Federal Reserve Bulletin, 2003-07

Volume 89 • Number 7 • July 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 • Marianne M. Emerson • Jennifer J. Johnson • Karen H. Johnson • Stephen R. Malphrus • J. Virgil Mattingly, Jr. • Vincent R. Reinhart • Louise L. Roseman • 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 309 HOUSEHOLD FINANCIAL MANAGEMENT: Publication of transition rules for collecting and THE CONNECTION BETWEEN KNOWLEDGE reporting information on home mortgage AND BEHAVIOR lending Consumer financial literacy has become a grow- Proposal to amend Regulation K ing concern to educators, community groups, Proposal to modify method for imputing pricedbusinesses, government agencies, and policyservice income makers. Correspondingly, there has been an increase in the number and types of financial Launch of Systemwide financial education education programs available to households. initiative Many of these programs focus on providing Expansion of operating hours for online Fedinformation to consumers and operate under the wire® Funds Service implicit assumption that increases in information and knowledge will lead to changes in Tentative FOMC meeting schedule for 2004 financial-management practices and behaviors. Unveiling of new $20 note This article focuses on four financialmanagement activities—cash-flow management, Issuance of host state loan-to-deposit ratios by credit management, saving, and investment. banking agencies Data from the Surveys of Consumers are used Panel discussion on credit management to analyze some of the connections between knowledge and behavior—what consumers Interagency effort to reduce regulatory burden know and what they do. Overall, financial Minutes of Board discount rate meetings knowledge was statistically linked to financial practices: Those who knew more were more Meeting of the Consumer Advisory Council likely to engage in recommended financial Enforcement actions practices. In addition, certain types of financial knowledge were statistically significant for Termination of enforcement actions particular financial practices—knowing about Staff changes credit, saving, and investment was correlated with higher probabilities of engaging in recom- 331 LEGAL DEVELOPMENTS mended credit, saving, and investment practices respectively. Although the causality could flow Various bank holding company, bank service in either direction, this finding indicates that corporation, and bank merger orders; and pendincreases in knowledge may lead to improve- ing cases. ments in financial-management practices. Thus, financial education in combination with skill- A1 FINANCIAL AND BUSINESS STATISTICS building and audience-targeted motivational These tables reflect data available as of strategies may be one way to elicit the desired May 28, 2003. behavioral changes in financial-management practices. A3 GUIDE TO TABLES A4 Domestic Financial Statistics 323 ANNOUNCEMENTS A42 Domestic Nonfinancial Statistics A44 International Statistics Nominations sought for Consumer Advisory Council A57 GUIDE TO SPECIAL TABLES AND Amendment to Regulation CC STATISTICAL RELEASES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Household Financial Management: The Connection between Knowledge and Behavior Marianne A. Hilgert and Jeanne M. Hogarth, of the mid-1990s.2 Many of these programs focus on pro- Board's Division of Consumer and Community viding information to consumers and operate under Affairs and Sondra G. Beverly, of the University of the implicit assumption that increases in information Kansas, prepared this article. and knowledge will lead to changes in financialmanagement practices and behaviors. Whether that is Across the decade of the 1990s to the present, the the case is the province of behavioral economics, issue of financial education has risen on the agendas which offers its blend of psychological and economic of educators, community groups, businesses, govern- insights into household financial management. ment agencies, and policymakers.1 This increased Behavioral economics acknowledges the role that interest in financial education has been prompted by psychological characteristics (such as procrastinathe increasing complexity of financial products and tion, regret, risk aversion, compulsiveness, generosthe increasing responsibility on the part of individu- ity, altruism, and peer pressure) play in household als for their own financial security. Well-informed, economic decisions. Thus, behavioral economics financially educated consumers are better able to offers a framework for studying behaviors that seem make good decisions for their families and thus are inconsistent or irrational—for example, consumers in a position to increase their economic security and who hold money in a savings account earning interest well-being. Financially secure families are better able at 2 percent while carrying balances on credit cards to contribute to vital, thriving communities and and paying 18 percent interest.3 thereby further foster community economic develop- This article explores the connection between ment. Thus, financial education is important not only knowledge and behavior—what consumers know to individual households and families but to their and what they do—focusing on four financialcommunities as well. management activities: cash-flow management, credit Knowledgeable consumers who make informed management, saving, and investment. Data are from choices are essential to an effective and efficient marketplace. In classical economics, informed con- 2. Several researchers and organizations have developed catalogs of programs. For examples, see Lois A. Vitt, Carol Anderson, Jamie sumers provide the checks and balances that keep Kent, Deanna M. Lyter, Jurg K. Siegenthaler, and Jeremy unscrupulous sellers out of the market. For instance, Ward, Personal Finance and the Rush to Competence: Financial consumers who know the full range of mortgage Literacy Education in the U.S. (Fannie Mae Foundation, 2000) (www.fanniemaefoundation.org/programs/pdf/rep_finliteracy.pdf); interest rates and terms in the marketplace, who Katy Jacob, Sharyl Hudson, and Malcolm Bush, Tools For Survival: understand how their credit-risk profile and personal An Analysis of Financial Literacy Programs for Lowersituation fit with those rates and terms, and, conse- Income Families (Chicago, 111.: Woodstock Institute, 2000); Jump$tart Coalition, Jump$tart Personal Finance Clearinghouse quently, who can determine which mortgage is best (www.jumpstart.org/mdb/jssearch.cfm); National Endowment for for them make it difficult for unfair or deceptive Financial Education, "Economic Independence Clearinghouse" lenders to gain a foothold in the marketplace. (2001) (www.nefe.org/amexeconfund/index.html); Neighborhood Reinvestment Corporation Neighbor Works®, "Annotated Refer- Amid growing concerns about consumers' finanence Guide for the Neighbor Works® Campaign for Home Ownercial literacy, the number and types of financial edu- ship 2002" (August 2001) (www.nw.org/network/pubsAndMedia/ cation programs have grown dramatically since the publications/catalog/pubs/annoRefGuide.pdf). 3. Sendhil Mullainathan and Richard H. Thaler, "Behavioral Economics," National Bureau of Economic Research Working Paper NOTE. Chris Anguelov, of the Board's Division of Consumer and no. w7948 (National Bureau of Economic Research, October 2000) Community Affairs, assisted with additional analysis of the Survey of (www.nber.org/papers/w7948); Amos Tversky and Daniel Kahneman, Consumer Finances data. Jane Schuchardt and Sommer Clarke, of the "Rational Choice and the Framing of Decisions," Journal of Busi- U.S. Department of Agriculture, and Manisha Sharma, of the Board's ness, vol. 59 (October 1986), pp. S251-278; Amos Tversky and Division of Consumer and Community Affairs, contributed to the Daniel Kahneman, "Loss Aversion in Riskless Choice: A Referencedevelopment of the survey design and questionnaire. Dependent Model," Quarterly Journal of Economics, vol. 106 1. See Sandra Braunstein and Carolyn Welch, "Financial Literacy: (November 1991), pp. 1039-61; Thomas Gilovich, Dale Griffin, and An Overview of Practice, Research, and Policy," Federal Reserve Daniel Kahneman, eds., Heuristics and Biases: The Psychology of Bulletin, vol 87 (November 2002), pp 445-57. Intuitive Judgement (Cambridge: Cambridge University Press, 2002). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 Federal Reserve Bulletin • July 2003 the University of Michigan's monthly Surveys of Financial behavior and product variables used to Consumers conducted in November and December analyze cash-flow management, credit management, saving, and investment practices 2001 (see Appendix A: Survey Data). Also, data from the Survey of Consumer Finances (SCF) are used for purposes of comparison.4 Financial behavior or product Cash-flow management HOUSEHOLD FINANCIAL-MANAGEMENT Have checking account Pay all bills on time PRACTICES Have financial recordkeeping system or track expenses Reconcile checkbook every month Use a spending plan or budget Households in the Surveys of Consumers reported on Credit management eighteen financial-management behaviors, ranging Have credit card from very basic money management skills (tracking Pay credit card balances in full each month Review credit reports expenses, paying bills on time) to more sophisticated Compare offers before applying for a credit card ones (diversifying investments). They also provided Saving information on their use of thirteen financial prod- Have savings account Have emergency fund ucts. These ranged from savings and checking Save or invest money out of each paycheck' Save for long-term goals such as education, car, accounts to credit cards, mortgages, home equity or home loans, and investments. To look at the different Have certificates of deposit types of financial practices, measures of financial- Investment Have money spread over different types management behaviors and financial product owner- of investments ship were combined.5 Practices were categorized as Have any retirement plan/account1 Have any investment account . cash-flow management, credit management, saving, Have mutual funds Have 401(k) plan or company pension plan2 investment, and other. Table 1 lists the behaviors or Have IRA/Keogh Calculated net worth in past two years products used to analyze each type of practice. Participate in employer's 401(k) retirement plan1 Have public stock A fairly large percentage of individuals reported Put money into other retirement plans such as an IRA3 what are considered "good" cash-flow management Have bonds practices: 89 percent of households had a checking Other financial experience j Own home account, 88 percent paid all their bills on time, and Bought a house 75 percent reconciled their checkbook every month. fDo own taxes each year However, fewer than half reported using a spending Often or always plan and set goals for financial future ... Refinanced mortgage or loan for home improvements plan or budget. For the credit management practices, Read about money management although nearly four-fifths of respondents had a credit 1. Not able to control for employment status because these data are not available in the data set. card, only one-third compared offers before applying 2. Could be either defined contribution or defined benefit plan. for a card. As to saving practices, the data show 3. Only for respondents younger than 65. SOURCE. Surveys of Consumers, November and December 2001. that while 80 percent and 63 percent had a savings account and an emergency fund, respectively, only investment accounts, less than half (46 percent) said 39 percent were saving for long-term goals, such as that they had mutual funds, about one-fourth reported for education, a car, or a home. There was also a wide holding individual stocks, and about one-fifth said range in the investment practices reported by housethat they put money in other retirement accounts.6 Of holds. For example, although three-fifths (63 percent) all the behaviors, reading about money management reported having retirement accounts—pensions, was the least frequently reported (20 percent). 401(k), or IRA plans—and half (52 percent) had Financial Practices Indexes 4. The SCFs are triennial surveys sponsored by the Federal Reserve and provide detailed information on the financial characteristics of U.S. households, particularly families' assets and liabilities. For To characterize the extent of a household's participadetails on the SCF, see Ana M. Aizcorbe, Arthur B. Kennickell, and tion in each type of financial-management activity, an Kevin B. Moore, "Recent Changes in U.S. Family Finances: Evidence from the 2001 Survey of Consumer Finances," Federal Reserve Bulletin, vol. 89 (January 2003), pp. 1-32. The definitions of house- 6. To determine the proportion of respondents contributing to hold in the SCF and in the Surveys of Consumers are consistent retirement accounts, we included only individuals less than 65 years enough to allow for comparisons. In this article, we use the terms old because we assume that individuals 65 or older no longer contribfamily and household interchangeably. ute to a retirement account. Although we would also like to have made 5. The decision to own a financial product can itself be considered this calculation conditional on employment status, this variable was a financial behavior. not available in the data set. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Household Financial Management: The Connection between Knowledge and Behavior 311 1. Distribution of levels of index scores, some families do not follow recommended finanby type of financial practice cial practices. In fact, surveys of youth and adults in the United States reveal low scores for economic, financial, and consumer literacy.8 Results from the High Jump$tart Coalition's biennial financial literacy tests of high school seniors show that students correctly answered 58 percent, 52 percent, and 50 percent of Medium the questions in 1997, 2000, and 2002 respectively.9 | Adults taking the same test scored somewhat better but missed some basic insurance and credit questions. Other studies find that low-income consumers, those with less education, and African Americans and Low Hispanics tend to have below-average financial literacy scores.10 Some have argued that some of the Cash-flow Credit Saving Investment survey questions may be ambiguous or irrelevant, management management and it has been suggested that respondents' knowledge may be greater than the scores indicate. NOTE. If households reported fewer than 25 percent of the practices, they were classified as "low"; households reporting between 25 percent and 70 per- Research also finds a correlation between financial cent of the practices were classified as "medium"; and those reporting more than 70 percent of the practices were classified as "high." knowledge and behavior, although the direction of SOURCE. Surveys of Consumers, November and December 2001. the causality is unclear. Those who score higher on financial literacy tests are more likely to follow recindex was constructed in which levels of cash-flow ommended financial practices.11 Compared with management, credit management, saving, and invest- those who have less financial knowledge, those with ment practices were classified as "high," "medium," more financial knowledge are also more likely to or "low." If households reported fewer than 25 per- engage in recommended financial behaviors—such cent of the practices, they were classified as "low"; as paying all bills on time, reconciling the checkbook households reporting between 25 percent and 70 per- every month, and having an emergency fund. This cent of the practices were classified as "medium"; correlation does not necessarily mean, however, that and those reporting more than 70 percent of the an increase in knowledge improves behavior. Instead, practices, were classified as "high."7 (For detailed the causality may be reversed in that people may gain information on how the indexes were constructed, knowledge as they save and accumulate wealth, or see Appendix B: Indexes of Financial Practices.) there may be a third variable, for example, family experiences and economic socialization, that affects Chart 1 shows the proportion of respondents scorboth knowledge and behavior. Although most studies ing in the high, medium or low groups for each index. The cash-flow management index had the largest percentage of respondants in the high group (66 percent), followed by the credit management index (45 percent), the saving index (33 percent), and 8. For a sampling of surveys, see Consumer Federation of America, the investment index (19 percent). These initial find- "U.S. Consumer Knowledge: The Results of a Nationwide Test" ings suggest that financial behaviors may be hierar- (Washington, D.C.: Consumer Federation of America, 1990); CFA, "High School Student Consumer Knowledge: A Nationwide Test," chical, that is, that one may precede another. For (Washington, D.C.: Consumer Federation of America, 1991); CFA, example, individuals who are cash-constrained may "College Student Consumer Knowledge: The Results of a Nationwide engage in cash-flow management practices and obtain Test" (Washington, D.C.: Consumer Federation of America, 1993); and CFA, "American Consumers Get Mixed Grades on Consumer credit but may not save and invest. Literacy Quiz" (Washington, D.C.: Consumer Federation of America, 1998). 9. Jump$tart Coalition for Personal Financial Literacy, "From Bad to Worse: Financial Literacy Drops Further among 12th Graders," Household Financial Knowledge press release, April 23, 2002. 10. Lawrence J. Kotlikoff and B. Douglas Bernheim, "Household Lack of knowledge about principles of financial man- Financial Planning and Financial Literacy," in Essays on Saving, Bequests, Altruism, and Life-cycle Planning (Cambridge, Mass.: MIT agement and financial matters could explain why Press, 2001). 11. Jeanne M. Hogarth and Marianne A. Hilgert, "Financial Knowledge, Experience and Learning Preferences: Preliminary 7. Households that did not pay their bills on time were classified as Results from a New Survey on Financial Literacy," Consumer Interlow for cash-flow management regardless of any other practices they ests Annual, vol. 48 (2002) (www.consumerinterests.org/public/ reported for that category. articles/FinancialLiteracy-02.pdf). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 Federal Reserve Bulletin • July 2003 2. Average financial knowledge score, by financial practice index and index level Percent Financial knowledge score, by subsection1 Financial practice index Overall and index level score1 Credit Saving Investment Mortgages Other management Cash-flow management index Low 53 63 50 Medium 62 81 57 High 66 84 59 Credit management index Low 48 66 48 Medium 61 80 57 High 69 86 60 Saving index Low 54 74 54 Medium 61 81 57 High 73 86 61 Investment index Low 50 74 53 Medium 67 83 60 High 80 90 62 Memo: Average financial knowledge score, all households 63 81 57 NOTE. For definitions of index levels, see note to chart 1. 1. Score on quiz administered as part of the November and December Surveys of Consumers (see box, "What's Your Financial IQ?"). do not analyze causality, one study suggests that CASH-FLOW MANAGEMENT increases in knowledge do indeed increase retirement saving.12 In addition to knowledge and experience, Survey Results public policies that increase incomes, tax incentives for "good" financial management (for example, sav- Perhaps the most basic financial practice is to pay ing for retirement), positive childhood experiences, bills on time, and 88 percent of households reported social norms, and attitudes toward spending all may following this practice. Consistent with the notion of play a role in households' financial-management a behavioral hierarchy, however, those with low behaviors. scores on the credit management, saving, and invest- While most studies have looked at financial knowl- ment indexes were less likely to report paying bills edge at the aggregate level, this article explores the on time (table 3) than those with medium or high linkage between specific financial behaviors and scores on those indexes. knowledge about specific financial topics. The mea- Data from the 2001 SCF provide some additional sure of knowledge reported here is based on a quiz insight with respect to the timely payment of bills. In containing twenty-eight true-false questions that was the SCF, an estimated 93 percent of all households in part of the Surveys of Consumers (see box, "What's the United States reported having no payments in the Your Financial IQ," and table 2). The quiz covered past year that were late sixty days or more. The cash-flow management, general credit management, proportion of households in the SCF that did not have saving, investment, mortgages, and a broad category payments sixty days late was related to income: of other financial-management topics. Overall, house- 87 percent of those in the bottom fifth of the income holds correctly answered two-thirds (67 percent) of distribution reported no late payments compared with the questions. Consumers were most knowledgeable 99 percent of those in the top fifth. about mortgages (scoring about 80 percent) and least Besides encouraging consumers to pay bills on knowledgeable about the "other" topics (scoring time, financial educators typically encourage them to 57 percent). Most of these scores are in line with make written budgets and to regularly compare actual similar financial knowledge quizzes. expenditures with planned expenditures.13 There is 13. Barbara O'Neill, "Twelve Key Components of Financial Well- 12. See Kotlikoff and Bernheim, "Household Financial Planning ness," Journal of Family and Consumer Sciences, vol. 94, no. 4 and Financial Literacy." (2002), pp. 53-58. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Household Financial Management: The Connection between Knowledge and Behavior 313 What's Your Financial IQ? Quiz administered as part of the Surveys of Consumers Percentage of respondents Correct answering Question answer correctly Credit Creditors are required to tell you the APR that you will pay when you get a loan. True 92 If you expect to carry a balance on your credit card, the APR is the most important thing to look at when comparing credit card offers. True 84 Your credit report includes employment data, your payment history, any inquiries made by creditors, and any public record information. True 81 The finance charge on your credit card statement is what you pay to use credit. True 69 Using extra money in a bank savings account to pay off high interest rate credit card debt is a good idea. True 68 Your credit rating is not affected by how much you charge on your credit cards. False 60 If your credit card is stolen and someone uses it before you report it missing, you are only responsible for $50, no matter how much they charge on it. True 50 If you have any negative information on your credit report, a credit repair agency can help you remove that information. False 30 If you are behind on debt payments and go to a credit counseling service, they can get the federal government to apply your income tax refund to pay off your debts. False 22 Saving You should have an emergency fund that covers two to six months of your expenses. True 94 If you have a savings account at a bank, you may have to pay taxes on the interest you earn. True 86 If you buy certificates of deposit, savings bonds, or Treasury bills, you can earn higher returns than on a savings account, with little or no added risk. True 74 With compound interest, you earn interest on your interest, as well as on your principal. True 72 Whole life insurance has a savings feature while term life insurance does not. True 60 Investment The earlier you start saving for retirement, the more money you will have because the effects of compounding interest increase over time. True 92 A stock mutual fund combines the money of many investors to buy a variety of stocks. True 75 Employers are responsible for providing the majority of funds that you will need for retirement. False 72 Over the long term, stocks have the highest rate of return on money invested. True 56 Mutual funds pay a guaranteed rate of return. False 52 All investment products bought at your bank are covered by FDIC insurance. False 33 Mortgages When you use your home as collateral for a loan, there is no chance of losing your home. False 91 You could save thousands of dollars in interest costs by choosing a 15-year rather than a 30-year mortgage. True 84 If the interest rate on an adjustable-rate mortgage loan goes up, your monthly mortgage payments will also go up. True 77 Repeatedly refinancing your home mortgage over a short period of time results in added fees and points that further increase your debt. True 72 Other Making payments late on your bills can make it more difficult to take out a loan. True 94 Your bank will usually call to warn you if you write a check that would overdraw your account. False 62 The cash value of a life insurance policy is the amount available if you surrender your life insurance policy while you're still alive. True 56 After signing a contract to buy a new car, you have three days to change your mind. False 18 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 Federal Reserve Bulletin • July 2003 3. Percentage of households reporting various financial practices, by financial practice index and index level Cash-flow management index Credit management index Saving index Investment index Financial practice Low Medium High Low Medium High Low Medium High Low Medium High Cash-flow management Have checking account 59 82 97 50 92 96 72 93 97 74 96 100 Pay all bills on time 0 100 100 61 88 95 72 91 98 78 92 98 Have financial recordkeeping system or track expenses 46 43 97 45 80 86 59 80 93 68 81 94 Reconcile checkbook every month 31 25 88 30 71 73 50 72 75 57 71 78 Use a spending plan or budget ... 29 9 62 30 41 55 37 45 55 46 46 47 Credit management Have credit card 48 74 86 0 83 95 58 82 92 58 88 98 Pay credit card balances in full each month 13 43 57 0 34 74 20 49 71 22 56 82 Review credit reports 44 54 61 0 39 91 44 58 68 48 62 67 Compare offers before applying for a credit card 20 33 39 0 14 64 28 36 39 29 39 38 Saving Have savings account 63 76 84 51 79 88 42 91 97 63 90 88 Have emergency fund 25 52 74 23 59 78 8 71 97 35 74 93 Save or invest money out of each paycheck1 16 42 57 24 44 60 17 46 77 27 58 69 Save for long-term goals2 13 27 47 16 31 51 4 23 84 25 40 63 Have certificates of deposit 16 29 33 18 27 36 2 22 62 10 35 58 Investment Have money spread over different types of investments 21 47 61 14 49 67 17 53 83 5 74 99 Have any investment account 22 48 59 12 46 69 22 52 77 5 71 99 Have mutual funds 24 42 51 18 38 61 18 45 69 5 59 96 Have 401(k) plan or company pension plan3 30 42 48 27 38 56 28 44 59 24 57 57 Have IRA/Keogh 24 42 47 22 37 54 19 41 63 5 52 93 Calculated net worth in past two years 14 34 46 9 34 53 17 36 61 14 42 85 Participate in employer's 401(k) retirement plan1 18 34 42 15 32 48 19 36 53 17 47 54 Have public stock 15 25 25 10 21 30 13 21 36 0 26 64 Put money into other retirement plans such as an IRA4 8 17 26 4 16 32 4 18 41 1 21 66 Have bonds 3 6 6 2 5 7 2 7 7 0 4 21 Other financial experience Own home 53 73 79 53 77 78 60 75 86 59 82 89 Bought a house 45 68 79 33 75 80 55 75 82 54 78 94 Do own taxes each year 32 38 43 25 40 44 33 45 41 37 41 44 Often or always plan and set goals for financial future 26 24 42 18 32 45 23 30 54 30 34 52 Refinanced mortgage or loan for home improvements 16 33 39 7 35 41 22 37 42 18 39 56 Read about money management .. 12 16 23 4 17 26 9 17 32 8 19 44 MEMO: Number of households 119 224 661 114 436 454 264 404 336 370 445 189 Percentage of households5 12 22 66 11 43 45 26 40 33 37 44 19 NOTE. The table reads: "Of all households with a low score on the cash- 2. Such as for education, for a car, or for a home. flow management index, 59 percent have a checking account." For definitions 3. Could be either defined contribution or defined benefit plan. of index levels, see note to chart 1. 4. Only for respondents younger than 65. 1. Not able to control for employment status because these data are not avail- 5. Components may not sum to 100 because of rounding. able in the data set. SOURCE. Surveys of Consumers, November and December 2001. evidence that many families instead use informal There is also evidence that families—at all income mental budgets rather than written budgets; use short- levels—have trouble resisting spending temptaterm budgets (that is, budgets covering one month or tions.15 But existing research has used small samples, less); and prefer simpler techniques (for example, automatic bill-paying or envelope accounting).14 and Mary Winter, "Cash Flow Management: A Framework of Daily Family Activities," Financial Counseling and Planning, vol. 10, no. 1 (1999), pp. 1-12. 14. Elizabeth P. Davis and Ruth Ann Carr, "Budgeting Practices 15. Sondra G. Beverly, Jennifer L. Romich, and Jennifer Tescher, over the Life Cycle," Journal of Consumer Education, vol. 10 (1992), "Linking Tax Refunds and Low-Cost Bank Accounts: A Social Develpp. 27-31; Glenn Muske and Mary Winter, "An In-Depth Look at opment Strategy for Low-Income Families?" Social Development Family Cash-Flow Management Practices," Journal of Family and Issues (forthcoming); Arthur B. Kennickell, Martha Starr-McCluer, Economic Issues, vol. 22 (Winter 2001), pp. 353-72; Glenn Muske and Annika E. Sunden, "Saving and Financial Planning: Some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Household Financial Management: The Connection between Knowledge and Behavior 315 and more research on budgeting and cash-flow man- Knowledge and Cash-Flow Management agement is needed. Behaviors Data from the Surveys of Consumers reveal that, overall, fewer than one-half (46 percent) of all house- Households classified as low on the cash-flow manholds used a spending plan or budget. Results for the agement index had lower average financash-flow management index show that fewer than cial knowledge scores than households classified as one-third of the households that scored low on the medium or high. Those in the low group had an index reported using a spending plan or budget, average overall knowledge score of 55 percent, comalthough as shown in table 3, proportions were larger pared with 66 percent and 69 percent for those in the for households with low scores on other indexes, medium and high groups respectively (see table 2). especially saving and investment. The low-index group also had lower scores on the A low-cost checking or savings account is recom- credit management, saving, investment, mortgage, mended as a budgeting and financial-management and "other" subsections of the quiz. In general, those tool for several reasons. It reduces the cost of routine classified as high on the cash-flow management index financial transactions, helps individuals develop posi- had higher financial knowledge scores than those tive credit histories, and may facilitate asset accumu- classified as low and medium, both overall and for lation by providing a secure and somewhat "out- each of the subsections. of-reach" place for storing money.16 Despite the advantages of owning a bank account, however, data from the SCF indicate that about 9 percent of all U.S. CREDIT MANAGEMENT families were "unbanked" in 2001. The percentages were much higher for low-income, younger, non- Survey Results white, and Hispanic families. The overall percentage of unbanked families has remained fairly stable in Three common indicators of credit management are a recent years after a marked increase in account own- household's debt-payment-to-income ratio, the timeership between 1992 and 1995.17 liness of credit card payments, and payment in full of According to the Surveys of Consumers, 89 per- credit card balances. In 2001, according to the SCF, cent of all U.S. households have a checking account. 11 percent of all families in the United States had About three-fifths of households scoring low on the debt-payment-to-income ratios greater than 40 percash-flow management index had a checking account, cent. The percentage was even higher for lowercompared with higher proportions for those with income families.18 In the SCF, 7 percent of all famimedium or high scores. Again, households with low lies had a payment 60 days past due.19 Among the credit management, saving, and investment index 76 percent of households in the SCF with credit scores were also less likely to have checking accounts cards, 45 percent reported not carrying over a balance than households with medium and high scores for on their credit card accounts. those indexes. Of the households in the Surveys of Consumers that reported having a credit card, three out of five reported paying their credit card balances in full each month. More than half (58 percent) reviewed their Findings From a Focus Group," Financial Counseling and Plan- credit reports, and one-third compared offers before ning, vol. 8, no. 1 (1997), pp 1-8; Amanda Moore, Sondra G. Bevapplying for a credit card. The relatively low numerly, Mark Schreiner, Michael Sherraden, Margaret Lombe, Esther Y.N. Cho, Lissa Johnson, and Rebecca M. Vonderlack, Saving, bers for evaluating credit card offers may be associ- IDA Programs, and Effects of ID As: A Survey of Participants (Wash- ated with individual characteristics. For example, ington University in St. Louis, Center for Social Development, 2001). consumers who use their credit cards as a convenient 16. Joseph J. Doyle, Jose A. Lopez, and Marc R. Saidenberg, "How Effective Is Lifeline Banking in Assisting the 'Unbanked'?" payment mechanism may not need to compare the Current Issues in Economics and Finance, vol. 4 (June 1998), pp. 1-6; John P. Caskey, Beyond Cash-and-Carry: Financial Savings, Financial Services, and Low-Income Households in Two Communities (report written for the Consumer Federation of America and the Ford Foundation, Swarthmore, Pa.: Swarthmore College, 1997); Sondra G. 18. Aizcorbe et al., "Recent Changes in US. Family Finances." Beverly, Amanda Moore, and Mark Schreiner, "A Framework of 19. Another study found that 3 percent of credit card accounts held Asset-Accumulation Stages and Strategies," Journal of Family and by college students showed at least one payment that was late 90 days Economic Issues, vol. 24 (Summer 2003), pp. 143-56. or more, compared with 2 percent of other nonstudent young adults 17. Jeanne M. Hogarth, Chris E. Anguelov, and Jinkook Lee, and 1 percent of nonstudent older adults. See Michael E. Staten and "Who Has a Bank Account? Changes Over Time in Account John M. Barron, "College Student Credit Card Usage," Working Ownership," Consumer Interests Annual, vol. 47 (2001) Paper no. 65 (Georgetown University: Credit Research Center, June (www.consumerinterests.org/public/articles/Hogarth,_Anguelov,_Lee.pdf). 2002) (www.msb.georgetown.edu/prog/crc/pdf/WP65.pdf). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 Federal Reserve Bulletin • July 2003 annual percentage rate because they pay off their 4. Percentage of respondents reporting saving practices balances in full each month, but they may want to in the 2001 Survey of Consumer Finances and November and December 2001 Surveys of Consumers compare other fees, terms, and features. Survey of Surveys of Saving practice Consumer Consumers Finances Credit Knowledge and Credit Management Behaviors Save regularly by putting money aside each month 41 50 Have no regular savings plan; save what is left over 32 25 Households with low credit management indexes had Spend work income, but save other income ... 8 8 lower overall financial knowledge scores as well as Do not save because all income is spent 21 11 5 lower scores related to credit management knowl- 1021 100 edge than households in the medium or high groups (table 2). Households with low, medium, and high 1. Components sum to more than 100 because of multiple responses. credit management indexes had credit knowledge scores of 47 percent, 61 percent, and 66 percent paycheck. The proportion of households that were respectively. To examine the relationship between regular savers varied by how they scored on the knowledge and behavior while holding other vari- saving index and ranged from about one out of six in ables constant, logistic regression analysis was per- the low group to three out of four in the high group. formed. The results were used to predict a house- To compare the consistency of these estimates with hold's propensity to score in the low, medium, or those of the SCF, the Surveys of Consumers also high groups on the credit management index, given included a question regarding "saving habits" that a specific credit management knowledge score.20 In was identical to the one asked in the SCF. Compared this analysis, the correlation between credit manage- with the SCF results, a slightly higher proportion of ment knowledge and credit management behavior respondents in the Surveys of Consumers said that was statistically significant. For example, a house- they saved regularly, and a lower proportion said that hold with a credit management knowledge score of they did not save (table 4). The differences in the 70 had a 48 percent chance of being classified in the results are not surprising given that the Surveys of high credit management index group. But if the same Consumers are phone surveys, whereas the SCF has a household had received a credit management knowl- personal-interview format.21 edge score of 90 instead of 70, its chances of being in Another saving practice that financial planners the high credit management index group increased to recommend is having an emergency fund to cushion 54 percent. against economic shocks, ranging from paying for car or appliance repairs to covering expenses during a period of unemployment. Numerous studies show SAVING that more than half of U.S. households do not have adequate emergency funds, which are typically Survey Results defined as liquid assets to cover two to six months of living expenses.22 In the Surveys of Consumers, how- One of the most widely recognized financial- ever, about three-fifths of households responded that management principles is to save regularly, generally they had an emergency fund, although the actual by setting aside some amount for savings before number of months of living expenses that would be paying for expenses. Although four-fifths of the covered by the fund was not specified. households in the Surveys of Consumers reported having a savings account, overall, fewer than half of households said that they saved regularly out of each 21. Personal interviews, which are conducted face-to-face, may elicit a slightly different response than a phone survey. 22. See Y. Regina Chang, Sherman Hanna, and Jessie X. Fan, "Emergency Fund Levels: Is Household Behavior Rational?" Financial Counseling and Planning, vol. 8, no. 1 (1997), pp. 47-55. See 20. Regression analysis was performed for all four financial prac- also Edward N. Wolff, "Recent Trends in Wealth Ownership 1983tices. Details can be found in Jeanne M. Hogarth, Sondra G. Beverly, 1998," Working paper no. 300 (New York: Jerome Levy Economics and Marianne A. Hilgert, "Patterns of Financial Behaviors: Implica- Institute, April 2000) (www.levy.org/docs/wrkpap/papers/300.html); tions for Community Educators and Policy Makers" (paper pre- Robert Haverman and Edward Wolff, "Who Are the Asset-Poor? sented at the Third Community Affairs Research Conference of the Levels, Trends, and Composition, 1983-1998" (paper prepared for Federal Reserve System, March 2003) (www.federalreserve.gov/ "Inclusion in Asset Building: Research and Policy Symposium," community affairs/national/CA_Conf_SusCommDev/pdf/ Washington University in St. Louis, Center for Social Development, hogarthjeanne.pdf). 2000). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Household Financial Management: The Connection between Knowledge and Behavior 317 Knowledge of Saving and Saving Behaviors assets, and 68 percent held some nonfinancial asset (car, home, business, or other property). In compari- Households with low scores on the saving index had son, 99 percent of U.S. households in the upper lower overall financial knowledge scores and lower 20 percent of the income distribution had financial scores on the saving subsection of the quiz (table 2). assets, and 99 percent had nonfinancial assets. Those with low index scores had an average saving There are numerous policy initiatives targeted at knowledge score of 67 percent, compared with ways of assisting low-income families in accumulat- 77 percent for those in the medium group and 86 per- ing assets through homeownership programs and cent for those in the high group. This correlation individual development accounts (IDAs). IDAs are between knowledge of saving and saving behaviors meant to improve saving and asset accumulation was statistically significant: A household with a sav- by the poor by providing matching funds for saving score of 70 out of 100 had a 27 percent chance of ings toward home ownership, higher education, and being in the high saving index group. In contrast, the microenterprise.24 same household with a saving score of 90 had a Other studies suggest that Americans are saving 31 percent chance of being in the high saving index too little for retirement.25 In one survey, 35 percent group. of respondents did not even guess at how much they needed for retirement. The estimate for those who did respond was, on average, 44 percent below their INVESTMENT expected needs.26 More than half (52 percent) of the households in the Surveys of Consumers reported Survey Results having an investment account and three-fifths (63 percent) reported having any type of retirement After households have established an emergency fund—pension, 401 (k), IRA, Keogh, or other type of fund, many personal finance texts and financial plan- retirement account. Fewer than half of all responners recommend that the next step be investing for dents reported having a 401(k) or comshort- to mid-term goals (such as a vacation) as well pany pension plan, IRA, or Keogh; nearly two-fifths as for longer-term goals (homes, children's college (37 percent) indicated that they participated in an education, and retirement). More than half (52 per- employer's 401(k) plan, and about one-fifth (22 percent) of the households in the Surveys of Consumers cent) reported putting money into another type of reported having an investment account; 46 percent retirement account (table 3). Of those scoring low on had mutual funds, 24 percent had stock, and 6 percent the investment index, one out of four had a pension had bonds. Furthermore, 75 percent owned their own or 401(k), and one out of six participated in an home. Nearly three-fourths of the respondents said employer's 401 (k) plan. that they diversified their portfolios by having money spread over different types of investments. Financial assets held in investments are one way Knowledge of Investment and Investment for people to accumulate their down payments for Behaviors cars and homes, as well as to build college and retirement funds. Some studies have shown that for Households in the low investment index group had lower-income households, financial assets account lower overall financial knowledge scores and lower for a larger proportion of net worth than for middleand upper-income households; that is, lower-income families hold most of their assets in financial instru- 24. Mark Schreiner, Margaret Clancy, and Michael Sherraden, ments rather than in homes, cars, businesses, or other Saving Performance in the American Dream Demonstration (Washreal property.23 According to the 2001 SCF, 75 per- ington University in St. Louis: Center for Social Development, 2002); cent of U.S. households in the lowest 20 percent of Melvin L. Oliver and Thomas M. Shapiro, Black Wealth/White Wealth: A New Perspective on Racial Inequality (New York: Routledge, the income distribution held at least some financial 1995). 25. See B. Douglas Bernheim, "Financial Illiteracy, Education, and Retirement Saving," in O.S. Mitchell and S.J. Schieber, eds., Living with Defined Contribution Plans (University of Pennsylvania, 23. Stacie Carney and William G. Gale, "Asset Accumulation Wharton School, Pension Research Council, 1998) pp. 38-68, for a among Low-income Households" (paper prepared for Ford Founda- review of other studies on retirement saving. tion conference, "Benefits and Mechanisms for Spreading Asset Own- 26. Mark Dolliver, "Just Blame It on Ignorance, If Not on Improviership in the United States," December 10-12, 1998, New York, dence," Adweek, vol. 42 (March 2001), p. 45; Employee Benefit New York), February 2000 (www.brook.edu/views/papers/gale/ Research Institute, "The 2001 Retirement Confidence Survey: Sum- 19991130.pdf). mary of Findings" (www.ebri.org/rcs/2001/01rcses.pdf). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 Federal Reserve Bulletin • July 2003 investment knowledge scores (50 percent) than those any of these sources. For example, 46 percent of who were classified as medium or high on the invest- those with low index scores for cash-flow management index (67 percent and 80 percent respectively, ment reported learning from personal experience, table 2). These differences were statistically signifi- compared with 63 percent of those with medium cant. A household scoring 70 on the investment index scores and 73 percent of those with high index knowledge subsection of the quiz had a 9 percent scores. chance of being in the high index group. The same The largest variation among the index scores household with a score of 90 on the investment within each behavior related to personal experience— subsection of the quiz had a 13 percent chance of respondents with high scores were more likely to being in the high group. report learning from personal experience. This large variation may reflect, in part, the motivation of those with high index scores to seek out information and SOURCES OF FINANCIAL KNOWLEDGE apply it to personal circumstances. For example, one could argue that there is a difference between reading Ways Households Gain Knowledge about about money management and actually engaging in Personal Finances financial behaviors that provide more concrete learning experiences. If knowledge is linked to behavior, then it is impor- In this study, the correlation between sources of tant to know where households obtain their financial financial knowledge and financial practices was knowledge. Households in the Surveys of Consumers found to be significant. Generally, households that reported learning from a variety of sources, but expe- reported learning a lot from personal experience and rience, friends and family, and the media were among from friends and family were more likely to have the top sources for all households (table 5). For each higher index scores. For example, within the cashpractice—cash-flow management, credit manage- flow management index, households that reported ment, saving, and investment—households with low learning from these sources had a 71 percent chance index scores were less likely to report learning from of scoring high, while those that did not report learn- 5. Learning experiences and preferences, by financial practice index and index level Percent Cash-flow management index Credit management index Saving index Investment index LLeeaarrnniinngg eexxppeerriieennccee oorr pprreeffeerreennccee Low Medium High Low Medium High Low Medium High Low Medium High Learned "a lot" or a "fair amount" about financial topics from:1 Personal financial experience 46 63 73 38 67 76 50 69 81 52 73 86 Friends and family 33 40 44 31 42 45 32 45 46 36 46 44 Media2 26 36 38 24 33 42 27 37 41 29 39 42 High school or college course 22 13 20 14 14 24 14 1 19 23 15 19 25 Course outside school 13 14 18 11 13 22 11 15 23 11 18 25 Employer 14 21 22 17 19 23 16 22 23 17 24 19 Internet 8 10 13 4 9 16 p 5 | u 1 18 6 13 19 Most important way learned about personal finances: Persona] financial experience 38 42 53 34 51 4499 47 51 47 49 47 51 Friends and family 18 25 20 25 21 20 21 22 20 22 22 17 Media2 8 13 11 8 11 12 10 10 13 8 11 16 High school or college course 8 6 5 6 6 5 7 5 5 6 4 6 Course outside school 3 5 5 2 3 6 2 4 6 2 6 5 Employer 3 6 5 3 5 5 3 5 6 4 6 3 Internet 1 1 2 4 2 2 H i 2 2 1 2 2 Nothing 2 2 0 1 0 2 0 0 2 0 - 7 No response 18 0 18 0 1 1 4 2 Effective ways to learn JjjjJI to manage money:1 Media2 65 69 73 54 73 74 65 73 75 65 74 78 Video presentation 64 66 63 58 62 67 62 66 63 62 65 66 Informational brochures 62 63 68 56 67 68 61 68 69 65 67 69 Internet 48 53 58 41 48 66 44 57 62 47 58 64 Informational seminars 46 47 55 44 52 55 48 53 55 47 54 59 Formal courses at a school 56 51 54 45 53 55 52 55 52 54 53 52 NOTE. For definitions of index levels, see note to chart 1. 2. Television, radio, magazines, and newspapers. . . . Not applicable. SOURCE. Surveys of Consumers, November and December 2001. 1. Components sum to more than 100 because of multiple responses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Household Financial Management: The Connection between Knowledge and Behavior 319 ing a lot from personal experience, friends, and fam- ability for people who want to learn on their own— ily had a 63 percent chance of scoring high. those households that want to access education and Using the media and the Internet to learn about information resources when they are preparing to financial-management topics was important for credit make a decision and at times and places that are practices. Households that reported learning a lot convenient for their lifestyle. Media sources, brofrom the media and the Internet had a 50 percent chures, and Internet materials on new products and chance of being in the high index group for credit services may be all that are necessary for these housemanagement practices while households that did not holds. The high ratings for videos may reflect the report learning a lot from these sources had a 42 per- preference of visual learners to "see" applications of cent chance of being in the high group. High school financial-management tools (how to balance a checkor college courses were also found to be a statistically book, how to set up different recordkeeping systems, significant way to learn about financial topics for or where to look for information on credit card those scoring high on the credit management index. offers). Videos may also be a practical mechanism The Surveys of Consumers also asked consumers for time-constrained individuals who can view the what was the most important way that they had videos in their home. Formal methods, such as learnlearned about personal finances. Not surprisingly, ing through courses at a school or informational personal experience was reported as the most impor- seminars, were not as popular, particularly among tant way for each of the financial practices indexes. those who scored lower, although some may benefit However, it is worth noting the variation from low from group-learning situations. Many households to high index scores within each category. While the also appreciate the convenience of learning through difference in the percentage of households that said employer-based programs.27 that personal experience was the most important way Others also have found that low-income consumers to learn was narrow for saving and investment prac- prefer to learn through media sources, primarily radio tices (ranging only from 47 percent to 51 percent), and television, although there are some variations there was a larger difference for cash-flow manage- from this pattern of learning preferences.28 Some ment and credit management practices (ranging from studies show that low-income families have a strong 34 percent to 53 percent). Perhaps consumers are preference for learning from peers—from "someone able to learn more through personal experience for who has been through this."29 Also, anecdotal evisome types of behaviors than for others. For example, dence indicates that some ethnic audiences prefer to households can learn to avoid bad cash-flow and learn from trusted key community leaders.30 credit-management practices because the cost of these can often be felt immediately. Changes in saving and investment practices, on the other hand, have Effectiveness of Learning Strategies payoffs that are noticed only in the long run, and so relying primarily on personal experience may be less It is important to ask how effective various learning useful. strategies are likely to be. For example, media sources were cited by respondents in the Surveys of Preferred Sources of Financial Knowledge The Surveys of Consumers included six questions 27. E. Thomas Garman, "Consumer Educators, Now Is the Time regarding how individuals prefer to learn about for a Paradigm Shift Toward Employee Financial Education," Confinancial management. Specifically, respondents were sumer Interests Annual, vol. 44 (1998), pp. 48-53. 28. Sherrie L.W. Rhine and Maude Toussaint-Commeau, "Conasked, "Given your time and the way you like to sumer Preferences in the Delivery of Financial Information: learn, which of the following ways would be effec- A Summary," Consumer Interests Annual, vol. 48 (2002) tive for you to learn about managing your money?" (www.consumerinterests.org/public/articles/FinancialInformation-02.pdf). 29. Jeanne M. Hogarth, Josephine A. Swanson, and Jane Segelken, Overall, households preferred to learn about money "Using Contemporary Adult Education Principles in Financial Educamanagement through media sources (television, tion with Low Income Audiences," Family Economics & Resource radio, magazines, and newspapers), informational Management Biennial, vol. 1 (1995), pp. 139-46; Jeanne M. Hogarth and Josephine A. Swanson, "Voices of Experience: Limited Resource videos, and brochures (table 5). Households that Families and Financial Management" (paper presented at the Family scored high on the financial practices indexes were Economics & Management Conference, American Home Economics more likely than those scoring in the low or medium Association Meetings, June 1993). 30. Andrew I. Schoenholtz and Kristin Stanton, "Reaching the group to prefer the Internet as an information source. Immigrant Market: Creating Homeownership Opportunities for New In general, these sources have "just in time" avail- Americans" (Washington, D.C.: Fannie Mae Foundation, 2001). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 Federal Reserve Bulletin • July 2003 Consumers as effective ways to learn about managing * * • < »-M v ^ p p i BB money. From the educator's viewpoint, media outlets The Federal Reserve System's Financial could be important ways of creating awareness about Education Initiative • , V financial education opportunities. Public service announcements could serve to stimulate thinking and In spring 2003, the Federal Reserve System launched a provide motivation, in addition to helping people financial education initiative designed to stimulate U.S. connect with financial education resources. Com- households to learn more about financial management. munity educators could work with local newspapers In a public service announcement, Chairman Greenspan stated, "No matter who you are, making informed decito prepare financial education columns to supplement sions about what to do with your money will help build a those available at the national level. (See box, more stable financial future for you and your family." "The Federal Reserve System's Financial Education The public service announcement refers consum- Initiative.") ers to the Federal Reserve's personal financial education In recent studies on mortgage lending and credit web site (www.FederalReserveEducation.org), which has management, households that had been through a links to additional resources, including "There's a Lot to one-on-one counseling session were less likely to be Learn About Money." This guide features tips on setting delinquent with mortgage payments and had higher financial goals, budgeting, and using credit wisely. It is credit scores and better credit-management practices available in English and Spanish. Consumers can obtain than those that had been exposed to other education copies online or through a toll-free number (800-411strategies.31 An evaluation of the Money 2000 pro- 4535). Another consumer resource, "Building Wealth: A Beginner's Guide to Securing Your Financial Future," gram also revealed the benefits of repeat contacts is available in both English and Spanish at with participants and access to a money management www.dallasfed.org/htm/ca/pubs.html. "coach."32 Unlike a professional counselor working The Federal Reserve System also has created an in a one-on-one setting, a coach could be a peer online repository for financial education research on the volunteer or key community leader who serves as a web site of the Chicago Federal Reserve's Consumer mentor to a small group of individuals and families. and Economic Development Research and Informa- Timing the delivery of financial education may tion Center (CEDRIC) (www.chicagofed.org/cedric/ also be important. Not only is it necessary to edu- financial_education_research_center.cfm). CEDRIC procate consumers about financial-management topics vides researchers, community organizations, financial through methods that fit their learning preferences, institutions, government agencies, and the public with a comprehensive source for abstracts and full texts of but it is also necessary to present the material at a "teachable moment."33 Consumers who are provided articles, reports, working papers, and other studies related to effective financial education initiatives and community information when it is immediately relevant and applidevelopment issues. cable, such as first-time homebuyers receiving prepurchase counseling, may have a greater chance of recognizing the value of the information and of making a behavioral change. However, consumers may not always recognize these teachable moments, and greatest challenges for policymakers, consumer edusome may not be aware that information on topics cators, and practitioners in providing financial educarelevant to their needs is available. Thus, one of the tion is motivating individuals to pursue it. 31. Abdighani Hirad and Peter M. Zorn, "A Little Knowledge Is a KNOWLEDGE AND BEHAVIOR: Good Thing: Empirical Evidence of the Effectiveness of Pre-Purchase WHAT IS THE LINK? Homeownership Counseling" (paper presented at the Third Community Affairs Research Conference of the Federal Reserve System, March 2003) (www.federalreserve.gov/communityaffairs/national/ Financial knowledge can be statistically linked to CA_Conf_SusCommDev/pdf/zornpeter.pdf); Michael E. Staten, financial practices related to cash-flow management, Gregory Elliehausen, and E. Christopher Lundquist, "The Impact of credit management, saving, and investment—those Credit Counseling on Subsequent Borrower Credit Usage and Payment Behavior," Monograph no. 36 (Georgetown University: Credit who knew more had higher index scores, and those Research Center, March 2002) (www.msb.georgetown.edu/prog/crc/ who learned from family, friends, and personal expepdf/M36.pdf). riences had higher index scores. It is worth noting 32. The Money 2000 program encourages participants to reduce that certain types of financial knowledge were found debt by $2,000 or increase savings by $2,000, or some combination of both. See O'Neill, "Twelve Key Components of Financial Wellness." to be statistically significant for particular financial 33. National Endowment for Financial Education, "Financial Lit- practices. With the exception of the cash-flow maneracy in America: Individual Choices, National Consequences" agement practices, which did not have a correspond- (2002) (www.nefe.org/pages/whitepaper2002symposium.html). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Household Financial Management: The Connection between Knowledge and Behavior 321 ing subsection on the quiz, the relationships between the country—Northeast, North Central, South, and specific financial knowledge scores and the corre- West—in proportion to their populations. Alaska and sponding financial practices indexes were statistically Hawaii were not included. For each telephone numsignificant. Thus, knowing about credit, saving, and ber drawn, an adult in the family was randomly investment was correlated with having higher index selected as the respondent. The survey defines a scores for credit management, saving, and investment family as any group of persons living together who practices respectively. This pattern may indicate that are related by marriage, blood, or adoption or any increases in knowledge and experience can lead to individual living alone or with a person or persons to improvements in financial practices, although the whom the individual is not related. The survey data causality could flow in the other direction—or even have been weighted to be representative of the popuboth ways. One way to increase knowledge is to gain lation as a whole, thereby correcting for differences experience. And one way to gain additional educa- among families in the probability of their being tion is to learn from the experiences of others, as can selected as survey respondents. All survey data in the happen in classes and seminars and through conversa- tables are based on weighted observations. tions with family and friends. Federal Reserve staff members worked with col- There is a difference between providing informa- leagues in the U.S. Department of Agriculture's tion and providing education. Education may require Cooperative State Research, Education, and Extena combination of information, skill-building, and sion Service to craft the additional questions. Quesmotivation to make the desired changes in behavior. tions were based, in part, on experiences from other The distinction between information and education is surveys (for example, the Jump$tart Coalition's bianan especially important point for policymakers and nual survey of high school seniors, Money 2000 program leaders making decisions about the alloca- surveys, previous Consumer Federation of Americation of resources. Financial education awareness cam- American Express surveys, and the American Savpaigns and learning tools (for example, web sites or ings Education Council youth survey). The questions brochures), all important in their own right, may need were divided into five parts: a twenty-eight question to be coupled with audience-targeted motivational quiz on household financial knowledge; an assessand educational strategies to elicit the desired behav- ment of experiences with thirteen financial products ioral changes in financial-management practices. and services; an assessment of eighteen financial behaviors; questions on ways respondents learned about managing household finances; and questions on ways respondents would prefer to learn about APPENDIX A: SURVEY DATA managing their finances. Because the Survey of Consumers is a phone survey, a true-false-uncertain for- The monthly Surveys of Consumers, which were mat was adopted for the knowledge quiz rather than initiated in the late 1940s by the Survey Research the multiple-choice format used in many of the other Center at the University of Michigan, measure surveys. Once questions were drafted, they were changes in consumer attitudes and expectations with shared with a set of researchers who work in the area regard to consumer finance decisions. Each monthly of financial education. The researchers helped review survey of about 500 households includes a set of core the questions and provided additional guidance. Furquestions covering consumer attitudes and expectather revisions were made in consultation with the tions and the respondents' socioeconomic and demographic characteristics.34 In the November and staff at the Survey Research Center. December 2001 surveys, the Federal Reserve Board commissioned additional questions regarding household financial knowledge, behaviors, learning experi- APPENDIX B: INDEXES OF FINANCIAL ences, and learning preferences. The sample included PRACTICES 1,004 respondents. Interviews were conducted by telephone, with tele- To explore patterns of household financial practices, phone numbers drawn from a cluster sample of four of the five types of practices listed in table 1 residential numbers. The sample was chosen to be were examined: cash-flow management, credit manbroadly representative of the four main regions of agement, saving, and investment. As discussed in the text, ownership of various financial products as well as reported behaviors were examined simultaneously 34. See University of Michigan Survey Research Center, Surveys and used to create an index for each of the four types of Consumers (Ann Arbor, Mich.: University of Michigan Survey Research Center, 2001). of practices. Table 1 shows the individual financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 Federal Reserve Bulletin • July 2003 product and financial behavior variables used to con- Next, controls were established for "conditional" struct the four indexes. The cash-flow management, variables. Specifically, (1) for the cash-flow managecredit management, and saving indexes include all of ment index, households without checking accounts the individual financial product and financial behav- were not expected to report balancing their checkior variables listed. The investment index does not books; (2) for credit management, respondents withinclude the two items related to employer-provided out credit cards were not expected to report paying retirement plans because information on whether in- their credit card balances in full each month; (3) for dividuals had access to these plans (or even whether investment, respondents without an individual retirethey were employed) was not available. ment account (IRA) were not expected to report Levels of cash-flow management, credit manage- contributing to an IRA; and (4) for investment, retirment, saving, and investment practices were classi- ees (proxied by being age 65 or older) were not fied as "high," "medium," or "low." For each type expected to report contributing to IRAs or other of financial behavior, a determination was made retirement plans. about whether there was an essential element associ- The items reported for each financial practice cateated with that behavior. For example, in cash-flow gory were summed and percentages were calculated. management, paying bills on time was considered an If households reported fewer than 25 percent of the essential element.35 Respondents who did not pay items, they were classified as low; households reporttheir bills on time were automatically categorized in ing between 25 percent and 70 percent of the items the low group. were classified as medium; and households reporting more than 70 percent of the items were classified as high. Integers were rounded to account for the discrete nature of the items; for example, 25 percent of 35. See E. Thomas Garman and Raymond Forgue, Personal Finance (Boston: Houghton Mifflin, 2003). five items (1.25) was rounded to 1. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

323 Announcements NOMINATIONS SOUGHT FOR CONSUMER AMENDMENT TO REGULATION CC ADVISORY COUNCIL The Federal Reserve Board on May 20, 2003, announced a series of amendments to Appendix A of The Federal Reserve Board announced on June 4, Regulation CC (Availability of Funds and Collection 2003, that it is seeking nominations for appointments of Checks) that the Board will make later in 2003 to its Consumer Advisory Council. The Council through the end of 2004 to reflect the restructuring of advises the Board on the exercise of its responsibilithe Federal Reserve's check processing operations. ties under various consumer financial services laws Appendix A provides a routing number guide that and on other matters on which the Board seeks its helps depository institutions determine the maximum advice. The group meets in Washington, D.C., three permissible hold periods for most deposited checks. times a year. Collectively, the amendments will reduce the num- Nine new members will be appointed to serve ber of check processing regions listed in Appendix A three-year terms beginning in January 2004. Nominafrom 44 to 32, resulting in some nonlocal checks in tions should include a resume and the following the affected regions becoming local checks that are information about nominees: subject to faster availability schedules. The Board will publish each amendment in the Federal Register • complete name, title, address, telephone, e-mail at least sixty days before the effective date to allow address, and fax numbers; ample time for depository institutions to make neces- • organization's name, brief description of organisary changes. zation, address, telephone and fax numbers, past and The Board on May 20, 2003, also approved a final present positions; rule that deletes obsolete numbers from and adds new • knowledge, interests, or experience related to numbers to the list of routing numbers in Appendix A community reinvestment, consumer protection regufor checks drawn on Federal Reserve Banks and lations, consumer credit, or other consumer financial Federal Home Loan Banks. services; and • positions held in community and banking associations, councils, and boards. PUBLICATION OF TRANSITION RULES FOR COLLECTING AND REPORTING INFORMATION Nominations should also include the complete name, organization name, title, address, telephone, The Federal Reserve Board on May 23, 2003, e-mail address, and fax numbers for the nominator. announced the publication of transition rules to pro- Letters of nomination with complete informa- vide lenders with guidance on collecting and reporttion, including a resume for each nominee, must ing information when an application for a home be received by August 15, 2003. Nominations not mortgage loan is received before—and final action is received by August 15 may not be considered. taken after—January 1, 2004. The rules were pub- Electronic nominations are preferred. The lished as an amendment to the official staff commenappropriate form can be accessed at: tary that applies and interprets the requirements of www.federalreserve.gov/forms/cacnominationform.cfm Regulation C (Home Mortgage Disclosure Act). If electronic submission is not feasible, the nomi- In 2002, the Board substantially revised Regnations can be mailed (not sent by facsimile) to ulation C, effective January 1, 2004. The revisions Sandra F. Braunstein, Senior Associate Director, require lenders to report new data items, includ- Division of Consumer and Community Affairs, Board ing information about loan pricing. To minimize the of Governors of the Federal Reserve System, Wash- reporting burden, the transition rules generally will ington, DC 20551. not require lenders to collect—pre-January 1, 2004— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 Federal Reserve Bulletin • July 2003 information that typically is obtained when an appli- ment of the Treasury under section 352 of the USA cation is submitted. More specifically, the transition PATRIOT Act, which requires all financial institurules provide the following. tions to maintain effective anti-money-laundering programs. The Board believes that the proposed regu- • Lenders will not have to indicate whether an lation will not impose any material administrative application or loan involved a request for preapproval burden for affected institutions because, in supervisor were related to a manufactured home. ing these institutions to ensure safety and soundness, • Lenders may at their option continue to apply the the Board has consistently expected such entities to current—instead of the revised—definitions for a maintain programs to ensure compliance with all home improvement loan and for refinancings. applicable provisions of the Bank Secrecy Act. • Lenders need not report the rate spread for loans in which the rate lock occurs before January 1, 2004, given that their data collection systems may not be PROPOSAL TO MODIFY METHOD FOR fully operational until the revisions take effect in IMPUTING PRICED-SERVICE INCOME January 2004. The Federal Reserve Board on May 23, 2003, The transition rules require lenders to report inforrequested comment on a proposal to modify the mation available at the time of final action: purchaser method for imputing priced-service income from type; whether a loan is subject to the Home Ownerclearing balance investments. Federal Reserve Banks ship and Equity Protection Act; and the lien status of impute this income when setting fees and measuring applications and originated loans. The Board has also actual cost recovery each year. provided rules to convert information about appli- Clearing balances held at Reserve Banks are simicants' race and ethnicity (collected under the current lar to compensating balances held by respondent categories in 2003 and reported under the new catebanks at correspondent banks. Reserve Banks curgories in 2004). rently assume that all available clearing balances are invested in three-month Treasury bills. The Board PROPOSAL TO AMEND REGULATION K proposes to impute the income from its clearing balance investments on the basis of a broader port- The Federal Reserve Board on May 29, 2003, folio of investment instruments than used today. announced that it is seeking public comment on a Imputed investments would be selected from instruproposal to amend Regulation K (International Bank- ments available to bank holding companies and ing Operations) to require Edge Act and agreement would be subject to a risk-management framework corporations and U.S. branches, agencies, and other that includes criteria consistent with those used by offices of foreign banks supervised by the Board bank holding companies and regulators in evaluating to establish and maintain procedures reasonably investment risk. designed to ensure and monitor compliance with the The Monetary Control Act requires Federal Bank Secrecy Act and related regulations. Reserve Banks to establish fees for priced services The Bank Secrecy Act generally requires a finan- provided to depository institutions at a level necescial institution doing business in the United States sary to recover, over the long run, all direct and to keep records and make reports that have a high indirect costs actually incurred and imputed costs. degree of usefulness in criminal, tax, or regulatory The Reserve Banks also impute income that would proceedings. Domestic financial institutions, such as have been earned on the investment of clearing balstate member banks subject to the Board's Regu- ances that customers hold with the Reserve Banks lation H (Membership of State Banking Institutions had those balances been held by a private business in the Federal Reserve System), already have been firm. required to establish and maintain such procedures. The Board's proposal to amend Regulation K is designed to require Edge Act and agreement corpora- LAUNCH OF SYSTEMWIDE FINANCIAL tions and U.S. branches, agencies, and other offices of EDUCATION INITIATIVE foreign banks to implement and maintain similar compliance programs. Federal Reserve Board Chairman Alan Greenspan The Board's proposal is designed to be consistent stressed the benefits of economic and financial eduwith regulations recently issued by the U.S. Depart- cation in a public service announcement and during Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 325 a visit to a Washington, D.C., school. The events using credit wisely. It is available online in English are part of a broad initiative throughout the Federal and Spanish. Reserve System to provide consumers with more In addition, an online repository for financial eduresources for making smart financial decisions. cation and literacy research has been created on the An increasingly complex global financial system Chicago Federal Reserve's Consumer and Economic underscores the need for consumers to have a strong Development Research and Information Center working knowledge of financial concepts. At a news (CEDRIC) web site (www.chicagofed.org/cedric/ conference today to launch the initiative, Federal listing.cfm). CEDRIC provides researchers, commu- Reserve Board Governor Edward M. Gramlich said, nity organizations, financial institutions, government "Americans of every income and educational back- agencies, and the public with a comprehensive source ground want additional tools and training to address for abstracts and full texts of articles, reports, workthe complexities of personal finance. Educated con- ing papers, and other studies related to community sumers are one key to keeping our economy function- development issues. ing well." Expanding the availability of quality financial edu- The Federal Reserve Board and the twelve Federal cation opportunities to the public and to System Reserve Banks have a long history as promoters and employees is a high priority for the Federal Reserve providers of financial education. The initiative builds Banks. Throughout 2003, the Banks will update existupon existing efforts with the introduction of public ing programs and launch new ones. Some of these service messages, a new brochure, enhancements to initiatives will involve partnerships with area finanthe System's financial education web site, and the cial institutions and private-sector organizations. A announcement of upcoming System-sponsored pro- list of planned activities will be available on the grams and events. Federal Reserve Education web site listed above. Beginning in May, Chairman Greenspan has been featured in a public service announcement aired by major television and radio networks. His message: EXPANSION OF OPERATING HOURS FOR "No matter who you are, making informed decisions ONLINE FEDWIRE® FUNDS SERVICE about what to do with your money will help build a more stable financial future for you and your family." The Federal Reserve Board on May 21, 2003, An English and a Spanish version of the announce- announced it will expand the operating hours for the ment were distributed. online Fedwire Funds Service. On June 5, 2003, Chairman Greenspan and Rich- The Fedwire Funds Service will open three and mond Federal Reserve Bank President J. Alfred one-half hours earlier (9:00 p.m. Eastern Time the Broaddus, Jr., spoke with students of John Philip prior calendar day) than the current opening time of Sousa Middle School in Washington, D.C., about 12:30 a.m. ET. The closing time for the service will how sound mathematical and problem-solving skills remain 6:30 p.m. ET. The scheduled timeframe for can promote good money management. The visit was full implementation of the expanded operating hours intended to complement Operation HOPE'S efforts to is the second quarter of 2004. Fedwire participants support the financial education of urban youth. will be notified at least sixty days before the specific "We believe that this is a particularly good time to effective date of the new hours. promote financial education because of the wide- The impetus for the expansion of the Fedwire spread availability of high-quality curricula pro- operating hours was industry requests to achieve grams, and training opportunities for consumers of greater overlap of U.S. wholesale payments system all ages and backgrounds," Gramlich said. "Our hope operating hours with those of the Asia-Pacific maris to encourage consumers to take advantage of the kets, including Australia, Hong Kong, Japan, and programs available in their communities, schools, New Zealand. and on the web." The Fedwire Funds Service is a real-time, large- The Federal Reserve education web site value electronic funds transfer service, which is pro- (www.FederalReserveEducation.org) is also being vided by the Federal Reserve Banks. Depository enhanced with links to additional educational institutions and other authorized participants use this resources including a brochure filled with tips for service to send and receive large-value, time-critical taking charge of personal finances. The brochure, payments. Each payment transaction is settled indi- "There's a Lot to Learn About Money," contains vidually in central bank money and is final and information on setting financial goals, budgeting, and irrevocable once processed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 Federal Reserve Bulletin • July 2003 FOMC ANNOUNCES MEETING SCHEDULE in the pockets of American families. The swift enact- FOR 2004 ment of the President's Jobs and Growth package should do just that." The Federal Open Market Committee announced on "This is The New Color of Money; it is safer June 10, 2003, its tentative meeting schedule for because it is harder to fake and easier to check, 2004. smarter to stay ahead of tech-savvy counterfeiters, and more secure than ever," said the Bureau of • January 27-28 (Tuesday-Wednesday) Engraving and Printing's Ferguson. "The security • March 16 (Tuesday) features are easier than ever to use, and we want the • May 4 (Tuesday) public to learn how to use them, to protect its hard- • June 29-30 (Tuesday-Wednesday) earned money." • August 10 (Tuesday) • September 21 (Tuesday) • November 10 (Wednesday) The New Color of Money • December 14 (Tuesday) The most noticeable difference in the notes is the subtle green, peach, and blue colors featured in the UNVEILING OF NEW $20 NOTE background. Different colors will be used for different denominations, which will help everyone— U.S. government officials on May 13, 2003, unveiled particularly those who are visually impaired—to tell a new $20 note design with enhanced security fea- denominations apart. tures and subtle background colors. The new design While consumers should not use color to check the is part of an ongoing effort to stay ahead of the authenticity of their currency (relying instead on usercounterfeiting of U.S. currency. friendly security features—see below), color does "The soundness of a nation's currency is essential add complexity to the note, making counterfeiting to the soundness of its economy. And to uphold our more difficult. currency's soundness, it must be recognized and hon- The new bills will remain the same size and use the ored as legal tender, and counterfeiting must be effec- same, but enhanced, portraits and historical images of tively thwarted," said Alan Greenspan, Chairman Andrew Jackson on the face of the note and the of the Board of Governors of the Federal Reserve White House on the back. The redesign also features System. symbols of freedom—a blue eagle in the background, At the unveiling, U.S. Treasury Secretary John W. and a metallic green eagle and shield to the right of Snow and Chairman Greenspan were joined by U.S. the portrait in the $20 note. Treasurer Rosario Marin; Tom Ferguson, Director of the Treasury's Bureau of Engraving and Printing, which produces U.S. currency; and W. Ralph Security Features Basham, Director of the United States Secret Service, the law enforcement agency responsible for combat- The new $20 design retains three important security ing counterfeiting. features that were first introduced in the late 1990s The new $20 note will be issued in the fall, with and are easy for consumers and merchants alike to new designs for the $50 and $100 notes following in check. 2004 and 2005. Redesign of the $5 and $10 notes is under consideration, but the $1 and $2 notes will not • The watermark—the faint image similar to the be redesigned. Even after the new money is issued, large portrait, which is part of the paper itself and is older-design notes will remain legal tender. visible from both sides when held up to the light. "U.S. currency is a worldwide symbol of security • The security thread—also visible from both sides and integrity. This new design will help us keep it when held up to the light, this vertical strip of plastic that way, by protecting against counterfeiting and is embedded in the paper. "USA TWENTY" and a making it easier for people to confirm the authenticity small flag are visible along the thread. of their hard-earned money," Snow said. "In addition • The color-shifting ink—the numeral "20" in the to keeping our currency safe from counterfeiters, we lower-right corner on the face of the note changes are working to ensure that more of those dollars stay from copper to green when the note is tilted. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 327 color shift is more dramatic and easier to see on the BANKING AGENCIES ISSUE HOST STATE new-design notes. LOAN-TO-DEPOSIT RATIOS Because these features are difficult for counterfeit- The Board of Governors of the Federal Reserve Sysers to reproduce well, they often do not try. Counter- tem, the Federal Deposit Insurance Corporation, and feiters are hoping that cash-handlers and the public the Office of the Comptroller of the Currency issued will not check their money closely. on May 22, 2003, the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Counterfeiting: Increasingly Digital Banking and Branching Efficiency Act of 1994. These ratios update data released on June 24, 2002. Counterfeiters are increasingly turning to digital In general, section 109 prohibits a bank from estabmethods, as advances in technology make digital lishing or acquiring a branch or branches outside its counterfeiting of currency easier and cheaper. In home state primarily for the purpose of deposit pro- 1995, for example, less than 1 percent of counterfeit duction. Section 109 also prohibits branches of banks notes detected in the United States was digitally controlled by out-of-state bank holding companies produced. By 2002, that number had grown to nearly from operating primarily for the purpose of deposit 40 percent, according to the U.S. Secret Service. production. Yet despite the efforts of counterfeiters, U.S. cur- Section 109 provides a process to test compliance rency counterfeiting has been kept at low levels, with the statutory requirements. The first step in the with current estimates putting the level of counterfeit process involves a loan-to-deposit ratio screen that notes in circulation worldwide at between 0.01 and compares a bank's statewide loan-to-deposit ratio 0.02 percent, or about 1-2 notes in every 10,000 to the host state loan-to-deposit ratio for banks in a genuine notes. particular state. Secret Service Director Basham credits a combi- A second step is conducted if a bank's statewide nation of factors in keeping counterfeiting low: loan-to-deposit ratio is less than one-half of the pub- "Improved worldwide cooperation in law enforcelished ratio for that state or if data are not available ment; improvements in currency design, like those at the bank to conduct the first step. The second step in the new $20 notes unveiled today; and a betterrequires the appropriate banking agency to determine informed public all contribute to our success in the whether the bank is reasonably helping to meet the fight against counterfeiting." credit needs of the communities served by the bank's interstate branches. Public Education A bank that fails both steps is in violation of section 109 and is subject to sanctions by the appro- Because the improved security features are more priate banking agency. effective if the public knows about them, the U.S. government is undertaking a broad public education FEDERAL RESERVE AND TREASURY HOST program. This program will ensure that people all MEETING TO DISCUSS CREDIT MANAGEMENT over the world know the new currency is coming and help them recognize and use the security features. Federal Reserve Board Governor Edward M. Gram- The outreach will include cash-handlers, merchants, lich and Treasury Assistant Secretary for Financial business and industry associations, and the media. Institutions Wayne A. Abernathy on May 22, 2003, With roughly two-thirds of all U.S. currency held convened a panel discussion on credit management outside the United States, the public education pro- with representatives of financial services organizagram will extend worldwide. tions and companies. Judy Chapa, Treasury Deputy "From Wall Street to Fleet Street, from St. Peters- Assistant Secretary for Financial Education, moderburg, Florida, to St. Petersburg, Russia, our goal is ated the discussion. the seamless, smooth introduction of The New Color "We must take steps to educate all Americans of Money," Treasurer Marin said. about the importance of responsible credit manage- To learn more about the new currency and to ment," said Assistant Secretary Abernathy. "A good download an image of the new $20 design, visit credit rating is critical to the American family— www.moneyfactory.com/newmoney. opening the door to homeownership, entrepreneurial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 Federal Reserve Bulletin • July 2003 business loans, assistance with higher education and request for comments on a plan to identify and costs, and many other goals. We welcome this eliminate outdated, unnecessary, or unduly burdenexchange of ideas on how to best focus our efforts." some regulations imposed on insured depository "Credit must be managed wisely," said Governor institutions. Gramlich. "People who understand the fundamentals The request from the Board of Governors of the of money management are more likely to make deci- Federal Reserve System, the Federal Deposit Insursions that promote their own well-being and, on a ance Corporation, the Office of the Comptroller of broader scale, foster a more efficient economy. I hope the Currency and the Office of Thrift Supervision is that today's initiative will inspire additional research being made pursuant to section 2222 of the Economic into the most effective credit management techniques Growth and Regulatory Paperwork Reduction Act of and educational tools." 1996 (EGRPRA). The National Credit Union Admin- During the meeting, the participants planned to istration will be issuing a separate notice and request reach consensus on core principles that they would for comments pursuant to EGRPRA. use as they work to strengthen American's under- Under the 1996 law, the agencies are required to standing of credit management. review their regulations at least once every ten years. Participants in the panel discussion included repre- The publication of the notice and request for comsentatives from the National Foundation for Credit ments in a forthcoming issue of the Federal Register Counseling, the Association for Financial Counseling will mark the beginning of a three-year joint effort by and Planning Education, the In-Charge Institute, the the agencies to obtain suggestions from the industry American Bankers Association, America's Commu- and public on more-streamlined and less-burdensome nity Bankers, the Credit Union National Foundation, ways to regulate. EGRPRA requires the agencies to the Fannie Mae Foundation, Freddie Mac, American categorize the regulations, publish the categories for Express, MasterCard, Visa, the Community Financial comment, report to the Congress on any significant Services Association of America, the Consumer Fed- issues raised by the comments, and eliminate unneceration of America, the National Council of La Raza, essary regulations. the American Association of Retired Persons, and The agencies will publish the categories for which College Parents of America. they are seeking comments twice a year. For this first The issue of credit management is one of four publication, comments are requested for the followareas of focus by the Treasury Department's Office of ing three categories of regulations: Applications and Financial Education (OFE), established in 2002 and Reporting, Powers and Activities, and International headed by Deputy Assistant Secretary Chapa. The Operations. OFE works to ensure that Americans have access to To encourage full participation in the EGRPRA financial education programs and that they obtain the review, the agencies have scheduled five roundtable practical knowledge and skills that will enable them discussions with bankers and other interested parties. to make informed financial choices through various The sessions will be held as follows. life stages. The OFE chairs the Federal Government Financial Education Coordinating Group. • June 11, Orlando, Florida As the agency with responsibility for the Truth • June 26, St. Louis, Missouri in Lending Act regulations, the Federal Reserve has • July 15, Denver, Colorado worked to promote access to credit and fair lending • September 18, San Francisco, California for under-served consumers and communities. In • October 15, New York, New York 2000, the Federal Reserve hosted a discussion on best practices in consumer credit education; and through MINUTES OF BOARD DISCOUNT RATE its web site (www.FederalReserveEducation.org) and MEETINGS consumer education materials, it is working to make sure consumers know their rights and responsibilities The Federal Reserve Board on May 16, 2003, in credit transactions. released the minutes of its discount rate meetings from February 10 to March 17, 2003. FEDERAL FINANCIAL REGULATORY AGENCIES SEEK COMMENT ON INTERAGENCY EFFORT TO MEETING OF THE CONSUMER ADVISORY REDUCE REGULATORY BURDEN COUNCIL The federal financial regulatory agencies announced The Federal Reserve Board announced on June 4, on June 3, 2003, that they will publish a joint notice 2003, that the Consumer Advisory Council would Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 329 hold its next meeting on Thursday, June 26. The The Federal Reserve Board on June 13, 2003, Council's function is to advise the Board on the announced the execution of a written agreement exercise of its responsibilities under various con- by and between The Marathon Bank, Winchester, sumer financial services laws and on other matters on Virginia, and the Federal Reserve Bank of which the Board seeks its advice. Richmond. The Federal Reserve Board also announced the issuance of a Cease and Desist Order against Lori H. ENFORCEMENT ACTIONS Staples, a former vice president and an institutionaffiliated party of The Marathon Bank, Winchester, The Federal Reserve Board on May 29, 2003, Virginia. announced the execution of a written agreement by and among the NAB Bank, Chicago, Illinois, the Federal Reserve Bank of Chicago, and the State of TERMINATION OF ENFORCEMENT ACTIONS Illinois Office of Banks and Real Estate. The Federal Reserve Board on May 13, 2003, The Federal Reserve Board also announced the announced the termination of the following enforceexecution of a written agreement by and between ment action. Brickyard Bancorp, Inc., Lincolnwood, Illinois, and the Federal Reserve Bank of Chicago. • U.S. Trust Corporation and the United States Trust Company of New York, New York. Cease The Federal Reserve Board on June 4, 2003, and Desist Order dated July 11, 2001. announced the issuance of a consent Order of Assessment of a Civil Money Penalty against the Citizens Bank and Trust Company, Van Buren, Arkansas, a STAFF CHANGES state member bank. Citizens Bank and Trust Company, without admitting to any allegations, consented Robert F. Taylor, Assistant Director in the Division to the issuance of the order in connection with its of Information Technology, retired on Thursday, alleged violations of the Board's Regulations imple- July 3, 2003, after more than thirty-two years at the menting the National Flood Insurance Act. Board and more than thirty-six years of government The order requires Citizens Bank and Trust Com- service. pany to pay a civil money penalty of $7,000, which will be remitted to the Federal Emergency Manage- David L. Williams, Associate Director in the Manment Agency for deposit into the National Flood agement Division, retired in July after more than Mitigation Fund. thirty years of service to the Board. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

331 Legal Developments FINAL RULE—AMENDMENT TO RULES OF Section 203.4—Compilation of Loan Data ORGANIZATION 4(a) Data Format and Itemization. The Board of Governors of the Federal Reserve System (the Board) has revised its definition of a quorum of the Board and incorporated the new quorum provision into the Board's Rules of Organization. The amendment is 4. Transition rules for applications received before Janudesigned to enhance the Board's ability to perform its ary I, 2004, when final action is taken on or after functions in the event of a national emergency, and would January 1, 2004. For applications received before Janunot alter the number of Board members required to constiary 1, 2004, on which final action is taken on or after tute a quorum in normal operating environments. January 1, 2004, data must be collected and reported on Effective April 29, 2003, section 2 of the Board's Rules the HMDA/LAR under the revisions to Regulation C of Organization is amended as follows: that take effect on January 1, 2004, subject to the exceptions for property type, loan purpose, requests for Section 2—Composition, Location, and Public preapproval, applicant information, and rate spread set Information forth in this comment. i. Property type. Lenders need not determine whether an application received before January 1, 2004, (b) Quorum. A majority of the members in office consti- involves a manufactured home, and may report the tutes a quorum of the Board for purposes of transacting property type as 1- to 4-family. business except that, if there are five members in ii. Loan purpose. For applications received before office, then four members constitute a quorum. January 1, 2004, lenders may use the definitions of a home improvement loan and a refinancing that were in effect in 2003. For example, a lender need not report data on an application received before FINAL RULE—AMENDMENT TO REGULATION C January 1, 2004, for a dwelling-secured loan made for the purpose of home improvement, if the lender The Board of Governors is amending 12 C.F.R. Part 203, did not classify the loan as a home improvement its Regulation C (Home Mortgage Disclosure). The Board loan. Similarly, a lender may report data on an is publishing final amendments to the official staff comapplication for a refinancing received in 2003, mentary to Regulation C (Home Mortgage Disclosure). where the new obligation will be, but the existing The amendments provide transition rules for applications obligation was not, secured by a lien on a dwelling. received before January 1, 2004, on which final action is iii. Requests for preapproval. For requests received taken on or after January 1, 2004. before January 1, 2004, lenders need not report Effective June 27, 2003, 12 C.F.R. Part 203 is amended requests for preapproval (as that term is defined as follows: in section 203.2(b)(2) of the revised Regulation C) that do not result in a traditional loan application. Part 203—Home Mortgage Disclosure (Regulation C) Lenders may, at their option, report requests for preapproval that are denied or that are approved but 1. The authority citation for Part 203 continues to read as not accepted. In addition, lenders need not specify follows: whether an application for a home purchase loan involved a request for preapproval, and should use Authority: 12 U.S.C. 2801-2810. code 3 (Not Applicable) in the preapproval field on the HMDA/LAR. 2. In Supplement I to part 203, under Section 203.4— iv. Application information. For applications received Compilation of Loan Data, under 4(a) Data Format and before January 1, 2004, lenders must collect data on Itemization, a new paragraph 4 is added: race or national origin using the categories in effect in 2003, and must convert the data to the codes in effect in 2004 for reporting, using the following Supplement I to Part 203—Staff Commentary conversion guide: (A) Ethnicity. The revised Regulation C requires Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 Federal Reserve Bulletin • July 2003 lenders to request an applicant's ethnicity first (A) Example: Assume an application is received on (Hispanic or Latino, Not Hispanic or Latino), December 1, 2003; the rate lock occurs on and then to request the applicant's race. The December 26, 2003, and the loan is originated HMDA/LAR has been revised accordingly, so on January 15, 2004. The lender may report that ethnicity and race are distinct fields. NA (Not Applicable) for rate spread. (1) If the applicant's race was identified as (B) Example: Assume an application is received on Hispanic (code 4) in 2003, use code 1 December 15, 2003; the rate lock occurs on (Hispanic or Latino) for reporting ethnicity. January 3, 2004, and the loan is originated on (2) If the applicant's race was identified as January 15, 2004. The lender must calculate American Indian or Alaskan Native, Asian and report the rate spread in accordance with or Pacific Islander, Black, White, Other, or the rules in new section 202.4(a)(12) (see Not Applicable (codes 1, 2, 3, 5, 6, or 8) in 67 Federal Register 7222 (February 15, 2003, use code 4 (Not Applicable) for 2002); 67 Federal Register 43223 (June 27, reporting ethnicity. 2002)). (J) If the applicant did not provide information on race in a mail, Internet, or telephone application (code 7) in 2003, use code 3 (information not provided by applicant in JOINT FINAL RULE—AMENDMENT TO CUSTOMER mail, Internet, or telephone application) for IDENTIFICATION PROGRAMS FOR BANKS, reporting ethnicity. SAVINGS ASSOCIATIONS, CREDIT UNIONS AND (B) Race. CERTAIN NON-FEDERALLY REGULATED BANKS (/) If the applicant's race was identified as American Indian or Alaskan Native, Black, The Department of the Treasury, through the Financial or White in 2003, use the corresponding Crimes Enforcement Network (FinCEN), together with code for 2004. For example, if the appli- the Office of the Comptroller of the Currency (OCC), cant's race was identified as Black (code 3) the Board of Governors of the Federal Reserve System in 2003, use code 3 (Black or African- (Board), the Federal Deposit Insurance Corporation American) for reporting race in 2004. (FDIC), the Office of Thrift Supervision (OTS), and the (2) If the applicant's race was identified as National Credit Union Administration (NCUA) (collec- Asian or Pacific Islander in 2003, use tively, the Agencies), have jointly adopted a final rule to code 2 (Asian). implement section 326 of the Uniting and Strengthening (5) If the applicant's race was identified as America by Providing Appropriate Tools Required to Inter- Hispanic in 2003, use code 7 (Not cept and Obstruct Terrorism (USA PATRIOT) Act of 2001 Applicable). (the Act). Section 326 requires the Secretary of the Trea- (4) If the applicant's race was identified as sury (Secretary) to jointly prescribe with each of the Agen- Other in 2003, use code 7 (Not Applica- cies, the Securities and Exchange Commission (SEC), ble). and the Commodity Futures Trading Commission (CFTC), (5) If the applicant did not provide information a regulation that, at a minimum, requires financial instion race in a mail, Internet, or telephone tutions to implement reasonable procedures to verify the application (code 7) in 2003, use code 6 identity of any person seeking to open an account, to (Information not provided by applicant in the extent reasonable and practicable; maintain records of mail, Internet, or telephone application). the information used to verify the person's identity; and (6) If the applicant's race was identified as Not determine whether the person appears on any lists of Applicable (code 8) in 2003, use code 7 known or suspected terrorists or terrorist organizations (Not Applicable). provided to the financial institution by any govern- (C) Sex. For applications received before Janu- ment agency. This final regulation applies to banks, savary 1, 2004, in which there is no co-applicant, ings associations, credit unions, private banks, and trust the lender may use code 4 (Not Applicable) in companies. the field provided for the co-applicant's sex. The text of the other Agencies' final rules can be found v. Rate Spread. For applications received before Janu- in 12 C.F.R. Parts 21, 326, 563, 748, and 31 C.F.R. Part ary 1, 2004, in which the rate lock occurred before 103, and was published in the Federal Register on May 9, January 1, 2004, lenders may report NA (Not Appli- 2003 (68 Federal Register 25089 (2003)). The Board cable) for rate spread. For applications received adopted the amendment to Regulation H, Membership of before January 1, 2004, for which the rate lock State Banking Institutions in the Federal Reserve System, occurred after January 1, 2004, lenders must calcu- and Regulation K, International Banking Operations, 12 late and report the rate spread in accordance with C.F.R. Parts 208 and 211, on April 21, 2003. the rules set forth in new section 202.4(a)(12) (see Effective June 9, 2003, 12 C.F.R. Parts 208 and 211 are 67 Federal Register 7222 (February 15, 2002); amended as follows. Any transactions settled on or after 67 Federal Register 43223 (June 27, 2002)). October 1, 2003, are subject to this final rule. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 333 Part 208—Membership of State Banking Institutions 2. In section 211.5, add new paragraph (m) to read as in the Federal Reserve System (Regulation H) follows: Subpart F—Miscellaneous Requirements Section 211.5—Edge and agreement corporations. 1. The authority citation for Part 208 continues to read as follows: (m) Procedures for monitoring Bank Secrecy Act. (1) [Reserved] Authority: 12 U.S.C. 24, 24a, 36, 92a, 93a, 248(a), 248(c), (2) Customer identification program. Each Edge or 321-338a, 371d, 461, 481-486, 601, 611, 1814, 1816, agreement corporation is subject to the require- 1818, 1820(d)(9), 1823(j), 1828(o), 1831, 1831o, 1831p-l, ments of 31 U.S.C. §5318(/) and the imple- 1831r-l, 1831w, 1831x, 1835a, 1843(0, 1882, 2901-2907, menting regulation jointly promulgated by the 3105, 3310, 3331-3351, and 3906-3909; 15 U.S.C. 78b, Board and the Department of the Treasury at 781(b), 781(g), 781(i), 78o-4(c)(5), 78q, 78q-l, and 78w; 31 C.F.R. 103.121, which require a customer 31 U.S.C. 5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106, and identification program. 4128. 3. In section 211.24, add new paragraph (j) to read as 2. Revise section 208.63(b) to read as follows: follows: Section 208.63—Procedures for monitoring Bank Section 211.24—Approval of offices of foreign banks; Secrecy Act compliance. procedures for applications; standards for approval; representative office activities and standards for approval; preservation of existing authority. (b) Establishment of BSA compliance program. (1) Program requirement. Each bank shall develop and provide for the continued administration of a (j) Procedures for monitoring Bank Secrecy Act program reasonably designed to ensure and moni- compliance. tor compliance with the recordkeeping and report- (1) [Reserved] ing requirements set forth in subchapter II of chap- (2) Customer identification program. Except for a fedter 53 of title 31, United States Code, the Bank eral branch or a federal agency or a state branch Secrecy Act, and the implementing regulations that is insured by the FDIC, a branch, agency, or promulgated thereunder by the Department of the representative office of a foreign bank operating in Treasury at 31 C.F.R. Part 103. The compliance the United States is subject to the requirements of program shall be reduced to writing, approved by 31 U.S.C. §5318(0 and the implementing reguthe board of directors, and noted in the minutes. lation jointly promulgated by the Board and the (2) Customer identification program. Each bank is Department of the Treasury at 31 C.F.R. 103.121, subject to the requirements of 31 U.S.C. §5318(0 which require a customer identification program. and the implementing regulation jointly promulgated by the Board and the Department of the Treasury at 31 C.F.R. 103.121, which require a customer identification program to be implemented FINAL RULE—AMENDMENT TO as part of the BSA compliance program required REGULATION CC under this section. The Board of Governors is amending 12 C.F.R. Part 229, its Regulation CC (Availability of Funds and Collection of Checks). The Board is publishing a final amendment to appendix A of Regulation CC that updates the routing numbers for Federal Reserve Banks and Federal Home Part 211—International Banking Operations Loan Banks. Banks generally must provide next-day or (Regulation K) second-day availability for checks drawn on these routing numbers. This amendment also reorganizes and clarifies 1. The authority citation for Part 211 is revised to read as existing information in the introductory material preceding follows: the routing number list. The Board also is providing information about a series Authority: 12 U.S.C. 221 et seq., 1818, 1835a, 1841 et seq., of future amendments that the Board will make to 3101 et seq., and 3901 et seq.-, 15 U.S.C. 6801 and 6805; appendix A to reflect the restructuring of check processing 31 U.S.C. 5318. functions within the Federal Reserve System. These Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 Federal Reserve Bulletin • July 2003 amendments collectively will reduce the number of check C. Each Federal Reserve check processing office is listed processing regions listed in appendix A from 44 to 32, below, followed by the Federal Reserve routing symthereby resulting in more checks in the affected regions bols of the banks that are located within the checkbeing local to one another. These amendments will take processing region served by that office. Because some effect on a staggered basis beginning in the second half of check processing regions cross Federal Reserve Dis- 2003 and ending in late 2004. The Board will publish each trict lines, there are some cases in which banks in amendment in the Federal Register at least 60 days before different Federal Reserve Districts are located in the the effective date. same check-processing region and therefore considered Effective June 27, 2003, 12 C.F.R. Part 229 is amended local to each other. For example, banks in Fairfield as follows: County, Connecticut are located in Second District and have Second District routing numbers (0211 or 2211), but the Windsor Locks office of the First District pro- Part 229—Availability of Funds and Collection of cesses the checks of these banks. Thus, as indicated Checks (Regulation CC) below, checks drawn on banks with 0211 or 2211 routing numbers would be local for First District banks 1. The authority citation for Part 229 continues to read as served by the Windsor Locks office but would be follows: nonlocal for other Second District depositary banks. Authority: 12 U.S.C. §4001 et seq. 2. Appendix A to Part 229 is amended as follows: Federal Reserve Banks a. Introductory paragraphs A and B are revised and a new 0110 0001 5 0720 0029 0 paragraph C is added. 0111 0048 1 0730 0033 8 b. The heading and text of the Federal Reserve Offices 0210 0120 8 0740 0020 1 routing list are revised. 0212 0400 5 0750 0012 9 c. The Federal Home Loan Bank routing number list is 0213 0500 1 0810 0004 5 revised. 0220 0026 6 0820 0013 8 0310 0004 0 0830 0059 3 The additions and revisions read as follows: 0410 0001 4 0840 0003 9 0420 0043 7 0910 0008 0 Appendix A to Part 229—Routing Number Guide to 0430 0030 0 0920 0026 7 Next-Day Availability Checks and Local Checks. 0440 0050 3 1010 0004 8 0510 0003 3 1020 0019 9 A. Each bank is assigned a routing number by Thomson 0519 0002 3 1030 0024 0 Financial Publishing Inc., as agent for the American 0520 0027 8 1040 0012 6 Bankers Association. The routing number takes two 0530 0020 6 1110 0003 8 forms: a fractional form and a nine-digit form. A pay- 0539 0008 9 1120 0001 1 ing bank generally is identified on the face of a check 0610 0014 6 1130 0004 9 by its routing number in both the fractional form (which 0620 0019 0 1140 0072 1 generally appears in the upper right-hand corner of the 0630 0019 9 1210 0037 4 check) and the nine-digit form (which is printed in 0640 0010 1 1220 0016 6 magnetic ink along the bottom of the check). Where a 0650 0021 0 1230 0001 3 check is payable by one bank but payable through 0660 0010 9 1240 0031 3 another bank, the routing number appearing on the 0710 0030 1 1250 0001 1 check is that of the payable-through bank, not the payor 0711 0711 0 bank. B. The first four digits of the nine-digit routing number Federal Home Loan Banks (and the denominator of the fractional routing number) form the "Federal Reserve routing symbol," and the 0110 0053 6 0740 0101 9 first two digits of the routing number identify the 0212 0639 1 0810 0091 9 Federal Reserve District in which the bank is located. 0260 0973 9 0910 0091 2 Thus, 01 will be the first two digits of the routing 0410 0291 5 1010 0091 2 number of a bank in the First Federal Reserve District 0420 0091 6 1011 0194 7 (Boston), and 12 will be the first two digits of the 0430 0143 5 1110 1083 7 routing number of a bank in the Twelfth District 0430 1862 2 1119 1083 0 (San Francisco). Adding 2 to the first digit denotes a 0610 0876 6 1210 0070 1 thrift institution. Thus, 21 identifies a thrift in the First 0710 0450 1 1240 0287 4 District, and 32 denotes a thrift in the Twelfth District. 0730 0091 4 1250 0050 3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 335 ORDERS ISSUED UNDER BANK HOLDING tutions in the state ("state deposits").4 BB&T is the sixth COMPANY ACT largest commercial banking organization in Maryland with deposits of $3.3 billion, representing 5.1 percent of state Orders Issued Under Sections 3 and 4 of the Bank deposits; and the eleventh largest commercial banking Holding Company Act organization in Tennessee with deposits of $873.5 million, representing 1.2 percent of state deposits. BB&T Corporation First Virginia, with total consolidated assets of $11.2 bil- Winston-Salem, North Carolina lion, is the sixty-fourth largest commercial banking organization in the United States. First Virginia operates sub- Order Approving the Merger of Bank Holding sidiary depository institutions in Virginia, Maryland, and Companies Tennessee. First Virginia is the sixth largest commercial banking organization in Virginia with deposits of $7.4 bil- BB&T Corporation ("BB&T"), a financial holding com- lion, representing approximately 7.2 percent of total state pany within the meaning of the Bank Holding Company deposits; the tenth largest commercial banking organiza- Act ("BHC Act"), has requested the Board's approval tion in Maryland with deposits of $1.3 billion, representunder section 3 of the BHC Act (12 U.S.C. §1842) to ing 2 percent of state deposits; and the forty-third largest merge with First Virginia Banks, Inc. ("First Virginia"), a commercial banking organization in Tennessee with deposbank holding company, and thereby acquire First Virgin- its of $251.8 million, representing less than 1 percent of ia's subsidiary banks, including its lead subsidiary bank, state deposits. First Virginia Bank, both in Falls Church, Virginia.1 On consummation of the proposal and after accounting BB&T, as permitted by section 4 of the BHC Act, also has for the proposed divestitures noted in this order, BB&T elected to request the Board's approval under sec- would become the fifteenth largest commercial banking tion 4(c)(8) and (j) of the BHC Act (12 U.S.C. § 1843(c)(8) organization in the United States with total consolidated and (j)) and sections 225.28(b)(3), (ll)(i), and (12) of the assets of $93.4 billion, representing approximately 1.1 per- Board's Regulation Y (12 C.F.R. 225.28(b)(3), (ll)(i), and cent of total U.S. banking assets. Also, BB&T would (12)) to acquire certain nonbanking subsidiaries of First become the second largest commercial banking organiza- Virginia, and thereby engage in permissible leasing, credit- tion in Virginia with deposits of $16.1 billion, representing related insurance, and community development activities.2 approximately 15.6 percent of state deposits; would remain Notice of the proposal, affording interested persons the sixth largest commercial banking organization in Maryan opportunity to submit comments, has been published land with deposits of $4.5 billion, representing 7 percent of (68 Federal Register 13,709 (2003)). The time for filing state deposits; and would become the ninth largest comcomments has expired, and the Board has considered the mercial banking organization in Tennessee with deposits of proposal in light of the factors set forth in sections 3 and 4 $1.1 billion, representing 1.5 percent of state deposits. of the BHC Act. BB&T, with total consolidated assets of approximately $80.2 billion, is the eighteenth largest commercial banking Interstate Analysis organization in the United States.3 BB&T operates subsidiary depository institutions in North and South Carolina, Section 3(d) of the BHC Act allows the Board to approve Virginia, West Virginia, Kentucky, Georgia, Maryland, an application by a bank holding company to acquire Tennessee, Alabama, Indiana, and Florida. In Virginia, control of a bank located in a state other than the home BB&T is the fourth largest commercial banking organizastate of the bank holding company if certain conditions are tion with deposits of $9 billion, representing approximately met.5 For purposes of the BHC Act, the home state of 8.6 percent of total deposits in insured depository insti- BB&T is North Carolina, and First Virginia's subsidiary banks are located in Maryland, Virginia, and Tennessee.6 Based on a review of all the facts of record, including a 1. BB&T also would acquire the following subsidiary state memreview of relevant state statutes, the Board finds that all ber banks of First Virginia: Atlantic Bank, Ocean City, and Farmers Bank of Maryland, Annapolis, both in Maryland; and First Virginia conditions for an interstate acquisition enumerated in sec- Bank-Blue Ridge, Staunton; First Virginia Bank/Tri-Cities, Bristol; First Virginia Bank-Colonial, Richmond; First Virginia Bank- Hampton Roads, Norfolk; and First Virginia Bank-Southwest, 4. Deposit and ranking data are as of June 30, 2002, and reflect Roanoke, all in Virginia. BB&T initially would own First Virginia's mergers and acquisitions as of February 25, 2003. In this context, subsidiary banks as direct subsidiaries. BB&T subsequently would depository institutions include commercial banks, savings banks, and reorganize the branch structure of the acquired subsidiary banks savings associations. through consolidations, mergers, and purchase-and-assumption trans- 5. See 12 U.S.C. § 1842(d). A bank holding company's home state actions, subject to obtaining all appropriate regulatory approvals. is the state in which the total deposits of all banking subsidiaries of 2. In addition, BB&T would acquire First Virginia Insurance Ser- such company were the largest on the later of July 1, 1966, or the date vices, Inc., also in Falls Church, an insurance agency that is a direct on which the company became a bank holding company. 12 U.S.C. subsidiary of First Virginia, pursuant to section 4(k) of the BHC Act §1841(o)(4)(C). (12 U.S.C. § 1843(k)) and the post-transaction notice procedures of 6. For purposes of section 3(d) of the BHC Act, the Board considsection 225.87 of Regulation Y (12 C.F.R. 225.87). ers a bank to be located in the states in which the bank is chartered, 3. Asset and ranking data are as of December 31, 2002. headquartered, or operates a branch. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 Federal Reserve Bulletin • July 2003 tion 3(d) are met in this case.7 In light of all the facts of lines ("DOJ Guidelines"),11 other characteristics of the record, the Board is permitted to approve the proposal markets, and commitments made by BB&T to divest cerunder section 3(d) of the BHC Act. tain branches.12 A. Certain Banking Markets without Divestitures Competitive Consideration Consummation of the proposal without divestitures would be consistent with Board precedent and within the thresh- Section 3 of the BHC Act prohibits the Board from approv- olds in the DOJ Guidelines in eighteen banking markets.13 ing a proposal that would result in a monopoly or would be After consummation of the proposal, one banking market in furtherance of any attempt to monopolize the business of would remain unconcentrated, as measured by the HHI, ten banking in any relevant market. The BHC Act also prohib- markets would remain moderately concentrated, and seven its the Board from approving a proposed bank acquisition markets would remain highly concentrated, but with only that would substantially lessen competition in any relevant modest increases in concentration. banking market, unless the Board finds that the anticompetitive effects of the proposal are clearly outweighed in B. Certain Banking Markets with Divestitures the public interest by the probable effect of the proposal in meeting the convenience and needs of the community to be To mitigate the potential for adverse effects on competition served.8 in five banking markets, BB&T has committed to divest BB&T and First Virginia compete directly in twentyto an out-of-market commercial banking organization nine local banking markets located primarily in Maryland branches that control sufficient deposits to make the proand Virginia.9 The Board has reviewed carefully the composal consistent with Board precedent and within the petitive effects of the proposal in each of these banking thresholds in the DOJ Guidelines.14 After consummation, markets in light of all the facts of record. In particular, the and accounting for the proposed divestitures, concentration Board has considered the number of competitors that would in the Sussex and Surry banking markets would not remain in the markets, the relative shares of total deposits increase, and the increases in concentration in the Farmin depository institutions in the markets ("market deposville, Tazewell, and Roanoke (as redefined) banking marits") controlled by BB&T and First Virginia,10 the concentration level of market deposits and the increase in this level as measured by the Herfindahl-Hirschman Index 11. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a market is considered unconcentrated if the post-merger HHI is less ("HHI") under the Department of Justice Merger Guidethan 1000, moderately concentrated if the post-merger HHI is between 1000 and 1800, and highly concentrated if the post-merger HHI is more than 1800. The Department of Justice has informed the Board that a bank merger or acquisition generally will not be challenged (in 7. BB&T is adequately capitalized and adequately managed, as the absence of other factors indicating anticompetitive effects) unless defined by applicable law. In addition, BB&T would control less than the post-merger HHI is at least 1800 and the merger increases the HHI 10 percent of the total amount of deposits of insured depository by more than 200 points. The Department of Justice has stated that the institutions in the United States on consummation of the proposal. See higher than normal HHI thresholds for screening bank mergers for 12 U.S.C. § 1842(d)(1)(A) & (B), 1842(d)(2)(A) & (B). BB&T would anticompetitive effects implicitly recognize the competitive effects of control less than 30 percent of the total deposits of insured depository limited-purpose lenders and other nondepository financial institutions. institutions in each of Maryland, Tennessee, and Virginia. Each of 12. With respect to each market in which BB&T has committed to First Virginia's subsidiary depository institutions located in a state divest offices to mitigate the anticompetitive effects of the proposal, with a minimum age requirement has been in existence and operated BB&T will execute, before consummation of the proposal, a sales continuously for at least the period of time required by applicable state agreement for the proposed divestiture with a purchaser determined law. In addition, North Carolina law permits the acquisition by an by the Board to be competitively suitable and to complete the divestiout-of-state bank holding company of a bank holding company or ture within 180 days after consummation of the proposal. BB&T bank located in North Carolina on a reciprocal basis. All the condi- also has committed that, if it is unsuccessful in completing any tions for interstate acquisitions enumerated in Maryland, Virginia, and divestiture within 180 days after consummation, it will transfer the Tennessee law are met in this case. See Md. Financial Institutions unsold branch(es) to an independent trustee that is acceptable to the Code Ann. §5-905 (2002); N.C. Gen. Stat. § 53-211 (2003); Va. Code Board and will instruct the trustee to sell the branch(es) promptly Ann. §6.1-399 (2003); and Tenn. Code Ann. §45-2-1403 & 1404 to one or more alternative purchasers acceptable to the Board. See (2002). BankAmerica Corporation, 78 Federal Reserve Bulletin 338 (1992); 8. 12 U.S.C. § 1842(c)(1). United New Mexico Financial Corporation, 77 Federal Reserve Bulle- 9. These banking markets are described in Appendix A. tin 484 (1991). In addition, BB&T has committed to submit to the 10. Market share data are as of June 30, 2002, and are based on Board, before consummation of the proposal, an executed trust agreecalculations in which the deposits of thrift institutions are included at ment acceptable to the Board stating the terms of the divestitures. 50 percent, except as discussed in the order. The Board previously has 13. Market data for these banking markets are provided in Appenindicated that thrift institutions have become, or have the potential dix B. to become, significant competitors of commercial banks. See, e.g., 14. The Board has redefined one of these banking markets, the Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); Roanoke banking market to include Franklin County. In taking this National City Corporation, 70 Federal Reserve Board 743 (1984). action, the Board considered worker patterns as indicated by commut- Thus, the Board regularly has included thrift deposits in the market ing data; newspaper circulation; information provided by the Franklin share calculation on a 50 percent weighted basis. See, e.g, First County Chamber of Commerce, the County Administration Office, Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). and the Economic Development Board; and other relevant data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 337 kets would not exceed the threshold levels in the DOJ pany that would control more than 11 percent of market Guidelines.15 deposits. The attractiveness of the Alleghany banking market for C. Remaining Banking Markets entry has been demonstrated by the de novo entry of two competitors to the market since 2002.19 In addition, the Consummation of the proposal would exceed the threshold Alleghany banking market exceeds the average for nonlevels in the DOJ Guidelines in the following markets: Metropolitan Statistical Area ("MSA") counties in Vir- Alleghany,16 Franklin City, and Shenandoah, all with pro- ginia with respect to deposits per banking office and per posed divestitures; and Warren, Fredericksburg, and Blue- capita income.20 field,17 all without proposed divestitures. In each of these markets, the Board has carefully considered whether other Franklin City. BB&T operates the largest depository factors either mitigate the competitive effects of the pro- institution in the market, controlling deposits of $94.2 milposal or indicate that the proposal would have a signifi- lion, representing approximately 37.5 percent of market cantly adverse effect on competition in the market.18 deposits. First Virginia operates the fifth largest depository institution in the market, controlling deposits of $33.3 mil- Alleghany. BB&T operates the largest depository institu- lion, representing approximately 13.2 percent of market tion in the market, controlling deposits of $144.9 million, deposits. To reduce the potential for adverse competitive representing approximately 34 percent of market deposits. effects in this banking market, BB&T has committed to First Virginia operates the second largest depository insti- divest one branch, with $20.1 million in deposits, repretution in the market, controlling deposits of $126 million, senting approximately 8 percent of market deposits, to an representing approximately 29.5 percent of market depos- out-of-market commercial banking organization. After the its. To reduce the potential for adverse competitive effects proposed merger and divestiture, BB&T would remain the in this banking market, BB&T has committed to divest two largest depository institution in the market, controlling branches in the market, with deposits totaling $90.9 mil- deposits of approximately $107.3 million, representing lion, and representing approximately 21.3 percent of mar- 42.7 percent of market deposits. The HHI would increase ket deposits, to an out-of-market commercial banking orga- by 308 points to 2712. nization. After the proposed merger and divestiture, BB&T In reviewing the competitive effects of the proposal in would remain the largest depository institution in the mar- the Franklin City banking market and the adequacy of the ket, controlling deposits of approximately $179.9 million, proposed divestiture, the Board also has taken into account representing 42.2 percent of market deposits. The HHI the structure of the market. After consummation of the would increase by 208 points to 2636. proposal, four of BB&T's bank competitors would operate Certain factors indicate that the increase in market con- in the market. Three of these competitors each would centration in the Alleghany banking market, as measured control 13 percent or more of market deposits, including by the HHI, does not reflect a significantly adverse effect two large multistate banking organizations that would conon competition. On consummation of the proposed merger trol 18.7 percent and 13.3 percent of market deposits. and divestiture, four of the seven commercial banking The Board also has considered that the market has a organizations that would compete with BB&T each would large and active credit union that offers a full range of retail control more than 10 percent of market deposits, including banking products. This credit union has street-level a competitor that would control more than 21 percent of branches accessible to the public and its membership is market deposits and a large multistate bank holding com- open to a substantial majority of the population of the market.21 The Board concludes that this credit union exerts a competitive influence that mitigates, in part, the potential anticompetitive effects of the proposal. 15. Market data for these banking markets are provided in Appendix C. 16. The Board also has redefined the Alleghany banking market to Shenandoah. BB&T operates the third largest deposiinclude Bath County, which formerly was designated as a separate tory institution in the market, controlling deposits of banking market. In taking this action, the Board considered worker $48.2 million, representing approximately 12.8 percent of commuting patterns (as indicated by census data), shopping patterns, market deposits. First Virginia operates the largest deposiand other indicia of economic integration, including relevant banking tory institution in the market, controlling deposits of data from local chambers of commerce and banks. 17. The Board divided the former Bluefield banking market into the Bluefield and the Tazewell banking markets as redefined in Appen- 19. As of June 30, 2002, a branch that opened in the market in dix A. In taking this action, the Board reviewed worker data, includ- February 2002 already controlled $8.9 million in deposits, representing commuting data for Bluefield, Virginia, and the remainder of ing 2.1 percent of market deposits. A third competitor is expected to Tazewell County; shopping patterns; newspaper circulation; and data enter the market through a de novo branch in the fourth quarter of from local institutions and other information related to the availability 2003. of banking services. 20. The average amount of deposits per banking office for non- 18. The Board previously has indicated that the number and MSA counties in Virginia is $23 million, compared with $35.6 million strength of factors necessary to mitigate the competitive effects of a for the Alleghany banking market. Per capita income in the Alleghany proposal depend on the level of concentration and size of the increase market exceeds that of non-MSA counties in Virginia by $2,916. in market concentration. See NationsBank Corporation, 84 Federal 21. This credit union accounts for 15.4 percent of total deposits in Reserve Bulletin 129 (1998). the market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 Federal Reserve Bulletin • July 2003 $102.1 million, representing approximately 27.1 percent of addition, four of the seven depository institution compemarket deposits. To reduce the potential for adverse com- titors of BB&T each would control more than 10 percent petitive effects in this banking market, BB&T has commit- of market deposits, including a large multistate commerted to divest one branch with $12.1 million in deposits, cial banking organization that would control more than representing approximately 3.2 percent of market deposits, 20 percent. to an out-of-market commercial banking organization. After the proposed merger and divestiture, BB&T would Fredericksburg. BB&T operates the second largest operate the largest depository institution in the market, depository institution in the market, controlling deposits of controlling deposits of $138.2 million, representing $375.6 million, representing approximately 19.3 percent of 36.7 percent of market deposits. The HHI would increase market deposits. First Virginia operates the third largest by 458 points to 1970. depository institution in the market, controlling deposits The Board believes that certain factors mitigate the of $252.6 million, representing approximately 13 percent potential anticompetitive effects of the proposal in the of market deposits. After the proposed merger, BB&T Shenandoah banking market. Two thrift institutions operat- would operate the largest depository institution in the maring in the market offer a full range of banking products and ket, controlling deposits of $628.2 million, representing services, including commercial loans. Based on a review 32.3 percent of market deposits. The HHI would increase of their activities, the Board has concluded that deposits by 501 points to 1841. controlled by these institutions should be weighted at Although the increase in concentration, as measured by 100 percent in considering the proposal's competitive the HHI, would be sizeable, the Board believes that several effects.22 In this light, BB&T would control 34 percent of factors mitigate the potential anticompetitive effects of the market deposits and the HHI would increase 394 points transaction. After consummation of this proposal, fourteen to 1782, which is within the threshold levels in the DOJ competitors besides BB&T would compete in the market, Guidelines.23 including three large multistate commercial banking organizations. Moreover, BB&T's largest competitor in the Warren. BB&T operates the largest depository institu- market would control more than 20 percent of market tion in the market, controlling deposits of $75.2 million, deposits, and another competitor would control approxirepresenting approximately 24.8 percent of market depos- mately 13 percent. its. First Virginia operates the sixth largest depository In addition, the attractiveness of the Fredericksburg institution in the market, controlling deposits of $22.5 mil- banking market has been indicated by the entry since 1998 lion, representing approximately 7.4 percent of market of three commercial banks and one savings bank through deposits. After the proposed merger, BB&T would remain de novo branching. Other factors also confirm that the the largest depository institution in the market, controlling market is attractive for entry. For example, from 1998 to deposits of $97.8 million, representing 32.2 percent of 2001, the population growth rate in the Fredericksburg market deposits. The HHI would increase by 368 points to banking market was 4.1 percent, which is more than twice 1900. the average for MSAs in Virginia. In addition, population A number of factors indicate that the increase in market per banking office in Fredericksburg exceeds the Virginia concentration in the Warren banking market, as measured MSA average. by the HHI, does not reflect a significantly adverse effect on competition. In particular, the two thrifts discussed Bluefield. BB&T operates the second largest deposiabove also compete in the Warren market, and their depos- tory institution in the market, controlling deposits of its likewise been weighted at 100 percent. In this light, $262.6 million, representing approximately 25.7 percent of BB&T would control 29.4 percent of market deposits market deposits. First Virginia operates the fifth largest and the HHI would increase 306 points to 1701, which depository institution in the market, controlling deposits is within the threshold levels in the DOJ Guidelines. In of $40.6 million, representing approximately 4 percent of market deposits. After the proposed merger, BB&T would 22. The Board previously has indicated that it may consider the remain the second largest depository institution in the competitiveness of a thrift institution at a level greater than 50 per- market, controlling deposits of $303.2 million, representcent of the savings association's deposits, if appropriate. See, e.g., ing 29.7 percent of market deposits. The HHI would Banknorth Group, Inc., 84 Federal Reserve Bulletin 489 (1998). One increase by 204 points to 2705. thrift is the largest thrift in the market, has a 10.7 percent ratio of commercial and industrial loans to assets, and is actively expand- Certain factors suggest that the increase in market coning its commercial lending activities. See Wells Fargo & Company, centration, as measured by the HHI, in the Bluefield bank- 88 Federal Reserve Bulletin 103, 107 n.34 (2002). The other thrift ing market does not reflect a significantly adverse effect also is aggressively increasing its commercial lending activities. Since on competition. After consummation of this proposal, five June 2000, this thrift has more than quadrupled the size of its commercial loan portfolio and has more than doubled its ratio of commercial commercial banking organizations besides BB&T would and industrial loans to assets to 5.9 percent. Id. compete in the market. The largest competitor in the mar- 23. In addition, the characteristics of the Shenandoah banking ket would control more than 37 percent of market deposits, market indicate that it is attractive for entry. Per capita income, and two other competitors each would control more than deposits per banking office, and increases in population in the market 11 percent. Moreover, the only two competitors in the exceed the average increases in these statistical categories for nonmarket with market shares below 11 percent are commer- MSA counties in Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 339 cial banking organizations that entered the market in the Nonbanking Activities second half of 2001 through de novo branching. BB&T also has filed a notice under section 4(c)(8) and (j) of the BHC Act (12 U.S.C. § 1843(c)(8) and (j)) to acquire D. Views of Other Agencies and Conclusion certain nonbanking subsidiaries of First Virginia.25 The leasing, credit-related insurance, and community develop- The Department of Justice also has conducted a detailed ment activities that BB&T proposes to engage in are perreview of the competitive effects of the proposal. The missible for bank holding companies under Regulation Y.26 Department has advised the Board that in light of the BB&T has committed to conduct these nonbanking activiproposed divestitures, consummation of the proposal ties in accordance with the limitations set forth in Regulawould not have a significantly adverse effect on competi- tion Y and the Board's orders and interpretations. tion in any relevant banking market. The Federal Deposit In order to approve this notice, the Board is required Insurance Corporation ("FDIC") has been afforded an by section 4(j)(2)(A) of the BHC Act to determine that opportunity to comment and has not objected to consum- the performance of the proposed nonbanking activities by mation of the proposal. BB&T "can reasonably be expected to produce benefits After carefully reviewing all the facts of record and for to the public . . . that outweigh possible adverse effects, the reasons discussed in the order and appendices, the such as undue concentration of resources, decreased or Board has concluded that consummation of the proposal unfair competition, conflicts of interests, or unsound bankwould not result in a significantly adverse effect on com- ing practices." 27 petition or on the concentration of banking resources in any As part of its evaluation of these factors, the Board of the twenty-nine markets in which BB&T and First considers the financial and managerial resources of BB&T, Virginia both compete or in any other relevant banking its subsidiaries, and the companies to be acquired, and the market. Accordingly, based on all the facts of record and effect of the proposed transaction on those resources. For subject to completion of the proposed divestitures, the the reasons noted above, and based on all the facts of Board has determined that competitive factors are consis- record, the Board has concluded that financial and mantent with approval of the proposal. agerial considerations are consistent with approval of the notice. The Board also has considered the competitive effects of Other Factors BB&T's proposed acquisition of the nonbanking subsidiaries of First Virginia in light of all the facts of record. The Section 3 of the BHC Act requires the Board to consider markets for the credit-related insurance activities vary from the financial and managerial resources and future prospects local to national in scope. The record in this case indicates of the companies and banks involved in the proposal and that in each relevant market there are numerous providers other supervisory factors. The Board has carefully considof insurance services and that the markets for this nonbankered these factors in light of all the facts of record, including service are unconcentrated. For these reasons, and ing public comments, reports of examination and other based on all the facts of record, the Board expects that confidential supervisory information assessing the financial consummation of the proposal would have a de minimis and managerial resources of the two organizations, and effect on competition in the markets for the proposed other information provided by BB&T. services.28 Based on all the facts of record, the Board The Board notes that BB&T would remain well capitalized on consummation of the proposal. The Board also has ville, South Carolina (satisfactory) (February 1, 2002); Branch Bankcarefully reviewed reports of examination and other mateing and Trust Company of Virginia, Richmond, Virginia (satisfactory) rial related to the management record and resources of (February 1, 2002); and BB&T Bankcard Corporation, Columbus, BB&T. Georgia (satisfactory) (September 1, 2000). In addition, each of In light of all the facts of record, the Board concludes First Virginia's subsidiary banks received satisfactory ratings at their most recent CRA performance evaluations from the Federal Reserve that the financial and managerial resources and future System. prospects of the organizations involved in this proposal are 25. B&T proposes to acquire First Virginia Life Insurance Comconsistent with approval, as are the other supervisory fac- pany and First General Leasing Company, both in Falls Church, and tors that the Board must consider under section 3 of the the following community-welfare limited partnership interests: 28.3 percent in Northampton Partners L.P; 23.8 percent in Monticello BHC Act. In addition, considerations related to the conve- Vista Associates L.P.; 33.6 percent in Linweaver L.P; 9.7 percent in nience and needs of the communities to be served, includ- Housing Equity Fund of Virginia II L.P; and 11.7 percent in Housing ing the records of performance of the institutions involved Equity Fund of Virginia III L.P. under the Community Reinvestment Act ("CRA"), are 26. See 12 C.F.R. 225.28(b)(3), (ll)(i), and (12). consistent with approval.24 27. 12 U.S.C. §1843(j)(2)(A). 28. First Virginia's leasing subsidiary, First General Leasing Company, also in Falls Church, has been inactive since 1999. As a result, 24. 12 U.S.C. §2901 et seq. BB&T's subsidiary depository institu- the acquisition of First General Leasing Company by BB&T would tions received the following CRA performance evaluation ratings not have any impact on the competition for leasing services in any from the FDIC as of the dates indicated: Branch Banking and Trust relevant market. Also, BB&T's acquisition of First Virginia's inter- Company, Winston-Salem, North Carolina (outstanding) (March 1, ests in community-welfare limited partnerships would not have anti- 2002); Branch Banking and Trust Company of South Carolina, Green- competitive effects in any relevant market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 Federal Reserve Bulletin • July 2003 concludes that it is unlikely that significantly adverse com- Appendix A petitive effects would result from the nonbanking acquisitions proposed in this transaction. Banking Markets in which BB&T and First Virginia Com- BB&T has indicated that consummation of this proposal pete Directly would give it an opportunity to offer an expanded array of insurance products and services to individuals in seven Virginia Banking Markets banking markets in Virginia and Maryland in which BB&T did not previously compete for insurance business. BB&T Abingdon states that current customers of First Virginia's insurance services would benefit from the enhanced selection of Washington County, excluding the Johnson City/Kingsport/ insurance products and services that they would receive Bristol, Tennessee/Virginia, Ranally Metropolitan Area from BB&T's extensive insurance operations.29 ("RMA") portion. The Board also concludes that the conduct of the proposed nonbanking activities within the framework of Reg- Alleghany ulation Y and Board precedent is not likely to result in Alleghany and Bath Counties. adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices, that would outweigh the public Bluefield benefits of the proposal, such as increased customer conve- Mercer County, West Virginia, and the area north of and nience and gains in efficiency. Accordingly, based on all including Bluefield, Virginia. the facts of record, the Board has determined that the balance of public interests factors that the Board must Charlottesville consider under section 4(j)(2)(A) of the BHC Act is favor- The Charlottesville RMA; the City of Charlottesville; the able and consistent with approval of this proposal. non-RMA portion of Albemarle County; the Town of Louisa in Louisa County, and Fluvanna, Greene, and Nel- Conclusion son Counties. Based on the foregoing and all the facts of record, the Culpeper Board has determined that the application and notices should be, and hereby are, approved. The Board's approval Culpeper County. is specifically conditioned on compliance by BB&T with all commitments made in connection with the proposal, Danville including the divestiture commitments discussed in the order. For purposes of this action, the commitments and The Danville RMA, the City of Danville, and the nonconditions referred to in this order are deemed to be RMA portion of Pittsylvania County, excluding the small conditions imposed in writing by the Board in connec- area around Hurt. tion with its findings and decision and, as such, may be enforced in proceedings under applicable law. Farmville The proposed banking acquisitions may not be consum- Cumberland and Prince Edward Counties. mated before the fifteenth calendar day after the effective date of this order, and the proposal may not be consummated later than three months after the effective date of this Franklin City order, unless such period is extended for good cause by the Board or the Federal Reserve Bank of Richmond, acting The City of Franklin and Southampton County. pursuant to delegated authority. By order of the Board of Governors, effective May 13, Fredericksburg 2003. The City of Fredericksburg; Caroline, King George, Spotsylvania, and Stafford Counties, excluding the Washington, Voting for this action: Chairman Greenspan and Governors Gram- D.C., RMA portion; and the Towns of Lake Anna, Cololich, Bies, Olson, Bernanke, and Kohn. Absent and not voting: Vice nial Beach, Leedstown, Oak Grove, and Potomac Beach. Chairman Ferguson. Galax ROBERT DEV. FRIERSON Deputy Secretary of the Board City of Galax and Grayson and Carroll Counties, excluding the Mount Airy, North Carolina/Virginia, banking market portion. 29. For example, BB&T reports that BB&T Insurance Services, Harrisonburg Inc., Raleigh, North Carolina, is the nation's tenth largest insurance agency. The City of Harrisonburg and Rockingham County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 341 Lynchburg Warren The Lynchburg RMA, the City of Lynchburg, and the Warren County. non-RMA portions of Amherst and Campbell Counties. Winchester Mecklenburg The City of Winchester; Clarke and Frederick Counties, Mecklenburg County. Virginia, and Hampshire County, West Virginia; and the Town of Strasburg. Newport News-Hampton The Newport News-Hampton RMA; the Cities of Newport Maryland Banking Markets News, Hampton, Poquoson, and Williamsburg; the non- RMA portion of James City County; and Mathews County. Annapolis Norfolk-Portsmouth The Annapolis RMA, including the City of Annapolis. The Norfolk-Portsmouth RMA; the Cities of Norfolk, Baltimore Portsmouth, Chesapeake, Suffolk, and Virginia Beach; and Currituck County, North Carolina. The Baltimore RMA; the City of Baltimore; the non-RMA portion of Harford County; and Carroll County, excluding Orange the Washington, D.C., RMA portion. Orange County. Washington, D.C. Banking Market The Washington, D.C., RMA; the Cities of Alexandria, Richmond Fairfax, Falls Church, and Manassas, all in Virginia; the The Richmond RMA; the Cities of Richmond, Colonial non-RMA portions of Calvert, Charles, Frederick, and Heights, Hopewell, and Petersburg; Amelia, Charles City, St. Mary's Counties, all in Maryland, and Fauquier and King and Queen, King William, and New Kent Counties; Loudoun Counties, both in Virginia; and Jefferson County, the non-RMA portions of Chesterfield, Dinwiddie, Gooch- West Virginia. land, Hanover, Henrico, Powhatan, and Prince George Counties; and the Town of Mineral in Louisa County. Appendix B Roanoke The Roanoke RMA, the Cities of Roanoke and Salem, and Certain Banking Markets without Divestitutures the non-RMA portions of Botetourt, Franklin, and Roanoke Counties. Abingdon, Virginia BB&T operates the seventh largest depository institution in Russell the market, controlling deposits of $17.8 million, represent- Russell County. ing approximately 2.7 percent of market deposits. First Virginia operates the fifth largest depository institution in Shenandoah the market, controlling deposits of $45.6 million, representing approximately 7 percent of market deposits. After the Shenandoah County, excluding the Town of Strasburg. proposed merger, BB&T would operate the fifth largest depository institution in the market, controlling deposits of Staunton $63.4 million, representing approximately 9.8 percent of market deposits. The HHI would increase by 38 points to The Cities of Staunton and Waynesboro and August 2111. County. Surry Annapolis, Maryland Surry County. BB&T operates the ninth largest depository institution in the market, controlling deposits of $116.4 million, repre- Sussex senting approximately 5.6 percent of market deposits. First Virginia operates the second largest depository institution in the market, controlling deposits of $310 million, rep- Sussex County. resenting approximately 14.8 percent of market deposits. After the proposed merger, BB&T would operate the larg- Tazewell est depository institution in the market, controlling depos- Tazewell County, excluding Bluefield, Virginia, and the its of approximately $426.5 million, representing 20.4 perarea north of it. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 Federal Reserve Bulletin • July 2003 cent of market deposits. The HHI would increase by ing approximately 8.2 percent of market deposits. First 165 points to 1172. Virginia operates the sixth largest depository institution in the market, controlling deposits of $38.7 million, represent- Baltimore, Maryland/Pennsylvania ing approximately 6 percent of market deposits. After the proposed merger, BB&T would operate the third largest BB&T operates the seventh largest depository institution in depository institution in the market, controlling deposits of the market, controlling deposits of $949.4 million, repre- $91.9 million, representing 14.2 percent of market depossenting approximately 3.2 percent of market deposits. First its. The HHI would increase by 99 points to 2068. Virginia operates the twelfth largest depository institution in the market, controlling deposits of $390.9 million, repre- Harrisonburg, Virginia senting approximately 1.3 percent of market deposits. After the proposed merger, BB&T would operate the sixth larg- BB&T operates the second largest depository institution in est depository institution in the market, controlling depos- the market, controlling deposits of $204.8 million, repreits of $1.3 billion, representing 4.5 percent of market senting approximately 15.9 percent of market deposits. deposits. The HHI would increase by 8 points to 1155. First Virginia operates the seventh largest depository institution in the market, controlling deposits of $104.4 million, Charlottesville, Virginia representing approximately 8.1 percent of market deposits. After the proposed merger, BB&T would operate the larg- BB&T operates the third largest depository institution in est depository institution in the market, controlling deposthe market, controlling deposits of $302.8 million, repreits of $309.2 million, representing 24 percent of market senting approximately 13.3 percent of market deposits. deposits. The HHI would increase by 257 points to 1498. First Virginia operates the seventh largest depository institution in the market, controlling deposits of $95.7 million, representing approximately 4.2 percent of market deposits. Lynchburg, Virginia After the proposed merger, BB&T would remain the third BB&T operates the second largest depository institution in largest depository institution in the market, controlling the market, controlling deposits of $507.2 million, repredeposits of $398.5 million, representing 17.5 percent of senting approximately 20.3 percent of market deposits. market deposits. The HHI would increase by 111 points to First Virginia operates the sixth largest depository institu- 1791. tion in the market, controlling deposits of $108.5 million, representing approximately 4.4 percent of market deposits. Culpeper, Virginia After the proposed merger, BB&T would remain the second largest depository institution in the market, controlling BB&T operates the sixth largest depository institution in deposits of $615.7 million, representing 24.7 percent of the market, controlling deposits of $8.9 million, representmarket deposits. The HHI would increase by 177 points to ing approximately 1.9 percent of market deposits. First 2181. Virginia operates the fifth largest depository institution in the market, controlling deposits of $11.2 million, representing approximately 2.4 percent of market deposits. After the Mecklenburg, Virginia proposed merger, BB&T would operate the fourth largest BB&T operates the seventh largest depository institution in depository institution in the market, controlling deposits of the market, controlling deposits of $46.3 million, represent- $20.1 million, representing 4.3 percent of market deposits. ing approximately 8.1 percent of market deposits. First The HHI would increase by 9 points to 3479. Virginia operates the fourth largest depository institution in the market, controlling deposits of $54 million, represent- Danville, Virginia/North Carolina ing approximately 9.5 percent of market deposits. After the BB&T operates the seventh largest depository institution in proposed merger, BB&T would operate the third largest the market, controlling deposits of $67.3 million, represent- depository institution in the market, controlling deposits of ing approximately 4.9 percent of market deposits. First $100.3 million, representing 17.6 percent of market depos- Virginia operates the sixth largest depository institution in its. The HHI would increase by 155 points to 1796. the market, controlling deposits of $97.3 million, representing approximately 7 percent of market deposits. After the Newport News-Hampton, Virginia proposed merger, BB&T would operate the fourth largest BB&T operates the fifth largest depository institution in depository institution in the market, controlling deposits of the market, controlling deposits of $296.9 million, repreapproximately $164.7 million, representing 11.9 percent of senting approximately 8.4 percent of market deposits. First market deposits. The HHI would increase by 68 points to Virginia operates the sixth largest depository institution in 1762. the market, controlling deposits of $200.1 million, representing approximately 5.7 percent of market deposits. After Galax, Virginia the proposed merger, BB&T would operate the fourth BB&T operates the fifth largest depository institution in largest depository institution in the market, controlling the market, controlling deposits of $53.2 million, represent- deposits of $497 million, representing 14.1 percent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 343 market deposits. The HHI would increase by 95 points to ing approximately 3.8 percent of market deposits. First 1425. Virginia operates the fifth largest depository institution in the market, controlling deposits of $81 million, represent- Norfolk-Portsmouth, Virginia ing approximately 8.3 percent of market deposits. After the proposed merger, BB&T would operate the second largest BB&T operates the second largest depository institution in depository institution in the market, controlling deposits of the market, controlling deposits of $1.5 billion, representapproximately $117.9 million, representing 12.1 percent of ing approximately 16.6 percent of market deposits. First market deposits. The HHI would increase by 63 points to Virginia operates the seventh largest depository institution 2107. in the market, controlling deposits of $513.9 million, representing approximately 5.8 percent of market deposits. After the proposed merger, BB&T would operate the largest Washington, D.C./Maryland/Virginia/West Virginia depository institution in the market, controlling deposits of BB&T operates the fifth largest depository institution in $2 billion, representing 22.4 percent of market deposits. the market, controlling deposits of $4.5 billion, represent- The HHI would increase by 193 points to 1437. ing approximately 5.6 percent of market deposits. First Virginia operates the eighth largest depository institution Orange, Virginia in the market, controlling deposits of $3.7 billion, representing approximately 4.7 percent of market deposits. BB&T operates the seventh largest depository institution in After the proposed merger, BB&T would operate the the market, controlling deposits of $11.3 million, representfourth largest depository institution in the market, controling approximately 4 percent of market deposits. First Virling deposits of approximately $8.1 billion, representing ginia operates the sixth largest depository institution in the 10.3 percent of market deposits. The HHI would increase market, controlling deposits of $21.5 million, representby 52 points to 813. ing approximately 7.6 percent of market deposits. After the proposed merger, BB&T would operate the fifth largest depository institution in the market, controlling deposits of Winchester, Virginia $32.8 million, representing approximately 11.5 percent of BB&T operates the largest depository institution in the market deposits. The HHI would increase by 60 points to market, controlling deposits of $441 million, representing 1901. approximately 26.5 percent of market deposits. First Virginia operates the ninth largest depository institution in the Richmond, Virginia market, controlling deposits of $75.3 million, representing approximately 4.5 percent of market deposits. After the BB&T operates the fifth largest depository institution in proposed merger, BB&T would remain the largest deposithe market, controlling deposits of $1.6 billion, representtory institution in the market, controlling deposits of ing approximately 8.3 percent of market deposits. First $516.3 million, representing approximately 31.1 percent of Virginia operates the seventh largest depository institution market deposits. The HHI would increase by 240 points to in the market, controlling deposits of $650.5 million, repre- 1645. senting approximately 3.3 percent of market deposits. After the proposed merger, BB&T would remain the fifth largest depository institution in the market, controlling deposits of $2.3 billion, representing 11.6 percent of market deposits. Appendix C The HHI would increase by 55 points to 1516. Certain Banking Markets with Divestitures Russell, Virginia BB&T operates the seventh largest depository institution in Farmville, Virginia the market, controlling deposits of $6 million, represent- BB&T operates the fourth largest depository institution in ing approximately 1.9 percent of market deposits. First the market, controlling deposits of $41.3 million, represent- Virginia operates the fourth largest depository institution in ing approximately 12.6 percent of market deposits. First the market, controlling deposits of $42.5 million, represent- Virginia operates the third largest depository institution in ing approximately 13.2 percent of market deposits. After the market, controlling deposits of $55.4 million, representthe proposed merger, BB&T would operate the fourth ing approximately 16.9 percent of market deposits. BB&T largest depository institution in the market, controlling has committed to divest one branch with $13.3 million in deposits of approximately $48.6 million, representing deposits, representing approximately 4.1 percent of market approximately 15 percent of market deposits. The HHI deposits, to an out-of-market commercial banking organiwould increase by 49 points to 2289. zation. After the proposed merger and divestiture, BB&T would operate the largest depository institution in the Staunton, Virginia market, controlling deposits of $83.4 million, representing BB&T operates the eighth largest depository institution in approximately 25.5 percent of market deposits. The HHI the market, controlling deposits of $37 million, represent- would increase by 221 points to 1781. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 Federal Reserve Bulletin • July 2003 Roanoke, Virginia tory institution in the market, controlling deposits of $172.8 million, representing 33.1 percent of market depos- BB&T operates the sixth largest depository institution in its. The HHI would increase by 144 points to 1841. the market, controlling deposits of $367.7 million, representing approximately 8.5 percent of market deposits. First Virginia operates the fifth largest depository institution in the market, controlling deposits of $370.4 million, representing approximately 8.6 percent of market deposits. ORDERS ISSUED UNDER INTERNATIONAL BB&T has committed to divest one branch with $78.2 mil- BANKING ACT lion in deposits, representing approximately 1.8 percent of market deposits, to an out-of-market commercial banking HSH Nordbank Aktiengesellschaft organization. After the proposed merger and divestiture, Hamburg/Kiel, Germany BB&T would operate the second largest depository institution in the market, controlling deposits of approximately $659.8 million, representing 15.3 percent of market depos- Order Approving Establishment of a Branch its. The HHI would increase by 90 points to 1241. HSH Nordbank Aktiengesellschaft (in Formation) Sussex, Virginia ("Bank"), in both Hamburg and Kiel, Germany, a foreign bank within the meaning of the International Banking Act BB&T operates the third largest depository institution in ("IBA"), has applied under section 7(d) of the IBA the market, controlling deposits of $33.3 million, represent- (12 U.S.C. §3105(d)) to establish a branch in New York, ing approximately 26.8 percent of market deposits. First New York. The Foreign Bank Supervision Enhancement Virginia operates the second largest depository institution Act of 1991, which amended the IBA, provides that a in the market, controlling deposits of $41.1 million, repreforeign bank must obtain the approval of the Board to senting approximately 33.1 percent of market deposits. establish a branch in the United States. BB&T has committed to divest one branch with $33.7 million in deposits, representing approximately 27.1 percent Notice of the application, affording interested persons an opportunity to submit comments, has been published in a of market deposits, to an out-of-market commercial banknewspaper of general circulation in New York, New York ing organization. After the proposed merger and divesti- (The New York Post, March 28, 2003). The time for ture, BB&T would operate the second largest depository filing comments has expired, and all comments have been institution in the market, controlling deposits of $40.7 milconsidered. lion, representing 32.8 percent of market deposits. The Bank will be established on the merger of Landesbank HHI would decrease by 4 points to 3418. Schleswig-Holstein, Kiel, and Hamburgische Landesbank, Hamburg.1 Bank would be a commercial bank organized as Surry, Virginia a private company and would succeed to the commercial BB&T operates the second largest depository institution in business of Landesbank Schleswig-Holstein and Hamburthe market, controlling deposits of $7.7 million, represent- gische Landesbank. Bank would have total consolidated ing approximately 30.3 percent of market deposits. First assets of approximately $191 billion.2 It is expected that Virginia operates the largest depository institution in the on its establishment, Bank would be a qualifying foreign market, controlling deposits of $17.8 million, representing banking organization. approximately 69.7 percent of market deposits. BB&T has Bank's largest shareholder will be the City of Hamburg, committed to divest First Virginia's only branch in the with approximately 35 percent of Bank. WestLB AG, in market. After the proposed merger and divestiture, BB&T both Miinster and Dusseldorf, Germany, will own approxiwould remain the second largest depository institution in mately 27 percent of Bank.3 The State of Schleswigthe market and the HHI would remain unchanged at 5779. 1. Landesbank Schleswig-Holstein operates a branch and Hambur- Tazewell, Virginia gische Landesbank operates a representative office, both in New York, New York. Hamburgische Landesbank's representative office will be BB&T operates the sixth largest depository institution in closed before the proposed merger. the market, controlling deposits of $38.4 million, represent- 2. Unless otherwise indicated, data are as of December 31, 2002. ing approximately 7.4 percent of market deposits. First 3. WestLB AG, and its parent Landesbank Nordrhein-Westfalen, Dusseldorf, Germany, were established on the reorganization of the Virginia operates the largest depository institution in the former Westdeutsche Landesbank Girozentrale ("WestLB") in August market, controlling deposits of $158.2 million, represent- 2002. WestLB AG is a wholesale bank organized as a private coming approximately 30.3 percent of market deposits. BB&T pany and continues the commercial banking operations of WestLB. has committed to divest two branches, with deposits Landesbank Nordrhein-Westfalen is a public law institution and conducts the public mission activities of the former WestLB. Landesbank totaling $23.8 million, and representing approximately Nordrhein-Westfalen is owned by the State of North Rhine- 4.6 percent of market deposits, to an out-of-market com- Westphalia, the Regional Associations of the Rhineland and mercial banking organization. After the proposed merger Westphalia-Lippe, and the Savings and Giro Associations of the and divestiture, BB&T would operate the largest deposi- Rhineland and Westphalia-Lippe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 345 Holstein and the Savings Bank and Clearing Association of Nordrhein-Westfalen are supervised by the German Fed- Schleswig-Holstein, Kiel, will own approximately 19 per- eral Financial Supervisory Agency on substantially the cent and 18 percent of Bank, respectively. same terms and conditions as the other banks. Based on The proposed branch would assist Bank with its existing all the facts of record, it has been determined that Bank, business activities in the United States and would be used West LB AG, and Landesbank Nordrhein-Westfalen are to develop new business in areas in which the bank special- subject to comprehensive supervision and regulation on a izes such as shipping, real estate, credit investments, and consolidated basis by their home country supervisor. international finance. The proposed branch would also The additional standards set forth in section 7 of the participate in syndicated loans, issue commercial paper and IBA and Regulation K (see 12 U.S.C. §3105(d)(3)-(4); other debt instruments, and provide trade and public 12 C.F.R. 211.24(c)(2)) have also been taken into account. financing. The German Federal Financial Supervisory Agency has no In order to approve an application by a foreign bank to objection to the establishment of the proposed branch. establish a branch in the United States, the IBA and Regu- Germany's risk-based capital standards are consistent lation K require the Board to determine that the foreign with those established by the Basel Capital Accord. Applybank applicant engages directly in the business of banking ing these standards, Bank's capital is in excess of the outside of the United States and has furnished to the Board minimum levels that would be required by the Basel Capithe information it needs to assess the application ade- tal Accord and is considered equivalent to capital that quately. The Board also shall take into account whether would be required of a U.S. banking organization. Managethe foreign bank and any foreign bank parent is subject rial and other financial resources of Bank also are considto comprehensive supervision or regulation on a consoli- ered consistent with approval, and Bank appears to have dated basis by its home country supervisor (12 U.S.C. the experience and capacity to support the proposed §3105(d)(2); 12 C.F.R. 211.24).4 The Board may also take branch. In addition, Bank has established controls and into account additional standards as set forth in the IBA procedures for the proposed branch to ensure compliance and Regulation K (12 U.S.C. §3105(d)(3)-(4); 12 C.F.R. with U.S. law, as well as controls and procedures for its 211.24(c)(2)-(3)). worldwide operations generally. As noted above, Bank, West LB AG, and Landesbank Germany is a member of the Financial Action Task Nordrhein-Westfalen engage directly in the business of Force and subscribes to its recommendations regarding banking outside the United States. Bank also has provided measures to combat money laundering. In accordance with the Board with information necessary to assess the applica- these recommendations, Germany has enacted laws and tion through submissions that address the relevant issues. created legislative and regulatory standards to deter money With respect to supervision by home country authorities, laundering. Money laundering is a criminal offense in the Board previously has determined, in connection with Germany and credit institutions are required to establish applications involving other German banks, that those internal policies and procedures for the detection and prebanks were subject to home country supervision on a vention of money laundering. consolidated basis.5 Bank, West LB AG, and Landesbank With respect to access to information on Bank's operations, the restrictions on disclosure in relevant jurisdictions in which Bank operates have been reviewed and relevant 4. In assessing this standard, the Board considers, among other government authorities have been communicated with factors, the extent to which the home country supervisors: regarding access to information. On the establishment of (i) Ensure that the bank has adequate procedures for monitoring and Bank, Bank and its parents will commit to make available controlling its activities worldwide; to the Board such information on the operations of Bank (ii) Obtain information on the condition of the bank and its suband any of its affiliates that the Board deems necessary to sidiaries and offices through regular examination reports, audit reports, or otherwise; determine and enforce compliance with the IBA, the Bank (iii) Obtain information on the dealings with and relationship between Holding Company Act of 1956, as amended, and other the bank and its affiliates, both foreign and domestic; applicable federal law. To the extent that the provision of (iv) Receive from the bank financial reports that are consolidated on a such information to the Board may be prohibited by law or worldwide basis or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated otherwise, Bank and its parents will commit to cooperate basis; with the Board to obtain any necessary consents or waivers (v) Evaluate prudential standards, such as capital adequacy and risk that might be required from third parties for disclosure of asset exposure, on a worldwide basis. such information. In addition, subject to certain conditions, These are indicia of comprehensive, consolidated supervision. No the German Federal Financial Supervisory Agency may single factor is essential, and other elements may inform the Board's share information on Bank's operations with other supervidetermination. sors, including the Board. In light of these commitments 5. See Hamburgische Landesbank Girozentrale, 88 Federal Reserve Bulletin 397 (2002); Landesbank Schleswig-Holstein Girozen- and other facts of record, and subject to the conditions trale, 88 Federal Reserve Bulletin 399 (2002); Allgemeine Hypothek- described below, it has been determined that Bank has enBank Rheinboden AG, 88 Federal Reserve Bulletin 196 (2002); DePfa Bank AG, 87 Federal Reserve Bulletin 710 (2001); RHEINHYP Rheinische Hypothekenbank AG, 87 Federal Reserve Bulletin 558 509 (1999); Westdeutsche ImmobilienBank, 85 Federal Reserve Bulle- (2001); Deutsche Hyp Deutsche Hypothekenbank, 86 Federal Reserve tin 346 (1999); Commerzbank AG, 85 Federal Reserve Bulletin 336 Bulletin 658 (2000); Deutsche Bank AG, 85 Federal Reserve Bulletin (1999). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 Federal Reserve Bulletin • July 2003 provided adequate assurances of access to any necessary cation also is specifically conditioned on compliance by information that the Board may request.6 Bank and its parents with the commitments made in con- On the basis of all the facts of record, and subject to the nection with this application and with the conditions in this commitments made by Bank and its parents, and the terms order.8 The commitments and conditions referred to above and conditions set forth in this order, Bank's application are conditions imposed in writing by the Board in connecto establish the branch is hereby approved.7 Should any tion with its decision and may be enforced in proceedings restrictions on access to information on the operations against Bank and its affiliates under 12U.S.C. §1818. or activities of Bank or any of its affiliates subsequently By order, approved pursuant to authority delegated by interfere with the Board's ability to obtain information to the Board, effective May 30, 2003. determine and enforce compliance by Bank or its affiliates with applicable federal statutes, the Board may require or JENNIFER J. JOHNSON recommend termination of any of Bank's direct and indi- Secretary of the Board rect activities in the United States. Approval of this appli- 6. The Board's action on this proposal is conditioned on the Board's receipt of executed access to information commitments and 8. The Board's authority to approve the establishment of the proconsents to jurisdiction from Bank, West LB AG, and Landesbank posed branch parallels the continuing authority of the State of Nordrhein-Westfalen. New York to license offices of a foreign bank. The Board's approval 7. Approved by the Director of the Division of Banking Super- of this application does not supplant the authority of the State of vision and Regulation, with the concurrence of the General Coun- New York or its agent, the New York State Banking Department, to sel, pursuant to authority delegated by the Board. See 12 C.F.R. license the proposed office of Bank in accordance with any terms or 265.7(d)(12). conditions that the Department may impose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 347 INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM—(January 1, 2003-March 31, 2003) Bulletin Volume Applicant Merged or Acquired Bank of Activity Date of Approval and Page Allied Irish Banks, p.l.c., M&T Bank Corporation, March 11, 2003 89, 208 Dublin, Ireland Buffalo, New York Manufacturers and Traders Trust Company, Buffalo, New York Bancolombia, S.A., To establish an agency in March 27, 2003 89, 234 Medellin, Colombia Miami, Florida BBVA Bancomer, S.A., To establish an agency in January 29, 2003 89, 146 Mexico City, Mexico Houston, Texas The Daiwa Bank, Limited, To establish a representative office in February 28, 2003 89, 185 Osaka, Japan New York, New York DEPFA BANK pic, To establish an agency in March 21, 2003 89, 236 Dublin, Ireland New York, New York Friedman, Billings, Ramsey Group, Inc., FBR Asset Investment Corporation, March 14, 2003 89, 219 Arlington, Virginia Arlington, Virginia Forest Merger Corporation, FBR Bancorp, Inc., Arlington, Virginia Arlington, Virginia FBR TRS Holdings, Inc., FBR National Bank & Trust, Arlington, Virginia Bethesda, Maryland M&T Bank Corporation, Allfirst Financial Inc., March 11, 2003 89, 222 Buffalo, New York Baltimore, Maryland Allfirst Bank, Baltimore, Maryland Mizuho Holdings, Inc., Mizuho Corporate Bank of California, February 24, 2003 89, 181 Tokyo,Japan Los Angeles, California Mizuho Financial Group, Inc., Mizuho Corporate Bank, Tokyo, Japan Mizuho Asset Trust & New York, New York Banking Co., Ltd., Mizuho Trust & Banking Co., Tokyo,Japan New York, New York Royal Bank of Canada, Admiralty Bancorp, Inc., January 13, 2003 89, 139 Montreal, Canada Palm Beach Gardens, Florida RBC Centura Banks, Inc., Admiralty Bank, Rocky Mount, North Carolina Palm Beach Gardens, Florida SouthTrust Corporation, March 19, 2003 89, 211 Birmingham, Alabama SouthTrust of Alabama, Inc., Founders Bancshares, Birmingham, Alabama Dallas, Texas SouthTrust Bank, Skillman Bancshares, Birmingham, Alabama Dallas, Texas Founders National Bank, Dallas, Texas The Wakashio Bank, Limited, Sumitomo Mitsui Banking Corporation, March 14, 2003 89, 217 Tokyo,Japan Tokyo,Japan Manufacturers Bank, Los Angeles, California The Wakashio Bank, Limited, Sumitomo Mitsui Banking Corporation, March 14, 2003 89, 217 Tokyo,Japan Tokyo, Japan Manufacturers Bank, Los Angeles, California The Wakashio Bank, Limited, To establish branches in Los Angeles March 14, 2003 89, 237 Tokyo, Japan and San Francisco, California, and New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 Federal Reserve Bulletin • July 2003 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Applicant(s) Bank(s) Reserve Bank Effective Date American Heartland Bancshares, Inc., American Heartland Bank and Trust, Chicago May 7, 2003 Sugar Grove, Illinois Sugar Grove, Illinois American Trust BanCorp, American Trust Bank, Atlanta May 6,2003 Roswell, Georgia Roswell, Georgia Bank of the San Juans Bank of the San Juans, Kansas City May 21, 2003 Bancorporation, Durango, Colorado Durango, Colorado Citizens Bancshares Employee Stock Citizens Bancshares, Inc., Kansas City May 19, 2003 Ownership Plan, Edmond, Oklahoma Edmond, Oklahoma The Farmers State Bank of Fort F.S.B. Bancorporation of Fort Morgan, Kansas City May 20, 2003 Morgan, Colorado Employee Fort Morgan, Colorado Stock Ownership Plan, Fort Morgan, Colorado Five Star Bancorp, Five Star Bank, San Francisco May 16, 2003 Rocklin, California Rocklin, California Liberty Bancshares, Inc., MSB Shares, Inc., St. Louis May 16, 2003 Jonesboro, Arkansas Jonesboro, Arkansas Midsouth Bank, Jonesboro, Arkansas MainSource Financial Group, Inc. First Community Bancshares, Inc., Chicago May 16, 2003 Greensburg, Indiana Bargersville, Indiana First Community Bank and Trust, Bargersville, Indiana Main Street Banks, Inc., First Colony Bancshares, Inc., Atlanta May 7, 2003 Kennesaw, Georgia Alpharetta, Georgia First Colony Bank, Alpharetta, Georgia Peotone Bancorp, Inc., The San Juans Bancorporation, Chicago May 23, 2003 Peotone, Illinois Durango, Colorado Founders Group, Inc, The San Juans, Worth, Illinois Durango, Colorado PNB Bancshares, Inc., Pekin National Bank, Chicago May 20, 2003 Pekin, Illinois Pekin, Illinois Premier Bancshares, Inc., Synergy Financial Group, Inc., Dallas May 29, 2003 Dallas, Texas Waco, Texas Premier Delaware Bancshares, Synergy Bank, S.S.B., Dover, Delaware Waco, Texas Pulaski Investment Corporation, The Munford Union Bank, St. Louis May 20,2003 Little Rock, Arkansas Munford, Tennessee RAM Security Holdings, Ltd., Security Bancshares, Inc., Dallas May 7,2003 Waco, Texas Waco, Texas RAM Security Holdings GP, Inc. Waco Texas Royal Palm Bancorp, Inc., The Royal Palm Bank of Florida, Atlanta May 22, 2003 Naples, Florida Naples, Florida Jere J. Ruff Family Limited The First State Bank, Dallas May 15,2003 Partnership II, Hallsville, Texas Long view, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 349 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Ruff Management, LLC, The First State Bank, Dallas May 15, 2003 Longview, Texas Hallsville, Texas Ruff Partners, Ltd., Longview, Texas Service 1st Bancorp, Service 1st Bank, San Francisco May 8, 2003 Stockton, California Stockton, California Sleepy Hollow Bancorp, Inc., Sleepy Hollow Bank, New York May 19, 2003 New York, New York Sleepy Hollow, New York Southwest Bancorporation of Maxim Financial Holdings, Inc. Dallas April 10, 2003 Texas, Inc., Dickinson, Texas Houston, Texas Maxim Financial Holdings of Delaware, Inc., Wilmington, Delaware MaximBank, Dickinson, Texas Triangle Financial Group, Inc., The Community Bank, Atlanta May 21, 2003 Loganville, Georgia Loganville, Georgia UCB Financial Group, Inc., United Commercial Bank, Atlanta May 20, 2003 Atlanta, Georgia Atlanta, Georgia Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Cass Information Systems, Inc.. Imaging Acceptance Corporation, St. Louis May 5, 2003 Bridgeton, Missouri Warrenton, Virginia Independent Bank Corporation, Mepco Insurance Premium Financing, Chicago May 12, 2003 Ionia, Michigan Chicago, Illinois APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Applicant(s) Bank(s) Reserve Bank Effective Date Central California Bank, Central Sierra Bank, San Francisco May 16, 2003 Sonora, California San Andreas, California Comerica Bank, Comerica Bank-Texas, Chicago May 9,2003 Detroit, Michigan Dallas, Texas Comerica Bank-California, San Jose, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 Federal Reserve Bulletin • July 2003 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Artis v. Greenspan, No. 01-CV-0400 (EGS) (D.D.C., com- Federal Reserve Banks in which the Board of Governors is plaint filed February 22, 2001). Employment discrimnot named a party. ination action. On August 15, 2001, the district court consolidated the action with Artis v. Greenspan, No. 99- Apffel v. Board of Governors, No. 03-343 (S. D. Texas, CV-2073 (EGS) (D.D.C., filed August 3, 1999), also an filed May 20, 2003). Freedom of Information Act case. employment discrimination action. Albrecht v. Board of Governors, No. 02-5325 (D.C. Cir., Fraternal Order of Police v. Board of Governors, filed October 18, 2002). Appeal of district court order No. 1:98CV03116 (WBB)(D.D.C„ filed December 22, dismissing challenge to the method of funding of the 1998). Declaratory judgment action challenging Board retirement plan for certain Board employees. regulation on labor-management relations at Reserve Community Bank & Trust v. United States, No. 01-571C Banks. (Ct. Fed. CI., filed October 3, 2001). Action challenging on constitutional grounds the failure to pay interest on reserve accounts held at Federal Reserve Banks. 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 U.S. 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 A32 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

47 Federal Reserve Bulletin • July 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 A57 GUIDE TO SPECIAL TABLES AND A50 Banks' own and domestic customers' claims on foreigners STATISTICAL RELEASES A51 Banks' own claims on unaffiliated foreigners 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 Agricultural Mortgage Corporation REMICs Real estate mortgage investment conduits FFB Federal Financing Bank RHS Rural Housing Service FHA Federal Housing Administration RP Repurchase agreement FHLBB Federal Home Loan Bank Board RTC Resolution Trust Corporation FHLMC Federal Home Loan Mortgage Corporation SCO Securitized credit obligation FmHA Farmers Home Administration SDR Special drawing right FNMA Federal National Mortgage Association SIC Standard Industrial Classification FSA Farm Service Agency TIIS Treasury inflation-indexed securities FSLIC Federal Savings and Loan Insurance Corporation VA Department of Veterans Affairs G-7 Group of Seven GENERAL INFORMATION In many of the tables, components do not sum to totals because of include not fully guaranteed issues) as well as direct obligarounding. tions of the U.S. Treasury. Minus signs are used to indicate (1) a decrease, (2) a negative "State and local government" also includes municipalities, figure, or (3) an outflow. special districts, and other political subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • July 2003 1.10 RESERVES AND MONEY STOCK MEASURES Percent annual rate of change, seasonally adjusted1 2002 2003 2002 2003 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q2 Q3 Q4 Qi Dec. Jan. Feb. Mar.' Apr. Reserves of depository institutions2 1 Total -13.5 -2.0 .3 11.2 13.0 14.7 4.4 5.5 -4.5 2 Required -12.4 -4.8 -2.1 11.6 1.6 26.0 -3.1 15.0 -1.8 3 Nonborrowed -14.0 -3.5 1.2 12.6 19.0 16.3 4.4 5.6 -4.7 4 Monetary base3 7.5 6.9 5.0 7.6 7.5 6.7 10.0 6.6 5.4 Concepts of money* 5 Ml -.6 3.1 4.6' 7.1 l.T 2.1 19.8 3.2 .1 6 M2 4.1 9.1 7.1 6.7 3.2 6.4 11.6 3.1 4.6 7 M3 4.1 7.7 7.6 5.7' 8.1' -.3' 7.8' 3.1 .7 Nontransaction components 8 In M25 5.4 10.8 7.8 6.6 2.0 7.5 9.4 3.1 5.7 9 In M3 only6 4.3 4.5 8.7r 3.6' 18.8' -14.4' -.4' 3.2 -7.8 Time and savings deposits Commercial banks 10 Savings, including MMDAs 15.1 20.1 16.9 13.5 3.6 18.7 16.0 4.4 17.6 11 Small time7 -6.3 -6.3 -9.1 -7.5 -9.0 -7.0 -7.2 -7.1 -8.8 12 Large time8-9 12.4 3.7 -4.0 .0' -32.5 14.8 14.4 7.0 -11.4 Thrift institutions 13 Savings, including MMDAs 24.0 20.5 20.5 22.2 21.7 21.6 27.4 19.3 18.0 14 Small time7 -16.6 -12.3 -6.4 ^4.3 -2.4 -4.8 -6.4 -2.0 -2.8 15 Large time8 -8.1 -3.2 11.1 9.3 15.6 13.4 1.0 -7.1 3.1 Money market mutual funds 16 Retail -9.2 4.7 -4.4 -7.8 -8.0 -14.6 -3.7 -5.2 -19.6 17 Institution-only 3.9 -.8 1.9 -5.1 25.0 -35.3 -20.1 -12.7 -21.1 Repurchase agreements and eurodollars 18 Repurchase agreements10 -.7 27.5 45.7' 29.8' 83.4' -22.9' 36.4' 44.6 18.5 19 Eurodollars10 -A A .3 19.3 6.7' 20.6 15.9' -16.7' -8.8 9.4 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 M1. 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 RESERVE BALANCES OF DEPOSITORY INSTITUTIONS1 Millions of dollars Average of daily figures for week ending on date indicated Factor 2003 2003 Feb/ Mar.r Apr. Mar. 19' Mar. 26' Apr. 2 Apr. 9 Apr. 16 Apr. 23 Apr. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 696,613 701,365 710,451 704,865 698,981 707,833 704,407 711,288 709,715 715,874 7 Securities held outright 631,830 639,323 645,586 639,517 640,129 641,311 643,940 645,669 646,852 647,057 U.S. Treasury2 631,820 639,313 645,576 639,507 640,119 641,301 643,930 645,659 646,842 647,047 4 Bills3 228,026 231,580 235,465 231,481 231,892 232,544 235,045 235,713 235,855 236,035 Notes and bonds, nominal3 390,305 394,110 395,917 394,519 394,621 394,621 394,725 395,760 396,776 396,776 6 Notes and bonds, inflation-indexed3 12,242 12,353 12,814 12,242 12,324 12,814 12,814 12,814 12,814 12,814 7 Inflation compensation4 1,247 1,270 1,380 1,264 1,282 1,322 1,345 1,371 1,396 1,422 8 Federal agency3 10 10 10 10 10 10 10 10 10 10 9 Repurchase agreements5 24,558 23,356 25,792 26,500 19,286 28,464 21,893 26,821 23,893 28,751 10 Loans to depository institutions 19 24 30 18 10 11 29 36 28 30 11 Primary credit 15 17 8 9 2 4 13 16 4 0 12 Secondary credit 0 0 0 0 0 0 0 0 0 0 N Seasonal credit 4 7 22 8 8 7 16 20 24 29 14 Float 977 595 -115 805 1,409 -595 -58 -285 -405 225 15 Other Federal Reserve assets 39,229 38,066 39,158 38,025 38,147 38,642 38,603 39,046 39,347 39,811 16 Gold stock 11,043 11,043 11,043 11,043 11,043 11,043 11,043 11,043 11,043 11,043 17 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 18 Treasury currency outstanding 34,650 34,754 34,830 34,754 34,776 34,798 34,812 34,826 34,840 34,854 ABSORBING RESERVE FUNDS 19 Currency in circulation 680,336 683,798 687,334 683,717 684,519 685,884 686,965 687,616 687,514 687,208 20 Reverse repurchase agreements6 18,222 18,755 20,639 19,802 18,320 19,291 20,653 20,745 20,552 20,949 21 Foreign official and international accounts 17,954 18,715 20,564 19,623 18,320 19,291 20,331 20,745 20,552 20,949 7? Dealers 268 40 75 179 0 0 321 0 0 0 23 Treasury cash holdings 354 369 356 372 394 370 353 357 360 350 7.4 Deposits with Federal Reserve Banks, other than reserve balances 16,236 16,842 19,183 16,130 17,783 17,265 18,670 17,811 20,679 20,129 25 US. Treasury, general account 5,053 5,339 7,533 4,979 5,916 5,654 6,528 6,470 8,927 8,763 26 Foreign official 125 163 118 159 240 123 118 120 106 132 77 Service-related 10,819 11,118 11,261 10,760 11,412 11,263 11,744 10,980 11,313 11,008 28 Required clearing balances 10,330 10,601 10,835 10,373 10,977 10,978 10,820 10,820 10,829 10,829 29 Adjustments to compensate for float 489 517 426 387 435 285 923 160 484 179 30 Other 239 221 270 231 215 225 281 241 333 225 31 Other liabilities and capital 19,664 19,732 20,024 19,538 19,412 19,963 19,860 19,941 20,145 20.165 32 Reserve balances with Federal Reserve Banks7 .... 9,693 9,865 10,989 13,304 6,571 13,100 5,960 12,885 8,548 15,170 End-of-month figures Wednesday figures Feb.r Mar.' Apr. Mar. 19' Mar. 26' Apr. 2 Apr. 9 Apr. 16 Apr. 23 Apr. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 701,055 710,555 724,444 708,944 704,126 709,677 705,756 723,322 710,247 724,444 7 Securities held outright 636,921 641,474 647,281 639,899 640,901 641,482 645,084 646,795 646,901 647,281 3 U.S.Treasury2 636,911 641,464 647,271 639,889 640,891 641,472 645,074 646,785 646,891 647,271 4 Bills3 230,843 232,706 236,249 231,756 232,143 232,708 235,550 235,814 235,895 236,249 5 Notes and bonds, nominal3 392,593 394,621 396,776 394,621 394,621 394,621 395,354 396,776 396,776 396,776 6 Notes and bonds, inflation-indexed3 12,242 12,814 12,814 12,242 12,814 12,814 12,814 12,814 12,814 12,814 7 Inflation compensation4 1,233 1,322 1,431 1,269 1,312 1,329 1,355 1,380 1,406 1,431 8 Federal agency3 10 10 10 10 10 10 10 10 10 10 9 Repurchase agreements5 26,900 31,750 37,501 27,000 25,500 30,500 21,250 38,000 24,500 37,501 10 Loans to depository institutions 5 30 35 17 7 15 33 46 30 35 11 Primary credit 1 25 0 11 1 2 15 23 3 0 12 Secondary credit 0 0 0 0 0 0 0 0 0 0 13 Seasonal credit 4 4 35 6 6 13 18 23 27 35 14 Float 4 -1,197 -101 4,065 -732 -799 610 -626 -685 -101 IS Other Federal Reserve assets 37,225 38,499 39,728 37,964 38,450 38,478 38,778 39,107 39,500 39,728 16 Gold stock 11,043 11,043 11,043 11,043 11,043 11,043 11,043 11,043 11,043 11,043 17 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 18 Treasury currency outstanding 34,710 34,798 34,854 34,754 34,776 34,798 34,812 34,826 34,840 34,854 ABSORBING RESERVE FUNDS 19 Currency in circulation 681,634 685,791 688,723 685,238 686,257 687,717 688,485 688,924 688,475 688,723 20 Reverse repurchase agreements6 18,018 19,418 20,814 18,430 18,231 19,729 20,291 19,801 19,991 20,814 71 Foreign official and international accounts 18,018 19,418 20,814 17,180 18,231 19,729 20,291 19,801 19,991 20,814 77. Dealers 0 0 0 1,250 0 0 0 0 0 0 23 Treasury cash holdings 343 373 340 398 373 353 357 361 352 340 24 Deposits with Federal Reserve Banks, other than reserve balances 15,406 18,474 22,135 14,778 17,676 17,842 18,994 20,138 20,937 22,135 25 U.S. Treasury, general account 4,268 6,746 10,583 3,607 5,927 6,199 6,872 8,821 9,285 10,583 26 Foreign official 224 254 313 150 162 103 102 101 105 313 77 Service-related 10,721 11,263 11,008 10,760 11,412 11,263 11,744 10,980 11,313 11,008 28 Required clearing balances 10,336 10,978 10,829 10,373 10,977 10,978 10,820 10,820 10,829 10,829 29 Adjustments to compensate for float 385 285 179 387 435 285 923 160 484 179 30 Other 193 211 231 261 175 277 277 236 234 231 31 Other liabilities and capital 19,739 20,230 20,049 19,147 19,601 19,721 19,616 19,871 19,804 20,049 32 Reserve balances with Federal Reserve Banks7 .... 13,868 14,312 20,479 18,951 10,008 12,356 6,067 22,296 8,770 20,479 1. Amounts of vault cash held as reserves are shown in table 1.12, line 2. 5. Cash value of agreements, which are fully collateralized by U.S. Treasury and federal 2. Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury agency securities. securities. 6. Cash value of agreements, which are fully collateralized by U.S. Treasury securities. 3. Face value of the securities. 7. Excludes required clearing balances and adjustments to compensate for float. 4. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • July 2003 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 2000 2001 2002 2002 2003 Dec. Dec. Dec. Oct. Nov. Dec. Jan. Feb. Mar.r Apr. 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 7,022 9,053 9,873 8,836 9,695 9,873 10,004 9,807 9,818 10,583 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 45,245 43,919 43,334 42,933 42,144 43,334 46,210 45,939 43,086 41,990 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 31,451 32,024 30,300 29,849 29,446 30,300 32,738 32,067 30,748 30,573 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 13,794 11,895 13,033 13,084 12,698 13,033 13,471 13,872 12,337 11,417 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 38,473 41,077 40,173 38,685 39,141 40,173 42,743 41,874 40,567 41,157 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 37,046 39,428 38,176 37,134 37,525 38,176 41,082 39,966 38,957 39,639 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 1,427 1,649 1,997 1,550 1,616 1,997 1,660 1,908 1,610 1,517 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnnggggg aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 210 67 80 143 272 80 27 25 22 29 99999 PPPPPrrrrriiiiimmmmmaaaaarrrrryyyyy 12 21 14 8 1111100000 SSSSSeeeeecccccooooonnnnndddddaaaaarrrrryyyyy 0 0 0 0 1111111111 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll 111 ' ' 33 45 120 60 45 13 5 8 21 1111122222 AAAAAdddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt 99 34 35 23 211 35 2 Biweekly averages of daily figures for two-week periods ending on dates indicated 2002 2003 Dec. 25 Jan. 8 Jan. 22 Feb. 5 Feb. 19 Mar. 5 Mar. 19 Apr. 2r Apr. 16 Apr. 30 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 10,408 9,200 10,894 9,336 9,431 10,654 9,500 9,843 9,421 11,852 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 43,740 45,148 44,363 50,026 46,005 43,567 42,203 43,916 41,680 42,026 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 30,292 31,935 31,500 35,378 30,911 32,027 29,372 31,822 29,833 31,136 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 13,448 13,213 12,863 14,648 15,095 11,540 12,831 12,095 11,847 10,890 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 40,700 41,135 42,394 44,714 40,342 42,681 38,872 41,664 39,254 42,987 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 38,225 39,495 40,631 43,196 38,009 41,217 37,211 40,052 37,784 41,436 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 2,475 1,640 1,763 1,518 2,332 1,464 1,660 1,612 1,470 1,551 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnnggggg aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 57 36 18 34 25 21 32 11 33 29 99999 PPPPPrrrrriiiiimmmmmaaaaarrrrryyyyy 9 28 21 17 23 3 15 2 1111100000 SSSSSeeeeecccccooooonnnnndddddaaaaarrrrryyyyy 0 0 0 0 0 0 0 0 1111111111 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll 48 ' 29 9 6 4 5 9 8 18 27 1111122222 AAAAAdddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt 10 8 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 4. All vault cash held during the lagged computation period by "bound" institutions (that ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. is, those whose required reserves exceed their vault cash) plus the amount of vault cash 2. Excludes required clearing balances and adjustments to compensate for float and applied during the maintenance period by "nonbound" institutions (that is, those whose vault includes other off-balance-sheet "as-of" adjustments. cash exceeds their required reserves) to satisfy current reserve requirements. 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by 5. Total vault cash (line 2) less applied vault cash (line 3). those banks and thrift institutions that are not exempt from reserve requirements. Dates 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash (line 3). refer to the maintenance periods in which the vault cash can be used to satisfy reserve 7. Total reserves (line 5) less required reserves (line 6). 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 Primary credit1 Secondary credit2 Seasonal credit3 Federal Reserve Bank On On On 6/9/03 Effective date Previous rate 6/9/03 Effective date 6/9/03 Effective date Boston New York . . . Philadelphia . Cleveland ... Richmond .. . Atlanta Chicago St. Louis Minneapolis . Kansas City . Dallas San Francisco Range of rates for primary credit 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 Jan. 9, 2003 2.25 2.25 (beginning of program) Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range (or F.R. Bank Range (or F.R. Bank level)—All of Effective date level)—All of level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Dec. 31, 1995 . 5.25 5.25 2000—Feb. 2 5.00-5.25 5.25 2001—June 27 ... 3.25-3.50 3.25 4 5.25 5.25 29 ... 3.25 3.25 1996—Jan. 31 5.00-5.25 5.00 Mar. 21 5.25-5.50 5.50 Aug. 21 ... 3.00-3.25 3.00 55..0000 55..0000 23 5.50 5.50 23 ... 3.00 3.00 MMaayy 16 5.50-6.00 5.50 Sept. 17 . .. 2.50-3.00 2.50 1998—Oct. 15 4.75-5.00 4.75 19 6.00 6.00 18 . .. 2.50 2.50 16 4.75 4.75 Oct. 2 . . . 2.00-2.50 2.00 Nov. 17 4.50-4.75 4.50 2001—Jan. 3 5.75-6.00 5.75 4 ... 2.00 2.00 4.50 4.50 4 5.50-5.75 5.50 Nov. 6 ... 1.50-2.00 1.50 5 5.50 5.50 8 ... 1.50 1.50 1999—Aug. 24 4.50-4.75 4.75 31 5.00-5.50 5.00 Dec. 11 ... 1.25-1.50 1.25 26 4.75 4.75 Feb. 1 5.00 5.00 13 . . . 1.25 1.25 Nov. 16 4.75-5.00 4.75 Mar. 20 4.50-5.00 4.50 5.00 5.00 AApprr.. 2 1 1 8 4.0 4 0 . - 5 4 0 . 50 4 4 . . 0 5 0 0 2002—Nov. 6 1 . . . . . . 0.7 0 5 . - 7 1 5 . 25 0 0 . . 7 7 5 5 20 4.00 4.00 22000011——MMaayy 15 3.50-4.00 3.50 In effect Jan. 8, 2003 0.75 0.75 17 3.50 3.50 (end of program) 1. Available for very short terms as a backup source of liquidity to depository institutions industry lenders. The discount rate on seasonal credit takes into account rates charged by that are in generally sound financial condition in the judgment of the lending Federal Reserve market sources of funds and ordinarily is reestablished on the first business day of each Bank. two-week reserve maintenance period. 2. Available in appropriate circumstances to depository institutions that do not qualify for 4. Was available until January 8, 2003, to help depository institutions meet temporary primary credit. needs for funds that could not be met through reasonable alternative sources. For earlier data, 3. Incorrect data were published in the June 2003 issue of the Federal Reserve Bulletin. see the following publications of the Board of Governors: Banking and Monetary Statistics, The correct data are shown below. Seasonal credit is available to help relatively small 1914-1941, and 1941-1970; and the Statistical Digest, 1970-1979, 1980-1989, and depository institutions meet regular seasonal needs for funds that arise from a clear pattern of 1990-1995. See also the Board's Statistics: Releases and Historical Data web pages intrayearly movements in their deposits and loans and that cannot be met through special (http://www.federalreserve.gov/releases/H15/data.htm). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • July 2003 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt Percentage of deposits Effective date Net transaction accounts2 000000 111111222222//////222222666666//////000000222222 2 More than $6 million-$42.1 million4 333333 111111222222//////222222666666//////000000222222 111111000000 111111222222//////222222666666//////000000222222 000000 111111222222//////222222777777//////999999000000 000000 111111222222//////222222777777//////999999000000 1. Required reserves must be held in the form of deposits with Federal Reserve Banks or 4. The Monetary Control Act of 1980 requires that the amount of transaction accounts vault cash. Nonmember institutions may maintain reserve balances with a Federal Reserve against which the 3 percent reserve requirement applies be modified annually by 80 percent of Bank indirectly, on a pass-through basis, with certain approved institutions. For previous the percentage change in transaction accounts held by all depository institutions, determined reserve requirements, see earlier editions of the Annual Report or the Federal Reserve as of June 30 of each year. Effective with the reserve maintenance period beginning Bulletin. Under the Monetary Control Act of 1980, depository institutions include commercial December 26, 2002, for depository institutions that report weekly, and with the period banks, savings banks, savings and loan associations, credit unions, agencies and branches of beginning January 16, 2003, for institutions that report quarterly, the amount was increased foreign banks, and Edge Act corporations. from $41.3 million to $42.1 million. 2. Transaction accounts include all deposits against which the account holder is permitted 5. 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 6. 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. Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the reduced from 3 percent to zero on January 17, 1991. amount of reservable liabilities subject to a zero percent reserve requirement each year for the The reserve requirement on nonpersonal time deposits with an original maturity of 1.5 succeeding calendar year by 80 percent of the percentage increase in the total reservable years or more has been zero since October 6, 1983. liabilities of all depository institutions, measured on an annual basis as of June 30. No 7. The reserve requirement on eurocurrency liabilities was reduced from 3 percent to zero corresponding adjustment is made in the event of a decrease. The exemption applies only to in the same manner and on the same dates as the reserve requirement on nonpersonal time accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve deposits with an original maturity of less than 1.5 years (see note 5). maintenance period beginning December 26, 2002, for depository institutions that report weekly, and with the period beginning January 16, 2003, for institutions that report quarterly, the exemption was raised from $5.7 million to $6.0 million. 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 2003 TTyyppee ooff ttrraannssaaccttiioonn 22000000 22000011 22000022 aanndd mmaattuurriittyy Sept. Oct. Nov. Dec. Jan. Feb. Mar. U.S. TREASURY SECURITIES2 Outright transactions Treasury bills 1 Gross purchases 8,676 15,503 21,421 750 0 250 0 0 4,161 1,863 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 477,904 542,736 657,931 53,314 62,947 51,394 53,374 71,075 53,860 47,424 4 For new bills 477,904 542,736 657,931 53,314 62,947 51,394 53,374 71,075 53,860 47,424 5 Redemptions 24,522 10,095 0 0 0 0 0 0 0 0 Others within one year 6 Gross purchases 8,809 15,663 12,720 1,286 0 0 0 0 478 1,318 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 62,025 70,336 89,108 11,174 6,143 3,688 13,448 6,216 3,214 8,334 9 Exchanges -54,656 -72,004 -92,075 -15,189 -5,435 -1,419 -12,059 -6,834 -13,313 -8,211 10 Redemptions 3,779 16,802 0 0 0 0 0 0 0 0 One to five years 11 Gross purchases 14,482 22,814 12,748 0 0 0 339 0 2,127 710 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -52,068 -45,211 -73,093 -11,174 -6,143 -2,380 -13,448 -6,216 2,160 -8,334 14 Exchanges 46,177 64,519 88,276 15,189 5,435 1,308 12,059 6,834 11,817 8,211 Five to ten years 15 Gross purchases 5,871 6,003 5,074 51 0 0 314 0 769 522 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -6,801 -21,063 -11,588 0 0 722 0 0 -3,877 0 18 Exchanges 6,585 6,063 3,800 0 0 111 0 0 1,497 0 More than ten years 19 Gross purchases 5,833 8,531 2,280 0 0 0 0 0 0 50 20 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -3,155 -4,062 ^1,427 0 0 -2,030 0 0 -1,497 0 22 Exchanges 1,894 1,423 0 0 0 0 0 0 0 0 All maturities 23 Gross purchases 43,670 68,513 54,242 2,087 0 250 653 0 7,534 4,463 24 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 28,301 26,897 0 0 0 0 0 0 0 0 26 Net change in U.S. Treasury securities 15,369r 41,616' 54,242' 2,087' 0' 250' 653' 0 7,534' 4,463 FEDERAL AGENCY OBLIGATIONS Outright transactions 27 Gross purchases 0' 0' 0' 0' 0' 0' 0' 0 0 0 28 Gross sales 0 0 0 0 0 0 0 0 0 0 29 Redemptions 51r 120' 0 0 0 0 0 0 0 0 30 Net change in federal agency obligations -51' -120' 0' 0 0 0 0' 0' 0' 0 TEMPORARY TRANSACTIONS Repurchase agreements3 31 Gross purchases 890,236' 1,497,713' 1,143,126' 93,500' 72,000' 113,501' 112,750' 135,749' 121,896' 95,001 32 Gross sales 987,501r 1,490,838' 1,153,876' 94,750' 77,250' 101,501' 101,750' 150,499' 119,746' 90,151 Matched sale-purchase agreements 33 Gross purchases 4,415,905' 4,722,667' 4,981,624' 449,250' 429,029' 378,381' 195,565' 0 0 0 34 Gross sales 4,397,835' 4,724,743' 4,958,437' 449,986' 425,399' 377,535' 175,820' 0 0 0 Reverse repurchase agreements4 35 Gross purchases 0r 0' 231,272' 0 0 0 231,272' 392,530' 343,748' 388,069 36 Gross sales 0 0 252,363' 0 0 0 252,363' 389,810' 343,395' 389,469 37 Net change in temporary transactions -79,195' 4,80c -8,653' -1,986' -1,620' 12,847' 9,654' -12,029' 2' 2,200 38 Total net change in System Open Market Account .. -63,877r 46,295r 45,589r 101r -1,620' 13,096r 10,307r -12,029r 7,537r 6,664 1. Sales, redemptions, and negative figures reduce holdings of the System Open Market 3. Cash value of agreements, which are collateralized by U.S. government and federal Account; all other figures increase such holdings. agency obligations. 2. Transactions exclude changes in compensation for the effects of inflation on the 4. Cash value of agreements, which are collateralized by U.S. Treasury securities. 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

A10 Domestic Nonfinancial Statistics • July 2003 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 2003 2003 Apr. 2 Apr. 9 Apr. 16 Apr. 23 Apr. 30 Feb. Mar. Apr. Consolidated condition statement ASSETS 1 Gold certificate account 11,038 11,038 11,038 11,038 11,039 11,039 11,038 11,039 2 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 3 Coin 1,092 1,078 1,056 1,043 1,021 1,104 1,106 1,021 4 Securities, repurchase agreements, and loans 671,998 666,367 684,841 671,431 684,817 663,826 673,253 684,817 5 Securities held outright 641,482 645,084 646,795 646,901 647,281 636,921 641,474 647,281 6 U.S.Treasury2 641,472 645,074 646,785 646,891 647,271 636,911 641,464 647,271 7 Bills3 232,708 235,550 235,814 235,895 236,249 230,843 232,706 236,249 8 Notes and bonds, nominal3 394,621 395,354 396,776 396,776 396,776 392,593 394,621 396,776 9 Notes and bonds, inflation-indexed3 12,814 12,814 12,814 12,814 12,814 12,242 12,814 12,814 10 Inflation compensation4 1,329 1,355 1,380 1,406 1,431 1,233 1,322 1,431 11 Federal agency3 10 10 10 10 10 10 10 10 12 Repurchase agreements5 30,500 21,250 38,000 24,500 37,501 26,900 31,750 37,501 13 Loans 15 33 46 30 35 5 30 35 14 Items in process of collection 8,376 9,043 8,284 7,589 8,173 6,051 2,129 8,173 15 Bank premises 1,557 1,558 1,559 1,560 1,577 1,554 1,557 1,577 16 Other assets 37,146 37,496 37,802 38,296 38,412 35,745 37,190 38,412 17 Denominated in foreign currencies6 17,195 17,072 17,239 17,292 17,579 17,246 17,383 17,579 18 All other7 19,951 20,424 20,562 21,004 20,832 18,499 19,807 20,832 19 Total assets 733,407 728,780 746,781 733,157 747,239 721,519 728,474 747,239 LIABILITIES 20 Federal Reserve notes, net of F.R. Bank holdings 654,360 655,104 655,512 655,025 655,226 648,366 652,467 655,226 21 Reverse repurchase agreements8 19,729 20,291 19,801 19,991 20,814 18,018 19,418 20,814 22 Deposits 30,583 25,309 42,795 30,369 43,007 29,446 33,998 43,007 23 Depository institutions 24,004 18,058 33,637 20,745 31,880 24,761 26,787 31,880 24 U.S. Treasury, general account 6,199 6,872 8,821 9,285 10,583 4,268 6,746 10,583 25 Foreign official 103 102 101 105 313 224 254 313 26 Other 277 277 236 234 231 193 211 231 27 Deferred availability cash items 9,014 8,460 8,803 7,968 8,142 5,950 2,362 8,142 28 Other liabilities and accrued dividends9 2,218 2,264 2,239 2,275 2,270 2,277 2,232 2,270 29 Total liabilities 715,904 711,427 729,149 715,628 729,460 704,057 710,476 729,460 CAPITAL ACCOUNTS 30 Capital paid in 8,514 8,521 8,522 8,526 8,545 8,456 8,505 8,545 31 Surplus 8,380 8,380 8,380 8,380 8,380 8,380 8,380 8,380 32 Other capital accounts 609 452 729 623 854 626 1,113 854 33 Total capital 17,503 17,352 17,632 17,529 17,779 17,462 17,998 17,779 MEMO 34 Marketable securities held in custody for foreign official and international accounts310 900,133 898,299 892,976 888,763 893,534 888,946 901,060 893,534 35 U.S. Treasury 721,059 719,571 717,312 713,171 713,499 710,187 720,666 713,499 36 Federal agency 179,074 178,728 175,665 175,591 180,035 178,759 180,393 180,035 Federal Reserve note and collateral statement 37 Federal Reserve notes, net of F.R. Bank holdings 654,360 655,104 655,512 655,025 655,226 648,366 652,467 655,226 38 Collateral held against Federal Reserve notes 654,360 655,104 655,512 655,025 659,280 648,366 652,467 659,280 39 Gold certificate account 11,038 11,038 11,038 11,038 11,039 11,039 11,038 11,039 40 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 41 US. Treasury and agency securities pledged" 641,122 641,865 642,274 641,787 646,042 635,128 639,229 646,042 42 Other eligible assets 0 0 0 0 0 0 0 0 MEMO 43 Total U.S. Treasury and agency securities" 671,982 666,334 684,795 671,401 684,782 663,821 673,224 684,782 44 Less: face value of securities under reverse repurchase agreements'2 19,736 20,299 19,807 19,997 20,821 18,028 19,425 20,821 45 U.S. Treasury and agency securities eligible to be pledged .... 652,247 646,035 664,988 651,404 663,961 645,794 653,798 663,961 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical 7. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury release. For ordering address, see inside front cover. bills maturing within ninety days. 2. Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury 8. Cash value of agreements, which are fully collateralized by U.S. Treasury securities. securities. 9. Includes exchange-translation account reflecting the daily revaluation at market 3. Face value of the securities. exchange rates of foreign exchange commitments. 4. Compensation that adjusts for the effect of inflation on the original face value of 10. Includes U.S. Treasury STRIPS and other zero coupon bonds at face value. inflation-indexed securities. 11. Includes face value of U.S. Treasury and agency securities held outright, compensation 5. Cash value of agreements, which are fully collateralized by U.S. Treasury and federal to adjust for the effect of inflation on the original face value of inflation-indexed securities, agency securities. and cash value of repurchase agreements. 6. Valued daily at market exchange rates. 12. Face value of agreements, which are fully collateralized by U.S. Treasury securities. 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 2003 2003 Apr. 2 Apr. 9 Apr. 16 Apr. 23 Apr. 30 Feb. Mar. Apr. 1 Total loans 15 33 46 30 35 5 30 35 2 Within fifteen days' 6 26 45 29 28 5 30 28 3 Sixteen days to ninety days 9 8 1 1 7 0 0 7 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 641,472 645,074 646,785 646,891 647,271 636,911 641,464 647,271 6 Within fifteen days' 37,761 39,537 49,663 51,906 46,750 23,882 24,647 46,750 7 Sixteen days to ninety days 139,767 139,581 129,782 127,946 126,284 146,519 146,179 126,284 8 Ninety-one days to one year 150,962 152,215 153,573 154,035 153,916 147,029 149,328 153,916 9 One year to five years 180,779 181,519 181,526 181,533 188,832 187,927 189,111 188,832 10 Five years to ten years 52,293 52,301 52,309 51,529 51,538 51,727 52,290 51,538 11 More than ten years 79,911 79,921 79,932 79,942 79,952 79,827 79,908 79,952 12 Total federal agency obligations 10 10 10 10 10 10 10 10 13 Within fifteen days1 0 0 0 0 0 0 0 0 14 Sixteen days to ninety days 0 0 0 0 0 0 0 0 15 Ninety-one days to one year 10 10 10 10 10 10 10 10 16 One year to five years 0 0 0 0 0 0 0 0 17 Five years to ten years 0 0 0 0 0 0 0 0 18 More than ten years 0 0 0 0 0 0 0 0 1. Holdings under repurchase agreements are classified as maturing within fifteen days in 2. Includes compensation that adjusts for the effects of inflation on the principal of accordance with maximum maturity of the agreements. inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • July 2003 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2002 2003 IItteemm D 19 e 9 c 9 . 2 D 0 e 0 c 0 . 2 D 0 e 0 c 1 . 2 D 0 e 0 c 2 . Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 41.81 38.54 41.24 40.12 39.25 39.18 39.69 40.12 40.61 40.76 40.94 40.79 2 Nonborrowed reserves4 41.49 38.33 41.18 40.04 39.02 39.04 39.41 40.04 40.58 40.73 40.92 40.76 3 Required reserves 40.51 37.11 39.60 38.12 37.78 37.63 38.07 38.12 38.95 38.85 39.33 39.27 4 Monetary base5 593.14 584.72 635.56 681.77 671.45 674.30 677.52 681.77 685.59 691.31 695.12r 698.25 Not seasonally adjusted 5 Total reserves6 41.89 38.53 41.20 40.03 38.78 38.54 38.98 40.03 42.73 41.87 40.56 41.15 6 Nonborrowed reserves 41.57 38.32 41.13 39.95 38.55 38.40 38.71 39.95 42.70 41.85 40.54 41.12 7 Required reserves1 40.59 37.10 39.55 38.03 37.31 36.99 37.37 38.03 41.07 39.97 38.95 39.63 8 Monetary base8 600.72 590.06 639.91 686.17 669.71 671.48 676.66 686.17 688.27 690.20 693.87 697.76 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS9 9 Total reserves10 41.65 38.47 41.08 40.17 38.91 38.69 39.14 40.17 42.74 41.87 40.57 41.16 10 Nonborrowed reserves 41.33 38.26 41.01 40.09 38.68 38.54 38.87 40.09 42.72 41.85 40.55 41.13 11 Required reserves 40.36 37.05 39.43 38.18 37.43 37.13 37.53 38.18 41.08 39.97 38.96r 39.64 12 Monetary base" 608.02 596.98 648.74 697.09 679.96 681.83 687.23 697.09 699.18 700.99 705.00 709.03 13 Excess reserves12 1.30 1.43 1.65 2.00 1.48 1.55 1.62 2.00 1.66 1.91 1.61 1.52 14 Borrowings from the Federal Reserve .32 .21 .07 .08 .23 .14 .27 .08 .03 .03 .02 .03 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly would have been in past periods had current reserve requirements been in effect. Breakstatistical release. Historical data starting in 1959 and estimates of the effect on required adjusted required reserves include required reserves against transactions deposits and nonperreserves of changes in reserve requirements are available from the Money and Reserves sonal time and savings deposits (but not reservable nondeposit liabilities). Projections Section, Division of Monetary Affairs, Board of Governors of the Federal 8. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus Reserve System, Washington, DC 20551. (2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly 2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all changes in reserve requirements. (See also table 1.10.) those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted 3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break- difference between current vault cash and the amount applied to satisfy current reserve adjusted required reserves (line 4) plus excess reserves (line 16). requirements. 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, 9. Reflects actual reserve requirements, including those on nondeposit liabilities, with no break-adjusted total reserves (line 1) less total borrowings of depository institutions from the adjustments to eliminate the effects of discontinuities associated with regulatory changes in Federal Reserve (line 17). reserve requirements. 5. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally 10. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency requirements. component of the money stock, plus (3) (for all quarterly reporters on the "Report of 11. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for difference between current vault cash and the amount applied to satisfy current reserve all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault requirements. Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the 6. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess difference between current vault cash and the amount applied to satisfy current reserve reserves (line 16). requirements. Since February 1984, currency and vault cash figures have been measured over 7. To adjust required reserves for discontinuities that are due to regulatory changes in the computation periods ending on Mondays. reserve requirements, a multiplicative procedure is used to estimate what required reserves 12. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). 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 2003 1999 2000 2001 2002 IItteemm Dec. Dec. Dec. Dec. Jan. Feb. Mar.' Apr. Seasonally adjusted Measures1 1 Ml 1,121.9 1,084.9 1,173.4 1,210.5 1,212.6 1,232.6 1,235.9 1,236.0 ? M2 4,648.0 4,926.9 5,440.6 5,796.6 5,827.3 5,883.5 5,898.7 5,921.1 3 M3 6,529.8 7,093.3 7,995.3 8,519.5r 8,517.6r 8,572.9' 8,595.4 8,600.1 Ml components 4 Currency3 517.5 531.0 581.4 626.7 630.1 635.3 639.2 642.1 Travelers checks4 8.3 8.0 7.8 7.5 7.6 7.6 7.5 7.4 6 Demand deposits5 352.2 306.7 325.6 296.4 295.5r 305.6 303.8 303.8 7 Other checkable deposits6 244.0 239.2 258.8 280.01 279.3 284.1 285.4 282.7 Nontransaction components 8 In M27 3,526.0 3,842.0 4,267.1 4,586.1 4,614.7 4,650.9 4,662.8 4,685.1 9 In M3 only8 1,881.8 2,166.4 2,554.8 2,722.9' 2,690.3r 2,689.4' 2,696.6 2,679.0 Commercial banks 10 Savings deposits, including MMDAs 1,288.8 1,422.3 1,734.5 2,047.5 2,079.4 2,107.1 2,114.9 2,146.0 11 Small time deposits9 634.7 698.8 634.2 583.6 580.2 576.7 573.3 569.1 12 Large time deposits1 " 650.2 717.4 670.8 683.3 691.7 700.0 704.1 697.4 Thrift institutions 13 Savings deposits, including MMDAs 449.6 451.7 569.0 710.3 723.1 739.6 751.5 762.8 14 Small time deposits9 320.3 344.4 338.7 300.4 299.2 297.6 297.1 296.4 15 Large time deposits10 91.0 102.9 114.9 116.7 118.0 118.1 117.4 117.7 Money market mutual funds 16 Retail 832.7 924.8 990.7 944.3 932.8 929.9 925.9 910.8 17 Institution-only 634.4 788.2 1,189.7 1,233.0 1,196.7 1,176.7 1,164.2 1,143.7 Repurchase agreements and eurodollars 18 Repurchase agreements12 335.7 363.5 375.0 470.7' 461,7r 475.7' 493.4 501.0 19 Eurodollars12 170.5 194.3 204.3 219.2 222. lr 219.0' 217.4 219.1 Not seasonally adjusted Measures2 70 Ml 1,148.3 1,112.3 1,203.5 1,240.4 1,219.7 1,218.4 1,237.4 1,252.1 ?1 M2 4,675.0 4,962.3 5,483.5 5,845.9 5,836.4 5,865.8 5,931.6 5,988.3 22 M3 6,572.4 7,147.8 8,067.0 8,597.0r 8,561.7r 8,602.8' 8,657.1 8,662.0 MI components 23 Currency3 521.5 535.2 584.9 629.9 628.0 634.3 638.9 642.3 74 Travelers checks4 8.4 8.1 7.9 7.7 7.7 7.7 7.7 7.5 25 Demand deposits5 371.8 326.5 347.6 316.8 300.3 297.1 302.6 307.6 26 Other checkable deposits6 246.6 242.5 263.2 286.0 283.7 279.3 288.2 294.8 Nontransaction components 77 In M27 3,526.7 3,849.9 4,280.0 4,605.5 4,616.7r 4,647.3 4,694.2 4,736.2 28 In M3 only8 1,897.4 2,185.6 2,583.5 2,751. r 2,1253' 2,737.0' 2,725.6 2,673.7 Commercial banks 29 Savings deposits, including MMDAs 1,288.8 1,426.9 1,742.3 2,060.0 2,074.8 2,096.2 2,126.1 2,170.6 30 Small time deposits9 635.7 700.0 635.2 584.3 580.4 576.6 572.6 568.1 31 Large time deposits'011 651.7 717.6 669.7 681.6 686.0 696.1 701.9 695.9 Thrift institutions 32 Savings deposits, including MMDAs 449.6 453.1 571.5 714.7 721.5 735.7 755.5 771.6 33 Small time deposits9 320.8 345.0 339.2 300.7 299.3 297.5 296.7 295.9 34 Large time deposits10 91.2 103.0 114.7 116.4 117.0 117.5 117.1 117.4 Money market mutual funds 35 Retail 832.0 925.0 991.8 945.8 940.8 941.3 943.4 930.0 36 Institution-only 648.2 805.6 1,217.7 1,260.8 1,234.0 1,214.1 1,185.9 1,140.9 Repurchase agreements and eurodollars 37 Repurchase agreements12 334.7 364.2 376.5 472.5r 465.3' 486.9' 499.5 497.2 38 Eurodollars'2 171.7 195.2 204.9 219.8 223.0' 222.4' 221.2 222.4 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • July 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 M1. 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 U.S. 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 2002 2002 2003 2003 Apr. Oct. Nov. Dec.' Jan.' Feb.' Mar.' Apr. Apr. 9 Apr. 16 Apr. 23 Apr. 30 Seasonally adjusted Assets 1 Bank credit 5,442.5 5,759.4 5,838.2 5,896.8 5,889.6 5,963.8 5,993.9 6,026.2 6,010.6 5,991.3 6,034.9 6,077.0 ? Securities in bank credit 1,498.2 1,637.3 1,679.4 1,708.9 1,702.0 1,743.8 1,754.6 1,765.6 1,742.0 1,727.8 1,780.9 1,815.4 U.S. government securities 867.0 973.8 1,004.3 1,020.1 1,021.0 1,046.7 1,056.7 1,087.4 1,059.5 1,050.9 1,107.9 1,137.1 4 Other securities 631.2 663.5 675.2 688.8 681.0 697.1 697.9 678.2 682.4 676.9 673.0 678.3 Loans and leases in bank credit2 .... 3,944.3 4,122.2 4,158.8 4,187.9 4,187.6 4,220.0 4,239.3 4,260.6 4,268.7 4,263.5 4,254.0 4,261.6 6 Commercial and industrial 1,006.4 969.1 968.2 966.2 961.0 953.2 946.3 943.7 944.2 946.5 943.2 940.8 7 Real estate 1,795.8 1,972.8 2,007.7 2,029.7 2,046.1 2,076.7 2,089.4 2,104.8 2,105.1 2,105.9 2,103.9 2,110.4 8 Revolving home equity 171.5 205.1 209.2 213.8 217.7 222.3 229.4 233.4 232.8 232.8 233.9 234.3 9 Other 1,624.3 1,767.7 1,798.6 1,815.9 1,828.4 1,854.4 1,859.9 1,871.5 1,872.4 1,873.1 1,870.0 1,876.1 10 Consumer 565.3 584.9 585.7 588.3 592.8 593.9 590.9 588.4 587.4 589.0 590.0 587.0 11 Security3 168.2 183.0 185.8 189.5 176.5 185.9 202.0 202.6 217.7 199.2 195.9 196.9 1? Other loans and leases 408.6 412.3 411.3 414.2 411.3 410.3 410.8 421.1 414.2 423.0 420.9 426.4 n Interbank loans 271.5 328.1 325.5 328.3 307.6 305.9 316.0 309.9 292.8 307.0 311.3 326.0 14 Cash assets4 300.3 317.8 315.4 316.9 312.8 316.0 322.1 317.6 307.8 325.4 308.3 326.8 15 Other assets5 474.3 507.5 509.9 505.2 506.7 533.2 526.4 534.0 535.9 527.0 530.0 546.5 16 Total assets6 6,413.1 6,836.5 6,912.2 6,970.7 6,939.5 7,041.3 7,080.5 7,110.7 7,070.3 7,073.8 7,107.3 7,199.4 Liabilities 17 Deposits 4,313.9 4,486.7 4,509.3 4,488.2 4,510.5 4,537.4 4,586.4 4,613.4 4,566.9 4,608.4 4,608.4 4,669.0 18 Transaction 603.7 609.7 605.9 611.3 607.7 613.0 618.3 630.8 584.9 623.1 652.3 672.4 19 Nontransaction 3,710.2 3,876.9 3,903.4 3,877.0 3,902.8 3,924.4 3,968.1 3,982.6 3,982.1 3,985.3 3,956.1 3,996.6 70 Large time l,033.2r 1,024.6' 1,005.7' 979.4 983.2 998.7 1,004.7 988.4 984.9 978.3 990.1 997.3 ?1 Other 2,677.0' 2,852.4' 2,897.6' 2,897.6 2,919.6 2,925.7 2,963.4 2,994.2 2,997.2 3,007.0 2,966.0 2,999.3 22 Borrowings 1,219.1 1,332.0 1,366.1 1,397.3 1,333.6 1,369.2 1,395.3 1,406.5 1,405.2 1,400.8 1,404.0 1,421.8 ?3 From banks in the U.S 383.1 414.9 421.9 417.6 380.4 386.9 395.6 395.2 391.2 400.9 387.7 400.0 74 From others 836.0 917.1 944.2 979.7 953.2 982.4 999.7 1,011.3 1,014.0 999.9 1,016.3 1,021.8 75 Net due to related foreign offices 104.6 117.5 122.9 152.0 156.9 146.0 139.4 145.3 151.9 136.8 150.5 143.0 26 Other liabilities 326.5 427.8 431.4 441.5 442.7 452.3 443.7 446.6 444.9 455.2 440.9 447.3 27 Total liabilities 5,964.0 6,364.0 6,429.7 6,479.0 6,443.7 6,504.9 6,564.8 6,611.8 6,569.0 6,601.1 6,603.9 6,681.1 28 Residual (assets less liabilities)7 449.1 472.5 482.5 491.6 495.8 536.4 515.7 498.9 501.4 472.6 503.4 518.3 Not seasonally adjusted Assets 79 Bank credit 5,437.6 5,761.3 5,853.6 5,930.8 5,906.9 5,967.3 5,982.3 6,020.7 5,988.8 5,997.4 6,032.0 6,076.8 30 Securities in bank credit 1,496.7 1,635.1 1,682.7 1,715.5 1,712.4 1,753.0 1,759.6 1,763.4 1,743.8 1,728.0 1,775.2 1,809.1 31 U.S. government securities 867.1 969.8 1,006.0 1,024.3 1,025.8 1,053.1 1,061.6 1,087.2 1,064.6 1,052.6 1,104.7 1,131.7 3? Other securities 629.5 665.3 676.7 691.2 686.6 699.9 697.9 676.2 679.2 675.4 670.5 677.4 33 Loans and leases in bank credit2 .... 3,941.0 4,126.1 4,170.8 4,215.3 4,194.5 4,214.4 4,222.7 4,257.3 4,245.0 4,269.4 4,256.8 4,267.7 34 Commercial and industrial 1,010.2 969.5 968.2 964.9 955.1 951.2 947.6 947.5 944.8 951.0 948.2 946.0 35 Real estate 1,792.7 1,974.4 2,012.3 2,034.3 2,046.5 2,072.4 2,080.4 2,101.2 2,099.5 2,102.1 2,100.7 2,110.0 36 Revolving home equity 171.3 205.6 209.0 213.4 217.1 222.6 227.4 233.1 230.8 232.1 234.7 235.6 37 Other 1,621.4 1,768.8 1,803.2 1,820.9 1,829.4 1,849.8 1,853.0 1,868.1 1,868.7 1,870.0 1,866.0 1,874.3 38 Consumer 562.1 585.3 588.1 597.1 600.5 597.1 588.6 585.6 582.3 585.3 588.4 586.4 39 Credit cards and related plans . . 223.3 232.0 231.6 238.6 234.8 228.0 223.7 219.9 217.7 219.7 221.9 220.4 40 Other 338.8 353.2 356.5 358.6 365.6 369.1 364.9 365.7 364.6 365.6 366.5 365.9 41 Security3 167.2 185.2 190.2 200.1 182.8 187.6 197.3 201.8 203.8 206.6 199.9 199.5 4? Other loans and leases 408.9 411.7 412.1 418.8 409.6 405.9 408.9 421.2 414.7 424.4 419.6 425.9 43 Interbank loans 280.8 320.9 330.6 335.4 304.4 303.2 322.5 321.0 314.6 328.7 311.4 324.6 44 Cash assets4 299.1 320.9 325.2 339.1 328.8 316.5 311.3 316.4 297.9 331.9 301.7 331.4 45 Other assets5 473.8 507.4 513.4 510.0 510.5 530.8 525.7 533.3 537.9 526.7 526.0 544.9 46 Total assets6 6,415.8 6,834.7 6,946.1 7,038.7 6,973.4 7,039.8 7,063.7 7,114.4 7,062.4 7,107.8 7,094.0 7,200.7 Liabilities 47 Deposits 4,339.0 4,470.1 4,524.3 4,539.0 4,533.8 4,558.3 4,593.6 4,638.6 4,614.2 4,660.2 4,606.5 4,669.6 48 Transaction 609.4 606.8 613.5 644.1 621.8 605.3 609.9 636.8 588.2 644.9 646.9 674.8 49 Nontransaction 3,729.5 3,863.3 3,910.8 3,894.9 3,912.0 3,953.0 3,983.6 4,001.8 4,026.0 4,015.2 3,959.6 3,994.8 50 Large time 1,039.lr 1,013.8' 1,009.6' 992.1 999.8 1,009.3 1,007.4 992.8 987.3 982.4 995.3 1,003.4 51 Other 2,690.4r 2,849.6' 2,901.2' 2,902.8 2,912.3 2,943.7 2,976.2 3,009.1 3,038.7 3,032.8 2,964.3 2,991.3 5?. Borrowings 1,222.9 1,334.6 1,367.4 1,396.5 1,346.7 1,371.4 1,391.6 1,410.6 1,394.8 1,400.0 1,417.7 1,439.6 53 From banks in the U.S 386.8 413.4 418.6 419.3 385.0 390.4 399.0 399.3 392.9 404.3 393.3 406.1 54 From others 836.0 921.1 948.8 977.1 961.7 981.1 992.7 1,011.3 1,001.9 995.7 1,024.4 1,033.5 55 Net due to related foreign offices 96.2 119.5 126.8 158.2 160.9 151.4 137.4 135.7 136.3 121.3 142.9 142.1 56 Other liabilities 318.4 431.5 437.5 448.4 446.4 458.6 439.9 434.1 426.1 435.2 431.1 444.8 57 Total liabilities 5,976.4 6,355.6 6,456.0 6,542.0 6,487.9 6,539.8 6,562.6 6,619.0 6,571.5 6,616.6 6,598.2 6,696.1 58 Residual (assets less liabilities)7 439.4 479.1 490.2' 496.7 485.5 500.0 501.1 495.4 490.9 491.2 495.7 504.6 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • July 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2002 2002 2003 2003 Apr. Oct. Nov. Dec.' Jan.' Feb.' Mar.' Apr. Apr. 9 Apr. 16 Apr. 23 Apr. 30 Seasonally adjusted Assets 1 Bank credit 4,841.5 5,144.9 5,218.0 5,260.6 5,262.0 5,323.3 5,335.3 5,375.2 5,341.4 5,348.2 5,391.9 5,431.0 2 Securities in bank credit 1,269.3 1,392.4 1,431.5 1,447.1 1,439.1 1,470.9 1,477.5 1,495.3 1,467.7 1,457.9 1,514.4 1,546.6 3 U.S. government securities 794.9 884.8 910.8 918.2 918.3 939.2 945.1 974.2 944.7 938.2 995.6 1,025.0 4 Other securities 474.4 507.6 520.7 528.9 520.8 531.7 532.3 521.1 523.1 519.7 518.8 521.7 5 Loans and leases in bank credit2 .... 3,572.2 3,752.5 3,786.5 3,813.5 3,822.8 3,852.4 3,857.8 3,879.9 3,873.7 3,890.4 3,877.5 3,884.3 6 Commercial and industrial 809.3 788.0 789.2 787.8 784.6 780.9 777.3 774.7 775.0 777.0 773.9 772.3 7 Real estate 1,777.5 1,953.2 1,987.8 2,010.2 2,027.2 2,058.6 2,071.5 2,088.0 2,088.3 2,089.2 2,087.1 2,093.5 8 Revolving home equity 171.5 205.1 209.2 213.8 217.7 222.3 229.4 233.4 232.8 232.8 233.9 234.3 9 Other 1,606.0 1,748.1 1,778.6 1,796.4 1,809.5 1,836.3 1,842.1 1,854.6 1,855.5 1,856.4 1,853.2 1,859.2 10 Consumer 565.3 584.9 585.7 588.3 592.8 593.9 590.9 588.4 587.4 589.0 590.0 587.0 11 Security3 82.7 85.6 81.1 79.4 71.4 73.0 71.9 72.1 73.4 76.2 70.0 69.9 12 Other loans and leases 337.3 340.8 342.7 347.8 346.9 345.9 346.2 356.6 349.6 359.1 356.5 361.7 13 Interbank loans 249.4 303.6 300.0 298.3 278.8 277.1 285.6 282.2 263.9 282.3 283.5 296.4 14 Cash assets4 253.0 272.2 273.0 272.3 272.8 277.7 279.6 273.1 266.3 278.7 265.0 279.9 15 Other assets5 450.3 473.7 475.3 469.4 466.8 491.5 488.3 492.2 494.5 486.3 487.9 502.8 16 Total assets6 5,719.0 6,118.5 6,190.0 6,224.4 6,203.4 6,292.4 6,311.3 6,346.2 6,289.8 6,318.9 6,351.6 6,433.7 Liabilities 17 Deposits 3,815.6 4,015.2 4,056.7 4,062.7 4,083.7 4,094.1 4,137.2 4,176.5 4,128.2 4,167.2 4,171.8 4,237.7 18 Transaction 593.2 600.1 596.7 602.1 598.1 603.3 607.7 620.6 574.9 613.0 642.3 661.7 19 Nontransaction 3,222.4 3,415.1 3,460.0 3,460.6 3,485.6 3,490.8 3,529.5 3,555.8 3,553.3 3,554.2 3,529.5 3,575.9 20 Large time 547.5' STl.C 571.4' 570.6 581.4 586.9 586.7 585.2 578.0 571.3 587.9 602.1 21 Other 2,675.0' 2,844.2' 2,888.6' 2,890.0 2,904.2 2,903.9 2,942.8 2,970.7 2,975.4 2,982.9 2,941.7 2,973.8 22 Borrowings 1,030.4 1,099.4 1,114.9 1,119.4 1,062.0 1,092.4 1,095.8 1,098.9 1,093.7 1,098.6 1,101.5 1,106.0 23 From banks in the U.S 361.1 391.9 396.7 387.5 349.3 355.5 361.4 367.0 366.3 375.2 362.7 364.3 24 From others 669.3 707.4 718.1 731.8 712.6 737.0 734.5 731.9 727.4 723.4 738.8 741.7 25 Net due to related foreign offices 178.6 189.1 196.3 211.2 226.8 224.6 225.1 224.0 225.6 218.2 226.6 227.9 26 Other liabilities 254.3 328.1 332.1 339.3 343.8 351.1 348.4 356.6 355.1 361.2 354.1 357.3 27 Total liabilities 5,278.9 5,631.8 5,700.0 5,732.6 5,716.3 5,762.2 5,806.5 5,855.9 5,802.7 5,845.3 5,854.0 5,928.8 28 Residual (assets less liabilities)7 440.0 486.7 490.0 491.8 487.2 530.2 504.8 490.2 487.1 473.7 497.6 504.9 Not seasonally adjusted Assets 29 Bank credit 4,836.8 5,147.2 5,229.8 5,284.6 5,271.3 5,322.3 5,325.9 5,369.8 5,331.6 5,348.) 5,384.0 5,428.5 30 Securities in bank credit 1,267.8 1,390.2 1,434.8 1,453.7 1,449.5 1,480.0 1,482.5 1,493.2 1,469.5 1,458.1 1,508.7 1,540.3 31 U.S. government securities 795.0 880.8 912.5 922.4 923.1 945.5 950.1 974.1 949.7 939.8 992.4 1,019.6 32 Other securities 472.8 509.4 522.3 531.3 526.4 534.6 532.4 519.1 519.8 518.3 516.3 520.7 33 Loans and leases in bank credit2 .... 3,569.0 3,757.0 3,795.0 3,830.9 3,821.8 3,842.3 3,843.4 3,876.7 3,862.1 3,890.0 3,875.3 3,888.2 34 Commercial and industrial 814.2 788.3 787.9 785.1 778.6 777.5 777.1 779.4 776.6 782.0 780.0 779.3 35 Real estate 1,774.4 1,954.9 1,992.3 2,014.8 2,027.6 2,054.4 2,062.6 2,084.3 2,082.6 2,085.4 2,083.9 2,093.1 36 Revolving home equity 171.3 205.6 209.0 213.4 217.1 222.6 227.4 233.1 230.8 232.1 234.7 235.6 37 Other 1,603.1 1,749.3 1,783.3 1,801.4 1,810.5 1,831.8 1,835.2 1,851.3 1,851.8 1,853.3 1,849.2 1,857.4 38 Consumer 562.1 585.3 588.1 597.1 600.5 597.1 588.6 585.6 582.3 585.3 588.4 586.4 39 Credit cards and related plans . . 223.3 232.0 231.6 238.6 234.8 228.0 223.7 219.9 217.7 219.7 221.9 220.4 40 Other 338.8 353.2 356.5 358.6 365.6 369.1 364.9 365.7 364.6 365.6 366.5 365.9 41 Security3 81.3 87.8 83.4 83.4 70.6 71.8 71.7 71.0 70.8 77.6 68.6 68.5 42 Other loans and leases 337.0 340.8 343.3 350.5 344.6 341.4 343.5 356.3 349.8 359.8 354.5 361.0 43 Interbank loans 258.7 296.4 305.0 305.4 275.6 274.3 292.1 293.3 285.7 304.0 283.7 295.0 44 Cash assets4 253.8 274.3 280.4 291.3 285.8 277.2 270.0 273.8 258.7 287.2 260.5 286.2 45 Other assets5 449.9 474.1 478.9 473.1 469.2 488.5 486.6 491.7 496.5 486.2 484.3 501.5 46 Total assets6 5,724.1 6,116.7 6,218.0 6,278.2 6,225.2 6,284.7 6,296.8 6,352.1 6,296.2 6,349.0 6,335.8 6,434.6 Liabilities 47 Deposits 3,833.7 4,011.0 4,071.6 4,102.6 4,090.9 4,104.8 4,140.3 4,195.6 4,172.9 4,214.0 4,162.6 4,228.9 48 Transaction 599.5 596.9 604.0 634.1 611.9 595.6 599.7 627.1 578.8 635.5 637.5 664.5 49 Nontransaction 3,234.2 3,414.0 3,467.6 3,468.5 3,479.0 3,509.2 3,540.6 3,568.5 3,594.0 3,578.5 3,525.1 3,564.3 50 Large time 545.8' 572.5' 575.4' 573.5 582.7 587.9 585.2 583.3 577.3 570.1 585.6 599.0 51 Other 2,688.4' 2,841.6' 2,892.2' 2,895.0 2,896.3 2,921.3 2,955.4 2,985.2 3,016.7 3,008.4 2,939.5 2,965.3 52 Borrowings 1,034.2 1,101.9 1,116.2 1,118.5 1,075.1 1,094.6 1,092.2 1,103.1 1,083.3 1,097.9 1,115.2 1,123.7 53 From banks in the U.S 364.9 390.4 393.5 389.3 353.9 359.0 364.8 371.1 368.0 378.6 368.3 370.4 54 From others 669.3 711.5 722.7 729.2 721.2 735.6 727.4 732.0 715.3 719.3 746.9 753.4 55 Net due to related foreign offices 170.8 192.5 201.5 215.6 228.3 228.9 220.8 214.8 212.3 204.6 219.1 225.0 56 Other liabilities 246.5 332.6 339.1 345.1 345.8 356.6 343.1 344.3 337.9 342.4 344.3 353.5 57 Total liabilities 5,285.2 5,638.1 5,728.4 5,781.9 5,740.0 5,784.9 5,796.3 5,857.8 5,806.4 5,858.8 5,841.1 5,931.1 58 Residual (assets less liabilities)7 438.9 478.6 489.6 496.3 485.2 499.8 500.5 494.3 489.9 490.1 494.6 503.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities 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 2002 2002 2003 2003 Apr.' Oct.' Nov.' Dec.' Jan.' Feb.' Mar.' Apr. Apr. 9 Apr. 16 Apr. 23 Apr. 30 Seasonally adjusted Assets i Bank credit 2,627.3 2,782.8 2,833.5 2,864.6 2,861.9 2,908.4 2,905.5 2,924.8 2,894.5 2,901.5 2,938.6 2,973.6 2 Securities in bank credit 648.8 738.0 770.6 780.2 774.3 805.4 802.9 808.7 780.9 776.2 829.2 853.0 U.S. government securities 387.4 436.7 455.9 458.3 461.0 479.7 476.2 491.9 464.5 460.9 513.9 533.8 4 Trading account 38.3 37.7 47.9 44.6 41.2 54.5 41.8 40.7 39.9 41.7 40.1 41.9 Investment account 349.1 399.0 408.0 413.7 419.8 425.2 434.4 451.2 424.5 419.3 473.9 492.0 6 Other securities 261.4 301.3 314.7 321.9 313.3 325.7 326.7 316.8 316.4 315.2 315.3 319.1 7 Trading account 127.8 153.8 161.0 164.9 160.0 172.6 171.6 161.5 160.9 159.4 158.8 166.0 8 Investment account 133.6 147.5 153.7 157.0 153.3 153.1 155.1 155.3 155.6 155.8 156.5 153.2 9 State and local government . . 27.1 28.8 29.3 29.5 29.4 29.6 30.1 30.9 30.8 30.7 31.1 31.0 10 Other 106.5 118.7 124.4 127.5 123.9 123.5 125.0 124.4 124.8 125.1 125.4 122.2 11 Loans and leases in bank credit2 .... 1,978.5 2,044.9 2,062.9 2,084.4 2,087.6 2,103.0 2,102.6 2,116.0 2,113.6 2,125.4 2,109.4 2,120.6 12 Commercial and industrial 518.1 487.1 485.7 483.6 480.8 475.9 472.1 469.7 470.3 471.5 469.3 467.4 13 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 14 Other 518.1 487.1 485.7 483.6 480.8 475.9 472.1 469.7 470.3 471.5 469.3 467.4 15 Real estate 853.4 945.7 970.3 990.7 1,006.7 1,028.4 1,035.2 1,041.4 1,043.9 1,042.4 1,037.1 1,046.3 16 Revolving home equity 109.1 130.0 133.0 136.9 140.0 142.5 147.9 150.5 150.1 150.0 150.9 151.0 17 Other 744.3 815.6 837.3 853.8 866.7 885.9 887.3 890.9 893.8 892.3 886.1 895.3 18 Consumer 289.4 298.3 296.7 296.9 297.0 295.0 291.5 290.0 289.0 289.8 290.7 290.1 19 Security3 75.9 77.5 73.0 71.3 63.0 64.5 63.6 63.8 65.5 67.9 61.8 60.9 20 Federal funds sold to and repurchase agreements with broker-dealers 63.7 67.1 62.2 60.9 52.4 53.8 52.2 52.0 53.7 56.8 50.7 47.3 71 Other 12.2 10.3 10.8 10.4 10.6 10.7 11.4 11.8 11.8 11.0 11.0 13.6 72 State and local government 13.3 13.0 12.2 11.9 12.0 12.3 12.5 12.4 12.4 12.5 12.3 12.4 23 Agricultural 9.3 8.2 8.2 8.2 8.1 7.8 7.8 7.7 7.7 7.7 7.6 7.6 24 Federal funds sold to and repurchase agreements with others 22.9 19.5 18.8 24.6 23.5 23.6 23.2 24.4 19.3 27.8 22.1 29.2 2.5 All other loans 66.1 70.6 73.9 74.4 75.4 75.1 76.5 87.6 86.3 86.8 89.6 87.5 26 Lease-financing receivables 130.2 125.0 124.1 122.8 120.9 120.6 120.2 119.1 119.1 119.0 119.0 119.2 27 Interbank loans 166.3 187.3 184.9 182.7 156.5 153.1 162.1 161.5 153.9 163.7 158.6 165.7 28 Federal funds sold to and repurchase agreements with commercial banks 91.7 87.5 90.5 88.2 87.7 83.0 91.5 90.4 85.4 91.3 83.9 9966..66 79 Other 74.6 99.8 94.4 94.5 68.7 70.1 70.6 71.0 68.5 72.4 74.7 69.2 30 Cash assets4 141.8 145.6 147.0 148.2 147.8 149.2 149.5 141.3 137.3 146.6 134.2 144.8 31 Other assets5 309.9 334.3 334.0 328.0 325.2 346.2 340.1 340.4 340.4 337.7 340.4 346.7 32 Total assets6 3,200.7 3,405.9 3,455.1 3,479.5 3,446.8 3,512.1 3,512.3 3,524.0 3,482.3 3,505.7 3,527.7 3,587.0 Liabilities 33 Deposits 1,837.4 1,917.1 1,944.7 1,954.6 1,967.9 1,968.4 1,987.0 2,010.7 1,975.8 1,999.1 2,010.4 2,056.5 34 Transaction 295.7 290.5 286.3 289.6 286.8 288.9 289.2 294.2 266.8 294.9 307.3 313.1 35 Nontransaction 1,541.7 1,626.6 1,658.4 1,665.1 1,681.0 1,679.5 1,697.8 1,716.5 1,709.0 1,704.2 1,703.1 1,743.4 36 Large time 248.5 267.3 265.9 262.7 274.3 277.0 272.4 270.1 262.8 256.4 272.6 287.3 37 Other 1,293.2 1,359.3 1,392.6 1,402.4 1,406.7 1,402.5 1,425.4 1,446.4 1,446.2 1,447.9 1,430.5 1,456.1 38 Borrowings 708.7 728.5 741.9 730.7 655.7 682.8 689.0 686.4 681.9 692.5 683.2 690.1 39 From banks in the U.S 251.3 263.0 269.1 249.1 193.8 196.4 204.8 208.9 209.2 218.9 202.4 204.5 40 From others 457.4 465.5 472.7 481.5 461.9 486.4 484.1 477.5 472.8 473.6 480.8 485.6 41 Net due to related foreign offices 168.9 176.8 185.0 198.8 211.4 211.5 213.5 210.1 213.1 204.6 213.1 211.8 42 Other liabilities 192.9 261.3 265.2 274.9 274.0 279.1 275.2 284.0 283.7 289.3 281.5 283.1 43 Total liabilities 2,907.9 3,083.6 3,136.8 3,158.9 3,109.0 3,141.8 3,164.7 3,191.1 3,154.5 3,185.5 3,188.2 3,241.4 44 Residual (assets less liabilities)7 292.8 322.4 318.3 320.6 337.8 370.4 347.6 332.9 327.9 320.2 339.5 345.6 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • July 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued C. Large domestically chartered commercial banks—Continued Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2002 2002 2003 2003 Apr.1" Oct.r Nov/ Dec/ Jan.' Feb.' Mar/ Apr. Apr. 9 Apr. 16 Apr. 23 Apr. 30 Not seasonally adjusted Assets 45 Bank credit 2,624.9 2,782.7 2,841.8 2,877.1 2,869.3 2,910.6 2,899.4 2,921.3 2,887.5 2,902.3 2,931.9 2,973.6 46 Securities in bank credit 646.0 737.9 775.0 785.3 782.9 813.7 805.2 805.1 780.5 774.7 822.0 846.5 A! U.S. government securities 386.2 434.9 458.8 461.0 464.0 485.2 478.5 490.3 467.4 460.9 509.2 528.4 48 Trading account 38.2 37.6 48.2 44.9 41.5 55.1 42.1 40.6 40.2 41.7 39.7 41.5 49 Investment account 348.0 397.3 410.6 416.1 422.5 430.1 436.4 449.7 427.2 419.2 469.5 486.9 50 Mortgage-backed securities . 268.4 313.3 324.8 317.2 323.2 329.4 332.7 352.9 329.6 322.5 373.5 391.0 51 Other 79.6 84.1 85.8 99.0 99.4 100.8 103.7 96.8 97.6 96.8 96.1 96.0 52 One year or less 18.7 22.2 23.6 24.6 21.7 23.3 24.8 24.6 24.3 24.6 24.8 25.1 53 One to five years 47.7 51.2 48.3 57.7 59.7 58.5 58.3 55.3 55.8 55.1 54.9 54.4 54 More than five years .... 13.3 10.6 13.9 16.7 17.9 19.0 20.6 16.9 17.6 17.0 16.3 16.5 55 Other securities 259.8 303.0 316.2 324.3 318.9 328.5 326.8 314.8 313.1 313.8 312.8 318.1 56 Trading account 127.0 154.7 161.8 166.1 162.9 174.1 171.7 160.5 159.2 158.7 157.6 165.4 57 Investment account 132.8 148.4 154.5 158.1 156.0 154.4 155.1 154.3 154.0 155.1 155.2 152.7 58 State and local government . 27.0 29.0 29.4 29.7 30.0 29.8 30.1 30.7 30.5 30.6 30.8 30.9 59 Other 105.8 119.4 125.0 128.4 126.1 124.6 125.0 123.6 123.5 124.5 124.4 121.8 60 Loans and leases in bank credit2 . . . 1,978.9 2,044.7 2,066.8 2,091.8 2,086.3 2,096.9 2,094.2 2,116.2 2,106.9 2,127.6 2,109.9 2,127.1 61 Commercial and industrial 520.9 487.6 485.9 481.0 476.3 473.9 472.0 472.3 470.9 474.3 472.3 471.5 62 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 63 Other 520.9 487.6 485.9 481.0 476.3 473.9 472.0 472.3 470.9 474.3 472.3 471.5 64 Real estate 851.9 946.3 973.0 992.0 1,005.6 1,024.1 1,028.4 1,039.5 1,040.6 1,040.2 1,035.4 1,047.3 65 Revolving home equity 109.1 130.3 132.7 136.0 139.2 142.8 146.2 150.4 148.6 149.7 151.7 152.2 66 Other 427.3 496.6 520.6 536.7 546.3 561.1 561.7 570.5 573.5 572.0 565.2 576.1 67 Commercial 315.5 319.5 319.8 319.2 320.2 320.2 320.4 318.6 318.4 318.5 318.5 318.9 68 Consumer 289.9 295.0 295.4 299.4 301.8 298.2 292.1 290.6 288.7 290.3 291.7 291.6 69 Credit cards and related plans . 116.2 117.1 114.7 117.3 115.3 109.7 105.9 103.5 102.4 103.3 104.2 104.2 70 Other 173.7 177.9 180.8 182.1 186.6 188.5 186.2 187.1 186.3 187.0 187.5 187.4 71 Security3 74.3 79.7 75.0 75.2 62.6 63.4 63.0 62.5 62.1 68.7 60.6 59.9 72 Federal funds sold to and repurchase agreements with broker-dealers 62.3 69.1 63.9 64.2 52.0 52.9 51.7 50.9 50.9 57.6 49.7 46.5 73 Other 12.0 10.6 11.1 10.9 10.5 10.5 11.3 11.6 11.2 11.2 10.8 13.4 74 State and local government 13.3 13.0 12.2 11.9 12.0 12.3 12.5 12.4 12.4 12.5 12.3 12.4 75 Agricultural 9.3 8.1 8.1 8.2 8.2 7.8 7.8 7.6 7.7 7.7 7.6 7.6 76 Federal funds sold to and repurchase agreements with others 22.9 19.5 18.8 24.6 23.5 23.6 23.2 24.4 19.3 27.8 22.1 29.2 77 All other loans 65.9 70.9 74.8 76.5 73.6 71.7 74.4 87.4 85.6 86.7 88.8 88.0 78 Lease-financing receivables 130.7 124.4 123.6 123.1 122.7 121.9 120.9 119.6 119.7 119.5 119.2 119.6 79 Interbank loans 169.5 181.4 186.4 187.2 159.6 151.3 162.2 164.8 154.3 169.5 159.7 171.3 80 Federal funds sold to and repurchase agreements with commercial banks 93.5 84.9 91.3 90.4 89.5 82.0 91.6 92.3 85.7 94.5 84.5 99.8 81 Other 76.1 96.5 95.2 96.8 70.1 69.3 70.6 72.5 68.7 75.0 75.3 71.5 82 Cash assets4 144.6 147.2 150.2 159.8 156.7 149.2 144.4 144.2 133.2 155.0 135.4 151.1 83 Other assets5 309.5 334.6 337.6 331.7 327.7 343.1 338.5 340.0 342.5 337.6 336.8 345.4 84 Total assets6 3,204.0 3,402.5 3,471.9 3,511.9 3,468.8 3,509.1 3,499.3 3,526.4 3,473.8 3,520.5 3,519.9 3,597.4 Liabilities 85 Deposits 1,844.6 1,914.7 1,951.6 1,971.1 1,968.8 1,972.4 1,985.1 2,018.1 1,992.6 2,023.4 2,001.8 2,052.4 86 Transaction 301.7 287.5 290.1 309.9 295.6 284.6 284.9 300.4 267.9 310.7 307.5 320.0 87 Nontransaction 1,542.9 1,627.1 1,661.4 1,661.2 1,673.1 1,687.8 1,700.2 1,717.7 1,724.7 1,712.7 1,694.3 1,732.4 88 Large time 246.8 268.8 269.9 265.5 275.6 277.9 270.9 268.2 262.1 255.1 270.3 284.2 89 Other 1,296.1 1,358.4 1,391.5 1,395.6 1,397.5 1,409.9 1,429.4 1,449.5 1,462.6 1,457.6 1,423.9 1,448.2 90 Borrowings 712.5 731.0 743.2 729.8 668.8 685.0 685.3 690.5 671.6 691.8 696.9 707.9 91 From banks in the U.S 255.0 261.5 265.9 250.9 198.3 199.9 208.2 213.0 210.8 222.3 208.1 210.6 92 From nonbanks in the U.S 457.5 469.6 477.3 478.9 470.4 485.1 477.1 477.5 460.7 469.5 488.9 497.3 93 Net due to related foreign offices 161.1 180.2 190.2 203.2 212.9 215.8 209.2 200.9 199.8 191.0 205.6 208.9 94 Other liabilities 185.1 265.8 272.2 280.7 276.0 284.6 269.9 271.8 266.4 270.5 271.7 279.3 95 Total liabilities 2,903.3 3,091.7 3,157.1 3,184.8 3,126.5 3,157.7 3,149.6 3,181.3 3,130.3 3,176.6 3,175.9 3,248.5 96 Residual (assets less liabilities)7 300.7 310.8 314.7 327.1 342.3 351.3 349.7 345.0 343.5 343.9 344.0 349.0 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities 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 2002 2002 2003 2003 Apr.' Oct.' Nov.' Dec.' Jan.' Feb.' Mar.' Apr. Apr. 9 Apr. 16 Apr. 23 Apr. 30 Seasonally adjusted Assets 1 Bank credit 2,214.2 2,362.0 2,384.5 2,396.0 2,400.1 2,414.8 2,429.8 2,450.4 2,447.0 2,446.7 2,453.4 2,457.3 ? Securities in bank credit 620.5 654.4 660.9 666.9 664.8 665.5 674.5 686.6 686.8 681.7 685.2 693.7 3 U.S. government securities 407.5 448.1 454.9 459.9 457.3 459.4 469.0 482.3 480.2 477.2 481.7 491.1 4 Other securities 213.0 206.4 206.0 207.0 207.5 206.0 205.6 204.3 206.7 204.5 203.5 202.5 5 Loans and leases in bank credit2 .... 1,593.6 1,707.6 1,723.6 1,729.2 1,735.3 1,749.4 1,755.2 1,763.8 1,760.2 1,765.0 1,768.1 1,763.7 6 Commercial and industrial 291.2 300.9 303.5 304.3 303.7 305.1 305.2 305.0 304.8 305.5 304.6 304.9 7 Real estate 924.1 1,007.5 1,017.4 1,019.6 1,020.4 1,030.2 1,036.3 1,046.6 1,044.4 1,046.8 1,050.1 1,047.2 8 Revolving home equity 62.4 75.1 76.2 76.9 77.7 79.8 81.5 82.9 82.7 82.7 83.0 83.3 9 Other 861.7 932.4 941.3 942.6 942.8 950.4 954.8 963.7 961.7 964.1 967.1 963.9 in Consumer 276.0 286.6 288.9 291.3 295.7 299.0 299.4 298.4 298.4 299.1 299.3 296.9 n Security3 6.8 8.1 8.1 8.1 8.4 8.5 8.4 8.3 7.9 8.3 8.2 9.0 1? Other loans and leases 95.6 104.5 105.6 105.9 107.0 106.6 106.0 105.5 104.7 105.3 105.9 105.8 n Interbank loans 83.1 116.2 115.1 115.6 122.4 124.0 123.5 120.8 110.0 118.5 125.0 130.7 14 Cash assets4 111.2 126.6 126.0 124.2 125.0 128.5 130.1 131.8 129.0 132.1 130.9 135.1 15 Other assets5 140.3 139.5 141.3 141.4 141.6 145.3 148.2 151.8 154.1 148.6 147.6 156.1 16 Total assets6 2,518.3 2,712.5 2,734.9 2,744.9 2,756.7 2,780.2 2,799.0 2,822.1 2,807.5 2,813.3 2,823.9 2,846.6 Liabilities 17 Deposits 1,978.2 2,098.2 2,112.0 2,108.1 2,115.9 2,125.6 2,150.2 2,165.8 2,152.5 2,168.1 2,161.4 2,181.2 18 Transaction 297.5 309.7 310.4 312.5 311.3 314.3 318.5 326.4 308.1 318.2 335.0 348.6 IP Nontransaction 1,680.8 1,788.5 1,801.6 1,795.6 1,804.5 1,811.3 1,831.7 1,839.4 1,844.3 1,849.9 1,826.4 1,832.5 ?n Large time 299.0 303.7 305.5 308.0 307.1 310.0 314.4 315.1 315.2 314.9 315.2 314.8 ?1 Other 1,381.8 1,484.9 1,496.1 1,487.6 1,497.5 1,501.4 1,517.4 1,524.3 1,529.2 1,535.0 1,511.2 1,517.7 77. Borrowings 321.7 370.9 373.0 388.7 406.3 409.7 406.9 412.6 411.8 406.1 418.3 415.8 ?3 From banks in the U.S 109.8 129.0 127.6 138.4 155.6 159.1 156.5 158.1 157.1 156.3 160.2 159.7 ?4 From others 211.9 241.9 245.4 250.3 250.7 250.6 250.3 254.4 254.6 249.8 258.0 256.1 7.5 Net due to related foreign offices 9.7 12.3 11.3 12.4 15.3 13.1 11.6 13.9 12.5 13.6 13.5 16.1 26 Other liabilities 61.4 66.8 66.9 64.5 69.8 72.0 73.1 72.5 71.5 71.9 72.6 74.2 27 Total liabilities 2,371.0 2,548.2 2,563.2 2,573.6 2,607.3 2,620.5 2,641.8 2,664.8 2,648.3 2,659.8 2,665.8 2,687.4 28 Residual (assets less liabilities)7 147.2 164.3 171.7 171.2 149.4 159.8 157.3 157.3 159.3 153.5 158.1 159.2 Not seasonally adjusted Assets 79 Bank credit 2,211.9 2,364.6 2,388.0 2,407.6 2,402.1 2,411.7 2,426.4 2,448.6 2,444.2 2,445.8 2,452.1 2,454.9 30 Securities in bank credit 621.8 652.3 659.8 668.4 666.6 666.3 677.2 688.1 689.0 683.4 686.7 693.8 31 U.S. government securities 408.8 445.9 453.7 461.4 459.1 460.3 471.6 483.8 482.3 478.9 483.1 491.2 3? Other securities 213.0 206.4 206.0 207.0 207.5 206.0 205.6 204.3 206.7 204.5 203.5 202.5 33 Loans and leases in bank credit2 .... 1,590.1 1,712.2 1,728.2 1,739.2 1,735.5 1,745.4 1,749.2 1,760.5 1,755.2 1,762.4 1,765.4 1,761.2 34 Commercial and industrial 293.3 300.7 302.0 304.1 302.3 303.6 305.1 307.2 305.7 307.7 307.7 307.8 35 Real estate 922.5 1,008.5 1,019.3 1,022.8 1,021.9 1,030.3 1,034.2 1,044.8 1,042.0 1,045.2 1,048.5 1,045.8 36 Revolving home equity 62.2 75.3 76.4 77.3 77.9 79.8 81.1 82.7 82.2 82.4 83.0 83.4 37 Other 860.3 933.2 942.9 945.5 944.0 950.5 953.1 962.2 959.9 962.8 965.5 962.4 38 Consumer 272.2 290.2 292.7 297.7 298.6 298.9 296.5 295.0 293.6 295.0 296.7 294.8 39 Credit cards and related plans .. 107.2 114.9 116.9 121.3 119.6 118.3 117.8 116.4 115.3 116.4 117.7 116.2 40 Other 165.1 175.3 175.8 176.5 179.1 180.7 178.7 178.6 178.3 178.6 179.0 178.5 41 Security3 7.0 8.0 8.4 8.2 8.0 8.4 8.6 8.5 8.7 8.8 8.0 8.6 4? Other loans and leases 95.0 104.8 105.9 106.3 104.6 104.2 104.8 104.9 105.1 105.7 104.6 104.2 43 Interbank loans 89.1 114.9 118.6 118.2 116.0 123.0 129.9 128.5 131.3 134.5 124.0 123.7 44 Cash assets4 109.2 127.1 130.2 131.5 129.2 128.0 125.6 129.6 125.4 132.2 125.1 135.1 45 Other assets5 140.3 139.5 141.3 141.4 141.6 145.3 148.2 151.8 154.1 148.6 147.6 156.1 46 Total assets6 2,520.1 2,714.2 2,746.1 2,766.3 2,756.4 2,775.7 2,797.5 2,825.8 2,822.4 2,828.5 2,815.9 2,837.2 Liabilities 47 Deposits 1,989.1 2,096.3 2,120.1 2,131.6 2,122.1 2,132.4 2,155.1 2,177.5 2,180.3 2,190.6 2,160.8 2,176.4 48 Transaction 297.8 309.4 313.9 324.2 316.3 311.0 314.8 326.7 311.0 324.9 330.0 344.5 49 Nontransaction 1,691.3 1,786.9 1,806.2 1,807.4 1,805.8 1,821.4 1,840.4 1,850.7 1,869.3 1,865.7 1,830.8 1,832.0 50 Large time 299.0 303.7 305.5 308.0 307.1 310.0 314.4 315.1 315.2 314.9 315.2 314.8 51 Other 1,392.3 1,483.2 1,500.7 1,499.4 1,498.8 1,511.4 1,526.0 1,535.7 1,554.1 1,550.8 1,515.6 1,517.1 52 Borrowings 321.7 370.9 373.0 388.7 406.3 409.7 406.9 412.6 411.8 406.1 418.3 415.8 53 From banks in the U.S 109.8 129.0 127.6 138.4 155.6 159.1 156.5 158.1 157.1 156.3 160.2 159.7 54 From others 211.9 241.9 245.4 250.3 250.7 250.6 250.3 254.4 254.6 249.8 258.0 256.1 55 Net due to related foreign offices 9.7 12.3 11.3 12.4 15.3 13.1 11.6 13.9 12.5 13.6 13.5 16.1 56 Other liabilities 61.4 66.8 66.9 64.5 69.8 72.0 73.1 72.5 71.5 71.9 72.6 74.2 57 Total liabilities 2,381.9 2,546.4 2,571.2 2,597.1 2,613.5 2,627.2 2,646.7 2,676.5 2,676.1 2,682.3 2,665.2 2,682.6 58 Residual (assets less liabilities)7 138.2 167.8 174.9 169.2 142.9 148.5 150.8 149.3 146.4 146.2 150.7 154.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • July 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 2002 2002 2003 2003 Apr. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Apr. 9 Apr. 16 Apr. 23 Apr. 30 Seasonally adjusted Assets 1 Bank credit 601.1 614.6 620.2 636.2r 627.6 640.5 658.6' 651.0 669.2 643.1 642.9 646.0 2 Securities in bank credit 228.9 244.9 248.0 261.8 262.9' 272.9 277.1 270.3 274.2 269.9 266.5 268.8 3 U.S. government securities 72.1 89.0 93.5 102.0r 102.7 107.6 111.5 113.2 114.9 112.7 112.3 112.1 4 Other securities 156.7 155.9 154.5 159.9 160.2' 165.3 165.6' 157.1 159.4 157.2 154.2 156.7 5 Loans and leases in bank credit2 .... 372.2 369.7 372.2 374.3 364.8 367.6 381.5' 380.7 394.9 373.2 376.4 377.2 6 Commercial and industrial 197.1 181.1 178.9 178.4 176.4 172.3 169.0 169.0 169.1 169.6 169.3 168.5 V Real estate 18.3 19.6 20.0 19.5 18.9 18.1 17.8 16.8 16.9 16.7 16.8 16.9 8 Security3 85.5 97.5 104.7 110.1 105.1 112.9 130.1' 130.4 144.3 123.0 125.9 127.1 y Other loans and leases 71.3 71.5 68.6 66.4 64.3' 64.4 64.6' 64.4 64.7 63.9 64.4 64.7 10 Interbank loans 22.1 24.5 25.5 30.0 28.8 28.8 30.5 27.7 28.9 24.8 27.7 29.6 11 Cash assets4 47.3 45.5 42.3 44.6 40.0 38.3 42.5 44.5 41.4 46.7 43.3 46.9 12 Other assets5 24.0 33.8 34.6 35.9 40.0' 41.7 38.1 41.8 41.4 40.7 42.1 43.7 13 Total assets6 694.2 718.0 722.2 746.3 736.0r 749.0 769.2 764.6 780.5 754.8 755.7 765.8 Liabilities 14 Deposits 498.3 471.4 452.6 425.5' 426.8 443.4 449.2 436.9 438.7 441.1 436.6 431.3 15 Transaction 10.5 9.6 9.2 9.2 9.5 9.7 10.6 10.2 10.0 10.0 10.1 10.7 16 Nontransaction 487.8 461.8 443.3 416.3' 417.2 433.6 438.6 426.7 428.7 431.1 426.6 420.7 17 Borrowings 188.7 232.7 251.2 278.0' 271.7 276.8 299.4 307.5 311.5 302.2 302.5 315.9 18 From banks in the U.S 22.0 23.0 25.2 30.0' 31.1' 31.4 34.2' 28.2 24.9 25.7 25.0 35.8 19 From others 166.7 209.7 226.0 247.9' 240.6 245.4 265.2' 279.4 286.6 276.4 277.5 280.1 20 Net due to related foreign offices -74.0 -71.6 -73.3 -59.1' -69.9' -78.6 -85.6 -78.7 -73.7 -81.4 -76.1 -84.9 21 Other liabilities 72.2 99.7 99.3 102.1 98.9 101.1 95.3 90.1 89.8 94.0 86.9 90.0 22 Totalliabilities 685.1 732.2 729.7 746.5r 121 A' 742.7 758.4r 755.9 766.2 755.9 749.9 752.3 23 Residual (assets less liabilities)7 9.1 -14.2 -7.5 -.2 8.6 6.3 10.9 8.7 14.3 -1.0 5.8 13.5 Not seasonally adjusted Assets 24 Bank credit 600.8 614.1 623.8 646.2 635.5 645.0 656.4' 650.9 657.2 649.3 648.0 648.3 25 Securities in bank credit 228.9 244.9 248.0 261.8 262.9' 272.9 277.1 270.3 274.2 269.9 266.5 268.8 26 U.S. government securities 72.1 89.0 93.5 102.0' 102.7 107.6 111.5 113.2 114.9 112.7 112.3 112.1 27 Trading account 9.5 18.6 20.3 30.6 32.1 34.9 34.6 36.6 36.9 36.5 36.6 36.1 28 Investment account 62.6 70.4 73.2 71.3 70.6 72.7 76.9 76.6 78.0 76.3 75.7 76.1 29 Other securities 156.7 155.9 154.5 159.9 160.2' 165.3 165.6' 157.1 159.4 157.2 154.2 156.7 30 Trading account 98.4 101.5 100.4 101.3 101.3' 100.3 99.C 95.0 95.7 94.9 93.0 96.1 31 Investment account 58.3 54.4 54.0 58.6 58.9 65.0 66.6 62.1 63.6 62.3 61.2 60.6 32 Loans and leases in bank credit2 .... 372.0 369.2 375.8 384.3 372.6' 372.1 379.3' 380.6 382.9 379.4 381.5 379.5 33 Commercial and industrial 196.0 181.2 180.3 179.8 176.5 173.7 170.5 168.1 168.2 169.1 168.3 166.7 34 Real estate 18.3 19.6 20.0 19.5 18.9 18.1 17.8 16.8 16.9 16.7 16.8 16.9 35 Security3 85.9 97.5 106.8 116.7 112.2 115.8 125.6' 130.8 133.0 129.0 131.3 131.0 36 Other loans and leases 71.8 70.9 68.8 68.3 65.1 64.5 65.4 64.9 64.9 64.6 65.1 64.9 37 Interbank loans 22.1 24.5 25.5 30.0 28.8 28.8 30.5 27.7 28.9 24.8 27.7 29.6 38 Cash assets4 45.3 46.6 44.7 47.8 42.9 39.3 41.3 42.6 39.2 44.7 41.2 45.2 39 Other assets5 23.9 33.3 34.5 37.0 41.3 42.3 39.0' 41.6 41.3 40.5 41.7 43.4 40 Total assets6 691.7 718.1 728.1 760.6r 748.2r 755.1 766.8 762.3 766.2 758.9 758.2 766.1 Liabilities 41 Deposits 505.3 459.1 452.7 436.3' 442.9 453.5 453.3 443.0 441.4 446.2 443.9 440.7 42 Transaction 9.9 9.8 9.5 10.0 9.8 9.7 10.3 9.6 9.4 9.4 9.3 10.3 43 Nontransaction 495.4 449.3 443.1 426.4' 433.1 443.8 443.1 433.4 432.0 436.8 434.5 430.5 44 Borrowings 188.7 232.7 251.2 278.0' 271.7 276.8 299.4 307.5 311.5 302.2 302.5 315.9 45 From banks in the U.S 22.0 23.0 25.2 30^ 31.1' 31.4 34.2' 28.2 24.9 25.7 25.0 35.8 46 From others 166.7 209.7 226.0 247.9' 240.6 245.4 265.2' 279.4 286.6 276.4 277.5 280.1 47 Net due to related foreign offices -74.6 -73.1 -74.7 -57.4 -67.3' -77.5 -83.4' -79.1 -76.0 -83.3 -76.2 -82.9 48 Other liabilities 71.9 98.8 98.4 103.3 100.6 102.0 96.9' 89.8 88.3 92.7 86.9 91.3 49 Totalliabilities 691.3 717.6 727.6 760.2r 747.8 754.9 766.3r 761.2 765.1 757.8 757.1 765.0 50 Residual (assets less liabilities)7 .5 .5 .5 .4 .4 .2 .6 1.1 1.1 1.1 1.1 1.1 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A21 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued F. Memo items Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2002 2002 2003 2003 Apr. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Apr. 9 Apr. 16 Apr. 23 Apr. 30 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 73.3 102.4 105.2 112.5' 107.6' 116.8' 115.1' 105.7 105.9 103.9 102.4 110.2 2 Revaluation losses on off-balancesheet items8 58.1 85.7 89.0 93.8 86.2 94.9 91.3 81.4 81.8 79.4 78.9 85.1 3 Mortgage-backed securities9 302.6 355.4r 370.6r 363.3' seg.O' 375.0' 379.4 399.3 376.3 369.4 420.2 435.8 4 Pass-through 203.6 261.7 274.6 265.7' 271.2 276.5 275.9' 288.2 264.0 259.1 310.8 323.6 5 CMO, REMIC, and other 99.0 93.6 95.9 97.6 97.7 98.4 103.6 111.2 112.3 110.3 109.4 112.2 6 Net unrealized gains (losses) on available-for-sale securities10 1.4 11.9 11.3 10.7 12.1 12.0 12.1 10.7 11.4 10.9 9.8 10.6 7 Off-shore credit to U.S. residents" .... 19.7 18.4 18.5 18.7 18.3 18.2 18.2 17.5 17.3 17.8 17.2 17.5 8 Securitized consumer loans12 135.4 144.3 148.5 150.1 149.7 150.6 152.5 154.2 154.2 154.2 154.1 154.5 9 Credit cards and related plans 121.4 127.5 131.4 133.2 132.2 134.8 136.7 138.7 138.5 138.6 138.5 139.4 10 Other 14.0 16.9 17.0 16.9 17.5 15.8 15.8 15.5 15.7 15.6 15.6 15.1 11 Securitized business loans'2 17.4 17.8 17.4 17.2 16.9 17.2 16.8 16.5 16.4 16.4 16.7 16.6 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities9 280. lr 304.0' 307.6r 311.1 310.8' 316.7' 327.8' 336.7 335.8 332.0 334.9 344.7 13 Securitized consumer loans'2 205.8 198.3 198.7 201.3 205.6 204.5 203.2 205.7 204.9 206.4 206.7 205.2 14 Credit cards and related plans 197.9 189.3 189.8 192.5 197.1 196.0 194.8 197.3 196.5 198.1 198.4 196.9 15 Other 7.9 8.9 8.9 8.7 8.5 8.4 8.5 8.3 8.4 8.3 8.3 8.2 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 46.8 61.9 63.3 64.1 66.8 66.8 64.7' 63.2 62.0 62.4 62.6 65.9 17 Revaluation losses on off-balancesheet items8 39.9 60.2 60.3 60.1' 63.1' 65.0 63.6' 61.8 60.1 61.0 61.4 64.9 18 Securitized business loans12 11.3 7.6 7.2 6.8 5.6 4.7 4.1 3.4 3.4 3.4 3.4 3.2 NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8 acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table ratio procedure is used to adjust past levels. 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer in the United States, all of which are included in "Interbank loans." being published in the Bulletin. Instead, abbreviated balance sheets for both large and small 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry domestically chartered banks have been included in table 1.26, parts C and D. Data are both securities. merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. 4. Includes vault cash, cash items in process of collection, balances due from depository branches and agencies of foreign banks have been replaced by balance sheet estimates of all institutions, and balances due from Federal Reserve Banks. foreign-related institutions and are included in table 1.26, part E. These data are break- 5. Excludes the due-from position with related foreign offices, which is included in "Net adjusted. due to related foreign offices." The not-seasonally-adjusted data for all tables now contain additional balance sheet items, 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for which were available as of October 2, 1996. transfer risk. Loans are reported gross of these items. 1. Covers the following types of institutions in the fifty states and the District of Columbia: 7. This balancing item is not intended as a measure of equity capital for use in capital domestically chartered commercial banks that submit a weekly report of condition (large adequacy analysis. On a seasonally adjusted basis, this item reflects any differences in the domestic); other domestically chartered commercial banks (small domestic); branches and seasonal patterns estimated for total assets and total liabilities. agencies of foreign banks, and Edge Act and agreement corporations (foreign-related institu- 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity tions). Excludes International Banking Facilities. Data are Wednesday values or pro rata and equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. averages of Wednesday values. Large domestic banks constitute a universe; data for small 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. domestic banks and foreign-related institutions are estimates based on weekly samples and on government-sponsored enterprises, and private entities. quarter-end condition reports. Data are adjusted for breaks caused by reclassifications of 10. Difference between fair value and historical cost for securities classified as availableassets and liabilities. for-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are The data for large and small domestic banks presented on pp. A17-19 are adjusted to restated to include an estimate of these tax effects. remove the estimated effects of mergers between these two groups. The adjustment for 11. Mainly commercial and industrial loans but also includes an unknown amount of credit mergers changes past levels to make them comparable with current levels. Estimated extended to other than nonfinancial businesses. quantities of balance sheet items acquired in mergers are removed from past data for the bank 12. Total amount outstanding. group that contained the acquired bank and put into past data for the group containing the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • July 2003 1.32 COMMERCIAL PAPER OUTSTANDING Millions of dollars, seasonally adjusted, end of period Year ending December 2002 2003 IItteemm 1998 1999 2000 2001 2002 Oct. Nov. Dec. Jan. Feb. Mar. 1 All issuers 1,163,303 1,403,023 1,615,341 1,438,764 1,321,517 1,350,182 1,351,428 1,321,517 1,345,460 1,318,803 1,313,556 Financial companies' 2 Dealer-placed paper, total2 614,142 786,643 973,060 989,364 949,683 973,150 982,239 949,683 955,386 924,890 919,059 3 Directly placed paper, total3 322,030 337,240 298,848 224,553 217,787 219,581 211,574 217,787 236,820 239,037 244,504 4 Nonfinancial companies4 227,132 279,140 343,433 224,847 154,047 157,451 157,615 154,047 153,254 154,876 149,993 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Date of change Rate Period Average Average Average rate rate rate 2000—Jan. 1 8.50 2000 9.23 2001—Jan. 9.05 2002—Jan. 4.75 Feb. 3 8.75 2001 6.91 Feb. 8.50 Feb. 4.75 Mar. 22 9.00 2002 4.67 Mar. 8.32 Mar. 4.75 May 17 9.50 Apr. 7.80 Apr. 4.75 2000—Jan 8.50 May 7.24 May 4.75 2001—Jan. 4 9.00 Feb 8.73 June 6.98 June 4.75 Feb. 1 8.50 Mar. 8.83 July 6.75 July 4.75 Mar. 21 8.00 Apr. 9.00 Aug. 6.67 Aug. 4.75 Apr. 19 7.50 May 9.24 Sept. 6.28 Sept. 4.75 May 16 7.00 June 9.50 Oct. 5.53 Oct. 4.75 June 28 6.75 July 9.50 Nov. 5.10 Nov. 4.35 Aug. 22 6.50 Aug 9.50 Dec. 4.84 Dec. 4.25 Sept. 18 6.00 Sept 9.50 Oct. 3 5.50 Oct 9.50 2003—Jan. 4.25 Nov. 7 5.00 Nov 9.50 Feb. 4.25 Dec. 12 4.75 Dec 9.50 Mar. 4.25 Apr. 4.25 2002—Nov. 7 4.25 May 4.25 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 2003 2003, week ending IItteemm 22000000 22000011 22000022 Jan. Feb. Mar. Apr. Mar. 28 Apr. 4 Apr. 11 Apr. 18 Apr. 25 MONEY MARKET INSTRUMENTS 1 Federal funds12'3 6.24 3.88 1.67 1.24 1.26 1.25 1.26 1.22 1.28 1.23 1.27 1.26 2 Discount window primary credit2 4 n.a. n.a. n.a. n.a. 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 Commercial paper3-5-6 Nonfinancial 3 1-month 6.27 3.78 1.67 1.25 1.24 1.21 1.22 1.23 1.21 1.22 1.21 1.23 4 2-month 6.29 3.68 1.67 1.26 1.25 1.20 1.21 1.22 1.20 1.19 1.23 1.22 5 3-month 6.31 3.65 1.69 1.26 1.26 1.19 1.20 1.20 1.18 1.18 1.23 1.22 Financial 6 1 -month 6.28 3.80 1.68 1.26 1.25 1.23 1.24 1.24 1.23 1.23 1.24 1.24 7 2-month 6.30 3.71 1.69 1.27 1.25 1.22 1.23 1.23 1.22 1.22 1.24 1.24 8 3-month 6.33 3.65 1.70 1.27 1.25 1.21 1.23 1.23 1.20 1.22 1.24 1.24 Certificates of deposit, secondary market3-7 9 1-month 6.35 3.84 1.72 1.29 1.27 1.25 1.26 1.26 1.26 1.26 1.27 1.27 10 3-month 6.46 3.71 1.73 1.29 1.27 1.23 1.24 1.25 1.22 1.23 1.26 1.26 11 6-month 6.59 3.66 1.81 1.30 1.27 1.20 1.23 1.22 1.18 1.20 1.26 1.26 12 Eurodollar deposits, 3-month3 8 6.45 3.70 1.73 1.29 1.26 1.21 1.23 1.23 1.21 1.22 1.25 1.25 US. Treasury bills Secondary market3 5 13 4-week n.a. 2.43 1.60 1.15 1.18 1.16 1.14 1.16 1.15 1.16 1.14 1.12 14 3-month 5.82 3.40 1.61 1.17 1.17 1.13 1.13 1.15 1.10 1.13 1.16 1.14 15 6-month 5.90 3.34 1.68 1.20 1.18 1.13 1.14 1.15 1.09 1.13 1.18 1.17 U.S. TREASURY NOTES AND BONDS Constant maturities9 16 1-year 6.11 3.49 2.00 1.36 1.30 1.24 1.27 1.27 1.19 1.25 1.33 1.31 17 2-year 6.26 3.83 2.64 1.74 1.63 1.57 1.62 1.65 1.54 1.61 1.70 1.66 18 3-year 6.22 4.09 3.10 2.18 2.05 1.98 2.06 2.08 1.97 2.05 2.14 2.10 19 5-year 6.16 4.56 3.82 3.05 2.90 2.78 2.93 2.93 2.84 2.92 2.98 2.97 20 7-year 6.20 4.88 4.30 3.60 3.45 3.34 3.47 3.51 3.42 3.48 3.51 3.50 71 10-year 6.03 5.02 4.61 4.05 3.90 3.81 3.96 3.96 3.90 3.97 3.99 3.97 22 20-year 6.23 5.63 5.43 5.02 4.87 4.82 4.91 4.96 4.91 4.95 4.94 4.89 Treasury long-term average10-" 23 25 years and above n.a. n.a. 5.41 5.07 4.93 4.90 4.99 5.04 4.99 5.04 5.02 4.97 STATE AND LOCAL NOTES AND BONDS Moody's series12 24 Aaa 5.58 5.01 4.87 4.72 4.57 4.51 4.60 4.69 4.65 4.62 4.59 4.54 75 Baa 6.19 5.75 5.64 5.61 5.48 5.32 5.34 5.40 5.41 5.39 5.30 5.24 26 Bond Buyer series13 5.71 5.15 5.04 4.90 4.81 4.76 4.74 4.84 4.79 4.76 4.74 4.66 CORPORATE BONDS 27 Seasoned issues, all industries14 7.98 7.49 7.10 6.72 6.50 6.42 6.32 6.46 6.37 6.38 6.36 6.26 Rating group 78 Aaa15 7.62 7.08 6.49 6.17 5.95 5.89 5.74 5.94 5.81 5.81 5.80 5.68 79 Aa 7.83 7.26 6.93 6.59 6.34 6.28 6.22 6.33 6.26 6.27 6.27 6.17 30 A 8.11 7.67 7.18 6.77 6.63 6.54 6.45 6.58 6.50 6.51 6.48 6.40 31 Baa 8.37 7.95 7.80 7.35 7.06 6.95 6.85 6.97 6.91 6.93 6.89 6.79 MEMO Dividend-price ratio16 32 Common stocks 1.15 1.32 1.61 1.81 1.91 1.92 1.81 1.87 1.83 1.86 1.82 1.80 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly 8. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for statistical release. For ordering address, see inside front cover. indication puiposes only. 1. The daily effective federal funds rate is a weighted average of rates on trades through 9. Yields on actively traded issues adjusted to constant maturities. New York brokers. 10. Based on the unweighted average of the bid yields for all Treasury fixed-coupon 2. Weekly figures are averages of seven calendar days, ending on Wednesday of the securities with remaining terms to maturity of 25 years and over. current week; monthly figures include each calendar day in the month. 11. A factor for adjusting the daily long-term average in order to estimate a 30-year rate 3. Annualized using a 360-day year or bank interest. can be found at http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ 4. The rate charged for discounts made and advances extended under the Federal Re- ltcompositeindex.html. serve's primary credit discount window program, which became effective January 9, 2003. 12. General obligation bonds based on Thursday figures; Moody's Investors Service. This rate replaces that for adjustment credit, which was discontinued after January 8, 2003. 13. State and local government general obligation bonds maturing in twenty years are used For further information, see http://www.federalreserve.gov/boarddocs/press/bcreg/2002/ in compiling this index. The twenty-bond index has a rating roughly equivalent to Moody's 200210312/default.htm. The rate reported is that for the Federal Reserve Bank of New York. A1 rating. Based on Thursday figures. Historical series for the rate on adjustment credit is available at: http:// 14. Daily figures are averages of Aaa, Aa, A, and Baa yields from Moody's Investors www.federalreserve.gov/releases/hl5/data.htm. Service. Based on yields to maturity on selected long-term bonds. 5. Quoted on a discount basis. 15. Effective December 7, 2001, the Moody's Aaa yield includes yields only for industrial 6. Interest rates interpolated from data on certain commercial paper trades settled by the firms. Prior to December 7, 2001, the Aaa yield represented both utilities and industrial. Depository Trust Company. The trades represent sales of commercial paper by dealers or 16. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in direct issuers to investors (that is, the offer side). See the Board's Commercial Paper web the price index. pages (http://www.federalreserve.gov/releases/cp) for more information. SOURCE: U.S. Department of the Treasury. 7. An average of dealer offering rates on nationally traded certificates of deposit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • July 2003 1.36 STOCK MARKET Selected Statistics 2002 2003 IInnddiiccaattoorr 22000000 22000011 22000022 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Prices and trading volume (averages of daily figures) CCCCCCCooooooommmmmmmmmmmmmmooooooonnnnnnn ssssssstttttttoooooooccccccckkkkkkk ppppppprrrrrrriiiiiiiccccccceeeeeeesssssss (((((((iiiiiiinnnnnnndddddddeeeeeeexxxxxxxeeeeeeesssssss))))))) 1111111 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((DDDDDDDeeeeeeeccccccc....... 33333331111111,,,,,,, 1111111999999966666665555555 ======= 55555550000000))))))) 6,806.46 6,407.95 5,571.46 5,200.62 4,980.65 4,862.70 5,104.89 5,075.76 5,055.78 4,738.56 4,724.22 4,977.45 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 809.40 749.46 656.44 611.34 589.14 574.45 597.75 593.15 587.78 553.90 558.10 583.74 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 414.73 444.45 430.63 409.96 388.19 383.41 405.03 401.39 394.60 367.55 366.90 395.85 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 478.99 377.72 260.50 225.52 210.76 207.83 229.41 236.71 236.42 214.64 211.45 221.06 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 552.48 596.61 554.88 533.60 506.05 494.06 523.50 519.72 522.51 485.72 486.71 522.05 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111-------44444443333333 ======= 11111110000000)))))))1111111 1,427.22 1,194.18 993.94 912.55 867.81 854.63 909.93 899.18 895.84 837.62 846.62 890.03 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,, 1111111999999977777773333333 -------55555550000000)))))))2222222 922.22 879.08 860.11 843.89 852.03 807.38 820.62 823.77 824.64 818.84 822.34 837.92 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 1,026,867 1,216,529 1,411,689 1,317,105 1,370,143 1,619,896 1,427,254 1,210,332 1,441,846 1,302,011 1,403,742 1,381,580 9999999 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 51,437 68,074 n.a. n.a. n.a. 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 198,790 150,450 134,380 132,800 130,210 130,570 133,060 134,380 134,910 134,030 135,910 140,450 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss4444444 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss5555555 100,680 101,640 95,690 95,400 98,630 96,620 91,240 95,690 96,430 95,400 90,830 88,770 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 84,400 78,040 73,340 63,700 67,550 66,780 67,380 73,340 66,200 67,260 68,860 70,080 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 2001 2002 2003 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 5,800.6 5,753.9 5,834.5 5,970.3 6,032.4 6,153.3 6,255.4 6,433.0 6,487.7 2 Public debt securities 5,773.7 5,726.8 5,807.5 5,943.4 6,006.0 6,126.5 6,228.2 6,405.7 6,460.8 3 Held by public 3,434.4 3,274.2 3,338.7 3,393.8 3,443.7 3,463.5 3,552.6 3,647.4 3,710.8 4 Held by agencies 2,339.4 2,452.6 2,468.8 2,549.7 2,562.4 2,662.9 2,675.6 2,758.3 2,750.0 5 Agency securities 26.8 27.1 27.0 26.8 26.4 26.8 27.2 27.3 26.9 6 Held by public 26.8 27.1 27.0 26.8 26.4 26.8 27.2 27.3 26.9 7 Held by agencies .1 .0 .0 .0 .0 .0 .0 .0 .0 8 Debt subject to statutory limit 5,692.5 5,645.0 5,732.6 5,871.4 5,935.1 6,058.3 6,161.4 6,359.4 6,400.0 9 Public debt securities 5,692.3 5,644.8 5,732.4 5,871.2 5,935.0 6,058.1 6,161.1 6,359.1 6,399.8 10 Other debt1 .2 .2 .2 .3 .2 .2 .3 .3 .2 MEMO 11 Statutory debt limit 5,950.0 5,950.0 5,950.0 5,950.0 5,950.0 6,400.0 6,400.0 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 2002 2003 TTyyppee aanndd hhoollddeerr 11999999 22000000 22000011 22000022 Q2 Q3 Q4 QL 1 Total gross public debt 5,776.1 5,662.2 5,943.4 6,405.7 6,126.5 6,228.2 6,405.7 6,460.8 By type 2 Interest-bearing 5,766.1 5,618.1 5,930.8 6,391.4 6,087.0 6,216.3 6,391.4 6,474.0 3 Marketable 3,281.0 2,966.9 2,982.9 3,205.1 3,024.8 3,136.6 3,205.1 3,331.8 4 Bills 737.1 646.9 811.3 888.8 822.5 868.3 888.8 955.0 5 Notes 1,784.5 1,557.3 1,413.9 1,580.8 1,446.9 1,521.5 1,580.8 1,622.9 6 Bonds 643.7 626.5 602.7 588.7 592.9 592.9 588.7 585.7 7 Inflation-indexed notes and bonds' 100.7 121.2 140.1 146.9 147.5 138.9 146.9 153.2 8 Nonmarketable2 2,485.1 2,651.2 2,947.9 3,186.3 3,062.2 3,079.6 3,186.3 3,142.2 9 State and local government series 165.7 151.0 146.3 153.4 142.8 144.3 153.4 148.8 10 Foreign issues3 31.3 27.2 15.4 11.2 13.3 12.5 11.2 12.2 11 Government 31.3 27.2 15.4 11.2 13.3 12.5 11.2 12.2 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 179.4 176.9 181.5 184.8 184.8 185.6 184.8 187.3 14 Government account series4 2,078.7 2,266.1 2,574.8 2,806.9 2,691.4 2,707.3 2,806.9 2,763.8 15 Non-interest-bearing 10.0 44.2 12.7 14.3 39.5 12.0 14.3 13.8 By holder5 16 U.S. Treasury and other federal agencies and trust funds 2,064.2 2,270.1 2,572.2 2,757.8 2,686.0 2,701.3 2,757.8 n.a. 17 Federal Reserve Banks6 478.0 511.7 551.7 629.4 590.7 604.2 629.4 641.5 18 Private investors 3,233.9 2,880.4 2,819.5 3,018.5 2,849.8 2,924.8 3,018.5 n.a. 19 Depository institutions 248.7 201.5 181.5 223.2 204.4 210.4 223.2 n.a. 20 Mutual funds 228.6 220.8 257.5 278.1 250.0 253.6 278.1 n.a. 21 Insurance companies 123.4 110.2 105.7 117.4 110.3 116.0 117.4 n.a. 22 State and local treasuries7 266.8 236.2 256.5 274.2 271.7 269.4 274.2 n.a. Individuals 23 Savings bonds 186.4 184.8 190.3 194.9 192.7 193.3 194.9 n.a. 24 Pension funds 321.0 304.1 281.6 284.2 286.0 284.9 284.2 n.a. 25 Private 109.8 108.4 104.2 111.4 108.8 110.9 111.4 n.a. 26 State and Local 211.2 195.7 177.4 172.8 177.2 174.1 172.8 n.a. 27 Foreign and international8 1,268.7 1,034.2 1,053.1 1,174.2 1,068.1 1,128.6 1,174.2 n.a. 28 Other miscellaneous investors7-9 590.3 588.7 493.3 n.a. 466.5 471.1 n.a. n.a. 1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 8. Includes nonmarketable foreign series Treasury securities and Treasury deposit funds. 1997. Excludes Treasury securities held under repurchase agreements in custody accounts at the 2. Includes (not shown separately) securities issued to the Rural Electrification Administra- Federal Reserve Bank of New York. tion, depository bonds, retirement plan bonds, and individual retirement bonds. 9. Includes individuals, government-sponsored enterprises, brokers and dealers, bank 3. Nonmarketable series denominated in dollars, and series denominated in foreign cur- personal trusts and estates, corporate and noncorporate businesses, and other investors. rency held by foreigners. SOURCES. Data by type of security, U.S. Treasury Department, Monthly Statement of the 4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. Public Debt of the United States; data by holder, Federal Reserve Board of Governors, Flow 5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin, holdings; data for other groups are Treasury estimates. unless otherwise noted. 6. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin table 1.18. 7. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable federal securities was removed from "Other miscellaneous investors" and added to "State and local treasuries." The data shown here have been revised accordingly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • July 2003 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 2003 2003, week ending Jan. Feb. Mar. Mar. 5 Mar. 12 Mar. 19 Mar. 26 Apr. 2 Apr. 9 Apr. 16 Apr. 23 Apr. 30 By type of security 1 U.S. Treasury bills 39,484 42,383 48,449 53,289 49,336 45,219 46,463 50,824 47,273 48,767 44,202 41,294 Treasury coupon securities by maturity 2 Three years or less 122,814 116,714 126,659 133,520 118,555 131,671 125,796 126,390 100,933 111,472 114,244 143,154 3 More than three but less than or equal to six years 119,127 111,100 117,650 113,057 113,654 140,634 106,269 109,566 111100,,887755 91,447 76,090 110088,,770099 4 More than six but less than or equal to eleven years 75,346 85,141 93,192 88,275 86,129 110,120 93,821 80,619 78,135 73,636 52,114 77,064 5 More than eleven 16,002 20,817 21,768 24,985 24,991 23,348 17,570 17,546 18,625 17,791 20,615 23,356 6 Inflation-indexed2 3,969 2,995 2,987 2,294 2,563 3,823 3,176 2,681 2,663 2,579 2,578 4,610 Federal agency and governmentsponsored enterprises 7 Discount notes 56,755 56,333 52,936 62,131 48,025 52,359 51,092 55,959 48,924 49,128 54,850 54,874 Coupon securities by maturity 8 Three years or less 12,752 11,391 14,229 12,920 14,808 18,005 12,158 11,733 9,836 15,487 7,469 10,293 9 More than three years but less than or equal to six years 10,444 10,878 11,502 16,878 12,099 10,144 10,521 9,029 7,359 11,394 6,077 13,738 10 More than six years but less than or equal to eleven years .... 6,839 5,875 7,006 7,257 6,421 6,523 8,810 5,528 4,184 6,264 4,935 5,089 11 More than eleven years 988 1,071 1,584 1,209 1,682 2,080 1,562 1,008 695 556 574 606 12 Mortgage-backed 201,113 204,993 241,417' 255,368 331,055 244,537 178,466 177,785 262,926 226,348 178,265 208,109 Corporate securities 13 One year or less 109,068 111,264 124,603 111,252 114,411 134,411 131,158 127,672 116,708 131,411 134,729 119,717 14 More than one year 22,404 22,114 23,239' 25,006 22,763 22,755 24,629 20,756 19,998 19,597 18,935 23,442 By type of counterparty With interdealer broker 15 U.S. Treasury 170,999 176,738 191,462 189,860 180,503 216,547 186,003 178,616 165,695 161,332 141,913 180,206 16 Federal agency and governmentsponsored enterprises 10,127 8,572 10,578 11,012 11,927 10,722 9,462 9,517 7,440 8,255 6,256 9,417 17 Mortgage-backed 54,576 61,573 68,952' 76,573 95,373 66,280 50,576 52,375 65,872 61,531 44,644 51,151 18 Corporate 616 518 488' 571 491 508 438 450 593 528 639 513 With other 19 U.S. Treasury 205,741 202,410 219,244 225,560 214,724 238,269 207,092 209,009 192,809 184,361 167,930 217,980 20 Federal agency and governmentsponsored enterprises 77,652 76,975 76,678 89,383 71,108 78,389 74,680 73,738 63,558 74,573 67,650 75,183 21 Mortgage-backed 146,537 143,420 172,465 178,795 235,682 178,257 127,890 125,410 197,055 164,817 133,620 156,958 22 Corporate 130,855 132,860 147,355 135,686 136,683 156,659 155,349 147,978 136,114 150,481 153,025 142,646 NOTE. Major changes in the report form filed by primary dealers induced a break in the backed, and corporate securities scheduled for immediate and forward delivery, as well as all dealer data series as of the week ending July 4, 2001. Current weekly data may be found at the U.S. government securities traded on a when-issued basis between the announcement and Federal Reserve Bank of New York web site (http:www.newyorkfed.org/pihome/statistics) issue date. Data do not include transactions under repurchase and reverse repurchase (resale) under the Primary Dealer heading. agreements. Averages are based on the number of trading days in the week. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A27 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2003 2003, week ending IItteemm,, bbyy ttyyppee ooff sseeccuurriittyy Jan. Feb. Mar. Mar. 5 Mar. 12 Mar. 19 Mar. 26 Apr. 2 Apr. 9 Apr. 16 Apr. 23 Net outright positions2 1 U.S. Treasury bills 23,749 33,405 36,519 37,774 32,292 33,102 36,509 45,980 41,995 15,473 14,430 Treasury coupon securities by maturity 2 Three years or less -19,950 -13,349 -11,710 -6,990 -8,469 -10,028 -18,744 -13,477 -13,489 -17,619 -18,824 3 More than three years but less than or equal to six years -33,546 -30,605 -39,305 -31,268 -39,565 -39,506 -42,363 -42,417 -44,737 -45,186 -45,140 4 More than six but less than or equal to eleven years -18,697 -13,246 -12,408 -9,498 -10,332 -13,214 -16,685 -11,108 -9,103 -11,431 -12,093 5 More than eleven 4,522 4,742 5,513 5,590 5,516 5,149 5,397 6,102 6,179 6,447 3,992 6 Inflation-indexed 1,268 2,051 2,502 2,061 2,129 4,311 1,942 1,718 1,747 1,491 1,756 Federal agency and governmentsponsored enterprises 7 Discount notes 55,562 56,067 54,393 50,166 58,724 55,307 51,243 55,688 5588,,884477 53,653 57,218 Coupon securities, by maturity 8 Three years or less 15,969 18,206 19,765 21,747 22,456 17,704 18,845 18,191 17,044 21,148 20,129 9 More than three years but less than or equal to six years 4,501 7,076 4,786 6,077 5,260 3,534 5,131 4,104 2,301 4,592 3,305 10 More than six but less than or equal to eleven years 1,521 1,050 2,292 772 2,603 1,929 3,303 2,467 2,467 3,472 3,090 11 More than eleven 2,200 2,261 2,357 2,047 2,155 2,312 2,663 2,584 2,351 2,318 2,335 12 Mortgage-backed 23,387 27,290 44,922 27,936 42,411 56,549 46,925 46,340 41,394 46,185 37,859 Corporate securities 13 One year or less 25,810 26,844 26,170 23,636 29,370 29,121 23,401 23,967 24,926 35,531 30,292 14 More than one year 53,119 49,821 48,917 48,034 49,194 47,979 50,691 48,240 46,324 48,471 44,341 Financing3 Securities in, U.S. Treasury 15 Overnight and continuing 629,534 649,602 655,300 669,879 654,221 652,287 634,566 675,478 651,078 647,614 673,494 16 Term 716,731 711,711 784,955 696,777 764,308 820,208 878,563 721,631 761,654 790,110 801,467 Federal agency and governmentsponsored enterprises 17 Overnight and continuing 153,105 156,551 153,551 165,262 160,000 153,089 139,627 152,954 157,895 155,053 150,786 18 Term 228,176 225,453 239,424 227,073 241,547 243,799 246,295 233,058 228,195 226,628 231,370 Mortgage-backed securities 19 Overnight and continuing 37,003 41,472 39,251 38,898 40,349 42,962 35,184 38,566 38,380 41,891 44,676 20 Term 250,974 245,796 249,003 248,663 254,179 247,333 253,597 238,006 245,287 241,007 249,090 Corporate securities 21 Overnight and continuing 58,162 61,244r 65,856 64,370' 65,181 65,742 67,646 65,940 67,249 66,857 67,275 22 Term 24,045 24,535 25,792 24,050 25,734 26,348 26,236 26,213 25,268 25,200 25,834 MEMO Reverse repurchase agreements 23 Overnight and continuing 425,659 462,703 469,568 498,615 471,861 474,899 439,948 471,313 451,009 446,480 472,923 24 Term 1,058,223 1,044,314 1,127,240 1,037,862 1,116,675 1,159,906 1,228,131 1,044,426 1,094,613 1,120,931 1,138,122 Securities out, U.S. Treasury 25 Overnight and continuing 586,166 613,714r 638,051 648,639' 645,782 638,833 616,075 646,310 621,782 609,219 619,018 26 Term 656,962 651,391 717,308 637,794 699,428 749,705 805,275 653,341 704,869 738,073 746,060 Federal agency and governmentsponsored enterprises 27 Overnight and continuing 293,172 302,428r 286,453 299,353' 299,186 286,454 272,543 275,200 298,578 281,035 274,600 28 Term 153,444 156,795 176,180 161,331 178,431 178,090 183,033 175,608 169,972 178,341 182,232 Mortgage-backed securities 29 Overnight and continuing 334,095 336,090 328,058 318,414 304,619 352,761 340,355 318,715 312,190 344,936 365,482 30 Term 153,932 149,392 153,495 147,537 154,136 152,773 158,642 152,363 152,014 153,907 160,428 Corporate securities 31 Overnight and continuing 135,890 138,598' 141,619 133,683' 143,439 145,565 140,549 142,979 139,104 146,876 142,668 32 Term 19,581 22,083 22,184 22,575 22,434 22,146 21,712 22,155 22,502 22,622 22,529 MEMO Repurchase agreements 33 Overnight and continuing 1,159,110 1,190,429 1,195,376 1,190,472 1,193,494 1,229,711 1,176,252 1,181,620 1,182,304 1,186,084 1,211,085 34 Term 951,521 944,456 1,022,027 935,330 1,013,969 1,050,480 1,113,854 951,615 998,909 1,044,691 1,051,033 NOTE. Major changes in the report form filed by primary dealers included a break in many 2. Net outright positions include all U.S. government, federal agency, governmentseries as of the week ending July 4, 2001. Current weekly data may be found at the Federal sponsored enterprise, mortgage-backed, and corporate securities scheduled for immediate and Reserve Bank of New York web site (http://www.newyorkfed.org/pihome/statistics) under the forward delivery, as well as U.S. government securities traded on a when-issued basis Primary Dealer heading. between the announcement and issue date. 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). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • July 2003 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2002 2003 AAggeennccyy 11999999 22000000 22000011 22000022 Oct. Nov. Dec. Jan. Feb. 1 Federal and federally sponsored agencies 1,616,492 1,851,632 2,121,057 2,351,039 2,289,622 2,305,945 2,351,039 n.a. n.a. 2 Federal agencies 26,376 25,666 276 2 318 342 2 26,929 26,408 3 Defense Department1 6 6 6 6 6 6 6 6 6 4 Export-Import Bank2-3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Federal Housing Administration4 126 255 26,828 26,828 26,725 26,863 26,828 354 152 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7 Postal Service6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 Tennessee Valley Authority 26,370 25,660 270 270 312 336 270 26,923 26,402 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 1,590,116 1,825,966 2,120,781 2,351,037 2,289,304 2,305,607 2,351,037 n.a. n.a. 11 Federal Home Loan Banks 529,005 594,404 623,740 674,841 679,209 674,847 674,841 672,304 684,495 12 Federal Home Loan Mortgage Corporation 360,711 426,899 565,071 648,894 625,328 643,201 648,894 n.a. n.a. 13 Federal National Mortgage Association 547,619 642,700 763,500 851,000 804,800 811,700 851,000 860,300 871,000 14 Farm Credit Banks8 68,883 74,181 76,673 85,088 83,145 83,884 85,088 85,206 86,045 15 Student Loan Marketing Association9 41,988 45,375 48,350 47,900 54,200 48,700 47,900 50,700 50,900 16 Financing Corporation1" 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation" 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 42,152 40,575 39,096 37,017 37,084 37,418 37,017 35,992 35,794 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 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. 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23 Tennessee Valley Authority n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Other lending14 25 Farmers Home Administration 6,665 5,275 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 26 Rural Electrification Administration 14,085 13,126 13,876 14,489 14,058 14,209 14,489 14,714 14,750 27 Other 21,402 22,174 25,220 22,528 23,026 23,209 22,528 21,278 21,044 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 State and Local Governments Millions of dollars 2002 2003 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 22000000 22000011 22000022 Sept. Oct. Nov. Dec. Jan. Feb.r Mar.r Apr. 1 All issues, new and refunding1 180,403 292,002r 364,194r 27,425r 44,574 37,150 27,612r 26,722r 30,056 28,290 34,074 By type of issue 2 General obligation 64,475 118,554 145,323 9,628 18,595 11,023 8,431 8,112 12,730 10,047 14,593 3 Revenue 115,928 170,047 214,788 17,751 24,074 24,942 18,961 17,049 17,326 18,243 19,481 By type of issuer 4 State 19,944 30,099 33,931 2,442 4,199 2,109 1,670 1,927 3,654 1,277 5,487 5 Special district or statutory authority2 121,185 197,462 259,070 19,171 31,793 28,296 20,151 17,979 20,761 19,982 23,400 6 Municipality, county, or township 39,273 61,040 67,121 5,767 6,678 5,570 5,570 5,290 5,640 7,031 5,188 7 Issues for new capital 154,257 200,384r 243,576r 15,140r 30,230 26,512r 19,953r 18,560r 20,275 16,585 24,172 By use of proceeds 8 Education 38,665 50,054 57,894 3,529 5,209 3,743 5,292 4,823 7,085 5,480 7,478 9 Transportation 19,730 21,411 22,093 1,398 1,476 1,250 1,060 1,417 1,619 1,232 3,476 10 Utilities and conservation 11,917 21,917 33,404 2,038 6,922 8,379 2,031 2,196 176 588 546 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 7,122 6,607 7,227 574 1,225 821 796 422 1,081 1,692 1,808 13 Other purposes 47,309 55,733 73,033 5,597 6,996 7,189 4,992 7,400 7,178 3,777 8,310 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 2003 TTyyppee ooff oo rr iiss ss iiss uu ss ee uu ,, ee oo rr ffffeerriinngg,, 22000000 22000011 22000022 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 All issues' 942,198r l,382,003r 1,262,606' 88,222 118,947 82,726r 105,754 107,916 109,628 113,772 136,530 2 Bonds2 807,281r l,253,449r l,152,171r 84,216 111,652 74,893r 95,821 101,038 102,501 106,633 130,637 By type of offering 3 Sold in the United States 684,484' l,197,060r 1,065,925' 80,772 107,219 70,696' 90,207 95,187 96,275 97,383 125,025 4 Sold abroad 122,798 56,389 86,246 3,444 4,432 4,197 5,614 5,851 6,226 9,250 5,613 MEMO 5 Private placements, domestic 18,370 16,385 16,224 0 65 0 3,525 5,060 4,700' 0 0 By industry group 6 Nonfinancial 242,207r 445,930' 267,183' 14,407 17,121 14,560 20,500 19,614 27,119 26,222 25,865 7 Financial 565,074' 807,519' 884,988' 69,809 94,531 60,333' 75,321 81,424 75,382 80,411 104,773 8 Stocks3 311,941 230,632 170,673 4,006 7,295 7,833 9,933 6,878 7,127 7,139 5,893 By type of offering 9 Public 134,917 128,554 110,435 4,006 7,295 7,833 9,933 6,878 7,127 7,139 5,893 10 Private placement4 177,024 102,078 60,238 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 11 Nonfinancial 118,369 77,577 62,115 539 2,754 3,731 4,533 4,154 3,793 2,679 1,053 12 Financial 16,548 50,977 48,320 3,467 4,541 4,102 5,400 2,724 3,334 4,460 4,840 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, Yankee bonds, and private placements listed. Stock data SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve include ownership securities issued by limited partnerships. System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • July 2003 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2002 2003 IItteemm 22000011 22000022 Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr. 1 Sales of own shares2 1,806,474 1,826,045 125,408 164,959 137,914 134,383 152,647 122,321 140,643 141,367 2 Redemptions of own shares 1,677,266 1,702,671 126,760 167,039 122,125 135,213 138,951 113,643 129,337 111,998 3 Net sales3 129,208 123,374 -1,352 -2,080 15,789 -830 13,696 8,678 11,306 29,369 4 Assets4 4,689,624 4,119,322 3,899,858 4,059,765 4,249,351 4,119,322 4,060,568 4,031,818 4,059,934 4,326,681 5 Cash5 219,620 208,479 199,778 204,019 219,213 208,479 212,792 199,546 214,146 229,172 6 Other 4,470,004 3,910,843 3,700,080 3,855,746 4,030,138 3,910,843 3,847,776 3,832,272 3,845,788 4,097,509 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 Liabilities1 Billions of dollars, end of period; not seasonally adjusted 2001 2002 2003 AAccccoouunntt 22000000 22000011 22000022 Q3 Q4 Q1 Q2 Q3 Q4 QI ASSETS 1 Accounts receivable, gross2 958.7 948.3 945.4 967.8 948.3 930.0 941.9 945.6 945.4 934.8 2 Consumer 328.0 340.1 315.6 329.3 340.1 329.8 332.0 334.5 315.6 307.0 3 Business 458.4 447.0 455.3 451.1 447.0 443.0 449.4 445.5 455.3 453.9 4 Real estate 172.3 161.3 174.5 187.4 161.3 157.2 160.5 165.5 174.5 174.0 5 LESS: Reserves for unearned income 69.7 60.6 57.0 60.8 60.6 59.5 58.5 58.0 57.0 54.2 6 Reserves for losses 16.7 21.0 23.8 18.0 21.0 21.5 21.6 22.0 23.8 24.0 7 Accounts receivable, net 872.3 866.7 864.5 889.0 866.7 849.0 861.9 865.6 864.5 856.7 8 All other 461.5 523.4 584.7 478.7 523.4 515.2 530.6 558.0 584.7 610.9 9 Total assets 1,333.7 130.1 1,449.3 1,367.7 1,390.1 1,364.2 1,392.5 1,423.6 1,449.3 1,467.6 LIABILITIES AND CAPITAL 10 Bank loans 35.9 50.8 48.0 44.5 50.8 49.4 56.9 74.9 48.0 47.3 11 Commercial paper 238.8 158.6 141.5 171.0 158.6 137.0 130.8 143.1 141.5 127.3 Debt 12 Owed to parent 102.5 99.2 88.2 91.7 99.2 82.6 83.3 82.9 88.2 87.7 13 Not elsewhere classified 502.2 567.4 624.9 555.8 567.4 574.4 597.2 584.9 624.9 639.1 14 All other liabilities 301.8 325.5 339.0 327.6 325.5 329.1 331.5 343.4 339.0 344.4 15 Capital, surplus, and undivided profits 152.5 188.6 207.6 177.2 188.6 191.7 192.9 194.5 207.6 221.8 16 Total liabilities and capital 1,333.7 130.1 1,449.3 1,367.7 1,390.1 1,364.2 1,392.5 1,423.6 1,449.3 1,467.6 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses. Excludes pools of securitized assets, and banks. Data are amounts carried on the balance sheets of finance companies; securitized pools are not shown, as they are not on the books. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A31 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 2002 2003 TTyyppee ooff ccrreeddiitt Oct.' Nov.' Dec.' Jan.' Feb.' Mar. Seasonally adjusted 1 Total l,185.6r 1,246.6 1,270.2 1,266.3 1,270.2 1,270.2 1,274.1 1,267.3 1,274.4 ? Consumer 464.4 513.3 513.1 517.5 513.7 513.1 517.3 510.6 513.6 3 Real estate 198.9 207.7 216.5 211.7 214.2 216.5 215.4 215.6 215.4 4 Business 522.3 525.6 540.6 537.0 542.3 540.6 541.5 541.2 545.4 Not seasonally adjusted 5 Total l,192.2r 1,253.7 1,277.6 1,263.4 1,267.9 1,277.6 1,276.7 1,267.6 1,277.7 6 Consumer 468.3r 518.1 518.4 518.8 517.6 518.4 518.5 510.8 510.2 7 Motor vehicle loans 141.6' 173.9 160.2 169.9 159.8 160.2 160.2 162.3 156.0 8 Motor vehicle leases 108.2' 103.5 83.3 86.7 85.2 83.3 81.9 80.3 81.8 9 Revolving2 37.6' 31.5 38.9 37.4 37.0 38.9 38.7 37.3 36.4 10 Other3 40.7' 31.1 33.1 31.3 31.4 33.1 33.1 32.6 32.9 Securitized assets4 11 Motor vehicle loans 97.1 131.9 151.9 144.1 153.9 151.9 154.3 148.7 152.3 12 Motor vehicle leases 6.6 6.8 5.7 5.9 5.8 5.7 5.7 5.6 6.2 13 Revolving 19.6 25.0 31.1 29.2 30.2 31.1 30.4 30.1 30.7 14 Other 17.1 14.3 14.0 14.4 14.2 14.0 14.2 13.8 13.9 15 Real estate 198.9 207.7 216.5 211.7 214.2 216.5 215.4 215.6 215.4 16 One- to four-family 130.6' 120.1 135.0 130.5 132.8 135.0 134.1 134.3 133.9 17 Other 41.7 41.2 39.5 39.0 39.3 39.5 39.6 39.9 40.1 Securitized real estate assets4 18 One- to four-family 24.7 40.7 39.7 40.1 39.9 39.7 39.4 39.1 39.2 19 Other 1.9 5.7 2.2 2.2 2.2 2.2 2.2 2.2 2.2 20 Business 525.0 527.9 542.7 532.9 536.1 542.7 542.8 541.3 552.1 21 Motor vehicles 75.5' 54.0 60.7 57.3 58.2 60.7 58.6 60.3 65.3 22 Retail loans 18.3' 16.1 15.4 18.0 15.7 15.4 15.1 14.8 16.3 23 Wholesale loans5 39.7' 20.3 29.3 23.5 26.7 29.3 27.5 30.5 34.0 24 Leases 17.6' 17.6 16.0 15.9 15.8 16.0 15.9 15.0 15.0 25 Equipment 283.5 289.4 292.1 288.4 288.4 292.1 292.0 288.9 287.5 26 Loans 70.2' 77.8 83.3 81.9 82.2 83.3 80.1 80.3 78.0 27 Leases 213.3' 211.6 208.8 206.5 206.2 208.8 211.8 208.6 209.5 28 Other business receivables6 99.4' 103.5 102.5 97.0 95.7 102.5 104.7 104.4 101.1 Securitized assets4 29 Motor vehicles 37.8 50.1 50.2 47.0 50.4 50.2 50.3 50.9 53.1 30 Retail loans 3.2 5.1 2.4 1.9 2.5 2.4 2.4 2.3 2.2 31 Wholesale loans 32.5 42.5 45.9 42.8 45.6 45.9 46.1 46.8 48.6 .32 Leases 2.2 2.5 1.9 2.3 2.3 1.9 1.8 1.8 2.2 33 Equipment 23.1 23.2 20.2 23.9 24.3 20.2 20.1 19.4 21.9 34 Loans 15.5 16.4 13.0 17.2 17.6 13.0 12.9 12.3 12.2 35 Leases 7.6 6.8 7.2 6.7 6.7 7.2 7.2 7.1 9.7 36 Other business receivables6 5.6 7.7 17.1 19.2 19.2 17.1 17.1 17.3 23.3 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

A32 Domestic Nonfinancial Statistics • July 2003 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2002 2003 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 234.5 245.0 261.1 258.7 256.7 266.9 278.9 235.1 252.9 266.0 2 Amount of loan (thousands of dollars) 177.0 184.2 197.0 195.0 193.3 205.1 214.0 179.3 184.2 205.0 3 Loan-to-price ratio (percent) 77.4 77.3 77.8 77.7 77.4 79.0 79.3 78.0 76.2 78.8 4 Maturity (years) 29.2 28.8 28.9 28.8 28.4 28.7 28.9 28.3 28.2 29.0 5 Fees and charges (percent of loan amount)2 .70 .67 .62 .63 .61 .64 .79 .37 .40 .62 Yield (percent per year) 6 Contract rate1 7.41 6.90 6.35 6.00 5.99 5.95 6.00 5.76 5.69 5.83 7 Effective rate1-3 7.52 7.00 6.44 6.09 6.08 6.04 6.12 5.82 5.75 5.92 8 Contract rate (HUD series)4 n.a. 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 GNMA securities6 7.57 6.36 5.81 5.31 5.29 5.17 5.18 5.03 4.94 4.97 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 610,122 707,015 790,800 751,347 760,759 790,800 810,609 816,747 815,964 817,894 12 FHAA'A insured 61,539 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Conventional 548,583 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Mortgage transactions purchased (during period) 154,231 270,384 370,641 32,853 47,807 67,891 57,281 40,420 34,304 43,028 Mortgage commitments (during period) 15 Issued7 163,689 304,084 400,327 68,463 53,286 30,769 27,814 52,479 42,005 n.a. 16 To sell8 11,786 7,586 12,268 1,121 520 1,555 2,717 1,241 2,457 n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 17 Total 385,693 491,719 568,173 536,389 549,380 568,173 568,494 561,534 569,522 568,975 18 FHAA'A insured 3,332 3,506 4,573 4,724 4,019 4,573 4,256 3,796 3,540 n.a. 19 Conventional 382,361 488,213 563,600 531,665 545,361 563,600 564,238 557,738 565,982 n.a. Mortgage transactions (during period) 20 Purchases 174,043 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Sales 166,901 389,611 547,046 60,516 62,354 73,184 48,169 41,831 59,065 51,737 22 Mortgage commitments contracted (during period)9 169,231 417,434 620,981' 73,639 74,340 91,223 55,057 48,446 69,200 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 11999999 22000000 22000011 Q4 Qi Q2 Q3 Q4P 1 All holders 6,320,135 6,894,097 7,597,732 7,597,732 7,763,084 7,978,272 8,209,225 8,476,304 By type of property 2 One- to four-family residences 4,790,601 5,208,604 5,738,228 5,738,228 5,876,695 6,048,445 6,245,941 6,459,659 3 Multifamily residences 369,003 405,430 453,100 453,100 461,198 472,262 479,919 496,733 4 Nonfarm, nonresidential 1,057,568 1,171,205 1,290,069 1,290,069 1,307,076 1,337,136 1,359,812 1,394,692 5 Farm 102,964 108,858 116,336 116,336 118,116 120,428 123,553 125,220 By type of holder 6 Major financial institutions 2,394,271 2,618,969 2,791,076 2,791,076 2,789,654 2,860,853 2,981,236 3,087,646 7 Commercial banks2 1,495,420 1,660,054 1,789,819 1,789,819 1,800,362 1,873,203 1,961,908 2,059,079 8 One- to four-family 879,576 965,635 1,023,851 1,023,851 1,018,478 1,070,522 1,143,938 1,222,461 9 Multifamily 67,665 77,803 84,851 84,851 86,719 90,743 90,929 94,169 10 Nonfarm, nonresidential 516,333 582,577 645,619 645,619 659,187 674,972 689,288 704,454 11 Farm 31,846 34,039 35,498 35,498 35,978 36,966 37,753 37,995 12 Savings institutions3 668,064 722,974 758,236 758,236 745,998 742,732 773,689 781,255 13 One- to four-family 548,222 594,221 620,579 620,579 605,171 599,402 625,424 631,399 14 Multifamily 59,309 61,258 64,592 64,592 65,199 66,009 68,668 67,840 15 Nonfarm, nonresidential 60,063 66,965 72,534 72,534 75,077 76,768 79,036 81,435 16 Farm 470 529 531 531 551 552 560 581 17 Life insurance companies 230,787 235,941 243,021 243,021 243,293 244,918 245,639 247,312 18 One- to four-family 5,934 4,903 4,931 4,931 4,938 5,162 5,176 5,210 19 Multifamily 32,818 33,681 35,631 35,631 35,671 35,818 35,921 36,161 20 Nonfarm, nonresidential 179,048 183,757 188,376 188,376 188,599 189,850 190,398 191,666 21 Farm 12,987 13,600 14,083 14,083 14,085 14,088 14,144 14,275 22 Federal and related agencies 320,054 344,225 376,999 376,999 385,027 396,091 412,014 437,100 23 Government National Mortgage Association 7 6 8 8 8 8 8 5 24 One- to four-family 7 6 8 8 8 8 8 5 25 Multifamily 0 0 0 0 0 0 0 0 2ft Farmers Home Administration4 73,871 73,323 72,452 72,452 72,362 71,970 72,030 72,377 27 One- to four-family 16,506 16,372 15,824 15,824 15,665 15,273 15,139 14,908 28 Multifamily 11,741 11,733 11,712 11,712 11,707 11,692 11,686 11,669 29 Nonfarm, nonresidential 41,355 41,070 40,965 40,965 41,134 41,188 41,439 42,101 30 Farm 4,268 4,148 3,952 3,952 3,855 3,817 3,766 3,700 31 Federal Housing Admin, and Dept. of Veterans Affairs 3,712 3,507 3,290 3,290 3,361 3,473 2,973 3,854 32 One- to four-family 1,851 1,308 1,260 1,260 1,255 1,254 1,252 1,262 33 Multifamily 1,861 2,199 2,031 2,031 2,105 2,218 1,721 2,592 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 152 45 13 13 7 22 13 46 40 One- to four-family 25 7 2 2 1 4 2 7 41 Multifamily 29 9 3 3 1 4 2 9 42 Nonfarm, nonresidential 98 29 8 8 4 14 8 30 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 149,422 155,626 169,908 169,908 176,051 180,491 184,191 190,501 45 One- to four-family 141,195 144,150 155,060 155,060 160,300 164,038 167,006 171,490 46 Multifamily 8,227 11,476 14,848 14,848 15,751 16,453 17,185 19,011 47 Federal Land Banks 34,187 36,326 40,885 40,885 41,981 42,951 44,782 45,863 48 One- to four-family 2,012 2,137 2,406 2,406 2,470 2,527 2,635 2,699 49 Farm 32,175 34,189 38,479 38,479 39,511 40,424 42,147 43,164 50 Federal Home Loan Mortgage Corporation 56,676 59,240 62,792 62,792 59,624 58,872 60,934 63,887 51 One- to four-family 44,321 42,871 40,309 40,309 35,955 34,062 34,616 35,851 52 Multifamily 12,355 16,369 22,483 22,483 23,669 24,810 26,318 28,036 53 Mortgage pools or trusts5 2,947,690 3,231,401 3,714,706 3,714,706 3,869,374 3,986,827 4,065,965 4,182,833 54 Government National Mortgage Association 582,263 611,553 591,368 591,368 587,204 583,745 567,428 537,927 55 One- to four-family 565,189 592,624 569,460 569,460 564,108 559,549 542,250 512,137 56 Multifamily 17,074 18,929 21,908 21,908 23,096 24,196 25,178 25,790 57 Federal Home Loan Mortgage Corporation 749,081 822,310 948,409 948,409 1,012,478 1,053,261 1,058,176 1,082,062 58 One- to four-family 744,619 816,602 940,933 940,933 1,005,136 1,045,981 1,050,899 1,072,990 59 Multifamily 4,462 5,708 7,476 7,476 7,342 7,280 7,277 9,072 60 Federal National Mortgage Association 960,883 1,057,750 1,290,351 1,290,351 1,355,404 1,404,594 1,458,945 1,538,287 61 One- to four-family 924,941 1,016,398 1,238,125 1,238,125 1,301,374 1,349,442 1,402,929 1,478,610 62 Multifamily 35,942 41,352 52,226 52,226 54,030 55,152 56,016 59,677 63 Farmers Home Administration4 0 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 0 0 0 0 0 0 0 0 68 Private mortgage conduits 655,463 739,788 884,578 884,578 914,288 945,227 981,416 1,024,557 69 One- to four-family6 455,021 499,834 591,200 591,200 616,300 638,300 669,300 694,800 70 Multifamily 42,045 48,894 56,591 56,591 57,339 58,783 59,446 62,987 71 Nonfarm, nonresidential 158,398 191,060 236,787 236,787 240,649 248,144 252,669 266,770 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 658,120 699,503 714,950 714,950 719,029 734,502 750,010 768,724 74 One- to four-family 459,385 495,605 506,786 506,786 514,043 524,741 538,393 555,356 75 Multifamily 75,244 75,799 78,593 78,593 78,426 78,979 79,462 79,627 76 Nonfarm, nonresidential 102,274 105,747 105,780 105,780 102,425 106,201 106,973 108,237 77 Farm 21,217 22,352 23,792 23,792 24,135 24,581 25,183 25,504 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 • July 2003 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2002 2003 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 22000000 22000011 22000022 Oct. Nov. Dec. Jan.r Feb.r Mar. Seasonally adjusted 1 Total 1,559,532 1,666,816 l,726,414r l,727,990r l,725,120r l,726,414r 1,740,249 1,741,517 1,742336 2 Revolving . .. 667,395 701,285 712,418 717,279 716,376 712,418 715,529 719,066 721,731 3 Nonrevolving' 892,137 965,531 1,013,996' 1,010,711' 1,008,744' 1,013,996' 1,024,721 1,022,451 1,020,605 Not seasonally adjusted 4 Total 1,593,116 1,701,856 1,762,276' l,727,417r l,735,692r 1,762,276' 1,755,235 1,740,514 1,732,078 By major holder 5 Commercial banks 541,470 558,421 587,355 577,428 580,385 587,355 582,202 581,574 575,290 6 Finance companies 219,848 236,559 232,269 238,571 228,241 232,269 232,099 232,291 225,135 7 Credit unions 184,434 189,570 195,744 197,072 196,807 195,744 195,164 194,438 194,166 8 Savings institutions 64,557 69,070 68,591 66,272 67,413 68,591 67,635 66,678 65,722 9 Nonfinancial business 82,662 67,955 56,912 49,075 49,812 56,912 52,870 49,609 48,537 10 Pools of securitized assets3 500,145 580,281 621,405' 599,001' 613,035' 621,405' 625,266 615,923 623,229 By major type of credit4 11 Revolving 693,020 727,297 738,425 710,701 717,668 738,425 726,985 719,286 714,591 12 Commercial banks 218,063 224,878 231,449 224,897 226,237 231,449 221,339 219,969 213,909 13 Finance companies 37,627 31,538 38,948 37,351 37,015 38,948 38,733 37,348 36,350 14 Credit unions 22,226 22,265 22,228 21,119 21,260 22,228 21,645 21,161 20,829 15 Savings institutions 16,560 17,767 16,193 15,242 15,710 16,193 15,811 15,429 15,047 16 Nonfinancial business 42,430 29,790 19,221 14,100 14,315 19,221 16,547 14,203 13,666 17 Pools of securitized assets3 356,114 401,059 410,386' 397,992 403,132 410,386' 412,911 411,177 414,790 18 Nonrevolving 900,096' 974,559 1,023,851' 1,016,717' 1,018,024' 1,023,851' 1,028,250 1,021,227 1,017,487 19 Commercial banks 323,407 333,543 355,906 352,531 354,148 355,906 360,863 361,605 361,380 20 Finance companies 182,221 205,021 193,321 201,219 191,226 193,321 193,366 194,944 188,785 21 Credit unions 162,208 167,305 173,516 175,953 175,547 173,516 173,519 173,277 173,337 22 Savings institutions 47,997 51,303 52,398 51,031 51,703 52,398 51,824 51,249 50,675 23 Nonfinancial business 40,232 38,165 37,691 34,975 35,497 37,691 36,323 35,406 34,871 24 Pools of securitized assets3 144,031 179,222 211,019' 201,009' 209,903' 211,019' 212,355 204,746 208,439 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 2003 IItteemm 22000000 22000011 22000022 Sept. Oct. Nov. Dec. Jan. Feb. Mar. INTEREST RATES Commercial banks2 1 48-month new car 9.34 8.50 6.71 n.a. n.a. 5.67 n.a. n.a. 7.11 n.a. 2 24-month personal 13.90 13.22 11.59 n.a. n.a. 10.78 n.a. n.a. 11.62 n.a. Credit card plan 3 All accounts 15.71 14.89 13.42 n.a. n.a. 13.13 n.a. n.a. 13.20 n.a. 4 Accounts assessed interest 14.91 14.44 13.09 n.a. n.a. 12.78 n.a. n.a. 12.85 n.a. Auto finance companies 5 New car 6.61 5.65 4.29 2.29 2.62 3.41 3.50 3.13 33..9999 33..8833 6 Used car 13.55 12.18 10.74 10.44 10.59 10.70 10.48 10.37 10.43 10.16 OTHER TERMS3 Maturity (months) 7 New car 54.9 55.1 56.8 58.4 57.4 57.2 57.5 58.5 59.2 59.5 8 Used car 57.0 57.5 57.5 57.5 57.4 56.9 56.7 57.5 57.7 57.8 Loan-to-value ratio 9 New car 92 91 94 97 96 95 96 96 97 96 10 Used car 99 100 100 100 101 100 100 100 99 99 Amount financed (dollars) 11 New car 20,923 22,822 24,747 26,331 26,099 26,104 26,647 26,443 24,864 25,152 12 Used car 14,058 14,416 14,532 14,801 14,702 14,610 14,639 14,499 14,231 14,253 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 5 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 2003 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999977 Q3 Q4 QI Q2 Q3' Q4' QI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 789.9 l,044.6r l,031.4r 848.4r 1,134.6' l,298.4r 1,187.6' 973.1r l,643.2r 1,312.5 1,612.8 1,338.8 By sector and instrument 2 Federal government 23.1 -52.6 -71.2 -295.9 -5.6 209.3 43.4 39.8 526.0 265.7 198.5 79.9 3 Treasury securities 23.2 -54.6 -71.0 -294.9 -5.0 209.7 44.2 41.6 524.2 264.2 198.1 81.5 4 Budget agency securities and mortgages -.1 2.0 -.2 -1.0 -.5 -.4 -.7 -1.8 1.8 1.6 .4 -1.6 5 Nonfederal 766.8 l,097.2r 1,102.6' 1,144.3' 1,140.2' 1,089.0' 1,144.1' 933.3' 1,117.2' 1,046.8 1,414.3 1.258.9 By instrument 6 Commercial paper 13.7 24.4 37.4 48.1 -88.3 -66.1 45.5 -144.4 -81.7 -17.4 -13.2 -15.2 7 Municipal securities and loans 56.9 84.2 54.4 23.6 122.8' 83.1' 174.6' 76.6' 196.2' 156.8 238.2 162.2 8 Corporate bonds 150.5 235.2 217.8 161.3 340.5 191.4 325.0 253.6' 191.4 -29.0 114.4 178.6 9 Bank loans n.e.c 106.4 109.8' 82.9' 101.8' -82.0' -23.5' -165.5' -16.4' -192.1' -124.5 3.3 -54.9 10 Other loans and advances 59.5 82.1 46.0 95.0 29.3 59.4 -107.3 -19.2 77.2 77.6 6.4 -6.6 11 Mortgages 322.3 486.6' 564.6' 567.5' 709.2' 774.0' 737.3' 700.0' 834.9' 914.3 1,068.1 919.1 17 Home 258.3 384.6' 424.4' 418.2' 532.7' 561.5' 533.1' 602.4' 658.6' 780.4 846.2 783.4 13 Multifamily residential 7.3 23.2' 35.7 33.9' 47.9 56.4' 56.4' 29.1' 44.2' 29.0 70.1 37.2 14 Commercial 53.5 72.2 98.8 108.9' 121.1' 149.1' 141.C 61.6' 123.01 91.8 142.9 95.3 11 Farm 3.1 6.5 5.8 6.5 7.5 7.0 6.8 6.9 9.1 13.2 8.8 3.1 16 Consumer credit 57.5 75.0 99.5 147.0' 108.7' 70.6' 134.5' 83.01 91.3' 69.1 -2.9 75.7 By borrowing sector 17 Household 332.7 452.6' 497.9' 553.9' 613.7' 663.7' 608.9' 706.9' 695.9' 768.5 900.8 884499..22 18 Nonfinancial business 392.5 576.9' 566.2' 574.9' 420.8' 355.6' 393.1' 157.8' 237.8' 134.4 303.7 263.4 19 Corporate 291.6 409.2' 378.4' 380.0' 256.5' 197.3' 243.7' 42.2' 96.6' -8.7 139.8 148.7 20 Nonfarm noncorporate 94.7 159.7 182.4 184.1 156.8 153.8 141.1 110.3 132.7 128.8 156.3 113.3 71 Farm 6.2 8.0 5.5 10.9 7.5 4.4 8.3 5.3 8.5 14.3 7.6 1.3 22 State and local government 41.5 67.7 38.5 15.5 105.7' 69.7' 142.1' 68.7' 183.5' 143.9 209.8 146.3 23 Foreign net borrowing in United States 71.8 43.2 25.2 65.7 -37.4 -106.7 16.0 78.8' 13.4' -31.9 12.6 21.3 24 Commercial paper 3.7 7.8 16.3 31.7 -14.2 -25.2 5.9 66.8 36.5 3.9 37.3 52.6 7*! Bonds 61.4 34.9 14.1 23.9 -12.1 -83.9 29.7 -2.3 -41.0 -23.1 -16.9 -25.6 26 Bank loans n.e.c 8.5 6.6 .5 11.4 -7.3 4.2 -16.3 13.9 22.0 -11.7 -2.9 -4.0 27 Other loans and advances -1.8 -6.0 -5.7 -1.3 -3.7 -1.8 -3.3 .3' -4.1' -1.0 -4.9 -1.8 28 Total domestic plus foreign 861.7 l,087.8r l,056.6r 914.1r l,097.2r 1,191.7' 1,203.5' 1,051.9r 1,656.5' 1,280.7 1,625.4 1,360.1 Financial sectors 29 Total net borrowing by financial sectors 662.2 1,085.6' l,073.1r 808.9r 958.3r l,112.7r 975.9r 869.1r 875.5r 856.7 1,093.8 1,002.7 By instrument 30 Federal government-related 212.9 470.9 592.0 433.5 629.3 818.4 591.8 691.1 487.8 420.8 616.3 452.4 31 Government-sponsored enterprise securities 98.4 278.3 318.2 234.1 290.8 326.2 306.5 191.3 141.7 249.1 321.5 179.7 32 Mortgage pool securities 114.6 192.6 273.8 199.4 338.5 492.2 285.3 499.8 346.1 171.6 294.9 272.7 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 449.3 614.7' 481.2' 375.4' 329.(H 294.3' 384.1' 387.7' 435.9 477.4 550.2 35 Open market paper 166.7 161.0 176.2 127.7 -61.9 -72.2 -13.6 -178.3 -109.1 84.3 -77.3 -53.5 36 Corporate bonds 218.9 310.2 207.1 199.3 341.5' 308.9' 372.7 354.2' 442.0' 192.6 675.6 589.2 37 Bank loans n.e.c 13.3 28.5' -14.4' -.4' 13.1' .7' 17.7' -.6' 31.2' 81.9 -107.9 -42.7 38 Other loans and advances 35.6 90.2 107.1 42.5 34.9 58.8 8.9 -3.9 16.7 71.9 -17.5 60.7 39 Mortgages 14.9 24.8 5.1 6.2 1.3 -1.9 -1.6 6.6 7.0 5.3 4.7 -3.5 By borrowing sector 40 Commercial banking 46.1 72.9 67.2 60.0 52.9 39.7 44.1 24.3 13.3 62.2 100.2 7766..11 41 Savings institutions 19.7 52.2 48.0 27.3 7.4 39.4 -68.6 -33.1 -12.1 37.1 ^16.7 3.4 42 Credit unions .1 .6 2.2 .0 1.5 1.5 4.4 2.4 2.0 3.1 .4 2.8 43 Life insurance companies .2 .7 .7 -.7 .6 3.5 1.4 2.4 1.2 2.0 2.5 4.4 44 Government-sponsored enterprises 98.4 278.3 318.2 234.1 290.8 326.2 306.5 191.3 141.7 249.1 321.5 179.7 45 Federally related mortgage pools 114.6 192.6 273.8 199.4 338.5 492.2 285.3 499.8 346.1 171.6 294.9 272.7 46 Issuers of asset-backed securities (ABSs) 202.2 321.4 212.3 189.7 SIS.O1 314.0' 430.1' 263.7' 241.7' 198.5 393.5 326.9 47 Finance companies 57.8 57.1 70.3 81.2 -.2 41.8 -25.3 -31.2 80.2 106.4 -4.9 32.5 48 Mortgage companies -4.6 .0' .0' .0' .0' .0' .0' .0' .C .0 .0 .0 49 Real estate investment trusts (REITs) 39.6 62.7 6.3 2.7 2.5 -2.4 7.8 7.4 25.3 27.7 18.6 17.5 50 Brokers and dealers 8.1 7.2 -17.2 15.6 1.4 12.6 -18.9 -15.7 17.5 15.2 -24.0 38.4 51 Funding corporations 79.9 40.0 91.5 -.4 -55.2 -155.7 9.1 -42.2 18.5' -16.4 37.8 48.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 Domestic Nonfinancial Statistics • July 2003 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS '—Continued Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 2003 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999977 11999988 11999999 22000000 22000011'' Q3' Q4 Ql' Q2' Q3' Q4' Ql 52 Total net borrowing, all sectors 1,523.9 2,173.4R 2,129.7R L,722.9R 2,055.5 2,304.5 2,179.4R 1,921.0 2,532.0 2,137.3 2,719.1 2,362.7 53 Open market paper 184.1 193.1 229.9 207.6 -164.4 -163.5 37.8 -255.9 -154.3 70.8 -53.3 -16.1 54 U.S. government securities .... 236.0 418.3 520.7 137.6 623.8 1,027.8 635.2 730.9 1,013.8 686.5 814.8 532.3 55 Municipal securities 56.9 84.2 54.4 23.6 122.8 83.1 174.6' 76.6 196.2 156.8 238.2 162.2 56 Corporate and foreign bonds . . . 430.8 580.2 439.1 384.4 669.9 416.4 727.4 605.5 592.4 140.5 773.0 742.2 57 Bank loans n.e.c 128.2 145.0 69.0 112.8 -76.2 -18.5 -164.0 -3.0 -139.0 -54.4 -107.5 -101.6 58 Other loans and advances 93.2 166.3 147.4 136.2 60.4 116.5 -101.8 -22.7 89.7 148.5 -16.0 52.4 59 Mortgages 337.2 511.4' 569.7' 573.7' 710.5 772.1 735.7' 706.5 841.9 919.5 1,072.8 915.6 60 Consumer credit 57.5 75.0 99.5 147.0' 108.7 70.6 134.5' 83.0 91.3 69.1 -2.9 75.7 Funds raised through mutual funds and corporate equities 61 Total net issues 218.7 166.0R 191.5R 235.3R 302.7 146.0 397.2R 439.3 279.3 -82.5 294.1 250.5 62 Corporate equities -46.5' -113.5' .2' .3' 101.3 -14.4 141.3' 52.4 179.3 -119.6 87.2 47.5 63 Nonfinancial corporations -77.4 -215.5 -110.4 -118.2 -47.4 -108.6 -4.2 -9.8 16.1 -140.3 -27.9 -62.0 64 Foreign shares purchased by U.S. residents 57.6 101.3 114.3 103.6 106.8 43.5 74.7 -5.9 79.7 -51.1 51.7 79.9 65 Financial corporations -26.7' .8' -3.7' 14.9' 41.9 50.7 70.9' 68.1 83.6 71.8 63.4 29.6 66 Mutual fund shares 265.1 279.5 191.2 235.0 201.4 160.4 255.9 386.9 100.0 37.1 206.9 203.0 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables F.2 through F4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A37 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 2001 2002 2003 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999977 11999988 11999999 22000000 22000011 Q3 Q4 Ql Q2 Q3' Q4' Ql NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,523.9 2,173.4R 2,129.7R L,722.9R 2,055.5' 2,304.5' 2,179.4' 1,921.0' 2,532.0' 2,137.3 2,719.1 2,362.7 ? Domestic nonfederal nonfinancial sectors 15.3' 259.1 227.0' -102.3' -26.8' 67.8' 79.1' 146.8' 310.7' -197.5 198.9 -79.5 Household 25.3 127.3 217.1' -134.2' -54.6' 12.3' 47.2' 104.4' 282.9' -241.0 217.6 -81.2 4 Nonfinancial corporate business -12.7 -16.0 -15.6 31.4' -12.4' -5.7' -12.5' 40.2' -IS.O1 27.9 -61.5 49.1 5 Nonfarm noncorporate business 2.6 13.3 -2.9 1.3 2.0 3.3 2.0 3.3 3.3 -2.2 -1.0 -5.2 6 State and local governments .1 134.5 28.4 -.8 38.1 57.9 42.4 -1.1 42.5 17.8 43.8 -42.1 7 Federal government 5.1 13.5 5.8 7.3 6.0 3.3 7.0 6.2' 7.1' 7.6 14.2 -.6 8 Rest of the world 259.6 172.5 139.7 225.9 320.6 269.2 432.5 171.8 542.6 463.5 394.8 462.7 9 Financial sectors 1,243.9 1,728.4' 1,757.2 1,592.0' 1,755.7' 1,964.2' 1,660.8' 1,596.2' 1,671.6' 1,863.7 2,111.2 1,980.2 10 Monetary authority 38.3 21.1 25.7 33.7 39.9 8.4 85.1 81.6 43.4 67.3 118.7 32.3 11 Commercial banking 324.3 305.6 312.2 357.9 205.2 267.9 314.6 188.9 384.3 624.0 441.6 349.5 1? U.S.-chartered banks 274.9 312.1 318.6 339.5 191.6 242.5 275.0 168.2 343.8 599.9 463.3 305.6 13 Foreign banking offices in United States 40.2 -11.6 -17.0 23.9 -.6 21.1 -7.8 2.1 33.7 21.8 -32.8 23.3 14 Bank holding companies 5.4 -.9 6.2 -12.2 4.2 -1.4 13.6 12.0 1.9 -1.6 .2 20.8 15 Banks in U.S.-affiliated areas 3.7 6.0 4.4 6.7 10.0 5.7 33.9 6.6 4.9 4.0 10.9 -.2 16 Savings institutions -4.7 36.2 67.7 56.2 42.8 -4.7 73.1 12.3 -23.5 80.3 72.5 193.6 17 Credit unions 16.8 18.9 27.5 28.0 41.5 61.1 60.5 58.3 23.2' 44.8 44.4 43.5 18 Bank personal trusts and estates -25.0 -12.8 27.8 .8 -28.1 -28.0 -28.1 1.0 .9 .8 .8 -19.3 19 Life insurance companies 104.8 76.9 53.5 57.9 130.9 186.9 81.3 260.6 175.1 267.6 143.4 162.2 70 Other insurance companies 25.2 5.8 -3.0 -8.7 9.0 5.1 28.5 36.7 35.4 21.7 49.0 41.7 21 Private pension funds 47.6 -23.4 17.0 33.4 16.3' 29.6' -10.5' 52.9' 29.2' 58.4 9.3 22.0 77 State and local government retirement funds 67.1 72.1 46.9 54.6 -17.7 -74.2 -2.7 70.5 -54.5 -10.4 60.7 2.0 73 Money market mutual funds 87.5 244.0 182.0 143.0 246.0 311.8 49.1 -239.1' -88.8' -74.4 301.2 -187.0 74 Mutual funds 80.9 127.3 48.4 21.0 126.0 102.7 139.3 243.3 41.9 162.7 118.4 233.1 75 Closed-end funds -2.9 5.2 8.5' -6.3 6.9' 19.8' 16.3' 24.4' -2.6' -1.7 17.0 7.7 7,6 Government-sponsored enterprises 106.3 314.0 291.3 256.4 309.0 274.3 335.3 236.7 129.0 204.4 256.6 257.4 77 Federally related mortgage pools 114.6 192.6 273.8 199.4 338.5 492.2 285.3 499.8 346.1 171.6 294.9 272.7 78 Asset-backed securities issuers (ABSs) 163.8 281.7 194.1 159.9 291.9' 288.4' 407.3 239.5' 219.5' 175.9 371.7 303.1 79 Finance companies 23.1 77.3 97.0 108.1' -5.7 —4-3.3 -100.5 -28.2 39.6 80.0 -22.4 -12.4 30 Mortgage companies -9.1 .0' .CK .01 .ff .01 .C .01 .01 .0 .0 .0 31 Real estate investment trusts (REITs) 20.2 -5.1 -2.6 -7.1' 6.7 7.8 14.0 26.3 31.8 27.7 6.7 -8.6 3? Brokers and dealers 14.9 6.8 -34.7 68.9 92.4 184.5 -110.5 -219.5 402.8 -208.6 138.8 12.6 33 Funding corporations 50.4 -15.8 124.0 35.0" -95.8' -126.3' 23.4' 50.1' -61.1' 156.6 -312.0 275.2 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,523.9 2,173.4' 2,129.7R L,722.9R 2,055.5' 2,304.5' 2,179.4' 1,921.0' 2,532.0' 2,137.3 2,719.1 2362.7 Other financial sources 35 Official foreign exchange .7 6.6 -8.7 -.4 4.3 13.7 ..22 --33..00 1122..99 2244..66 44..99 44..99 36 Special drawing rights certificates -.5 .0 -3.0 -4.0 .0 .0 .0 .0 .0 .0 .0 .0 37 Treasury currency .5 .6 1.0 2.4 1.3 2.2 .0 .9 .6 2.4 .0 .6 38 Foreign deposits 107.7 6.5 61.0 135.1 28.0 41.5 17.9 -59.1 53.3 51.8 55.7 79.2 39 Net interbank transactions -19.7 -31.8 15.0 15.1 -28.0' 30.6' 24.5' 3.3' -163.0' 58.9 170.0 187.5 40 Checkable deposits and currency 41.2 47.3 151.2 -71.4 204.3 215.0 278.1 -200.5' 210.2' 208.0 -33.4 272.9 41 Small time and savings deposits 97.1 152.4 45.1 188.8 267.2 230.3 329.7 288.3' 215.6' 323.4 271.9 260.5 47 Large time deposits 122.5 91.8 131.1 116.2 68.6 19.5 77.8 270.0 34.8' 36.8 -125.5 191.4 43 Money market fund shares 155.9 287.2 249.1 233.3 428.6 386.1 379.8 -312.5' 100.3' -192.6 337.6 -441.4 44 Security repurchase agreements 120.9 91.3 169.8 113.2 22.3 212.7 -138.3 119.4 362.4 -91.1 29.2 -41.7 45 Corporate equities -46.5' -113.5' .2' .3' 101.3' -14.4' 141.3' 52.4' 179.3' -119.6 87.2 47.5 46 Mutual fund shares 265.1 279.5 191.2 235.0 201.4 160.4 255.9 386.9 100.0 37.1 206.9 203.0 47 Trade payables 139.8 106.4 268.6 419.4' -137.9' -126.7' 190.9' 45.0' 122.3 135.8 91.9 48 Security credit 111.0 103.2 104.4 146.1 3.1 561.3 -383.7 -190.7 -131.9 -69.6 44.1 181.5 49 Life insurance reserves 59.3 48.0 50.8 50.2 77.2 74.7 119.6 93.9 92.2 119.7 74.3 85.1 50 Pension fund reserves 201.4 217.4 181.8 209.0 210.8' 176.4' 158.0' 137.0 lSLff 282.5 203.2 229.9 51 Taxes payable 22.3 19.6 30.7 32.8 17.4' 104.9 -55.2' 6.(y 42.8' 53.6 15.1 30.8 5? Investment in bank personal trusts -53.0 —46.1 -8.1 56.6 -59.9 -57.3 -57.7 -3.7 -2.4 -2.1 -1.3 -65.6 53 Noncorporate proprietors' equity -40.7 -57.8 -62.4 -11.5 -18.6 -34.3 8.4 1.5 -32.9 -83.9 -46.8 -21.9 54 Miscellaneous 456.7 909.8' 1,043.4' 1,386.3' 613.1' 705.6' 86.5' 76.2' 640.6' 693.4 33.8 556.1 55 Total financial sources 3,265.8' 4,291.7R 4,742. LR 4,975.4' 4,124.9' 4,995.5R 3,295.5' 2,778.2' 4,442.8' 3,592.9 4,182.0 4,215.0 Liabilities not identified as assets (-) 56 Treasury currency -.2 -.1 -.7 -1.2 -.1 .9 ..00 --11..55 --..99 11..11 -1.1 -.1 57 Foreign deposits 106.2 -8.5 42.6 79.3' 8.3' 55.3 -38.5' -68.4' 105.6' 24.1 31.4 117.1 58 Net interbank liabilities -19.9 3.8 .1 20.4 17.2 7.4 22.6 39.8 -9.5 13.2 -15.1 6.2 59 Security repurchase agreements 63.2 57.7 35.7 122.6 -53.9 106.3 -166.2 156.9' 220.6' -280.9 -66.9 -106.8 60 Taxes payable 28.0 19.7 11.7 26.2 22.0' 25.4 34.6' 16.7' -49.9' 21.3 -47.7 —41.9 61 Miscellaneous -285.4 -206.1' -279.6' -391.4' -251.1' 159.3' -341.4' -277.5' 98.7' 93.8 30.4 —476.6 Floats not included in assets (—) 62 Federal government checkable deposits -2.7 2.6 -7.4 9.0 5.7 -20.1 -91.8 15.1 77.1 ^10.3 -51.7 153.1 63 Other checkable deposits -3.9 -3.1 -.8 1.7 4.5 5.0 5.7 6.1 7.1 7.6 8.4 9.0 64 Trade credit -25.5 -43.3 6.8 34.3' -6.5' -23.1' 78.2' -52.7' -57.3' -20.4 -19.1 -37.4 65 Total identified to sectors as assets 3,405.9" 4,469.0' 4,933.7' 5,074.6' 4,378.8' 4,679.2' 3,792.3' 2,943.6' 4,051.5' 3,773.3 4,313.3 4,592.4 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F.l and F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • July 2003 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 2001 2002 2003 Q3 Q4 Qi Q2 Q3' Q4' Ql Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 16,238.9r 17,305.0r 18,164.5r 19,299.7r 18,922.4r 19,299.7r 19,541.3r 19,857.5r 20,190.4 20,685.1 21,009.2 By sector and instrument 2 Federal government 3,752.2 3,681.0 3,385.1 3,379.5 3,320.0 3,379.5 3,430.3 3,451.4 3,540.8 3,637.0 3,700.6 3 Treasury securities 3,723.7 3,652.7 3,357.8 3,352.7 3,293.0 3,352.7 3,404.0 3,424.6 3,513.6 3,609.8 3,673.7 4 Budget agency securities and mortgages 28.5 28.3 27.3 26.8 27.0 26.8 26.3 26.8 27.2 27.3 26.9 5 Nonfederal 12,486.7r 13,624.0' 14,779.4' 15,920.2' 15,602.4' 15,920.2' 16,11 I.CK 16,406.1' 16,649.6 17,048.1 17,308.6 By instrument 6 Commercial paper 193.0 230.3 278.4 190.1 201.3 190.1 167.5 148.4 142.2 126.0 127.1 V Municipal securities and loans 1,402.9 1,457.2 1,480.9 1,603.6' 1,557.5' 1,603.6' 1,627.3' 1,681.9' 1,708.4 1,770.6 1,815.9 8 Corporate bonds 1,846.0 2,063.9 2,225.1 2,565.6 2,484.4 2,565.6 2,629.0 2,676.9 2,669.6 2,698.2 2,742.9 y Bank loans n.e.c l,150.2r 1,233.2' 1,335.0' 1,253.5' 1,287.5' 1,253.5' 1,240.1' 1,195.0' 1,162.2 1,171.1 1,146.5 10 Other loans and advances 907.2 953.5 1,059.6 1,088.8 1,110.1 1,088.8 1,089.6 1,106.0 1,116.9 1,124.3 1,128.0 11 Mortgages 5,640.9' 6,239.9' 6,807.4' 7,516.6' 7,332.4' 7,516.6' 7,680.2' 7,896.7' 8,128.3 8,395.9 8,613.5 12 Home 4,362.9r 4,787.2' 5,205.4' 5,738.1' 5,605.0' 5,738.1' 5,877.2' 6,049.6' 6,247.9 6,460.0 6,643.6 13 Multifamily residential 307.8r 343.8' 377.6' 425.5' 411.4' 425.5' 432.8' 443.9' 451.1 468.7 478.0 14 Commercial 873.6 1,006.5 1,115.5' 1,236.6' 1,201.4' 1,236.6' 1,252.0' 1,282.8' 1,305.7 1,341.4 1,365.3 lb Farm 96.6 102.3 108.9 116.3 114.6 116.3 118.1 120.4 123.6 125.8 126.7 16 Consumer credit 1,346.6 1,446.1 1,593.1 1,701.9 1,629.3 1,701.9 1,677.2 1,701.3 1,722.0 1,762.0 1,734.8 By borrowing sector 17 Households 6,009.6r 6,507.8' 7,072.7' 7,686.4' 7,492.5' 7,686.4' 7,802.0' 7,988.1' 8,185.0 8,454.4 8,603.3 18 Nonfinancial business 5,338.8r 5,939.4' 6,514.3 6,935.8' 6,849.8' 6,935.8' 6,989.1' 7,047.6' 7,070.1 7,144.2 7,214.4 iy Corporate 3,791.2' 4,204.0' 4,583.9 4,841.1' 4,793.1' 4,841.1' 4,867.2' 4,887.7' 4,876.2 4,908.5 4,951.8 20 Nonfarm noncorporate 1,383.7 1,566.1 1,750.2 1,907.0 1,870.8 1,907.0 1,934.7 1,968.0 1,999.0 2,039.0 2,067.5 21 Farm 163.9 169.4 180.2 187.7 185.9 187.7 187.1 191.8 194.9 196.6 195.1 22 State and local government 1,138.3 1,176.9 1,192.3 1,298.0' 1,260.0' 1,298.0' 1,319.9' 1,370.5' 1,394.5 1,449.5 1,490.9 23 Foreign credit market debt held in United States 651.3 676.7 742.3 704.9 701.7 704.9 724.5r 725.5r 720.2 723.1 727.8 24 Commercial paper 72.9 89.2 120.9 106.7 106.3 106.7 123.6 130.2 134.0 142.8 155.7 25 Bonds 462.6 476.7 500.6 488.4 481.0 488.4 487.9 477.6 471.8 467.6 461.2 26 Bank loans n.e.c 58.7 59.2 70.5 63.2 67.3 63.2 66.7 72.2 69.3 68.6 67.6 27 Other loans and advances 57.1 51.6 50.3 46.6 47.0 46.6 46.4' 45.5 45.0 44.2 43.4 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 16,890.2r 17,981.7r 18,906.9r 20,004.6r 19,624.0r 20,004.6r 20,265.8r 20,583.0' 20,910.6 21,408.3 21,737.0 Financial sectors 29 Total credit market debt owed by financial sectors 6,543.6r 7,616.8r 8,437.6r 9,393.2r 9,118.1r 9,393.2r 9,589.5r 9,803.8r 10,007.8 10,317.0 10,543.9 By instrument 30 Federal government-related 3,292.0 3,884.0 4,317.4 4,944.1 4,796.2 4,944.1 5,116.9 5,238.8 5,344.0 5,498.1 5,611.2 31 Government-sponsored enterprise securities .. . 1,273.6 1,591.7 1,825.8 2,114.0 2,037.4 2,114.0 2,161.8 2,197.2 2,259.5 2,339.9 2,384.8 32 Mortgage pool securities 2,018.4 2,292.2 2,491.6 2,830.1 2,758.8 2,830.1 2,955.1 3,041.6 3,084.5 3,158.2 3,226.4 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 3,251.6' 3,732.8' 4,120.1' 4,449.1' 4,321.9' 4,449.1' 4,472.6' 4,564.9' 4,663.8 4,818.9 4,932.7 33 Open market paper 906.7 1,082.9 1,210.7 1,148.8 1,110.2 1,148.8 1,090.9 1,046.9 1,049.5 1,078.7 1,048.4 36 Corporate bonds 1,878.7 2,085.9 2,297.2 2,638.7' 2,562.1' 2,638.7' 2,731.1' 2,849.1' 2,904.0 3,054.8 3,206.8 37 Bank loans n.e.c 105.8' 91.5' 91.1' 104.2' 97.8' 104.2' 102.3' 110.6' 130.3 105.3 92.9 38 Other loans and advances 288.7 395.8 438.3 473.2 467.2 473.2 462.4 470.8 491.2 489.9 495.4 39 Mortgages 71.6 76.7 82.9 84.2 84.6 84.2 85.9 87.6 88.9 90.1 89.2 By borrowing sector 40 Commercial banks 188.6 230.0 266.7 296.0 281.4 296.0 295.8 310.4 318.9 325.8 325.0 41 Bank holding companies 193.5 219.3 242.5 266.1 272.7 266.1 269.0 264.2 271.8 286.4 302.8 42 Savings institutions 212.4 260.4 287.7 295.1 305.6 295.1 280.5 275.3 286.4 281.4 276.0 43 Credit unions 1.1 3.4 3.4 4.9 3.8 4.9 5.5 6.0 6.8 6.9 7.6 44 Life insurance companies 2.5 3.2 2.5 3.1 2.8 3.1 3.7 4.0 4.5 5.1 6.3 45 Government-sponsored enterprises 1,273.6 1,591.7 1,825.8 2,114.0 2,037.4 2,114.0 2,161.8 2,197.2 2,259.5 2,339.9 2,384.8 46 Federally related mortgage pools 2,018.4 2,292.2 2,491.6 2,830.1 2,758.8 2,830.1 2,955.1 3,041.6 3,084.5 3,158.2 3,226.4 47 Issuers of asset-backed securities (ABSs) 1,398.0 1,610.3 1,812.0 2,130.0' 2,019.5' 2,130.0' 2,188.1' 2,250.0' 2,303.0 2,404.3 2,478.1 48 Brokers and dealers 42.5 25.3 40.9 42.3 47.1 42.3 38.4 42.8 46.6 40.6 50.2 49 Finance companies 625.5 695.7 776.9 776.7 771.2 776.7 760.8 784.9 802.9 814.4 813.6 50 Mortgage companies 16.0' 16.0' 16.V 16.0' 16.0' lexy 16.0' 16.01 16.0 16.0 16.0 51 Real estate investment trusts (REITs) 158.8 165.1 167.8 170.2 168.3 170.2 172.1 178.4 185.3 190.0 194.4 52 Funding corporations 412.6 504.0 503.7 448.4 433.6 448.4 442.6 432.8' 421.5 447.9 462.7 All sectors 53 Total credit market debt, domestic and foreign. 23,433.8r 25,598.4r 27,344.4r 29,397,8r 28,742.1r 29,397.8r 29,855.3r 30,386.8r 30,918.4 31,725.2 32,281.0 54 Open market paper 1,172.6 1,402.4 1,610.0 1,445.6 1,417.8 1,445.6 1,382.0 1,325.5 1,325.7 1,347.5 1,331.1 55 U.S. government securities 7,044.2 7,564.9 7,702.5 8,323.6 8,116.2 8,323.6 8,547.2 8,690.2 8,884.8 9,135.1 9,311.8 56 Municipal securities 1,402.9 1,457.2 1,480.9 1,603.6' 1,557.5' 1,603.6' 1,627.3' 1,681.9' 1,708.4 1,770.6 1,815.9 57 Corporate and foreign bonds 4,187.4 4,626.4 5,022.9 5,692.7' 5,527.4' 5,692.7' 5,848.0' 6,003.6' 6,045.5 6,220.6 6,410.9 58 Bank loans n.e.c 1,314.8 1,383.8 1,496.6 1,421.0 1,452.6 1,421.0 1,409.1 1,377.8 1,361.7 1,345.0 1,307.0 59 Other loans and advances 1,253.0 1,400.9 1,548.2 1,608.6 1,624.4 1,608.6 1,598.4' 1,622.3 1,653.1 1,658.4 1,666.8 60 Mortgages 5,712.5' 6,316.6' 6,890.3' 7,600.8' 7,417.0' 7,600.8' 7,766.1' 7,984.3' 8,217.2 8,486.0 8,702.8 61 Consumer credit 1,346.6 1,446.1 1,593.1 1,701.9 1,629.3 1,701.9 1,677.2 1,701.3 1,722.0 1,762.0 1,734.8 1. Data in this table appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A39 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 2001 2002 2003 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999988 11999999 22000000 22000011 Q3 Q4 Ql Q2 Q3' Q4' Ql CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 23,433.8' 25,598.4r 27,344.4' 29,397.8r 28,742.1' 29,397.8' 29,855.3' 30,386.8' 30,918.4 31,725.2 32,281.0 ? Domestic nonfederal nonfinancial sectors 3,312.6 3,600.5' 3,461.6' 3,421.2' 3,362.6' 3,421.2' 3,443.6' 3,506.8' 3,434.0 3,535.9 3,501.6 2,264.1 2,542.1' 2,379.3' 2,311.1' 2,279.7' 2,311.1' 2,342.9' 2,394.4' 2,314.9 2,402.0 2,387.9 4 Nonfinancial corporate business 241.5 226.0 249.4 237.1' 220.9' 237.1' 226.3' 223.0" 230.0 234.2 225.1 Nonfarm noncorporate business 67.5 64.6 65.9 67.9 67.4 67.9 68.7 69.6 69.0 68.8 67.5 6 State and local governments 739.4 767.8 767.0 805.1 794.6 805.1 805.6 819.7 820.1 830.9 821.2 7 Federal government 219.0 258.0 265.3 271.3 269.6 271.3 272.9' 274.6' 276.6 280.1 279.9 8 Rest of the world 2,278.2 2,354.6 2,621.1 2,954.4 2,837.5 2,954.4 3,000.6 3,133.2 3,252.9 3,347.6 3,466.3 9 Financial sectors 17,624.1" 19,385.4' 20,996.4' 22,750.9' 22,272.4' 22,750.9' 23,138.2' 23,472.2' 23,955.0 24,561.6 25,033.1 10 Monetary authority 452.5 478.1 511.8 551.7 534.1 551.7 575.4 590.7 604.2 629.4 641.5 11 Commercial banking 4,336.1 4,648.3 5,006.3 5,210.5 5,100.6 5,210.5 5,231.3 5,328.3 5,476.2 5,620.2 5,679.0 1? U.S.-chartered banks 3,761.4 4,080.0 4,419.5 4,610.1 4,513.5 4,610.1 4,629.3 4,719.7 4,858.4 5,003.9 5,055.6 13 Foreign banking offices in United States 504.5 487.4 511.3 510.7 509.3 510.7 507.7 512.6 521.2 516.9 519.0 14 Bank holding companies 26.5 32.7 20.5 24.7 21.3 24.7 27.7 28.1 27.7 27.8 33.0 15 Banks in U.S.-affiliated areas 43.8 48.3 55.0 65.0 56.5 65.0 66.6 67.9 68.8 71.6 71.5 16 Savings institutions 964.7 1,032.4 1,088.6 1,131.4 1,118.1 1,131.4 1,134.7 1,130.9 1,153.8 1,166.8 1,215.5 17 324.2 351.7 379.7 421.2 408.4 421.2 434.3 443.2' 455.3 463.9 473.2 18 Bank personal trusts and estates 194.1 222.0 222.8 194.7 201.8 194.7 195.0 195.2 195.4 195.6 190.8 19 Life insurance companies 1,828.0 1,886.0 1,943.9 2,074.8 2,054.8 2,074.8 2,136.9 2,180.1 2,250.6 2,286.5 2,323.3 70 Other insurance companies 521.1 518.2 509.4 518.4 511.3 518.4 527.6 536.4 541.9 554.1 564.5 71 Private pension funds 651.2 668.2 701.6 717.9' 720.6 717.9' 731.2' 738.5' 753.1 755.4 760.9 77 State and local government retirement funds 704.6 751.4 806.0 788.4 789.0 788.4 806.0 792.4 789.8 804.9 805.4 73 Money market mutual funds 965.9 1,147.8 1,290.9 1,536.9 1,494.9 1,536.9 1,496.9' 1,419.3 1,405.7 1,511.6 1,485.5 74 Mutual funds 1,028.4 1,076.8 1,097.8 1,223.8 1,188.2 1,223.8 1,276.8 1,291.6 1,334.5 1,365.4 1,415.3 75 98.4 106.9' 100.6' 107.4 103.3 107.4 113.5' 112.9' 112.4 116.7 118.6 76 Government-sponsored enterprises 1,252.3 1,543.5 1,807.1 2,114.3 2,026.1 2,114.3 2,163.8 2,199.9 2,252.9 2,320.9 2,375.8 77 Federally related mortgage pools 2,018.4 2,292.2 2,491.6 2,830.1 2,758.8 2,830.1 2,955.1 3,041.6 3,084.5 3,158.2 3,226.4 78 Asset-backed securities (ABSs) issuers 1,219.4 1,413.6 1,585.4 1,877.3' 1,772.5' 1,877.3' 1,929.4' 1,985.7' 2,033.0 2,128.9 2,196.8 79 Finance companies 645.5 742.5 850.5 844.8 859.5 844.8 832.4 845.6 857.1 862.0 853.1 30 Mortgage companies 32.r 32.1' 32.1' 32.1' 32.1' 32.1' 32.1' 32.1' 32.1 32.1 32.1 31 Real estate investment trusts (REITs) 45.5 42.9 35.8' 42.5' 39.0' 42.5' 49.1' 57.0' 63.9 65.6 63.5 37 Brokers and dealers 189.4 154.7 223.6 316.0 366.4 316.0 299.6 352.6 335.2 344.4 389.2 33 Funding corporations 152.3 276.0 31 l.O1 216.7' 193.0' 216.7' 217.3' 198.2' 219.5 175.1 219.3 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 23,433.8r 25,S98.4r 27,344.4r 29,397.8r 28,742.1' 29,397.8' 29,855.3' 30,386.8' 30,918.4 31,725.2 32,281.0 Other liabilities 35 Official foreign exchange 60.1 50.1 46.1 46.8 49.0 46.8 45.7 47.2 53.1 5555..88 5577..66 36 Special drawing rights certificates 9.2 6.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 37 Treasury currency 19.9 20.9 23.2 24.5 24.5 24.5 24.7 24.8 25.5 25.5 25.6 38 Foreign deposits 642.3 703.6 824.5 908.9 848.0 908.9 894.1 907.4 920.4 934.3 954.1 39 Net interbank liabilities 189.4 202.4 221.2 191.4' 174.4' 191.4' 162.4' 132.3' 150.7 205.9 223.4 40 Checkable deposits and currency 1,333.3 1,484.5 1,413.1 1,603.2 1,487.1 1,603.2 1,518.1' 1,571.9' 1,610.7 1,649.3 1,683.4 41 Small time and savings deposits 2,626.5 2,671.6 2,860.4 3,127.6 3,047.6 3,127.6 3,236.7' 3,256.4' 3,336.8 3,402.4 3,505.9 47 Large time deposits 805.3 936.4 1,052.6 1,121.1 1,094.2 1,121.1 1,178.9 1,188.7 1,199.9 1,175.2 1,212.7 43 Money market fund shares 1,329.7 1,578.8 1,812.1 2,240.7 2,115.4 2,240.7 2,203.3' 2,150.3 2,105.9 2,223.9 2,156.2 44 Security repurchase agreements 913.8 1,083.6 1,196.8 1,231.8 1,251.9 1,231.8 1,262.4 1,343.1 1,313.7 1,336.8 1,325.3 45 Mutual fund shares 3,613.1 4,538.5 4,434.6 4,135.5 3,753.1 4,135.5 4,247.0 3,926.6 3,452.3 3,639.4 3,586.8 46 Security credit 572.2 676.6 822.7 825.9 919.9 825.9 778.0 745.6 726.3 738.8 784.5 47 Life insurance reserves 718.3 783.9 819.1 880.0 844.0 880.0 904.2 915.2 927.9 951.4 968.7 48 Pension fund reserves 8,208.4 9,065.3 9,069.0 8,695.8' 8,281.0 8,695.8' 8,824.7' 8,331.9' 7,732.0 8,014.2 7,936.1 49 Trade payables 2,073.8 2,342.4 2,761.9' 2,688.8' 2,705.4' 2,688.8' 2,714.8' 2,716.4' 2,764.6 2,812.4 2,814.1 50 Taxes payable 170.7 201.4 234.2 251.6' 270.1 251.6' 259.4' 266.1' 282.0 281.0 294.7 51 Investment in bank personal trusts 1,001.0 1,130.4 1,095.8 960.7 916.5 960.7 963.2 893.5 811.6 840.9 806.3 52 Miscellaneous 7,638.0' 8,527.4' 9,717.9' 10,343.0' 10,816.7' 10,343.0' 10,345.1' 10,634.3' 11,043.4 11,013.6 11,281.9 53 Total liabilities 55,358.7' 61,602.4r 6S,7S1.7r 68,677.5' 67,343.2' 68,677.5' 69,420.1' 69,440.9' 69,377.4 71,028.1 71,900.4 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 21.6 21.4 21.6 21.8 22.0 21.8 21.9 22.3 22.8 23.2 22.4 55 Corporate equities 15,548.5' 19,545.7' 17,606.5' 15,267.1' 13,684.2' 15,267.1' 15,292.8' 13,393.0' 10,993.2 11,833.9 11,370.5 56 Household equity in noncorporate business 4,279.4' 4,510.0' 4,748.4' 4,831.0' 4,857.0' 4,831.0' 4,857.4' 4,925.5' 4,981.5 5,024.3 5,068.7 Liabilities not identified as assets (-) 57 -6.4 -7.1 -8.5 -8.6 -8.6 -8.6 -8.9 -9.1 -8.9 -9.1 -9.2 58 Foreign deposits 542.8 585.7 650.9' 715.6' 668.9' 715.6' 698.5' 724.9' 731.0 738.8 768.1 59 Net interbank transactions -26.5 -28.5 -4.3 11.1 4.5 11.1 21.9 18.4 16.5 15.3 19.4 60 Security repurchase agreements 230.6 266.4 388.9 348.6' 398.7 348.6' 401.4' 462.1' 381.6 356.0 342.6 61 Taxes payable 121.2 129.4 146.3 121.7' 167.3 121.7' 110.4' 163.9' 155.2 157.1 141.0 62 Miscellaneous -1,951.9' -2,395.2' -3,394.2' -3,637.3' -3,125.1' -3,637.3' -3,589.1' -3,609.5' -3,510.4 -3,483.5 -3,527.3 Floats not included in assets (-) 63 Federal government checkable deposits -3.9 -9.8 -2.3 -12.3 ^t.O -12.3 -9.6 -9.3 -14.8 -11.7 27.4 64 Other checkable deposits 23.1 22.3 24.0 28.6 19.2 28.6 26.3 31.4 25.8 35.9 34.2 65 Trade credit 84.8 95.6 122.0' 115.5' 16.4' 115.5' 56.5' 10.0' 2.4 78.1 22.6 66 Totals identified to sectors as assets 76,194.3r 87,020.6r 90,205.4r 91,114.5' 87,769.0' 91,114.5' 91,884.7' 89,998.9' 87,596.4 90,032.6 90,543.3 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L.l and L.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • July 2003 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 2002 2003 2002 2003 2002 2003 Q2 Q3 Q4 Qir Q2 Q3 Q4 Ql Q2 Q3 Q4 QF Output (1997=100) Capacity (percent of 1997 output) Capacity utilization rate (percent)2 1 Total industry 110.5 111.4 110.4 110.5 145.9 146.2 146.6 147.1 75.7 76.2 75.3 75.2 2 Manufacturing 111.4 112.3 111.2 111.0 150.9 151.1 151.4 151.7 73.9 74.3 73.5 73.2 3 Manufacturing (NAICS) 111.8 112.6 111.5 111.2 152.2 152.5 152.8 153.3 73.5 73.8 73.0 72.6 4 Durable manufacturing 121.2 122.3 121.4 121.4 172.5 173.4 174.2 175.1 70.2 70.5 69.7 69.3 5 Primary metal 85.6 85.9 86.0 85.9 112.0 111.4 110.8 110.7 76.4 77.1 77.6 77.6 6 Fabricated metal products 99.1 99.5 98.9 97.5 139.3 139.4 139.6 139.8 71.2 71.3 70.8 69.7 7 Machinery 88.6 88.7 86.7 87.3 129.9 129.9 129.9 129.8 68.2 68.3 66.7 67.2 8 Computer and electronic products 219.6 222.6 224.4 227.1 350.1 355.4 360.3 366.2 62.7 62.6 62.3 62.0 y Electrical equipment, appliances, and components 98.3 97.7 96.8 95.6 129.1 128.6 128.2 128.1 76.1 75.9 75.5 74.6 10 Motor vehicles and parts 116.8 121.7 120.0 120.2 145.9 147.1 148.4 149.9 80.0 82.7 80.8 80.1 n Aerospace and miscellaneous transportation equipment 87.6 85.9 85.1 85.8 145.5 145.3 145.1 145.1 60.2 59.1 58.7 59.1 12 Nondurable manufacturing 99.7 100.1 98.8 98.3 127.7 127.5 127.3 127.3 78.1 78.5 77.6 77.2 13 Food, beverage, and tobacco products .... 100.8 100.1 98.8 97.9 125.8 125.7 125.6 125.5 80.2 79.7 78.7 78.0 14 Textile and product mills 83.3 82.9 81.2 78.8 112.3 111.7 111.1 110.6 74.2 74.2 73.1 71.3 15 Paper 94.2 95.7 95.8 93.5 114.2 114.0 113.8 113.6 82.5 84.0 84.2 82.3 16 Petroleum and coal products 103.3 102.3 102.8 102.1 114.9 115.2 115.7 116.1 89.9 88.7 88.9 88.0 17 Chemical 105.3 106.4 104.1 105.2 141.2 141.2 141.3 141.5 74.6 75.3 73.7 74.3 18 Plastics and rubber products 106.6 107.3 105.6 105.1 134.2 133.6 132.9 132.5 79.4 80.4 79.4 79.4 19 Other manufacturing (non-NAICS) 104.6 106.0 106.0 107.0 130.3 129.5 128.7 128.3 80.3 81.8 82.3 83.3 20 Mining 93.4 93.5 93.7 93.7 110.2 110.1 110.2 110.3 84.8 84.9 85.1 84.9 21 Electric and gas utilities 110.2 112.5 111.5 114.3 125.5 127.6 129.7 131.5 87.8 88.2 86.0 86.9 MEMOS 22 Computers, communications equipment, and semiconductors 290.3 295.5 300.4 306.1 466.7 475.3 483.3 493.9 62.2 62.2 62.2 62.0 23 Total excluding computers, communications equipment, and semiconductors 100.6 101.3 100.3 100.3 130.4 130.5 130.6 130.9 77.1 77.6 76.8 76.6 24 Manufacturing excluding computers, communications equipment, and semiconductors 99.9 100.5 99.4 99.1 132.6 132.6 132.6 132.7 75.3 75.8 75.0 74.7 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 cycle3 Latest cycle4 2002 2002 2003 aeries High Low High Low High Low Apr. Nov. Dec. Jan.1" Feb.' Mar.' Apr.p Capacity utilization rate (percent)2 1 Total industry 88.8 74.0 86.6 70.8 85.1 78.6 75.6 75.6 74.9 75.3 75.3 74.8 74.4 2 Manufacturing 88.0 71.6 86.3 68.6 85.5 77.2 73.6 73.7 73.0 73.3 73.2 73.0 72.5 3 Manufacturing (NAICS) 88.1 71.4 86.3 67.9 85.5 77.0 73.3 73.3 72.5 72.8 72.6 72.3 71.9 4 Durable manufacturing 88.9 69.6 87.0 63.1 84.5 73.4 70.0 70.2 69.1 69.8 69.3 68.9 68.3 5 Primary metal 100.9 68.9 91.3 47.2 95.3 75.2 75.4 77.8 76.1 76.9 79.3 76.7 75.2 6 Fabricated metal products .... 91.8 69.6 83.1 61.7 80.1 71.0 70.7 70.7 70.4 70.1 69.6 69.5 68.8 7 Machinery 94.2 74.2 92.8 58.3 84.7 72.9 67.9 67.3 66.0 66.8 67.2 67.7 67.8 8 Computer and electronic products 87.0 66.9 89.8 77.3 81.5 76.4 62.6 62.3 62.0 62.3 61.8 61.9 61.8 9 Electrical equipment, appliances, and components 99.3 68.5 91.9 64.4 87.5 75.0 75.2 75.6 75.6 74.7 75.1 74.0 73.7 10 Motor vehicles and parts 95.3 55.3 96.2 45.2 90.0 56.6 79.6 83.5 79.1 82.3 79.8 78.4 76.5 11 Aerospace and miscellaneous transportation equipment . 75.0 66.3 84.6 69.8 88.9 81.9 60.7 58.4 58.7 59.3 59.1 59.0 58.9 12 Nondurable manufacturing 87.5 72.5 85.7 75.6 86.9 81.8 77.8 77.7 77.2 77.2 77.2 77.2 76.8 13 Food, beverage, and tobacco products 85.9 78.0 84.3 80.2 85.5 81.3 80.3 78.5 78.3 78.5 77.9 77.8 77.8 14 Textile and product mills .... 89.8 62.8 90.1 72.3 91.1 77.1 73.8 73.5 72.8 70.7 71.4 71.7 70.7 15 Paper 97.4 74.7 95.6 81.3 94.0 85.4 81.4 85.1 83.5 81.9 81.9 83.3 82.5 16 Petroleum and coal products . . 93.2 81.0 92.3 71.1 88.9 82.5 90.8 89.8 90.7 88.0 87.7 88.2 86.4 17 Chemical 85.0 68.9 83.0 67.9 85.6 80.8 74.5 73.8 73.2 73.8 74.6 74.6 74.1 18 Plastics and rubber products .. 96.3 61.6 90.5 70.5 91.2 77.1 78.6 79.6 78.8 79.1 79.5 79.5 79.3 19 Other manufacturing (non-NAICS). 85.7 75.7 88.1 85.7 90.2 79.1 79.7 81.9 82.4 82.0 83.4 84.6 83.4 20 Mining 93.6 87.6 94.2 78.6 85.6 83.3 84.7 85.0 86.4 84.9 84.8 85.1 85.4 21 Electric and gas utilities 96.2 82.7 87.9 77.2 92.6 84.2 88.6 86.4 84.8 87.8 88.4 84.5 84.3 MEMOS 22 Computers, communications equipment, and semiconductors . 84.5 63.1 89.9 75.6 80.4 74.6 61.9 62.4 61.7 61.8 61.8 62.3 62.4 23 Total excluding computers, communications equipment, and semiconductors 89.1 74.3 86.6 70.5 85.5 78.8 77.0 77.0 76.4 76.8 76.8 76.2 75.8 24 Manufacturing excluding computers communications equipment, and semiconductors . 88.3 71.9 86.3 68.1 86.1 77.3 75.1 75.3 74.5 74.9 74.7 74.5 73.9 Note. The statistics in the G.17 release cover output, capacity, and capacity utilization in the data are also available on the Board's web site http://www.federalreserve.gov/releases/gl7. industrial sector, which the Federal Reserve defines are manufacturing, mining, and electric The latest historical revision of the industrial production index and the capacity utilization and gas utilities. Manufacturing consists of those industries included in the North American rates was released in December 2002. The recent annual revision is described in the April Industry Classification System, or NAICS, manufacturing plus those industries—logging and 2003 issue of the Bulletin. newspaper, periodical, book, and directory publishing—that have traditionally been consid- 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally ered manufacturing and included in the industrial sector. adjusted index of industrial production to the corresponding index of capacity. 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. The 3. Monthly highs, 1978-80; monthly lows, 1982. 4. Monthly highs, 1988-89; monthly lows, 1990-91. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • July 2003 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted „ up 1 p p 9 r o o 9 r - - 2 2 a 0 v 0 g 2 . 2002 2003 tion Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.' Feb.' Mar.' Apr.P Index(1997= 100) MAJOR MARKETS 1 Total IP 100.0 110.5 110.1 110.4 110.8 111.6 111.3 111.2 110.6 110.8 109.9 110.7 110.7 110.2 109.7 Market groups 2 Final products and nonindustrial supplies 60.8 109.3 109.1 109.3 109.6 110.1 109.8 109.8 109.1 109.3 108.2 109.1 109.1 108.6 108.1 3 Consumer goods 29.0 107.5 107.5 107.3 107.8 108.5 107.8 107.9 107.0 107.8 106.6 107.7 107.5 107.0 106.5 4 Durable 5.8 117.3 116.5 117.2 118.6 120.0 119.3 118.7 117.0 121.0 117.8 120.5 118.4 117.7 116.9 5 Automotive products 2.5 125.4 123.8 124.2 127.4 130.6 130.6 129.3 125.9 132.4 125.9 131.3 128.4 126.8 125.7 6 Home electronics 0.4 142.9 139.9 143.8 135.3 137.0 135.4 142.6 140.1 142.1 145.3 152.7 151.2 151.9 154.4 7 Appliances, furniture, carpeting 1.3 106.9 108.2 109.1 107.5 106.9 104.5 104.6 104.9 107.1 107.7 105.4 105.4 105.6 105.6 8 Miscellaneous goods 1.6 98.5 98.1 98.9 100.2 99.2 98.3 97.8 98.2 98.3 98.7 98.7 96.7 96.9 95.5 y Nondurable 23.2 104.1 104.4 103.9 104.1 104.6 103.8 104.2 103.6 103.3 102.8 103.4 103.7 103.3 103.0 10 Non-energy 20.2 102.6 102.8 102.2 102.8 102.8 102.4 102.6 102.0 101.3 100.8 101.1 101.2 101.3 101.0 11 Foods and tobacco 10.4 99.5 100.4 100.0 100.2 99.8 99.2 99.1 98.7 97.9 97.4 97.6 96.8 96.6 96.7 12 Clothing 2.4 72.4 72.7 72.9 72.9 73.2 71.3 72.1 70.2 70.6 69.9 69.7 69.8 68.4 67.3 13 Chemical products 4.6 119.1 118.5 116.8 118.3 119.5 119.0 119.5 118.3 118.0 116.9 117.9 119.7 120.2 119.8 14 Paper products 2.9 108.1 106.0 106.2 107.2 107.1 108.4 109.8 110.0 108.8 109.0 108.3 109.5 111.0 109.7 15 Energy 3.0 112.0 112.8 112.5 110.9 114.0 111.6 112.8 111.8 114.0 113.3 115.7 117.2 113.8 113.4 16 Business equipment 13.2 107.3 107.7 108.0 108.0 107.3 108.1 106.9 106.0 106.1 104.6 105.6 105.5 105.5 105.0 17 Transit 2.5 81.2 83.2 82.0 81.1 80.2 81.1 79.7 77.3 77.9 75.4 75.7 74.2 73.6 72.2 18 Information processing 5.4 153.8 154.7 154.9 154.9 153.5 153.7 152.1 153.1 152.8 152.7 155.1 154.9 156.8 156.6 19 Industrial and other 5.3 91.5 91.1 91.9 92.2 92.0 92.9 92.0 91.2 91.1 89.7 90.4 90.8 90.4 90.2 20 Defense and space equipment 3.4 101.2 99.9 100.6 101.2 101.2 101.9 102.0 102.5 101.7 102.3 104.1 104.2 104.3 103.9 21 Construction supplies 5.4 104.0 104.0 104.6 104.5 104.4 104.8 104.5 104.2 103.8 102.4 102.3 101.8 101.5 100.7 22 Business supplies 9.1 121.9 120.7 121.5 121.8 123.2 122.6 123.6 123.1 122.5 121.9 122.8 123.5 122.6 122.1 23 Materials 39.2 112.2 111.6 112.2 112.6 113.8 113.6 113.4 112.8 113.1 112.4 113.0 113.2 112.5 111.9 24 Non-energy 29.6 115.8 115.0 115.8 116.4 117.2 117.4 117.2 116.7 116.7 115.6 116.0 116.2 115.9 115.0 25 Durable 20.7 128.0 127.1 127.8 128.6 129.4 130.0 129.5 129.5 129.7 128.1 129.1 129.3 128.4 127.5 26 Consumer parts 4.0 110.8 110.8 110.1 110.4 113.4 112.3 112.4 111.7 114.6 111.1 113.8 112.2 110.9 108.3 27 Equipment parts 7.5 182.6 179.8 182.3 183.6 184.2 186.3 185.7 185.7 185.3 184.4 186.0 186.1 186.4 187.5 28 Other 9.2 97.1 96.7 97.2 97.9 97.7 98.3 97.7 98.0 97.2 96.4 96.3 97.2 96.3 95.4 29 Nondurable 8.9 97.0 96.5 97.3 97.6 98.4 98.2 98.3 97.1 97.0 96.5 96.2 96.4 96.7 96.0 30 Textile 1.1 77.6 77.8 78.2 78.5 79.6 77.8 78.4 77.2 77.0 75.3 74.1 74.0 73.4 72.4 31 Paper 1.8 94.8 93.3 94.8 93.6 95.8 96.1 96.7 96.8 96.9 95.8 94.4 93.7 94.8 94.1 32 Chemical 4.0 99.1 99.6 100.4 100.6 101.3 100.7 100.2 98.2 97.9 97.3 98.3 99.0 99.1 98.4 33 Energy 9.6 98.7 98.6 98.5 98.6 101.0 99.3 99.1 98.4 99.4 99.7 100.9 101.2 99.7 99.8 SPECIAL AGGREGATES 34 Total excluding computers, communication equipment, and semiconductors 94.7 100.5 100.3 100.5 100.8 101.5 101.2 101.2 100.5 100.6 99.8 100.5 100.5 99.9 99.3 35 Total excluding motor vehicles and parts 94.3 110.0 109.7 110.1 110.3 110.8 110.5 110.5 110.0 109.8 109.3 109.8 110.1 109.6 109.2 Gross value (billions of 1996 dollars, annual rates) 36 Final products and nonindustrial supplies 100.0 2,793.1 2,796.7 2,802.2 2,809.9 2,828.0 2,821.5 2,817.8 2,793.6 2,817.8 2,783.5 2,808.6 2,802.0 2,787.8 2,772.4 37 Final products 77.2 2,018.6 2,020.7 2,021.4 2,028.7 2,042.2 2,038.1 2,031.4 2,010.8 2,037.3 2,010.7 2,032.1 2,024.6 2,016.1 2,004.8 38 Consumer goods 51.9 1,384.6 1,386.3 1,384.8 1,390.2 1,404.1 1,395.9 1,394,3 1,379.1 1,402.0 1,384.1 1,399.9 1,393.5 1,385.6 1,377.5 39 Equipment total 25.3 624.9 625.3 628.1 629.9 627.9 633.6 627.7 622.6 624.4 615.8 620.9 620.3 620.6 617.4 40 Nonindustrial supplies 22.8 774.4 776.1 780.9 781.3 785.9 783.5 786.6 783.2 780.5 772.8 776.4 777.4 771.5 767.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A43 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued Monthly data seasonally adjusted 1992 2002 2003 GGrroouupp N c A od IC e2 S p p r o o r - - 2 aa 0 vv 0 gg 2 .. tion Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb." Mar.r Apr.P Index (1997= 100) INDUSTRY GROUPS 41 Manufacturing 85.4 111.4 111.0 111.4 111.9 112.3 112.4 112.1 111.4 111.6 110.6 111.1 111.0 110.9 110.2 42 Manufacturing (NAICS) 79.1 111.7 111.4 111.9 112.2 112.7 112.8 112.4 111.7 112.0 110.8 111.5 111.3 111.0 110.4 43 Durable manufacturing 43.0 121.1 120.5 121.2 121.8 122.2 122.7 122.0 121.5 122.2 120.5 121.9 121.4 120.9 120.2 44 Wood products 321 1.5 100.5 100.8 101.0 102.2 101.9 102.5 100.7 99.2 98.3 96.9 97.4 95.6 94.3 95.0 45 Nonmetallic mineral products 327 2.0 107.9 107.4 107.7 106.6 107.7 108.5 109.8 109.3 110.2 108.0 109.7 109.0 108.4 107.6 46 Primary metal 331 2.7 85.6 84.6 85.9 86.2 85.0 87.6 85.0 87.6 86.2 84.1 85.0 87.8 85.0 83.4 47 Fabricated metal products . 332 5.3 99.0 98.4 99.7 99.3 99.7 99.3 99.4 99.8 98.7 98.3 97.9 97.4 97.2 96.4 48 Machinery 333 5.7 87.9 88.3 88.5 88.9 88.4 89.4 88.2 86.8 87.4 85.8 86.7 87.3 87.8 87.9 49 Computer and electronic products 334 8.8 220.4 217.9 220.0 220.8 221.5 223.0 223.2 224.2 224.5 224.5 226.6 226.5 228.2 229.3 50 Electrical equipment, appliances, and components 335 2.5 97.7 97.2 98.9 98.7 98.4 98.0 96.5 96.6 97.0 96.9 95.7 96.2 94.8 94.5 51 Motor vehicles and parts . . 3361-3 5.7 117.3 115.9 115.8 118.6 122.1 122.0 121.1 118.3 123.9 117.8 122.9 119.7 117.9 115.5 52 Aerospace and miscellaneous transportation equipment 3364-9 4.5 87.6 88.3 87.6 86.9 85.7 86.3 85.7 85.5 84.8 85.2 86.0 85.7 85.6 85.5 53 Furniture and related products 337 1.5 101.3 101.8 101.5 101.6 101.4 100.5 101.4 100.7 100.6 98.9 98.8 99.0 97.5 96.1 54 Miscellaneous 339 2.8 109.5 109.6 110.2 110.7 110.6 110.2 109.1 109.3 108.6 110.0 109.5 109.2 110.0 109.6 55 Nondurable manufacturing .. 36.1 99.5 99.5 99.7 99.9 100.4 100.0 100.0 99.1 98.9 98.3 98.2 98.3 98.3 97.8 56 Food, beverage, and tobacco products .... 311,2 10.9 100.2 101.0 100.6 100.9 100.5 100.0 99.9 99.5 98.6 98.3 98.5 97.8 97.6 97.6 57 Textile and product mills .. 313,4 1.8 82.5 82.9 83.6 83.4 83.9 82.5 82.3 81.3 81.7 80.8 78.4 79.0 79.1 78.0 58 Apparel and leather 315,6 2.2 72.2 72.5 72.7 72.6 73.0 71.2 71.8 70.2 70.5 69.7 69.7 69.6 68.4 67.2 59 Paper 322 3.3 94.4 93.0 95.0 94.7 95.2 95.8 96.1 95.7 96.8 95.0 93.0 93.0 94.5 93.6 60 Printing and support 323 2.8 97.8 95.5 96.2 95.5 98.4 98.6 99.9 99.5 98.4 98.9 99.1 97.9 96.8 96.7 61 Petroleum and coal products 324 1.4 102.9 104.2 103.4 102.4 103.0 102.7 101.0 99.4 103.9 105.0 102.0 101.8 102.5 100.6 62 Chemical 325 10.3 105.1 105.1 105.0 105.7 106.9 106.2 106.1 104.6 104.2 103.4 104.4 105.5 105.6 104.9 63 Plastics and rubber products 326 3.4 106.0 105.7 106.7 107.4 107.5 107.3 107.2 106.4 105.8 104.6 104.9 105.3 105.2 104.8 64 Other manufacturing (non-NAICS) 1133,5111 4.3 105.5 104.1 104.2 105.5 105.0 105.8 107.1 106.7 105.4 105.9 105.3 107.0 108.5 107.0 65 Mining 21 6.6 93.8 93.4 93.4 93.5 94.4 93.9 92.2 92.3 93.6 95.2 93.6 93.5 93.9 94.2 66 Utilities 2211,2 10.1 110.2 110.6 110.1 110.1 113.7 110.4 113.3 112.1 112.1 110.5 115.0 116.3 111.7 111.8 67 Electric 2211 8.6 111.8 112.5 111.2 111.4 115.7 112.2 115.8 113.7 113.3 112.2 116.8 118.0 113.6 113.7 68 Natural gas 2212 1.6 97.5 100.2 104.4 103.2 102.7 100.8 99.9 103.6 105.8 101.6 105.4 107.4 101.1 102.0 69 Manufacturing excluding computers, communications equipment, and semiconductors 78.0 99.8 99.5 99.9 100.2 100.6 100.6 100.4 99.7 99.8 98.8 99.3 99.1 98.9 98.2 70 Manufacturing excluding motor vehicles and parts 77.6 110.9 110.5 111.0 111.3 111.4 111.5 111.3 110.8 110.5 109.9 110.1 110.3 110.3 109.8 Note. The statistics in the G.17 release cover output, capacity, and capacity utilization in the 1. Data in this table appear in the Board's G. 17 (419) monthly statistical release. The data industrial sector, which the Federal Reserve defines are manufacturing, mining, and electric are also available on the Board's web site http://www.federalreserve.gov/releases/gl7. The and gas utilities. Manufacturing consists of those industries included in the North American latest historical revision of the industrial production index and the capacity utilization rates Industry Classification System, or NAICS, manufacturing plus those industries—logging and was released in December 2002. The recent annual revision is described in the April 2003 newspaper, periodical, book, and directory publishing—that have traditionally been consid- issue of the Bulletin. ered manufacturing and included in the industrial sector. 2. North American Industry Classification System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 International Statistics • July 2003 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 2001 2002 IItteemm ccrreeddiittss oorr ddeebbiittss 22000000 22000011 22000022 Q4 Ql Q2 Q3 Q4P 1 Balance on current account ^10,341 -393,371 -503,427 -95,086 -112,542 -127,697 -126,337 -136,854 2 Balance on goods and services -378,681 -358,290 -435,542 -88,028 -95,629 -109,446 -110,257 -120,213 3 Exports 1,064,239 998,022 971,864 232,930 232,959 244,251 248,917 245,740 4 Imports -1,442,920 -1,356,312 -1,407,406 -320,958 -328,588 -353,697 -359,174 -365,953 5 Income, net 21,782 14,382 -11,862 6,521 -982 -5,324 -3,007 -2,553 6 Investment, net 27,651 20,539 -5,424 8,102 636 -3,675 -1,462 -927 7 Direct 88,862 102,595 77,947 28,602 22,023 18,749 18,626 18,548 8 Portfolio -61,211 -82,056 -83,371 -20,500 -21,387 -22,424 -20,088 -19,475 y Compensation of employees -5,869 -6,157 -6,438 -1,581 -1,618 -1,649 -1,545 -1,626 10 Unilateral current transfers, net -53,442 ^19,463 -56,023 -13,579 -15,931 -12,927 -13,073 -14,088 11C hange in U.S. government assets other than official reserve assets, net (increase, -) -941 -486 379 143 133 42 -27 231 12 Change in U.S. official reserve assets (increase, —) -290 -4,911 -3,681 -199 390 -1,843 -1,416 -812 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -722 -630 -475 -140 -109 -107 -132 -127 15 Reserve position in International Monetary Fund 2,308 -3,600 -2,632 83 652 -1,607 -1,136 -541 16 Foreign currencies -1,876 -681 -574 -142 -153 -129 -148 -144 17 Change in U.S. private assets abroad (increase, -) -605,258 -365,565 -152,867 -100,032 -26,707 -129,544 41,714 -38,334 18 Bank-reported claims2 -148,657 -128,705 -3,072 -83,682 727 -68,655 53,815 11,041 iy Nonbank-reported claims -150,805 -14,358 -28,489 37,210 65 -16,693 -4,226 -7,635 20 U.S. purchase of foreign securities, net -127,502 -94,662 2,222 -26,090 2,047 -9,675 18,543 -8,693 21 U.S. direct investments abroad, net -178,294 -127,840 -123,528 -27,470 -29,546 -34,521 -26,418 -33,047 22 Change in foreign official assets in United States (increase, +) 37,640 5,224 96,630 5,086 7,641 47,252 9,534 32,203 23 U.S. Treasury securities -10,233 10,745 43,656 16,760 -582 15,193 1,415 27,630 24 Other U.S. government obligations 40,909 20,920 30,357 7,630 7,296 6,548 10,885 5,628 25 Other U.S. government liabilities2 -1,909 -1,882 158 -504 -790 54 1,001 -107 26 Other U.S. liabilities reported by U.S. banks2 5,746 -30,278 18,831 -20,507 991 24,531 -4,602 -2,089 27 Other foreign official assets3 3,127 5,719 3,628 1,707 726 926 835 1,141 28 Change in foreign private assets in United States (increase, +) 978,346 747,582 533,734 245,711 105,959 157,159 119,786 150,827 29 U.S. bank-reported liabilities4 116,971 110,667 94,605 85,598 -11,051 32,240 18,793 54,623 30 U.S. nonbank-reported liabilities 174,251 82,353 49,736 1,170 32,345 21,056 -3,804 139 31 Foreign private purchases of U.S. Treasury securities, net -76,965 -7,670 53,155 27,229 -7,282 -5,124 52,856 12,705 32 U.S. currency flows 1,129 23,783 21,513 10,497 4,525 7,183 2,556 7,249 33 Foreign purchases of other U.S. securities, net 455,213 407,653 284,611 99,320 71,095 104,404 46,494 62,618 34 Foreign direct investments in United States, net 307,747 130,796 30,114 21,897 16,327 -2,600 2,891 13,493 35 Capital account transactions, net5 837 826 708 205 208 200 156 144 36 Discrepancy 7 10,701 28,524 -55,828 24,918 54,431 -43,410 -7,405 37 Due to seasonal adjustment 1,721 10,269 1,504 -13,991 2,228 38 Before seasonal adjustment 7 10,701 28,524 -57,549 14,649 52,927 -29,419 -9,633 MEMO Changes in official assets 39 U.S. official reserve assets (increase, -) -290 -4,911 -3,681 -199 390 -1,843 -1,416 -812 40 Foreign official assets in United States, excluding line 25 (increase, +) 39,549 7,106 96,472 5,590 8,431 47,198 8,533 32,310 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 12,000 -1,725 -8,132 3,382 -8,532 838 -1,289 851 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 2003 AAsssseett 11999999 22000000 22000011 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayp 1 Total 71,516 67,647 68,654 75,499 75,690 79,006 78,434 78,579 80,049 80,405 n.a. 2 Gold stock1 11,048 11,046 11,045 11,042 11,043 11,043 11,043 11,043 11,043 11.043 11,043 3 Special drawing rights23 10,336 10,539 10,774 11,700 11,855 12,166 11,298 11,368 11,392 11,476 n.a. 4 Reserve position in International Monetary Fund2 17,950 14,824 17,854 20,586 20,480 21,979 21,953 21,686 22,858 22,738 n.a. 5 Foreign currencies4 32,182 31,238 28,981 32,171 32,312 33,818 34,140 34,482 34,756 35,148 36,149 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 2003 AAsssseett 11999999 22000000 22000011 Oct.' Nov.' Dec.' Jan.' Feb.' Mar.' Apr.' May? 1 Deposits 71 215 61 89 78 136 102 224 254 313 79 Held in custody 2 U.S. Treasury securities2 632,482 594,094 592,630 647,165 669,092 678,106 683,837 700,341 710,955 702,041 727,142 3 Earmarked gold3 9,933 9,451 9,099 9,050 9,045 9,045 9,045 9,045 9,045 9,040 9,031 NOTE. The headers for monthly 2002 and 2003 were misaligned over the wrong data cells in 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury the June 2003 issue of the Federal Reserve Bulletin. The correct alignment is shown above. securities, in each case measured at face (not market) value. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 International Statistics • July 2003 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2002 2003 IItteemm 22000000 22000011 Sept. Oct. Nov. Dec. Jan. Feb.' Mar.P 1 Total1 975,303 987,567 1,049,985 1,047,933 1,069,536 1,082,291 l,090,034r 1,109,422 1,118,854 By type 2 Liabilities reported by banks in the United States2 144,593 123,425 143,113 136,721 138,496 141,019 140,071' 149,463 148,778 3 U.S. Treasury bills and certificates3 153,010 161,719 185,187 188,474 190,111 190,375 194,762' 196,344 206,153 U.S. Treasury bonds and notes 4 Marketable 450,832 454,306 446,705 446,152 462,729 469,437 468,682' 471,223 471,705 5 Nonmarketable4 5,348 3,411 3,058 3,078 3,097 2,769 2,786' 2,803 2,821 6 U.S. securities other than U.S. Treasury securities5 221,520 244,706 271,922 273,508 275,103 278,691 283,733' 289,589 289,397 Bv area 7 Europe1 240,325 243,448 260,506 254,425 265,831 273,136 273,174' 280,721 277,422 8 Canada 13,727 13,440 10,097 10,300 10,975 11,079 10,455' 9,796 9,813 9 Latin America and Caribbean 70,442 71,103 62,227 64,289 63,002 63,244 62,016' 63,220 62,965 10 Asia 626,016 635,179 690,746 692,195 701,016 706,131 718,000' 727,124 742,599 11 Africa 14,690 15,167 14,514 15,524 15,602 15,338 14,589' 15,939 15,215 12 Other countries 10,101 9,228 11,893 11,198 13,108 13,361 11,798' 12,620 10,838 1. Includes the Bank for International Settlements. 5. Debt securities of U.S. government corporations and federally sponsored agencies, and 2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, U.S. corporate stocks and bonds. negotiable time certificates of deposit, and borrowings under repurchase agreements. SOURCE. Based on U.S. Department of the Treasury data and on data reported to the 3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official Treasury by banks (including Federal Reserve Banks) and securities dealers in the United institutions of foreign countries. States, and in periodic benchmark surveys of foreign portfolio investment in the United 4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of States. zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning March 1990, 30-year maturity issue; Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April 1993, 30-year maturity issue. 3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS Reported by Banks in the United States' Payable in Foreign Currencies Millions of dollars, end of period 2002 IItteemm 11999999 22000000 22000011'' Mar. June Sept. Dec. 1 Banks' liabilities 88,537 77,779 79,363 74,955 89,823 81,719 80,541 2 Banks' claims 67,365 56,912 74,640 76,395' 88,924' 80,945' 70,193' 3 Deposits 34,426 23,315 44,094 46,778 51,860 44,511 33,085 4 Other claims 32,939 33,597 30,546 29,617' 37,064' 36,434' 37,108' 5 Claims of banks' domestic customers2 20,826 24,411 17,631 16,642 15,848 20,475 33,632 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A47 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 2003 IItteemm 22000000 22000011 22000022 Sept. Oct. Nov. Dec. Jan.' Feb.' Mar.p BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,511,410 1,636,538 1,818,517 1,748,122 1,834,715 1,776,362 1,818,517 1,783,978 1,944,199 2,005,941 2 Banks' own liabilities 1,077,636 1,181,097 1,274,227 1,218,134 1,305,674 1,242,279 1,274,227 1,241,101 1,389,180 1,452,048 By type of liability 3 Deposits2 221,248 191,742 171,802 156,758 164,057 165,306 171,802 165,384 727,958 754,892 4 Other 171,401 197,064 249,954 273,178 263,717 256,726 249,954 271,711 661,222 697,156 5 Of which: repurchase agreements3 0 151,143 190,134 213,172 200,313 190,283 190,134 210,349 306,017 338,431 6 Banks' custody liabilities4 433,774 455,441 544,290 529,988 529,041 534,083 544,290 542,877 555,019 553,893 By type of liability 7 U.S. Treasury bills and certificates5 177,846 186,115 229,511 224,733 223,569 226,302 229,511 231,366 233,814 244,704 8 Other negotiable and readily transferable instruments6 145,840 139,807 163,751 161,710 160,122 156,558 163,751 160,802 172,225 169,797 9 Of which: negotiable time certificates of deposit held in custody for foreigners 34,217 20,440 26,084 29,700 29,198 26,435 26,084 25,596 27,876 28,400 10 Of which: short-term agency securities7 0 59,781 73,078 70,724 68,834 66,226 73,078 67,933 74,851 73,615 11 Other 110,088 129,519 151,028 143,545 145,350 151,223 151,028 150,709 148,980 139,392 12 Nonmonetary international and regional organizations8 12,543 10,830 13,469 11,712 13,069 12,221 13,469 14,624 12,085 9,377 13 Banks' own liabilities 12,140 10,169 12,362 10,923 12,454 11,443 12,362 13,921 11,439 9,331 14 Deposits2 6,287 3,791 5,769 5,669 6,178 5,245 5,769 5,298 6,305 5,039 15 Other 5,853 6,378 6,593 5,254 6,276 6,198 6,593 8,623 5,134 4,292 16 Banks' custody liabilities4 403 661 1,107 789 615 778 1,107 703 646 46 17 U.S. Treasury bills and certificates5 252 600 1,089 765 597 760 1,089 687 621 4 18 Other negotiable and readily transferable instruments6 149 61 18 18 18 18 18 16 25 30 19 Other 2 0 0 6 0 0 0 0 0 12 20 Official institutions9 297,603 285,144 331,394 328,300 325,195 328,607 331,394 334,833 345,807 354,931 21 Banks' own liabilities 96,989 83,824 90,822 96,598 91,550 93,558 90,822 93,790 98,178 95,278 22 Deposits2 39,525 22,668 20,629 15,912 17,736 17,525 20,629 17,162 25,430 23,560 23 Other 57,464 61,156 70,193 80,686 73,814 76,033 70,193 76,628 72,748 71,718 24 Banks' custody liabilities4 200,614 201,320 240,572 231,702 233,645 235,049 240,572 241,043 247,629 259,653 25 U.S. Treasury bills and certificates5 153,010 161,719 190,375 185,187 188,474 190,111 190,375 194,762 196,344 206,153 26 Other negotiable and readily transferable instruments6 47,366 38,531 50,133 45,571 44,391 44,137 50,133 45,285 50,763 52,615 27 Other 238 1,070 64 944 780 801 64 996 522 885 28 Banks10 972,932 1,053,084 1,164,864 1,083,250 1,184,129 1,127,288 1,164,864 1,118,064 1,136,558 1,162,932 29 Banks' own liabilities 821,306 914,492 969,975 898,626 996,584 934,125 969,975 923,313 942,870 983,148 30 Deposits2 82,426 68,656 52,738 43,109 48,053 51,088 52,738 49,286 581,880 612,451 31 Other 53,893 53,545 64,766 67,319 70,631 62,790 64,766 70,021 360,990 370,697 32 Banks' custody liabilities4 151,626 138,592 194,889 184,624 187,545 193,163 194,889 194,751 193,688 179,784 33 U.S. Treasury bills and certificates5 16,023 11,541 21,308 20,079 19,253 18,887 21,308 20,240 18,166 19,620 34 Other negotiable and readily transferable instruments6 36,036 24,059 46,773 46,990 48,250 47,836 46,773 48,618 52,120 48,344 35 Other 99,567' 102,992' 126,808' 117,555' 120,042' 126,440' 126,808' 125,893 123,402 111,820 36 Other foreigners" 228,332 287,480 308,790 324,860 312,322 308,246 308,790 316,457 449,749 478,701 37 Banks' own liabilities 147,201 172,612 201,068 211,987 205,086 203,153 201,068 210,077 336,693 364,291 38 Deposits2 93,010 96,627 92,666 92,068 92,090 91,448 92,666 93,638 114,343 113,842 39 Other 54,191 75,985 108,402 119,919 112,996 111,705 108,402 116,439 222,350 250,449 40 Banks' custodial liabilities 81,131 114,868 107,722 112,873 107,236 105,093 107,722 106,380 113,056 114,410 41 U.S. Treasury bills and certificates5 8,561 12,255 16,739 18,702 15,245 16,544 16,739 15,677 18,683 18,927 42 Other negotiable and readily transferable instruments6 62,289 77,156 66,827 69,131 67,463 64,567 66,827 66,883 69,317 68,808 43 Other 10,281 25,457 24,156 25,040 24,528 23,982 24,156 23,820 25,056 26,675 MEMO 44 Own foreign offices12 684,987 792,291 852,471 788,198 877,900 820,247 852,471 804,006 911,346 948,277 1. Reporting banks include all types of depository institutions as well as some banks/ 9. Foreign central banks, foreign central governments, and the Bank for International financial holding companies and brokers and dealers. Excludes bonds and notes of maturities Settlements. longer than one year. Effective February 2003, coverage is expanded to include liabilities of 10. Excludes central banks, which are included in "Official institutions." Includes posibrokers and dealers to affiliated foreign offices. tions with affiliated banking offices also included in memo line (44) below. 2. Non-negotiable deposits and brokerage balances. 11. As of February 2003, includes positions with affiliated non-banking offices also 3. Data available beginning January 2001. included in memo line (44) below. 4. Financial claims on residents of the United States, other than long-term securities, held 12. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiby or through reporting banks for foreign customers. Effective February 2003, also includes aries consolidated in the quarterly Consolidated Reports of Condition filed with bank loans to U.S. residents in managed foreign offices of U.S. reporting institutions. regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official banks, consists principally of amounts owed to the head office or parent foreign office, and to institutions of foreign countries. foreign branches, agencies, or wholly owned subsidiaries of the head office or parent foreign 6. Principally bankers acceptances, commercial paper, negotiable time certificates of bank. Effective February 2003, includes amounts owed to affiliated foreign offices of U.S. deposit, and short-term agency securities. brokers and dealers. 7. Data available beginning January 2001. 8. Principally the International Bank for Reconstruction and Development, the Inter- American Development Bank, and the Asian Development Bank. Excludes "holdings of dollars" of the International Monetary Fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 International Statistics • July 2003 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued Payable in U.S. dollars Millions of dollars, end of period 2002 2003 IItteemm 22000000 22000011 22000022 Sept. Oct. Nov. Dec. Jan. Feb.' Mar.P AREA OR COUNTRY 45 Total, all foreigners 1,511,410 1,636,538 1,818,517 1,748,122 1,834,715 1,776362 1,818,517 l,783,978r 1,944,199 2,005,941 46 Foreign countries 1,498,867 1,625,708 1,805,048 1,736,410 1,821,646 1,764,141 1,805,048 l,769,354r 3,864,228 3,993,128 47 Europe 446,788 521,331 627,641 578,027 658,742 615,473 627,641 566,318' 712,294 729,862 48 Austria 2,692 2,922 2,473 3,081 3,053 2,442 2,473 22,,118866 2,326 2,125 49 Belgium13 33,399 6,557 8,611 8,389 7,420 8,032 8,611 88,,885588 9,637 11,846 50 Denmark 3,000 3,626 4,880 3,112 3,004 3,339 4,880 6,497 6,603 6,751 51 Finland 1,411 1,446 1,693 1,259 5,170 2,646 1,693 2,583 1,861 845 52 France 37,833 49,056 39,640 37,915 38,515 40,752 39,640 36,731 39,667 39,880 53 Germany 35,519 22,375 34,398 31,334 31,558 32,025 34,398 31,940 39,644 43,617 54 Greece 2,011 2,307 2,975 2,612 3,358 3,348 2,975 3,205 2,906 2,002 55 Italy 5,072 6,354 4,828 3,522 5,111 5,644 4,828 4,421 4,805 5,001 56 Luxembourg13 0 16,894 28,626 25,750 25,680 27,747 28,626 30,538 35,998 32,925 57 Netherlands 7,047 12,411 10,722 7,649 7,974 7,922 10,722 12,094' 16,224 14,454 58 Norway 2,305 3,727 18,867 17,747 18,895 14,677 18,867 17,723 10,936 14,167 59 Portugal 2,403 4,033 3,575 3,695 3,220 3,092 3,575 3,448 2,878 2,802 60 Russia 19,018 20,800 23,147 25,252 24,407 25,444 23,147 24,378 27,643 28,918 61 Spain 7,787 8,811 14,032 12,596 12,824 15,576 14,032 14,850 16,040 13,920 62 Sweden 6,497 3,375 4,656 4,137 4,857 3,859 4,656 3,767 4,004 4,611 63 Switzerland 74,635 66,403 131,506 105,384 182,150 141,208 131,506 105,350' 119,411 114,439 64 Turkey 7,548 7,474 12,131 12,790 11,226 11,749 12,131 12,754 11,971 10,995 65 United Kingdom 167,757 204,396 181,890 183,756 184,483 182,109 181,890 168,424' 278,691 300,173 66 Channel Islands and Isle of Man14 0 36,059 45,728 38,982 40,070 38,935 45,728 26,327 23,020 21,715 67 Yugoslavia15 276 309 301 280 316 332 301 353 337 332 68 Other Europe and other former U.S.S.R.16 30,578 41,996 52,962 48,785 45,451 44,595 52,962 49,891 57,692 58,344 69 Canada 30,982 27,251 24,959 24,946 26,570 24,278 24,959 27,880' 28,595 31,988 70 Latin America 120,041 118,025 107,129 104,134 106,883 103,991 107,129 106,090' 103,754 104,566 71 Argentina 19,451 10,704 11,218 11,223 12,091 11,644 11,218 11,252 10,539 10,654 72 Brazil 10,852 14,169 10,037 11,586 11,587 10,275 10,037 10,586 10,982 12,194 73 Chile 5,892 4,939 6,064 5,493 5,826 5,360 6,064 5,591 5,805 5,720 74 Colombia 4,542 4,695 4,158 4,509 3,847 4,644 4,158 4,147 4,884 4,453 75 Ecuador 2,112 2,390 2,299 2,368 2,149 2,252 2,299 2,397 2,238 2,369 76 Guatemala 1,601 1,882 1,381 1,535 1,500 1,386 1,381 1,436 1,474 1,398 77 Mexico 32,166 39,871 36,152 32,486 34,665 32,615 36,152 36,876' 34,724 35,972 78 Panama 4,240 3,610 3,924 3,210 3,564 3,668 3,924 3,969 4,068 3,649 79 Peru 1,427 1,359 1,363 1,369 1,300 1,360 1,363 1,364 1,360 1,330 80 Uruguay 3,003 3,172 2,807 2,613 2,583 2,604 2,807 2,681 2,457 2,726 81 Venezuela 24,730 24,974 21,884 21,350 21,657 22,311 21,884 19,951 19,585 18,332 82 Other Latin America" 10,025 6,260 5,842 6,392 6,114 5,872 5,842 5,840 5,638 5,769 83 Caribbean 573,337 194,814 193,363 198,136 190,737 179,736 193,363 206,210' 210,967 223,319 84 Bahamas 189,298 178,472 162,196 166,477 159,867 145,993 162,196 170,120' 165,915 175,738 85 Bermuda 9,636 10,539 23,823 24,692 23,158 25,765 23,823 27,426' 38,084 40,552 86 British West Indies18 367,197 0 0 0 0 0 0 0 0 0 87 Cayman Islands18 0 440,038 498,957 472,967 491,970 488,995 498,957 511,973' 519,671 545,764 88 Cuba 90 88 91 92 92 94 91 93 210 266 89 Jamaica 794 1,182 829 932 856 828 829 883 850 996 90 Netherlands Antilles 5,428 3,264 5,019 4,381 5,293 5,476 5,019 6,329 4,524 4,394 91 Trinidad and Tobago 894 1,269 1,405 1,562 1,471 1,580 1,405 1,359 1,384 1,373 92 Other Caribbean17 0 12,135 11,342 11,359 10,835 11,489 11,342 11,057 11,628 11,793 93 Asia 305,554 294,496 318,028 325,691 314,714 316,484 318,028 331188,,881188'' 331199,,331111 332266,,772244 China 94 Mainland 16,531 10,498 15,504 14,622 15,853 14,488 15,504 13,544 13,636 17,733 95 Taiwan 17,352 17,633 18,626 21,672 23,216 23,549 18,626 22,147' 23,857 19,919 96 Hong Kong 26,462 26,494 33,047 31,700 30,117 31,347 33,047 36,777' 35,710 32,965 97 India 4,530 3,708 7,953 7,502 7,196 7,507 7,953 8,074 8,833 8,672 98 Indonesia 8,514 12,383 14,110 13,098 12,316 12,916 14,110 12,858 12,414 11,943 99 Israel 8,053 7,870 7,185 11,619 9,105 8,882 7,185 9,593 10,152 11,741 100 Japan 150,415 155,314 161,331 171,821 162,043 163,981 161,331 162,110 166,400 176,338 101 Korea (South) 7,955 9,019 8,932 6,563 6,288 6,548 8,932 7,410 7,042 6,730 102 Philippines 2,316 1,772 1,793 2,064 1,589 1,462 1,793 1,364 1,524 1,764 103 Thailand 3,117 4,743 7,605 5,044 7,022 8,698 7,605 6,666 5,031 5,287 104 Middle Eastern oil-exporting countries19 23,763 20,035 16,364 15,993 14,352 11,633 16,364 15,176 12,191 9,923 105 Other 36,546 25,027 25,578 23,993 25,617 25,473 25,578 23,099' 22,521 23,709 106 10,824 11,365 12,240 11,115 11,905 11,989 12,240 11,177 14,368 12,975 107 Egypt 2,621 2,778 2,652 2,538 2,545 2,493 2,652 2,494 3,608 3,549 108 Morocco 139 274 306 329 335 254 306 259 346 280 109 South Africa 1,010 839 1,114 747 662 701 1,114 725 2,403 1,807 110 Congo (formerly Zaire) 4 4 2 86 0 2 2 3 5 3 111 Oil-exporting countries20 4,052 4,377 4,370 3,670 4,635 4,983 4,370 4,126 4,552 3,987 112 Other 2,998 3,093 3,796 3,745 3,728 3,556 3,796 3,570 3,454 3,349 113 Other countries 11,341 6,253 11,389 10,035 9,290 11,706 11,389 9,831' 11,526 9,573 114 Australia 10,070 5,599 9,333 7,919 7,549 9,340 9,333 8,237' 9,116 6,841 115 New Zealand21 0 242 1,796 1,592 1,257 2,120 1,796 1,320 1,938 2,175 116 All other 1,271 412 260 524 484 246 260 274 472 557 117 Nonmonetary international and regional organizations 12,543 10,830 13,469 11,712 13,069 12,221 13,469 14,624' 12,085 9,377 118 International22 11,270 9,331 11,283 9,140 11,296 10,247 11,283 12,859 10,217 77,,995555 119 Latin American regional23 740 480 508 394 561 478 508 372' 547 668866 120 Other regional24 533 935 1,611 2,108 1,134 1,423 1,611 1,299 1,216 633 13. Before January 2001, data for Belgium-Luxembourg were combined. 19. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 14. Before January 2001, these data were included in data reported for the United Emirates (Trucial States). Kingdom. 20. Comprises Algeria, Gabon, Libya, and Nigeria. 15. In February 2003, Yugoslavia changed its name to Serbia and Montenegro. Data for 21. Before January 2001, these data were included in "All other." other entities of the former Yugoslavia recognized as independent states by the United States 22. Principally the International Bank for Reconstruction and Development. Excludes are reported under "Other Europe." "holdings of dollars" of the International Monetary Fund. 16. Includes the Bank for International Settlements and the European Central Bank. 23. Principally the Inter-American Development Bank. 17. Before January 2001, data for "Other Latin America" and "Other Caribbean" were 24. 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." 18. Beginning January 2001, data for the Cayman Islands replaced data for the British West Indies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A49 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 2003 AArreeaa oorr ccoouunnttrryy 22000000 22000011 22000022 Sept. Oct. Nov. Dec. Jan. Feb/ Mar.P 1 Total, all foreigners 904,642 1,055,069 1,080,271 1,063,550 1,151,438 1,094,649 1,080,271 l,083,390r 1,138,344 1,218,505 2 Foreign countries 899,956 1,050,123 1,076,594 1,060,912 1,148,738 1,091,331 1,076,594 l,080,231r 2,269,978 2,428,950 3 Europe 378,115 461,176 484,047 469,979 542,565 489,943 484,047 446,105 522,959 543,191 4 Austria 2,926 4.981 3,603 4,336 3,876 4,224 3,603 4,334 5,608 4,538 Belgium2 5,399 6,391 6,044 4,814 5,590 5,784 6,044 6,273 5,139 7,971 6 Denmark 3,272 1,105 1,109 1,633 1,534 940 1,109 1,563 1,098 1,449 7 Finland 7,382 10.350 8.518 15,812 14,821 9,028 8,518 9,832 9,191 9,462 8 France 40,035 60.620 47.705 51,083 47,065 54,089 47,705 45,914 48,595 46,643 9 Germany 36,834 29,902 22,481 23,344 21,101 22,103 22,481 23,395 22,525 22,260 10 Greece 646 330 477 408 388 331 477 296 295 314 11 Italy 7,629 4,205 3,753 5,092 3,984 3,945 3,753 3,177 3,002 4,212 1? Luxembourg2 0 1.267 3,407 2,847 2,818 3,224 3,407 3,901 4,360 3,149 13 Netherlands 17,043 15,908 23,133 17,691 13,284 15,572 23,133 19,188 16,508 21,835 14 Norway 5,012 6,236 13,885 11,036 11,848 11,464 13,885 18,606 9,809 11,091 15 Portugal 1,382 1,603 2,226 2,006 2,000 2,134 2,226 2,356 2,342 1,929 16 Russia 517 594 877 801 858 787 877 1,025 728 1,107 17 Spain 2,603 3,260 5,371 4,651 3,159 4,752 5,371 4,154 3,452 2,577 18 Sweden 9,226 12,544 15,889 13,970 15,366 15,239 15,889 15,329 15,458 16,310 19 Switzerland 82,085 87,333 126,958 103,920 184,039 134,425 126,958 87,562 101,202 106,862 70 Turkey 3,059 2,124 2,112 2,474 2,622 2,532 2,112 2,021 2,069 2,280 21 United Kingdom 144,938 201,183 173,996 194,020 195,256 182,805 173,996 167,820 237,752 237,417 22 Channel Islands and Isle of Man3 0 4,478 17,457 5,926 7,281 11,304 17,457 24,393 27,767 34,994 23 Yugoslavia4 50 0 0 0 0 0 0 0 0 0 24 Other Europe and other former U.S.S.R.5 8,077 6,762 5,046 4,115 5,675 5,261 5,046 4,966 6,059 6,791 25 Canada 39,837 54,421 60,584 62,053 56,705 58,809 60,584 65,085r 66,132 57,831 76 Latin America 76,561 69,762 56,642 60,377 59,261 58,257 56,642 54,482 55,412 55,839 27 Argentina 11,519 10,763 6,783 7,663 7,608 7,253 6,783 6,663 6,615 6,149 7.8 Brazil 20,567 19,434 15,419 17,266 16,863 15,871 15,419 14,520 15,329 15,797 79 Chile 5,815 5,317 5,250 5,118 5,142 5,358 5,250 5,077 5,220 5,228 30 Colombia 4,370 3,602 2,614 3,078 2,834 2,758 2,614 2,406 2,710 2,654 31 Ecuador 635 495 457 467 451 451 457 439 428 456 3? Guatemala 1,244 1,495 892 925 907 889 892 896 831 970 33 Mexico 17,415 16,522 15,658 15,805 15,367 15,828 15,658 15,268 14,993 14,787 34 Panama 2,933 3,061 1.915 1,959 2,021 1,961 1,915 1,730 1,856 1,882 35 Peru 2,807 2,185 1,411 1,599 1,504 1,484 1,411 1,403 1,438 1,399 36 Uruguay 673 447 255 345 319 292 255 255 300 324 37 Venezuela 3,518 3,077 3,254 3,301 3,389 3,231 3,254 3,202 3,171 3,293 38 Other Latin America6 5,065 3,364 2,734 2,851 2,856 2,881 2,734 2,623 2,521 2,900 39 Caribbean 319,403 370,945 373,712 347,780 373,472 372,683 373,712 402,454r 381,119 434,240 40 Bahamas 114,090 101,034 95,584 91,171 96,151 93,839 95,584 97,456 86,313 92,186 41 Bermuda 9,260 7,900 9,902 11,304 12,196 9,902 9,902 12,511 17,031 23,339 42 British West Indies7 189,289 0 0 0 0 0 0 0 0 0 43 Cayman Islands7 0 250,376 257,075 234,435 252,908 257,645 257,075 281,641' 265,367 307,462 44 Cuba 0 0 0 0 0 0 0 0 0 0 45 Jamaica 355 418 321 463 429 393 321 304 349 381 46 Netherlands Antilles 5,801 6,729 6,690 6,194 7,427 6,744 6,690 6,445 7,657 6,750 47 Trinidad and Tobago 608 931 889 916 920 912 889 865 965 881 48 Other Caribbean6 0 3,557 3,251 3,297 3,441 3,248 3,251 3,232 3,436 3,240 49 Asia 77,829 85,882 93,455 112,441 109,359 104,181 93,455 103,096 101,450 114,172 China 50 Mainland 1,606 2,073 1,057 7,256 8,515 6,575 1,057 4,799 1,884 9,418 51 Taiwan 2,247 4,407 3,772 8,656 8,599 7,034 3,772 6,563 5,695 8,259 52 Hong Kong 6,669 9,995 7,258 8,481 5,778 6,849 7,258 6,490 5,652 4,987 53 India 2,178 1,348 1,235 1,258 999 921 1,235 1,128 1,170 960 54 Indonesia 1,914 1,752 1,238 1,426 1,390 1,360 1,238 1,223 1,059 1,023 55 Israel 2,729 4,396 4,660 5,067 4,710 3,836 4,660 5,182 3,328 3,110 56 Japan 34,974 34,125 47,600 45,058 42,252 47,071 47,600 48,818 56,265 58,391 57 Korea (South) 7,776 10,622 11,118 17,404 19,439 14,293 11,118 14,473 13,936 13,032 58 Philippines 1,784 2,587 2,137 2,134 1,843 1,555 2,137 2,424 1,533 2,040 59 Thailand 1,381 2,499 1,167 1,841 1,205 756 1,167 830 696 1,382 60 Middle Eastern oil-exporting countries8 9,346 7,882 7,952 8,619 9,253 8,251 7,952 8,004 6,405 7,110 61 Other 5,225 4,196 4,261 5,241 5,376 5,680 4,261 3,162 3,827 4,460 6? Africa 2,094 2,095 1,977 1,891 1,790 1,693 1,977 1,945 1,992 2,051 63 Egypt 201 416 487 332 326 428 487 511 544 558 64 Morocco 204 106 53 58 50 52 53 53 45 49 65 South Africa 309 710 617 576 554 435 617 545 577 565 66 Congo (formerly Zaire) 0 0 0 0 0 0 0 0 0 0 67 Oil-exporting countries9 471 167 222 303 233 225 222 240 224 257 68 Other 909 696 598 622 627 553 598 596 602 622 69 Other countries 6,117 5,842 6,177 6,391 5,586 5,765 6,177 7,064 5,925 7,151 70 Australia 5,868 5,455 5,566 5,589 5,088 5,303 5,566 6,212 5,403 6,350 71 New Zealand10 0 349 569 789 485 439 569 833 507 705 72 All other 249 38 42 13 13 23 42 19 15 96 73 Nonmonetary international and regional organizations'1 . . 4,686 4,946 3,677 2,638 2,700 3,318 3,677 3,159 3,355 4,030 1. Reporting banks include all types of depository institutions as well as bank/financial 5. Includes the Bank for International Settlements and the European Central Bank. holding companies and brokers and dealers. Effective February 2003, coverage is expanded to 6. Before January 2001, "Other Latin America" and "Other Caribbean" were reported as include claims of brokers and dealers on affiliated foreign offices and cross-border brokerage combined "Other Latin America and Caribbean." balances. 7. Beginning 2001, Cayman Islands replaced British West Indies in the data series. 2. Before January 2001, combined data reported for Belgium-Luxembourg. 8. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 3. Before January 2001, data included in United Kingdom. Emirates (Trucial States). 4. In February 2003, Yugoslavia changed its name to Serbia and Montenegro. Data for 9. Comprises Algeria, Gabon, Libya, and Nigeria. other entities of the former Yugoslavia recognized as independent states by the United States 10. Before January 2001, included in "All other." are reported under "Other Europe." 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 • July 2003 3.19 BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 2003 Sept. Oct. Nov. Dec. Jan. Feb.' Mar." 1 Total claims reported by banks 1,095,869 1,254,863 1,290,232 1,253,664 1,290,232 2 Banks' own claims on foreigners 904,642 1,055,069 1,080,271 1,063,550 1,151,438 1,094,649 1,080,271 l,083,390r 1,138,344 1,218,505 3 Foreign official institutions2 37,907 49,404 48,750 61,299 63,404 56,300 48,750 62,004' 39,747 51,034 4 Foreign banks3 725,380 849,491 868,631 827,225 917,047 874,469 868,631 854,787' 833,152 870,599 5 Other foreigners4 141,355 156,174 162,890 175,026 170,987 163,880 162,890 166,599 265,445 296,872 6 Claims on banks' domestic customers5 191,227 199,794 209,961 190,114 209,961 7 Non-negotiable deposits 100,352 93,565 79,512 86,862 79,512 8 Negotiable CDs 9 Other short-term negotiable instruments6 . . 78,147 90,412 124,159 90,919 124, i 59 10 Other claims 12,728 15,817 6,290 12,333 6,290 MEMO 11 Non-negotiable deposits7 353,593 371,168 12 Negotiable CDs7 2,221 2,621 13 Other short-term negotiable instruments7 17,775 21,296 14 Other claims7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 764,755 823,420 15 Own foreign offices8 630,137 749,124 787,198 732,318 822,172 775,527 787,198 768,492' 806,238 847,385 16 Loans collateralized by repurchase agreements9 137,979 161,585 166,568 166,176 156,299 161,585 185,804 245,798 287,043 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are 6. Primarily bankers acceptances and commercial paper. Prior to February 2003, also for the quarter ending with the month indicated. includes negotiable certificates of deposit. Reporting banks include all types of depository institutions as well as banks/financial 7. Data available beginning February 2003. holding companies and brokers and dealers. Effective February 2003, coverage is expanded to 8. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiinclude claims of brokers and dealers on affiliated foreign offices and cross-border balances, aries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory dealers. agencies. For agencies, branches, and minority-owned subsidiaries of foreign banks, consists 2. Prior to February 2003, reflects claims on all foreign public borrowers. principally of amounts due from the head office or parent foreign bank, and from foreign 3. Includes positions with affiliated banking offices also included in memo line (15) below. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. 4. As of February 2003, includes positions with affiliated non-banking offices also included Effective February 2003, includes amounts due from affiliated foreign offices of U.S. brokers in memo line (15) below. and dealers. 5. Assets held by reporting banks in the accounts of their domestic customers. Effective 9. Data available beginning January 2001. March 2003, includes balances in off-shore sweep accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A51 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999999 22000000 22000011 Mar. June Sept. Dec/ 1 Total 267,082 274,009 305,326 308,286 317,207 330,807 293,096 By borrower 2 Maturity of one year or less 187,894 186,103 200,240 214,373 236,219 250,076 212,972 3 Foreign public borrowers 22,811 21,399 27,501 31,875 33,061 42,665 31,569 4 All other foreigners 165,083 164,704 172,739 182,498 203,158 207,411 181,403 5 Maturity of more than one year 79,188 87,906 105,086 93,913 80,988 80,731 80,124 6 Foreign public borrowers 12,013 15,838 21,324 22,945 17,576 18,192 16,948 7 All other foreigners 67,175 72,068 83,762 70,968 63,412 62,539 63,176 By area Maturity of one year or less X Europe 80,842 142,464 83,233 85,848 88,641 92,111 83,172 9 Canada 7,859 8,323 10,072 8,227 8,928 7,731 6,933 10 Latin America and Caribbean 69,498 151,840 70,648 82,258 98,152 96,796 87,143 11 Asia 21,802 43,371 29,693 30,543 34,710 48,210 30,323 12 Africa 1,122 2,263 1,104 1,124 918 896 726 13 All other3 6,771 11,717 5,490 6,373 4,870 4,332 4,675 Maturity of more than one year 14 Europe 22,951 57,770 34,230 37,372 33,159 33,587 33,543 15 Canada 3,192 3,174 3,633 3,129 2,619 2,772 2,990 16 Latin America and Caribbean 39,051 82,684 47,382 35,537 32,142 31,376 32,172 17 Asia 11,257 19,536 15,190 13,563 8,688 9,128 6,920 18 Africa 1,065 1,567 769 720 907 812 845 19 Allother3 1,672 5,954 3,882 3,592 3,473 3,056 3,654 Note. Owing to changes in reporting requirements, this table will be discontinued in the 2. Maturity is time remaining until maturity, third quarter of 2003 after publication of the end-December 2003 data. 3. Includes nonmonetary international and regional organizations. 1. Reporting banks include 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

A52 International Statistics • July 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 11999999 22000000 22000011 Sept. Dec. Mar. June Sept. Dec.P 1 Total 53,020 73,904 66,679 53,476 66,679 74,867 70,638 68,644 67,304 2 Payable in dollars 37,605 48,931 42,925 35,306 42,925 47,062 48,103 44,815 44,557 3 Payable in foreign currencies 15,415 24,973 23,754 18,170 23,754 27,805 22,535 23,829 22,747 By type 4 Financial liabilities 27,980 47,419 41,034 27,502 41,034 46,408 42,826 41,311 39,561 5 Payable in dollars 13,883 25,246 18,763 11,415 18,763 20,367 21,892 18,775 18,674 6 Payable in foreign currencies 14,097 22,173 22,271 16,087 22,271 26,041 20,934 22,536 20,887 7 Commercial liabilities 25,040 26,485 25,645 25,974 25,645 28,459 27,812 27,333 27,743 8 Trade payables 12,834 14,293 11,781 11,690 11,781 14,872 13,959 13,558 14,339 y Advance receipts and other liabilities 12,206 12,192 13,864 14,284 13,864 13,587 13,853 13,775 13,404 10 Payable in dollars 23,722 23,685 24,162 23,891 24,162 26,695 26,211 26,040 25,883 n Payable in foreign currencies 1,318 2,800 1,483 2,083 1,483 1,764 1,601 1,293 1,860 By area or country Financial liabilities 12 Europe 23,241 34,172 31,806 22,083 31,806 39,392 35,011 34,817 34,363 13 Belgium and Luxembourg 31 147 154 76 154 119 120 232 144 14 France 1,659 1,480 2.841 1,538 2,841 3,531 4,071 3,517 5,243 15 Germany 1,974 2,168 2,344 1,994 2,344 2,982 2,622 2,865 2,923 16 Netherlands 1,996 2,016 1,954 1,998 1,954 1,951 1,939 1,918 1,829 17 Switzerland 147 104 94 92 94 84 61 61 61 18 United Kingdom 16,521 26,362 22,852 14,819 22,852 28,630 24,188 24,175 22,422 19 Canada 284 411 955 436 955 1,067 1,078 583 591 20 Latin America and Caribbean 892 4,125 2,858 414 2,858 1,547 1,832 1,088 1,504 21 Bahamas 1 6 157 5 157 5 5 0 23 22 Bermuda 5 1,739 960 47 960 836 626 588 990 23 Brazil 126 148 35 22 35 35 38 65 65 24 British West Indies 492 406 1,627 243 1,627 612 1,000 377 365 25 Mexico 25 26 36 24 36 27 25 26 31 26 Venezuela 0 2 2 3 2 1 5 1 1 27 Asia 3,437 7,965 5,042 3,869 5,042 4,010 4,491 4,442 2,916 28 Japan 3,142 6,216 3,269 3,442 3,269 3,299 2,387 2,447 1,832 29 Middle Eastern oil-exporting countries1 4 12 10 9 10 15 14 16 14 30 Africa 28 52 53 28 53 122 120 128 131 31 Oil-exporting countries2 0 0 5 5 5 91 91 91 91 32 All other3 98 694 320 672 320 270 294 253 56 Commercial liabilities 33 Europe 9,262 9,629 9,219 8,836 9,219 8,384 8,468 8,745 8,295 34 Belgium and Luxembourg 140 293 99 160 99 105 94 134 141 3b France 672 979 734 891 734 713 827 718 777 36 Germany 1,131 1,047 905 955 905 584 570 855 807 37 Netherlands 507 300 1,163 343 1,163 463 765 1,186 590 38 Switzerland 626 502 790 683 790 637 749 592 433 39 United Kingdom 3,071 2,847 2,279 2,296 2,279 2,747 2,551 2,317 2,649 40 Canada 1,775 1,933 1,622 1,557 1,622 1,798 2,027 1,570 1,384 41 Latin America and Caribbean 2,310 2,381 2,727 2,878 2,727 3,454 2,744 2,850 3,013 42 Bahamas 22 31 52 44 52 23 12 14 51 43 Bermuda 152 281 591 570 591 433 422 468 538 44 Brazil 145 114 290 312 290 277 320 290 253 45 British West Indies 48 76 45 28 45 67 46 47 36 46 Mexico 887 841 899 883 899 1,457 958 997 1,110 47 Venezuela 305 284 166 242 166 281 204 327 177 48 Asia 9,886 10,983 10,517 11,096 10,517 12,969 12,693 12,274 13,126 49 Japan 2,609 2,757 2,581 2,408 2,581 4,281 4,143 4,031 4,292 50 Middle Eastern oil-exporting countries' 2,493 2,796 2,598 3,002 2,598 3,093 3,209 3,624 3,592 51 Africa 950 948 836 938 836 976 916 876 905 52 Oil-exporting countries2 499 483 436 471 436 454 349 445 405 53 Other3 881 611 724 669 724 878 964 1,018 1,020 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 11999999 22000000 22000011 Sept. Dec. Mar. June Sept. Dec.P 1 Total 76,642 90,157 113,082 93,988 113,082 115,764 116,148 112,099 102,385 2 Payable in dollars 69,170 79,558 103,864 83,204 103,864 106,192 107,106 103,877 91,173 3 Payable in foreign currencies 7,472 10,599 9,218 10,784 9,218 9,572 9,042 8,222 11,212 By type 4 Financial claims 40,231 53,031 81,287 60,015 81,287 85,381 87,324 84,033 71,140 5 Deposits 18,566 23,374 29,801 22,391 29,801 41,813 42,136 38,074 27,076 6 Payable in dollars 16,373 21,015 27,850 19,888 27,850 40,002 40,323 36,382 24,689 7 Payable in foreign currencies 2,193 2,359 1,951 2,503 1,951 1,811 1,813 1,692 2,387 X Other financial claims 21,665 29,657 51,486 37,624 51,486 43,568 45,188 45,959 44,064 9 Payable in dollars 18,593 25,142 46,621 32,076 46,621 39,553 41,875 42,734 39,935 10 Payable in foreign currencies 3,072 4,515 4,865 5,548 4,865 4,015 3,313 3,225 4,129 11 Commercial claims 36,411 37,126 31,795 33,973 31,795 30,383 28,824 28,066 31,245 12 Trade receivables 32,602 33,104 27,513 29,240 27,513 25,618 24,263 23,491 26,453 13 Advance payments and other claims 3,809 4,022 4,282 4,733 4,282 4,765 4,561 4,575 4,792 14 Payable in dollars 34,204 33,401 29,393 31,240 29,393 26,637 24,908 24,761 26,549 15 Payable in foreign currencies 2,207 3,725 2,402 2,733 2,402 3,746 3,916 3,305 4,696 By area or country Financial claims 16 Europe 13,023 23,136 26,118 23,069 26,118 35,933 36,863 32,007 28,822 17 Belgium and Luxembourg 529 296 625 372 625 751 797 656 722 IX France 967 1,206 1,450 1,682 1,450 3,489 3,921 3,854 3,247 19 Germany 504 848 1,068 1,112 1,068 4,114 3,972 4,292 4,244 20 Netherlands 1,229 1,396 2,138 954 2,138 3,253 3,995 4,024 3,648 71 Switzerland 643 699 589 665 589 308 1,010 1,135 383 22 United Kingdom 7,561 15,900 16,510 15,670 16,510 17,910 16,037 11,351 10,503 23 Canada 2,553 4,576 6,193 4,254 6,193 5,471 5,537 5,485 5,013 24 Latin America and Caribbean 18,206 19,317 41,201 26,099 41,201 35,001 37,511 38,822 29,401 25 Bahamas 1,593 1,353 976 649 976 1,197 1,332 715 976 26 Bermuda 11 19 918 80 918 611 704 1,157 724 27 Brazil 1,476 1,827 2,127 2,065 2,127 1,892 2,036 2,226 2,310 28 British West Indies 12,099 12,596 32,965 19,234 32,965 27,350 29,591 30,859 21,366 29 Mexico 1,798 2,448 3,075 2,910 3,075 2,777 2,823 2,871 2,917 30 Venezuela 48 87 83 80 83 79 60 71 99 31 Asia 5,457 4,697 6,430 5,274 6,430 6,489 5,826 6,121 5,483 32 Japan 3,262 1,631 1,604 1,761 1,604 2,009 1,093 1,421 1,212 33 Middle Eastern oil-exporting countries1 23 80 135 100 135 74 73 83 79 34 Africa 286 411 414 428 414 390 431 379 394 35 Oil-exporting countries2 15 57 49 83 49 51 64 29 25 36 Allother3 706 894 931 891 931 2,097 1,156 1,219 2,027 Commercial claims 37 Europe 16,389 15,938 14,022 14,364 14,022 12,708 11,861 12,000 14,225 38 Belgium and Luxembourg 316 452 268 353 268 272 207 254 249 39 France 2,236 3,095 2,921 3,061 2,921 2,883 2,828 2,972 3,165 40 Germany 1,960 1,982 1,658 1,973 1,658 1,198 1,163 1,158 1,207 41 Netherlands 1,429 1,729 529 843 529 415 379 409 1,490 42 Switzerland 610 763 611 514 611 436 472 404 506 43 United Kingdom 5,827 4,502 3,833 3,564 3,833 3,579 3,387 3,236 3,750 44 Canada 2,757 3,502 2,818 3,076 2,818 2,760 2,752 2,623 2,794 45 Latin America and Caribbean 5,959 5,851 4,859 5,567 4,859 4,912 4,530 4,324 4,357 46 Bahamas 20 37 42 35 42 42 28 35 31 47 Bermuda 390 376 369 526 369 422 214 270 287 48 Brazil 905 957 954 1,176 954 837 829 862 752 49 British West Indies 181 137 95 124 95 73 26 12 19 50 Mexico 1,678 1,507 1,391 1,427 1,391 1,225 1,283 1,184 1,261 51 Venezuela 439 328 288 301 288 312 316 340 291 52 Asia 9,165 9,630 7,849 8,697 7,849 7,513 7,309 6,778 7,339 53 Japan 2,074 2,796 2,006 2,437 2,006 1,975 2,064 2,083 2,352 54 Middle Eastern oil-exporting countries' 1,573 1,016 833 892 833 653 885 808 803 55 Africa 631 672 645 838 645 630 605 637 584 56 Oil-exporting countries2 171 180 88 170 88 109 94 107 95 57 Other3 1,537 1,533 1,602 1,431 1,602 1,860 1,767 1,704 1,946 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 • July 2003 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2003 2002 2003 TTrraannssaaccttiioonn,, aanndd aarreeaa oorr ccoouunnttrryy 22000011 22000022 J M an ar .- . Sept. Oct.' Nov.r Dec.' Jan.' Feb/ Mar.P U.S. corporate securities STOCKS 1 Foreign purchases 3,051,332 3,202,907 654,735 206,729 297,181 264,359 216,659 216,695 201,372 236,668 2 Foreign sales 2,934,942 3,153,465 656,766 213,195 293,565 257,879 214,243 219,477 203,461 233,828 3 Net purchases, or sales (-) 116,390 49,442 -2,031 -6,466' 3,616 6,480 2,416 -2,782 -2,089 2,840 4 Foreign countries 116,187 49,495 -1,990 -6,451' 3,610 6,473 2,400 -2,759 -2,091 2,860 5 Europe 88,099 33,006 1,071 -5,154' 2,187 4,407 4,883 -2,187 1,898 1,360 6 France 5,914 2,127 2,292 -936' 982 -323 676 206 270 1,816 7 Germany 8,415 -127' -911 -1,175' 276 31 518 -64 -67 -780 8 Netherlands 10,919 4,535 942 4 760 629 792 366 -75 651 9 Switzerland 3,456 2,656 -1,736 -949' -176 1,581 909 -724 -990 -22 10 United Kingdom 38,493 15,173 -1,081 -1,232' 1,403 2,062 784 -2,761 1,938 -258 11 Channel Islands and Isle of Man1 -698r -255' -61 -21' 94 23 -22 -2 -17 -42 12 Canada 10,984 7,433 2,262 -772' 342 47 746 1,480 -1,594 2,376 13 Latin America and Caribbean -5,154' -15,436' -6,888 -2,903' -2,874 2,692 -2,348 -3,089 -2,261 -1,538 14 Middle East2 1,789 -1,293' -144 46 -90 -232 71 -72 -21 -51 15 Other Asia 20,726 22,682 4,539 2,012 3,985 -775 -894 1,288 2,773 478 16 Japan 6,788 12,337 1,509 238 -7 -961 -1,131 561 1,008 -60 17 Africa -366' -72' 0 36 -22 -16 -20 38 -9 -29 18 Other countries 109 3,175 -2,830 284 82 350 -38 -217 -2,877 264 19 Nonmonetary international and regional organizations 203 -53' -41 -15' 6 7 16 -23 2 -20 BONDS3 20 Foreign purchases 1,942,690 2,549,825 743,554 208,602 217,402 259,305 207,380 228,445 207,458 307,651 21 Foreign sales 1,556,745 2,172,047 628,612 183,671 185,366 218,351 178,510 180,749 184,557 263,306 22 Net purchases, or sales (-) 385,945 377,778 114,942 24,931 32,036 40,954 28,870 47,696 22,901 44345 23 Foreign countries 385,379 377,515 115,320 25,022 31,632 40,914 28,684 47,840 23,066 44,414 24 Europe 195,412 167,572 65,006 11,758 16,532 17,116 10,526 27,942 16,318 20,746 25 France 5,028 3,771 1,297 252 1,089 383 -434 1,092 63 142 26 Germany 12,362 5,149 1,364 -390 -71 558 1,249 545 999 -180 27 Netherlands 1,538 -406' 727 -35' 149 -61 -19 118 611 -2 28 Switzerland 5,721 8,521 3,047 356 355 743 304 1,154 859 1,034 29 United Kingdom 152,772 109,836 37,558 7,374 9,852 8,812 6,768 15,960 6,826 14,772 30 Channel Islands and Isle of Man1 2,000 11,173 11,091 1,342 2,239 4,917 959 5,420 1,533 4,138 31 Canada 4,595 -1,037' 470 -383' 540 -757 -2,180 -892 193 1,169 32 Latin America and Caribbean 77,019 82,837 10,402 3,464 4,339 5,471 7,379 6,564 -6,379 10,217 33 Middle East2 2,337 2,315 670 40 196 387 -120 591 42 37 34 Other Asia 106,400 121,470 37,398 9,602 10,126 18,374 12,944 13,593 12,767 11,038 35 Japan 33,687 48,482 10,047 6,135 5,505 10,456 4,863 4,025 4,566 1,456 36 Africa 760 860 912 171 -18 56 28 53 80 779 37 Other countries -1,144' 3,498 462 370 -83 267 107 -11 45 428 38 Nonmonetary international and regional organizations 566 263 -378 -91' 404 40 186 -144 -165 -69 Foreign securities 39 Stocks, net purchases, or sales (-) -50,113' -1,629' -16,732 765 -6,156 -981 -2,751 -6,893 -4,474 -5,365 40 Foreign purchases 1,397,664 1,260,278 269,407 87,083 100,763 101,821 81,804 94,622 83,683 91,102 41 Foreign sales 1,447,777 1,261,907 286,139 86,318 106,919 102,802 84,555 101,515 88,157 96,467 42 Bonds, net purchases, or sales (-) 30,502 28,406 9,893 1,064 6,920 2,269 -5,157 -1,915 4,493 7,315 43 Foreign purchases 1,160,102 1,377,020 430,243 126,078 123,139 137,931 117,917 140,513 122,893 166,837 44 Foreign sales 1,129,600 1,348,614 420,350 125,014 116,219 135,662 123,074 142,428 118,400 159,522 45 Net purchases, or sales (-), of stocks and bonds -19,611' 26,777 -6,839 1,829 764 1,288 -7,908 -8,808 19 1,950 46 Foreign countries -19,024' 26,814 -6,937 1,851 711 1,300 -7,922 -8,829 -77 1,969 47 Europe -12,108' 15,407 —414 1,393 674 6,105 -9,095 -5,090 -1,592 6,268 48 Canada 2,943 4,849 4,191 -583' -1,281 -167 712 3,890 603 -302 49 Latin America and Caribbean 4,315 4,562 -10,405 -521' -32 518 1,045 -7,886 862 -3,381 50 Asia -11,869' 1,591 -1,038 1,018 1,694 -5,256 -987 -261 194 -971 51 Japan -20,116' -9,119' -1,123 -862' 13 -6,617 -2,039 -1,233 -1,447 1,557 52 Africa -558' -379' -62 -39' 104 100 40 -55 -34 27 53 Other countries -1,747' 784 791 583 ^148 0 363 573 -110 328 54 Nonmonetary international and regional organizations -587' -37' 98 -22' 53 -12 14 21 96 -19 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 US. 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 2003 2002 2003 AArreeaa oorr ccoouunnttrryy 22000011 22000022 Jan. - Ma' Sept. Oct.' Nov.' Dec.' Jan.' Feb.' Mar.p 1 Total estimated 18,514 121,698 22,598 21,946 6,742 21,097 14,290 1,751 -4,703 25,550 2 Foreign countries 19,200 119,687 22,510 21,934 5,994 21,177 13,961 1,368 -t,459 25,601 3 Europe -20,604' 44,169 -6,821 5,666 838 8,847 3,186 890 -7,520 -191 4 Belgium2 -598' 2,046 -730 -138' -210 513 -193 3,371 -1,379 -2,722 5 Germany -1,668' -3,910 -1,710 -386' —469 1,658 1,610 -1,183 -257 -270 6 Luxembourg2 462 -1,609' 516 -265' 61 -139 -201 75 358 83 7 Netherlands -6,728' -17,020 -1,766 957 -2,856 1,427 3,261 -4,085 1,360 959 8 Sweden -1,190 2,923 1,134 235 -203 1,652 902 422 190 522 9 Switzerland 1,412 -508' -69 1,150 -1,727 2,389 -2,543 -86 -1,050 1,067 10 United Kingdom -7,279' 60,995 1,657 6,665 5,071 -45 -2,739 1,313 -2,912 3,256 11 Channel Islands and Isle of Man3 -179' 714 35 -43' -116 -299 -84 -11 9 37 12 Other Europe and former U.S.S.R -4,836' 538 -5,888 -2,509' 1,287 1,691 3,173 1,074 -3,839 -3,123 13 Canada -1,634' -5,198' -787 -339' -2,449 3,165 1,028 -698 -1,871 1,782 14 Latin America and Caribbean 4,272 21,116 12,672 7,753 7,219 -1,758 6,074 -1,891 3,384 11,179 15 Venezuela 290 -59' 140 -79' 5 -1 -73 20 97 23 16 Other Latin America and Caribbean 14,726 21,955 13,549 5,516 4,485 319 1,652 2,676 2,323 8,550 17 Netherlands Antilles -10,744' -780 -1,017 2,316 2,729 -2,076 4,495 -4,587 964 2,606 18 Asia 36,332 55,850 17,163 8,971 -54 10,607 3,626 2,630 2,287 12,246 19 Japan 16,114 30,730 7,871 12,569 -1,313 2,120 2,731 3,512 5,580 -1,221 20 Africa -880 841 25 -93' 12 -17 90 84 -43 -16 21 Other 1,714 2,909 258 -24' 428 333 -43 353 -696 601 22 Nonmonetary international and regional organizations -686' 2,011 88 12 748 -80 329 383 -244 -51 23 International -290 1,642 -69 -45' 329 314 164 170 -130 -109 24 Latin American Caribbean regional 41 -3' -81 29 4 -19 0 -15 -38 -28 MEMO 25 Foreign countries 19,200 119,687 22,510 21,934 5,994 21,177 13,961 1,368 -4,459 25,601 26 Official institutions 3,474 15,131 2,268 -3,511' -553 16,577 6,708 -755 2,541 482 27 Other foreign 15,726 104,556 20,242 25,445 6,547 4,600 7,253 2,123 -7,000 25,119 Oil-exporting countries ?8 Middle East4 865 -3,918' -3,615 -412' 913 -139 -3,815 509 -4,252 128 29 Africa5 -2' 29 0 -1' 0 1 55 0 0 0 1. Official and private transactions in marketable U.S. Treasury securities having an 3. Before January 2001, these data were included in the data reported for the United original maturity of more than one year. Data are based on monthly transactions reports. Kingdom. Excludes nonmarketable US. 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 • July 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 2003 Dec. Jan. Feb. Mar. Apr. May Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 58.15 51.69 54.37 56.24 58.29 59.56 60.15 61.00 64.68 2 Brazil/real 1.8301 2.3527 2.9213 3.6268 3.4375 3.5955 3.4567 3.1090 2.9517 .3 Canada/dollar 1.4855 1.5487 1.5704 1.5592 1.5414 1.5121 1.4761 1.4582 1.3840 4 China, P.R./yuan 8.2784 8.2770 8.2770 8.2777 8.2775 8.2780 8.2773 8.2772 8.2769 5 Denmark/krone 8.0953 8.3323 7.8862 7.2874 6.9980 6.8920 6.8807 6.8381 6.4268 6 European Monetary Union/euro3 0.9232 0.8952 0.9454 1.0194 1.0622 1.0785 1.0797 1.0862 1.1556 7 Greece/drachma 365.92 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 Hong Kong/dollar 7.7924 7.7997 7.7997 7.7988 7.7994 7.7995 7.7991 7.7996 7.7991 9 India/rupee 45.00 47.22 48.63 48.15 47.96 47.75 47.68 47.39 47.11 10 Japan/yen 107.80 121.57 125.22 121.89 118.81 119.34 118.69 119.90 117.37 11 Malaysia/ringgit 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 12 Mexico/peso 9.459 9.337 9.663 10.225 10.622 10.945 10.905 10.589 10.253 13 New Zealand/dollar2 45.68 42.02 46.45 51.08 53.98 55.39 55.37 55.18 57.56 14 Norway/krone 8.8131 8.9964 7.9839 7.1557 6.9138 7.0004 7.2760 7.2032 6.8145 15 Singapore/dollar 1.7250 1.7930 1.7908 1.7532 1.7363 1.7451 1.7551 1.7771 1.7357 16 South Africa/rand 6.9468 8.6093 10.5176 8.9479 8.6949 8.2858 8.0506 7.6634 7.6604 17 South Korea/won 1,130.90 1,292.01 1,250.31 1,206.61 1,176.45 1,190.37 1,237.20 1,231.10 1,201.23 18 Sri Lanka/rupee 76.964 89.602 95.773 96.705 96.813 96.880 96.943 97.004 97.231 19 Sweden/krona 9.1735 10.3425 9.7233 8.9303 8.6368 8.4837 8.5440 8.4314 7.9213 20 Switzerland/franc 1.6904 1.6891 1.5567 1.4388 1.3765 1.3602 1.3614 1.3783 1.3111 21 Taiwan/dollar 31.260 33.824 34.536 34.799 34.571 34.734 34.721 34.824 34.697 21 Thailand/baht 40.210 44.532 43.019 43.318 42.773 42.897 42.783 42.929 42.217 23 United Kingdom/pound2 151.56 143.96 150.25 158.63 161.75 160.79 158.25 157.39 162.24 24 Venezuela/bolivar 680.52 724.10 1,161.19 1,328.29 1,714.45 1,736.21 1,600.00 1,600.00 1,600.00 Indexes4 NOMINAL 25 Broad (January 1997-100)5 119.68 126.08 127.19 125.70 124.21 124.12 123.56 122.54 118.54 26 Major currencies (March 1973=100)6 98.31 104.28 102.85 98.62 96.03 95.02 94.28 93.98 89.67 27 Other important trading partners (January 1997-100)7 130.34 136.36 141.42 144.87 145.72 147.35 147.26 145.15 142.75 REAL 28 Broad (March 1973=100)5 104.47r 110.50r 110.88r 108.90r 107.69r 107.91' 107.71' 106.61' 103.00 29 Major currencies (March 1973-100)6 103.29r 110.73r 109.36r 104.60r 102.13' 101.47' 100.83' 100.34' 95.49 30 Other important trading partners (March 1973-100)7 114.81 119.48 122.30' 123.90r 124.44 125.97' 126.42' 124.32' 122.32 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 4. Starting with the March 2003 Bulletin, revised index values resulting from the periodic table also appear in the Board's G.5 (405) monthly statistical release. For ordering address, revision of data that underlie the calculated trade weights are reported. For more information see inside front cover. on the indexes of the foreign exchange value of the dollar, see Federal Reserve Bulletin, vol. 2. U.S. cents per currency unit. 84 (October 1998), pp. 811-818. 3. The euro is reported in place of the individual euro area currencies. By convention, the 5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies rate is reported in U.S. dollars per euro. The bilateral currency rates can be derived from the of a broad group of U.S. trading partners. The weight for each currency is computed as an euro rate by using the fixed conversion rates (in currencies per euro) as shown below: average of U.S. bilateral import shares from and export shares to the issuing country and of a measure of the importance to U.S. exporters of that country's trade in third country markets. Euro equals 6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 13.7603 Austrian schillings 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 March 31,2002 August 2002 A58 June 30, 2002 November 2002 A58 September 30, 2002 February 2003 A58 December 31, 2002 May 2003 A58 Terms of lending at commercial banks May 2002 August 2002 A60 August 2002 November 2002 A60 November 2002 February 2003 A60 February 2003 May 2003 A60 Assets and liabilities of U.S. branches and agencies of foreign banks March 31,2002 August 2002 A66 June 30, 2002 November 2002 A66 September 30, 2002 February 2003 A66 December 31, 2002 May 2003 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 1988-2000 September 2001 A64 1989-2001 September 2002 A58 Disposition of applications for private mortgage insurance 1997-2000 September 2001 A73 1998-2001 September 2002 A67 Small loans to businesses and farms 1996-2000 September 2001 A76 1996-2001 September 2002 A70 Community development lending reported under the Community Reinvestment Act 2000 September 2001 A79 2001 September 2002 A73 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 June 2003 A66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

103 Federal Reserve Bulletin • July 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 National Mortgage Association, 28, 32, 33 Assets and liabilities (See also Foreigners) Federal Reserve Banks Commercial banks, 15-21 Condition statement, 10 Domestic finance companies, 30, 31 Discount rates (See Interest rates) Federal Reserve Banks, 10 US. government securities held, 5, 10, 11, 25 Foreign-related institutions, 20 Federal Reserve credit, 5, 6, 10, 12 Automobiles Federal Reserve notes, 10 Consumer credit, 34 Federally sponsored credit agencies, 28 Production, 42, 43 Finance companies 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 Rates, 23 Flow of funds, 35-39 Foreign currency operations, 10 Business loans (See Commercial and industrial loans) Foreign deposits in U.S. banks, 5 Foreign exchange rates, 56 CAPACITY utilization, 40, 41 Foreign-related institutions, 20 Capital accounts Foreigners Commercial banks, 15-21 Claims on, 46, 49-51, 53 Federal Reserve Banks, 10 Liabilities to, 45^18, 52, 54, 55 Certificates of deposit, 23 Commercial and industrial loans Commercial banks, 15-21 GOLD Weekly reporting banks, 17, 18 Certificate account, 10 Commercial banks Stock, 5, 45 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 Production, 42, 43 FARM mortgage loans, 33 Margin requirements, 24 Federal agency obligations, 5, 9-11, 26, 27 Member banks, reserve requirements, 8 Federal credit agencies, 28 Mining production, 43 Federal finance Monetary and credit aggregates, 4, 12 Debt subject to statutory limitation, and types and ownership of Money and capital market rates, 23 gross debt, 25 Money stock measures and components, 4, 13 Federal Financing Bank, 28 Mortgages (See Real estate loans) Federal funds, 23 Mutual funds, 13, 30 Federal Home Loan Banks, 28 Federal Home Loan Mortgage Corporation, 28, 32, 33 Federal Housing Administration, 28, 32, 33 Mutual savings banks (See Thrift institutions) Federal Land Banks, 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 U.S. 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

105 Federal Reserve Bulletin • July 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 MICHELLE A. SMITH, Assistant to the Board DAVID H. HOWARD, Deputy Director WINTHROP P. HAMBLEY, Deputy Congressional Liaison THOMAS A. CONNORS, Associate Director JOHN LOPEZ, Special Assistant to the Board DALE W. HENDERSON, Senior Adviser ROSANNA PIANALTO-CAMERON, Special Assistant to the Board RICHARD T. FREEMAN, Deputy Associate Director DAVID W. SKIDMORE, Special Assistant to the Board STEVEN B. KAMIN, Deputy Associate Director WILLIAM L. HELKIE, Senior Adviser LEGAL DIVISION JON W. FAUST, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel JOSEPH E. GAGNON, Assistant Director SCOTT G. ALVAREZ, Associate General Counsel WILLENE A. JOHNSON, Adviser RICHARD M. ASHTON, Associate General Counsel MICHAEL P. LEAHY, Assistant Director STEPHANIE MARTIN, Associate General Counsel D. NATHAN SHEETS, Assistant Director KATHLEEN M. O'DAY, Associate General Counsel RALPH W. TRYON, Assistant Director ANN E. MISBACK, Assistant General Counsel STEPHEN L. SICILIANO, Assistant General Counsel DIVISION OF RESEARCH AND STATISTICS KATHERINE H. WHEATLEY, Assistant General Counsel DAVID J. STOCKTON, Director CARY K. WILLIAMS, Assistant General Counsel EDWARD C. ETTIN, Deputy Director DAVID W. WILCOX, Deputy Director OFFICE OF THE SECRETARY MYRON L. KWAST, Associate Director JENNIFER J. JOHNSON, Secretary STEPHEN D. OLINER, Associate Director ROBERT DEV. FRIERSON, Deputy Secretary PATRICK M. PARKINSON, Associate Director MARGARET M. SHANKS, Assistant Secretary LAWRENCE SLIFMAN, Associate Director CHARLES S. STRUCKMEYER, Associate Director DIVISION OF BANKING SUPERVISION JOYCE K. ZICKLER, Deputy Associate Director AND REGULATION J. NELLIE LIANG, Assistant Director RICHARD SPILLENKOTHEN, Director S. WAYNE PASSMORE, Assistant Director STEPHEN C. SCHEMERING, Deputy Director DAVID L. REIFSCHNEIDER, Assistant Director HERBERT A. BIERN, Senior Associate Director JANICE SHACK-MARQUEZ, Assistant Director ROGER T. COLE, Senior Associate Director WILLIAM L. WASCHER III, Assistant Director GERALD A. EDWARDS, JR., Associate Director MARY M. WEST, Assistant Director STEPHEN M. HOFFMAN, JR., Associate Director ALICE PATRICIA WHITE, Assistant Director JAMES V. HOUPT, Associate Director GLENN B. CANNER, Senior Adviser JACK P. JENNINGS, Associate Director DAVID S. JONES, Senior Adviser MICHAEL G. MARTINSON, Associate Director THOMAS D. SIMPSON, Senior Adviser MOLLY S. WASSOM, Associate Director HOWARD A. AMER, Deputy Associate Director DIVISION OF MONETARY AFFAIRS NORAH M. BARGER, Deputy Associate Director BETSY CROSS, Deputy Associate Director VINCENT R. REINHART, Director DAVID E. LINDSEY, Deputy Director DEBORAH P. BAILEY, Assistant Director BARBARA J. BOUCHARD, Assistant Director BRIAN F. MADIGAN, Deputy Director ANGELA DESMOND, Assistant Director JAMES A. CLOUSE, Deputy Associate Director JAMES A. EMBERSIT, Assistant Director WILLIAM C. WHITESELL, Deputy Associate Director CHARLES H. HOLM, Assistant Director CHERYL L. EDWARDS, Assistant Director WILLIAM G. SPANIEL, Assistant Director WILLIAM B. ENGLISH, Assistant Director DAVID M. WRIGHT, Assistant Director RICHARD D. PORTER, Senior Adviser WILLIAM C. SCHNEIDER, JR., Project Director, ATHANASIOS ORPHANIDES, Adviser National Information Center NORMAND R.V. BERNARD, Special Assistant to the Board 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, Senior Associate Director JEFFREY C. MARQUARDT, Associate Director ADRIENNE D. HURT, Associate Director KENNETH D. BUCKLEY, Assistant Director IRENE SHAWN MCNULTY, Associate Director JOSEPH H. HAYES, JR., Assistant Director JAMES A. MICHAELS, Assistant Director EDGAR A. MARTINDALE III, Assistant Director TONDA E. PRICE, Assistant Director MARSHA W. REIDHILL, Assistant Director JEFF J. STEHM, Assistant Director OFFICE OF JACK K. WALTON II, Assistant Director STAFF DIRECTOR FOR MANAGEMENT OFFICE OF THE INSPECTOR GENERAL STEPHEN R. MALPHRUS, Staff Director SHEILA CLARK, EEO Programs Director BARRY R. SNYDER, Inspector General LYNN S. FOX, Senior Adviser DONALD L. ROBINSON, Deputy Inspector General MANAGEMENT DIVISION WILLIAM R. JONES, Director H. FAY PETERS, Deputy 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, Director MAUREEN T. HANNAN, Deputy 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

107 Federal Reserve Bulletin • July 2003 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman Vacant, 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. HOENIG SANDRA PIANALTO JAMIE B. STEWART, JR. CATHY E. MINEHAN WILLIAM POOLE STAFF VINCENT R. REINHART, Secretary and Economist CHRISTINE M. CUMMING, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary ROBERT A. EISENBEIS, Associate Economist GARY P. GILLUM, Assistant Secretary MARVIN S. GOODFRIEND, Associate Economist MICHELLE A. SMITH, Assistant Secretary DAVID H. HOWARD, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel WILLIAM C. HUNTER, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel JOHN P. JUDD, Associate Economist KAREN H. JOHNSON, Economist DAVID E. LINDSEY, Associate Economist DAVID J. STOCKTON, Economist CHARLES S. STRUCKMEYER, Associate Economist THOMAS A. CONNORS, Associate Economist DAVID W. WILCOX, Associate Economist DINO KOS, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL L. PHILLIP HUMANN, President ALAN G. MCNALLY, Vice President DAVID A. SPINA, First District ALAN G. MCNALLY, Seventh District DAVID A. COULTER, Second District DAVID W. KEMPER, Eighth District RUFUS A. FULTON, JR., Third District JERRY A. GRUNDHOFER, Ninth District MARTIN G. MCGUINN, Fourth District Vacant, Tenth District FRED 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

A63 CONSUMER ADVISORY COUNCIL RONALD A. REITER, San Francisco, California, Chairman AGNES BUNDY SCANLAN, Boston, Massachusetts, Vice Chairman ANTHONY S. ABBATE, Saddlebrook, New Jersey J. PATRICK LIDDY, Cincinnati, Ohio JANIE BARRERA, San Antonio, Texas RUHI MAKER, Rochester, New York KENNETH R BORDELON, Baton Rouge, Louisiana OSCAR MARQUIS, Park Ridge, Illinois SUSAN BREDEHOFT, Cherry Hill, New Jersey ELSIE MEEKS, Kyle, South Dakota MANUEL CASANOVA, JR., Brownsville, Texas PATRICIA MCCOY, Hartford, Connecticut CONSTANCE K. CHAMBERLIN, Richmond, Virginia MARK PINSKY, Philadelphia, Pennsylvania ROBIN COFFEY, Chicago, Illinois ELIZABETH RENUART, Boston, Massachusetts DAN DIXON, Washington, District of Columbia DEBRA S. REYES, Tampa, Florida THOMAS FITZGIBBON, Chicago, Illinois BENSON ROBERTS, Washington, District of Columbia JAMES GARNER, Baltimore, Maryland BENJAMIN ROBINSON III, Charlotte, North Carolina CHARLES GATSON, Kansas City, Missouri DIANE THOMPSON, East St. Louis, Illinois LARRY HAWKINS, Houston, Texas HUBERT VAN TOL, Sparta, Wisconsin W. JAMES KING, Cincinnati, Ohio CLINT WALKER, Wilmington, Delaware EARL JAROLIMEK, Fargo, North Dakota 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 KIRK KORDELESKI, Bethpage, New York JOHN B. DICUS, Topeka, Kansas D. TAD LOWREY, Brea, California RICHARD J. DRISCOLL, Arlington, Texas GEORGE W. NISE, Philadelphia, Pennsylvania CURTIS L. HAGE, Sioux Falls, South Dakota KEVIN E. PIETRINI, Virginia, Minnesota OLAN O. JONES, JR., Kingsport, Tennessee ROBERT F. STOICO, Swansea, Massachusetts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

109 Federal Reserve Bulletin • July 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 RISK MEASUREMENT AND SYSTEMIC RISK: PROCEEDINGS OF A 1982 December 1983 266 pp. $ 7.50 JOINT CENTRAL BANK RESEARCH CONFERENCE. 1996. 1983 October 1984 264 pp. $11.50 578 pp. $25.00 each. 1984 October 1985 254 pp. $12.50 1985 October 1986 231 pp. $15.00 1986 November 1987 288 pp. $15.00 EDUCATION PAMPHLETS 1987 October 1988 272 pp. $15.00 Short pamphlets suitable for classroom use. Multiple copies are 1988 November 1989 256 pp. $25.00 available without charge. 1980-89 March 1991 712 pp. $25.00 1990 November 1991 185 pp. $25.00 1991 November 1992 215 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages (also avail- 1992 December 1993 215 pp. $25.00 able in Spanish) 1993 December 1994 281 pp. $25.00 Consumer Handbook to Credit Protection Laws 1994 December 1995 190 pp. $25.00 A Guide to Business Credit for Women, Minorities, and Small 1990-95 November 1996 404 pp. $25.00 Businesses 1996-2000 March 2002 352 pp. $25.00 Series on the Structure of the Federal Reserve System The Board of Governors of the Federal Reserve System The Federal Open Market Committee SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF Federal Reserve Bank Board of Directors CHARTS. Weekly. $30.00 per year or $.70 each in the United Federal Reserve Banks States, its possessions, Canada, and Mexico. Elsewhere, A Consumer's Guide to Mortgage Lock-Ins $35.00 per year or $.80 each. A Consumer's Guide to Mortgage Settlement Costs REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Refinancings RESERVE SYSTEM. Home Mortgages: Understanding the Process and Your Right ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— to Fair Lending Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. How to File a Consumer Complaint about a Bank (also available Vol. II (Irregular Transactions). 1969. 116 pp. Each volume in Spanish) $5.00. In Plain English: Making Sense of the Federal Reserve GUIDE TO THE FLOW OF FUNDS ACCOUNTS. January 2000. Making Sense of Savings 1,186 pp. $20.00 each. Welcome to the Federal Reserve FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated When Your Home is on the Line: What You Should Know monthly. (Requests must be prepaid.) About Home Equity Lines of Credit (also available in Spanish) Consumer and Community Affairs Handbook. $75.00 per year. Keys to Vehicle Leasing (also available in Spanish) Monetary Policy and Reserve Requirements Handbook. $75.00 Looking for the Best Mortgage (also available in Spanish) per year. Privacy Choices for Your Personal Financial Information Securities Credit Transactions Handbook. $75.00 per year. When Is Your Check Not a Check? The Payment System Handbook. $75.00 per year. Federal Reserve Regulatory Service. Four vols. (Contains all four Handbooks plus substantial additional material.) $200.00 per year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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/staff studies. Requests to obtain single copies of any paper or Lowrey. December 1997. 17 pp. to be added to the mailing list for the series may be sent to 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- Publications. 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

111 Federal Reserve Bulletin • July 2003 Maps of the Federal Reserve System TON EW YORK ADELPHIA LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city n 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 Baltimme MD Pittsburgh NY ^ PA / VA VT V "* i t wv m Buffalo ' Cincinnati •Charfotte / sc ' RI BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G •Nastmlle Z1—' B irmingham-^L. ' • ,L • w4 rl M MO ^*1 T S N V ille v*. S 'Jackson* ille - , A1" W ' . m emphis r leans NewOrl Y Little | Mi^n ATLANTA CHICAGO ST. LOUIS 9-1 MINNEAPOLIS 10-J 12-L < )klaho•m a >C it\• - KANSAS CITY 11-K c City San Aii^bnid DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

113 Federal Reserve Bulletin • July 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 Sandra Pianalto Charles E. Bunch Robert Christy Moore Cincinnati 45201 Dennis C. Cuneo Barbara B. Henshaw Pittsburgh 15230 Roy W. Haley Robert B. Schaub RICHMOND* 23219 Wesley S. Williams, Jr. J. Alfred Broaddus, Jr. Thomas J. Mackell, Jr. 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 Hansen1 ST. LOUIS 63166 Charles W. Mueller William Poole Walter L. Metcalfe, Jr. W. LeGrande Rives Little Rock 72203 Vick M. Crawley Robert A. Hopkins Louisville 40232 Norman Pfau, Jr. Thomas A. Boone Memphis 38101 Gregory M. Duckett Martha Perine Beard MINNEAPOLIS 55480 Ronald N. Zwieg Gary H. Stern Linda Hall Whitman James M. Lyon Helena 59601 Thomas O. Markle Samuel H. Gane KANSAS CITY 64198 Richard H. Bard Thomas M. Hoenig Vacancy Richard K. Rasdall Denver 80217 Robert M. Murphy 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 Gail Darling Robert W. Gilmer3 Houston 77252 LupeFraga Robert Smith III1 San Antonio 78295 Ron R. Harris James L. Stull1 SAN FRANCISCO 94120 George M. Scalise Robert T. Parry Sheila D. Harris 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 Mark Gould * 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 3. Acting 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

115 Federal Reserve Bulletin • July 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.l Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis