dec. 14 8.5-9 9 18 4 4 13 1.25 1.25 15 8.5-9 8.5 Nov. 15 4^1.75 4.75 17 8.5 8.5 17 4.75 4.75 2002—Nov. 6 0.75-1.25 0.75 7 0.75 0.75 1984—Apr. 9 8.5-9 9 4.75-5.25 5.25 13 9 9 5.25 5.25 In effect Dec. 13. 2002 0.75 0.75 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 -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 4.50 4.50 10 7 7 Apr. 21 6.5-7 6.5 -Aug. 24 4.50-4.75 4.75 23 6.5 6.5 26 4.75 4.75 July 11 6 6 Nov. 16 4.75-5.00 4.75 Aug. 21 5.5-6 5.5 18 5.00 5.00 22 5.5 5.5 -Feb. 2 5.00-5.25 5.25 1987—Sept. 4 5.5-6 6 4 5.25 5.25 11 6 6 Mar. 21 5.25-5.50 5.50 23 5.50 5.50 1988—Aug. 9 6-6.5 6.5 May 16 5.50-6.00 5.50 11 6.5 6.5 19 6.00 6.00 1989—Feb. 24 6.5-7 7 -Jan. 3 5.75-6.00 5.75 7 7 4 5.50-5.75 5.50 27 5 5.50 5.50 6.5 6.5 31 5.00-5.50 5.00 1990—Dec. 19 Feb. 1 5.00 5.00 6-6.5 6 Mar. 20 4.50-5.00 4.50 1991—Feb. 1 6 6 21 4.50 4.50 4 5.5-6 5.5 Apr. 18 4.00-4.50 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; and Statistical Digest, 1996-2000. See also the Board's Statistics: be provided when exceptional circumstances (including sustained deposit drains, impaired Releases and Historical Data web pages (http://www.federalreserve.gov/releases/H15/ access to money market funds, or sudden deterioration in loan repayment performance) or data.htm). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement Type of deposit Net transaction accounts- 1 $0 million-$42.1 million3 12/26/02 2 More than $42.1 million4 . 12/26/02 3 Nonpersonal time deposits1 12/27/90 4 Eurocurrency liabilities6 . 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve Banks or succeeding calendar year by 80 percent of the percentage increase in the total reservable vault cash. Nonmember institutions may maintain reserve balances with a Federal Reserve liabilities of all depository institutions, measured on an annual basis as of June 30. No Bank indirectly, on a pass-through basis, with certain approved institutions. For previous corresponding adjustment is made in the event of a decrease. The exemption applies only to reserve requirements, see earlier editions of the Annual Report or the Federal Reserve accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions include commercial maintenance period beginning December 26, 2002, 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 16, 2003, for institutions that report quarterly, foreign banks, and Edge Act corporations. the exemption was raised from $5.7 million to $6.0 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 26, 2002, 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 16, 2003, for institutions that report quarterly, the amount was increased deposits with an original maturity of less than 1.5 years (see note 5). from $41.3 million to $42.1 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 2002 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 11999999 22000000 22000011 Mar. Apr. May June July Aug. Sept. U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 0 8,676 15,503 3,013 1,047 3,524 3,656 4,838 552299 775500 2 Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 464,218 477,904 542,736 48,483 45,376 70,978 53,015 45,828 63,083 53,314 4 For new bills 464,218 477,904 542,736 48,483 45,376 70,978 53,015 45,828 63,083 53,314 5 Redemptions 0 24,522 10,095 0 0 0 0 0 0 0 Others within one year 6 Gross purchases 11,895 8,809 15,663 1,455 2,709 2,826 0 1,104 445 1,286 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 50,590 62,025 70,336 0 14,515 6,714 0 11,052 8,987 11,174 9 Exchanges -53,315 -54,656 -72,004 0 -15,522 -9,031 0 -14,183 -5,040 -15,189 10 Redemptions 1,429 3,779 16,802 0 0 0 0 0 0 0 One to five years 11 Gross purchases 19,731 14,482 22,814 2,181 1,142 1,439 0 1,755 1,921 0 12 Gross sales 0 0 0 0 0 0 0 0 0 0 N Maturity shifts -44,032 -52,068 -45,211 0 -14,515 -1,620 0 -11,052 -629 -11,174 14 Exchanges 42,604 46,177 64,519 0 15,522 8,639 0 13,283 3,396 15,189 Five to ten years 15 Gross purchases 4,303 5,871 6,003 637 1,670 259 542 577 690 51 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -5,841 -6,801 -21,063 0 0 -5,094 0 0 -6,714 0 18 Exchanges 7,578 6,585 6,063 0 0 391 0 900 1,645 0 More than ten years 19 Gross purchases 9,428 5,833 8,531 291 210 0 0 63 80 0 20 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -717 -3,155 -4,062 0 0 0 0 0 -1,645 0 22 Exchanges 3,133 1,894 1,423 0 0 0 0 0 0 0 All maturities 23 Gross purchases 45,357 43,670 68,513 7,577 6,777 8,048 4,198 8,336 3,665 2,087 24 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 1,429 28,301 26,897 0 0 0 0 0 0 0 Matched transactions 76 Gross purchases 4,413,430 4,415,905 4,722,667 393,273 436,936 466,807 447,555 513,400 495,729 449,250 27 Gross sales 4,431,685 4,397,835 4,724,743 393,151 437,881 469,046 448,330 511,902 497,031 449,986 Repurchase agreements 28 Gross purchases 281,599 0 0 0 0 0 00 0 00 00 29 Gross sales 301,273 0 0 0 0 0 0 0 0 0 30 Net change in U.S. Treasury securities 5,999 33,439 39,540 7,699 5,833 5,810 3,423 9,834 2,363 1,351 FEDERAL AGENCY OBLIGATIONS Outright transactions 31 Gross purchases 0 0 0 0 0 0 0 0 0 00 32 Gross sales 0 0 0 0 0 0 0 0 0 0 33 Redemptions 157 51 120 0 0 0 0 0 0 0 Repurchase agreements 34 Gross purchases 360,069 0 0 0 0 0 00 0 00 00 35 Gross sales 370,772 0 0 0 0 0 0 0 0 0 36 Net change in federal agency obligations -10,859 -51 -120 0 0 0 0 0 0 0 Reverse repurchase agreements 37 Gross purchases 0 0 0 0 0 0 0 0 00 00 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 39 Gross purchases 304,989 890,236 1,497,713 70,850 102,200 106,426 98,850 68,750 8844,,000000 9933,,550000 40 Gross sales 164,349 987,501 1,490,838 75,849 100,200 109,926 94,850 81,250 80,500 94,750 41 Net change in triparty obligations 140,640 -97,265 6,875 -4,999 2,000 -3,500 4,000 -12,500 3,500 -1,250 42 Total net change in System Open Market Account . . 135,780 -63,877 46,295 2,700 7,833 2,310 7,423 -2,666 5,863 101 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. Transactions include the rollover of inflation compensation into new securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 2002 2002 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Aug. Sept. Oct. Consolidated condition statement ASSETS 1 Gold certificate account 11.038 11,038 11,038 11,038 11,038 11,038 11,038 11,038 2 Special drawing rights certificate account 2,200 2,200 2,200 2.200 2,200 2,200 2,200 2,200 3 Coin 1,078 1,072 1,059 1,074 1,079 1,031 1,085 1,091 Loans 4 To depository institutions 157 137 159 107 88 330 177 80 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Tripartr obligations 7 Repurchase agreements—triparty2 17,250 7,000 13,750 7,500 20,500 23,000 21,750 16,500 Federal agency obligations' 8 Bought outright 10 10 10 10 10 10 10 10 9 Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities' 606,190 609,516 610,360 610,231 608,665 602,825 604,191 607,865 11 Bought outright4 606,190 609,516 610,360 610,231 608,665 602,825 604.191 607,865 12 Bills 204,206 207,522 208,357 208,217 206,641 202,196 202.210 205,840 13 Notes 295,883 295,889 295,895 295,901 295,907 294,640 295.882 295,908 14 Bonds 106,100 106.104 106,108 106,113 106,117 105,989 106,099 106,117 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 623,607 616,663 624,280 617,848 629,263 626,165 626,129 624,456 17 Items in process of collection 8,811 7.517 16,095 7,839 9,359 5,419 2,116 6,256 18 Bank premises 1,519 1.523 1,526 1,528 1,528 1,520 1,519 1,527 Other assets 19 Denominated in foreign currencies5 16,008 16.014 15,936 15,906 16,043 16,240 16,130 16.091 20 All other6 20,754 21,176 21,201 21,607 22,038 20,127 20,597 21,553 21 Total assets 685,0X4 677,203 693,335 679,040 692,547 683,739 680,813 684,212 LIABILITIES 22 Federal Reserve notes 629,265 630,700 632.133 630,417 631,165 631,256 627.228 630,469 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 27,518 19,803 30,353 21,973 34,453 27,570 31,418 27,077 25 Depository institutions 22,033 15,069 25,470 15,927 28,620 22,415 23,168 20,878 26 U.S. Treasury—General account 5.160 4,401 4,592 5,713 5,388 4,874 7,879 5,878 27 Foreign—Official accounts 77 76 75 128 238 86 150 89 28 Other 248 258 215 205 206 194 221 233 29 Deferred credit items 8.904 7,278 11,567 7,278 7.347 5,388 2,448 6,946 30 Other liabilities and accrued dividends7 2,407 2,454 2.393 2,424 2,452 2,412 2,422 2,479 31 Total liabilities 668,095 660,234 676,445 662,092 675,418 666,625 663,516 666,971 CAPITAL ACCOUNTS 32 Capital paid in 8,265 8,268 8,270 8,275 8,271 8,248 8.264 8,278 33 Surplus 7,312 7,312 7,312 7,312 7,312 7,312 7,312 7,312 34 Other capital accounts 1,343 1.389 1,309 1,362 1,546 1,554 1,722 1,652 35 Total liabilities and capital accounts 685,014 677,203 693,335 679,040 692,547 683,739 680,813 684,212 MEMO 36 Marketable U.S. government and federal agency securities held in custody for foreign official and international accounts 812,633 807,968 806,678 803,483 806,831 803,479 813,094 812,239 Federal Reserve note statement 37 Federal Reserve notes outstanding (issued to Banks) 750,804 750.654 750,752 750,811 751,565 747,686 751,190 752,063 38 LESS: Held by Federal Reserve Banks 121,538 119,954 118.619 120,394 120,400 116,430 123,962 121,595 39 Federal Reserve notes, net 629,265 630,700 632,133 630,417 631,165 631,256 627,228 630,469 Collateral held against notes, net 40 Gold certificate account 11,038 11,038 11,038 11.038 11,038 11,038 11,038 11,038 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 0 936 0 0 0 0 0 0 43 U.S. Treasury and agency securities 616,027 616.526 618,895 617,179 617,927 618,018 613,990 617,231 44 Total collateral 629,265 630,700 632,133 630,417 631,165 631,256 627,228 630,469 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 2002 2002 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 Aug. Sept. Oct. 1 Total loans 157 137 159 107 88 330 177 80 2 Within fifteen days' 35 50 101 103 82 293 131 62 3 Sixteen days to ninety days 122 86 58 4 6 37 47 18 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 606,190 609,516 610,360 610,231 608,665 602,825 604,191 607,865 6 Within fifteen days' 16,475 18,269 24,991 25,974 24,792 12,470 13,316 6,607 7 Sixteen days to ninety days 133,435 135,392 130,389 129,987 129,673 123,482 128,403 129.715 8 Ninety-one days to one year 146,234 145,800 144,915 144,194 144.114 160,910 152,429 162,163 y One year to five years 176,885 176,886 176,887 176,889 176.890 172,868 176.885 176,182 10 Five years to ten years 51,439 51,444 51,448 51,453 51,458 51,381 51,438 51,458 n More than ten years 81,722 81,726 81,730 81,734 81,739 81,715 81,721 81,739 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 13 Ninety-one davs 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 I'/ 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 ]. 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

A3 2 Domestic Financial Statistics • January 2003 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2002 1998 1999 2000 2001 IItteemm Dec. Dec. Dec. Dec. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves-1 45.14 41.82 38.54 41.22 41.01 40.76 39.12 39.27 39.66 40.06 39.28r 38.93 2 Nonborrowed reserves4 45.02 41.50 38.33 41.15 40.94 40.69 39.00 39.12 39.47 39.73 39.06 38.79 3 Nonborrowed reserves plus extended credit5 45.02 41.50 38.33 41.15 40.94 40.69 39.00 39.12 39.47 39.73 39.06 38.79 4 Required reserves 43.62 40.53 37.11 39.58 39.60 39.55 37.84 38.02 38.29 38.42 37.81 37.37 5 Monetary base6 513.55 593.12 584.04 634.41 649.65 653.95 657.91 664.07 668.76r 671.15r 671.56r 673.62 Not seasonally adjusted 6 Total reserves' 45.31 41.89 38.53 41.20 40.27 40.85 40.18 38.49 39.30 39.75 38.79r 38.55 7 Nonborrowed reserves 45.19 41.57 38.32 41.13 40.19 40.78 40.06 38.35 39.11 39.41 38.56' 38.41 8 Nonborrowed reserves plus extended credit5 45.19 41.57 38.32 41.13 40.19 40.78 40.06 38.35 39.11 39.41 38.56r 38.41 9 Required reserves8 43.80 40.59 37.10 39.55 38.85 39.64 38.90 37.25 37.93 38.11 37.32 37.00 10 Monetary base' 518.27 600.72 590.06 639.91 649.23 653.29 658.00 662.84 668.76 669.32r 669.72r 671.49 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 45.21 41.65 38.47 41.08 40.30 40.90 40.24 38.57 39.39 39.86 38.92 38.69 12 Nonborrowed reserves 45.09 41.33 38.26 41.01 40.22 40.83 40.13 38.43 39.20 39.53 38.69 38.55 13 Nonborrowed reserves plus extended credit5 45.09 41.33 38.26 41.01 40.22 40.83 40.13 38.43 39.20 39.53 38.69 38.55 14 Required reserves 43.70 40.36 37.05 39.43 38.88 39.69 38.97 37.33 38.02 38.22 37.44 37.14 15 Monetary base12 525.06 608.02 596.98 648.74 658.78 663.37 668.14 672.98 678.98 679.55r 679.95' 681.83 16 Excess reserves'3 1.51 1.30 1.43 1.65 1.41 1.21 1.27 1.24 1.37 1.64 1.48 1.56 17 Borrowings from the Federal Reserve .12 .32 .21 .07 .08 .07 .11 .14 .19 .33 .23 .14 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 I), 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 MEASURES1 Billions of dollars, averages of daily figures 2002 IItteemm D 19 e 9 c 8 . D 19 e 9 c 9 . 2 D 0 e 0 c 0 . 2 D 0 e 0 c 1 . July' Aug.r Sept.' Oct. Seasonally adjusted Measures' 1 Ml .... 1,096.5 1,124.4 1,088.9 1,179.3 1,197.8 1,184.3 1,192.7 1,201.3 2 M2 .... 4,383.9 4,654.2 4,938.6' 5,458.1' 5,639.2 5,684.6 5,709.5 5,758.9 3 M3 .... 6,037.7' 6,539.6' 7,109.9' 8,025.5' 8,214.1 8,286.5 8,314.8 8,324.5 Ml 4 Currency3 459.3 516.9 530.1 579.9 615.1 617.2 617.9 619.8 5 Travelers checks4 8.2 8.3 8.0 7.8 8.6 8.4 8.0 7.7 6 Demand deposits5 378.4 354.5 309.9 330.4 303.7 288.7 292.6 295.9 7 Other checkable deposits6 250.5 244.7 240.9 261.2 270.5 270.0 274.2 277.8 Nontransaction components 8 In M27 3,287.4 3,529.8 3,849.7 4,278.8' 4,441.4 4,500.3 4,516.8 4,557.6 9 In M3 only8 1,653.8' 1,885.4' 2,171.3' 2,567.5' 2,574.9 2,601.9 2,605.4 2,565.7 Commercial banks 10 Savings deposits, including MMDAs . . 1,187.5 1,289.1 1,423.7 1,745.8 1,911.8 1,964.0 1,989.9 2,016.3 11 Small time deposits9 626.1 635.0 699.1 638.9 613.8 608.8 601.3 592.7 12 Large time deposits10,11 582.8 651.3 717.2 670.0 704.0 706.3 705.0 701.0 Thrift institutions 13 Savings deposits, including MMDAs .. 414.7 449.7 452.1 561.8 641.4 654.5 668.4 692.5 14 Small time deposits9 325.6 320.4 344.5 334.4 307.4 306.5 305.7 306.3 15 Large time deposits10 88.6 91.1 102.9 114.0 110.3 111.8 112.8 114.6 Money market mutual funds 16 Retail 733.6 835.7 930.2 997.8' 967.0 966.4 951.5 949.8 17 Institution-only 540.1 638.6 796.6 1,206.5 1,191.6 1,190.1 1,176.4 1,140.8 Repurchase agreements and eurodollars 18 Repurchase agreements'2 293.4 335.9 364.0 375.7 372.8 398.1 417.7 415.9 19 Eurodollars12 148.8' 168.5' 190.7' 201.2' 196.2 195.6 193.6 193.4 Not seasonally adjusted Measures2 20 Ml 1,120.4 1,148.3 1,112.3 1,203.5 1,195.4 1,179.4 1,184.0 1,195.1 21 M2 4,404.0 4,675.0 4,962.3' 5,483.0' 5,612.9 5,659.1 5,685.3 5,725.2 22 M3 6,066.5' 6,571.1' 7,145.0' 8,063.8' 8,164.7 8,234.7 8,246.9 8,257.7 Ml components 23 Currency3 463.3 521.5 535.2 584.9 615.3 616.3 616.0 617.9 24 Travelers checks4 8.4 8.4 8.1 7.9 8.2 8.1 7.8 7.7 25 Demand deposits5 395.9 371.8 326.5 348.2 303.9 287.4 289.5 295.1 26 Other checkable deposits6 252.8 246.6 242.5 262.5 268.0 267.7 270.6 274.5 Nontransaction components 27 In M27 3,283.6 3,526.7 3,849.9 4,279.5' 4,417.5 4,479.7 4,501.4 4,530.0 28 In M3 only8 1,662.5' 1,896.2' 2,182.8' 2,580.7' 2,551.7 2,575.6 2,561.6 2,532.5 Commercial banks 29 Savings deposits, including MMDAs 1,186.0 1,288.8 1,426.9 1,750.2 1,907.9 1,957.5 1,985.6 2,000.9 30 Small time deposits9 626.5 635.7 700.0 639.6 611.8 608.0 601.8 594.3 31 Large time depositslal 1 583.1 651.7 717.6 670.1 703.7 703.7 702.6 699.9 Thrift institutions 32 Savings deposits, including MMDAs 414.2 449.6 453.1 563.2 640.1 652.4 667.0 687.2 33 Small time deposits9 325.8 320.8 345.0 334.8 306.4 306.1 306.0 307.1 34 Large time deposits10 88.6 91.2 103.0 114.0 110.3 111.4 112.4 114.4 Money market mutual funds 35 Retail 731.1 832.0' 925.0' 991.7' 951.3 955.8 941.0 940.5 36 Institution-only 549.5 648.2 805.6 1,217.7 1,169.2 1,170.0 1,143.9 1,118.9 Repurchase agreements and eurodollars 37 Repurchase agreements'2 290.4 334.7 364.2 376.5 374.0 397.4 411.2 408.8 38 Eurodollars'2 150.8' 170.4' 192.4' 202.4' 194.6 193.2 191.6 190.6 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly ory institutions, the U.S. government, money market funds, and foreign banks and official statistical release. Historical data starting in 1959 are available from the Money and Reserves institutions. Seasonally adjusted M3 is calculated by summing large time deposits, institu- Projections Section, Division of Monetary Affairs, Board of Governors of the Federal tional money fund balances, RP liabilities, and eurodollars, each seasonally adjusted sepa- Reserve System, Washington, DC 20551. rately, and adding this result to seasonally adjusted M2. 2. Composition of the money stock measures is as follows: 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of institutions. depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. commercial banks other than those owed to depository institutions, the U.S. government, and Travelers checks issued by depository institutions are included in demand deposits. foreign banks and official institutions, less cash items in the process of collection and Federal 5. Demand deposits at commercial banks and foreign-related institutions other than those Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of owed to depository institutions, the U.S. government, and foreign banks and official instituwithdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, tions, less cash items in the process of collection and Federal Reserve float. credit union share draft accounts, and demand deposits at thrift institutions. Seasonally 6. Consists of NOW and ATS account balances at all depository institutions, credit union adjusted Ml is computed by summing currency, travelers checks, demand deposits, and share draft account balances, and demand deposits at thrift institutions. OCDs, each seasonally adjusted separately. 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time money fund balances. deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities balances in retail money market mutual funds. Excludes individual retirement accounts (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and (IRAs) and Keogh balances at depository institutions and money market funds. Seasonally term) of U.S. addressees. adjusted M2 is calculated by summing savings deposits, small-denomination time deposits, 9. Small time deposits—including retail RPs—are those issued in amounts of less than and retail money fund balances, each seasonally adjusted separately, and adding this result to $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are seasonally adjusted Ml. subtracted from small time deposits. M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) 10. Large time deposits are those issued in amounts of $100,000 or more, excluding those issued by all depository institutions, (2) balances in institutional money funds, (3) RP booked at international banking facilities. liabilities (overnight and term) issued by all depository institutions, and (4) eurodollars 11. Large time deposits at commercial banks less those held by money market funds, (overnight and term) held by U.S. residents at foreign branches of US. banks worldwide and depository institutions, the U.S. government, and foreign banks and official institutions. at all banking offices in the United Kingdom and Canada. Excludes amounts held by deposit- 12. Includes both overnight and term. 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 2001 2002 2002 Oct. Apr.' May' June' July' Aug.' Sept.' Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 5,422.9r 5,449.4 5,507.7 5,553.7 5,601.1 5,684.0 5,740.7 5,768.6 5,771.5 5,747.0 5,765.4 5,788.0 1 Securities in bank credit 1,470.8' 1,501.7 1,536.9 1,565.9 1,597.2 1,636.3 1,646.6 1,643.8 1,652.9 1,611.3 1,636.0 1,664.0 3 U.S. government securities 825.0 869.5 895.2 912.4 922.6 950.9 967.7 975.7 971.3 951.4 984.9 991.2 4 Other securities 645.8r 632.1 641.8 653.5 674.6 685.4 678.9 668.1 681.6 659.9 651.1 672.8 5 Loans and leases in bank credit2 .... 3,952. lr 3,947.8 3,970.8 3,987.8 4,003.8 4,047.7 4,094.1 4,124.8 4,118.7 4,135.6 4,129.4 4,124.1 6 Commercial and industrial 1,051.7r 1,009.0 1,004.3 997.0 983.6 983.7 976.9 972.0 969.6 975.1 973.2 971.3 7 Real estate l,753.0r 1,796.0 1,819.2 1,841.7 1,872.6 1,903.5 1,937.4 1,970.2 1,967.3 1,967.0 1,968.6 1,981.4 8 Revolving home equity 150.8 172.1 179.7 186.4 193.3 198.0 201.2 205.3 204.7 205.3 205.4 206.3 9 Other l,602.2r 1,623.9 1,639.4 1,655.3 1,679.4 1,705.6 1,736.2 1,764.8 1,762.7 1,761.7 1,763.2 1,775.1 in Consumer 551.r 567.9 571.1 570.7 567.2 577.3 585.4 587.5 585.0 588.9 588.0 588.5 11 Security3 154.1' 167.0 168.7 169.1 176.3 175.8 180.8 181.8 185.7 187.1 186.5 172.0 17 Other loans and leases 442.3r 407.9 407.5 409.4 404.1 407.3 413.6 413.4 411.1 417.5 413.2 410.8 n Interbank loans 301.6 270.7 288.4 282.4 287.9 303.6 315.0 323.0 310.5 327.1 330.0 324.7 14 Cash assets4 302.3r 300.0 302.0 307.1 308.2 314.9 312.1 312.6 292.1 320.4 317.6 317.7 15 Other assets5 495.9 482.1 488.0 483.5 490.3 504.7 501.3 511.8 515.4 507.3 512.0 514.7 16 Total assets6 6,452.0r 6,426.9 6,510.4 6,551.0 6,611.9 6,731.8 6,793.7 6,840.1 6,814.1 6,825.7 6,848.9 6,869.1 Liabilities 17 Deposits 4,181.5 4,334.2 4,368.6 4,392.8 4,433.2 4,476.0 4,485.8 4,493.5 4,472.1 4,512.0 4,487.8 4,497.8 18 Transaction 640.8 602.0 609.5 598.8 614.2 601.1 585.9 613.2 561.2 610.3 636.3 660.5 19 Nontransaction 3,540.7 3,732.3 3,759.1 3,794.1 3,819.0 3,874.9 3,899.9 3,880.2 3,910.9 3,901.7 3,851.6 3,837.4 20 Large time 982.7 1,042.9 1,046.2 1,039.3 1,048.8 1,048.4 1,042.6 1,026.6 1,037.1 1,022.5 1,023.7 1,021.9 21 Other 2,558.0 2,689.3 2,712.9 2,754.8 2,770.2 2,826.5 2,857.3 2,853.7 2,873.8 2,879.1 2,827.9 2,815.5 22 Borrowings 1,266.2 1,220.0 1,245.6 1,241.3 1,241.2 1,301.9 1,323.0 1,327.4 1,313.0 1,320.8 1,331.5 1,340.7 ?.3 From banks in the U.S 412.6 382.6 385.1 380.4 386.6 405.6 417.0 415.3 410.5 420.9 413.3 414.6 24 From others 853.7 837.5 860.4 860.9 854.6 896.3 905.9 912.1 902.5 900.0 918.2 926.1 25 Net due to related foreign offices 178.2 103.7 92.2 90.9 90.4 90.8 99.6 122.5 115.4 122.5 138.3 122.7 26 Other liabilities 373.3 320.7 336.7 368.6 397.2 416.3 424.7 427.6 442.8 414.9 409.0 438.7 27 Total liabilities 5,999.3 5,978.6 6,043.1 6,093.6 6,162.1 6,284.9 6,333.0 6,371.0 6,343.3 6,370.3 6,366.6 6,399.9 28 Residual (assets less liabilities)1 452.7' 448.3 467.4 457.4 449.8 446.9 460.7 469.1 470.8 455.4 482.3 469.1 Not seasonally adjusted Assets 29 Bank credit 5,425.7r 5,446.3 5,501.6 5,548.2 5,574.4 5,661.5 5,733.9 5,772.7 5,764.9 5,753.9 5,763.5 5,804.6 30 Securities in bank credit l,470.5r 1,501.1 1,534.2 1,561.7 1,583.1 1,627.6 1,642.9 1,643.1 1,651.3 1,608.6 1,632.8 1,668.2 31 U.S. government securities 821.8 871.3 892.8 909.6 914.3 944.6 964.2 971.9 966.8 946.5 978.9 990.5 32 Other securities 648.7r 629.7 641.3 652.1 668.8 683.1 678.6 671.2 684.5 662.1 653.9 677.6 33 Loans and leases in bank credit2 .... 3,955.2r 3,945.2 3,967.4 3,986.5 3,991.3 4,033.9 4,091.0 4,129.5 4,113.6 4,145.2 4,130.7 4,136.4 34 Commercial and industrial 1,053.1' 1,013.1 1,007.8 999.2 982.5 978.2 974.8 973.3 969.9 976.6 973.3 973.8 35 Real estate 1,754.8' 1,792.7 1,821.8 1,842.6 1,872.0 1,904.6 1,939.5 1,972.3 1,969.5 1,970.0 1,969.2 1,983.8 36 Revolving home equity 151.2 171.5 180.1 186.6 193.1 198.1 202.2 205.9 205.0 206.0 205.9 207.1 37 Other 1,603.6' 1,621.2 1,641.7 1,656.0 1,678.9 1,706.6 1,737.3 1,766.4 1,764.5 1,764.0 1,763.2 1,776.8 38 Consumer 551.5' 564.5 569.3 566.5 561.3 573.9 584.9 588.1 583.1 589.3 590.0 590.9 39 Credit cards and related plans . . 216.3 223.5 222.8 221.0 215.4 224.5 231.3 232.3 228.2 233.6 234.3 234.0 40 Other 335.2' 340.9 346.5 345.5 345.9 349.3 353.5 355.8 355.0 355.7 355.7 356.8 41 Security3 156.3' 166.1 162.3 168.1 171.7 171.3 179.0 184.2 182.0 191.4 189.6 178.6 42 Other loans and leases 439.5' 408.9 406.2 410.0 403.8 405.9 412.8 411.7 409.1 417.9 408.6 409.3 43 Interbank loans 296.6 280.6 285.0 284.5 282.0 297.2 307.3 317.7 304.8 323.9 315.3 324.7 44 Cash assets4 304.1' 299.1 299.2 299.4 299.0 300.7 309.0 314.9 293.2 342.8 301.0 322.1 45 Other assets5 494.6 482.6 487.7 481.6 488.9 501.9 503.9 510.5 516.2 506.3 504.0 514.4 46 Total assets6 6,450.6r 6,433.4 6,497.8 6,537.9 6,569.0 6,685.9 6,778.3 6,840.1 6,803.9 6,851.2 6,808.0 6,890.1 Liabilities 47 Deposits 4,166.8 4,358.4 4,361.6 4,380.6 4,403.9 4,429.0 4,453.8 4,478.4 4,467.7 4,513.5 4,439.7 4,484.3 48 Transaction 635.1 610.4 601.5 595.7 606.8 585.7 579.7 608.1 556.8 620.6 609.0 659.5 49 Nontransaction 3,531.7 3,748.0 3,760.1 3,784.8 3,797.1 3,843.3 3,874.0 3,870.3 3,910.9 3,892.8 3,830.7 3,824.8 50 Large time 977.1 1,045.5 1,049.8 1,037.0 1,037.7 1,032.7 1,028.1 1,020.4 1,028.5 1,012.6 1,019.0 1,020.3 51 Other 2,554.5 2,702.5 2,710.3 2,747.8 2,759.4 2,810.5 2,846.0 2,849.9 2,882.4 2,880.2 2,811.8 2,804.4 52 Borrowings 1,268.1 1,226.2 1,252.0 1,240.3 1,231.1 1,281.5 1,320.4 1,329.4 1,310.8 1,325.7 1,330.7 1,346.0 53 From banks in the U.S 410.7 387.5 386.4 377.9 382.5 400.4 410.2 413.6 408.1 420.9 410.7 413.5 54 From others 857.4 838.7 865.6 862.4 848.6 881.1 910.2 915.8 902.7 904.7 920.0 932.5 55 Net due to related foreign offices 177.6 95.1 91.7 87.0 81.4 87.9 100.1 122.0 109.5 119.5 140.0 127.7 56 Other liabilities 373.6 313.3 336.2 365.8 388.7 413.6 424.8 427.7 436.4 412.4 411.6 445.4 57 Total liabilities 5,986.0 5,993.0 6,041.5 6,073.7 6,105.0 6,212.0 6,299.0 6,357.4 6,324.4 6,371.0 6,322.0 6,403.3 58 Residual (assets less liabilities)7 464.5' 440.4 456.3 464.2 464.0 473.9 479.3 482.8 479.5 480.2 486.1 486.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • January 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities '—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2001 2002 2002 Oct. Apr. May' June' July' Aug.' Sept.' Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 4,830.3' 4,851.4 4,910.5 4,948.1 4,992.2 5,066.1 5,124.4 5,157.9 5,157.0 5,139.2 5,153.8 5,179.2 2 Securities in bank credit l,239.1r 1,276.3 1,308.5 1,331.0 1,361.1 1,390.0 1,402.6 1,404.3 1,408.8 1,374.0 1,401.2 1,425.2 U.S. government securities 746.1 798.6 822.8 837.5 847.6 869.4 881.1 888.2 882.9 864.7 899.4 902.3 4 Other securities 493.0r 477.7 485.7 493.5 513.5 520.6 521.5 516.2 525.9 509.2 501.9 522.9 5 Loans and leases in bank credit2 .... 3,591.3r 3,575.1' 3,602.0 3,617.1 3,631.1 3,676.1 3,721.9 3,753.6 3,748.2 3,765.2 3,752.6 3,753.9 6 Commercial and industrial 854.8' 811.0' 805.6 802.4 793.1 794.6 792.3 791.1 789.6 792.9 791.0 791.1 7 Real estate 1,734.1' 1,776.6' 1,799.8 1,822.0 1,852.9 1,883.7 1,917.5 1,949.6 1,947.3 1,946.6 1,948.0 1,960.2 8 Revolving home equity 150.8 172.1 179.7 186.4 193.3 198.0 201.2 205.3 204.7 205.3 205.4 206.3 y Other 1,583.4' 1,604.4' 1,620.1 1,635.7 1,659.6 1,685.8 1,716.3 1,744.3 1,742.7 1,741.2 1,742.6 1,753.9 10 Consumer 551.1' 567.9' 571.1 570.7 567.2 577.3 585.4 587.5 585.0 588.9 588.0 588.5 n Security3 78.8 82.9 88.8 84.1 86.6 85.6 86.1 85.4 89.1 93.3 86.1 75.8 12 Other loans and leases 372.5' 336.7' 336.7 337.9 331.4 334.9 340.7 340.0 337.2 343.6 339.6 338.3 13 Interbank loans 277.9 248.8 265.0 262.2 270.6 285.5 293.9 298.4 288.9 303.8 304.6 295.3 14 Cash assets4 263.4 253.6 256.9 261.9 263.3 270.2 268.6 269.9 248.3 277.3 275.6 275.5 15 Other assets5 462.9 451.3 457.4 450.7 456.6 471.2 469.3 476.0 481.6 471.4 477.3 475.9 16 Total assets6 5,764.1r 5,729.9r 5,814.5 5,847.4 5,907.5 6,018.2 6,081.1 6,126.7 6,100.7 6,116.0 6,135.6 6,150.1 Liabilities 17 Deposits 3,758.1 3,827.4 3,861.0 3,884.6 3,929.5 3,978.9 4,000.2 4,030.0 3,998.3 4,046.8 4,028.3 4,040.5 18 Transaction 630.0 591.4 598.6 587.8 603.6 590.2 574.9 602.6 549.9 599.1 626.1 650.7 19 Nontransaction 3,128.2 3,236.0 3,262.4 3,296.7 3,325.9 3,388.7 3,425.3 3,427.4 3,448.4 3,447.7 3,402.2 3,389.8 20 Large time 572.9 548.9 550.7 544.7 563.2 570.5 574.6 578.0 579.7 573.5 576.2 579.8 21 Other 2,555.3 2,687.1 2,711.7 2,752.0 2,762.7 2,818.2 2,850.8 2,849.5 2,868.7 2,874.2 2,826.0 2,810.0 22 Borrowings 1,060.3 1,029.4' 1,055.4 1,047.5 1,038.1 1,087.1 1,099.4 1,098.7 1,086.8 1,092.3 1,110.6 1,104.1 2 i From banks in the U.S 389.1 360.2' 364.1 359.0 365.4 383.2 393.2 391.2 387.7 394.0 391.5 390.6 24 From others 671.2 669.2' 691.4 688.5 672.7 704.0 706.1 707.6 699.1 698.2 719.1 713.4 25 Net due to related foreign offices 193.5 177.3 179.8 175.6 181.0 179.7 184.1 191.8 196.9 191.2 193.4 191.6 26 Other liabilities 295.0 252.7 264.2 286.9 309.7 322.9 334.9 332.0 345.3 321.2 317.4 339.3 27 Total liabilities 5,306.9 5,286.8r 5,360.3 5,394.5 5,458.3 5,568.6 5,618.7 5,652.6 5,627.3 5,651.5 5,649.7 5,675.6 28 Residual (assets less liabilities)7 457.2' 443.1' 454.2 452.9 449.2 449.6 462.5 474.1 473.4 464.5 485.8 474.5 Not seasonally adjusted Assets 29 Bank credit 4,833.0' 4,848.1' 4,908.3 4,945.6 4,971.6 5,049.8 5,120.9 5,162.0 5,155.5 5,145.9 5,152.5 5,190.8 30 Securities in bank credit 1,238.7' 1,275.7 1,305.8 1,326.8 1,346.9 1,381.4 1,398.8 1,403.6 1,407.3 1,371.2 1,398.1 1,429.5 31 U.S. government securities 742.9 800.4 820.5 834.7 839.3 863.1 877.6 884.3 878.5 859.8 893.4 901.7 32 Other securities 495.8' 475.3 485.3 492.1 507.6 518.2 521.2 519.3 528.8 511.4 504.6 527.8 33 Loans and leases in bank credit2 .... 3,594.3' 3,572.5 3,602.6 3,618.8 3,624.7 3,668.5 3,722.1 3,758.3 3,748.2 3,774.6 3,754.5 3,761.3 34 Commercial and industrial 855.5' 816.4' 811.4 805.7 793.4 790.6 790.3 791.7 789.9 794.1 790.8 791.9 35 Real estate 1,735.9' 1,773.2' 1,802.4 1,823.0 1,852.2 1,884.8 1,919.6 1,951.8 1,949.5 1,949.6 1,948.6 1,962.7 36 Revolving home equity 151.2 171.5 180.1 186.6 193.1 198.1 202.2 205.9 205.0 206.0 205.9 207.1 37 Other 1,584.8' 1,601.8' 1,622.4 1,636.4 1,659.1 1,686.8 1,717.4 1,745.8 1,744.4 1,743.6 1,742.6 1,755.7 38 Consumer 551.5' 564.5' 569.3 566.5 561.3 573.9 584.9 588.1 583.1 589.3 590.0 590.9 39 Credit cards and related plans . . 216.3 223.5 222.8 221.0 215.4 224.5 231.3 232.3 228.2 233.6 234.3 234.0 40 Other 335.2' 340.9' 346.5 345.5 345.9 349.3 353.5 355.8 355.0 355.7 355.7 356.8 41 Security3 80.8 81.4 83.6 84.7 85.4 84.4 87.1 87.6 89.1 96.9 89.1 78.6 42 Other loans and leases 370.5' 337.0' 335.8 338.8 332.4 334.7 340.3 339.2 336.6 344.7 336.0 337.3 43 Interbank loans 272.9 258.7 261.6 264.3 264.8 279.1 286.1 293.1 283.2 300.6 289.9 295.3 44 Cash assets4 264.4 254.6 255.6 256.2 256.0 257.4 265.5 271.3 249.7 299.0 258.0 277.9 45 Other assets5 462.2 451.9 457.0 450.2 456.5 469.0 471.2 475.4 482.5 470.9 470.3 476.7 46 Total assets6 5,762.4' 5,738.5r 5,807.3 5,840.7 5,873.8 5,980.3 6,068.4 6,126.5 6,096.0 6,141.1 6,095.3 6,165.3 Liabilities 47 Deposits 3,750.0 3,847.8 3,848.9 3,874.2 3,909.2 3,946.4 3,980.2 4,022.3 4,004.0 4,058.7 3,986.3 4,030.7 48 Transaction 624.1 600.4 591.0 585.1 596.2 575.1 568.6 597.3 545.9 609.0 598.8 649.4 49 Nontransaction 3,125.9 3,247.4 3,257.9 3,289.0 3,313.1 3,371.3 3,411.6 3,425.0 3,458.1 3,449.7 3,387.5 3,381.3 50 Large time 574.1 547.2 548.9 544.0 561.0 568.8 572.0 579.2 580.7 574.3 577.7 582.3 51 Other 2,551.8 2,700.2 2,709.0 2,745.1 2,752.0 2,802.4 2,839.6 2,845.8 2,877.3 2,875.4 2,809.8 2,799.0 52 Borrowings 1,062.2 1,035.6' 1,061.9 1,046.5 1,028.0 1,066.8 1,096.8 1,100.7 1,084.6 1,097.1 1,109.8 1,109.4 53 From banks in the U.S 387.2 365.2' 365.3 356.5 361.3 378.0 386.4 389.4 385.3 394.1 388.9 389.5 54 From others 674.9 670.4' 696.6 690.1 666.7 688.8 710.4 711.3 699.3 703.0 720.9 719.8 55 Net due to related foreign offices 194.4 170.6 179.4 174.3 175.8 178.7 183.6 192.5 193.0 189.9 196.5 196.8 56 Other liabilities 295.9 246.0 263.7 285.4 303.3 321.4 334.4 332.8 340.2 319.7 320.8 346.2 57 Total liabilities 5,302.4 5,299.9r 5,353.8 5,380.4 5,416.4 5,513.2 5,595.0 5,648.3 5,621.7 5,665.5 5,613.4 5,683.1 58 Residual (assets less liabilities)7 460.0' 438.6' 453.5 460.3 457.5 467.0 473.4 478.1 474.3 475.6 481.9 482.2 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 2001 2002 2002 Oct. Apr.r Mayr Juner Julyr Aug/ Sept.' Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 2,646.2 2,567.5 2,583.2 2,602.7 2,636.4 2,684.2 2,720.9 2,734.5 2.740.5 2,720.0 2.728.8 2,745.2 2 Securities in bank credit 644.8 645.4 664.1 683.6 713.3 736.6 745.5 743.3 747.9 715.4 741.6 761.2 3 U.S. government securities 366.0 383.7 390.5 400.2 410.9 427.5 432.0 435.3 429.7 414.9 448.3 446.0 4 Trading account 35.8 38.1 43.0 42.4 43.1 48.0 42.6 37.8 35.1 35.3 39.7 39.5 5 Investment account 330.2 345.5 347.6 357.8 367.9 379.5 389.4 397.5 394.6 379.6 408.6 406.5 6 Other securities 278.8 261.8 273.6 283.5 302.3 309.1 313.5 308.0 318.3 300.4 293.3 315.2 7 Trading account 165.7 128.2 140.5 148.3 168.8 174.5 172.7 161.5 171.6 153.6 147.7 168.8 8 Investment account 113.1 133.6 133.1 135.2 133.5 134.6 140.8 146.5 146.6 146.8 145.6 146.4 9 State and local government . . 26.8 27.2 26.9 27.3 28.3 28.0 28.4 28.7 28.6 28.6 28.9 28.7 in Other 86.3 106.4 106.2 107.8 105.3 106.5 112.4 117.8 118.1 118.2 116.8 117.7 ii Loans and leases in bank credit2 .... 2,001.4 1.922.0 1,919.1 1,919.1 1,923.1 1,947.6 1,975.5 1,991.2 1.992.6 2,004.7 1,987.1 1,984.0 12 Commercial and industrial 556.2 511.8 504.7 500.6 489.2 488.2 484.7 483.0 481.4 485.3 483.4 482.3 13 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 14 Other 556.2 511.8 504.7 500.6 489.2 488.2 484.7 483.0 481.4 485.3 483.4 482.3 15 Real estate 853.9 848.4 849.7 862.9 883.0 902.0 922.9 942.3 943.9 941.4 939.6 946.2 16 Revolving home equity 95.7 108.8 112.4 116.8 121.6 124.5 126.8 129.5 129.1 129.7 129.5 130.0 17 Other 758.1 739.6 737.4 746.0 761.4 777.5 796.1 812.8 814.8 811.7 810.1 816.2 18 Consumer 245.8 247.0 246.8 242.6 243.3 248.8 254.3 255.3 255.2 255.7 254.5 256.2 19 Security3 70.9 75.7 81.5 76.6 78.8 77.5 77.8 77.0 80.8 84.8 77.5 67.4 20 Federal funds sold to and repurchase agreements with broker-dealers 57.3 63.4 69.2 64.6 66.3 66.2 67.8 66.7 71.0 74.5 6677..66 5566..22 21 Other 13.6 12.3 12.3 12.0 12.5 11.3 10.0 10.3 9.8 10.3 9.9 11.2 22 State and local government 15.3 13.1 13.0 13.0 12.8 12.9 13.0 12.9 13.3 13.1 13.1 12.1 23 Agricultural 9.9 9.3 9.3 9.1 9.0 8.2 8.2 8.1 8.0 8.1 8.1 8.2 24 Federal funds sold to and repurchase agreements with others 30.4 22.3 19.0 17.4 13.6 16.5 19.6 19.0 17.5 20.7 17.5 19.9 25 All other loans 82.6 65.2 67.3 70.1 67.2 67.5 69.2 69.4 68.1 71.2 69.2 68.0 26 Lease-financing receivables 136.4 129.2 127.8 126.8 126.3 126.1 125.9 124.2 124.3 124.3 124.1 123.9 27 Interbank loans 175.7 159.7 169.7 161.8 163.4 174.8 180.3 180.0 175.7 185.5 182.1 174.2 28 Federal funds sold to and repurchase agreements with commercial banks 95.8 86.4 85.5 75.6 75.7 85.1 87.4 82.4 76.9 88.3 8811..44 7799..22 29 Other 79.8 73.3 84.2 86.2 87.7 89.7 92.8 97.6 98.7 97.2 100.7 94.9 30 Cash assets4 155.3 139.8 141.2 143.1 142.4 146.8 144.3 143.8 129.1 149.3 145.4 149.3 31 Other assets5 332.8 303.9 309.5 304.3 310.5 319.0 313.7 321.7 326.7 316.5 325.5 322.0 32 Total assets6 3,269.4 3,126.6 3,159.4 3,167.8 3,208.6 3,281.5 3,316.2 3,337.0 3,329.2 3,328.2 3,338.6 3,347.5 Liabilities 33 Deposits 1,806.1 1,819.8 1,815.1 1,817.9 1,847.2 1,872.9 1,883.6 1,899.9 1.884.3 1,913.2 1,896.1 1,900.5 34 Transaction 326.1 289.8 291.3 286.9 292.4 282.6 268.5 287.1 253.2 289.1 301.0 315.0 35 Nontransaction 1,480.0 1,530.1 1,523.8 1,530.9 1,554.8 1,590.3 1,615.1 1,612.8 1,631.0 1.624.1 1.595.1 1.585.4 36 Large time 262.8 247.5 248.9 244.0 261.2 268.0 271.6 272.5 274.9 267.9 270.6 273.7 37 Other 1,217.2 1,282.6 1,274.9 1,286.9 1,293.6 1,322.3 1,343.5 1.340.3 1,356.1 1,356.2 1,324.5 1,311.7 38 Borrowings 690.1 648.2 667.0 657.1 643.6 677.9 673.2 668.8 661.1 666.3 674.8 672.6 39 From banks in the U.S 222.2 193.1 194.1 187.9 191.2 200.9 206.5 205.3 202.9 207.8 200.5 208.6 40 From others 467.9 455.0 472.9 469.2 452.5 477.0 466.7 463.5 458.2 458.5 474.3 464.0 41 Net due to related foreign offices 183.9 167.6 168.1 163.9 171.2 171.2 175.5 179.5 183.1 177.2 182.4 179.5 42 Other liabilities 230.8 181.2 189.3 210.7 233.6 244.0 254.7 251.4 265.8 241.0 236.6 257.4 43 Total liabilities 2,910.9 2,816.8 2,839.5 2,849.5 2,895.6 2,966.0 2,986.9 2,999.6 2,994.3 2,997.7 2,989.8 3,010.0 44 Residual (assets less liabilities)7 358.4 309.8 319.9 318.2 313.0 315.5 329.2 337.4 334.9 330.5 348.8 337.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities '—Continued C. Large domestically chartered commercial banks—Continued Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2001 2002 2002 Oct. Apr.' May' June' July' Aug.' Sept.' Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Not seasonally adjusted Assets 45 Bank credit 2,643.9 2,567.1 2.583.2 2,602.9 2,621.1 2,670.9 2,715.4 2,733.2 2,736.0 2,720.3 2,721.6 2,749.6 46 Securities in bank credit 645.5 643.5 662.1 680.0 701.2 730.3 742.8 743.8 747.9 714.0 739.6 766.0 47 U.S. government securities 363.8 384.2 389.0 397.9 404.8 423.6 429.6 432.7 426.7 411.4 443.5 445.9 48 Trading account 35.5 38.2 42.8 42.2 42.4 47.6 42.4 37.6 34.8 35.1 39.2 39.5 49 Investment account 328.3 346.0 346.2 355.7 362.3 376.0 387.2 395.1 391.9 376.3 404.3 406.4 50 Mortgage-backed securities . 261.5 268.1 272.1 277.5 287.3 304.5 308.0 312.9 306.1 292.1 324.2 327.5 51 Other 66.8 77.8 74.1 78.2 75.0 71.5 79.1 82.2 85.8 84.3 80.1 78.9 52 One year or less 16.7 18.4 16.1 14.9 18.7 17.4 19.9 21.9 21.2 21.9 22.5 21.9 53 One to five years 32.2 46.5 45.1 50.0 43.7 42.2 46.3 50.0 53.3 51.8 47.8 47.6 54 More than five years .... 17.9 12.9 12.9 13.3 12.7 11.8 12.9 10.4 11.3 10.6 9.8 9.4 55 Other securities 281.6 259.4 273.1 282.1 296.5 306.7 313.2 311.2 321.2 302.6 296.1 320.1 56 Trading account 167.4 127.0 140.2 147.5 165.5 173.1 172.6 163.2 173.2 154.8 149.1 171.4 57 Investment account 114.2 132.4 132.9 134.5 131.0 133.6 140.7 148.0 148.0 147.9 147.0 148.7 58 State and local government . 27.1 27.0 26.9 27.2 27.7 27.8 28.4 29.0 28.8 28.8 29.2 29.1 59 Other 87.2 105.4 106.0 107.3 103.3 105.7 112.3 119.0 119.2 119.0 117.9 119.6 60 Loans and leases in bank credit2 . . . 1,998.5 1,923.6 1,921.0 1,922.9 1,919.9 1,940.6 1,972.6 1,989.4 1,988.1 2.006.2 1,982.0 1,983.6 61 Commercial and industrial 557.1 515.2 508.2 501.8 488.9 485.8 484.3 483.7 482.2 486.4 483.0 483.2 62 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 6J Other 557.1 515.2 508.2 501.8 488.9 485.8 484.3 483.7 482.2 486.4 483.0 483.2 64 Real estate 852.8 847.2 853.2 864.8 883.2 902.5 923.3 941.2 943.7 941.0 936.7 944.7 65 Revolving home equity 95.8 108.4 112.9 117.3 121.9 124.9 127.3 129.5 129.0 129.8 129.4 130.0 66 Other 440.5 426.0 426.6 435.6 449.2 464.9 482.7 495.8 500.0 496.0 490.7 497.0 67 Commercial 316.6 312.8 313.7 311.9 312.1 312.7 313.3 315.9 314.6 315.2 316.6 317.6 6 X Consumer 242.9 247.4 247.5 242.5 241.4 246.6 251.8 252.4 251.5 252.4 251.7 253.9 69 Credit cards and related plans . 75.8 74.2 74.2 71.9 70.7 73.4 75.7 74.6 74.2 74.7 74.0 75.5 70 Other 167.1 173.2 173.2 170.6 170.7 173.2 176.0 177.8 177.3 177.7 177.7 178.5 71 Security3 73.1 74.0 76.4 77.3 77.7 76.4 79.0 79.3 80.8 88.5 80.9 70.3 72 Federal funds sold to and repurchase agreements with broker-dealers 59.0 62.0 64.9 65.2 65.4 65.2 68.9 68.7 71.0 77.7 70.6 58.6 73 Other 14.0 12.1 11.5 12.1 12.3 11.2 10.1 10.6 9.8 10.8 10.3 11.7 74 State and local government 15.3 13.1 13.0 13.0 12.8 12.9 13.0 12.9 13.3 13.1 13.1 12.1 75 Agricultural 9.9 9.2 9.3 9.3 9.2 8.3 8.2 8.0 8.0 8.1 8.0 8.1 76 Federal funds sold to and repurchase agreements with others 29.3 22.3 19.0 17.4 13.6 16.5 19.6 19.0 17.5 20.7 17.5 19.9 77 All other loans 82.4 65.3 66.7 70.5 67.4 67.0 69.4 69.3 67.3 72.3 67.7 68.2 78 Lease-financing receivables 135.7 129.8 127.8 126.4 125.6 124.8 124.0 123.6 123.8 123.8 123.3 123.3 79 Interbank loans 171.5 163.5 170.9 166.9 162.4 170.2 175.3 175.7 167.0 181.9 173.2 176.8 80 Federal funds sold to and repurchase agreements with commercial banks 93.5 88.5 86.1 77.9 75.3 82.9 85.1 80.4 73.2 86.6 77.4 80.4 81 Other 77.9 75.0 84.8 88.9 87.2 87.3 90.2 95.2 93.9 95.3 95.8 96.4 82 Cash assets4 155.8 142.4 140.7 139.0 137.0 137.8 141.5 144.7 128.2 164.1 135.6 150.7 83 Other assets5 332.0 304.5 309.1 303.8 310.4 316.8 315.7 321.0 327.6 316.0 318.5 322.8 84 Total assets6 3,263.1 3,133.6 3,159.6 3,168.3 3,187.0 3,252.2 3,304.6 3,331.9 3,316.1 3,339.5 3,306.3 3,357.1 Liabilities 85 Deposits 1,802.3 1,827.3 1,809.6 1,816.4 1,839.1 1,856.5 1,874.9 1,896.9 1,887.0 1.923.2 1,871.4 1,898.0 86 Transaction 321.5 297.1 288.5 285.4 287.4 271.1 264.1 283.1 248.3 295.8 283.1 314.5 87 Nontransaction 1,480.8 1,530.2 1,521.2 1,531.0 1,551.7 1,585.4 1,610.8 1,613.8 1,638.7 1,627.4 1,588.3 1,583.5 88 Large time 264.0 245.8 247.1 243.3 259.1 266.3 269.0 273.7 275.9 268.6 272.0 276.3 89 Other 1,216.9 1,284.5 1,274.1 1.287.7 1,292.6 1,319.0 1,341.8 1,340.0 1,362.8 1,358.8 1,316.3 1,307.3 90 Borrowings 691.9 654.3 673.4 656.2 633,6 657.5 670.6 670.8 658.9 671.1 674.0 677.9 91 From banks in the U.S 220.3 198.1 195.3 185.4 187.1 195.7 199.7 203.6 200.4 207.9 197.9 207.5 92 From nonbanks in the U.S 471.6 456.2 478.1 470.7 446.4 461.9 470.9 467.2 458.5 463.2 476.1 470.4 93 Net due to related foreign offices 184.8 160.8 167.8 162.6 166.0 170.2 175.0 180.2 179.1 176.0 185.5 184.7 94 Other liabilities 231.7 174.5 188.8 209.1 227.2 242.5 254.2 252.2 260.7 239.4 239.9 264.3 95 Total liabilities 2,910.8 2,817.0 2,839.6 2,844.3 2,865.9 2,926.7 2,974.6 3,000.1 2,985.8 3,009.7 2,970.8 3,024.9 96 Residual (assets less liabilities)7 352.3 316.6 320.0 324.0 321.1 325.5 330.0 331.8 330.4 329.8 335.5 332.1 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 2001 2002 2002 Oct. Apr/ May' June' July' Aug.' Sept/ Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 2,184.1 2,283.9 2,327.3 2,345.3 2,355.8 2,381.9 2,403.5 2,423.4 2,416.5 2,419.2 2,425.1 2,434.0 7 Securities in bank credit 594.3 630.8 644.4 647.3 647.8 653.4 657.1 661.0 660.9 658.6 659.6 664.1 3 U.S. government securities 380.1 415.0 432.3 437.3 436.7 441.9 449.1 452.9 453.3 449.8 451.1 456.4 4 Other securities 214.2 215.9 212.2 210.0 211.1 211.5 208.0 208.1 207.6 208.8 208.5 207.7 5 Loans and leases in bank credit2 .... 1,589.9 1,653.0 1,682.9 1,698.0 1,708.0 1,728.5 1,746.4 1,762.4 1.755.6 1,760.6 1,765.4 1,769.9 6 Commercial and industrial 298.6 299.2 300.8 301.8 303.9 306.4 307.6 308.1 308.2 307.6 307.6 308.8 7 Real estate 880.3 928.1 950.1 959.1 969.9 981.7 994.6 1,007.3 1,003.4 1,005.1 1,008.4 1,014.1 8 Revolving home equity 55.0 63.3 67.4 69.5 71.7 73.4 74.4 75.8 75.6 75.6 76.0 76.3 9 Other 825.3 864.8 882.7 889.6 898.2 908.3 920.2 931.5 927.9 929.5 932.4 937.7 10 Consumer 305.3 320.9 324.3 328.0 323.9 328.6 331.1 332.1 329.8 333.2 333.5 332.4 11 Security3 7.8 7.2 7.3 7.6 7.8 8.1 8.3 8.4 8.3 8.5 8.5 8.4 1? Other loans and leases 97.9 97.6 100.4 101.5 102.5 103.8 104.9 106.4 105.9 106.2 107.5 106.3 n Interbank loans 102.2 89.1 95.3 100.4 107.2 110.7 113.6 118.4 113.2 118.3 122.5 121.1 14 Cash assets4 108.1 113.8 115.6 118.8 120.9 123.4 124.4 126.1 119.1 128.0 130.2 126.2 15 Other assets^ 130.1 147.4 147.9 146.4 146.1 152.3 155.5 154.4 154.9 154.9 151.8 154.0 16 Total assets6 2,494.7 2,603.4 2,655.0 2,679.7 2,698.9 2,736.7 2,765.0 2,789.7 2,771.5 2,787.8 2,796.9 2,802.6 Liabilities 17 Deposits 1,952.0 2,007.5 2,045.9 2,066.7 2,082.3 2,106.0 2,116.7 2,130.1 2,114.1 2,133.6 2,132.3 2,140.1 18 Transaction 303.9 301.6 307.3 300.9 311.2 307.7 306.4 315.5 296.7 309.9 325.1 335.7 19 Nontransaction 1,648.2 1,705.9 1,738.6 1,765.8 1,771.1 1,798.3 1,810.3 1,814.6 1,817.4 1,823.6 1,807.2 1,804.4 70 Large time 310.1 301.4 301.8 300.7 302.0 302.5 303.0 305.5 304.8 305.7 305.7 306.1 ?l Other 1,338.0 1,404.5 1,436.8 1,465.1 1,469.1 1,495.8 1,507.2 1,509.1 1,512.6 1,518.0 1,501.5 1,498.3 7? Borrowings 370.2 381.2 388.4 390.4 394.5 409.3 426.2 429.9 425.7 426.0 435.8 431.4 73 From banks in the U.S 166.9 167.1 169.9 171.0 174.2 182.3 186.7 185.9 184.9 186.2 190.9 182.0 74 From others 203.3 214.1 218.5 219.3 220.2 226.9 239.4 244.0 240.8 239.8 244.8 249.4 75 Net due to related foreign offices 9.6 9.7 11.6 11.7 9.8 8.5 8.6 12.3 13.8 14.0 11.0 12.2 26 Other liabilities 64.2 71.5 74.9 76.3 76.1 78.9 80.3 80.6 79.5 80.3 80.9 81.9 27 Total liabilities 2,396.0 2,470.0 2,520.8 2,545.0 2,562.7 2,602.6 2,631.7 2,652.9 2,633.0 2,653.8 2,659.9 2,665.6 28 Residual (assets less liabilities)7 98.7 133.4 134.2 134.7 136.2 134.1 133.2 136.8 138.5 134.0 137.0 137.0 Not seasonally adjusted Assets 29 Bank credit 2.189.1 2,281.0 2,325.2 2,342.7 2,350.5 2,378.9 2,405.6 2,428.8 2,419.5 2,425.6 2,430.9 2,441.2 30 Securities in bank credit 593.3 632.1 643.6 646.8 6457 651.1 656.0 659.8 659.4 657.2 658.4 663.5 31 U.S. government securities 379.1 416.2 431.5 436.8 434.5 439.5 448.0 451.7 451.7 448.5 449.9 455.8 32 Other securities 214.2 215.9 212.2 210.0 211.1 211.5 208.0 208.1 207.6 208.8 208.5 207.7 33 Loans and leases in bank credit2 .... 1,595.8 1.648.9 1,681.5 1,695.8 1,704.8 1,727.9 1,749.5 1,769.0 1,760.1 1,768.4 1,772.4 1,777.7 34 Commercial and industrial 298.5 301.1 303.2 303.9 304.4 304.8 305.9 308.0 307.7 307.8 307.8 308.7 35 Real estate 883.1 926.1 949.3 958.2 969.0 982.4 996.3 1,010.6 1,005.8 1,008.6 1,011.9 1,018.0 36 Revolving home equity 55.4 63.1 67.2 69.3 71.2 73.2 74.9 76.4 76.0 76.2 76.6 77.0 37 Other 827.7 863.0 882.1 888.9 897.8 909.2 921.4 934.2 929.8 932.4 935.3 941.0 38 Consumer 308.6 317.1 321.8 324.0 319.9 327.3 333.1 335.7 331.6 336.9 338.3 336.9 39 Credit cards and related plans . . 140.5 149.3 148.6 149.2 144.7 151.1 155.6 157.7 154.0 158.9 160.2 158.6 40 Other 168.1 167.7 173.2 174.9 175.2 176.2 177.5 178.0 177.6 178.0 178.1 178.4 41 Security3 7.7 7.4 7.1 7.4 7.7 8.0 8.1 8.3 8.3 8.4 8.2 8.4 42 Other loans and leases 97.9 97.3 100.1 102.2 103.8 105.3 106.1 106.4 106.7 106.7 106.3 105.7 43 Interbank loans 101.4 95.1 90.7 97.4 102.3 108.9 110.9 117.4 116.2 118.8 116.7 118.5 44 Cash assets4 108.5 112.2 115.0 117.2 119.0 119.6 124.0 126.6 121.5 134.9 122.4 127.2 45 Other assets5 130.1 147.4 147.9 146.4 146.1 152.3 155.5 154.4 154.9 154.9 151.8 154.0 46 Total assets6 2,499.3 2,604.9 2,647.6 2,672.4 2,686.8 2,728.1 2,763.9 2,794.6 2,779.9 2,801.6 2,789.0 2,808.3 Liabilities 47 1,947.7 2.020.5 2,039.2 2,057.8 2,070.1 2,089.9 2,105.3 2,125.4 2.116.9 2,135.6 2,114.9 2,132.7 48 Transaction 302.6 303.3 302.5 299.8 308.8 304.0 304.5 314.2 297.6 313.3 315.7 334.9 49 Nontransaction 1,645.1 1,717.2 1.736.7 1,758.0 1,761.4 1,785.9 1,800.8 1,811.2 1,819.3 1,822.3 1,799.2 1,797.8 50 Large time 310.1 301.4 301.8 300.7 302.0 302.5 303.0 305.5 304.8 305.7 305.7 306.1 51 Other 1,334.9 1,415.8 1,434.9 1,457.4 1,459.4 1,483.4 1,497.8 1,505.7 1,514.5 1,516.7 1,493.6 1,491.7 52 Borrowings 370.2 381.2 388.4 390.4 394.5 409.3 426.2 429.9 425.7 426.0 435.8 431.4 53 From banks in the U.S 166.9 167.1 169.9 171.0 174.2 182.3 186.7 185.9 184.9 186.2 190.9 182.0 54 From others 203.3 214.1 218.5 219.3 220.2 226.9 239.4 244.0 240.8 239.8 244.8 249.4 55 Net due to related foreign offices 9.6 9.7 11.6 11.7 9.8 8.5 8.6 12.3 13.8 14.0 11.0 12.2 56 Other liabilities 64.2 71.5 74.9 76.3 76.1 78.9 80.3 80.6 79.5 80.3 80.9 81.9 57 Total liabilities 2,391.6 2,482.9 2,514.2 2,536.1 2,550.5 2,586.5 2,620.4 2,648.2 2,635.9 2,655.8 2,642.6 2,658.2 58 Residual (assets less liabilities)7 107.7 122.0 133.4 136.3 136.3 141.5 143.5 146.4 144.0 145.8 146.4 150.1 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 2001 2002 2002 Oct. Apr. May June July Aug.' Sept.' Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Seasonally adjusted Assets 1 Bank credit 592.6r 598.1' 597.2' 605.6' 608.9' 617.8 616.3 610.7 614.5 607.8 611.6 608.8 2 Securities in bank credit 231.7 225.4 228.4 234.9 236.2 246.3 244.0 239.5 244.0 237.4 234.8 238.7 3 U.S. government securities 78.9 70.9' 72.4' 74.9' 75.0' 81.4 86.6 87.6 88.4 86.7 85.5 88.9 4 Other securities 152.9 154.5' 156.0' 160.0' 161.2' 164.8 157.4 151.9 155.7 150.7 149.3 149.9 5 Loans and leases in bank credit2 .... 360.9r 372.7' 368.8' 370.7' 372.7 371.6 372.2 371.2 370.5 370.4 376.8 370.1 6 Commercial and industrial 196.8 198.0 198.7 194.6' 190.5' 189.2 184.6 181.0 180.0 182.2 182.3 180.2 7 Real estate 18.8 19.4 19.4 19.6 19.8 19.8 19.9 20.5 20.0 20.4 20.6 21.1 8 Security3 75.4' 84.1' 79.9' 85.0' 89.7' 90.2 94.7 96.4 96.6 93.8 100.4 96.3 9 Other loans and leases 69.8 71.2 70.8 71.5 72.7 72.4 72.9 73.3 73.9 73.9 73.6 72.5 10 Interbank loans 23.7 21.9 23.4 20.2 17.3 18.1 21.1 24.6 21.6 23.3 25.4 29.5 11 Cash assets4 39.0' 46.5' 45.1' 45.3' 44.9' 44.7 43.5 42.7 43.8 43.0 42.0 42.2 12 Other assets5 33.0 30.9 30.6 32.8 33.7 33.4 32.1 35.8 33.8 35.9 34.7 38.8 13 Total assets6 687.8r 697.0 695.9r 703.5r 704.4r 713.7 712.6 713.4 713.5 709.7 713.3 719.0 Liabilities 14 423.4 506.9 507.6 508.3 503.7 497.1 485.6 463.5 473.8 465.2 459.5 457.3 15 Transaction 10.9 10.6 10.9 10.9 10.6 10.9 11.0 10.6 11.2 11.3 10.1 9.7 16 Nontransaction 412.6 496.3 496.7 497.3 493.1 486.2 474.6 452.8 462.5 453.9 449.4 447.6 17 Borrowings 205.9 190.6 190.1 193.8 203.1 214.7 223.6 228.7 226.2 228.6 220.9 236.6 18 From banks in the U.S 23.4 22.3 21.1 21.4 21.2 22.4 23.8 24.1 22.8 26.8 21.8 24.0 19 From others 182.5 168.3 169.1 172.4 181.9 192.3 199.8 204.5 203.4 201.7 199.1 212.7 20 Net due to related foreign offices -15.3 -73.6 -87.6 -84.7 -90.5 -88.9 -84.5 -69.3 -81.5 -68.7 -55.1 -68.9 21 Other liabilities 78.4 68.0 72.6 81.7 87.5 93.4 89.8 95.6 97.5 93.7 91.6 99.3 22 Total liabilities 692.4 691.8 682.7 699.1 703.7 716.3 714.4 718.4 716.0 718.8 716.9 724.4 23 Residual (assets less liabilities)7 -4.5 5.2 13.2' 4.5 .6' -2.6 -1.8 -5.0 -2.6 -9.1 -3.5 -5.4 Not seasonally adjusted Assets 24 Bank credit 592.7' 598.1' 593.2' 602.6' 602.8 611.7 612.9 610.7 609.5 608.0 611.0 613.8 25 Securities in bank credit 231.7 225.4 228.4 234.9 236.2 246.3 244.0 239.5 244.0 237.4 234.8 238.7 26 U.S. government securities 78.9 70.9' 72.4' 74.9' 75.0' 81.4 86.6 87.6 88.4 86.7 85.5 88.9 27 Trading account 15.7 9.3 10.0 10.4 10.5 12.8 14.3 14.7 14.8 14.9 14.1 14.3 28 Investment account 63.1 61.7' 62.3' 64.5' 64.5' 68.6 72.3 72.9 73.6 71.8 71.4 74.6 29 Other securities 152.9 154.5' 156.0' 160.0' 161.2' 164.8 157.4 151.9 155.7 150.7 149.3 149.9 30 Trading account 104.0 96.3 98.5 102.7 106.8 108.8 103.0 98.5 102.1 97.3 95.9 96.6 31 Investment account 48.9 58.1' 57.6' 57.3' 54.4' 56.0 54.4 53.5 53.6 53.4 53.4 53.2 32 Loans and leases in bank credit2 .... 360.9' 372.7' 364.8' 367.7' 366.7 365.4 368.9 371.2 365.4 370.6 376.2 375.1 33 Commercial and industrial 197.6 196.8 196.4 193.5' 189.2' 187.6 184.6 181.6 180.0 182.5 182.6 181.9 34 Real estate 18.8 19.4 19.4 19.6 19.8 19.8 19.9 20.5 20.0 20.4 20.6 21.1 35 Security3 15.5' 84.7' 78.7' 83.4' 86.3' 86.9 91.9 96.5 92.9 94.5 100.5 100.0 36 Other loans and leases 69.0 71.9 70.4 71.2 71.4 71.1 72.5 72.5 72.4 73.2 72.6 72.0 37 Interbank loans 23.7 21.9 23.4 20.2 17.3 18.1 21.1 24.6 21.6 23.3 25.4 29.5 38 Cash assets4 39.8' 44.6' 43.6' 43.3' 43.1' 43.3 43.5 43.6 43.5 43.8 43.0 44.2 39 Other assets5 32.4 30.7 30.7 31.4 32.4 32.9 32.7 35.2 33.7 35.4 33.7 37.7 40 Total assets6 688.2 694.9 690.5r 697.1r 695.2r 705.6 709.9 713.7 707.9 710.1 712.7 724.7 Liabilities 41 Deposits 416.8 510.7 512.7 506.4 494.6 482.6 473.6 456.1 463.8 454.7 453.4 453.6 42 Transaction 11.0 10.1 10.5 10.6 10.6 10.6 11.1 10.8 10.9 11.6 10.2 10.1 43 Nontransaction 405.8 500.6 502.2 495.8 484.1 472.0 462.4 445.4 452.9 443.1 443.2 443.4 44 Borrowings 205.9 190.6 190.1 193.8 203.1 214.7 223.6 228.7 226.2 228.6 220.9 236.6 45 From banks in the U.S 23.4 22.3 21.1 21.4 21.2 22.4 23.8 24.1 22.8 26.8 21.8 24.0 46 From others 182.5 168.3 169.1 172.4 181.9 192.3 199.8 204.5 203.4 201.7 199.1 212.7 47 Net due to related foreign offices -16.8 -75.5 -87.7 -87.3 -94.4 -90.8 -83.5 -70.6 -83.5 -70.4 -56.5 -69.1 48 Other liabilities 77.7 67.3 72.5 80.4 85.3 92.2 90.3 94.8 96.3 92.7 90.8 99.2 49 Total liabilities 683.6 693.1 687.7 693.3 688.6 698.7 704.0 709.0 702.7 705.5 708.5 720.2 50 Residual (assets less liabilities)7 4.5' 1.8' 2.8' 3.9 6.6' 6.9 5.9 4.6 5.2 4.6 4.1 4.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A21 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities '—Continued F. Memo items Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2001 2002 2002 Oct. Apr. May June July Aug.' Sept.' Oct. Oct. 9 Oct. 16 Oct. 23 Oct. 30 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 103.6 73.3 80.8 92.9 105.8 112.3 119.1 110.9 125.0 102.4 95.7 115.8 2 Revaluation losses on off-balancesheet items8 86.0 57.5 61.7 75.2 89.2 93.7 100.0 93.7 105.9 85.4 80.0 99.1 3 Mortgage-backed securities9 284.0' 302.2' 306.3' 312.7' 320.1' 338.2 343.6 354.9 347.4 333.3 365.9 371.1 4 Pass-through 215.3' 203.3' 210.5' 224.6 236.3 253.4 254.7 261.3 252.8 240.4 274.9 276.0 5 CMO, REMIC, and other 68.7' 98.9' 95.8' 88.1' 83.7' 84.8 88.9 93.6 94.7 92.8 91.0 95.1 6 Net unrealized gains (losses) on available-for-sale securities10 9.2 1.4 4.3 6.6 8.6 9.7 12.4 12.9 13.7 12.5 12.0 13.1 7 Off-shore credit to U.S. residents'1 .... 20.0 19.7 19.6 19.6 19.1 19.0 19.0 18.4 18.6 18.3 18.4 18.5 8 Securitized consumer loans12 101.9' 98.5' 98.6' 102.6' 106.4' 104.6 103.8 105.2 104.7 104.6 105.4 105.9 9 Credit cards and related plans 91.4' 86.6' 87.2' 90.5' 91.3' 89.5 89.1 90.9 90.5 90.5 91.3 91.2 10 Other 10.5 11.9 11.5 12.2 15.1 15.1 14.7 14.3 14.2 14.2 14.1 14.7 11 Securitized business loans12 21.1 17.1 16.7 16.6 17.0 17.7 17.6 17.4 17.5 17.5 17.4 17.1 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities9 257.1' 287.9' 302.4' 305.3' 305.0' 307.1 312.8 315.4 315.9 313.3 313.3 318.6 13 Securitized consumer loans12 238.0' 243.9' 244.5' 244.3' 239.8' 238.1 235.8 234.8 236.3 233.1 233.9 235.7 14 Credit cards and related plans 229.6' 235.9' 237.0' 237.3' 236.2' 235.0 232.7 231.6 233.0 229.8 230.6 232.4 15 Other 8.4 7.9 7.6 7.0 3.6 3.1 3.0 3.3 3.3 3.3 3.3 3.3 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 62.6 46.3 49.8 54.8 60.7 64.9 62.2 59.6 62.3 58.2 56.8 59.2 17 Revaluation losses on off-balancesheet items8 54.4 39.9 42.8 49.3 57.6 65.3 62.0 59.4 63.6 58.0 56.1 58.3 18 Securitized business loans12 13.5 11.3 10.5 9.9 9.4 9.1 8.1 7.7 7.8 7.7 7.7 7.6 NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8 acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table ratio procedure is used to adjust past levels. 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer in the United States, all of which are included in "Interbank loans." being published in the Bulletin. Instead, abbreviated balance sheets for both large and small 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry domestically chartered banks have been included in table 1.26, parts C and D. Data are both securities. merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. 4. Includes vault cash, cash items in process of collection, balances due from depository branches and agencies of foreign banks have been replaced by balance sheet estimates of all institutions, and balances due from Federal Reserve Banks. foreign-related institutions and are included in table 1.26, part E. These data are break- 5. Excludes the due-from position with related foreign offices, which is included in "Net adjusted. due to related foreign offices." The not-seasonally-adjusted data for all tables now contain additional balance sheet items, 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for which were available as of October 2, 1996. transfer risk. Loans are reported gross of these items. 1. Covers the following types of institutions in the fifty states and the District of Columbia: 7. This balancing item is not intended as a measure of equity capital for use in capital domestically chartered commercial banks that submit a weekly report of condition (large adequacy analysis. On a seasonally adjusted basis, this item reflects any differences in the domestic); other domestically chartered commercial banks (small domestic); branches and seasonal patterns estimated for total assets and total liabilities. agencies of foreign banks, and Edge Act and agreement corporations (foreign-related institu- 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity tions). Excludes International Banking Facilities. Data are Wednesday values or pro rata and equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. averages of Wednesday values. Large domestic banks constitute a universe; data for small 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. domestic banks and foreign-related institutions are estimates based on weekly samples and on government-sponsored enterprises, and private entities. quarter-end condition reports. Data are adjusted for breaks caused by reclassifications of 10. Difference between fair value and historical cost for securities classified as availableassets and liabilities. for-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are The data for large and small domestic banks presented on pp. A17—19 are adjusted to restated to include an estimate of these tax effects. remove the estimated effects of mergers between these two groups. The adjustment for 11. Mainly commercial and industrial loans but also includes an unknown amount of credit mergers changes past levels to make them comparable with current levels. Estimated extended to other than nonfinancial businesses. quantities of balance sheet items acquired in mergers are removed from past data for the bank 12. Total amount outstanding. group that contained the acquired bank and put into past data for the group containing the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 1.32 COMMERCIAL PAPER OUTSTANDING Millions of dollars, seasonally adjusted, end of period Year ending December 2002 IItteemm 1997 1998 1999 2000 2001 Apr. May June July Aug. Sept. 1 All issuers 966,699 1,163,303 1,403,023 1,615,341 1,438,764 1,351,516 1,366,259 1,327,569 1,345,922 1,375,414 1,338,119 Financial companies' 2 Dealer-placed paper, total2 513,307 614,142 786,643 973,060 989,364 972.268 989,957 986,489 959,798 863,215 856.037 3 Directly placed paper, total' 252,536 322,030 337,240 298.848 224,553 196.056 199.572 169,193 206.942 343,733 322,729 4 Nonfinancial companies4 200,857 227,132 279,140 343,433 224.847 183,192 176,730 171,887 179,182 168.466 159,353 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Average Average Average Date of change Rate Period rate rate rate 1999—Jan. 1 7.75 1999 8.00 2000—Jan. 8.50 2001—Jan. 9.05 July 1 8.00 2000 .... 9.23 Feb. 8.73 Feb. 8.50 Aug. 25 8.25 2001 6.91 Mar. 8.83 Mar. 8.32 Nov. 17 8.50 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. I 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 Feb. 4.75 Aug. 22 6.50 Dcc. 8.50 Mar. 4.75 Sept. 18 6.00 Apr. 4.75 Oct. 3 5.50 May 4.75 Nov. 7 5.00 June 4.75 Dec. 12 4.75 July 4.75 Aug. 4.75 2002—Nov. 7 4.25 Sept. 4.75 Oct. 4.75 Nov. 4.35 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 2002 2002, week ending IItteemm 11999999 22000000 22000011 July Aug. Sept. Oct. Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 MONEY MARKET INSTRUMENTS 4.97 6.24 3.88 1.73 1.74 1.75 1.75 1.72 1.80 1.73 1.75 1.72 4.62 5.73 3.40 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 Commercial paper Nonfinancial 5.09 6.27 3.78 1.74 1.72 1.73 1.72 1.73 1.73 1.72 1.72 1.73 5.14 6.29 3.68 1.74 1.70 1.72 1.70 1.71 1.70 1.68 1.72 1.72 5.18 6.31 3.65 1.75 1.70 1.72 1.70 1.72 1.69 1.67 1.72 1.73 Financial 5.11 6.28 3.80 1.74 1.72 1.74 1.73 1.75 1.74 1.72 1.74 1.74 5.16 6.30 3.71 1.75 1.72 1.74 1.72 1.74 1.72 1.71 1.73 1.75 5 ->? 6.33 3.65 1.76 1.71 1.74 1.71 1.73 1.70 1.70 1.74 1.76 Certificates of deposit, secondary market3,7 5.19 6.35 3.84 1.78 1.76 1.78 1.77 1.78 1.77 1.77 1.78 1.78 5.33 6.46 3.71 1.79 1.73 1.76 1.73 1.75 1.72 1.72 1.78 1.78 5.46 6.59 3.66 1.84 1.72 1.74 1.69 1.72 1.65 1.66 1.77 1.78 5.31 6.45 3.70 1.78 1.72 1.75 11..7733 1.74 1.71 1.71 1.77 1.77 U.S. Treasury• bills Secondary market3 5 2.43 1.69 1.66 1.65 11..6600 1.64 1.58 1.58 1.63 1.65 4.64 5.82 3.40 1.68 1.62 1.63 1.58 1.62 1.55 1.56 1.64 1.64 44..7755 55..9900 33..3344 11..7700 11..6600 11..6600 11..5566 1.58 1.50 1.53 1.64 1.64 U.S. TREASURY NOTES AND BONDS Constant maturities9 5.08 6.11 3.49 1.96 1.76 1.72 1.65 1.68 1.55 1.59 1.77 1.79 5.43 6.26 3.83 2.56 2.13 2.00 1.91 1.93 1.76 1.78 2.07 2.14 18 3-year 5.49 6.22 4.09 3.01 2.52 2.32 2.25 2.22 2.07 2.09 2.43 2.50 19 5-year 5.55 6.16 4.56 3.81 3.29 2.94 2.95 2.79 2.72 2.71 3.15 3.22 20 7-year 5.79 6.20 4.88 4.30 3.88 3.50 3.54 3.35 3.31 3.31 3.72 3.79 71 10-year 5.65 6.03 5.02 4.65 4.26 3.87 3.94 3.73 3.69 3.68 4.11 4.21 22 20-year 6.20 6.23 5.63 5.51 5.19 4.87 5.00 4.79 4.78 4.78 5.14 5.22 Treasury long-term average10 " nn..aa.. nn..aa.. 5.54 5.23 4.90 5.07 4.83 4.86 4.87 5.19 5.27 STATE AND LOCAL. NOTES AND BONDS Moody's series12 5.28 5.58 4.99 4.81 4.78 4.58 4.66 4.54 4.52 4.53 4.67 4.89 25 Baa 5.70 6.19 5.75 5.55 5.53 5.31 5.47 5.26 5.25 5.29 5.59 5.71 55..4433 55..7711 5.15 55..0022 4.95 4.74 44..8888 4.71 4.68 4.66 4.98 5.12 CORPORATE BONDS 7.45 7.98 7.49 7.14 6.93 6.73 6.93 6.69 6.72 6.78 7.03 7.11 Hating group 28 Aaa15' 7.05 7.62 7.08 6.53 6.37 6.15 6.32 6.10 6.13 6.15 6.41 6.50 29 Aa 7.36 7.83 7.26 6.98 6.84 6.63 6.73 6.56 6.57 6.59 6.81 6.89 30 A 7.53 8.11 7.67 7.15 6.95 6.76 6.95 6.71 6.74 6.79 7.05 7.12 31 Baa 7.88 8.37 7.95 7.90 7.58 7.40 7.73 7.39 7.44 7.57 7.86 7.95 MEMO Dividend-price ratio16 11..2255 11..1155 11..3322 11..7766 1.72 11..8800 11..8866 1.89 1.91 2.04 1.84 1.76 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly SOURCE: U.S. Department of the Treasury. statistical release. For ordering address, see inside front cover. 10. Based on the unweighted average of the bid yields for all Treasury fixed-coupon 1. The daily effective federal funds rate is a weighted average of rates on trades through securities with remaining terms to maturity of 25 years and over. New York brokers. 11. A factor for adjusting the daily long-term average in order to estaimate a 30-year rate 2. Weekly ligures are averages of seven calendar days, ending on Wednesday of the can be found at http://www.treas.gov/offices/domeslic-finance/debt-management/interest-rate/ current week; monthly figures include each calendar day in the month. ltcompositeindex.html. 3. Annualized using a 360-day year or bank interest. 12. General obligation bonds based on Thursday figures; Moody's Investors Service. 4. Rate for the Federal Reserve Bank of New York. 13. State and local government general obligation bonds maturing in twenty years are used 5. Quoted on a discount basis. in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys' 6. Interest rates interpolated from data on certain commercial paper trades settled by the Al rating. Based on Thursday figures. Depository Trust Company. The trades represent sales of commercial paper by dealers or 14. Daily figures are averages of Aaa, Aa, A, and Baa yields from Moody's Investors direct issuers to investors (that is, the offer side). See the Board's Commercial Paper web Service. Based on yields to maturity on selected long-term bonds. pages (http://www.federalreserve.gov/releases/cp) for more information. 15. Effective December 7, 2001, the Moody's Aaa yield includes yields only for industrial 7. An average of dealer offering rates on nationally traded certificates of deposit. firms. Prior to December 7, 2001, the Aaa yield represented both utilities and industrial. 8. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for 16. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in indication purposes only. the price index. 9. Yields on actively traded issues adjusted to constant maturities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 1.36 STOCK MARKET Selected Statistics 2002 IInnddiiccaattoorr 11999999 22000000 22000011 Feb. Mar. Apr. May June July Aug. Sept. Oct. Prices and trading volume (averages of daily figures) CCCCCCCooooooommmmmmmmmmmmmmooooooonnnnnnn ssssssstttttttoooooooccccccckkkkkkk ppppppprrrrrrriiiiiiiccccccceeeeeeesssssss (((((((iiiiiiinnnnnnndddddddeeeeeeexxxxxxxeeeeeeesssssss))))))) 1111111 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((DDDDDDDeeeeeeeccccccc....... 33333331111111,,,,,,, 1111111999999966666665555555 ======= 55555550000000))))))) 619.52 643.71 606.03 569.55 600.74 587.58 575.75 544.36 486.11 491.84 471.04 459.88 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 775.29 809.40 749.46 715.80 751.79 732.71 718.12 677.58 603.04 611.34 589.14 574.45 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 491.62 414.73 444.45 453.51 490.51 470.00 459.55 449.42 416.07 409.96 388.19 383.41 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 284.82 478.99 377.72 301.32 316.25 300.57 287.10 265.21 230.21 225.52 210.76 207.83 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 530.97 552.48 596.61 570.18 609.72 610.24 603.15 577.05 524.01 533.60 506.05 494.06 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111^^^^^^^(((((((3333333 ------- 11111110000000)))))))''''''' 1,327.33 1,427.22 1,194.18 1,100.67 1,153.79 1,112.03 1,079.27 1,014.05 903.59 912.55 867.81 854.63 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,, 1111111999999977777773333333 -------55555550000000)))))))2222222 770.90 922.22 879.08 845.81 891.08 915.09 935.10 911.59 840.76 843.89 852.03 807.38 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 799,554 1,026,867 1,216,529 1,362,830 1,321,351 1,280,714 1,215,786 1,539,282 1,848,962 1,317,105 1,370,143 1,619,896 9999999 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 32,629 51,437 68,074 55,657 56,375 n.a. n.a. n.a. n.a. n.a. n.a. n.a. Customer financing (millions of dollars, end-of-period balances) 11111110000000 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrr-------dddddddeeeeeeeaaaaaaallllllleeeeeeerrrrrrrsssssss3333333 228,530 198,790 150,450 147,030 149,370 150,940 150,860 146,270 136,160 132,800 130,210 130,570 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss4444444 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss5555555 55,130 100,680 101,640 99,350 93,700 92,140 92,950 95,830 98,080 95,400 98,630 96,620 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 79,070 84,400 78,040 72,730 69,790 68,540 66,120 68,280 68,860 63,700 67,550 66,780 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 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 2000 2001 2002 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 5,701.9 5,803.5 5,800.6 5,753.9 5,834.5 5,970.3 6,032.4 6,153.3 6,255.4 2 Public debt securities 5.674.2 5,662.2 5,773.7 5,726.8 5,807.5 5,943.4 6,006.0 6,126.5 6,228.2 3 Held by public 3,438.5 3,527.4 3,434.4 3,274.2 3,338.7 3,393.8 3.443.7 3,463.5 3,552.6 4 Held by agencies 2,235.7 2,248.7 2,339.4 2,452.6 2,468.8 2,549.7 2,562.4 2,662.9 2,675.6 S Agency securities 27.7 27.4 26.8 27.1 27.0 26.8 26.4 26.8 27.2 6 Held by public 27.6 27.3 26.8 27.1 27.0 26.8 26.4 26.8 27.2' 7 Held by agencies .1 .1 .1 .0 .0 .0 .0 .0 .0' 8 Debt subject to statutory limit 5,591.6 5,580.5 5,692.5 5,645.0 5,732.6 5,871.4 5,935.1 6,058.3 6,161.4 9 Public debt securities 5,591.4 5,580.2 5,692.3 5,644.8 5,732.4 5,871.2 5,935.0 6,058.1 6,161.1 10 Other debt1 .2 .2 .2 .2 .2 .3 .2 .2 .3 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 6,400.0 6,400.0 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 2002 TTyyppee aanndd hhoollddeerr 11999988 11999999 22000000 22000011 Q4 Qi Q2 Q3 1 Total gross public debt 5,614.2 5,776.1 5,662.2 5,943.4 5,943.4 6,006.0 6,126.5 6,228.2 By type 2 Interest-bearing 5,605.4 5,766.1 5,618.1 5,930.8 5,930.8 5,962.2 6,087.0 6,216.3 3 Marketable 3,355.5 3,281.0 2,966.9 2,982.9 2,982.9 3,003.3 3,024.8 3,136.6 4 Bills 691.0 737.1 646.9 811.3 811.3 834.4 822.5 868,3 5 Notes 1,960.7 1,784.5 1,557.3 1,413.9 1,413.9 1,411.7 1,446.9 1,521.5 6 Bonds 621.2 643.7 626.5 602.7 602.7 596.7 592.9 592.9 7 Inflation-indexed notes and bonds' 67.6 100.7 121.2 140.1 140.1 145.6 147.5 138.9 8 Nonmarketable2 2,249.9 2,485.1 2,651.2 2,947.9 2,947.9 2,958.9 3,062.2 3,079.6 9 State and local government series 165.3 165.7 151.0 146.3 146.3 141.1 142.8 144.3 10 Foreign issues3 34.3 31.3 27.2 15.4 15.4 14.6 13.3 12.5 11 Government 34.3 31.3 27.2 15.4 15,4 14.6 13.3 12,5 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 180.3 179.4 176.9 181.5 181,5 183.6 184.8 185,6 14 Government account series4 1,840.0 2,078.7 2,266.1 2,574.8 2,574.8 2,589.7 2,691.4 2,707.3 15 Non-interest-bearing 8.8 10.0 44.2 12.7 12.7 43.8 39.5 12.0 By holder•5 16 U.S. Treasury and other federal agencies and trust funds 1,828.1 2,064.2 2,270.1 2,572.2 2,572.2 2,581.4 2,686.0 2,701.3 17 Federal Reserve Banks6 452.1 478.0' 511.7 551.7 551.7 575.4 590.7 604.2 18 Private investors 3,334.0 3,233.9 2,880.4 2,819.5 2,819.5 2,849.2 2,849.8 2,924.8 19 Depository institutions 237,4 248.7 201.5 181.5' 181.5' 187.6 204.4 210.5 20 Mutual funds 253.9 228.6' 220.8' 257.5' 257.5' 264.9' 250.0' 252.4 21 Insurance companies 141.7 123.4 110.2 105.7' 105.7' 108.4 110.3' 115.4 22 State and local treasuries7 269.3 266.8 236.2 256.5' 256.5' 261.2 271.7' 269.4 Individuals 23 Savings bonds 186.6 186.4 184.8 190.3 190.3 191.9 192.7 193.3 24 Pension funds 330.2 321.0 304.1 281.6' 281.6' 293.3 286.0' 283.4 25 Private 112.5 109.8 108.4 104.2' 104.2' 106.3 108.8' 110.9 26 State and Local 217.7 211.2 195.7 177.4' 177.4' 187.0 177,2' 172.5 27 Foreign and international8 1,278.7 1,268.7 1,034.2 1,053.1' 1,053.1' 1,055.7' 1,071.3' 1,133.7 28 Other miscellaneous investors7-9 636.3 589.9' 587.7' 494.1' 494.1' 487.7' 451.9 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

A3 2 Domestic Financial Statistics • January 2003 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages 2002 2002, week ending July Aug. Sept. Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Oct. 30 By type of security 1 U.S. Treasury bills 42,178 42,257 46,861 49,793 44,674 48,206 45,376 48,782 46,133 46,096 37,637 47,376 Treasury coupon securities by maturity 2 Three years or less 135,856 130,594 133,211 143,322 118,131 107,754 172,167 129,102 110,546 114,032 161,122 144,196 3 More than three but less than or equal to six years 107,925 109,759 106,075 111,873 100,290 109,231 99,418 117,689 97,410 133,110 115,010 109,668 4 More than six but less than or equal to eleven years 80,832 89,647 83,783 83,573 74,353 83,124 85,916 97,184 82,041 110,480 111,082 92,675 5 More than eleven 20,675 19,554 22,090 18,288 14,290 26,841 25,918 23,326 20,213 24,985 20,061 20,452 6 Inflation-indexed2 3,994 2,042 2,439 2,408 2,104 2,796 2,408 2,472 5,454 5,235 3,086 3,737 Federal agency and governmentsponsored enterprises 7 Discount notes 55,917 50,486 49,573 60,279 40,553 49,186 50,967 55,793 49,593 50,278 49,441 48,678 Coupon securities by maturity 8 Three years or less 12,527 12,894 11,389 8,839 10.486 11,204 14,618 9,523 8,984 13,766 11,005 14,536 9 More than three years but less than or equal to six years 10,845 8,920 10.317 7,822 6,908 12,683 11,624 11,540 8,020 12,815 9,633 6,829 10 More than six years but less than or equal to eleven years .... 9,263 7,018 7,337 5,285 5,306 4,819 11,987 8,538 7,478 9,933 5,441 4,228 11 More than eleven years 966 1,081 1,147 812 1,171 1,022 1.198 1,456 762 2,094 1.737 831 12 Mortgage-backed 162,421 158,250 186,023 143,453 228,001 192,966 148,920 194,705 236,630 231,723 180,011 131.645 Corporate securities 13 One year or less 90,211 105,549 106,097 105,771 95,294 118,493 108,092 100,334 92,462 109,605 107,194 95,235 14 More than one year 15,545 15,327 18,433 12,568 15,135 20,906 21,826 18,063 15,026 15,582 15,010 17,405 By type of counterparty With interdealer broker 15 U.S. Treasury 185,034 181,302 184,949 184,572 163,619 180,012 205,152 195,307 168,517 205,589 215,950 194,377 16 Federal agency and governmentsponsored enterprises 12,940 10,840 10,217 8,131 7,697 9,342 14,221 10,594 9,166 11,081 10,548 11,031 17 Mortgage-backed 44,182 48,029 58,896 46,777 67,567 59,950 51,364 63,318 69,669 63,387 48.751 42,141 18 Corporate 321 308 373 240 324 346 463 441 406 293 375 431 With other 19 U.S. Treasury 206,426 212,551 209,510 224,685 190,223 197,941 226,051 223,249 193,281 228,349 232,047 223,726 20 Federal agency and governmentsponsored enterprises 76,577 69,560 69,548 74,906 56,728 69,572 76,175 76,258 65,670 77,805 66,710 64,073 21 Mortgage-backed 118,239 110,221 127,127 96,676 160,435 133,015 97,557 131,387 166,961 168,336 131,260 89,504 22 Corporate 105,436 120,568 124,156 118,098 110,105 139,052 129,455 117,956 107,082 124,894 121,828 112.208 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 All 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2002 2002, week ending July Aug. Sept. Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 Oct. 9 Oct. 16 Oct. 23 Net outright positions2 1 U.S. Treasury bills 18,313 11,225 8,379 14,143 13,828 6,768 2,644 6,425 4,735 9,987 15,831 Treasury coupon securities by maturity ') Three years or less -21,724 -22,358 -17,680 -16,391 -16,805 -15,484 -17,458 -23,319 -26,712 -33,528 -22,182 3 More than three years but less than or equal to six years -27,887 -31,298 -35,388 -35,557 -34,322 -38,199 -34,146 -34,548 -36,408 -32,265 -34,742 4 More than six but less than or equal to eleven years -18,793 -10,829 -15,420 -12,873 -15,220 -17,548 -15,053 -15,273 -18,442 -12,612 -11,724 5 More than eleven 9,643 9,542 9,083 8,621 10,336 8,210 9,559 8,257 7,216 8,455 7,949 6 Inflation-indexed 2,095 1,615 1,239 1,243 1,401 1,552 856 1,109 2,554 3,071 3,466 Federal agency and governmentsponsored enterprises 7 Discount notes 43,513 49,090 49,345 52,688 45,130 45,651 52,446 53,403 51,373 49,694 50,665 Coupon securities, by maturity 8 Three years or less 13,689 14,220 14,031 16,180 14,166 13,262 12,628 15,165 17,626 17,312 14,869 9 More than three years but less than or equal to six years 2,940 3,172 1,826 2,061 1,124 3,037 1,541 1,324 1,276 1,325 1,068 10 More than six but less than or equal to eleven years 2,518 2,805 2,242 2,719 2,232 2,577 1,212 2,850 3,637 2,860 2,405 11 More than eleven 1,843 2,197 2,303 2,314 2,164 2,295 2,477 2,259 1,814 2,235 2,381 12 Mortgage-backed 27,103 19,408 16,667 17,788 16,350 17,696 18,517 12,181 6,391 37,239 10,876 Corporate securities 13 One year or less 26,671 25,138 23,363 23,845 24,123 24,064 21,766 23,169 20,855 27,145 23,943 14 More than one year 50,029 47,631 48,908 47,294 45,056 46,976 52,598 53,129 55,857 54,307 48,299 Financing3 Securities in, US. Treasury 15 Overnight and continuing 597,214 621,725 627,852 634,109 612,503 622,927 639,847 634,437 649,969 629,323 602,931 16 Term 783,021 851,220 904,116 825,997 891,493 935,987 981,467 831,371 884,922 892,184 907,593 Federal agency and governmentsponsored enterprises 17 Overnight and continuing 148,869 152,003 156,069 161,585 153,590 155,997 153,880 158,294 158,970 159,739 154,666 18 Term 286,823 297.317 306,858 291,973 308,592 305,214 312,029 311,400 328,501 301,079 309,992 Mortgage-backed securities 19 Overnight and continuing 36,290 43,387 44,642 53,245 49,137 47,826 35,992 39,116 41,306 35,322 45,391 20 Term 265,468 272,722 278,235 262,391 281,581 281,670 286,360 270,040 278,470 276,023 288,415 Corporate securities 21 Overnight and continuing 49,918 51,730 50,351 52,142 51,613 50,540 48,892 48,930 48,760 49,215 49,683 22 Term 21,166 23,156 25,606 25,040 25,570 25.875 25,595 25,747 26,196 26,153 26,326 MEMO Reverse repurchase agreements 23 Overnight and continuing 423,236 461,682 477,054 502,394 460,847 472,576 480,787 480,515 481,214 475,331 447,086 24 Term 1,208,829 1,296,922 1,363,411 1,255,637 1,356,560 1,398,606 1,452,795 1,284,812 1,359,926 1,334,015 1,372,666 Securities out. U.S. Treasury 25 Overnight and continuing 544,079 584,373 596,372 608,472 599,755 589,210 596,199 592,224 596,345 566,545 551,031 26 Term 741,879 791,145 829,047 745,822 812,927 861,050 910,368 759,544 809,044 817,589 849,039 Federal agency and governmentsponsored enterprises 27 Overnight and continuing 269,456 279.430 279,838 277,706 272,784 277,245 291,553 278,646 284,135 288,322 298,331 28 Term 214,229 225,030 237,666 227,020 242,059 239.226 234,878 241,750 251,219 224,496 229,034 Mortgage-backed securities 29 Overnight and continuing 306,489 314,045 303,749 291,424 288,941 318,178 309,878 305,561 307,956 334,464 332,450 30 Term 176,112 171,418 176,871 172,445 192,671 175,240 176,362 161,289 171,096 170,989 184,765 Corporate securities 31 Overnight and continuing 129,395 131,536 127,796 127,535 127,520 127,636 127,627 128,853 127,251 135,297 131,662 32 Term 16,983 18,074 19,734 18,773 20,515 20,281 18,758 20,011 21,437 22,818 24,299 MEMO Repurchase agreements 33 Overnight and continuing 1,079,724 1,148,724 1,150,894 1,156,919 1,129,897 1,153,515 1,173,049 1,140,786 1,146,590 1,165,697 1,155,106 34 Term 1,122,435 1,176,213 1,231,403 1,134,701 1,237,932 1,267,030 1,305,023 1,146.680 1,218,693 1,199,461 1,249,778 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

A3 2 Domestic Financial Statistics • January 2003 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2002 AAggeennccyy 11999988 11999999 22000000 22000011 Apr. May June July Aug. 1 Federal and federallv sponsored agencies 1,296,477 1,616,492 1,851,632 2,121,057 2,144,106 2,150,724 2,161,580 n.a. n.a. Federal agencies 26,502 26,376 25,666 276 188 208 223 223 164 3 Defense Department1 6 6 6 6 6 6 6 6 6 4 Export-Import Bank'1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Federal Housing Administration4 205 126 255 26,828 26,331 26,450 26,826 26,541 26,274 6 Government National Mortgage Association certificates of participation^ n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. / Postal Service6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 Tennessee Vallev Authority 26,496 26,370 25,660 270 182 202 217 217 158 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 1,269,975 1,590,116 1,825,966 2,120,781 2,143,918 2,150,516 2,161,357 n.a. n.a. 1 1 Federal Home Loan Banks 382,131 529,005 594,404 623,740 637,963 640,222 643,102 651,253 659,258 12 Federal Home Loan Mortgage Corporation 287,396 360,711 426,899 565,071 596,800 601,037 601,363 604,853 603,135 13 Federal National Mortgage Association 460,291 547,619 642,700 763,500 783,100 782,000 789,000 784,020 789,900 14 Farm Credit Banks* 63,488 68,883 74,181 76,673 79,186 80,258 80,951 81,265 81,658 15 Student Loan Marketing Association9 35,399 41,988 45,375 48,350 49,500 48,900 49,600 48,500 49,500 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 debt" 44,129 42,152 40,575 39,096 37,639 37,175 37,091 37,830 42,825 Lending to federal and federally sponsored agencies 20 Export-Import Bank' n.a. 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. -n Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23 Tennessee Vallev Authoritv 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 9,500 6,665 5,275 n.a. n.a. n.a. n.a. n.a. n.a. 26 Rural Electrification Administration 14,091 14,085 13,126 13,876 14,053 14,184 14,301 14,338 13,599 27 Other 20.538 21,402 22,174 25,220 23,586 22,991 22,790 23,492 29,226 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 A29 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 2002 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11999999 22000000 22000011 Mar. Apr. May June July Aug. Sept. Oct. 1 All issues, new and refunding1 215,427 180,403 270,566 23,842 23,261 32,858 36,315 25,771 28,918 27,313 40,150 By type of issue 2 General obligation 73,308 64,475 100,519 10,269 8,559 10,446 16,166 10,130 10,226 9,562 16,075 3 Revenue 142,120 115,928 170,047 13,574 14,702 22,413 20,149 15,642 18,692 17,751 24,074 By type of issuer 4 State 16,376 19,944 30,099 3,265 3,057 1,531 3,718 3,404 3,472 2,442 4,199 5 Special district or statutory authority2 152,418 111,695 179,427 15,479 15,520 23,866 27,283 16,007 20,144 19,105 29,273 6 Municipality, county, or township 46,634 39,273 61,040 5,098 4,683 7,461 5,315 6,361 5,302 5,767 6,678 7 Issues for new capital 161,065 154,257 192,161 16,856 17,115 20,663 23,727 19,189 19,392 15,022 27,718 By use of proceeds 8 Education 36,563 38,665 50,054 5,484 5,279 6,027 7,060 4,205 3,968 3,529 5,209 9 Transportation 17,394 19,730 21,411 1,633 773 1,795 3,351 3,251 4,413 1,398 1,476 10 Utilities and conservation 15,098 11,917 21,917 1,290 2,091 1,785 1,087 1,660 2,806 2,038 6,922 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 9,099 7,122 6,607 515 344 614 631 760 283 574 1,225 13 Other purposes 47,896 47,309 55,733 4,894 6,784 6,962 7,653 5,893 6,537 5,597 6,996 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 2002 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11999999 22000000 22000011 oorr iissssuueerr Feb. Mar. Apr. May June July Aug. Sept. 1 All issues' 1,072,866 942,198 1,382,003 86,090 158,904 103,575 112,103 136,623 59,058 88,222 118,147 2 Bonds2 941,298 807,281 1,253,449 79,515 145,984 93,039 103,141 120,087 54,544 84,216 110,852 By type of offering 3 Sold in the United States 818,683 684,484 1,197,060 73,474 128,026 88,051 93,279 108,362 51,182 80,772 106,420 4 Sold abroad 122,615 122,798 56,389 6,041 17,958 4,989 9,862 11,725 3,362 3,444 4,432 MEMO 5 Private placements, domestic 24,703 18,370 8,734 0 0 0 4,506 3,068 0 0 65 By industry group 6 Nonfinancial 293,963 242,207 445,930 30,770 43,231 34,803 19,157 26,696 7,432 14,407 17,121 7 Financial 647,335 565,074 807,519 48,746 102,753 58,237 83,984 93,392 47,112 69,809 93,731 8 Stocks3 242,941 312,689 231,288 6,575 12,920 10,536 8,962 16,536 4,514 4,006 7,295 By type of offering 9 Public 131,568 134,917 128,554 6,575 12,920 10,536 8,962 16,536 4,514 4,006 7,295 10 Private placement4 111,373 177,772 102,734 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 11 Nonfinancial 110,284 118,369 77,577 4,024 4,893 7,834 6,633 11,608 1,833 539 2,754 12 Financial 21,284 16,548 50,977 2,551 8,027 2,702 2,329 4,928 2,681 3,467 4,541 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 for private placements are not available at a monthly frequency. 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

A3 2 Domestic Financial Statistics • January 2003 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets' Millions of dollars 2002 IItteemm 22000000 22000011 Mar. Apr. May June July Aug. Sept.r Oct. 1 Sales of own shares2 2,279,315 1,806,474 170,326 164,504 154,987 138,520 170,946 151,136 125,408 165,302 2 Redemptions of own shares 2,057,277 1,677,266 130,661 140,524 138,052 144,153 200,148 136,210 126,760 167,732 3 Net sales3 222,038 129,208 39,665 23,980 16,935 -5,633 -29,202 14,926 -1,352 -2.430 4 Assets4 5,123,747 4,689,624 4,814,961 4,704,886 4,693,928 4,434,603 4,124,186 4,170,641 3,899,858 4,059,840 5 Cash5 277,386 219,620 241,078 249,078 243,755 208,390 199,586 220,425 199,778 206.345 6 Other 4,846,361 4,470,004 4,573,883 4,455,808 4,450,173 4,226,213 3,924,600 3,950,216 3,700,080 3,853,495 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. 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities' Billions of dollars, end of period; not seasonally adjusted 2001 2002 AAccccoouunntt 11999999 22000000 22000011 Qi Q2 Q3 Q4 Ql Q2 Q3 ASSETS 1 Accounts receivable, gross2 845.4 958.7 948.3 954.5 988.8 967.8 948.3 930.0 941.9 943.4 2 Consumer 304.4 328.0 340.1 319.3 324.6 329.3 340.1 329.8 332.0 332.6 3 Business 395.1 458.4 447.0 459.1 481.9 451.1 447.0 443.0 449.4 445.5 4 Real estate 145.8 172.3 161.3 176.1 182.3 187.4 161.3 157.2 160.5 165.3 5 LESS: Reserves for unearned income 61.4 69.7 60.6 69.9 61.5 60.8 60.6 59.5 58.5 57.9 6 Reserves for losses 14.7 16.7 21.0 17.2 17.4 18.0 21.0 21.5 21.6 22.0 7 Accounts receivable, net 769.3 872.3 866.7 867.3 909.8 889.0 866.7 849.0 861.9 863.6 8 All other 406.6 461.5 523.4 474.8 458.9 478.7 523.4 515.2 530.6 557.7 9 Total assets 1,175.9 1,333.7 1,390.1 1,342.1 1,368.7 1,367.7 1,390.1 1,364.2 1,392.5 1,421.2 LIABILITIES AND CAPITAL 10 Bank loans 35.4 35.9 50.8 41.6 45.3 44.5 50.8 49.4 56.9 74.9 11 Commercial paper 230.4 238.8 158.6 180.9 181.6 171.0 158.6 137.0 130.8 143.1 Debt 12 Owed to parent 87.8 102.5 99.2 97.2 93.4 91.7 99.2 82.6 83.3 82.8 13 Not elsewhere classified 429.9 502.2 567.4 533.8 542.1 555.8 567.4 574.4 597.2 584.4 14 All other liabilities 237.8 301.8 325.5 325.2 336.3 327.6 325.5 329.1 331.5 341.6 15 Capital, surplus, and undivided profits 154.5 152.5 188.6 163.5 170.0 177.2 188.6 191.7 192.9 194.4 16 Total liabilities and capital 1,175.9 1,333.7 1,390.1 1,342.1 1,368.7 1,367.7 1,390.1 1,364.2 1,392.5 1,421.2 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses. Excludes pools of securitized assets, and banks. Data are amounts carried on the balance sheets of finance companies; securitized pools are not shown, as they are not on the books. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A31 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 2002 TTyyppee ooff ccrreeddiitt Apr/ May' June' July' Aug.' Sept. Seasonally adjusted 1 Total 1,031.2 1,187.0 1,248.5 1,236.5 1,243.1 1,258.3 1,269.0 1,269.1 1,269.3 7 Consumer 410.2 465.2 514.6 519.2 519.5 525.0 528.1 522.8 522.2 3 Real estate 174.0 198.9 207.7 196.2 200.8 203.1 206.7 209.6 207.7 4 Business 446.9 522.8 526.2 521.1 522.8 530.2 534.2 536.7 539.4 Not seasonally adjusted 5 Total 1,036.4 1,192.2 1,253.7 1,242.0 1,246.3 1,264.4 1,264.2 1,261.1 1,262.0 6 Consumer 412.7 468.3 518.1 515.2 515.7 524.9 528.6 525.0 524.3 7 Motor vehicle loans 129.2 141.6 173.9 168.8 168.8 170.3 172.5 170.3 176.5 8 Motor vehicle leases 102.9 108.2 103.5 96.8 96.1 96.4 94.9 90.5 88.5 9 Revolving2 32.5 37.6 31.5 29.7 30.1 32.1 36.6 36.5 37.3 10 Other3 39.8 40.7 31.1 32.5 33.3 33.2 33.0 33.0 32.3 Securitized assets4 11 Motor vehicle loans 73.1 97.1 131.9 140.4 141.1 142.4 141.9 144.4 138.9 17. Motor vehicle leases 9.7 6.6 6.8 6.3 6.3 6.2 6.1 6.0 6.0 13 Revolving 6.7 19.6 25.0 26.2 25.8 29.2 28.9 29.9 30.5 14 Other 18.8 17.1 14.3 14.4 14.3 15.0 14.7 14.4 14.4 15 Real estate 174.0 198.9 207.7 196.2 200.8 203.1 206.7 209.6 207.7 16 One- to four-family 108.2 130.6 120.1 116.9 120.4 121.8 125.7 128.7 126.5 17 Other 37.6 41.7 41.2 37.2 38.1 38.7 38.7 38.8 39.0 Securitized real estate assets4 18 One- to four-family 28.0 24.7 40.7 40.8 40.9 40.9 40.6 40.4 40.1 19 Other .2 1.9 5.7 1.4 1.4 1.7 1.7 1.7 2.2 70 Business 449.6 525.0 527.9 530.6 529.8 536.5 529.0 526.4 530.0 21 Motor vehicles 69.4 75.5 54.0 57.0 61.1 59.9 56.7 56.0 56.9 77 Retail loans 21.1 18.3 16.1 16.0 16.4 17.0 17.5 17.2 17.6 73 Wholesale loans5 34.8 39.7 20.3 23.0 26.9 25.8 22.3 22.2 23.3 74 Leases 13.6 17.6 17.6 18.0 17.8 17.1 16.9 16.6 15.9 2.5 Equipment 238.7 283.5 289.4 284.6 281.8 288.0 286.0 287.5 289.2 76 Loans 64.5 70.2 77.8 81.2 79.2 78.9 80.0 81.4 82.8 77 Leases 174.2 213.3 211.6 203.4 202.6 209.2 206.1 206.1 206.4 28 Other business receivables6 87.0 99.4 103.5 104.2 103.0 101.5 102.8 99.8 99.4 Securitized assets4 29 Motor vehicles 31.5 37.8 50.1 44.3 42.4 45.5 41.5 41.0 43.8 30 Retail loans 2.9 3.2 5.1 2.6 2.6 2.4 2.3 2.2 2.2 31 Wholesale loans 26.4 32.5 42.5 39.0 37.1 40.8 36.9 36.5 39.3 37 Leases 2.1 2.2 2.5 2.7 2.7 2.3 2.3 2.3 2.3 33 Equipment 14.6 23.1 23.2 20.8 21.9 21.7 21.6 22.0 21.6 34 Loans 7.9 15.5 16.4 14.2 15.2 15.0 15.0 15.4 14.8 35 Leases 6.7 7.6 6.8 6.7 6.6 6.7 6.7 6.6 6.7 36 Other business receivables6 8.4 5.6 7.7 19.6 19.6 19.9 20.3 20.1 19.1 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidibreakdowns have been obtained for some components. In addition, previously unavailable aries of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods, such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and 1. Owned receivables are those carried on the balance sheet of the institution. Managed receivable dealer capital; small loans used primarily for business or farm purposes; and receivables are outstanding balances of pools upon which securities have been issued; these wholesale and lease paper for mobile homes, campers, and travel trailers. balances are no longer carried on the balance sheets of the loan originator. Data are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2002 IItteemm 11999999 22000000 22000011 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 210.7 234.5 245.0 262.9 265.0 268.2 268.2 267.5 266.7 258.7 2 Amount of loan (thousands of dollars) 161.7 177.0 184.2 198.9 199.1 201.1 201.6 199.1 201.1 195.0 3 Loan-to-price ratio (percent) 78.7 77.4 77.3 77.7 77.2 77.1 77.5 77.3 77.6 77.7 4 Maturity (years) 28.8 29.2 28.8 28.8 29.0 29.0 29.1 29.0 29.1 28.8 5 Fees and charges (percent of loan amount)2 .77 .70 .67 .64 .59 .56 .62 .59 .60 .63 Yield (percent per year) 6 Contract rate1 6.94 7.41 6.90 6.65 6.51 6.38 6.28 6.17 6.09 6.00 7 Effective rate13 7.06 7.52 7.00 6.74 6.59 6.47 6.37 6.26 6.17 6.09 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 6.33 6.21 6.03 5.82 5.53 5.15 5.31 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 523,941 610,122 707,015 739,277 741,084 740,744 743,025 746,101 751,423 751,347 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 23,175 17,432 16,310 17,586 23,123 33,518 32,853 Mortgage commitments (during period) 15 Issued7 187,948 163,689 304,084 20,203 18,305 24,700 29,786 42,555 58,055 n.a. 16 To sell8 5,900 11,786 7,586 621 124 2,535 62 1,292 1,016 n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9. 17 Total 324,443 385,693 491,719 521,611 515,732 518,816 521,137 525,795 530,694 536,389 18 FHA/VA insured 1,836 3,332 3,506 3,298 2,571 3,649 3,413 4,195 4,634 n.a. 19 Conventional 322,607 382,361 488,213 518,313 513,161 515,167 517,724 521,600 526,060 n.a. 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 40,704 29,831 30,767 29,335 34,937 46,369 60,516 22 Mortgage commitments contracted (during period)9 228,432 169,231 417,434 44,509' 32,702 32,468 34,827 44,401 57,793 n.a. 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 3 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 2001 2002 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999988 11999999 22000000 Q2 Q3 Q4 Qi Q2P 1 All holders 5,715,556 6,320,508 6,885,322 7,211,919 7,407,178 7,589,577 7,753,640 7,965,275 By type of property 2 One- to four-familv residences 4,365,968 4,790,601 5,203,674 5,457,068 5,600,299 5,732,523 5,871,131 6,040,743 3 Multifamily residences 331,602 369,251 406,530 426,806 440,753 454,715 462,579 473,950 4 Nonfarm, nonresidential 921,482 1,057,692 1,166,261 1,215,062 1,251,517 1,286,011 1,301,859 1,330,409 5 Farm 96,504 102.964 108,858 112,983 114,610 116,329 118,071 120,173 By type of holder 6 Major financial institutions 2,194,591 2,394,271 2,618,969 2,711,268 2,734,217 2,791,076 2,789,654 2,860,812 7 Commercial banks2 1,336,996 1,495,420 1,660.054 1,722,376 1,736,631 1,789,819 1,800,362 1,875,360 8 One- to four-family 797,004 879,576 965,635 997,206 987,682 1,023,851 1,018,478 1.072,111 9 Multifamily 54,632 67,665 77,803 80,315 83,949 84,851 86,719 90,759 10 Nonfarm, nonresidential 456,323 516,333 582,577 609,750 629,624 645,619 659,187 675,530 11 Farm 29,037 31,846 34,039 35,104 35,375 35,498 35,978 36,960 12 Savings institutions3 643,955 668.064 722,974 751,646 758,344 758,236 745,998 740,288 13 One- to four-family 533,501 548,222 594,221 616,004 620,392 620,579 605,171 597,803 14 Multifamily 57,037 59,309 61,258 63,399 64,405 64,592 65,199 65,985 15 Nonfarm, nonresidential 53,002 60,063 66,965 71,664 72.977 72,534 75,077 75,949 16 Farm 414 470 529 578 569 531 551 551 17 Life insurance companies 213,640 230,787 235,941 237,246 239,243 243,021 243,293 245,165 18 One- to four-family 6,590 5,934 4,903 5,005 5,091 4,931 4,938 4,838 19 Multifamily 31,522 32,818 33,681 33,856 33,885 35,631 35,671 35,943 20 Nonfarm, nonresidential 164,004 179,048 183,757 184,713 186,469 188,376 188,599 190,499 21 Farm 11,524 12,987 13,600 13,672 13,798 14,083 14,085 13,885 22 Federal and related agencies 291,961 320,054 344,225 356,817 363.001 376,999 385,027 396.091 23 Government National Mortgage Association 7 7 6 6 9 8 8 8 24 One- to four-family 7 7 6 6 9 8 8 8 25 Multifamily 0 0 0 0 0 0 0 0 26 Farmers Home Administration4 40,851 73,871 73,323 73,206 72,118 72,452 72,362 71,970 27 One- to four-family 16,895 16,506 16,372 16,153 15,916 15,824 15,665 15,273 28 Multifamily 11,739 11,741 11,733 11,720 11,710 11,712 11,707 11,692 29 Nonfarm, nonresidential 7,705 41,355 41,070 41,262 40,470 40,965 41,134 41,188 30 Farm 4,513 4,268 4,148 4,072 4,023 3,952 3,855 3,817 31 Federal Housing Admin, and Dept. of Veterans Affairs 3,674 3,712 3,507 2,918 3,155 3,290 3,361 3,473 32 One- to four-family 1,849 1,851 1,308 1,267 1,251 1,260 1,255 1,254 33 Multifamily 1,825 1,861 2,199 1,651 1.904 2,031 2,105 2,218 34 Resolution Trust Corporation 0 0 0 0 0 0 0 0 35 One- to four-family 0 0 0 0 0 0 0 0 36 Multifamily 0 0 0 0 0 0 0 0 37 Nonfarm, nonresidential 0 0 0 0 0 0 0 0 38 Farm 0 0 0 0 0 0 0 0 39 Federal Deposit Insurance Corporation 361 152 45 24 26 13 7 22 40 One- to four-family 58 25 7 4 4 2 1 4 41 Multifamily 70 29 9 5 5 3 1 4 42 Nonfarm, nonresidential 233 98 29 15 17 8 4 14 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 156,023 149,422 155,626 160,820 165,687 169,908 176,051 180,491 45 One- to four-family 147,594 141,195 144,150 147,730 151,786 155,060 160,300 164,038 46 Multifamily 8,429 8,227 11,476 13,090 13,901 14,848 15,751 16,453 47 Federal Land Banks 32.983 34,187 36,326 38,686 39,722 40,885 41,981 42,951 48 One- to four-family 1,941 2,012 2,137 2,276 2,337 2,406 2,470 2,527 49 Farm 31,042 32,175 34,189 36,410 37,385 38,479 39,511 40,424 50 Federal Home Loan Mortgage Corporation 57,085 56,676 59,240 61,542 59,638 62,792 59,624 58,872 51 One- to four-family 49,106 44,321 42,871 42,537 39,217 40,309 35,955 34,062 52 Multifamily 7,979 12,355 16,369 19,005 20,421 22,483 23,669 24,810 53 Mortgage pools or trusts5 2,581,297 2,948,245 3,231,415 3,432,654 3,583,240 3,715,692 3,869,212 3,986,440 54 Government National Mortgage Association 537,446 582,263 611,553 598,019 603,186 591,368 587,423 583,950 55 One- to four-family 522,498 565,189 592,624 577,228 581,796 569,460 564,327 559,754 56 Multifamily 14,948 17,074 18,929 20,792 21,391 21,908 23,096 24,196 57 Federal Home Loan Mortgage Corporation 646,459 749,081 822,310 873,750 927,490 948,409 1,012,478 1,053,261 58 One- to four-family 643,465 744,619 816,602 867,924 921,709 940,933 1,005.136 1,045,981 59 Multifamily 2,994 4,462 5,708 5,826 5,781 7,476 7,342 7,280 60 Federal National Mortgage Association 834,517 960,883 1,057,750 1,163,978 1,228,131 1,290,351 1,355,404 1,404,594 61 One- to four-family 804,204 924,941 1,016,398 1,116,534 1,177,995 1,238,125 1,301,374 1,349,442 62 Multifamily 30,313 35,942 41,352 47,444 50,136 52,226 54,030 55,152 63 Farmers Home Administration4 1 0 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 1 0 0 0 0 0 0 0 68 Private mortgage conduits 562,874 656,018 739,802 796,907 824,433 885,564 913,907 944,635 69 One- to four-family6 405,153 455,021 499,834 539,200 550,200 591,200 616,300 637,200 70 Multifamily 33,784 42,293 48,786 50,836 53,627 57,009 57,535 59,180 71 Nonfarm, nonresidential 123,937 158,704 191,182 206,871 220,606 237,355 240,072 248,255 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 647,708 657,938 690,714 711,181 726,719 705,811 709,748 721,932 74 One- to four-family 435,137 459,385 490,675 508,569 522,441 501,081 508,260 518,269 75 Multifamily 76,320 75,244 77,006 78,680 79,464 79,791 79,612 80,153 76 Nonfarm, nonresidential 116,277 102,092 100,681 100,786 101,354 101,154 97,786 98,974 77 Farm 19,974 21,217 22,352 23,147 23,460 23,786 24,091 24,536 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

A34 Domestic Financial Statistics • January 2003 1.55 CONSUMER CREDIT' Millions of dollars, amounts outstanding, end of period 2002 Apr.' May' June' July' Aug.' Sept. Seasonally adjusted 1 Total 1,416,316 1,560,634 1,667,928 1,695,516 1,702,968 1,707,460 1,717,700 1,723,277 1,733,239 2 Revolving 597,669 666,607 699,875 708,091 709,657 712,098 717,388 723.375 728.992 3 Nonrevolving2 818,647 894,027 968,053 987,425 993,311 995,362 1,000,312 999,902 1,004,248 Not seasonally adjusted 4 Total 1,446,127 1,593,116 1,701,856 1,682,868 1,690,412 1,700,290 1,708,474 1,725,045 1,731,287 By major holder 5 Commercial banks 499,758 541,470 558,421 556,033 557,521 557,317 558,187 574.164 579,431 6 Finance companies 201,549 219,848 236,559 231,045 232,116 235,640 242,088 238,689 244,109 7 Credit unions 167,921 184,434 189,570 188,885 190,672 191,618 194,060 195,559 195,998 8 Savings institutions 61,527 64,557 69,070 67,742 66,858 66,002 69,284 69,971 70,657 9 Nonfinancial business 80,311 82,662 67,955 56,922 55,804 53,013 51.332 52.170 50,786 10 Pools of securitized assets' 435,061 500,145 580,281 582,242 587,442 596,700 593,522 594,494 590,307 By major type of credit* 11 Revolving 621,914 693.020 727,297 703,423 704,790 709,440 710,596 720,108 723,651 12 Commercial banks 189,352 218,063 224,878 221,261 218,368 215,852 214,994 226,416 228,730 13 Finance companies 32,483 37,627 31,538 29,686 30,073 32,131 36,570 36,529 37,280 14 Credit unions 20,641 22,226 22.265 20,855 20,882 20,988 21,206 21,505 21,395 15 Savings institutions 15,838 16,560 17,767 17,216 17,452 17,680 17,426 17,864 18,302 16 Nonfinancial business 42,783 42,430 29,790 21,357 20,359 17,859 16,467 16,747 15,644 17 Pools of securitized assets3 320,817 356,114 401,059 393,048 397,655 404,930 403,933 401,048 402,300 18 Nonrevolving 824,213 900,096' 974,559 979,445 985,623 990,850 997.878 1,004,937 1,007,636 19 Commercial banks 310,406 323,407 333,543 334,772 339,153 341,465 343,193 347,748 350,700 20 Finance companies 169,066 182,221 205,021 201,359 202,043 203,509 205,518 202,161 206,828 21 Credit unions 147.280 162,208 167,305 168,030 169,790 170,630 172,854 174,054 174,603 22 Savings institutions 45,689 47,997 51,303 50,526 49,406 48,322 51.858 52,107 52,356 23 Nonfinancial business 37,528 40,232 38,165 35,565 35,445 35,154 34,866 35.423 35,143 24 Pools of securitized assets' 114,244 144,031 179,222 189,194 189,787 191,770 189,590 193.445 188,006 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 2002 IItteemm 11999999 22000000 22000011 Mar. Apr. May June July Aug. Sept. INTEREST RATES Commercial hanks2 1 48-month new car 8.44 9.34 8.50 n.a. n.a. 7.74 n.a. n.a. 5.95 n.a. 2 24-month personal 13.39 13.90 13.22 n.a. n.a. 12.57 n.a. n.a. 11.28 n.a. Credit card plan 3 All accounts 15.21 15.71 14.89 n.a. n.a. 13.55 n.a. n.a. 13.37 n.a. 4 Accounts assessed interest 14,81 14.91 14.44 n.a. n.a. 13.34 n.a. n.a. 13.26 n.a. Auto finance companies 5 New car 6.66 6.61 5.65 5.87 5.51 6.15 6.29 3.50 2.23 2.43 6 Used car 12.60 13.55 12.18 11.14 10.94 10.90 10.77 10.62 10.50 10.44 OTHER TERMS3 Maturity (months) 7 New car 52.7 54.9 55.1 56.4 55.9 57.3 58.6 59.1 59.4 58.4 8 Used car 55.9 57.0 57.5 57.7 57.7 57.8 57.7 57.7 57.6 57.5 Loan-to-value ratio 9 New car 92 92 91 90 93 92 92 95 96 96 10 Used car 99 99 100 100 101 101 100 100 100 100 Amount financed (dollars) 11 New car 19,880 20,923 22,822 23,065 23,535 23,324 23,115 24,802 26,208 26,396 12 Used car 13,642 14,058 14,416 14,149 14,363 14,700 14,787 14,843 14.815 14,799 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Ql Q2 Q3 Q4 Ql Q2' Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors . . 733.3 804.4 1,042.4 1.057.5r 853.9r 949.1r 1,032.4' 1,276.8' 1,213.7' 927.3' 1,613.7 1,329.4 By sector and instrument 7 Federal government 144.9 23.1 -52.6 -71.2 -295.9 -59.3 -215.8 209.3 43.4 39.8 526.0 265.7 Treasury securities 146.6 23.2 -54.6 -71.0 -294.9 -57.0 -216.9 209.7 44.2 41.6 524.2 264.2 4 Budget agency securities and mortgages -1.6 -.1 2.0 -.2 -1.0 -2.2 1.1 -.4 -.7 -1.8 1.8 1.6 5 Nonfederal 588.3 781.3 1,095.0 l,I28.7r 1,149.8' 1,008.4' 1,248.2' 1,067.4' 1,170.2' 887.5' 1,087.7 1,063.7 By instrument 6 Commercial paper -.9 13.7 24.4 37.4 48.1 -199.2 -133.4 -66.1 45.5 -155.7 -93.0 -28.7 7 Municipal securities and loans 2.6 71.4 96.8 68.2 35.3 102.9 107.3 70.0 190.1 70.3 181.2 152.8 8 Corporate bonds 116.3 150.5 218.7 229.9 171.1 399.5 419.5 187.9 323.5 233.8 207.0 -23.4 9 Bank loans n.e.c 70.4 106.4 108.2 82.8 101.7 -19.5 -121.0 -24.4 -164.5 -18.8 -192.8 -125.1 in Other loans and advances 28.7 59.5 82.1 46.0r 95.0' 32.5' 132.3' 59.4' -107.3' -20.6' 77.2 84.0 11 Mortgages 280.1 322.3 489.8 564.9 559.6' 547.7' 767.5' 770.0' 732.9' 696.8' 831.8 944.0 i? Home 241.7 258.3 387.7 424.6 413.7' 423.4' 607.8' 559.3' 530.6' 601.1' 657.4 786.2 n Multifamily residential 9.8 7.3 23.4 35.7 35.2 37.6 40.8 56.5 56.5 29.2 44.3 35.8 14 Commercial 25.8 53.5 72.2 98.8 104.2 82.3 107.0 147.1 139.0 59.6 121.0 109.5 15 Farm 2.7 3.1 6.5 5.8 6.5 4.3 11.9 7.0 6.8' 6.9' 9.1 12.4 16 Consumer credit 91.3 57.5 75.0 99.5 139.0 144.5 76.0 70.6 149.9 81.7' 76.4 60.1 By borrowing sector 17 Household 339.8 332.7 454.8 498.0 541.3' 506.5' 650.6' 661.3' 623.3' 702.6' 679.8 770.7 18 Nonfinancial business 255.3 392.5 559.9 578.4' 581.4' 405.7' 495.1' 349.6' 389.2' 122.6' 239.5 153.2 19 Corporate 183.1 291.6 392.1 390.5' 399.8' 237.7' 313.5' 191.3' 239.8' 7.1' 98.3 10.7 7(1 Nonfarm noncorporate 67.3 94.7 159.7 182.4 170.7 162.2 170.1 153.8 141.1 110.3 132.7 128.9 71 Farm 4.9 6.2 8.0 5.5 10.9 5.7 11.5 4.4 8.3 5.3' 8.5 13.5 22 State and local government -6.8 56.1 80.3 52.3 27.2 96.3 102.5 56.6 157.7 62.3 168.4 139.9 23 Foreign net borrowing in United States 88.4 71.8 43.2 25.2 65.7 —8.5 -50.5 -106.7 16.0 75.3 15.0 -36.8 74 Commercial paper 11.3 3.7 7.8 16.3 31.7 -33.8 -3.8 -25.2 5.9 64.8 36.3 3.8 75 Bonds 67.0 61.4 34.9 14.1 23.9 21.4 -15.8 -83.9 29.7 -2.3 -41.0 -27.6 76 Bank loans n.e.c 9.1 8.5 6.6 .5 11.4 14.3 -31.4 4.2 -16.3 13.9 22.0 -11.7 27 Other loans and advances 1.0 -1.8 -6.0 -5.7 -1.3 -10.4 .5 -1.8 -3.3 -1.2 -2.3 -1.3 28 Total domestic plus foreign 821.7 876.2 1,085.6 1,082.6' 919.6' 940.6' 981.9' 1,170.1' 1,229.6' 1,002.6' 1,628.8 1,292.6 Financial sectors 29 Total net borrowing by financial sectors 550.1 662.2 1,087.2 1,073.3' 809.0' 915.8' 828.2' 1,118.6' 979.1' 860.8' 866.3 855.9 By instrument 30 Federal government-related 231.4 212.9 470.9 592.0 433.5 432.6 674.6 818.4 591.8 691.1' 487.9 425.6 31 Government-sponsored enterprise securities 90.4 98.4 278.3 318.2 234.1 262.3 268.3 326.2 306.5 191.3 141.7 253.2 32 Mortgage pool securities 141.0 114.6 192.6 273.8 199.4 170.3 406.2 492.2 285.3 499.8' 346.2 172.4 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 318.7 449.3 616.3 481.3' 375.5' 483.3' 153.7' 300.2' 387.3' 169.7' 378.4 430.3 3S Open market paper 92.2 166.7 161.0 176.2 127.7 -83.8 -77.9 -72.2 -13.6 -178.3 -109.1 84.3 36 Corporate bonds 178.1 218.9 310.2 207.1' 199.3' 459.7' 223.2' 313.9' 375.3' 345.1' 431.9 194.7 37 Bank loans n.e.c 12.6 13.3 30.1 -14.2 _ 2 24.3 10.8 1.6 18.3 .2 31.9 82.2 38 Other loans and advances 27.9 35.6 90.2 107.1 42.5 90.6 -18.7 58.8 8.9 -3.9 16.7 71.9 39 Mortgages 7.9 14.9 24.8 5.1 6.2 -7.5 16.2 -1.9 -1.6 6.6 7.0 -2.7 By borrowing sector 40 Commercial banking 13.0 46.1 72.9 67.2 60.0 138.1 -10.5 39.7 44.1 24.3 13.3 111.3 41 Savings institutions 25.5 19.7 52.2 48.0 27.3 55.5 3.4 39.4 -68.6 -33.1 -12.1 -10.2 47 Credit unions .1 .1 .6 2.2 .0 -.6 .8 1.5 4.4 2.4 2.0 1.0 43 Life insurance companies I.I .2 .7 .7 -.7 -2.4 .1 3.5 1.4 2.4 1.2 .7 44 Government-sponsored enterprises 90.4 98.4 278.3 318.2 234.1 262.3 268.3 326.2 306.5 191.3 141.7 253.2 45 Federally related mortgage pools 141.0 114.6 192.6 273.8 199.4 170.3 406.2 492.2 285.3 499.8' 346.2 172.4 46 Issuers of asset-backed securities (ABSs) 150.8 202.2 321.4 212.3' 189.7' 320.5' 205.9' 318.9' 432.6' 254.5' 237.7 203.0 47 Finance companies 50.6 57.8 57.1 70.3 81.2 -54.0 36.8 41.8 -25.3 -31.2 80.2 106.4 48 Mortgage companies 4.1 -4.6 1.6 .2 .1 .7 .6 .8 .6 .8 .7 .7 49 Real estate investment trusts (REITs) 11.9 39.6 62.7 6.3 2.7 -6.1 10.5 -2.4 7.8 7.4 25.3 18.4 50 Brokers and dealers -2.0 8.1 7.2 -17.2 15.6 -23.7 35.6 12.6 -18.9 -15.7 17.5 15.0 51 Funding corporations 63.8 79.9 40.0 91.5 -.4 55.3 -129.6 -155.7 9.1 -42.2 12.4 -16.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 1.57 FUNDS RAISED IN US. CREDIT MARKETS'—Continued Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999966 11999977 11999988 11999999 22000000 Ql Q2 Q3 Q4 Ql' Q2' Q3 All sectors 5522 TToottaall nneett bboorrrroowwiinngg,, aallll sseeccttoorrss 1,371.7 1,538.5 2,172.8 2,155.9' l,728.6r l,856.5r l,810.1r 2,288.7r 2,208.7r 1,863.4 2,495.1 2,148.5 5533 OOppeenn mmaarrkkeett ppaappeerr 102.6 184.1 193.1 229.9 207.6 -316.8 -215.1 -163.5 37.8 -269.2 -165.8 59.4 5544 UU..SS.. ggoovveerrnnmmeenntt sseeccuurriittiieess 376.3 236.0 418.3 520.7 137.6 373.3 458.8 1,027.8 635.2 730.9 1.013.9 691.4 5555 MMuunniicciippaall sseeccuurriittiieess 2.6 71.4 96.8 68.2 35.3 102.9 107.3 70.0 190.1 70.3 181.2 152.8 5566 CCoorrppoorraattee aanndd ffoorreeiiggnn bboonnddss 361.3 430.8 563.7 451.2r 394.3' 880.6' 626.9' 417.9' 728.4' 576.6 597.9 143.7 5577 BBaannkk llooaannss nn..ee..cc 92.1 128.2 145.0 69.0 112.8 19.2 -141.6 -18.6 -162.4 -4.6 -139.0 -54.7 5588 OOtthheerr llooaannss aanndd aaddvvaanncceess 57.7 93.2 166.3 147.4' 136.2' 112.7' 114.2' 116.5' -101.8' -25.7 91.5 154.6 5599 MMoorrttggaaggeess 287.9 337.2 514.6 570.0 565.9' 540.2' 783.7' 768.0' 731.3' 703.4 838.8 941.2 6600 CCoonnssuummeerr ccrreeddiitt 91.3 57.5 75.0 99.5 139.0 144.5 76.0 70.6 149.9 81.7 76.4 60.1 Funds raised through mutual funds and corporate equities 61 Total net issues 233.4r 181.8r 114.4r i58.r 194.6r 230.8r 407.2r 133.4r 375.5r 438.3 284.0 -90.2 62 Corporate equities -4.2r -83.3' -165.1' -33.1' -40.4' 114.8' 133.6' -27.0' 119.6' 51.4 183.9 -133.1 63 Nonfinancial corporations -69.5 -114.4 -267.0 -143.5 -159.7 -25.0 -70.7 -126.6 -25.0 -8.7 18.5 -139.0 64 Foreign shares purchased by U.S. residents 82.8 57.6 101.3 114.3 103.6 86.1 222.9 43.5 74.7 -5.9 80.9 -68.2 65 Financial corporations -17.6' -26.5' .6' -4.0' 15.7' 53.7' -18.5' 56.1' 69.9' 65.9 84.5 74.1 66 Mutual fund shares 237.6 265.1 279.5 191.2 235.0 116.0 273.5 160.4 255.9 386.9 100.0 42.9 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 TRANSACTIONS' Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 2001 2002 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999966 11999977 11999988 11999999 22000000 Ql Q2 Q3 Q4 Ql Q2' Q3 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,371.7 1,538.5 2,172.8 2,155.9' 1,728.6' 1,856.5' 1,810.1' 2,288.7' 2,208.7' l,863.4r 2,495.1 2,148.5 2 Domestic nonfederal nonfinancial sectors 108.2' 29.8' 255.2' 253.1' -loo.r -115.9' -165.2' 1.1' 16.4' 167.8' 257.4 -233.8 3 Household 148.1' 39.8' 123.4' 243.4' -103.1' -135.5' -174.4' -5.6' -33.8' 115.9' 207.0 -250.3 4 Nonfinancial corporate business -10.2 -12.7 -16.0 -15.6 5.0 -22.5 -24.6 -34.1 5.8 49.7' 4.5 .8 5 Nonfarm noncorporate business 4.0 2,6 13.3 -3.0 -1.2 3.2 .3 3.3 2.0 3.3 3.3 -2.2 6 State and local governments -33.7 .1 134.5 28.4 -.8 38.9 33.5 37.4 42.4 -1.1 42.5 17.8 7 Federal government -7.2 5.1 13,5 5.8 7.3 4.4 9.4 3.3 7.0 4.7 8.9 7.3 8 Rest of the world 379.6 259.6 172.5 139.7 225.9 325.7 254.9 269.2 432.5 171.8 566.1 561.7 9 Financial sectors 891.2' 1,244.0' 1,731.6' 1,757.3' 1,595.4' 1,642.3' 1,711.1' 2,015.1' 1,752.8' 1,519.1' 1,662.7 1,813.3 10 Monetary authority 12.3 38.3 21.1 25.7 33.7 39.0 26.9 8.4 85.1 81.6 43.4 67.3 11 Commercial banking 187.5 324.3 305.6 312.2 357.9 130.4 107.8 267.9 314.6 188.9 384.3 623.5 12 U.S.-chartered banks 119.6 274.9 312.1 318.6 339.5 92.3 156.5 242.5 275.0 168.2 343.8 599.6 13 Foreign banking offices in United States 63.3 40.2 -11.6 -17.0 23.9 34.5 -50.1 21.1 -7.8 2.1 33.7 21,5 14 Bank holding companies 3.9 5.4 -.9 6.2 -12.2 7.3 -2.8 -1.4 13.6 12.0 1.9 -1.6 15 Banks in U.S.-affiliated areas .7 3.7 6.0 4.4 6.7 -3.6 4.2 5.7 33.9 6.6 4.9 4,0 16 Savings institutions 19.9 -4.1 36.2 67.7 56.2 46.8 55.8 -4.7 73.1 12.3 -23.5 80.7 17 Credit unions 25.5 16.8 18.9 27.5 28.0 34.9 9.6 61.1 60.5 58.3' 41.1 39.9 18 Bank personal trusts and estates -7.7 -25.0 -12.8 27.8 .8' 4.0' 5.5' 4.9' 8.9' 11.3' 11.4 4.9 19 Life insurance companies 69.6 104.8 76.9 53.5 57.9 111.8 143.6 186.9 81.3 260.6 175,1 229.1 20 Other insurance companies 22.5 25.2 5.8 -3.0 -8.7 2.1 .1 5,1 28.5 36.7 35.4 35.3 21 Private pension funds ^1.1 47.6 -23.4 17.0 33.4 20.7 44.7 10.4 5.3 27.4 45,9 35.5 72 State and local government retirement funds 35.8 67.1 72.1 46.9 54.6 -70.7 77.0 -74.2 -2.7 70.5 -54.5 -33.0 73 Money market mutual funds 88.8 87.5 244.0 182.0 143.0 326.4 210.0 339.3' 108.4' -296.8 -122.3 -12.1 ?4 Mutual funds 48.9 80.9 127.3 48.4 21.0 93.0 169.1 102.7 139.3 243.3' 42.0 164.8 75 Closed-end funds 5.2' -2.8' 5.2' 8.2' -6.3' -6.9' -4.9' 24.4' 14.8' 20.9' 2.2 11.6 26 Government-sponsored enterprises 97.1 106.3 314.0 291.3 256.4 329.2 297.2 274.3 335.3 236.7 129.0 174.8 27 Federally related mortgage pools 141.0 114.6 192.6 273.8 199.4 170.3 406.2 492.2 285.3 499.8' 346.2 172.4 7.8 Asset-backed securities issuers (ABSs) 120.5 163.8 281.7 194.1' 159.9' 292.5' 177.6' 293.4' 409.9' 230.3' 215.5 180.4 29 Finance companies 18.9 23.1 77.3 97.0 108.0 8.9 112.1 -43.1 -100.5 -28.2' 39.6 79.1 30 Mortgage companies 8.2 -9.1 3.2 .3 .2 1.4 1.1 1.7 1.2 1.6 1.4 1.5 31 Real estate investment trusts (REITs) 4.4 20.2 -5.1 -2.6 -6.3 4.0 1.1 7.8 14.0 26.3 31.8 25.0 32 Brokers and dealers -15.7 14.9 6.8 -34.7 68.9 242.3' 53.4' 184.5' -110,5' -219.5 403.0 -191.4 33 Funding corporations 12.6 50.4 -15.8 124.0 37.4' -137.9' -182.9' -128.0' 1.0' 56.8' -84.3 139.1 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,371.7 1,538.5 2,172.8 2,155.9' 1,728.6' 1,856.5' l,810.1r 2,288.7' 2,208.7' 1,863.4' 2,495.1 2,148.5 Other financial sources 35 Official foreign exchange -6.3 .7 6.6 -8.7 -.4 -1.5 4.7 13.7 .2 -3.0 12.9 5.6 36 Special drawing rights certificates -.5 -.5 .0 -3.0 -4.0 .0 .0 .0 .0 ,0 .0 .0 37 Treasury currency .5 .5 .6 1.0 2.4 -1.1 1.1 .0 .0 .0 .0 .0 38 Foreign deposits 85.9 107.7 6.5 61.0 135.1 228.3 -175.9 41.5 17.9 -59.1 89.3 40.0 39 Net interbank transactions -51.6 -19.7 -31.8 15.0 15.1 -141.8 -25.4 -1.1 41,5 -1.2 -149.3 48.7 40 Checkable deposits and currency 15.7 41.2 47.3 151.2 -71.4 164.1 155.2 212.1 278.9 3.2 285.9 284.6 41 Small time and savings deposits 97.2 97.1 152.4 45.1 188.8 266.9 242.1 230.3 329.7 259.7 249.0 325.6 42 Large time deposits 114.0 122.5 91.8 131.1 116.2 133.9 43.0 19.5 77.8 270.0 34.9 28.1 43 Money market fund shares 145.4 155.9 287.2 249.1 233.3 578.4 370.0 386.1' 379.8' -315.7 103.4 -192.6 44 Security repurchase agreements 41.4 120.9 91.3 169.8 113.2 -94.3 114.0 215.6' -139.1' -55.8' 252.8 -135.9 45 Corporate equities -4.2' -83.3' -165.1' -33.1' -40.4' 114.8' 133.6' -27.0' 119.6' 51.4' 183.9 -133.1 46 Mutual fund shares 237.6 265.1 279.5 191.2 235.0 116.0 273.5 160.4 255.9 386.9' 100.0 42.9 47 Trade payables 123.3 139.8 106.4 268.6 170.2 186.4 -119,6 ^17.3 -96.5 217.9 67.0 148.1 48 Security credit 52.4 111.0 103.2 104.4 146.1 -91.1 -73.9 561.3' -383.7' -190.7' -129.4 -118,2 49 Life insurance reserves 44.5 59.3 48.0 50.8 50.2 62.3 52.2 74.7 119.6 93,9 92.2 117.4 50 Pension fund reserves 148.3 201.4 217.4 181.8 209.0 295.9 209.1 180.3 150.8 134.1' 145.5 263.4 51 Taxes payable 19.5 22.3 19.6 23.2 21.7 4.3 14.8 104.9 -67.0 20.4 62.4 -60.4 52 Investment in bank personal trusts -5.1' -53.0' —46.1' -8.1' 56.6' 27.1' 31.9' 31.7' 35.2' 26.5' 26.8 20.7 53 Noncorporate proprietors' equity 5.5 -40.7 -57.8 -38.7 -10.2 -19.7 -26.4 ^14.6' -1.8' -13.2' -51.8 -75.9 54 Miscellaneous 522.4 493.8 956.9 1,053.8' 1,164.9' 748.6' 867.3' 857.0' 190.9' 132.6' 523.3 752.1 55 Total financial sources 2,957.8r 3,280.5' 4,286.6' 4,761.4' 4,460.0' 4,434.1' 3,901.5' 5,258.0r 3,518.4r 2,821.3' 4,394.0 3,509.7 Liabilities not identified as assets (—) 56 Treasury currency -.4 -.2 -.1 -.7 -1.2 -3.6 -.5 -1.4 .0 -2.4 -.7 -1.3 57 Foreign deposits 59.4 106.2 -8.5 42.6 55.9 182.1 -166.8 54.5 -28.7' -36.6 130.9 9.7 58 Net interbank liabilities -3.3 -19.9 3.8 .1 20.4 21.8 17.0 7.4 22.6 39.4 -9.3 12.2 59 Security repurchase agreements 2.4 63.2 57.7 35.7 118.6 -277.2 124.6 110.4' -166.8' -17.3' 115.9 -349.8 60 Taxes payable 23.1 28.0 19.7 11.7 26.2 24.9 3.1 25.4 22.8' 31.1 -30.3 74.6 61 Miscellaneous -177.4 -248.3 -158.9 -290.4' -398.0' -253.8' -538.9' 84.5' -197.6' -396.0' -86.9 152.8 Floats not included in assets (-) 62 Federal government checkable deposits .5 -2.7 2.6 -7,4 9.0 64.9 64.7 -23.0 -91.1 190.3 185.7 28.0 63 Other checkable deposits -4.0 -3.9 -3.1 -.8 1.7 3.6 3.9 5.0 5.7 6.1 7.1 7.6 64 Trade credit -25.7 -25.5 -43.3 2.8 26.1 48.1 28.6 -19.3' 37.8' 3.1' -72.7 -1.6 65 Total identified to sectors as assets 3,083.5r 3,383.6' 4,416.7' 4,967.7' 4,601.5' 4,623.2' 4,365.7r 5,044.4' 3,913.8' 3,003.6' 4,154.3 3,577.6 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F.l and E5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 2 Domestic Financial Statistics • January 2003 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 2001 2002 Q1 Q2 Q3 Q4 01 Q2' Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 15,243.1 16,285.5 17,377.6r 18,250.6' 18,498.8' 18,673.4' 18,988.9' 19,369.2' 19,601.0' 19,915.4 20,257.3 By sector and instrument 2 Federal government 3,804.8 3,752.2 3,681.0 3.385.1 3,408.8 3,251.4 3.320.0 3,379.5 3,430.3 3.451.4 3,540.8 3 Treasury securities 3.778.3 3,723.7 3,652.7 3,357.8 3,382.0 3,224.3 3,293.0 3,352.7 3,404.0 3,424.6 3.513.6 4 Budget agency securities and mortgages 26.5 28.5 28.3 27.3 26.8 27.0 27.0 26.8 26.3 26.8 27.2 5 Nonfederal 11.438.3 12.533.3 13.696.7' 14,865.5' 15.090.1' 15,422.0' 15,669.0' 15,989.7' 16.170.7' 16.464.1 16.716.4 Bv instrument 6 Commercial paper 168.6 193.0 230.3 278.4 253.2 223.3 201.3 190.1 167.5 148.4 142.2 7 Municipal securities and loans 1,367.5 1,464.3 1,532.5 1,567.8 1,597.5 1,629.8 1,635.3 1,685.4 1,707.5 1.758.2 1,783.8 8 Coiporate bonds 1,610.9 1,829.6 2.059.5 2.230.6 2,330.4 2,435.3 2,482.3 2,563.2 2,621.6 2,673.4 2,667.5 9 Bank loans n.e.c 1,040.4 1.148.6 1.231.4 1,333.1 1,320.7 1,293.6 1,285.1 1,251.4 1.237.3 1.192.1 1,159.1 10 Other loans and advances 825.1 907.2 953.5' 1.059.6' 1,073.6' 1.103.6' 1.110.1' 1,088.8' 1.089.2' 1,105.6 1.118.2 11 Mortgages 5,154.3 5.644.1 6.243.4 6.803.0' 6,929.3' 7,128.2' 7,324.4' 7,507.6' 7,670.4' 7.886.0 8.125.1 12 Home 3.978.3 4,366.0 4,790.6 5,204.3' 5,299.4' 5,458.4' 5,602.1' 5,734.6' 5,873.4' 6,045.4 6,245.2 13 Multifamily residential 284.6 308.0 343.9 379.2 388.6 398.8 412.9 427.0 434.3 445.4 454.4 14 Commercial 801.4 873.6 1,006.5 1,110.7 1,131.3 1,158.0 1,194.8 1,229.6 1,244.5 1,274.7 1,302.1 15 Farm 90.0 96.6 102.3 108.9 110.0 113.0 114.6 116.3 118.1 120.4 123.4 16 Consumer credit 1.271.6 1.346.6 1,446.1 1,593.1 1,585.3 1,608.1 1,630.5 1,703.3 1,677.2' 1,700.3 1.720.6 By borrowing sector 17 Households 5.556.9 6,011.8 6,510.0 7,070.4' 7.139.3' 7,315.1' 7,486.9' 7,680.8' 7,794.2' 7,979.0 8,178.3 18 Nonfinancial business 4.761.9 5,321.7 5.934.5' 6,515.9' 6,643.3' 6,769.0' 6,841.4' 6,926.4' 6,973.7' 7,035.5 7,065.5 19 Corporate 3.382.0 3,774.1 4,199.0' 4,598.9' 4,686.1' 4,763.7' 4.798.1' 4,845.1' 4,865.2' 4,889.0 4,885.2 20 Nonfarm noncorporate 1.224.0 1.383.7 1,566.1 1,736.8 1,777.5 1,820.1 1,857.4 1,893.6 1,921.3 1.954.6 1,985.6 21 Farm 155.9 163.9 169.4 180.2 179.7 185.2 185.9 187.7 187.1 191.8 194.7 22 State and local aovernment 1.119.5 1.199.8 1,252.1 1,279.3 1,307.5 1,337.8 1,340.6 1,382.5 1,402.8 1,449.6 1,472.6 23 Foreign credit market debt held in United States 607.9 651.3 676.7 742.3 740.4 726.1 701.7 704.9 724.2 725.6 719.1 24 Commercial paper 65.1 72.9 89.2 120.9 112.8 110.1 106.3 106.7 123.6 130.2 134.0 25 Bonds 427.7 462.6 476.7 500.6 505.9 502.0 481.0 488.4 487.9 477.6 470.7 26 Bank loans n.e.c 52.1 58.7 59.2 70.5 74.1 66.2 67.3 63.2 66.7 72.2 69.3 27 Other loans and advances 63.0 57.1 51.6 50.3 47.5 47.7 47.0 46.6 46.0 45.5 45.0 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 15,851.0 16,936.8 18,054.3' 18,993.0' 19,239.2' 19,399.4' 19,690.6' 20,074.1r 20,325.2r 20,641.0 20,976.3 Financial sectors 29 Total credit market debt owed by financial sectors 5,458.0 6,545.2 7,618.5r 8,439.5r 8,647.8' 8,851.0r 9,121.3' 9,397.2r 9,591.4r 9,803.4 10,007.3 By instrument 30 Federal government-related 2.821.1 3,292.0 3,884.0 4,317.4 4,422.9 4.591.6 4,796.2 4,944.1 5.116.9' 5,238.9 5,345.3 31 Government-sponsored enterprise securities . . . 995.3 1.273.6 1.591.7 1,825.8 1,888.7 1,955.8 2,037.4 2,114.0 2,161.8 2,197.2 2,260.5 32 Mortgage pool securities 1.825.8 2,018.4 2.292.2 2,491.6 2,534.2 2,635.7 2,758.8 2,830.1 2,955.1' 3,041.6 3,084.8 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 ' .0 34 Private 2,636.9 3.253.2 3.734.6' 4,122.0' 4,224.8' 4,259.4' 4.325.2' 4,453.1' 4,474.5' 4,564.5 4,662.0 35 Open market paper 745.7 906.7 1.082.9 1,210.7 1.180.8 1,144.5 1,110.2 1,148.8 1,090.9 1,046.9 1.049.5 36 Corporate bonds 1,568.6 1,878.7 2.085.9' 2,297.2' 2,414.8' 2,478.7' 2,562.9' 2,640.2' 2,730.3' 2,845.8 2,901.2 37 Bank loans n.e.c 77.3 107.5 93.2 93.0 97.3 100.4 100.2 106.8 105.1 113.5 133.2 38 Other loans and advances 198.5 288.7 395.8 438.3 450.9 450.7 467.2 473.2 462.4 470.8 491.2 39 Mortgages 46.8 71.6 76.7 82.9 81.1 85.1 84.6 84.2 85.9 87.6 86.9 By borrowing sector 40 Commercial banks 140.6 188.6 230.0 266.7 273.8 274.7 281.4 296.0 295.8 310.4 331.6 41 Bank holding companies 168.6 193.5 219.3 242.5 266.5 269.0 272.7 266.1 269.0 264.2 271.4 42 Savings institutions 160.3 212.4 260.4 287.7 295.1 294.4 305.6 295.1 280.5 275.3 274.5 43 Credit unions .6 1.1 3.4 3.4 3.2 3.5 3.8 4.9 5.5 6.0 6.3 44 Life insurance companies 1.8 2.5 3.2 2.5 1.9 1.9 2.8 3.1 3.7 4.0 4.2 45 Government-sponsored enterprises 995.3 1.273.6 1,591.7 1.825.8 1.888.7 1,955.8 2,037.4 2.114.0 2,161.8 2,197.2 2,260.5 46 Federally related mortgaee pools 1,825.8 2.018.4 2,292.2 2,491.6 2,534.2 2,635.7 2,758.8 2.830.1 2,955.1' 3.041.6 3.084.8 47 Issuers of asset-backed securities (ABSs) 1,076.6 1,398.0 1,610.3' 1,812.0' 1,884.5' 1.937.3' 2,020.3' 2.131.4' 2,187.3' 2,248.2 2.302.3 48 Brokers and dealers 35.3 42.5 25.3 40.9 35.0 43.9 47.1 42.3 38.4 42.8 46.6 49 Finance companies 568.3 625.5 695.7 776.9 756.2 769.0 771.2 776.7 760.8 784.9 802.9 50 Mortgage companies 16.0 17.7 17.8 17.9 18.1 18.2 18.5 18.6 18.8 19.0 19.2 51 Real estate investment trusts (REITs) 96.1 158.8 165.1 167.8 166.2 168.9 168.3 170.2 172.1 178.4 183.0 52 Funding corporations 372.6 412.6 504.0 503.7 524.3 478.6 433.6 448.4 442.6 431.3 420.1 All sectors 53 Total credit market debt, domestic and foreign . 21,309.1 23,482.0 25,672.8' 27,432.4' 27,886.9' 28,250.4r 28,811.9r 29,471.4r 29,916.6' 30,444.4 30,983.6 54 Open market paper 979.4 1.172.6 1,402.4 1.610.0 1.546.8 1.477.9 1,417.8 1,445.6 1,382.0 1,325.5 1,325.7 55 U.S. government securities 6,625.9 7.044.2 7,564.9 7,702.5 7.831.7 7,842.9 8.116.2 8,323.6 8,547.2' 8,690.2 8,886.1 56 Municipal securities 1,367.5 1.464.3 1,532.5 1,567.8 1.597.5 1,629.8 1,635.3 1,685.4 1,707.5 1,758.2 1,783.8 57 Corporate and foreign bonds 3,607.2 4,170.9 4,622.0' 5.028.3' 5.251.1' 5,416.0' 5,526.2' 5,691.8' 5,839.7' 5.996.7 6,039.4 58 Bank loans n.e.c 1,169.8 1,314.8 1,383.8 1.496.6 1.492.1 1,460.2 1,452.6 1,421.4 1,409.1 1,377.8 1,361.6 59 Other loans and advances 1,086.5 1,253.0 1,400.9' 1.548.2' 1.572.0' 1.602.0' 1,624.4' 1,608.6' 1.597.6' 1,622.0 1,654.4 60 Mortgages 5,201.1 5.715.7 6,320.1 6.886.0' 7.010.3' 7,213.3' 7,409.0' 7.591.8' 7,756.2' 7,973.6 8,212.0 61 Consumer credit 1,271.6 1,346.6 1,446.1 1.593.1 1.585.3 1,608.1 1,630.5 1.703.3 1.677.2' 1,700.3 1,720.6 1. Data in this table appear in the Board's Z.I (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 2001 2002 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999977 11999988 11999999 22000000 Ql Q2 Q3 Q4 Ql Q2' Q3 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 21,309.1 23,482.0 25,672.8' 27,432.4' 27,886.9' 28,250.4' 28,811.9' 29,471.4' 29,916.6' 30,444.4 30,983.6 7 Domestic nonfederal nonfinancial sectors 3,110.2r 3,357.4' 3,671.5' 3,542.8' 3,488.1' 3,426.6' 3,409.2' 3,463.3' 3,476.0' 3,519.6 3,447.7 Household 2,193.5' 2,308.9' 2,613.2' 2.481.5' 2,440.5' 2.370.4' 2,354.6' 2,380.6' 2,401.4' 2,425.1 2,351.3 4 Nonfinancial corporate business 257.5 241.5 226.0 231.0 206.2 203.0 195.0 212.2 202.7 207.8 209.8 5 Nonfarm noncorporate business 54.2 67.5 64.4 63.2 64.0 64.1 64.9 65.4 66.2 67.1 66.5 6 State and local governments 605.0 739.4 767.8 767.0 777.4 789.1 794.6 805.1 805.6 819.7 820.1 7 Federal government 205.4 219.0 258.0 265.3 266.4 268.7 269.6 271.3 272.5 274.7 276.5 8 Rest of the world 2,097.7 2,278.2 2,354.6 2,621.1 2,706.0 2.766.8 2,837.5 2,954.4 3,000.6 3,139.1 3,283.3 9 Financial sectors 15,895.8' 17,627.4' 19,388.8' 21,003.3' 21,426.4' 21,788.2' 22,295.7' 22,782.4' 23,167.5' 23,511.0 23,976.0 10 Monetary authority 431.4 452.5 478.1 511.8 523.9 535.1 534.1 551.7 575.4 590.7 604.2 11 Commercial banking 4,031.9 4,336.1 4,648.3 5,006.3 5,013.8 5,041.5 5,100.6 5,210.5 5.231.3 5,328.3 5,476.1 17 U.S.-chartered banks 3,450.7 3,761.4 4,080.0 4,419.5 4,420.8 4,463.5 4.513.5 4,610.1 4,629.3 4,719.7 4.858.3 N Foreign banking offices in United States 516.1 504.5 487.4 511.3 516.6 501.3 509.3 510.7 507.7 512.6 521.2 14 Bank holding companies 27.4 26.5 32.7 20.5 22.3 21.6 21.3 24.7 27.7 28.1 27.7 IS Banks in U.S.-affiliated areas 37.8 43.8 48.3 55.0 54.1 55.1 56.5 65.0 66.6 67.9 68.8 16 Savings institutions 928.5 964.7 1,032.4 1,088.6 1.100.5 1,116.1 1,118.1 1.131.4 1,134.7 1,130.9 1.153.9 17 Credit unions 305.3 324.2 351.7 379.7 387.0 392.4 408.4 421.2 434.3' 447.7 458.5 18 Bank personal trusts and estates 207.0 194.1 222.0 222.8' 223.8' 225.2' 226.4' 228.6' 231.4' 234.3 235.5 IP Life insurance companies 1,751.1 1,828.0 1,886.0 1,943.9 1,969.6 2,004.8 2,054.8 2.074.8 2,136.9 2,180.1 2,241.0 70 Other insurance companies 515.3 521.1 518.2 509.4 510.0 510.0 511.3 518.4 527.6 536.4 545.3 21 Private pension funds 674.6 651.2 668.2 701.6 706.8 718.0 720.6 721.9 728.7 740.2 749.1 77 State and local government retirement funds 632.5 704.6 751.4 806.0 788.3 807.6 789.0 788.4 806.0 792.4 784.1 Money market mutual funds 721.9 965.9 1,147.8 1,290.9 1,404.2 1,414.3 1,494.9' 1,536.9 1,496.4 1,419.3 1,405.7 74 Mutual funds 901.1 1,028.4 1,076.8 1,097.8 1,113.9 1,160.3 1,188.2 1,223.8 1,276.8 1,291.6 1,335.0 75 Closed-end funds 93.3' 98.5' 106.8' 100.5' 98.7' 97.5' 103.6' 107.3' 112.5' 113.1 116.0 76 Government-sponsored enterprises 938.3 1,252.3 1,543.5 1,807.1 1,877.7 1,956.1 2,026.1 2.114.3 2,163.8 2,199.9 2,245.5 27 Federally related mortgage pools 1,825.8 2,018.4 2,292.2 2,491.6 2,534.2 2,635.7 2,758.8 2,830.1 2,955.1' 3,041.6 3,084.8 78 Asset-backed securities (ABSs) issuers 937.7 1,219.4 1.413.6' 1.585.4' 1,650.9' 1.696.6' 1,773.3' 1,878.7' 1,928.5' 1,983.9 2.032.4 79 Finance companies 568.2 645.5 742.5 850.5 848.0 878.5 859.5 844.8 832.4 845.6 856.9 30 Mortgage companies 32.1 35.3 35.6 35.9 36.2 36.5 36.9 37.2 37.6 38.0 38.3 31 Real estate investment trusts (REITs) 50.6 45.5 42.9 36.6 37.6 37.9 39.8 43.3 49.9 57.9 64.1 39 Brokers and dealers 182.6 189.4 154.7 223.6 317.7 288.4 366.4' 316.0' 299.6 352.7 339.6 33 Funding corporations 166.7 152.3 276.0 313.4' 283.7' 235.7' 184.9' 203.0' 208.6' 186.6 206.3 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 21,309.1 23,482.0 25,672.8' 27,432.4R 27,886.9' 28,250.4' 28,811.9' 29,471.4' 29,916.6' 30,444.4 30,983.6 Other liabilities 35 Official foreign exchange 48.9 60.1 50.1 46.1 42.8 43.4 49.0 46.8 45.7 52.0 53.1 36 Special drawing rights certificates 9.2 9.2 6.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 37 Treasury currency 19.3 19.9 20.9 23.2 22.9 23.2 23.2 23.2 23.2 23.2 23.2 38 Foreign deposits 618.5 642.3 703.6 824.5 881.6 837.6 848.0 908.9 894.1 916.5 926.5 39 Net interbank liabilities 219.4 189.4 202.4 221.2 156.7 158,7 166.5 187.7 157.6 130.9 146.8 40 Checkable deposits and currency 1,286.1 1,333.3 1,484.5 1,413.1 1,404.9 1,448.4 1,485.1 1.601.4 1,567.2 1,640.0 1.698.0 41 Small time and savings deposits 2,474.2' 2,626.5 2,671.6' 2,860.4' 2,962.7' 2,992.4' 3,047.6' 3,127.6' 3,229.6' 3,257.6 3,338.5 4? Large time deposits 713.4 805.3 936.4 1,052.6 1,077.0 1,087.3 1,094.2 1,121.1 1,178.9 1,188.7 1,197.7 43 Money market fund shares 1,042.5 1,329.7 1,578.8 1,812.1 1,994.7 2,014.7 2,115.4' 2,240.7 2,202.6 2,150.3 2,105.9 44 Security repurchase agreements 822.4 913.8 1,083.6 1.196.8 1,187.4 1,206.6 1,253.9' 1,233.6 1,220.4' 1,273.7 1,233.1 45 Mutual fund shares 2,989.4 3.613.1 4,538.5 4,434.6 3,990.4 4,259.5 3,753.1 4,135.5 4,247.0' 3,926.6 3,418.9 46 Security credit 469.1 572.2 676.6 822.7 799.3 781.5 919.9' 825.9 778.0' 746.2 714.7 47 Life insurance reserves 665.0 718.3 783.9 819.1 823.0 840.3 844.0 880.0 904.2 915.2 928.3 48 Pension fund reserves 7,323.4 8,208.4 9,065.3 9,069.0 8,584.0 8,862.6 8,281.0 8,694.0 8.822.2' 8,328.1 7.737.4 49 Trade payables 1,967.4 2,073.8 2,342.4 2,512.6 2,536.4 2,498.4 2,502.4 2,493.4 2,526.0 2,533.2 2,587.8 50 Taxes payable 151.1 170.7 193.9 215.6 223.3 222.5 251.4 229.9 241.3 252.9 240.3 51 Investment in bank personal trusts 942.5 1,001.0 1,130.4 1,095.8' 1,007.9' 1.063.3' 955.4' 1,025.3' 1,035.2' 970.1 888.2 52 Miscellaneous 6,733.1' 7,633.7' 8,500.3' 9,427.9' 9,862.5' 10,140.3' 10,545.9' 10,091.1' 10,104.6' 10,369.1 10,882.0 53 Total liabilities 49,803.8 55,402.6 61,642.2R 65,281.9' 65,446.6' 66,733.3' 66,950.1' 68,339.8' 69,096.5' 69,120.9 69,106.2 Financial assets nut included in liabilities (+) 54 Gold and special drawing rights 21.1 21.6 21.4 21.6 21.4 21.5 22.0 21.8 21.9 22.7 22.8 55 Corporate equities 13,301.7 15,577.3 19,581.2 17,611.9 15,347.5' 16,281.6' 13,673.4' 15,245.5' 15,264.1' 13,363.0 10,960.1 56 Household equity in noncorporate business 4,052.7 4,285.7 4,544.3 4,765.8' 4,807.7' 4,823.5' 4,865.8' 4,824.9' 4,845.0' 4,906.5 4,947.4 Liabilities not identified as assets (-) 57 Treasury currency -6.3 -6.4 -7.1 -8.5 -9.4 -9.5 -9.8 -9.8 -10.4 -10.6 -10.9 58 Foreign deposits 535.0 542.8 585.7 627.4 673.0 631.3 644.9 694.1 685.0 717.7 720.1 59 Net interbank transactions -32.2 -26.5 -28.5 -4.3 1.1 3.8 4.5 11.1 21.8 18.3 16.2 60 Security repurchase agreements 172.9 230.6 266.4 385.0 341.4 376.2 396.6' 346.3 355.6' 390.2 292.4 61 Taxes payable 104.2 121.2 121.9 127.7 111.9 131.7 148.6 100.0 92.3 150.7 113.5 62 Miscellaneous -1,376.7' -1.956.2' -2,436.0' -2,968.9' -2,919.9' -2,862.5' -2,692.6' -3,203.2' -3,178.9' -3.223.2 -3,030.3 Floats not included in assets (-) 63 Federal government checkable deposits -8.1 -3.9 -9.8 -2.3 -2.8 -4.8 -5.9 -14.1 32.4 61.3 72.2 64 Other checkable deposits 26.2 23.1 22.3 24.0 21.1 25.5 19.2 28.6 26.3 31.4 25.8 65 Trade credit 128.1 84.8 91.7 117.7 84.6 63.8 48.7 134.0 87.8 40.3 39.2 66 Totals identified to sectors as assets 67,636. LR 76,277.7R 87,182.4R 89,383.3' 87,322.3' 89,504.4' 86,957.2' 90,345.2' 91,115.7' 89,237.0 86,798.1 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L.I and L.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 • January 2003 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 2001 2002 2001 2002 2001 2002 Q4 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2 Q3' Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 137.2 138.1 139.5 140.7 183.6 184.1 184.5 185.0 74.7 75.0 75.6 76.1 2 Manufacturing 141.9 142.9 144.2 145.4 194.0 194.4 194.9 195.5 73.1 73.5 74.0 74.4 3 Primary processing3 164.5 168.0 172.4 174.8 224.5 225.3 226.2 227.2 73.3 74.6 76.2 76.9 4 Advanced processing4 129.3 129.2 129.0 129.4 177.2 177.4 177.7 177.9 73.0 72.8 72.6 72.8 5 Durable goods 174.1 176.1 178.4 180.6 248.5 249.4 250.4 251.5 70.1 70.6 71.3 71.8 6 Lumber and products 112.7 112.3 112.3 113.4 149.1 149.3 149.6 149.8 75.6 75.2 75.1 75.7 7 Primary metals 109.1 112.1 114.5 115.1 150.4 149.4 147.8 145.8 72.6 75.0 77.5 79.0 8 Iron and steel 104.0 109.3 114.8 116.3 146.2 144.4 141.5 137.9 71.2 75.7 81.2 84.3 9 Nonferrous 115.3 115.6 114.5 114.2 155.8 155.9 155.9 155.7 74.0 74.1 73.5 73.3 10 Industrial machinery and equipment 202.2 205.7 207.8 208.7 299.8 300.4 301.1 301.6 67.5 68.5 69.0 69.2 11 Electrical machinery 485.7 499.3 516.0 520.2 752.5 762.1 774.4 789.1 64.6 65.5 66.6 65.9 12 Motor vehicles and parts 165.1 173.7 181.2 191.1 222.9 224.2 225.4 226.7 74.1 77.5 80.4 84.3 13 Aerospace and miscellaneous transportation equipment 91.2 86.2 82.5 80.7 135.1 135.1 134.8 134.6 67.5 63.8 61.2 60.0 14 Nondurable goods 110.2 110.6 111.0 111.3 142.9 142.9 143.0 143.1 77.1 77.4 77.6 77.8 15 Textile mill products 82.4 84.9 86.5 86.4 115.4 114.4 113.4 112.5 71.5 74.3 76.2 76.8 16 Paper and products 105.8 104.4 106.9 109.3 139.0 139.0 138.8 138.5 76.1 75.1 77.0 78.9 17 Chemicals and products 122.4 122.9 123.3 124.7 158.6 158.9 159.7 160.7 77.2 77.4 77.2 77.6 18 Plastics materials 115.6 119.9 128.3 129.3 153.4 153.8 154.1 154.4 75.4 77.9 83.2 83.8 19 Petroleum products 113.7 116.2 116.0 114.6 122.7 122.9 123.0 123.2 92.7 94.6 94.3 93.0 20 Mining 98.6 96.3 95.5 96.0 112.6 112.9 112.9 112.9 87.6 85.3 84.6 85.0 21 Utilities 116.9 119.3 124.1 126.6 139.9 141.6 143.0 144.2 83.6 84.3 86.8 87.8 22 Electric 121.1 122.1 126.1 129.6 139.8 141.9 143.7 145.3 86.7 86.0 87.8 89.2 Footnotes appear on page A41. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A41 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1—Continued Seasonally adjusted 1973 1975 Previous cycle5 Latest cycle6 2001 2002 SSeerriieess High Low High Low High Low Oct. May June Julyr Aug.' Sept. Oct.e Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 75.0 75.6 76.0 76.3 76.1 75.8 75.2 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 73.3 74.0 74.3 74.6 74.5 74.1 73.5 3 Primary processing3 91.8 67.3 88.6 65.7 88.3 76.7 73.9 76.4 76.7 76.9 77.0 76.8 76.3 4 Advanced processing4 86.5 72.5 86.3 71.0 84.2 76.6 72.9 72.4 72.8 73.1 72.8 72.4 71.7 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 70.1 71.2 71.7 71.8 72.1 71.6 70.6 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 75.7 74.8 75.9 75.7 75.6 75.7 74.9 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 75.5 77.9 78.9 77.0 80.5 79.4 81.1 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 75.4 83.1 82.8 81.1 86.9 84.8 87.7 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 75.5 72.4 74.8 72.6 73.7 73.6 74.2 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 67.7 69.2 69.2 68.7 70.0 68.9 68.0 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 64.6 67.2 66.8 66.1 65.8 65.9 65.4 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 70.7 79.3 82.1 84.8 84.6 83.3 78.8 13 Aerospace and miscellaneous transportation equipment... 78.4 67.6 81.9 66.6 87.3 79.2 69.4 61.0 60.8 60.0 60.3 5599..77 5599..33 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 77.5 77.6 77.9 78.2 77.7 77.5 77.3 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 71.7 76.6 75.9 78.1 76.4 75.9 75.9 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 77.8 78.0 77.2 78.4 78.3 80.0 79.1 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 77.7 77.2 77.6 78.5 77.3 77.1 76.5 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 77.7 85.2 84.2 83.0 83.9 84.4 83.0 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 93.7 94.3 93.6 93.4 93.2 92.4 91.1 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 88.4 84.2 85.1 85.0 85.3 84.8 83.9 71 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 85.7 86.3 87.1 88.8 86.4 88.2 86.6 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 88.0 86.6 88.4 90.4 87.3 89.8 87.4 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

A42 Domestic Nonfinancial Statistics • January 2003 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 2001 2002 „ p pro- 2001 por- avg. tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July1" Aug.r Sept. Oct.P Index(1992= 00) MAJOR MARKETS 1 Total index 100.0 140.1 137.7 137.2 136.7 137.6 138.1 138.6 138.8 139.4 140.3 141.0 140.7 140.4 139.3 2 Products 60.8 129.4 126.8 126.7 126.5 126.7 126.9 127.4 127.0 127.3 128.0 128.5 128.1 127.8 126.7 3 Final products 46.3 132.0 129.2 129.4 129.1 129.3 129.4 129.6 129.2 129.3 130.2 130.8 130.1 129.6 128.3 4 Consumer goods, total 29.0 120.7 119.6 120.0 120.6 120.6 121.2 121.7 121.4 121.4 122.3 123.1 121.8 121.6 120.7 5 Durable consumer goods 5.8 151.3 146.2 152.1 156.2 154.5 155.4 156.8 157.9 159.0 161.1 164.4 162.3 161.2 157.2 6 Automotive products 2.5 149.9 145.4 155.4 160.7 158.3 158.1 159.6 162.4 162.7 169.0 174.7 173.6 172.0 164.5 7 Autos and trucks 1.6 160.5 154.5 170.7 177.8 175.0 173.4 173.7 179.0 178.2 185.8 197.1 195.0 192.7 181.6 8 Autos, consumer 0.9 94.0 86.9 94.8 101.1 101.2 110.5 102.5 104.1 102.3 104.5 107.2 102.0 95.6 94.0 Y Trucks, consumer 0.7 231.4 226.5 251.5 259.5 253.6 240.6 249.7 258.9 259.1 272.4 292.7 293.7 295.7 274.7 10 Auto parts and allied goods 0.9 133.5 131.3 131.3 133.6 132.0 134.0 137.4 136.2 138.3 142.3 138.9 139.6 139.1 137.4 n Other 3.3 151.5 145.9 146.9 149.7 148.7 151.1 152.2 151.3 153.3 150.6 150.8 147.5 147.1 147.3 12 Appliances, televisions, and air conditioners 0.9 283.2 271.9 280.1 297.9 295.1 304.8 308.6 299.9 312.8 295.7 290.9 291.4 292.5 293.0 13 Carpeting and furniture 0.8 119.1 116.4 119.2 118.8 117.2 118.8 118.3 119.4 119.1 116.0 116.5 112.5 113.7 112.7 14 Miscellaneous home goods 1.6 114.2 109.2 107.5 108.0 108.0 108.7 110.0 109.8 110.4 111.5 112.5 109.4 107.9 108.7 15 Nondurable consumer goods 23.2 113.3 113.1 112.3 112.2 112.6 113.1 113.4 112.8 112.6 113.2 113.6 112.4 112.4 112.1 16 Foods and tobacco 10.4 108.8 108.2 108.6 109.0 109.2 109.7 110.4 109.9 109.3 109.7 109.2 108.2 107.9 108.7 17 Clothing 2.4 78.3 74.4 73.2 74.7 75.4 74.9 75.7 74.6 74.5 74.5 75.0 72.4 74.3 72.7 18 Chemical products 4.6 145.0 148.5 148.0 148.5 149.4 147.6 146.7 144.7 144.0 146.4 148.1 145.6 145.7 144.7 19 Paper products 2.9 105.5 103.9 102.1 100.2 98.8 98.1 98.5 96.7 97.7 98.9 99.2 100.1 99.0 97.8 20 Energy 3.0 117.4 116.9 113.4 111.6 113.5 118.3 118.4 120.8 121.6 120.7 122.4 120.7 121.9 120.1 21 Fuels 0.8 114.2 116.1 1 15.2 112.6 117.4 116.5 115.4 117.7 115.6 114.5 114.2 115.5 113.8 111.3 22 Residential utilities 2.1 119.2 117.0 112.0 110.7 111.1 118.9 119.7 122.1 124.4 123.7 126.3 123.1 125.9 124.5 23 Equipment 17.3 152.3 145.4 145.0 142.7 143.3 142.2 141.7 141.3 141.6 142.3 142.4 143.3 141.9 139.7 24 Business equipment 13.2 175.9 166.9 167.2 164.3 165.3 164.0 163.5 162.9 163.2 163.8 163.8 164.7 162.3 159.1 25 Information processing 5.4 279.5 267.9 269.1 265.5 268.2 267.9 269.1 266.6 265.1 265.1 265.0 264.9 263.5 263.8 26 Computer and office equipment 1.1 948.2 913.2 927.8 941.2 969.2 998.7 1,020.7 1,012.6 1,001.1 995.0 1,015.6 1.034.4 1,050.2 1,067.8 27 Industrial 4.0 125.1 119.4 118.3 114.5 116.1 113.5 113.6 113.3 116.5 116.0 115.6 117.0 114.6 113.1 28 Transit 2.5 127.6 119.2 118.6 118.7 116.4 116.8 114.1 113.8 111.9 113.2 114.1 113.6 112.1 104.8 29 Autos and trucks 1.2 145.8 136.2 143.6 151.4 150.5 155.7 154.6 158.6 159.2 165.4 171.3 170.3 168.0 153.1 30 Other 1.3 139.1 129.2 134.2 130.2 133.1 130.5 131.2 132.5 132.1 135.1 134.3 137.8 133.5 131.2 31 Defense and space equipment 3.4 74.0 74.2 74.3 74.7 74.9 74.9 74.9 75.3 75.7 76.1 76.6 77.8 78.4 79.1 32 Oil and gas well drilling 0.6 140.2 127.2 114.4 107.8 107.3 105.3 104.5 102.0 101.4 104.4 104.1 104.6 105.6 103.6 33 Manufactured homes 0.2 93.7 100.2 99.5 97.7 93.1 89.1 81.5 82.4 84.8 84.3 84.4 83.5 84.2 85.0 34 Intermediate products, total 14.5 121.4 119.6 118.9 118.6 118.9 119.4 120.8 120.3 120.9 121.5 121.6 122.0 122.3 121.7 35 Construction supplies 5.4 137.6 134.6 134.0 135.6 136.3 136.8 139.7 138.3 139.6 140.5 138.5 140.3 140.6 139.7 36 Business supplies 9.1 111.9 110.7 109.8 108.6 108.5 109.1 109.6 109.6 109.9 110.2 111.6 111.1 111.4 111.1 37 Materials 39.2 158.0 155.9 154.8 153.6 155.8 157.1 157.4 158.8 160.2 161.3 162.5 162.4 162.2 161.0 38 Durable goods materials 20.7 212.7 207.9 206.5 206.0 209.4 211.6 212.1 214.2 216.2 218.0 218.9 220.0 218.9 217.7 39 Durable consumer parts 4.0 155.8 152.3 155.0 157.5 161.4 162.9 163.4 165.8 166.0 167.5 171.7 171.8 169.1 165.6 40 Equipment parts 7.5 441.8 431.7 427.9 426.7 434.0 439.7 440.8 444.9 452.7 456.9 456.4 461.3 461.8 461.5 41 Other 9.2 125.2 122.5 120.5 119.0 120.5 121.5 121.8 122.7 123.6 124.5 124.2 124.5 124.0 123.8 42 Basic metal materials 3.1 113.7 111.0 106.7 101.9 106.9 107.9 109.0 108.1 109.9 1112 108.8 112.2 110.9 112.4 43 Nondurable goods materials 8.9 104.2 104.7 103.1 101.1 103.3 103.4 104.1 104.8 107.1 107.1 107.6 107.1 107.6 107.0 44 Textile materials 1.1 yo.8 87.2 84.7 84.5 84.9 87.4 90.3 88.8 89.7 87.9 91.6 89.3 88.5 88.0 45 Paper materials 1.8 108.6 112.4 106.9 103.1 106.9 103.3 103.2 105.8 109.1 106.4 109.1 109.3 112.0 110.9 46 Chemical materials 4.0 102.8 103.5 102.2 99.3 102.8 104.1 105.4 105.9 108.6 108.9 108.9 108.1 107.9 107.5 47 Other 2.1 109.8 108.8 110.4 111.2 110.4 110.0 108.9 109.5 110.9 113.2 111.5 112.0 112.5 111.8 48 Energy materials 9.6 103.3 102.6 102.6 101.6 101.6 102.6 102.1 103.0 102.4 103.3 105.3 103.9 104.5 103.0 49 Primary energy 6.2 98.8 98.2 98.8 97.9 97.6 97.7 96.9 97.6 96.5 97.8 98.8 98.1 98.1 96.8 50 Converted fuel materials 3.4 111.7 110.9 109.1 107.9 108.6 111.6 112.0 113.3 113.4 113.8 117.8 115.0 116.7 114.9 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.3 139.8 137.5 136.6 135.8 136.7 137.3 137.8 137.8 138.5 139.2 139.6 139.3 139.1 138.4 52 Total excluding motor vehicles and parts 95.3 139.0 136.8 135.8 134.9 135.8 136.3 136.7 136.7 137.4 137.9 138.3 138.0 137.8 137.2 53 Total excluding computer and office equipment 98.4 134.2 132.0 131.5 130.9 131.7 132.2 132.6 132.8 1.33.4 134.3 135.0 134.6 134.3 133.2 54 Consumer goods excluding autos and trucks . . 27.5 118.5 117.8 117.2 117.4 117.6 118.3 118.8 118.2 118.2 118.7 118.9 117.6 117.6 117.3 55 Consumer goods excluding energy 26.1 121.1 119.9 120.8 121.7 121.5 121.5 122.1 121.4 121.4 122.5 123.2 121.9 121.6 120.7 56 Business equipment excluding autos and trucks 12.0 179.7 170.8 170.1 165.7 167.0 164.7 164.4 163.1 163.3 163.1 162.2 163.4 161.0 159.5 57 Business equipment excluding computer and office equipment 12.0 146.8 139.0 139.1 136.3 136.8 135.2 134.5 134.0 134.4 135.1 134.8 135.4 133.0 130.0 58 Materials excluding energy 29.6 175.7 173.0 171.5 170.3 173.4 174.7 175.3 176.9 179.1 180.3 181.0 181.5 181.0 180.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A43 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value '—Continued Monthly data seasonally adjusted 1992 2001 Group c S o I d C e 2 p po ro r- - 2 a 0 v 0 g 1 . tion Feb. Mar. Apr. May June Julyr Aug/ Sept. Oct. Index(1992=100) MAJOR INDUSTRIES 59 Total index 100.0 140.1 137.7 137.2 136.7 137.6 138.1 138.6 138.8 139.4 140.3 141.0 140.7 140.4 139.3 60 Manufacturing 85.4 144.8 142.1 142.0 141.6 142.6 142.9 143.4 143.4 144.2 145.0 145.6 145.5 144.9 143.9 61 Primary processing 31.0 167.9 165.6 164.4 163.5 166.6 168.0 169.4 170.3 172.9 173.8 174.6 175.0 174.8 173.9 62 Advanced processing 54.4 132.0 129.1 129.5 129.3 129.3 129.0 129.1 128.7 128.7 129.5 129.9 129.6 128.8 127.7 63 Durable goods 44.8 179.3 173.9 174.3 174.1 175.7 176.0 176.6 177.2 178.4 179.7 180.3 181.3 180.2 178.1 64 Lumber and products 24 2.1 113.0 112.8 112.4 113.0 112.9 111.0 112.9 111.6 111.8 113.5 113.3 113.3 113.5 112.3 65 Furniture and fixtures 25 1.4 138.7 133.5 134.8 135.4 133.6 135.0 134.8 134.8 134.7 132.5 133.9 132.5 133.8 130.7 66 Stone, clay, and glass products 32 2.1 130.8 130.3 128.8 126.3 127.7 127.8 127.7 129.6 130.0 129.9 130.6 131.8 132.3 132.6 67 Primary metals 33 3.1 116.9 113.6 110.2 103.6 111.3 111.8 113.1 112.1 115.2 116.2 112.8 117.3 115.2 117.1 68 Iron and steel 331,2 1.8 112.6 110.4 107.1 94.6 107.1 110.6 110.2 110.7 117.5 116.2 112.9 119.9 116.0 118.8 69 Raw steel 331PT 0.1 102.8 99.5 95.1 85.5 100.0 101.3 101.2 101.2 100.9 108.4 108.5 113.2 113.4 113.4 70 Nonferrous 333-6,9 1.4 122.3 117.6 114.1 114.2 116.5 113.5 116.8 114.1 112.9 116.5 113.1 114.7 114.6 115.4 71 Fabricated metal products . . 34 5.0 130.4 127.5 127.2 129.1 128.7 127.7 127.9 128.2 130.0 130.6 131.7 131.3 130.8 129.6 72 Industrial machinery and equipment 35 7.8 213.3 202.8 203.4 200.4 204.5 205.3 207.1 206.8 208.3 208.4 207.2 211.0 207.8 205.3 73 Computer and office equipment 357 1.6 1,088.0 1,049.1 1,067.2 1,087.0 1,118.5 1.155.8 1,185.5 1,177.6 1,165.2 1,158.6 1,179.8 1,199.9 1,218.4 1,239.4 74 Electrical machinery 36 7.1 504.2 484.8 485.1 487.3 494.0 500.8 503.1 507.9 520.1 520.1 518.1 519.3 523.3 522.2 75 Transportation equipment . . 37 9.4 128.5 124.6 127.2 129.1 128.2 128.9 128.2 129.6 128.8 131.8 134.3 134.5 132.8 127.8 76 Motor vehicles and parts . 371 4.7 162.9 157.3 165.9 172.1 171.8 174.5 174.9 179.3 178.8 185.5 191.9 191.9 189.3 179.5 77 Autos and light trucks . 371PT 2.5 154.1 147.4 162.7 169.6 167.1 166.9 166.2 171.1 170.3 177.4 187.9 185.7 183.1 173.4 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.7 96.3 93.8 91.0 88.9 87.4 86.4 84.7 83.3 82.3 82.0 80.8 81.1 80.2 79.7 79 Instruments 38 5.4 115.3 113.6 113.7 112.8 113.8 112.4 112.8 112.2 111.6 111.8 112.6 112.3 111.9 112.3 80 Miscellaneous 39 1.3 117.5 113.6 110.7 114.1 114.6 114.6 116.4 115.8 117.8 119.8 119.6 118.1 117.4 118.4 81 Nondurable goods 40.6 111.4 110.8 110.2 109.7 110.3 110.5 110.9 110.5 111.0 111.4 111.9 111.1 110.9 110.7 82 Foods 20 9.6 112.9 112.2 113.0 114.0 113.5 113.7 114.4 114.0 113.2 113.6 113.1 112.6 112.5 113.4 83 Tobacco products 21 1.6 93.8 92.8 92.7 90.8 93.1 95.0 95.3 94.4 94.5 95.1 94.5 92.2 90.7 91.2 84 Textile mill products 22 1.8 86.7 83.0 81.9 82.5 82.5 85.1 87.2 86.7 86.8 85.8 88.1 85.9 85.2 84.9 85 Apparel products 23 2.2 93.1 87.8 87.3 88.8 89.4 88.4 89.5 88.3 88.7 88.7 89.3 87.0 87.0 85.9 86 Paper and products 26 3.5 108.1 108.1 106.2 103.1 105.1 103.5 104.5 105.3 108.3 107.1 108.7 108.4 110.7 109.5 87 Printing and publishing .... 27 6.8 101.6 99.8 98.9 97.3 96.6 96.0 95.4 94.9 95.3 96.0 96.5 97.1 96.2 96.0 88 Chemicals and products .... 28 10.0 121.1 123.2 122.4 121.4 123.0 122.9 122.8 122.2 123.3 124.2 125.8 124.2 124.1 123.4 89 Petroleum products 29 1.4 114.3 114.9 114.0 112.2 114.8 117.2 116.7 116.9 116.0 115.2 115.1 114.8 113.9 112.4 90 Rubber and plastics 30 3.5 136.8 134.4 133.4 134.8 134.7 136.6 139.1 139.2 140.2 142.1 141.7 141.0 140.1 139.2 91 Leather and products 31 0.3 63.1 60.0 59.2 58.4 60.3 60.1 60.0 59.5 59.2 59.5 61.4 59.2 62.7 64.1 92 Mining 6.8 101.3 99.5 99.0 97.4 97.0 96.6 95.4 95.3 95.1 96.0 95.9 96.3 95.7 94.8 93 Metal 10 0.4 88.4 85.6 80.0 80.1 75.2 78.2 80.0 75.3 77.3 79.0 76.8 74.7 77.1 77.3 94 Coal 12 1.0 111.7 106.5 106.6 105.8 104.5 107.0 99.0 101,8 101.7 103.3 101.6 103.1 108.5 109.0 95 Oil and gas extraction 13 4.8 96.1 94.8 94.5 92.6 92.0 91.2 90.6 90.3 89.7 90.3 90.8 91.1 89.0 87.8 96 Stone and earth minerals 14 0.6 132.6 129.6 129.5 129.8 133.7 132.5 132.2 132.5 134.7 136.2 135.4 135.8 136.4 135.0 97 Utilities 7.8 119.8 119.4 116.2 115.2 115.7 120.3 121.8 123.9 123.3 124.9 127.8 124.6 127.6 125.6 98 Electric 491,3PT 6.2 123.1 122.3 121.8 119.3 119.8 121.9 124.6 126.6 124.4 127.5 130.9 126.9 131.0 127.9 99 Gas 492,3PT 1.6 109.1 108.0 96.2 100.5 101.0 113.7 111.4 113.9 119.1 114.9 115.6 115.3 114.2 116.4 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.7 143.9 141.3 140.6 139.7 140.8 140.9 141.5 141.2 142.1 142.5 142.7 142.6 142.1 141.7 101 Manufacturing excluding computers and office equipment 83.8 138.0 135.4 135.3 134.8 135.8 135.9 136.4 136.4 137.2 138.0 138.5 138.4 137.8 136.8 102 Computers, communications equipment, and semiconductors 5.6 1,048.5 1,002.4 1,002.5 1,006.0 1,032.2 1,065.5 1,077.4 1,088.0 1,107.5 1,117.7 1,119.0 1,128.1 1,143.5 1,149.7 103 Manufacturing excluding computers and semiconductors 81.3 121.2 119.1 118.9 118.4 119.1 119.0 119.3 119.2 119.8 120.5 120.9 120.7 120.1 119.1 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.8 118.2 116.3 116.1 115.7 116.4 116.4 116.7 116.6 117.2 117.8 118.3 118.2 117.6 116.6 Gross value (billions of 1996 dollars, annual rates) MAJOR MARKETS 105 Products, total 100.0 2,720.1 2,669.6 2,679.2 2,683.2 2,686.4 2,694.3 2,707.4 2,704.2 2,710.7 2,731.7 2,744.8 2,739.1 2,728.6 2,695.8 106 Final 77.2 2,101.5 2,056.7 2,070.6 2,075.1 2,076.9 2,080.4 2,084.4 2,085.6 2,088.7 2,106.2 2,120.5 2,112.5 2,100.1 2.070.4 107 Consumer goods 51.9 1,303.7 1,291.1 1,301.9 1,313.7 1,312.6 1,318.7 1,324.4 1,325.9 1.326.5 1,337.6 1,349.1 1,337.4 1,333.6 1.319.5 108 Equipment 25.3 797.4 761.0 763.5 753.5 757.1 753.3 750.5 750.1 752.9 759.2 761.2 767.0 757.3 740.2 109 Intermediate 22.8 618.9 612.9 608.8 608.3 609.7 614.0 623.0 618.6 622.0 625.6 624.4 626.7 628.5 625.3 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

A44 International Statistics • January 2003 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 2001 2002 IItteemm ccrreeddiittss oorr ddeebbiittss 11999999 22000000 22000011 Q2 Q3 Q4 Qi Q2 1 Balance on current account -292,856 -410,341 -393,371 -99,234 -91,331 -95,086 -112.454 -129,959 2 Balance on goods and services -262,237 -378,681 -358,290 -93,324 -79,778 -88,028 -95,492 -110,613 3 Exports 957,146 1,064,239 998,022 256,766 242,325 232,930 233,252 243,752 4 Imports -1,219,383 -1,442,920 -1,356,312 -350,090 -322,103 -320,958 -328,744 -354,365 5 Income, net 18,138 21,782 14,382 6,006 807 6,521 -946 -6,286 6 Investment, net 23,877 27.651 20,539 7,526 2,345 8,102 682 -4,628 7 Direct 75,009 88,862 102.595 27,832 23,908 28,602 22,069 17,671 8 Portfolio -51,132 -61,211 -82,056 -20,306 -21,563 -20,500 -21,387 -22,299 9 Compensation of employees -5,739 -5,869 -6,157 -1,520 -1,538 -1,581 -1,628 -1,658 10 Unilateral current transfers, net ^18,757 -53,442 -49,463 -11,916 -12,360 -13,579 -16,016 -13,060 11 Change in U.S. government assets other than official reserve assets, net (increase, -) 2,750 -941 -486 -783 77 143 133 12 12 Change in U.S. official reserve assets (increase, -) 8,747 -290 -4,911 -1,343 -3,559 -199 390 -1.843 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) 10 -722 -630 -156 -145 -140 -109 -107 15 Reserve position in International Monetary Fund 5,484 2,308 -3,600 -1,015 -3,242 83 652 -1,607 16 Foreign currencies 3,253 -1,876 -681 -172 -172 -142 -153 -129 17 Change in U.S. private assets abroad (increase, -) -489,066 -605,258 -365,565 -77,910 28,460 -100,032 -26,441 -139,002 18 Bank-reported claims2 -76,263 -148,657 -128.705 -685 69,576 -83,682 727 -72,676 19 Nonbank-reported claims -95,466 -150.805 -14,358 9,670 -9,479 37,210 65 -26,976 20 U.S. purchase of foreign securities, net -128,436 -127,502 -94,662 -51,764 10,087 -26,090 2,047 -9,987 21 U.S. direct investments abroad, net -188,901 -178,294 -127,840 -35,131 ^11,724 -27,470 -29,280 -29,363 22 Change in foreign official assets in United States (increase, +) 43,666 37.640 5,224 -20,831 16,882 5,086 7.641 47,062 23 U.S. Treasury securities 12,177 -10,233 10,745 -20,798 15,810 16,760 -582 15,193 24 Other U.S. government obligations 20,350 40,909 20,920 9,932 -216 7,630 7,296 6,548 25 Other U.S. government liabilities2 -2,740 -1,909 -1,882 -791 89 -504 -790 -20 26 Other U.S. liabilities reported by U.S. banks2 12,964 5,746 -30,278 -10,202 -782 -20,507 991 24,415 27 Other foreign official assets3 915 3,127 5,719 1,028 1,981 1,707 726 926 28 Change in foreign private assets in United States (increase, +) 698,813 978,346 747,582 202,441 1,007 245,711 105,855 174,151 29 U.S. bank-reported liabilities4 54,232 116,971 110,667 55,003 -45,567 85,598 -11,051 34,889 .30 U.S. nonbank-reported liabilities 78,383 174,251 82,353 -5,307 -25,154 1,170 32,345 25,956 31 Foreign private purchases of U.S. Treasury securities, net -44,497 -76,965 -7,670 -14,685 -15,470 27,229 -7,282 1,386 32 U.S. currency flows 22,407 1,129 23,783 2,772 8,203 10,497 4,525 7,183 33 Foreign purchases of other U.S. securities, net 298,834 455,213 407,653 113,556 64,787 99,320 71,095 103,771 34 Foreign direct investments in United States, net 289,454 307,747 130,796 51,102 14,208 21,897 16,223 966 35 Capital account transactions, net5 -3,340 837 826 207 206 205 208 200 36 Discrepancy 31,286 7 10,701 -2,547 48,258 -55,828 24,668 49,379 37 Due to seasonal adjustment 875 -10.286 1,721 10,019 827 38 Before seasonal adjustment 31,286 7 10,701 -3,422 58,544 -57,549 14,649 48,552 MEMO Changes in official assets 39 U.S. official reserve assets (increase, -) 8,747 -290 -4,911 -1,343 -3,559 -199 390 -1,843 40 Foreign official assets in United States, excluding line 25 (increase, +) 46,406 39,549 7,106 -20,040 16,793 5,590 8,431 47,082 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 1,621 12,000 -1,725 -1,699 -4,081 3,382 -8,532 993 1. Seasonal factors are not calculated for lines 11-16, 18—20, 22-35, and 38—41. 5. Consists of capital transfers (such as those of accompanying migrants entering or 2. Associated primarily with military sales contracts and other transactions arranged with leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced or through foreign official agencies. nonfinancial assets. 3. Consists of investments in U.S. corporate stocks and in debt securities of private SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current corporations and state and local governments. Business. 4. Reporting banks included all types of depository institutions as well as some brokers and dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A45 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 2002 AAsssseett 11999999 22000000 22000011 Apr. May June July Aug. Sept. Oct. NOV.P 1 Total 71,516 67,647 68,654 67,844 69,579 74,696 74,751 75,307 75,860 75,499 75,689 2 Gold stock' 11,048 11,046 11,045 11,044 11,044 11,044 11,042 11,042 11,042 11,042 11,042 3 Special drawing rights2 3 10,336 10,539 10,774 10,988 11,297 11,645 11,575 11,752 11,710 11,700 11,855 4 Reserve position in International Monetary Fund2 17,950 14,824 17,854 16,184 16,498 19,841 19,863 20,043 20,857 20,586 20,480 5 Foreign currencies4 32,182 31,238 28,981 29,628 30,740 32,166 32,271 32,470 32,251 32,171 32,312 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 2002 AAsssseett 11999999 22000000 22000011 Apr. May June July Aug. Sept. Oct. NOV.P 1 Deposits 71 215 61 Ill 127 90 164 86 150 89 77,671 Held in custody 2 U.S. Treasury securities2 632,482 594,094 592,630 589,531 605,501 619,226 635,036 6 38,003 644,381 647,165 669,092 3 Earmarked gold3 9,933 9,451 9,099 9,091 9,084 9,077 9,071 9,064 9,057 9,050 9,045 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

A46 International Statistics • January 2003 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2000 2000 2001 2002 IItteemm 11999999 Mar.6 Mar.6 Dec. Dec. June July Aug. Sept.? 1 Total1 806,318 829,290 958,725 975,304 987,572 1,043,292 1,048,087 1,048,440 1,051,612 By type 2 Liabilities reported by banks in the United States2 138,847 136,577 136,577 144,593 123,429 148,908 143,142 137,236 144,084 3 U.S. Treasury bills and certificates3 156,177 164,781 164,781 153,010 161,719 176,178 188,486 189,301 185,688 U.S. Treasury bonds and notes 4 Marketable 422,266 430,243 465,111 450,832 454,306 455,003 449,735 450,370 446,859 5 Nonmarketable4 6,111 5,734 5,734 5,348 3,411 3,000 3,020 3,040 3,058 6 U.S. securities other than U.S. Treasury securities5 82,917 91,955 186,522 221,521 244,707 260,203 263,704 268,493 271,923 By area 7 244,805 251,815 238,548 240,325 243,452 253,985 256,539 255,244 260,393 8 Canada 12,503 13,683 15,016 13,727 13,440 11,095 10,682 10,886 10,213 9 Latin America and Caribbean 73,518 77,195 70,884 70,442 71,103 64,378 62,709 61,887 62,094 10 Asia 463,703 474,269 612,116 626,017 635,180 687,645 692,309 693,332 692,806 11 Africa 7,523 7,979 13,504 14,690 15,167 15,102 15,233 15,257 14,514 12 Other countries 4,266 4,349 8,655 10,101 9,228 11,085 10,613 11,832 11,590 1. Includes the Bank for International Settlements. 6. Data in the two columns shown for this date reflect different benchmark bases for 2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, foreigners' holdings of selected U.S. long-term securities. Figures in the first column are negotiable time certificates of deposit, and borrowings under repurchase agreements. comparable to those for earlier dates; figures in the second column are based in part on a 3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official benchmark survey as of end-March 2000 and are comparable to those shown for following institutions of foreign countries. dates. 4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of SOURCE. Based on U.S. Department of the Treasury data and on data reported to the zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning Treasury by banks (including Federal Reserve Banks) and securities dealers in the United March 1990, 30-year maturity issue; Venezuela, beginning December 1990, 30-year maturity States, and in periodic benchmark surveys of foreign portfolio investment in the United issue; Argentina, beginning April 1993, 30-year maturity issue. States. 5. Debt securities of U.S. government corporations and federally sponsored agencies, and U.S. corporate stocks and bonds. 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 2001 2002 IItteemm 11999988 11999999 22000000 Sept. Dec. Mar. June 1 Banks' liabilities 101,125 88,537 77,779 92,557 89,627 78,238 93,228 2 Banks' claims 78,162 67,365 56,912 69,116 75,872 80,095 93,274 3 Deposits 45,985 34,426 23,315 36,364 45,382 50,313 56,045 4 Other claims 32,177 32,939 33,597 32,752 30,490 29,782 37,229 5 Claims of banks' domestic customers2 20,718 20,826 24,411 20,885 17,631 16,454 16,005 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A47 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 IItteemm 11999999 22000000 22000011 Mar. Apr. May June July Aug. Sept.P BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,408,740 1,511,410 1,655,381 1,660,955 1,690,356 1,714,564 1,731,188 l,708,496r 1,764,944' 1,750,090 2 Banks' own liabilities 971,536 1,077,636 1,180,417 1,168,062 1,208,236 1,218,557 1,198,097 l,178,301r 1,224,641' 1,215,962 3 Demand deposits 42,884 33,365 33,603 36,471 31,392 32,060 34,600 32,558 31,428 32,026 4 Time deposits2 163,620 187,883 155,466 141,730 139,284 136,391 130,408 123,892 124,995' 119,823 5 Other3 155,853 171,401 199,727 209,517 224,885 235,758 237,427 257,097r 261,964' 277,600 6 Own foreign offices4 609,179 684,987 791,621 780,344 812,675 814,348 795,662 764,754 806,254 786,513 7 Banks' custodial liabilities5 437,204 433,774 474,964 492,893 482,120 496,007 533,091 530,195' 540,303' 534,128 8 U.S. Treasury bills and certificates6 185,676 177,846 188,028 189,640 183,012 191,266 208,279 222,361 225,605 222,218 9 Short-term agency securities7 n.a. n.a. 65,534 68,670 69,525 75,157 83,613 67,985 68,968 71,177 10 Other negotiable and readily transferable instruments8 132,617 145,840 91,147 93,771 95,378 94,061 96,154 102,518' 105,331' 104,735 11 Other 118,911 110,088 130,255 140,812 134,205 135,523 145,045 137,331' 140,399' 135,998 12 Nonmonetary international and regional organizations9 15,276 12,542 10,807 12,127 14,441 12,129 11,568 11,495 10,540 11,596 13 Banks' own liabilities 14,357 12,140 10,169 10,935 13,427 11,756 11,138 10,993 9,986 10,808 14 Demand deposits 98 41 35 22 19 14 32 15 34 52 15 Time deposits2 10,349 6,246 3,756 7,024 6,194 6,730 6,401 7,394 6,294 5,502 16 Other3 3,910 5,853 6,378 3,889 7,214 5,012 4,705 3,584 3,658 5,254 17 Banks' custodial liabilities5 919 402 638 1,192 1,014 373 430 502 554 788 18 U.S. Treasury bills and certificates6 680 252 577 1,105 970 328 407 481 532 764 19 Short-term agency securities7 n.a. n.a. 40 21 21 18 0 0 0 0 20 Other negotiable and readily transferable instruments8 233 149 21 21 21 27 23 21 22 18 21 Other 6 1 0 45 2 0 0 0 0 6 22 Official institutions10 295,024 297,603 285,148 285,689 288,927 301,552 325,086 331,628 326,537' 329,772 23 Banks' own liabilities 97,615 96,989 83,828 79,553 83,948 86,402 92,972 93,555 86,999' 96,271 24 Demand deposits 3,341 3,952 2,988 2,651 1,827 2,002 1,707 2,146 1,946 1,900 25 Time deposits2 28,942 35,573 19,467 14,197 15,331 15,514 14,551 13,458 14,388' 13,258 26 Other3 65,332 57,464 61,373 62,705 66,790 68,886 76,714 77,951 70,665 81,113 27 Banks' custodial liabilities5 197,409 200,614 201,320 206,136 204,979 215,150 232,114 238,073 239,538 233,501 28 U.S. Treasury bills and certificates6 156,177 153,010 161,719 161,312 155,770 162,516 176,178 188,486 189,301 185,688 29 Short-term agency securities7 n.a. n.a. 36,351 40,826 45,910 49,374 51,634 45,257 45,208 44,161 30 Other negotiable and readily transferable instruments8 41,182 47,366 2,180 2,785 2,702 2,455 3,280 3,496 3,834 2,708 31 Other 50 238 1,070 1,213 597 805 1,022 834 1,195 944 32 Banks" 900,379 972,932 1,071,951 1,082,790 1,103,022 1,113,832 1,102,180 1,054,340' 1,097,956' 1,082,524 33 Banks' own liabilities 728,492 821,306 913,813 907,999 936,200 940,930 913,776 875,065' 914,010 901,120 34 Unaffiliated foreign banks 119,313 136,319 122,192 127,655 123,525 126,582 118,114 110,311' 107,756 114,607 35 Demand deposits 17,583 15,522 13,091 16,361 12,185 12,875 14,620 12,790 11,804 11,391 36 Time deposits2 48,140 66,904 53,105 45,304 43,727 41,364 37,094 31,780 33,899 30,886 37 Other3 53,590 53,893 55,996 65,990 67,613 72,343 66,400 65,741' 62,053 72,330 38 Own foreign offices4 609,179 684,987 791,621 780,344 812,675 814,348 795,662 764,754 806,254 786,513 39 Banks' custodial liabilities5 171,887 151,626 158,138 174,791 166,822 172,902 188,404 179,275' 183,946' 181,404 40 U.S. Treasury bills and certificates6 16,796 16,023 13,477 11,374 13,016 14,442 16,110 17,497 17,737 17,095 41 Short-term agency securities7 n.a. n.a. 7,831 7,399 3,456 6,924 12,439 2,876 2,975 6,819 42 Other negotiable and readily transferable instruments8 45,695 36,036 33,102 36,832 37,267 37,377 36,557 43,466' 45,169' 43,688 43 Other 109,396 99,567 103,728 119,186 113,083 114,159 123,298 115,436' 118,065' 113,802 44 Other foreigners 198,061 228,333 287,475 280,349 283,966 287,051 292,354 311,033' 329,911' 326,198 45 Banks' own liabilities 131,072 147,201 172,607 169,575 174,661 179,469 180,211 198,688' 213,646' 207,763 46 Demand deposits 21,862 13,850 17,489 17,437 17,361 17,169 18,241 17,607 17,644 18,683 47 Time deposits2 76,189 79,160 79,138 75,205 74,032 72,783 72,362 71,260 70,414 70,177 48 Other3 33,021 54,191 75,980 76,933 83,268 89,517 89,608 109,821' 125,588' 118,903 49 Banks' custodial liabilities5 66,989 81,132 114,868 110,774 109,305 107,582 112,143 112,345 116,265 118,435 50 U.S. Treasury bills and certificates6 12,023 8,561 12,255 15,849 13,256 13,980 15,584 15,897 18,035 18,671 51 Short-term agency securities7 n.a. n.a. 21,312 20,424 20,138 18,841 19,540 19,852 20,785 20,197 52 Other negotiable and readily transferable instruments8 45,507 62,289 55,844 54,133 55,388 54,202 56,294 55,535 56,306 58,321 53 Other 9,459 10,282 25,457 20,368 20,523 20,559 20,725 21,061 21,139 21,246 MEMO 54 Negotiable time certificates of deposits in custody for foreigners 30,345 34,217 20,440 21,498 24,061 22,587 27,490 28,027' 28,215' 28,267 55 Repurchase agreements7 n.a. n.a. 150,806 128,168 141,443 154,803 159,627 180,775 192,299' 205,171 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

A48 International Statistics • January 2003 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States '—Continued Payable in U.S. dollars Millions of dollars, end of period 2002 IItteemm 11999999 22000000 22000011 Mar. Apr. May June July Aug. Sept.? AREA OR COUNTRY 56 Total, all foreigners 1,408,740 1,511,410 1,655,381 1,660,955 1,690,356 1,714,564 1,731,188 l,708,496r l,764,944r 1,750,090 57 Foreign countries 1,393,464 1,498,867 1,644,574 1,648,828 1,675,916 1,702,435 1,719,620 l,697,462r l,754,805r 1,738,493 58 Europe 441,810 446.788 521,331 520,279 541,083 539,824 529,742 525,065 547,362' 569,557 59 Austria 2,789 2.692 2,922 3,144 3,363 3,096 3,563 2,862 3,537 3,081 60 Belgium'2 44,692 33,399 6,557 7,921 6,607 6,723 6,066 6,462 6,270' 8,389 61 Denmark 2,196 3,000 3,626 2,852 2,801 3,455 3,416 3.507 4,090 3,141 62 Finland 1,658 1,411 1,446 1,682 1,239 1,198 1,197 3,503 1,498 1,259 63 France 49,790 37,833 49,056 35,160 36,396 36,174 35,390 39,809 35,447 37,915 64 Germany 24,753 35,519 22,375 25,664 25,584 26,643 25,188 27,754 27,046 31,197 65 Greece 3,748 2,011 2,307 2,560 2,285 2,700 3,570 2,815 2,677 2,612 66 Italy 6,775 5,072 6,354 5,356 4,948 4,620 4,694 3,914 3,440 3,493 67 Luxembourg12 n.a. n.a. 16,894 14,005 13,967 14,893 15,469 15,237 15,682' 16,156 68 Netherlands 8,143 7,047 12,411 13,729 11,030 12,045 10,439 9,568 11,522 11,004 69 Norway 1,327 2,305 3,727 7,703 6,470 7,681 11,164 14,540 10,047 17,747 M Portugal 2,228 2,403 4,033 5,416 5,051 4,905 4,616 3,496 3,055 3,695 /I Russia 5,475 19,018 20,800 21,423 22,113 24,211 25,060 24,189 24,196' 25,252 72 Spain 10,426 7,787 8,811 9,406 10,737 9,764 11,032 10,394 12,423 12,596 73 Sweden 4,652 6,497 3,375 3,412 2,495 5,677 4,176 4,815 5,709 4,137 74 Switzerland 63,485 74,635 66,403 107,645 129,007 114,220 99,588 85,247 101,660 105,283 75 Turkey 7,842 7,548 7,474 11,515 11,671 11,216 9,908 10,701 12,393 12,786 76 United Kingdom 172,687 167,757 204,396 162,629 164,217 172,034 175,785 175,246 183,129' 182,595 77 Channel Islands and Isle of Man'3 n.a. n.a. 36,059 38,013 38,070 38,602 38,735 39,286 38,069 38,846 78 Yugoslavia'4 286 276 309 296 265 273 267 279 276 280 79 Other Europe and other former U.S.S.R.15 28,858 30,578 41,996 40,748 42,767 39,694 40,419 41,441 45,196 48,093 80 Canada 34,214 30,982 27,247 28,251 26,228 24,434 24,075 26,36 lr 24,607' 24,832 81 Latin America 117,495 120,041 118,016 112,933 111,661 110,009 105,982 105,697r 106,416' 104,104 82 Argentina 18,633 19,451 10,704 11,622 11,795 11,653 11,356 11,297 11,432 11,179 83 Brazil 12,865 10,852 14,169 14,628 14,076 12,892 12,968 12,537 12,051 11,583 84 Chile 7,008 5,892 4,939 5,299 6,326 6,643 6,121 6,394r 5,798 5,494 85 Colombia 5,669 4,542 4,695 4,159 4,226 4,273 4,010 3,872 3,718 4,509 86 Ecuador 1,956 2.112 2,390 2,269 2,342 2,294 2,259 2,324 2,266 2,374 87 Guatemala 1,626 1.601 1,882 1,812 1,782 1,335 1,319 1,323 1,384 1,535 88 Mexico 30,717 32,166 39,870 35,700 34,879 35,250 32,440 33,30 lr 34,916' 32,486 89 Panama 4,415 4,240 3,610 3,350 3,336 3,273 3,894 3,143 3,154 3,225 90 Peru 1.142 1,427 1,359 1,548 1,225 1,270 1,417 1,502 1,353 1,369 91 Uruguay 2,386 3,003 3,164 2,913 2,648 2,410 2,373 1,885 2,614 2,613 92 Venezuela 20,192 24,730 24,974 22,937 22,380 22,333 21,738 21,771 21,547 21,355 93 Other Latin America'6 10,886 10,025 6,260 6,696 6,646 6,383 6,087 6,348 6,183 6,382 94 Caribbean 461,200 573,337 665,866 663,045 673,108 698,131 704,615 695,375r 733,923' 699,584 95 Bahamas 135,811 189,298 179,208 171,415 164,499 172,604 179,725 160,784 172,812 165,955 96 Bermuda 7,874 9,636 10,539 10,238 11,096 13,419 15,646 18,372 21,962 21,895 97 British West Indies11 312,278 367,197 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 98 Cayman Islands'7 n.a. n.a. 458,268 464,461 478,218 493,272 488,069 493,720r 510,929' 493,619 99 Cuba 75 90 88 89 90 93 96 92 99 92 100 Jamaica 520 794 1.182 1,115 1,047 996 924 931 948 932 101 Netherlands Antilles 4,047 5,428 3,264 3,800 5,745 3,312 3,757 3,950 10,548 4,391 102 Trinidad and Tobago 595 894 1,269 1,406 1,791 1,634 1,593 1,691 1,803 1,562 103 Other Caribbean'6 n.a. n.a. 12,048 10,521 10,622 12,801 14,805 15,835 14,822 11,138 104 Asia 319,489 305,554 294,496 303,928 306,459 312,668 333366,,448888 326,469r 332222,,778877'' 332211,,994477 China 105 Mainland 12,325 16,531 10,498 16,723 22,336 22,410 20,779 18,106r 18,808 14,621 106 Taiwan 13,603 17,352 17,633 20,352 24,371 21,733 23,480 19,068 20,103 21,726 107 Hong Kong 27,701 26,462 26,494 22,307 24,613 27,275 29,018 30,713 26,971 27,604 108 India 7,367 4,530 3,708 4,478 4,045 4,980 7,061 7,370' 7,240' 7,488 109 Indonesia 6,567 8,514 12,383 11,220 11,875 12,623 13,871 13,589 13,805 13,098 110 Israel 7,488 8,053 7,870 9,600 9,541 8,965 8,954 9,757 7,952 11,619 111 Japan 159,075 150,415 155,314 166,222 157,689 161,589 179,654 176,445 174,319 170,143 112 Korea (South) 12,988 7,955 9,019 5.568 5,972 6,592 6,826 7,038 6,845 6,562 113 Philippines 3,268 2,316 1,772 1,530 1,671 1,544 1,754 2,080 1,572 2,064 114 Thailand 6,050 3,117 4,743 5,432 4,940 5,060 5,966 4,591 5,113 5,044 115 Middle Eastern oil-exporting countries'8 21,314 23,763 20.035 16,693 15,453 18,128 16,582 15,467 16,668 17,228 116 Other 41,743 36,546 25,027 23,803 23,953 21,769 22,543 22,245r 23,391 24,750 117 Africa 9,468 10,824 11,365 11,762 11,645 11,664 11,830 12,103 12,128 11,145 118 Egypt 2,022 2,621 2,778 3,857 3,606 3,605 3,672 3,411 3,179 2,538 119 Morocco 179 139 274 127 234 230 307 265 307 329 120 South Africa 1,495 1,010 839 800 636 683 685 724 777 777 121 Congo (formerly Zaire) 14 4 4 1 6 7 n.a. 1 n.a. 86 122 Oil-exporting countries'1' 2,914 4,052 4,377 3,911 3,828 3,561 3,522 3,757 3,940 3,670 123 Other 2,844 2,998 3,093 3,066 3,335 3,578 3,644 3,945 3,925 3,745 124 Other countries 9,788 11,341 6,253 8,630 5,732 5,705 6,888 6,392 7,582' 7,324 125 Australia 8,377 10,070 5,599 7,632 4,801 4,706 6,031 5,422 6,523' 5,931 126 New Zealand20 n.a. n.a. 242 443 533 510 494 613 644 869 127 All other 1,411 1,271 412 555 398 489 363 357 415 524 128 Nonmonetary international and regional organizations 15,276 12,543 10,807 12,127 14,441 12,129 11,568 11,495 10,542 11,597 129 International2' 12,876 11,270 9,308 9,874 12,262 10,851 10,490 10,097 9,422 9,367 130 Latin American regional22 1,150 740 480 731 954 644 342 386 402 394 131 Other regional23 1,250 533 935 1,441 1,158 550 645 894 643 1,766 12. Before January 2001, data for Belgium-Luxembourg were combined. 18. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 13. Before January 2001, these data were included in data reported for the United Emirates (Trucial States). Kingdom. 19. Comprises Algeria, Gabon, Libya, and Nigeria. 14. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 20. Before January 2001, these data were included in "All other." 15. Includes the Bank for International Settlements and the European Central Bank. Since 21. Principally the International Bank for Reconstruction and Development. Excludes December 1992, has included all parts of the former U.S.S.R. (except Russia), and Bosnia, "holdings of dollars" of the International Monetary Fund. Croatia, and Slovenia. 22. Principally the Inter-American Development Bank. 16. Before January 2001, data for "Other Latin America" and "Other Caribbean" were 23. Asian, African, Middle Eastern, and European regional organizations, except the Bank combined in "Other Latin America and Caribbean." for International Settlements, which is included in "Other Europe." 17. Beginning January 2001, data for the Cayman Islands replaced data for the British West Indies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A49 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 2002 AArreeaa oorr ccoouunnttrryy 11999999 22000000 22000011 Mar. Apr. May June July Aug. Sept.P 1 Total, all foreigners 793,139 904,642 1,055,169 1,062,040 1,103,935 1,089,474 1,110,469 l,048,408r 1,086,297' 1,066,847 2 Foreign countries 788,576 899,956 1,050,223 1,056,527 1,099,790 1,084,700 1,106,223 1,043,772' 1,082,050' 1,064,205 3 Europe 311,686 378,115 461,276 490,587 527,756 511,409 504,174 464,552 483,076 472,534 4 Austria 2,643 2,926 5,006 4,199 3,431 3,558 3,963 4,046 4,297' 4,336 Belgium2 10,193 5,399 6,366 4,849 4,387 4,019 5,197 7,126 5,140' 4,689 6 Denmark 1,669 3,272 1,105 1,545 1,122 1,062 1,248 856 1,546 1,483 7 Finland 2,020 7,382 10,350 14,469 13,092 14,279 16,517 13,718 16,230 15,812 8 France 29,142 40,035 60,670 55,184 58,004 58,207 58,766 59,104 51,798 51,281 9 Germany 29,205 36,834 29,902 33,395 34,281 29,033 28,891 26,156 26.072 23,544 10 Greece 806 646 330 357 364 354 330 393 438 408 11 Italy 8,496 7,629 4,205 5,101 5,036 4,050 4,378 5,568 4,442 4,942 12 Luxembourg2 n.a. n.a. 1,267 3,414 3,453 3,552 3,547 3,526 3,067 2,847 13 Netherlands 11,810 17,043 15,927 15,498 16,892 16,294 16,440 13,679 18,232 17,740 14 Norway 1,000 5,012 6,249 7,026 6,572 8,301 8,526 9,433 10,578 11,036 15 Portugal 1,571 1,382 1,603 1,795 2,083 1,594 1,780 1,995 1,823 2,006 16 Russia 713 517 594 1,659 951 826 1,145 867 842 801 17 Spain 3,796 2,603 3,260 4,847 3,484 3,130 3.081 3,336 3,589 4,675 18 Sweden 3,264 9,226 12,544 12,008 11,589 13,348 13,814 14,932 14,618 14,293 19 Switzerland 79,158 82,085 87,333 115,388 150,258 137,532 119.244 87,969 106,281 103,964 70 Turkey 2,617 3,059 2,124 3,154 3,012 2,953 2.662 2,410 2,515 2,474 7 1 United Kingdom 115,971 144,938 201,201 196,007 198,660 198,194 203.627 198,151 202,178 195,942 72 Channel Islands and Isle of Man3 n.a. n.a. 4,478 3,836 3,755 3,835 4.246 4,962 5,076 5,926 23 Yugoslavia4 50 50 n.a. n.a. 2 1 n.a. n.a. n.a. n.a. 24 Other Europe and other former U.S.S.R.5 7,562 8,077 6,762 6,856 7,328 7,287 6,772 6,325 4,314 4,335 25 Canada 37,206 39,837 54,421 56,897 57,078 57,451 60,593 63,237 60,310 62,836 26 Latin America 74,040 76,561 69,762 69,505 69,524 65,502 66,851 63,194 62,214 60,367 71 Argentina 10,894 11,519 10,763 9,892 9.722 9,235 11.019 8,202 8,090 7,663 78 Brazil 16,987 20,567 19,434 19,837 20,138 18,797 19.019 18,512 17,945 17,266 79 Chile 6,607 5,815 5,317 5,399 5,226 4,950 4,874 4,949 4,960 5,118 30 Colombia 4,524 4,370 3,602 3,711 3,643 3,516 3.266 3,216 3,158 3,078 31 Ecuador 760 635 495 478 495 519 500 462 479 467 37. Guatemala 1,135 1,244 1,495 1,413 1,329 905 882 871 861 925 33 Mexico 17,899 17,415 16,522 17,081 17,356 16,448 16,266 16,349 16,015 15,805 34 Panama 3,387 2,933 3,061 2,799 2,764 2,751 2,599 2,466 2,433 1,959 35 Peru 2,529 2,807 2,185 2,048 2,019 1,923 1,833 1,748 1,649 1,599 36 Uruguay 801 673 447 503 477 357 324 314 527 345 37 Venezuela 3,494 3,518 3,077 3,463 3,472 3,353 3,337 3,306 3,291 3,301 38 Other Latin America6 5,023 5,065 3,364 2,881 2,883 2,748 2,932 2,799 2,806 2,841 39 Caribbean 281,128 319,403 370,945 348,912 345,459 360,258 374,459 345,580 367,915 347,755 40 Bahamas 99,066 114,090 101,034 98,079 94,279 107,269 108,369 96,886 95,704 91,296 41 Bermuda 8,007 9,260 7,900 7,770 9,722 8,380 11,088 11,723 11,847 11,304 47. British West Indies7 167,189 189,289 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 43 Cayman Islands7 n.a. n.a. 250,376 231,341 231.683 234,758 243,369 225,681 248,107 234,285 44 Cuba 0 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 45 Jamaica 295 355 418 418 413 408 361 350 353 463 46 Netherlands Antilles 5,982 5,801 6,729 7,137 5,390 5,578 6,859 6,387 7,334 6,194 47 Trinidad and Tobago 589 608 931 971 935 834 862 881 877 916 48 Other Caribbean6 n.a. n.a. 3,557 3,196 3,037 3,031 3,551 3,672 3,693 3,297 49 Asia 75,143 77,829 85,882 82,774 91,687 83,143 92,344 99,551' 100,484' 112,308 China 50 Mainland 2,110 1,606 2,073 4,161 6,044 4,857 6,047 7,832 5,904 7,256 51 Taiwan 1,390 2,247 4,407 4,531 3,349 3,261 6,520 6,954' 7,443 8,656 52 Hong Kong 5,903 6,669 9,995 6,499 6,457 5,350 5,596 6,614' 6,531 8,481 53 India 1,738 2,178 1,348 1,225 1,276 1,414 1,462 1,083 1,293 1,258 54 Indonesia 1,776 1,914 1,752 1,701 1,677 1,564 1,571 1,553 1,457 1,426 55 Israel 1,875 2,729 4,396 2,875 4,413 3,747 3,411 4,647 4,952 5,067 56 Japan 28,641 34,974 34,125 31,333 37,787 32,937 36,394 35.947' 37,559 45,091 57 Korea (South) 9,426 7,776 10,622 13,865 15,020 13,326 14,856 18,065' 18,961' 17,394 58 Philippines 1,410 1,784 2,587 2,065 1,718 1,332 1,995 1,857 1,593 2,134 59 Thailand 1,515 1,381 2,499 1,467 752 716 730 1,160 1,175 1.841 60 Middle Eastern oil-exporting countries8 14,267 9,346 7,882 9,239 9,143 9,555 9,061 8,960 8,975 8,619 61 Other 5,092 5,225 4,196 3,813 4,051 5,084 4,701 4,879 4,641 5,085 67 Africa 2,268 2,094 2,095 2,108 1,967 1,877 2,069 1,914 1,887 1,891 63 Egypt 258 201 416 358 333 337 418 405 324 332 64 Morocco 352 204 106 88 85 85 79 77 72 58 65 South Africa 622 309 710 786 672 559 649 545 601 576 66 Congo (formerly Zaire) 24 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 67 Oil-exporting countries9 276 471 167 211 234 247 232 227 247 303 68 Other 736 909 696 665 643 649 691 660 643 622 69 Other countries 7,105 6,117 5,842 5,744 6,319 5,060 5,733 5,744 6,164 6,514 70 Australia 6,824 5,868 5,455 4,972 5,692 4,633 5,272 5,345 5,616 5,710 71 New Zealand10 n.a. n.a. 349 762 586 406 455 392 541 791 72 All other 281 249 38 10 41 21 6 7 7 13 73 Nonmonetary international and regional organizations" .. 4,563 4,686 4,946 5,513 4,147 4,774 4,246 4,636 4,247 2,642 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

A50 International Statistics • January 2003 3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States' Payable in U.S. dollars Millions of dollars, end of period 2002 TTyyppee ooff ccllaaiimm Mar. Apr. May June July Aug. Sept.f 1 Total 944,937 1,095,869 1,257,548 1,262,395 1,317,275 2 Banks' claims 793,139 904,642 1,055,169 1,062,040 1,103,935 1,089,474 1,110,469 1,048,408' 1,086,297' 1,066,847 3 Foreign public borrowers 35,090 37,907 49,486 55,562 52,772 49,524 51,042 61,151 61,541 61,284 4 Own foreign offices2 529,682 630,137 749,124 754,029 787,312 782,182 793,226 720,252' 758,173' 734,073 5 Unaffiliated foreign banks 97,186 95,243 100,367 95,127 95,081 89,279 92,444 91,946 86,225 94,106 6 Deposits 34,538 23,886 26,189 26,306 22,778 21,598 24,012 24,449 19,051 24,210 7 Other 62,648 71,357 74,178 68,821 72,303 67,681 68,432 67,497 67,174 69,896 8 All other foreigners 131,181 141,355 156,192 157,322 168,770 168,489 173,757 175,059 180,358 177,384 9 Claims of banks' domestic customers3 151,798 191,227 202,379 200,355 206,806 10 Deposits 88,006 100,352 92,546 87,634 86,353 11 Negotiable and readily transferable instruments4 51,161 78,147 94,016 98,050 106,740 12 Outstanding collections and other claims 12,631 12,728 15,817 14,671 13,713 MEMO 13 Customer liability on acceptances 4,553 4,257 2,588 2,139 2,353 14 Banks' loans under resale agreements5 n.a. n.a. 137,655 117,383 137, i 54 134,901 152,383 162,975 164,355 159,725 15 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States6 31,125 53,153 60,711 61,417 57,884 48,488 62,161 57,552 52,982 52,382 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 States' Payable in US. dollars Millions of dollars, end of period 2001 2002 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999988 11999999 22000000 Sept. Dec. Mar. June 1 Total 250,418 267,082 274,009 298,924 305,020 304,274 311,790 By borrower 2 Maturity of one year or less 186,526 187,894 186,103 178458 200,097 188,573 202.995 3 Foreign public borrowers 13,671 22,811 21,399 19,994 27,293 26.725 26,490 4 All other foreigners 172,855 165,083 164,704 158,464 172,804 161,848 176,505 5 Maturity of more than one year 63,892 79,188 87,906 120,466 104,923 115,701 108,795 6 Foreign public borrowers 9,839 12,013 15,838 25,844 21,324 26,936 22,690 7 All other foreigners 54,053 67,175 72,068 94,622 83,599 88,765 86,105 By area Maturity of one year or less 8 Europe 68,679 80,842 142,464 70,700 83,090 79,694 82,238 9 Canada 10,968 7,859 8,323 7,897 10,072 7,763 8,060 10 Latin America and Caribbean 81,766 69,498 151,840 75,562 70,648 69,178 78.788 11 Asia 18,007 21,802 43,371 19,381 29,693 24,554 28,389 1? Africa 1,835 1,122 2,263 707 1,104 1,124 918 13 Allother3 5,271 6,771 11,717 4,211 5,490 6,260 4,602 Maturity of more than one year 14 Europe 14,923 22,951 57,770 41,597 34,067 39,813 34,877 15 Canada 3,140 3,192 3,174 4,292 3,633 3,362 3,349 16 Latin America and Caribbean 33,442 39,051 82,684 52,651 47,382 48,744 51,291 17 Asia 10,018 11,257 19,536 17,491 15,190 19,444 14,916 18 Africa 1,232 1,065 1,567 798 769 669 856 19 All other3 1,137 1,672 5,954 3,637 3,882 3,669 3,506 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity, dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A51 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 2000 2001 2002 AArreeaa oorr ccoouunnttrryy 11999988 11999999 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 1,051.6 945.5 991.0 954.4 1,027.3 1,141.1 1,137.0 l,282.1r 913.0r 798.5r 865.5 2 G-10 countries and Switzerland 217.7 243.4 313.6 280.3 300.7 334.6 336.3 291.8 406.4r 324.6' 348.2 3 Belgium and Luxembourg 10.7 14.3 13.9 13.0 14.2 15.2 13.0 14.3 19.1 16.4 17.0 4 France 18.4 29.0 32.6 29.0 29.6 30.0 35.8 34.4 39.1 33.4 42.3 5 Germany 30.9 38.7 31.5 37.6 45.1 45.0 51.4 40.9 42.9 49.2 52.0 6 Italy 11.5 18.1 20.5 18.6 21.3 20.3 23.6 22.6 20.9 19.0 20.3 7 Netherlands 7.8 12.3 16.0 17.5 18.4 22.1 18.6 20.7 19.3 23.7 20.9 8 Sweden 2.3 3.0 3.5 4.3 3.6 4.7 4.7 5.1 5.3 5.5 6.2 9 Switzerland 8.5 10.3 13.8 10.9 13.2 13.7 13.3 12.8 12.4 13.5 14.0 10 United Kingdom 85.4 79.3 138.2 112.8 115.6 140.2 126.2 93.8 195.2' 111.8' 120.5 11 Canada 16.8 16.3 18.2 18.5 16.7 15.4 21.3 20.3 19.1 16.9' 18.3 12 Japan 25.4 22.1 25.4 18.1 23.0 28.0 28.3 26.8 33.1 35.3 36.7 13 Other industrialized countries 69.0 68.4 75.3 73.7 74.5 75.2 70.0 70.6 70.5' 69.9 78.4 14 Austria 1.4 3.5 2.8 3.5 4.1 3.8 3.6 4.4 4.8 5.1 5.7 15 Denmark 2.2 2.6 1.2 1.8 1.9 3.1 2.7 2.7 2.6 3.5 2.9 16 Finland 1.4 .9 1.2 2.8 1.5 1.4 1.2 1.3 1.1 2.1 1.5 17 Greece 5.9 6.0 6.7 6.4 8.3 4.1 3.6 3.6 3.2 3.3 3.7 18 Norway 3.2 3.3 4.6 8.5 8.3 10.2 7.9 6.2 8.1 9.0 10.6 19 Portugal 1.4 1.0 2.0 1.5 2.0 1.9 1.4 1.4 1.6 1.8 1.8 20 Spain 13.7 12.1 12.2 10.5 10.3 12.4 12.4 13.7 12.1 12.1 13.3 21 Turkey 4.8 4.8 5.6 5.6 5.9 5.0 4.5 4.1 3.9 5.3 4.3 22 Other Western Europe 10.4 6.8 7.9 8.3 6.5 7.1 6.9 7.2 8.3 8.4 9.0 23 South Africa 4.4 3.8 4.6 4.2 3.6 4.1 3.8 4.4 4.1 3.3 3.5 24 Australia 20.3 23.5 26.3 20.5 22.1 21.9 22.1 21.6 20.6 15.9 22.2 25 OPEC2 27.1 31.4 32.1 31.4 28.9 27.9 27.1 27.4 27.3 27.5 26.7 26 Ecuador 1.3 .8 .7 .6 .6 .6 .6 .6 .6 .6 .6 27 Venezuela 3.2 2.8 2.9 2.9 2.5 2.7 2.6 2.6 2.4 2.4 2.2 28 Indonesia 4.7 4.2 4.1 4.4 4.6 4.4 4.2 4.0 3.7 3.6 3.3 29 Middle East countries 17.0 23.1 23.8 22.4 20.3 19.7 19.3 19.9 20.3 20.6 20.2 30 African countries 1.0 .5 .7 1.2 .8 .5 .4 .4 .3 .3 .4 31 Non-OPEC developing countries 143.4 149.4 158.1 149.5 145.5 150.1 157.6 201.6 203.3 195.9 196.0 Latin America 32 Argentina 23.1 23.2 21.6 21.4 21.4 20.9 19.8 19.2 19.2 12.8 12.3 3.3 Brazil 24.7 27.7 28.3 28.5 28.8 29.4 30.9 30.9 28.0 26.6 24.8 34 Chile 8.3 7.4 8.1 7.3 7.6 7.3 7.0 6.4 7.0 7.1 7.1 35 Colombia 3.2 2.5 2.4 2.4 2.4 2.4 2.4 2.5 2.5 2.4 2.4 .36 Mexico 18.9 18.7 20.4 17.5 15.7 16.7 16.3 60.0 68.2 67.1 63.5 .37 2.2 1.7 2.1 2.1 2.0 2.0 2.0 1.9 1.8 1.5 1.5 38 Other 5.4 5.9 6.7 6.2 6.3 8.6 8.3 8.1 8.9 7.9 7.4 Asia China 39 Mainland 3.0 3.6 3.8 3.4 2.9 3.2 6.7 5.9 5.0 7.0 8.6 40 Taiwan 13.3 12.0 12.6 12.8 10.8 11.2 10.7 10.8 12.2 12.6 16.1 41 India 5.5 7.7 8.2 5.8 9.1 6.5 11.8 14.1 6.9 6.3 5.9 42 1.1 1.8 1.5 1.1 2.7 2.2 2.0 3.2 3.7 2.4 2.4 43 Korea (South) 13.7 15.2 21.7 21.4 15.5 19.9 19.3 19.3 18.5 22.4 24.4 44 Malaysia 5.6 6.1 6.8 6.9 7.1 6.5 6.71 6.1 6.7 6.4 6.3 45 Philippines 5.1 6.2 5.3 4.7 5.1 5.2 5.4 5.2 5.6 5.4 5.3 46 Thailand 4.7 4.1 4.0 3.9 4.0 4.2 4.2 3.9 5.1 4.0 3.5 47 Other Asia 2.9 2.9 1.9 1.7 1.9 1.7 1.8 1.6 1.9 1.9 2.0 Africa 48 Egypt 1.3 1.4 1.3 1.1 1.1 1.2 1.2 1.4 1.2 1.3 1.5 49 Morocco .5 .4 .3 .4 .3 .3 .3 .3 .1 .1 .1 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 1.0 1.0 .9 .8 .7 .7 .7 .8 .7 .7 .8 52 Eastern Europe 5.5 5.2 9.4 9.0 10.1 9.5 9.5 10.2 10.1 10.6 12.8 53 Russia4 2.2 1.6 1.5 1.4 1.0 1.5 1.5 1.6 1.6 2.8 2.8 54 Other 3.3 3.6 7.9 7.6 9.1 8.0 8.0 8.5 8.5 7.9 10.0 55 Offshore banking centers 93.9 59.9 60.6 59.4 76.3 71.4 58.1 73.r 72.0 56.6 90.6 56 Bahamas 35.4 13.7 8.8 9.3 13.5 7.0 .0 1.1 7.5 7.5 10.9 57 Bermuda 4.6 8.0 6.3 6.3 9.0 7.9 5.7 7.6 7.6 8.1 12.7 58 Cayman Islands and other British West Indies 12.8 1.3 5.1 5.9 14.6 13.6 11.9 21.8' 16.4 5.0 27.8 59 Netherlands Antilles 2.6 1.7 2.6 1.9 1.9 2.9 1.7 5.8 2.8 3.3 2.8 60 Panama5 3.9 3.9 3.3 2.5 3.2 3.8 3.4 3.5 3.2 3.3 3.2 61 Lebanon .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .2 62 Hong Kong, China 23.3 21.0 20.7 20.6 18.7 21.5 22.3 17.9 18.9 15.7 16.5 63 Singapore 11.1 10.1 13.6 12.6 15.2 14.6 12.9 15.2 15.5 13.5 16.6 64 Other® .2 .1 .1 .1 .2 .1 .1 .0 .1 .0 .0 65 Miscellaneous and unallocated7 495.1 387.9 342.1 351.1 391.2 472.4 478.6 607.6 123.4 113.4 112.9 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

A52 International Statistics • January 2003 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 2001 2002 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999988 11999999 22000000 Mar. June Sept. Dec. Mar. June I Total 46,570 53,044 73,904 73,655 68,028 53,526 66,718 74,035 70,696 2 Payable in dollars 36,668 37,605 48,931 46,526 41,734 35,347 42,957 46,805 48,620 3 Payable in foreign currencies 9,902 15,415 24,973 27,129 26,294 18,179 23,761 27,230 22,076 By type 4 Financial liabilities 19,255 27,980 47,419 47,808 41,908 27,502 41,034 45,588 42,365 5 Payable in dollars 10,371 13,883 25,246 23,201 17,655 11,415 18,763 20,122 21,892 6 Payable in foreign currencies 8,884 14,097 22,173 24,607 24,253 16,087 22,271 25,466 20,473 7 Commercial liabilities 27,315 25,064 26,485 25,847 26,120 26,024 25,684 28,447 28,331 8 Trade payables 10,978 12,857 14,293 12,481 13,127 11,740 11,820 14,872 14,193 9 Advance receipts and other liabilities 16,337 12,207 12,192 13,366 12,993 14,284 13,864 13,575 14,138 10 Payable in dollars 26,297 23,722 23,685 23,325 24,079 23,932 24,194 26,683 26,728 11 Payable in foreign currencies 1,018 1,318 2,800 2,522 2,041 2,092 1,490 1.764 1,603 Bv area or country Financial liabilities 12 Europe 12,589 23,241 34,172 37,422 32,785 22,083 31,806 38.697 34,682 13 Belgium and Luxembourg 79 31 147 112 98 76 154 119 120 14 France 1,097 1,659 1,480 1,553 1,222 1,538 2,841 3,531 4,071 15 Germany 2,063 1,974 2,168 2,624 2,463 1,994 2,344 2,802 2,622 16 Netherlands 1,406 1,996 2,016 2,169 1,763 1,998 1,954 1,951 1,939 17 Switzerland 155 147 104 103 93 92 94 84 61 18 United Kingdom 5,980 16,521 26,362 28,812 25,363 14,819 22,852 28,180 23,859 19 Canada 693 284 411 718 628 436 955 942 946 20 Latin America and Caribbean 1,495 892 4,125 3,632 2,100 414 2,858 1.547 1,832 21 Bahamas 7 1 6 18 40 5 157 5 5 22 Bermuda 101 5 1,739 1,837 461 47 960 836 626 23 Brazil 152 126 148 26 21 22 35 35 38 24 British West Indies 957 492 406 1,657 1,508 243 1,627 612 1,000 25 Mexico 59 25 26 31 20 24 36 27 25 26 Venezuela 2 0 2 1 1 3 2 1 5 27 Asia 3,785 3,437 7,965 5,324 5,639 3,869 5,042 4,010 4,491 28 Japan 3,612 3,142 6,216 4,757 3,297 3,442 3,269 3,299 2,387 29 Middle Eastern oil-exporting countries' 0 4 11 15 8 9 10 15 14 30 Africa 28 28 52 38 61 59 53 122 120 31 Oil-exporting countries2 0 0 0 0 0 5 5 91 91 32 All other' 665 98 694 674 695 672 320 270 294 Commercial liabilities 33 Europe 10,030 9,262 9,629 8,792 8,723 8,855 9,230 8,372 8,735 34 Belgium and Luxembourg 278 140 293 251 297 160 99 105 96 35 France 920 672 979 689 665 892 735 701 860 36 Germany 1,392 1,131 1,047 982 1,017 966 908 584 551 37 Netherlands 429 507 300 349 343 343 1,163 463 692 38 Switzerland 499 626 502 623 697 683 790 637 776 39 United Kingdom 3,697 3,071 2,847 2,542 2,706 2,296 2,280 2,747 2,754 40 Canada 1,390 1,775 1,933 1,625 1,957 1,569 1,633 1,798 2,043 41 Latin America and Caribbean 1,618 2,310 2,381 2,166 2.293 2,879 2,729 3,454 2,727 42 Bahamas 14 22 31 5 31 44 52 23 12 43 Bermuda 198 152 281 280 367 570 591 433 403 44 Brazil 152 145 114 239 279 312 290 277 320 45 British West Indies 10 48 76 64 21 28 45 67 46 46 Mexico 347 887 841 792 762 884 901 1,457 959 47 Venezuela 202 305 284 243 218 242 166 281 205 48 Asia 12,342 9,886 10,983 11,542 11,384 11.114 10,532 12,969 12,951 49 Japan 3.827 2,609 2,757 2,431 2,377 2,421 2,592 4,281 4,301 50 Middle Eastern oil-exporting countries' 2,852 2,551 2,832 3,359 3,087 3,053 2,642 3,142 3.204 51 Africa 794 950 948 1,072 1,115 938 836 976 951 52 Oil-exporting countries2 393 499 483 566 539 471 436 454 409 53 Other3 1,141 881 614 650 648 669 724 878 924 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 A53 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 2001 2002 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999988 11999999 22000000 Mar. June Sept. Dec. Mar. June 1 Total 77,462 76,669 90,157 107,705 97,470 94,076 113,155 102,058 102,592 2 Payable in dollars 72,171 69,170 79,558 94,932 87,690 83,292 103,937 92,486 93,550 3 Payable in foreign currencies 5,291 7,472 10,599 12,773 9.780 10,784 9,218 9,572 9,042 By type 4 Financial claims 46,260 40,231 53,031 74,255 61,891 60,015 81,287 71,696 73,623 Deposits 30,199 18,566 23,374 25,419 25,381 22,391 29,801 28,128 28,312 6 Payable in dollars 28,549 16,373 21,015 23,244 23,174 19,888 27,850 26,317 26,499 7 Payable in foreign currencies 1,650 2,193 2,359 2,175 2,207 2,503 1,951 1,811 1,813 8 Other financial claims 16,061 21,665 29,657 48,836 36,510 37,624 51,486 43,568 45,311 9 Payable in dollars 14,049 18,593 25,142 41,417 32,038 32,076 46,621 39,553 41,998 10 Payable in foreign currencies 2,012 3,072 4,515 7,419 4,472 5,548 4,865 4,015 3,313 11 Commercial claims 31,202 36,438 37,126 33,450 35,579 34,061 31,868 30,362 28,969 12 Trade receivables 27.202 32,629 33,104 28,958 30,631 29,328 27,586 25,597 24,395 13 Advance payments and other claims 4,000 3.809 4,022 4,492 4,948 4,733 4,282 4,765 4,574 14 Payable in dollars 29,573 34,204 33,401 30,271 32,478 31,328 29,466 26,616 25,053 15 Payable in foreign currencies 1,629 2,207 3,725 3,179 3,101 2,733 2,402 3,746 3,916 By area or country Financial claims 16 Europe 12.294 13,023 23,136 31,855 23,975 23,069 26,118 23,671 23,656 17 Belgium and Luxembourg 661 529 296 430 262 372 625 751 797 18 France 864 967 1,206 3,142 1,376 1,682 1,450 1,801 2,312 19 Germany 304 504 848 1,401 1,163 1,112 1,068 941 1,302 20 Netherlands 875 1,229 1,396 2,313 1,072 954 2,138 1,820 1,847 21 Switzerland 414 643 699 613 653 665 589 308 295 22 United Kingdom 7,766 7,561 15,900 20,938 15,913 15,670 16,510 14,023 11,684 23 Canada 2,503 2,553 4,576 4,847 4,787 4,254 6,193 5,291 5,248 24 Latin America and Caribbean 27,714 18,206 19,317 28,791 24,403 26,099 41,201 35,001 37,511 25 Bahamas 403 1,593 1,353 561 818 649 976 1,197 1,332 26 Bermuda 39 11 19 1,729 426 80 918 611 704 27 Brazil 835 1,476 1,827 1,648 1,877 2,065 2,127 1,892 2,036 78 British West Indies 24,388 12,099 12,596 21,227 17,505 19,234 32,965 27,350 29,591 29 Mexico 1,245 1,798 2,448 2,461 2,633 2,910 3,075 2,777 2,823 30 Venezuela 55 48 87 38 66 80 83 79 60 31 Asia 3,027 5,457 4,697 7,215 6,829 5,274 6,430 6,489 5,826 .32 Japan 1,194 3,262 1,631 3,867 1,698 1,761 1,604 2,009 1,093 33 Middle Eastern oil-exporting countries' 9 23 80 86 76 100 135 79 78 34 Africa 159 286 411 430 476 456 414 390 431 35 Oil-exporting countries2 16 15 57 42 35 83 49 51 64 36 All other3 563 706 894 1,117 1,421 891 931 854 951 Commercial claims 37 Europe 13,246 16,389 15,938 13,775 14,469 14,381 14,036 12,708 11,897 38 Belgium and Luxembourg 238 316 452 395 403 354 268 272 210 39 France 2,171 2,236 3,095 3,479 3,190 3,062 2,922 2,883 2,827 40 Germany 1,822 1,960 1,982 1,586 1,993 1,977 1,662 1,198 1,163 41 Netherlands 467 1,429 1,729 757 863 844 529 415 381 47 Switzerland 483 610 763 634 473 514 611 436 472 43 United Kingdom 4,769 5.827 4,502 3,562 3,724 3,571 3,839 3,579 3,395 44 Canada 2,617 2,757 3,502 3,392 3,470 3,116 2,855 2,760 2,755 45 Latin America and Caribbean 6,296 5,959 5,851 5,144 6,033 5,590 4,874 4,891 4,659 46 Bahamas 24 20 37 20 39 35 42 42 28 47 Bermuda 536 390 376 407 650 526 369 422 215 48 Brazil 1,024 905 957 975 1,363 1,183 958 837 840 49 British West Indies 104 181 137 130 135 124 95 73 26 50 Mexico 1,545 1,678 1,507 1,350 1,375 1,442 1,401 1,225 1,295 51 Venezuela 401 439 328 292 321 301 288 312 317 52 Asia 7,192 9,165 9,630 8,985 9,499 8,704 7,855 7,513 7,287 53 Japan 1,681 2,074 2,796 2,560 3,148 2,438 2,007 1,975 2,055 54 Middle Eastern oil-exporting countries' 1,135 1,625 1,024 966 1,040 919 851 657 886 55 Africa 711 631 672 773 601 838 645 630 611 56 Oil-exporting countries2 165 171 180 165 102 170 88 109 94 57 Other3 1,140 1,537 1,572 1,381 1,507 1,432 1,603 1,860 1,760 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

A54 International Statistics • January 2003 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2002 2002 TTrraannssaaccttiioonn,, aanndd aarreeaa oorr ccoouunnttrryy 22000000 22000011 Jan.- Sept. Mar. Apr. May June July Aug. Sept.P U.S. corporate securities STOCKS 1 Foreign purchases 3,605,196 3,051,332 2,379,615 286,549 272,125 274,543 248,562 318,210 257,264 206,699 2 Foreign sales 3,430,306 2,934,942 2,342,688 279,632 264,298 274,889 244,549 308,555 252,651 213,168 3 Net purchases, or sales (-) 174,890 116,390 36,927 6,917 7,827 -346 4,013 9,655 4,613 -6,469 4 Foreign countries 174,903 116,187 37,010 6,932 7,834 -324 3,997 9,582 4,602 -6,454 5 Europe 164,656 88,099 21,251 6,810 2,591 -2,548 -653 3,205 3,830 -5,156 6 France 5,727 5,914 738 405 1,202 -1,270 -1,249 38 942 -936 7 Germany 31,752 8,415 -981 332 56 ^18 -131 -595 -328 -1,175 8 Netherlands 4,915 10,919 2,448 192 -663 41 36 1,440 900 -4 y Switzerland 11,960 3,456 202 569 814 89 -710 -341 -306 -949 10 United Kingdom 58,736 38,493 10,772 3,110 -324 -1,829 1,117 1,829 2,801 -1,227 n Channel Islands and Isle of Man' n.a. -698 -359 -113 -63 -3 -2 73 —17 -20 12 Canada 5,956 10,984 6,328 598 1,262 546 373 1,939 1,336 -774 13 Latin America and Caribbean -17,812 -5,154 -13,097 302 1,989 -703 -673 -1,318 -3,850 -2,902 14 Middle East2 9,189 1,789 -1,044 -901 -273 -30 198 43 -58 46 IS Other Asia 12,494 20,726 20,830 245 2,143 2,253 3,986 4,755 3,231 2,012 16 Japan 2,070 6,788 14,687 1,002 1,244 3,116 3,193 3,660 2,249 238 17 415 -366 -17 -26 -41 9 -1 3 -34 36 18 Other countries 5 109 2,759 -96 163 149 767 955 147 284 19 Nonmonetary international and regional organizations -11 203 -82 -15 -7 -22 16 73 11 -15 BONDS3 20 Foreign purchases 1,208,386 1,942,690 1,865,868 219,825 217,286 219,553 204,684 221,223 221,413 211,616 21 Foreign sales 871,416 1,556,745 1,593,818 173,729 175,072 174,562 171,729 205,574 189,475 186,471 22 Net purchases, or sales (-) 336,970 385,945 272,050 46,096 42,214 44,991 32,955 15,649 31,938 25,145 23 Foreign countries 337,074 385,380 272,426 46,275 42,229 45,121 32,806 15,970 31,907 25,236 24 Europe 180,917 195,412 120,185 21,125 20,875 19,149 20,019 3,152 10,927 12,172 25 France 2,216 5,028 2,786 578 380 350 462 192 487 255 26 Germany 4,067 12,362 3,245 1.545 385 132 681 680 370 -388 2/ Netherlands 1,130 1,538 -542 -173 732 ^19 -518 393 55 -37 28 Switzerland 3,973 5,721 7,222 -102 247 1,412 1,109 1,406 1,825 356 29 United Kingdom 141,223 152,772 80,883 16,381 15,540 15,309 13,022 -330 3,718 7,627 30 Channel Islands and Isle of Man1 n.a. 2,000 3,076 309 20 92 -14 -20 1,203 1,342 31 Canada 13,287 4,595 1,223 869 385 -193 923 -611 165 -410 32 Latin America and Caribbean 59,444 77,019 65,534 13,133 8,487 15,618 2,936 1,840 9,707 3,293 33 Middle East1 2,076 2,338 1,743 377 9 -172 24 125 578 40 34 Other Asia 78,794 106,400 79,743 10,321 12,438 10,608 8,521 10,336 9,026 9,601 35 Japan 39,356 33,687 27,564 -166 8,509 5,046 3,290 4,754 1,975 6,134 36 Africa 938 760 824 34 95 13 330 112 77 171 3/ Other countries 1,618 -1,144 3,174 416 -60 98 53 1,016 1,427 369 38 Nonmonetary international and regional organizations -70 566 -376 -179 -15 -130 149 -321 31 -91 Foreign securities 39 Stocks, net purchases, or sales (-) -13,088 -50,113 7,177 5,503 -3,561 -7,927 -4,983 13,285 3,049 712 40 Foreign purchases 1,802,185 1,397,664 974,907 116,435 114,999 113,418 111,699 139,500 92,879 87,224 41 Foreign sales 1,815,273 1,447,777 967,730 110,932 118,560 121,345 116,682 126,215 89,830 86,512 42 Bonds, net purchases, or sales (-) —4,054 30,423 23,980 7,333 461 6,871 5,730 7,707 -1,583 774 43 Foreign purchases 958,932 1,159,185 988,705 109,465 99,383 124,357 118,365 120,212 111,361 122,840 44 Foreign sales 962,986 1,128,762 964,725 102,132 98,922 117,486 112,635 112,505 112,944 122,066 45 Net purchases, or sales (-), of stocks and bonds -17,142 -19,690 31,157 12,836 -3,100 -1,056 747 20,992 1,466 1,486 46 Foreign countries -17,278 -19,102 31,247 12,931 -3,204 -1,105 781 21,082 1,441 1,508 47 Europe -25,386 -12,117 15,816 13,620 -4,805 647 -4,639 11,407 563 852 48 Canada -3,888 2,943 5,559 -764 1,565 56 2,240 1,918 8 -556 49 Latin America and Caribbean -15,688 4,245 3,495 1,353 -1,106 -1,699 2,785 1,939 -600 -352 50 Asia 24,488 -11,869 6,167 -949 2,220 381 342 4,990 1,028 1,019 51 Japan 20,970 -20,116 -469 -2,789 998 -518 -871 3,453 379 -861 52 943 -557 -630 -72 -1,141 -118 8 205 393 -39 53 Other countries 2,253 -1,747 842 -257 63 -372 45 623 49 584 54 Nonmonetary international and regional organizations 150 -587 -92 -95 104 49 -34 -90 25 -22 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 A55 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions1 Millions of dollars; net purchases, or sales (-) during period 2002 2002 Area or country 2000 2001 JJaann..-- Mar. Apr. May June July Aug. Sept.' SSeepptt.. 1 Total estimated -54,032 18,514 48,648 15,518 -12,528 -539 10,896 21,023 1,120 26,257 2 Foreign countries -53,571 19,200 47,644 15,369 -12,838 -39 10,773 21,117 705 26,245 3 Europe -50,704 -20,604 -2,581 8,194 -8,844 -6,274 -371 4,533 -1,811 8,007 4 Belgium2 73 -598 1,761 410 -71 8 292 274 1,333 -114 5 Germany -7,304 -1,668 -7,674 1,759 -115 649 -587 -2,930 -2,041 -666 6 Luxembourg2 n.a. 462 -1,317 79 -325 -166 85 -84 -14 -252 7 Netherlands 2,140 -6,728 -20,362 -3,891 -3,295 -9,328 -2,487 147 -1,439 1,217 8 Sweden 1,082 -1,190 588 269 103 55 192 -169 471 234 9 Switzerland -10,326 1,412 1,300 973 -1,262 341 359 246 -705 1,150 10 United Kingdom -33,669 -7,279 28,710 8,236 -5,996 2,312 1,820 10,278 378 9,078 11 Channel Islands and Isle of Man3 n.a. -179 1,213 -251 -35 84 793 177 444 -^43 12 Other Europe and former U.S.S.R -2,700 -4,836 -6,800 610 2,152 -229 -838 -3,406 -238 -2,597 13 Canada -550 -1,634 -5,646 1,753 -1,223 454 -1,634 -2,011 -1,671 875 14 Latin America and Caribbean ^4,914 4,272 13,400 -460 -1,500 7,939 6,382 4,602 -11,831 7,757 15 Venezuela 1,288 290 10 -7 -18 6 160 -58 -15 -79 16 Other Latin America and Caribbean -11,581 14,726 16,602 8,802 -1,918 1,933 3,298 3,736 -7,434 5,520 17 Netherlands Antilles 5,379 -10,744 -3,212 -9,255 436 6,000 2,924 924 ^4,382 2,316 18 Asia 1,639 36,332 39,378 6,107 -1,543 -2,826 5,838 12,931 15,668 9,664 19 Japan 10,580 16,114 25,492 -1,855 3,019 195 2,454 7,651 6,573 12,750 20 Africa —414 -880 738 70 -176 -38 299 112 495 -93 21 Other 1,372 1,714 2,355 -295 448 706 259 950 -145 35 22 Nonmonetary international and regional organizations -461 -686 1,004 149 310 -500 123 -94 415 12 23 International -483 -290 835 199 398 -240 -21 -64 418 -45 24 Latin American Caribbean regional 76 41 12 -5 -47 -14 28 11 -4 29 MEMO 25 Foreign countries -53,571 19,200 47,644 15,369 -12,838 -39 10,773 21,117 705 26,245 26 Official institutions -6,302 3,474 -7,447 5,233 -1,451 -69 2,161 -5,268 635 -3,511 27 Other foreign -47,269 15,726 55,091 10,136 -11,387 30 8,612 26,385 70 29,756 Oil-exporting countries 28 Middle East* 3,483 865 -1,359 137 1,382 -753 -249 -1,338 -1,010 -362 29 Africa5 0 -2 -27 2 -25 0 0 0 -2 -1 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

A56 International Statistics • January 2003 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 2002 June July Aug. Sept. Oct. Nov. Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 64.54 58.15 51.69 56.82 55.38 54.13 54.65 55.02 56.13 2 Brazil/real 1.8207 1.8301 2.3527 2.7144 2.9414 3.1082 3.3548 3.7966 3.5924 3 Canada/dollar 1.4858 1.4855 1.5487 1.5318 1.5456 1.5694 1.5761 1.5780 1.5715 4 China, P.R./yuan 8.2783 8.2784 8.2770 8.2767 8.2768 8.2767 8.2760 8.2772 8.2772 5 Denmark/krone 6.9900 8.0953 8.3323 7.7775 7.4807 7.5948 7.5752 7.5732 7.4201 6 European Monetary Union/euro3 1.0653 0.9232 0.8952 0.9561 0.9935 0.9781 0.9806 0.9812 1.0013 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 7.8000 7.8000 7.8008 7.7999 7.7995 7.7994 9 India/rupee 43.13 45.00 47.22 48.98 48.79 48.62 48.46 48.39 48.29 10 Japan/yen 113.73 107.80 121.57 123.29 117.90 118.99 121.08 123.91 121.61 11 Malaysia/ringgit 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 12 Mexico/peso 9.553 9.459 9.337 9.767 9.779 9.839 10.071 10.094 10.195 13 New Zealand/dollar2 52.94 45.68 42.02 48.86 48.09 46.35 47.02 48.18 49.73 14 Norway/krone 7.8071 8.8131 8.9964 7.7533 7.4694 7.6042 7.5018 7.4873 7.3157 15 Singapore/dollar 1.6951 1.7250 1.7930 1.7831 1.7524 1.7553 1.7682 1.7843 1.7653 16 South Africa/rand 6.1191 6.9468 8.6093 10.1841 10.1032 10.5878 10.5967 10.3058 9.6509 17 South Korea/won 1,189.84 1,130.90 1,292.01 1.219.70 1,179.99 1,197.51 1,211.61 1,240.19 1,210.20 18 Sri Lanka/rupee 70.868 76.964 89.602 96.408 96.266 96.281 96.207 96.402 96.426 19 Sweden/krona 8.2740 9.1735 10.3425 9.5376 9.3474 9.4610 9.3400 9.2846 9.0652 20 Switzerland/franc 1.5045 1.6904 1.6891 1.5399 1.4718 1.4972 1.4931 1.4932 1.4658 21 Taiwan/dollar 32.322 31.260 33.824 33.889 33.272 33.884 34.573 34.947 34.673 21 Thailand/baht 37.887 40.210 44.532 42.160 41.257 42.193 42.893 43.641 43.353 23 United Kingdom/pound2 161.72 151.56 143.96 148.37 155.65 153.68 155.63 155.75 157.11 24 Venezuela/bolivar 606.82 680.52 724.10 1,212.07 1,317.38 1,379.73 1,458.39 1,440.50 1,358.61 Indexes4 NOMINAL 25 Broad (January 1997-100)5 116.87 119.67 126.09 125.96 124.20 125.64 126.67 127.69 126.38 26 Major currencies (March 1973=100)6 94.07 98.32 104.32 101.42 98.97 100.35 100.68 101.24 99.83 27 Other important trading partners (January 1997=100)7 129.94 130.33 136.34 140.70 140.47 141.69 143.71 145.28 144.43 REAL 28 Broad (March 1973=100)5 100.78 104.32 110.42 109.9 1' I08.39r 109.74' 110.52' 111.42' 110.15 29 Major currencies (March 1973-100)6 97.06 103.17 110.73 107.80 105.27 106.80 107.20 108.07' 106.87 30 Other important trading partners (March 1973=100)7 114.26 114.53 119.21 12l.87r 121,60r 122.79' 124.18' 125.20' 123.73 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 Resen-e 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

A57 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 September 30, 2001 February 2002 A64 December 31, 2001 May 2002 A64 March 31, 2002 August 2002 A58 June 30, 2002 November 2002 A58 Terms of lending at commercial banks November 2001 February 2002 A66 February 2002 May 2002 A66 May 2002 August 2002 A60 August 2002 November 2002 A60 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 2001 March 2002 A65 December 31,2001 May 2002 A72 March 31, 2002 August 2002 A66 June 30, 2002 November 2002 A66 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 2000 September 2001 A64 2001 September 2002 A58 Disposition of applications for private mortgage insurance 2000 September 2001 A73 2001 September 2002 A69 Small loans to businesses and farms 2000 September 2001 A76 2001 September 2002 A70 Community development lending reported under the Community Reinvestment Act 2000 September 2001 A79 2001 September 2002 A58 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 2002 A66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 Federal Reserve Bulletin • January 2003 Index to Statistical Tables References are to pages A3-A56, although the prefix 'A" is omitted in this index. ACCEPTANCES, bankers (See Bankers acceptances) Federal Reserve Banks Assets and liabilities (See also Foreigners) Condition statement, 10 Commercial banks, 15-21 Discount rates (See Interest rates) Domestic finance companies, 30, 31 U.S. government securities held, 5, 10, 11, 25 Federal Reserve Banks, 10 Federal Reserve credit, 5, 6, 10, 12 Foreign-related institutions, 20 Federal Reserve notes, 10 Automobiles Federally sponsored credit agencies, 28 Consumer credit, 34 Finance companies Production, 42, 43 Assets and liabilities, 30 Business credit, 31 BANKERS acceptances, 5, 10 Loans, 34 Bankers balances, 15-21 (See also Foreigners) Paper, 22, 23 Bonds (See also U.S. government securities) Float, 5 New issues, 29 Flow of funds, 35-39 Rates, 23 Foreign currency operations, 10 Business loans (See Commercial and industrial loans) Foreign deposits in U.S. banks, 5 Foreign exchange rates, 56 Foreign-related institutions, 20 CAPACITY utilization, 40, 41 Foreigners Capital accounts Commercial banks, 15-21 Claims on, 46, 49-51, 53 Federal Reserve Banks, 10 Liabilities to, 45-48, 52, 54, 55 Certificates of deposit, 23 Commercial and industrial loans GOLD Commercial banks, 15-21 Certificate account, 10 Weekly reporting banks, 17, 18 Stock, 5, 45 Commercial banks Government National Mortgage Association, 28, 32, 33 Assets and liabilities, 15-21 Commercial and industrial loans, 15-21 Consumer loans held, by type and terms, 34 INDUSTRIAL production, 42, 43 Real estate mortgages held, by holder and property, 33 Insurance companies, 25, 33 Time and savings deposits, 4 Interest rates Commercial paper, 22, 23, 30 Bonds, 23 Condition statements (See Assets and liabilities) Consumer credit, 34 Consumer credit, 34 Federal Reserve Banks, 7 Corporations Money and capital markets, 23 Security issues, 29, 55 Mortgages, 32 Credit unions, 34 Prime rate, 22 Currency in circulation, 5, 13 International capital transactions of United States, 44-55 Customer credit, stock market, 24 International organizations, 46, 47, 49, 52, 53 Investment companies, issues and assets, 30 Investments (See also specific types) DEBT (See specific types of debt or securities) Commercial banks, 4, 15-21 Demand deposits, 15-21 Federal Reserve Banks, 10, 11 Depository institutions Financial institutions, 33 Reserve requirements, 8 Reserves and related items, 4-6, 12 Deposits (See also specific types) LIFE insurance companies (See Insurance companies) Commercial banks, 4, 15-21 Loans (See also specific types) Federal Reserve Banks, 5, 10 Commercial banks, 15-21 Discount rates at Reserve Banks and at foreign central banks and Federal Reserve Banks, 5-7, 10, 11 foreign countries (See Interest rates) Financial institutions, 33 Discounts and advances by Reserve Banks (See Loans) Insured or guaranteed by United States, 32, 33 EURO, 56 MANUFACTURING Capacity utilization, 40, 41 FARM mortgage loans, 33 Production, 42, 43 Federal agency obligations, 5, 9-11, 26, 27 Margin requirements, 24 Federal credit agencies, 28 Member banks, reserve requirements, 8 Federal finance Mining production, 43 Debt subject to statutory limitation, and types and ownership of Monetary and credit aggregates, 4, 12 gross debt, 25 Money and capital market rates, 23 Federal Financing Bank, 28 Money stock measures and components, 4, 13 Federal funds, 23 Mortgages (See Real estate loans) Federal Home Loan Banks, 28 Mutual funds, 13, 30 Federal Home Loan Mortgage Corporation, 28, 32, 33 Federal Housing Administration, 28, 32, 33 Mutual savings banks (See Thrift institutions) Federal Land Banks, 33 Federal National Mortgage Association, 28, 32, 33 OPEN market transactions, 9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A59 PRICES Stock market, selected statistics, 24 Stock market, 24 Stocks (See also Securities) Prime rate, 22 New issues, 29 Production, 42, 43 Prices, 24 Student Loan Marketing Association, 28 REAL estate loans Banks, 15-21, 33 THRIFT institutions, 4 (See also Credit unions and Savings Terms, yields, and activity, 32 institutions) Type and holder and property mortgaged, 33 Time and savings deposits, 4, 13, 15-21 Reserve requirements, 8 Treasury cash, Treasury currency, 5 Reserves Treasury deposits, 5, 10 Commercial banks, 15-21 Depository institutions, 4—6 U.S. GOVERNMENT balances Federal Reserve Banks, 10 Commercial bank holdings, 15-21 U.S. reserve assets, 45 Treasury deposits at Reserve Banks, 5, 10 Residential mortgage loans, 32, 33 U.S. government securities Retail credit and retail sales, 34 Bank holdings, 15-21, 25 Dealer transactions, positions, and financing, 27 SAVING Federal Reserve Bank holdings, 5, 10, 11, 25 Flow of funds, 33, 34, 35-39 Foreign and international holdings and transactions, 10, 25, 55 Savings deposits (See Time and savings deposits) Open market transactions, 9 Savings institutions, 33, 34, 35-39 Outstanding, by type and holder, 25, 26 Securities (See also specific types) Rates, 23 Federal and federally sponsored credit agencies, 28 US. international transactions, 44—55 Foreign transactions, 54 Utilities, production, 43 New issues, 29 Prices, 24 Special drawing rights, 5, 10, 44, 45 VETERANS Affairs, Department of, 32, 33 State and local governments Holdings of U.S. government securities, 25 WEEKLY reporting banks, 17, 18 New security issues, 29 Rates on securities, 23 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 Federal Reserve Bulletin • January 2003 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 INTERNATIONAL FINANCE DONALD J. WINN, Assistant to the Board and Director KAREN H. JOHNSON, Director LYNN S. FOX, Assistant to the Board DAVID H. HOWARD, Deputy Director MICHELLE A. SMITH, Assistant to the Board THOMAS A. CONNORS, Associate Director WINTHROP P. HAMBLEY, Deputy Congressional Liaison DALE W. HENDERSON, Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board RICHARD T. FREEMAN, Deputy Associate Director JOHN LOPEZ, Special Assistant to the Board WILLIAM L. HELKIE, Senior Adviser ROSANNA PIANALTO-CAMERON, Special Assistant to the Board STEVEN B. KAMIN, Deputy Associate Director DAVID W. SKIDMORE, Special Assistant to the Board JON W. FAUST, Assistant Director JOSEPH E. GAGNON, Assistant Director LEGAL DIVISION MICHAEL P. LEAHY, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel D. NATHAN SHEETS, Assistant Director SCOTT G. ALVAREZ, Associate General Counsel RALPH W. TRYON, Assistant Director RICHARD M. ASHTON, Associate General Counsel KATHLEEN M. O'DAY, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS STEPHANIE MARTIN, Assistant General Counsel DAVID J. STOCKTON, Director ANN E. MISBACK, Assistant General Counsel EDWARD C. ETTIN, Deputy Director STEPHEN L. SICILIANO, Assistant General Counsel DAVID W. WILCOX, Deputy Director KATHERINE H. WHEATLEY, Assistant General Counsel MYRON L. KWAST, Associate Director CARY K. WILLIAMS, Assistant General Counsel STEPHEN D. OLINER, Associate Director PATRICK M. PARKINSON, Associate Director OFFICE OF THE SECRETARY LAWRENCE SLIFMAN, Associate Director JENNIFER J. JOHNSON, Secretary CHARLES S. STRUCKMEYER, Associate Director ROBERT DEV. FRIERSON, Deputy Secretary JOYCE K. ZICKLER, Deputy Associate Director MARGARET M. SHANKS, Assistant Secretary J. NELLIE LIANG, Assistant Director S. WAYNE PASSMORE, Assistant Director DIVISION OF BANKING SUPERVISION DAVID L. REIFSCHNEIDER, Assistant Director AND REGULATION JANICE SHACK-MARQUEZ, Assistant Director RICHARD SPILLENKOTHEN, Director WILLIAM L. WASCHER, Assistant Director STEPHEN C. SCHEMERING, Deputy Director MARY M. WEST, Assistant Director HERBERT A. BIERN, Senior Associate Director ALICE PATRICIA WHITE, Assistant Director ROGER T. COLE, Senior Associate Director GLENN B. CANNER, Senior Adviser WILLIAM A. RYBACK, Senior Associate Director DAVID S. JONES, Senior Adviser GERALD A. EDWARDS, JR., Associate Director THOMAS D. SIMPSON, Senior Adviser STEPHEN M. HOFFMAN, JR., Associate Director JAMES V. HOUPT, Associate Director DIVISION OF MONETARY AFFAIRS JACK P. JENNINGS, Associate Director MICHAEL G. MARTINSON, Associate Director VINCENT R. REINHART, Director DAVID E. LINDSEY, Deputy Director MOLLY S. WASSOM, Associate Director HOWARD A. AMER, Deputy Associate Director BRIAN F. MADIGAN, Deputy Director NORAH M. BARGER, Deputy Associate Director WILLIAM C. WHITESELL, Deputy Associate Director BETSY CROSS, Deputy Associate Director JAMES A. CLOUSE, Assistant Director DEBORAH P. BAILEY, Assistant Director WILLIAM B. ENGLISH, Assistant Director BARBARA J. BOUCHARD, Assistant Director RICHARD D. PORTER, Senior Adviser ANGELA DESMOND, Assistant Director JAMES A. EMBERSIT, Assistant Director CHARLES H. HOLM, Assistant Director WILLIAM G. SPANIEL, Assistant Director DAVID M. WRIGHT, Assistant Director WILLIAM C. SCHNEIDER, JR., Project Director, National Information Center Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A61 MARK W. OLSON DONALD L. KOHN BEN S. BERNANKE DIVISION OF CONSUMER DIVISION OF RESERVE BANK OPERATIONS AND COMMUNITY AFFAIRS AND PAYMENT SYSTEMS DOLORES S. SMITH, Director LOUISE L. ROSEMAN, Director GLENN E. LONEY, Deputy Director PAUL W. BETTGE, Associate Director SANDRA F. BRAUNSTEIN, Assistant Director JEFFREY C. MARQUARDT, Associate Director MAUREEN P. ENGLISH, Assistant Director KENNETH D. BUCKLEY, Assistant Director ADRIENNE D. HURT, Assistant Director JOSEPH H. HAYES, JR., Assistant Director IRENE SHAWN MCNULTY, Assistant Director EDGAR A. MARTINDALE III, Assistant Director MARSHA W. REIDHILL, Assistant Director OFFICE OF JEFF J. STEHM, Assistant Director STAFF DIRECTOR FOR MANAGEMENT JACK K. WALTON II, 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 BILLY J. SAULS, Assistant Director DONALD A. SPICER, Assistant Director DIVISION OF INFORMATION TECHNOLOGY 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 SHARON L. MOWRY, Assistant Director RAYMOND ROMERO, Assistant Director ROBERT F. TAYLOR, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 Federal Reserve Bulletin • January 2003 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman SUSAN SCHMIDT BIES EDWARD M. GRAMLICH MICHAEL H. MOSKOW BEN S. BERNANKE JACK GUYNN MARK W. OLSON J. ALFRED BROADDUS, JR. DONALD L. KOHN ROBERT T. PARRY ROGER W. FERGUSON, JR. ALTERNATE MEMBERS THOMAS M. HEONIG CATHY E. MINEHAN JAMIE B. STEWART, JR. JERRY L. JORDAN WILLIAM POOLE STAFF VINCENT R. REINHART, 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 DAVID J. STOCKTON, Economist MARK S. SNIDERMAN, Associate Economist THOMAS A. CONNORS, Associate Economist DAVID W. WILCOX, Associate Economist DINO KOS, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL DAVID A. SPINA, First District ALAN G. MCNALLY, Seventh District DAVID A. COULTER, Second District DAVID W. KEMPER, Eighth District RUFUS A. FULTON, JR., Third District JERRY A. GRUNDHOFER, Ninth District MARTIN G. MCGUINN, Fourth District CAMDEN R. FINE, Tenth District FREDERICK L. GREEN III, Fifth District GAYLE M. EARLS, Eleventh District L. PHILLIP HUMANN, Sixth District MICHAEL E. O'NEILL, Twelfth District JAMES ANNABLE, Co-Secretary WILLIAM J. KORSVIK, Co-Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CONSUMER ADVISORY COUNCIL DOROTHY BROADMAN, Falls Church, Virginia, Chairman RONALD A. REITER, San Francisco, California, Vice Chairman ANTHONY S. ABB ATE, Saddlebrook, New Jersey PATRICK LIDDY, Cincinnati, Ohio JANIE BARRERA, San Antonio, Texas Rum MAKER, Rochester, New York KENNETH BORDELON, Baton Rouge, Louisiana OSCAR MARQUIS, Park Ridge, Illinois TERESA A. BRYCE, St. Louis, Missouri PATRICIA MCCOY, Cambridge, Massachusetts 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 WM. FIRSTENBERGER, Pittsfield, New Hampshire AGNES BUNDY SCANLAN, Boston, Massachusetts THOMAS FITZGIBBON, Chicago, Illinois RUSSELL W. SCHRADER, San Francisco, California FRANK TORRES, III, Washington, District of Columbia LARRY HAWKINS, Houston, Texas EARL JAROLIMEK, Fargo, North Dakota HUBERT VAN TOL, Sparta, Wisconsin THRIFT INSTITUTIONS ADVISORY COUNCIL KAREN L. MCCORMICK, Port Angeles, Washington, President WILLIAM J. SMALL, Defiance, Ohio, Vice President MICHAEL J. BROWN, SR., Ft. Pierce, Florida D. TAD LOWREY, Brea, California JOHN B. Dicus, Topeka, Kansas GEORGE W. NISE, Philadelphia, Pennsylvania RICHARD J. DRISCOLL, Arlington, Texas KEVIN E. PIETRINI, Virginia, Minnesota CURTIS L. HAGE, Sioux Falls, South Dakota ROBERT F. STOICO, Swansea, Massachusetts OLAN O. JONES, JR., Kingsport, Tennessee DAVID L. VIGREN, Rochester, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • January 2003 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS, MS-127, Board Rates for subscribers outside the United States are as follows of Governors of the Federal Reserve System, Washington, DC and include additional air mail costs: 20551, or telephone (202) 452-3244, or FAX (202) 728-5886. You Federal Reserve Regulatory Service, $250.00 per year. may also use the publications order form available on the Board's Each Handbook, $90.00 per year. World Wide Web site (http://www.federalreserve.gov). When a FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL charge is indicated, payment should accompany request and be COMPUTERS. CD-ROM; updated monthly. made payable to the Board of Governors of the Federal Reserve Standalone PC. $300 per year. System or may be ordered via Mastercard, Visa, or American Network, maximum 1 concurrent user. $300 per year. Express. Payment from foreign residents should be drawn on a Network, maximum 10 concurrent users. $750 per year. 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, 2001. 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 1996--2000 March 2002 352 pp. $25.00 Businesses Series on the Structure of the Federal Reserve System The Board of Governors of the Federal Reserve System SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF The Federal Open Market Committee CHARTS. Weekly. $30.00 per year or $.70 each in the United Federal Reserve Bank Board of Directors States, its possessions, Canada, and Mexico. Elsewhere, Federal Reserve Banks $35.00 per year or $.80 each. A Consumer's Guide to Mortgage Lock-Ins REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Settlement Costs RESERVE SYSTEM. A Consumer's Guide to Mortgage Refinancings ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Home Mortgages: Understanding the Process and Your Right Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. to Fair Lending Vol. II (Irregular Transactions). 1969. 116 pp. Each volume How to File a Consumer Complaint about a Bank (also available $5.00. in Spanish) GUIDE TO THE FLOW OF FUNDS ACCOUNTS. January 2000. In Plain English: Making Sense of the Federal Reserve 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. When Is Your Check Not a Check? 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

A65 STAFF STUDIES: Only Summaries Printed in the 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- BULLETIN ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING Studies and papers on economic and financial subjects that are of PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, by Stephen A. Rhoades. July 1994. 37 pp. general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out of print, but photocopies of them are available. Staff 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- Studies 165-174 are available on line at www.federalreserve.gov/ LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. pubs/staffstudies. Requests to obtain single copies of any paper or Lowrey. December 1997. 17 pp. to be added to the mailing list for the series may be sent to Publications. 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. 175. THE FUTURE OF RETAIL ELECTRONIC PAYMENTS SYSTEMS: Rhoades. February 1992. 11 pp. INDUSTRY INTERVIEWS AND ANALYSIS, Federal Reserve 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by Staff, for the Payments System Development Committee, James T. Fergus and John L. Goodman, Jr. July 1993. Federal Reserve System. December 2002. 27 pp. 20 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Federal Reserve Bulletin • January 2003 Maps of the Federal Reserve System 1 J MINNEAPOLIS • BOSTON J•i WHM™ft _ _®Nrvv YORK m \I)I I I'HIA WM - M m ST. LOLIS 8 J i B i g i l i B M »l 11 • AN AN I A jgjlfig^MI \I.\SKA 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

A67 1-A 2-B 3-C 4-D 5-E MH Pittsburgh Baltimoje * MD NY V l lj Y PA VT NC NH Buffalo • Cincinnati •Charlotte MA ^ / KY 6* ^ R, BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 7-G 8-H •Nash\ille 7 • wt Detroit' ^ Louisville IA MO J - +- IN I-A Jackson \ ille --••VV •Memphis y New Orleans FT Little / Rock < MS Vli^mi ATLANTA CHICAGO ST. Louis 9-1 MT N£> . MN • Hele l|pl nflMpar Ml m wi sn MINNEAPOLIS 10-J 12-L • • 1• IM Omaha® ^ MO • Denver NM ^ Oklahoma C'ii* OK. KANSAS CITY 11-K TX eCity iSHMbPW. • 1 " I-:I Pas 0 \ J— r ^ —^ \ Houston San Antonio DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Federal Reserve Bulletin • January 2003 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 James J. Norton Cathy E. Minehan Samuel O. Thier Paul M. Connolly NEW YORK* 10045 Peter G. Peterson William J. McDonough John E. Sexton Jamie B. Stewart, Jr. Buffalo 14240 Marguerite D. Hambleton Barbara L. Walter1 PHILADELPHIA 19105 Glenn A. Schaeffer Anthony M. Santomero Ronald J. Naples William H. Stone, Jr. CLEVELAND* 44101 Robert W. Mahoney Jerry L. Jordan Charles E. Bunch Sandra Pianalto Cincinnati 45201 To be announced Barbara B. Henshaw Pittsburgh 15230 Roy W. Haley Robert B. Schaub RICHMOND* 23219 Wesley S. Williams, Jr. J. Alfred Broaddus, Jr. Irwin Zazulia Walter A. Varvel Baltimore 21203 Owen E. Herrnstadt William J. Tignanelli1 Charlotte 28230 Michael A. Almond Dan M. Bechter1 ATLANTA 30303 Paula Lovell Jack Guynn David M. Ratcliffe Patrick K. Barron James M. McKee1 Birmingham 35242 W. Miller Welborn Lee C. Jones Jacksonville 32231 William E. Flaherty Christopher L. Oakley Miami 33152 Brian E. Keeley James T. Curry III Nashville 37203 Whitney Johns Martin Melvyn K. Purcell1 New Orleans 70161 Dave Dennis Robert J. Musso1 CHICAGO* 60690 Robert J. Darnall Michael H. Moskow W. James Farrell Gordon R. G. Werkema Detroit 48231 Timothy D. Leuliette Glenn Hansen ST. LOUIS 63166 Charles W. Mueller William Poole Walter L. Metcalfe, Jr. W. LeGrande Rives Little Rock 72203 To be announced Robert A. Hopkins Louisville 40232 To be announced Thomas A. Boone Memphis 38101 To be announced Martha Perine Beard MINNEAPOLIS 55480 Ronald N. Zwieg Gary H. Stern Linda Hall Whitman JJaammeess MM.. LLyyoonn 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 A.F. Raimondo Steven D. Evans DALLAS 75201 Ray L. Hunt Robert D. McTeer, Jr. Patricia M. Patterson Helen E. Holcomb El Paso 79999 To be announced Sammie C. Clay Houston 77252 To be announced Robert Smith III1 San Antonio 78295 To be announced James L. Stull1 SAN FRANCISCO .... 94120 Nelson C. Rising Robert T. Parry George M. Scalise John F. Moore Los Angeles 90051 William D. Jones Mark L. Mullinix2 Portland 97208 Karla S. Chambers Richard B. Hornsby Salt Lake City 84125 H. Roger Boyer Andrea P. Wolcott Seattle 98124 Mic R. Dinsmore D. Kerry 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

A69 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, mail stop 127, Board of Govcontains Regulations B, C, E, G, M, P, Z, AA, BB, and ernors of the Federal Reserve System, Washington, DC DD, and associated materials. 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, Mail Stop 127, Board are constructed. It lists each flow series in the Board's of Governors of the Federal Reserve System, Washingflow of funds publication, "Flow of Funds Accounts of ton, DC 20551. the United States" (the Z.l quarterly statistical release), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Bulletin • January 2003 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