Federal Reserve Bulletin, 2003-09

Volume 89 • Number 9 • September 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 395 CAPITAL STANDARDS FOR BANKS: Identification of top five fundamentals for man- THE EVOLVING BASEL ACCORD agement of personal credit The Basel Capital Accord has served as the Enforcement actions framework for capital adequacy standards for Staff changes internationally active banks since 1988. The agreement is widely viewed as having achieved its main objectives, including the promotion of 411 LEGAL DEVELOPMENTS stability in world financial markets. In recent Various bank holding company, bank service years, however, it has become less appropriate corporation, and bank merger orders; and pendfor the world's largest banks, which are increasing cases. ingly complex and engage in financial transactions unimagined when the agreement was A1 FINANCIAL AND BUSINESS STATISTICS adopted. Now proposals are being considered to refine the framework to take account of the These tables reflect data available as of changes in banking and the banking system over July 29, 2003. the past fifteen years. A3 GUIDE TO TABLES 406 ANNOUNCEMENTS A4 Domestic Financial Statistics Federal Open Market Committee directive A42 Domestic Nonfinancial Statistics A44 International Statistics Guidance on appropriate use of the discount window A57 GUIDE TO SPECIAL TABLES AND Amendments to Regulation CC, appendix A STATISTICAL RELEASES Annual adjustment of fee-based trigger amount for additional disclosure requirements A74 INDEX TO STATISTICAL TABLES Comment requested on official interpretation of anti-tying restrictions A76 BOARD OF GOVERNORS AND STAFF Final rules on disciplinary actions against accountants and accounting firms performing A78 FEDERAL OPEN MARKET COMMITTEE AND certain audit functions STAFF; ADVISORY COUNCILS Publication of documents related to Basel A80 FEDERAL RESERVE BOARD PUBLICATIONS Accord implementation Proposal for interagency guidance on response A82 MAPS OF THE FEDERAL RESERVE SYSTEM programs to protect against identity theft New interagency electronic filing system for A84 FEDERAL RESERVE BANKS, BRANCHES, beneficial ownership reports AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Capital Standards for Banks: The Evolving Basel Accord The business of banking involves taking and manag- U.S. banking agencies established specific standards ing risks. Lending, for example, involves the risk that for capital in relation to the risk of loss rather than the borrower will not pay back the loan as promised, simply commenting on institutions' capital adequacy and paying a fixed rate of interest on term deposits to managers and boards of directors on a case-byinvolves the risk that rates will drop, leaving the bank case basis, often in qualitative terms. earning less on its investments than it is paying out Specific standards were first imposed in 1981, folon deposits. Risk is not unique to banking, of course; lowing a period in which already low capital ratios at all types of companies engaged in international large U.S. banks continued to decline in the face of activities, for example, face the risk of unfavorable a substantial deterioration in the quality of loan portmovements in exchange rates. But changes in bank- folios due primarily to exposures to emerging econoing and financial markets have increased the com- mies. Prompted by the slow response of banks to plexity of banking risks. And the position of banks these growing risks, the Federal Reserve and the in modern economies has made the management of other U.S. banking agencies adopted the "primary banking risks ever more important to financial stabil- capital" standard requiring that banks maintain a ity and economic growth. ratio of capital (essentially equity and loan-loss In the United States, banks, in addition to their reserves) to total assets of 5.5 percent. economic role in funding households and businesses, Later, coordinated international efforts led to the are central to the credit intermediation and payments more elaborate, though still relatively simple, Basel process and to the conduct of monetary policy. More- Capital Accord, which sets forth a framework for over, they have privileged access to borrowing from capital adequacy standards for large, internationally the Federal Reserve (via the discount window) and active banks and serves as the basis for the risk-based to federally supported payment systems; in addition, capital adequacy standards currently in place for all the deposits they accept from the public are federally U.S. banks and bank holding companies. Now proinsured. posals are being considered to refine the current Because of banks' multiple functions, the great framework to take account of changes in banking and degree of leverage they employ in carrying out their the banking system over the fifteen years since the economic role, and their access to the safety net, Basel Capital Accord was adopted. society has a keen interest in the health and wellbeing of the banking system. The level of government regulation and supervision, unique to insured THE BASEL CAPITAL ACCORD depository institutions, has evolved over the years. As part of the supervisory process, examiners have The Basel Capital Accord, the current international routinely evaluated the overall health of the institu- framework on capital adequacy, was adopted in tion as well as its risk-management capabilities. In 1988 by a group of central banks and other national the process, they have also assessed bank loan port- supervisory authorities, working through the Basel folios and the general integrity of bank financial Committee on Banking Supervision.1 The accord's statements. Only in recent decades, however, have 1. The Basel Committee on Banking Supervision, established in 1974, is made up of representatives of the central banks or other This article is adapted from testimony presented by Federal Reserve supervisory authorities of Belgium, Canada, France, Germany, Italy, Board Vice Chairman Roger W. Ferguson, Jr., on June 18, 2003, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, the before the U.S. Senate Committee on Banking, Housing, and Urban United Kingdom, and the United States. The committee, which meets, Affairs and on June 19, 2003, before the U.S. House of Representa- and has its secretariat, at the Bank for International Settlements in tives Committee on Financial Services, Subcommittee on Financial Basel, Switzerland, has no formal authority. Rather, it works to Institutions and Consumer Credit. The full testimony is available on develop broad supervisory standards and promote best practices, in the Board's web site, at www.federalreserve.gov/generalinfo/basel2/ the expectation that each country will implement the standards in speeches.htm. ways most appropriate to its circumstances. Agreements are devel- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 Federal Reserve Bulletin • September 2003 fundamental objectives are to promote the soundness address financial innovation, both on and off balance and stability of the international banking system and sheet. Although the framework sets forth many to provide an equitable basis for international compe- details, it allows national supervisors a degree of tition among banks. Although it was intended specifi- discretion in adopting the standard to its specific cally for internationally active banks, the accord has, institutions and markets. in practice, been applied beyond the largest institutions to cover most banking organizations worldwide. The accord sets forth a framework for measur- NEED FOR A NEW CAPITAL STANDARD ing capital adequacy and a minimum standard to be achieved by international banks in adopting coun- The Basel Capital Accord, now familiarly known as tries. The original framework assessed capital mainly Basel I, is widely viewed as having achieved its in relation to credit risk (the risk of loss due to the principal objectives of promoting financial stability failure of a counterparty to meet its obligations) and and providing an equitable basis for competition addressed other risks only implicity, effectively load- among internationally active banks. At the same time, ing all regulatory capital requirements on measures it is also seen as having outlived its usefulness, at of credit risk. In 1996 it was amended to take explicit least in relation to larger banking organizations. From account of market risk in trading accounts (the risk of the perspective of U.S. supervisors, Basel I needs to loss due to a change in market prices, such as equity be replaced, at least for the largest, most complex prices or interest or exchange rates). banks, for three major reasons: It has serious short- Stated simply, the Basel Capital Accord requires comings as it applies to these large entities; the art of that a bank have available as "regulatory capital" risk management has evolved at the largest banks; (through combinations of equity, loan-loss reserves, and the banking system has become increasingly subordinated debt, and other accepted instruments) at concentrated. least 8 percent of the value of its risk-weighted assets (loans and securities, for example) and assetequivalent off-balance-sheet exposures (such as loan Shortcomings of Basel / commitments, standby letters of credit, and obligations on derivatives contracts). For purposes of deter- Basel I was a major step forward in capital regulamining a bank's assets, different types of assets are tion. Indeed, for most banks in this country Basel I, weighted according to the level of perceived risk that as it has been augmented by U.S. supervisors, is each type represents, and each off-balance-sheet now—and for the foreseeable future will be—more exposure is converted to its equivalent amount of than adequate as a capital framework. It is too simple, assets and weighted as that type of asset would however, to address the activities of the most combe weighted. For example, commercial loans are plex banking organizations. As implemented in the weighted at 100 percent, whereas loans on residential United States, it specifies only four levels of risk, housing, considered less risky, are weighted at 50 per- even though loans assigned the same risk weight (for cent.2 Total risk-weighted assets are multiplied by example, 100 percent for commercial loans) can vary 8 percent to determine the bank's minimum capital greatly in credit quality. The limited differentiation requirement. among degrees of risk means that calculated capital A bank's capital ratio—its regulatory capital as a ratios are often uninformative and may provide misproportion of its risk-weighted assets—and whether leading information about a bank's capital adequacy that ratio meets or exceeds the 8 percent minimum relative to its risks. have become important indicators of the institution's The limited differentiation among degrees of risk financial strength. The definition of capital has also creates incentives for banks to "game" the sysevolved over the years in response to financial inno- tem through regulatory capital arbitrage by selling, vation. The definition of assets has also changed to securitizing, or otherwise avoiding exposures for which the regulatory capital requirement is higher oped by consensus, but decisions about which parts of the agreements than the market requires and pursuing those for which to implement and how to implement them are left to each nation's the requirement is lower than the market would apply regulatory authorities. to that asset, say, in the economic enhancement nec- The 1988 Basel Capital Accord and its amendments are available on the web site of the Bank for International Settlements, at essary to securitize the asset. Credit card loans and www.bis.org/publ/bcbs04a.htm. residential mortgages are types of assets that banks 2. As implemented in the United States, there are four risk securitize in large volumes because they believe weights—0, 20, 50, and 100 percent—applied to various risk categories. required regulatory capital to be more than market or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Capital Standards for Banks: The Evolving Basel Accord 397 economic capital.3 Such capital arbitrage of the regu- and these banks have markedly different product latory requirements by banks is perfectly understand- mixes. At the same time, a significant weakness in able, and in some respects even desirable in terms of any one of these entities could have severely adverse economic efficiency. Because, of course, banks retain macroeconomic consequences. Although the share of those assets for which the regulatory capital require- insured liabilities to total funding has declined over ment is less than the market would apply, large banks time, these banks, with their scale and role in payengaging in capital arbitrage may, as a result, hold ment and settlement systems and in derivatives martoo little capital for the assets they retain, even though kets, have presented authorities with greater moral they meet the letter of the Basel I rules. hazard. The regulatory framework should encourage Although U.S. supervisors are still able to evaluate these banks to adopt the best possible risk measurethe true risk position of a bank through the examina- ment and management techniques while allowing for tion process, the regulatory minimum capital ratios of the considerable differences in their business stratethe larger banks are, as a result of capital arbitrage, gies. A modified accord could encourage these and becoming less meaningful. Not only are creditors, other large banks to push their management frontier counterparties, and investors hampered in evaluat- forward. ing the capital strength of individual banks from the ratios as currently calculated, but regulations and statutory requirements tied to those ratios have less BASEL II meaning as well. For the larger banks, in short, Basel I capital ratios neither reflect risk adequately Over the past several years, the Basel Committee nor measure bank strength accurately. on Banking Supervision has been working on a new accord to reflect changes in the structure and practices of banking and financial markets. The most Evolution of the Art recent version of the proposed New Basel Capital of Risk Measurement and Management Accord, now known as Basel II, was released in a consultative paper in April 2003.4 The focus of the Risk measurement and management have improved reform has been on strengthening the regulatory capisignificantly beyond the state of the art of fifteen tal framework for large, internationally active bankyears ago, when Basel I was developed. Banks them- ing organizations through minimum capital requireselves have led the development of new techniques to ments that are more sensitive to an institution's risk improve their risk management and internal eco- profile and that reinforce incentives for strong risk nomic capital measures in order to be more effective management. competitors and to control and manage their credit The proposed substitute for the current capital losses. But clearly they can go considerably further. accord is more complex than its predecessor, for A revised accord that is carefully crafted could speed several reasons. One reason is that the assessment adoption of still better techniques and promote the of risk in an environment of a growing number of further evolution of risk measurement and manage- financial instruments and strategies having subtle difment by spurring increased investment in the process. ferences in risk-reward characteristics is inevitably complicated. Another is that the reform effort has multiple objectives: Continuing Concentration of the Banking Industry • To improve risk measurement and management • To link, to the extent possible, the amount of Market pressures have led to consolidation in bank- required capital to the amount of risk taken ing around the world. The U.S. banking system has • To further focus the supervisor-bank dialogue on been part of this trend; it, too, has become increas- the measurement and management of risk and the ingly concentrated, with a small number of very large connection between risk and capital banks operating across a wide range of product and • To increase the transparency of bank risk-taking geographic markets. The operations of these large to the customers and counterparties that ultimately banks are tremendously complex and sophisticated, fund—and hence share—these risk positions. 3. Economic capital is a bank's internal estimate of the capital 4. The full document, titled "The New Basel Capital Accord," as needed to support its risk-taking activities. well as an overview, is available at www.bis.org/bcbs/bcbscp3.htm. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 Federal Reserve Bulletin • September 2003 Proposed changes to elements of the capital ratio under Basel II Regulatory capital Minimum required (Definition unchanged) capital ratio Measure of risk exposure (8% minimum unchanged) (Risk-weighted assets) (Measure revised) I Credit risk Market risk Operational risk exposure + exposure + exposure (Measure revised) (Measure unchanged) (Explicit measure added) Overview quate or failed internal processes, people, or systems or from external events. This modified definition of The Basel II framework is built on three mutually risk-weighted assets, with its greater sensitivity to reinforcing elements, or "pillars": risk, is the hallmark of Basel II. (See diagram.) • Pillar 2 addresses supervisory oversight. It • Pillar 1 addresses minimum capital require- encompasses the concept that well-managed banks ments—the rules by which a bank calculates its capi- should seek to go beyond simple compliance with tal ratio and its supervisor assesses whether it is in minimum capital requirements and perform for themcompliance with the minimum capital threshold. The selves a comprehensive assessment of whether they concept of the capital ratio would remain unchanged. have sufficient capital to support their own individual As under Basel I, the numerator of the ratio would be risk profile. It also promotes the notion that superan amount representing the capital available to the visors, on the basis of their knowledge of industry bank (its regulatory capital) and the denominator practices at a range of institutions, should provide would be an amount representing the risks faced constructive feedback to bank management on their by the bank (its risk-weighted assets). As proposed, internal assessments. (In the United States, pillar 2 is the minimum required capital ratio (8 percent) and largely already encompassed in the supervisory prothe definition of regulatory capital (certain equity, cess, but it would represent a significant change in reserves, and subordinated debt) would not change supervision in some other countries.) from Basel I.5 What would change is the definition of • Pillar 3 seeks to complement these activities with risk-weighted assets—the methods used to measure stronger market discipline by requiring banks to pubthe riskiness of the loans and investments held by the licly disclose key information that enables market bank. Specifically, Basel II would make substantive participants to assess an individual bank's risk profile changes in the treatment of credit risk and would and level of capitalization. This pillar is seen as provide for specific treatment of securitization, a particularly important because some banks under risk-management technique not fully contemplated Basel II would be allowed to rely more heavily on by Basel I. And it would explicitly take account of internal methods for determining risk, giving them operational risk—the risk of loss resulting from inade- greater discretion in determining their capital needs. 5. However, the definition of regulatory capital under Basel II Options for Application remains under consideration by the Basel Committee. Capital currently includes allowances for loan and lease losses, which are reserves for yet-unidentified, but expected, loan losses. However, In contrast to Basel I, which applies the same framemost models used by banks themselves to measure their economic risks focus only on unexpected losses and, as a result, would exclude work to all covered banks, Basel II, as currently such reserves when evaluating capital adequacy. proposed, offers three options for measuring credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Capital Standards for Banks: The Evolving Basel Accord 399 risk and three for measuring operational risk. The age of the bank's average annual gross income over purpose of offering options is to allow each bank and the preceding three years. Under the basic indicator its supervisors to select approaches that are most approach, the capital requirement would be calappropriate to the bank's operations and its ability to culated at the firm level; under the standardized measure risk. approach, a separate capital requirement would have to be calculated for each of eight designated business lines. Banks using these two approaches would not Credit Risk be allowed to take into account the risk-mitigating effect of insurance. The options for calculating credit risk are the stan- The AMA option is designed to be more sensitive dardized approach and two internal-ratings-based to operational risk and is intended for internationally (IRB) approaches—the foundation approach and the active banks having significant exposure to operaadvanced approach. The standardized approach is tional risk. It seeks to build on banks' rapidly develsimilar to the current framework in that bank assets oping internal assessment techniques and would are categorized and then weighted according to fixed allow banks to use their own methods for assessing risk weights for the various categories specified by their exposure, so long as those methods are judged supervisors. However, the standardized approach by supervisors to be sufficiently comprehensive and adds more risk categories and makes use of external systematic. credit ratings to evaluate corporate risk exposures. Internationally active banks and banks having Under the two IRB approaches, each bank would significant exposure to operational risk would be evaluate its assets in terms of the most important expected to adopt the more risk sensitive AMA elements of credit risk—the probability that a boroption over time. No specific criteria for using the rower will default during a given period, the likely basic indicator approach would be set forth, but size of the loss should default occur, the amount of banks using that approach would be encouraged to exposure at the time of default, and the remaining comply with supervisory guidance on sound practices maturity of the exposure. Risk weights, and thus for managing and supervising operational risk. Banks capital requirements, would be determined by a comusing either the standardized approach or the AMA bination of bank-provided quantitative inputs and approach would be required to have operational risk supervisor-provided formulas. systems meeting certain criteria, with the criteria for The details for calculating capital charges would the AMA being more rigorous. vary somewhat according to type of exposure (corporate or retail, for example). The difference between the two IRB approaches is that the foundation ap- IMPLEMENTATION OF BASEL II proach would require the bank to determine only IN THE UNITED STATES each loan's probability of default, and the supervisor would provide the other risk inputs; under the Like its predecessor, the proposed New Basel Capital advanced approach, the bank would determine all the Accord provides a. framework for ensuring that banks risk inputs, under procedures validated by the superhold adequate capital against risk. National discretion visor. Banks choosing to operate under either of the is built into the framework so that adopting countries two IRB approaches would be required to meet minihave some flexibility in implementing rules that are mum qualifying criteria pertaining to the compremost appropriate to their own circumstances. The hensiveness and integrity of their internal capabilities U.S. banking agencies have been closely coordinating for assessing the risk inputs relevant for its approach. their efforts to implement a new accord in this country. While their current proposal differs in some Operational Risk respects from the Basel Committee's proposal, those differences lie mainly in the scope of application The three proposed options for calculating opera- rather than in the details for calculating capital tional risk are the basic indicator approach, the stancharges.6 dardized approach, and the advanced measurement approaches (AMA). The basic indicator and standard- 6. The U.S. banking agencies are the Board of Governors of the ized approaches are intended for banks having rela- Federal Reserve System, the Office of the Comptroller of the Curtively less significant exposure to operational risk. rency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision. They require that banks hold capital against opera- The current proposal for implementation in the United States is tional risk in an amount equal to a specified percent- contained in an interagency advance notice of proposed rulemaking, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 Federal Reserve Bulletin • September 2003 Scope of Application When the costs of imposing a new capital regime on thousands of U.S. banks are balanced against the The U.S. banking agencies have proposed that large, benefits—slightly more risk sensitivity of capital internationally active banking organizations be requirements under, say, the standardized version treated differently from most other banks because of of Basel II for credit risk and somewhat more the complexity and scale of their operations and disclosure—requiring most U.S. banks to make the transactions and their greater ability and need to change to Basel II does not seem worthwhile. Counquantify risks. tries whose institutional structure differs from that in the United States might find universal application of Basel II to benefit their banking system, but in the Most U.S. Banks United States this approach seems neither necessary nor practical. The agencies have proposed that most banking organizations in this country not be required to adopt Basel II, although they may do so if they wish Large, Complex Banking Organizations provided that they demonstrate the ability to develop the necessary risk measures required as inputs to The agencies have proposed that the largest, most determine capital requirements. Those banks not complicated banking organizations—those with total adopting Basel II would remain under the existing assets of at least $250 billion or total foreign expo- (Basel I) capital rule, which entails no explicit capital sure of at least $10 billion—be required to adopt charge for operational risk. The agencies have several the advanced versions of Basel II—the advanced reasons for believing that most U.S. banks should not internal-ratings-based (A-IRB) approach for meabe required to apply new rules: suring credit risk and the advanced measurement approaches (AMA) for measuring operational • Most U.S. banks have relatively straightforward risk. U.S. supervisors believe that these advanced balance sheets and do not yet need to employ the full approaches are best suited to the objective of encourrange of sophisticated risk-management techniques aging the largest U.S. banking organizations to conrequired under the advanced versions of Basel II. tinue to incorporate into their operations the most • Most U.S. banks already hold considerable capi- sophisticated techniques for the measurement and tal in excess of the Basel I regulatory minimum, in management of risk. As noted earlier, these entities part to meet existing U.S. regulatory criteria for being use financial instruments and procedures that are not considered "well capitalized." According to regula- adequately captured by the Basel I paradigm. They tory reports, more than 98 percent of these organi- have already begun to use—or have the ability to zations have risk-weighted capital ratios in excess adopt—the techniques of modern finance to measure of 10 percent, well above the Basel I minimum of and manage their exposures. Moreover, substantial 8 percent. Applying new standards to them would difficulty at one of the largest banking organizations likely have little effect in requiring them to hold could have significant effects on global financial maradditional capital, but would require the adoption of kets. Consequently, the U.S. banking agencies believe expensive new procedures, and thus does not seem that all the largest banks worldwide should be using worthwhile. these more advanced risk measurement and manage- • U.S. banks have long been subject to compre- ment procedures. hensive and thorough supervision, including a review Under the advanced approach for measuring credit of their risk-measurement and risk-management prorisk, a banking organization would be required to cesses. They also disclose considerable information estimate, for each credit exposure, the probability through regulatory reports and, if they are issuers of of borrower default, the likely size of the loss in the public debt or equity, under accounting rules and event of default, and the likely amount of exposure at requirements of the Securities and Exchange Comthe time of default. These three probabilities, together mission; consistent with pillar 3 of Basel II, they with the effective remaining maturity of the expoalready provide significant disclosure. sure, would be used as key inputs in formulas provided by supervisors to determine the minimum published in the Federal Register on August 4, 2003 (vol. 68, no. 149, required capital for a given portfolio of exposures. pp. 45899-948). Draft supervisory guidance on internal-ratings-based systems for accounting for corporate credit and on advanced measure- Although the bank would estimate these key inputs, ment approaches to accounting for operational risk, with request the estimates would have to be based on empirical for comment, was published in the Federal Register on the same date information, using procedures and controls validated (pp. 45949-988). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Capital Standards for Banks: The Evolving Basel Accord 401 by the bank's supervisor, and the results would have banks may rest on market reactions to their initial to measure risk accurately. view. Discussions with the rating agencies confirm U.S. banks that adopt the advanced approach to that they do not expect many banks outside the core measuring credit risk would be required to hold capi- group to find adoption of Basel II to be cost effective tal against operational risk pursuant to the AMA during the initial implementation period, and prelimioption. Accordingly, banks themselves would bear nary surveys of bank equity security analysts indicate the primary responsibility for developing their own that they are more focused on the disclosure aspects methodology for determining their operational risk of Basel II than on the scope of application. This capital requirement. Supervisors would require that would suggest little market pressure on non-core the procedures used be comprehensive, systematic, banks to adopt the advanced approaches. For their and consistent with certain broad outlines and would part, U.S. supervisors have no intention of pressuring review and validate each bank's process. In this way, other banks to adopt Basel II, at least in the early a bank's capital charge for operational risk would years. As risk-measurement standards evolve and reflect its own environment and controls. The ability become more widespread, supervisors might expect of a bank to lower the amount of its capital charge by more banks to use advanced measures. The point, as taking actions to limit its potential losses from opera- always, is that risk management and capital standards tional problems is an important incentive provided should keep pace with banking practice and that all by this approach. Under the AMA, there would be no banks should be well managed. quantitative regulatory mimimum capital for opera- The ten core banks, together with the estimated ten tional risk, either absolutely or relative to total capi- self-selecting banks, currently account for 99 pertal; the amount required would vary from bank to cent of the foreign assets, and more than 65 percent bank. of total assets, held by U.S. banking organizations. At present, about ten U.S. banks—termed "core" These figures indicate the importance of these entities banks—have total assets or total foreign exposure to the U.S. and global banking and financial markets. above the specified amounts and therefore would be In turn, the proposal to require Basel II for just required, under the current proposal, to adopt the these entities, were the new accord applied today, advanced approaches to measuring credit and opera- underscores the United States' commitment to fostertional risks. In the years ahead, it is possible that ing international competitive equity and the adopother banks, as they grow, may meet the criteria and tion of best-practice policies at the organizations thus shift into the core group. critical to financial stability while minimizing cost In addition, as noted, other banks that can meet the and disruption at purely domestic, less-complicated requirements of the advanced approaches to quan- organizations. tify various aspects of credit risk exposures and to develop systems for measuring operational risk exposures would be allowed to adopt these approaches if Issues in Implementation they so chose. Relevant considerations for banks in deciding whether to pursue the advanced approaches Three key areas of concern relating to the current include the benefits of doing so relative to the costs, proposal for implementing Basel II in the United the nature of their operations, the effect on their States have been identified: the cost of implementacapital requirement, and the message they want to tion, competitive equity, and the treatment of operasend to their counterparties about their risk- tional risk. management techniques. It is estimated that in the near term, perhaps ten or more large U.S. banks now outside the core set (termed "opt in" banks) would Cost of Implementation choose to adopt Basel II. Thus, if Basel II were applied today, about twenty U.S. banks would likely Implementing the advanced approaches for measuradopt the advanced versions of Basel II. ing credit and operational risk in the United States Over time, other large banks, perhaps responding would be expensive for the small number of banks to market pressure and facing declining costs—and required to do so, for other banks choosing to do so, wider understanding—of the technology, might also and for supervisors. For banks, the greatest expense choose the advanced capital regime. The agencies would be in establishing the mechanisms necessary believe, however, that it would be some time before to evaluate and control risk exposures more formally a cost-benefit assessment would induce smaller and than in the past. The A-IRB approach would not less complex banks to do so. The decision for many eliminate losses: Banks are in the business of taking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 Federal Reserve Bulletin • September 2003 risk, and where there are risks, there will be losses. mum requirements, relative to the amounts that But U.S. supervisors believe that the better risk man- would have been required under Basel I. Some agement that would be required under the advanced observers have expressed concern about the competiapproaches would better align risk and return and tive edge that might be gained by a bank having its thereby provide benefits to bank stakeholders and the capital requirement lowered by more than that of economy. And the more-risk-sensitive capital require- another Basel II bank. ments would help ensure that banks have sufficient The essence of Basel II is that it is designed to link capital to absorb losses when they do occur. the capital requirement to the risk resulting from the Moreover, not all the costs associated with the exposures at each individual bank. A bank that holds adoption of modern, formal risk-management sys- mainly lower-risk assets, such as high-quality resitems should be attributed to Basel II. The large banks dential mortgages, would have no advantage over a that would be required, or would choose, to adopt the rival that held mainly lower quality, and therefore advanced approaches have already adopted many riskier, commercial loans just because the former had risk-management processes, in their need to compete a lower capital requirement. The minimum capital for funding in a global marketplace, and would con- requirement should be a function of risk taken, and tinue to develop them even without Basel II. The under Basel II, two banks that have similar loans current proposal might speed the adoption process, should have similar capital requirements. Under but, overall, the costs of adopting these processes are Basel I, the regulatory capital requirement does not being forced on these banks not by Basel II but by the always fully reflect the risk taken. Because Basel II is requirements of doing business in an increasingly more risk-sensitive, it should not have much of an complex financial environment. effect on competitive equity. If anything, one could argue, it will reduce competitive distortions. However, supervisors are mindful of the concerns sur- Competitive Equity rounding possible competitive distortions created by Basel II and therefore are analyzing evidence and A second key concern in implementation, as cur- evaluating the potential effects that Basel II might rently proposed, is competitive equity, in three areas. have. Equity in Application. Some U.S. banks that would be Equity under a Bifurcated Scheme. The most fresubject to Basel II have expressed concern that U.S. quently voiced concern about possible competitive supervisors might be more stringent in their applica- imbalance relates to the "bifurcated" rules implicit in tion of Basel II rules than the supervisors in other the proposed scope of application—that is, requiring countries, thereby placing U.S. banks at a competitive Basel II, through the advanced approaches, for a disadvantage. To address the concern about unequal small number of large banks while requiring the application, the Basel Committee has established an current capital rules for all other U.S. banks. The Accord Implementation Group made up of senior concern is that the banks remaining under the current supervisors from each Basel Committee member capital rules, with capital charges that are not as risk country to work out common standards and proce- sensitive, would be at a competitive disadvantage dures and to serve as a forum in which conflicts can relative to Basel II banks, which would have lower be addressed. No doubt some differences in applica- capital charges on less-risky assets. tion would be unavoidable across banking systems While it is true that the same credit exposure might having different institutional and supervisory struc- receive a lower minimum capital charge at a Basel II tures, but supervisors would remain alert to the poten- bank than at a Basel I bank, it can also be argued that tial problem and work to minimize it. Moreover, as a Basel II bank would have higher capital charges is the case today, U.S. bank subsidiaries of foreign on higher-risk assets, plus the cost of developing banks would be operating under U.S. rules, just as and maintaining the information systems and riskforeign bank subsidiaries of U.S. banks would be measurement processes required by Basel II. Noneoperating under host-country rules. theless, concerns remain about competitive equity under the proposed scope of application. Making Equity of Effects on Minimum Capital Requirements. changes to the U.S. proposal to address these con- The proposed changes in calculating capital require- cerns would involve making some difficult trade-offs. ments under the advanced versions of Basel II could On the one hand is the pressing need to reform the have the result of lowering some banks' minimum capital system for the largest banks and the practical capital requirements, and raising other banks' mini- arguments for retaining the current system for most Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Capital Standards for Banks: The Evolving Basel Accord 403 U.S. banks. On the other hand is the concern that the this case, too. The role of economic capital is only current proposal might have the unintended conse- reinforced by the fact that the cost of capital and quence of disadvantaging those banks remaining funding is less at insured depositories than at their under the current capital regime. Although there are nondepository rivals because of the safety net proreasons to believe that little if any competitive disad- vided by federal deposit insurance. Insured deposits vantage would fall on those banks remaining under and access to the Federal Reserve discount window the current regime, the matter is taken seriously and (and Federal Home Loan Bank advances) let insured will be explored before final decisions are made. depositories operate with far less capital or collateral- The basic question is the role of minimum regula- ization than the market would otherwise require of tory capital requirements in banks' determination of them—and far less than it requires of nondepository the price and availability of the credit they extend. rivals. Again, Basel II would not change those market Economic analysis suggests that currently imprecise realities. and nonbinding regulatory capital should be considerably less important to banks in their decisionmaking than their own calculations of risk and the capital Treatment of Operational Risk allocations they make within their organization to individual exposures, portfolios, and business lines— The third key area of concern about the U.S. proposal their internal economic capital measures. Sound bank for implementing Basel II is the proposed treatment pricing is based on an explicit estimate of the riski- of operational risk. Operational risk—and requiring ness of the credit, market conditions, and competitive that capital be held to offset it—are not new concepts. factors. In most cases, regulatory capital is largely Supervisors have been expecting banks to manage irrelevant in the pricing decision and is therefore operational risk for some time, and banks have long unlikely to cause competitive disparities. been holding capital against it. Under Basel I, both operational and credit risks are covered in a single Moreover, most banks, especially smaller ones, measure of risk and a single capital charge. Basel II currently hold capital far in excess of regulatory would require explicit and separate charges for the minimums, for various reasons. Thus, changes in two. their own or their rivals' minimum regulatory capital requirement generally would not have much effect on Operational disruptions have caused banks here the level of capital they choose to hold and would and abroad to suffer huge losses and, in some cases, therefore not necessarily affect internal capital alloca- failure.7 In an increasingly technology-driven banktions for pricing purposes. ing system, operational risk has become an even larger share of total risk; at some banks it is the In addition, small banks have for years faced capidominant type of risk. Not addressing operational tal arbitrage from larger rivals that are able to reduce risk would be imprudent and would leave a considertheir capital charges by securitizing loans for which able gap in the regulatory system. the regulatory requirements are high relative to what the market would require based on the perceived Still being considered is the way operational risk level of economic risks. The more-risk-sensitive should be treated—as an explicit capital charge under advanced approach would, in fact, reduce the regula- pillar 1 or on a case-by-case basis under pillar 2. tory capital charge in just those areas in which capital Under the current U.S. scope of application proposal, requirements are too high under the current regime. it would be treated as an explicit charge under pillar 1 Indeed, capital arbitrage has done much of that for A-IRB banks, and these banks would be obligated already. The advanced approach would provide, in to evaluate their own operational risks in a structured, effect, risk-sensitive capital charges for lower-risk though flexible, way. An A-IRB bank could reduce assets that are similar to the charges that larger banks its operational risk charge by adopting procedures, have for years already obtained through capital arbi- systems, and controls that reduce its risk or by shifttrage. In short, competitive realities between banks ing the risk to other entities through such measures as might not change in many markets in which mini- insurance. This approach parallels the way in which a mum regulatory capital charges would become more bank could reduce its credit risk charge by shifting to explicitly risk sensitive. less-risky exposures or by making use of riskmitigation techniques such as requiring collateral or Concerns have also been raised about the effect of guarantees. the proposed Basel II capital requirements on the competitive relationships between depository and 7. See "Large Losses from Operational Risk, 1992-2002," appennondepository institutions. The argument that ecodix 2 in June 19, 2003, testimony (www.federalreserve.gov/ nomic capital is the driving force in pricing applies in boarddocs/testimony/2003/20030619/attachment2.pdf). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 Federal Reserve Bulletin • September 2003 Those banks for which operational risk is the domi- tively. If the evidence at any of those stages sugnant risk would have significant required capital gested that aggregate capital was declining too much, charges should operational risk be explicitly treated the Federal Reserve Board—as well as the other under pillar 1. Such banks already hold significant agencies—would insist that Basel II be adjusted or economic capital for operational risk—in part to meet recalibrated. market demands. Thus, adoption of the proposal That said, some reduction in minimum regulatory would shift their "excess" regulatory capital—capital capital for sound, well-managed banks having relaheld in excess of current regulatory minimums under tively low risk portfolios should be expected and, Basel I—to required regulatory capital under Basel II indeed, is intended. Improved risk measurement without changing their total capital position much, if and management, when coupled with such existing at all. U.S. supervisory measures as prompt corrective An alternative is to handle operational risk case by action, minimum leverage ratios, statutory provisions case through the supervisory review of buffer capital making capital a prerequisite to exercising additional under pillar 2. There is concern, however, that doing powers, and market demands for buffer capital, so would greatly reduce the transparency of risk and should result in lower risk profiles—and, as a matter capital that is an important part of Basel II. Also, of sound public policy, banks with lower risk probecause pillar 2 treatment would be based on supervi- files should be allowed to hold less regulatory capital sory judgment, comparable treatment of risks across than banks with higher risk profiles. Greater disperbanks would be very difficult. Work done thus far by sion in required capital, if reflective of underlying U.S. banks that would be subject to Basel II indicates risk, is an objective, not a problem to be overcome. that an explicit charge could induce banks to adopt A final consideration in relation to capital is change risk-reducing innovations and encourage them to de- over time in technology and procedures. Basel II is velop improved operational risk management. None- designed to adapt to such changes. In the years ahead, theless, this matter, like the other areas of concern, banks and supervisors will no doubt develop better will be considered further before final decisions are ways of estimating risk parameters as well as better made. functions that convert those parameters to capital requirements. When they do, the changes could be substituted directly into the Basel II framework, port- SUPERVISORY CONSIDERATIONS folio by portfolio if necessary. Basel II would not lock risk management into any particular structure; Some observers have expressed concern that the com- rather, it could evolve as best practice evolves. bined credit and operational risk capital charges for U.S. banks subject to Basel II would decline too much for prudent supervisory purposes. In exploring LOOKING AHEAD TO ADOPTION this possibility, authorities have conducted a series of surveys to estimate the likely effect of the proposed Reform of the current Basel Capital Accord and requirements on banks' regulatory capital. In these development of U.S. rules implementing a new "quantitative impact studies," banks throughout the accord are ongoing and interrelated. The current proworld have followed the proposed methods of esti- posal for the new accord, issued in April 2003, was mating their likely regulatory capital charges for dis- preceded by several earlier drafts. Each draft has tinct types of exposures, and survey results have led been accompanied by documents providing backto adjustments to the proposal.8 In the United States, ground on the concepts, framework, and options and at least one additional survey will be conducted has been followed by written public comments and before final decisions are made and final rules are meetings with bankers in Basel and in other nations, issued. including the United States. After each draft, consid- As a further precaution, the current proposal for eration of public comment and analysis of the results Basel II calls for one year of parallel (Basel I and II) of the quantitative impact studies have led to significapital calculation and a two-year phase-in period, cant refinement and improvement of the proposal. with capital minimums for the two years set at 90 per- Similarly, the U.S. banking agencies have held cent and 80 percent of the Basel I levels respec- meetings with bankers, including those whose institutions would not be required to adopt Basel II but might have an interest in choosing to adopt the 8. The most recent survey (QIS 3) gathered information from more advanced approaches, to ensure that they understand than 20 U.S. banks and 365 others around the world. For more information about the surveys, see www.bis.org/bcbs/qis/index.htm. the proposal and the options it provides them. And Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Capital Standards for Banks: The Evolving Basel Accord 405 white papers have been issued to help commenters up to final implementation. In keeping with the frame their views on aspects of the U.S. proposal.9 Basel II timeline, bank implementation by the end of The dialogue with bankers has had a substantive 2006 would be desirable. However, each bank's plan influence on the shape and details of the proposals— will be based on a joint assessment by the bank and for example, on the mechanism for establishing capi- its supervisors of a realistic schedule; for some banks, tal for credit risk, the way capital for operational risk the adoption date may be beyond year-end 2006 may be calculated, and the nature of disclosure rules. because of the complexity of the required changes. Supervisors also remain open to changes that would For each bank, the emphasis will be on "doing it simplify the proposal but attain its objectives. right" rather than on "doing it quickly," and no bank The ninety-day period for comments on the current would be forced into a regime for which it is not Basel Committee proposal for the new international ready. Supervisors would, however, expect a formal accord ended on July 31, 2003, and the ninety-day plan and a reasonable implementation date. At any comment period for the advance notice of proposed time during the transition to adoption, the schedule rulemaking (ANPR) for implementation in the United could be slowed or the rules revised if there were a States will end on November 3, 2003. Comments on good reason to do so. the ANPR will highlight the need for further modifications. After reviewing the comments, U.S. banking SUMMARY agencies will develop a national position to present at a meeting of the Basel Committee to resolve remain- The existing capital regime needs to be replaced for ing differences, now scheduled for late 2003. The the large, internationally active banks whose operamechanics of review of the U.S. ANPR make it tions have outgrown the simple paradigm of Basel I unlikely that the U.S. agencies will be in a position to and whose scale requires improved risk-management sign off on a final document by then, and the schedule and supervisory techniques to minimize the risk of is likely to slip into early 2004. The Basel Commit- disruptions to world financial markets. Fortunately, tee's goal is implementation in member countries by the art of risk measurement and management has the end of 2006. improved dramatically since the first capital accord Implementation in the United States of the final was adopted. The new techniques are the basis for the Basel II agreement would require that the U.S. bank- proposed new accord. ing agencies issue a formal notice of proposed rule- The Basel II framework is the product of extensive making, review comments on that proposal, and then multiyear dialogues with the banking industry regardissue a final rule. On a parallel track, core banks and ing evolving best-practice risk-management techpotential opt-in banks in the United States will be niques in every significant area of banking activity. having preliminary discussions with their supervisors By aligning supervision and regulation with these to develop a work plan and schedule. As noted ear- techniques, the proposed new framework represents a lier, at least one additional quantitative impact study major step forward in protecting the U.S. financial will be conducted, starting in 2004, so that U.S. system and those of other nations. Basel II will also supervisors can be more certain of the impact of the provide strong incentives for banks to continue proposed changes on individual banks and the bank- improving their internal risk-management capabiliing system. ties and will give supervisors the tools to focus on As currently planned, core and opt-in banks will be emerging problems and issues more rapidly than is asked by late 2004 to develop an action plan leading now possible. • 9. These white papers and many other documents related to Basel II are available on the Board's web site. See www.federalreserve.gov/ generalinfo/basel2/default.htm. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 Announcements FEDERAL OPEN MARKET COMMITTEE primary and secondary credit programs introduced DIRECTIVE in January. It also reiterates well-established supervisory policies on sound liquidity contingency plan- The Federal Open Market Committee decided on ning, and discusses sound practices in using primary August 12, 2003, to keep its target for the federal credit program borrowings in liquidity contingency funds rate at 1 percent. plans. The Committee continues to believe that an accom- Adequate liquidity contingency planning is critical modative stance of monetary policy, coupled with to the ongoing maintenance of the safety and soundstill-robust underlying growth in productivity, is pro- ness of any financial institution. The guidance notes viding important ongoing support to economic activ- that sound liquidity contingency plans ensure adeity. The evidence accumulated over the intermeeting quate diversification of the potential sources of period shows that spending is firming, although labor funds to be used in a contingency. By enhancing the market indicators are mixed. Business pricing power availability of discount window credit, the Federal and increases in core consumer prices remain muted. Reserve's new primary credit program offers deposi- The Committee perceives that the upside and tory institutions an additional source of backup funds downside risks to the attainment of sustainable for managing short-term liquidity risks and thus can growth for the next few quarters are roughly equal. In enhance the diversification of contingency funds. contrast, the probability, though minor, of an unwel- The guidance notes that appropriate use of primary come fall in inflation exceeds that of a rise in infla- credit for contingency situations requires institutions tion from its already low level. The Committee to ensure that (1) the necessary documentation and judges that, on balance, the risk of inflation becoming collateral arrangements are in place; (2) primary undesirably low is likely to be the predominant con- credit lines are periodically tested; (3) viable take-out cern for the foreseeable future. In these circum- or exit strategies exist to replace primary credit borstances, the Committee believes that policy accom- rowings; and (4) appropriate cost-benefit analyses modation can be maintained for a considerable are conducted in light of the cost of primary credit period. borrowings relative to other sources of short-term Voting for the FOMC monetary policy action were: contingency funds. Alan Greenspan, Chairman; Ben S. Bernanke; Finally, the guidance notes that occasional use of Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W. primary credit for short-term contingency funding Ferguson, Jr.; Edward M. Gramlich; Jack Guynn; should be viewed as appropriate and unexceptional Donald L. Kohn; Michael H. Moskow; Mark W. by both management and supervisors. At the same Olson; Robert T. Parry; and Jamie B. Stewart, Jr. time, the guidance emphasizes that the primary facility is only one of many tools institutions may use in managing their backup liquidity needs, and that insti- GUIDANCE ON APPROPRIATE USE OF tutions should maintain access to a diversified array DISCOUNT WINDOW of funding sources. The use of primary credit, or any other potential source of contingency funding, is a The federal banking, thrift, and credit union regula- management decision that must be made in the contory agencies on July 23, 2003, issued guidance on text of safe and sound management practices. the appropriate use of the Federal Reserve's new The guidance is being issued by the Board of primary credit discount window program in deposi- Governors of the Federal Reserve System, the Fedtory institutions' liquidity risk management and con- eral Deposit Insurance Corporation, the Office of tingency planning. the Comptroller of the Currency, the Office of Thrift The guidance provides background on the Federal Supervision, and the National Credit Union Reserve's discount window programs, including new Administration. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

407 AMENDMENTS TO REGULATION CC, COMMENT REQUESTED ON OFFICIAL APPENDIX A INTERPRETATION OF ANTI-TYING RESTRICTIONS The Federal Reserve Board on August 28, 2003, The Federal Reserve Board on August 25, 2003, announced amendments to appendix A of Regulation requested public comment on an official interpreta- CC, effective November 1, 2003, that reflect the tion of the anti-tying restrictions in section 106 of the restructuring of the Federal Reserve's check process- Bank Holding Company Act Amendments of 1970 ing operations in the Fourth District. These amend- and related supervisory guidance. ments are the first in a series of amendments to Section 106 generally prohibits a bank from condiappendix A that will take place through the end of tioning the availability or price of one product on a 2004, associated with the previously announced requirement that the customer also obtain another restructuring of the Reserve Banks' check processing product from the bank or an affiliate. The Board's operations. proposed interpretation of section 106 provides bank- Appendix A provides a routing number guide that ing organizations and their customers a comprehenhelps depository institutions determine the maximum sive guide to the special anti-tying restrictions applipermissible hold periods for most deposited checks. cable to banks under section 106. The related As of November 1, 2003, the Pittsburgh office of the supervisory guidance describes the types of policies Federal Reserve Bank of Cleveland no longer will and procedures that should help banks ensure and process checks, and banks currently served by that monitor their compliance with section 106. office for check processing purposes will be reas- The Board also proposed to adopt an exception signed to the Reserve Bank's head office in Cleve- under section 106 for the financial subsidiaries of land. To reflect this operational change, the final rule state nonmember banks. The exception would treat deletes the reference in appendix A to the Pittsburgh financial subsidiaries of state nonmember banks, like office and reassigns the routing numbers listed there- financial subsidiaries of national and state member under to the Reserve Bank's head office. As a result banks under current law, as an affiliate (and not a of this change, some checks deposited in the affected subsidiary) of the parent bank for purposes of section regions that currently are nonlocal checks will 106. become local checks that are subject to shorter per- The proposed interpretation, supervisory guidance, missible hold periods. The final rule also makes other and financial subsidiary exception will be published minor technical changes to appendix A and to the in the Federal Register. Regulation CC Commentary (appendix E). FINAL RULES ISSUED ON DISCIPLINARY ANNUAL ADJUSTMENT OF FEE-BASED TRIGGER ACTIONS AGAINST ACCOUNTANTS AND AMOUNT FOR ADDITIONAL DISCLOSURE ACCOUNTING FIRMS PERFORMING CERTAIN REQUIREMENTS AUDIT SERVICES The Federal Reserve Board on August 19, 2003, The federal bank and thrift regulatory agencies on published its annual adjustment of the dollar amount August 8, 2003, issued final rules governing their that triggers additional disclosure requirements under authority to take disciplinary actions against indepenthe Truth in Lending Act for home mortgage loans dent public accountants and accounting firms that that bear rates or fees above a certain amount. perform audit and attestation services required by The dollar amount of the fee-based trigger has section 36 of the Federal Deposit Insurance Act. been adjusted to $499 for 2004 based on the annual Proposed rules were published for comment in the percentage change reflected in the consumer price Federal Register in January 2003. index that was in effect on June 1, 2003. The adjust- The final rules, which take effect on October 1, ment is effective January 1, 2004. 2003, establish procedures under which the agencies The Home Ownership and Equity Protection Act can, for good cause, remove, suspend, or bar an of 1994 bars credit terms such as balloon payments accountant or firm from performing audit and attestaand requires additional disclosures when total points tion services for insured depository institutions with and fees payable by the consumer exceed the fee- assets of $500 million or more. The rules permit based trigger (initially set at $400 and adjusted annu- immediate suspensions in limited circumstances. ally) or 8 percent of the total loan amount, whichever The rules provide that certain violations of law, is larger. negligent conduct, reckless violations of professional Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 Federal Reserve Bulletin • September 2003 standards, or lack of qualifications to perform audit- and the second describes draft supervisory expectaing services may be considered good cause to tions for operational risk management. remove, suspend, or bar an accountant or firm from Comments on the two documents will be accepted providing audit services for banking organizations by the Office of the Comptroller of the Currency, the subject to section 36. Also, the rules prohibit an Board of Governors of the Federal Reserve System, accountant or accounting firm from performing audit the Federal Deposit Insurance Corporation, and the services if the accountant or firm has been removed, Office of Thrift Supervision through November 3, suspended, or debarred by one of the agencies, or if 2003. the U.S. Securities and Exchange Commission or the Public Company Accounting Oversight Board has taken certain disciplinary actions against the accoun- PROPOSAL FOR INTERAGENCY GUIDANCE ON tant or firm. RESPONSE PROGRAMS TO PROTECT AGAINST The rules are being issued by the Board of IDENTITY THEFT Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of The federal bank and thrift regulatory agencies on the Comptroller of the Currency, and the Office of August 12, 2003, requested public comment on pro- Thrift Supervision. The rules amend each agency's posed guidance that would require financial institurules of practice separately but are substantively tions to develop programs to respond to incidents of identical. unauthorized access to customer information, including procedures for notifying customers under certain circumstances. The proposed guidance interprets the interagency PUBLICATION OF DOCUMENTS RELATED TO customer information security guidelines, issued in IMPLEMENTATION OF THE BASEL CAPITAL February 2001, that requires financial institutions to ACCORD implement information security programs designed to protect their customers' information. The proposed The four federal bank and thrift regulatory agencies interpretation describes the components of a response announced on August 4, 2003, the publication of program and sets a standard for providing notice to joint Federal Register notices and requests for com- customers affected by unauthorized access to or use ment on two interagency documents related to the of customer information that could result in substanproposed implementation of the new Basel Capital tial harm or inconvenience to those customers, Accord in the United States. thereby reducing the risk of losses due to fraud or Earlier this month, the agencies approved issuance identity theft. of the two documents for public comment. The proposed guidance states that "an institution The new accord, which is being developed by the should notify affected customers when it becomes Basel Committee on Banking Supervision, builds on aware of unauthorized access to sensitive customer and, for certain banks, would replace the Basel Capi- information unless the institution, after an approprital Accord of 1988, which is the framework for ate investigation, reasonably concludes that misuse is capital adequacy standards for large, internationally unlikely to occur and takes appropriate steps to safeactive banks and the basis for the risk-based capital guard the interests of affected customers, including adequacy standards now in place for all U.S. banks monitoring affected customers' accounts for unusual and bank holding companies. or suspicious activity." The first document, an advance notice of proposed The Board of Governors of the Federal Reserve rulemaking, sets forth for public comment the agen- System, the Federal Deposit Insurance Corporation, cies' current views on a proposed framework for the Office of the Comptroller of the Currency, and the implementing the revised capital accord in the United Office of Thrift Supervision are requesting public States. Under the proposal, internationally active comment on all aspects of this proposal, including banks meeting certain criteria would be subject to the whether the agencies have identified the appropriate advanced internal ratings-based approach for credit standard for financial institutions to provide notice to risk and the advanced measurement approaches for their customers. operational risk. Comments on the proposed guidance are requested The second document contains two sections. The by October 14, 2003. Specific information on how to first section sets forth draft supervisory guidance on file a comment is contained in the Federal Register internal ratings-based systems for corporate credits, notice. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 409 NEW INTERAGENCY ELECTRONIC FILING of responsible credit management," said Treasury SYSTEM FOR BENEFICIAL OWNERSHIP REPORTS Assistant Secretary for Financial Institutions Wayne A. Abernathy. "Wise management of per- The Federal Deposit Insurance Corporation (FDIC), sonal credit is vitally important to reaching goals the Federal Reserve Board (FRB), and the Office of such as home ownership, higher education, and small the Comptroller of the Currency (OCC) announced business development." on July 28, 2003, a new interagency electronic filing "Credit must be managed carefully and these consystem that will allow faster and easier submission cepts offer guidance on how to do so," said Federal and public retrieval of beneficial ownership reports Reserve Board Governor Edward M. Gramlich. "The filed by directors, officers, and principal shareholders fundamentals of money management can help people of institutions (insiders) whose equity securities are make smart decisions that promote their own wellregistered with the FDIC, the FRB, and the OCC. being and, on a broader scale, foster a more efficient The new electronic system, which became avail- economy." able on July 30, is an important step in the agencies' Participants in the May 22 panel discussion, ongoing efforts to streamline the filing and retrieval chaired by Assistant Secretary Abernathy and Goverof reports filed with the agencies under the Securities nor Gramlich, included representatives from the Exchange Act of 1934. It will also reduce burden on National Foundation for Credit Counseling, the Assoinsiders who must file these reports within two busi- ciation for Financial Counseling and Planning Educaness days of completing a transaction in equity secu- tion, the In-Charge Institute, the American Bankers rities of the institution. Association, America's Community Bankers, the Although filing under the new system will be vol- Credit Union National Association, the Fannie Mae untary initially, the agencies encourage the use of the Foundation, Freddie Mac, American Express, Masterelectronic filing system as soon as practicable. The Card, Visa, the Community Financial Services Assoagencies will issue additional guidance making elec- ciation of America, the Consumer Federation of tronic filing of beneficial ownership reports man- America, the National Council of La Raza, AARP, datory, as required by the Sarbanes-Oxley Act of and College Parents of America. 2002. The issue of credit management is one of four areas of focus for the Treasury Department's Office of Financial Education (OFE), established in 2002. IDENTIFICATION OF TOP FIVE FUNDAMENTALS The OFE works to promote access to financial educa- FOR MANAGEMENT OF PERSONAL CREDIT tion programs so that Americans obtain the practical knowledge and skills that will enable them to make The Treasury Department and the Federal Reserve informed financial choices throughout their lives. The Board on August 13, 2003, announced the top five OFE chairs the Federal Government Financial Educafundamental practices that consumers should follow tion Coordinating Group. to manage their personal credit. As the agency with responsibility for the Truth in During a May 22, 2003, credit management panel Lending Act regulations, the Federal Reserve has discussion hosted by the Treasury and the Federal worked to promote access to credit and fair lending Reserve and attended by representatives of financial for underserved consumers and communities. In services organizations and community and consumer 2000, the Federal Reserve hosted a discussion on best groups, consensus was reached on the following five practices in consumer credit education, and through fundamental practices: its web site and consumer education materials is working to ensure that consumers know their rights 1. Build savings to avoid high-cost debt and and responsibilities in credit transactions. improve payment options. 2. Pay bills on time. 3. Pay more than the minimum payment. ENFORCEMENT ACTIONS 4. Comparison shop for credit and obtain only the credit you need. The Federal Reserve Board and the New York State 5. Understand your credit history and how it Banking Department on July 28, 2003, jointly affects you. announced the execution of a written agreement among J.P Morgan Chase & Co., New York, New "These fundamentals are an important first step York, the Federal Reserve Bank of New York, and toward educating all Americans about the importance the New York State Banking Department. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 Federal Reserve Bulletin • September 2003 The written agreement follows a special review of tinue to strengthen risk-management practices, partransactions involving J.R Morgan Chase & Co. and ticularly those associated with complex structuredits subsidiaries and the Enron Corporation, Houston, finance transactions. Texas. The written agreement requires J.R Morgan The Federal Reserve Board's enforcement action Chase & Co. on its own behalf and on behalf of its was coordinated with actions being taken on July 28, subsidiaries to continue to take measures to 2003, by the New York County District Attorney, the strengthen risk-management practices, particularly U.S. Securities and Exchange Commission, and the those associated with complex structured-finance Office of the Comptroller of the Currency. transactions. The Federal Reserve Board's and New York State Banking Department's enforcement action was coor- STAFF CHANGES dinated with actions being taken on July 28, 2003, by the New York County District Attorney and the U.S. Effective August 1, 2003, H. Fay Peters, Deputy Securities and Exchange Commission. Director of the Management Division, began serving as Acting Director, overseeing the division, which The Federal Reserve Board on July 28, 2003, provides Human Resources, Planning, Finance, announced the execution of a written agreement Accounting, Facilities, and Security services to the between Citigroup, Inc., New York, New York, and Board. the Federal Reserve Bank of New York. David E. Lindsey, Deputy Director of the Division The written agreement follows a special review of of Monetary Affairs and Associate Economist of transactions involving Citigroup and its subsidiaries the Federal Open Market Committee for nearly two and the Enron Corporation, Houston, Texas. decades, retired on September 1, 2003, after twenty- The written agreement requires Citigroup on its nine years of Board service. • own behalf and on behalf of its subsidiaries to con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

411 Legal Developments FINAL RULE—AMENDMENT TO REGULATION A Federal Reserve Bank Rate Effective The Board of Governors of the Federal Reserve System Boston 2.00 June 25, 2003 (Board) is amending 12 C.F.R. Part 201, its Regulation A New York 2.00 June 25, 2003 Philadelphia 2.00 June 26, 2003 (Extensions of Credit by Federal Reserve Banks). The Cleveland 2.00 June 26, 2003 Board has adopted final amendments to its Regulation A to Richmond 2.00 June 26, 2003 Atlanta 2.00 June 26, 2003 reflect the Board's approval of a decrease in the primary Chicago 2.00 June 26, 2003 St. Louis 2.00 June 26, 2003 credit rate at each Federal Reserve Bank. The secondary Minneapolis 2.00 June 26, 2003 credit rate at each Reserve Bank automatically decreased Kansas City 2.00 June 25, 2003 Dallas 2.00 June 26, 2003 by formula as a result of the Board's primary credit rate San Francisco 2.00 June 25, 2003 action. In addition, the Board is inserting a footnote to section 201.51 clarifying that the rates described in that sec- (b) Secondary credit. The interest rates for secondary tion apply to both advances and discounts made under credit provided to depository institutions under secthe primary, secondary, and seasonal credit programs. The tion 201.4(b) are: Board's amendments also correct a typographical error in section 201.51(c). Federal Reserve Bank Rate Effective Effective July 10, 2003, 12 C.F.R. Part 201 is amended as follows. The rate changes for primary and secondary Boston 2.50 June 25, 2003 New York 2.50 June 25, 2003 credit were effective on the dates specified in 12 C.F.R. Philadelphia 2.50 June 26, 2003 201.51, as amended. Cleveland 2.50 June 26, 2003 Richmond 2.50 June 26, 2003 Atlanta 2.50 June 26, 2003 Part 201—Extensions of Credit by Federal Reserve Chicago 2.50 June 26, 2003 St. Louis 2.50 June 26, 2003 Banks Minneapolis 2.50 June 26, 2003 Kansas City 2.50 June 25, 2003 Dallas 2.50 June 26, 2003 1. The authority citation for Part 201 continues to read as San Francisco 2.50 June 25, 2003 follows: (c) Seasonal credit. The rate for seasonal credit extended Authority: 12 U.S.C. 248(i)-(j), 343 et seq., 347a, 347b, to depository institutions under section 201.4(c) is a 347c, 348 et seq., 357, 374, 374a, and 461. flexible rate that takes into account rates on market sources of funds. 2. Section 201.51 is amended by revising paragraphs (a), (b), and (c) to read as follows: ORDERS ISSUED UNDER BANK MERGER ACT Section 201.51—Interest rates applicable to credit extended by a Federal Reserve Bank1 Mainstreet Bank Bunceton, Missouri (a) Primary credit. The interest rates for primary credit provided to depository institutions under sec- Order Approving Establishment of a Branch tion 201.4(a) are: Mainstreet Bank, Bunceton ("Bank"), a state member bank, has given notice under section 9 of the Federal Reserve Act ("Act") (12 U.S.C. §321 et seq.) of its intent to establish a branch at Bank's current main office in Bunceton at 101 Main Street, and to redesignate its existing branch at 301 East Broadway in Ashland as its main office, all in Missouri. Notice of the proposal, affording interested persons an 1. The primary, secondary, and seasonal credit rates described in opportunity to submit comments, has been published in this section apply to both advances and discounts made under the primary, secondary, and seasonal credit programs, respectively. accordance with the Board's Rules of Procedure (12 C.F.R. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 Federal Reserve Bulletin • September 2003 262.3(b)). The time for filing comments has expired, and CRA by its appropriate federal supervisor.2 Bank received the Board has considered the notice and all comments a "satisfactory" rating at its most recent CRA examination received in light of the factors specified in the Act. by the Federal Reserve Bank of Kansas City, as of March 3, Bank is among the smaller banking organizations in 2003. Missouri, controlling approximately $14 million in deposits, representing less than 1 percent of total deposits in B. Branch Closing insured depository institutions in the state1 Bank is a wholly owned subsidiary of Calvert Financial Corporation, The Board received a comment from the Bunceton City Jefferson City, Missouri. Council ("Council") opposing the proposal. The Council expressed the concern that Bank could close the proposed Considerations Under the Federal Reserve Act Bunceton branch at any time, which would seriously harm the city.3 Section 9(4) of the Act (12 U.S.C. §322) requires the Bank has stated that there are no plans to close the Board, when acting on a branch application, to consider the Bunceton location. To the contrary, Bank indicated that financial condition of the applying bank, the general char- since the current ownership group acquired control of acter of its management, and whether its corporate powers Bank in March 2000, banking services at the Bunceton are consistent with the purposes of Act. location have been enhanced by extending banking hours, eliminating monthly service charges on checking accounts, The Board has carefully reviewed the factors it is and extensively remodeling and expanding the facility. required to consider for the establishment of a branch Bank also noted that it intends to continue existing services under section 9 of the Act in light of all the facts of record. at this location if the proposal is approved. As part of its consideration, the Board has reviewed reports of examination and other supervisory information. Based Bank has represented that it would follow its existing on all the facts of record, the Board has concluded that the branch closure policy before proposing to close any branch. statutory factors are consistent with approval of the notice. Under this policy, Bank would review a number of factors before closing or consolidating a branch, including the Convenience and Needs Considerations impact on the community, the business viability of the branch, and the impact on access to credit. In acting on a notice to establish a branch, the Board also is The Board also has considered that federal banking law required to take into account the convenience and needs of provides a specific mechanism for addressing branch closthe community to be served, including a bank's record ings. Federal law requires an insured depository instituunder the Community Reinvestment Act ("CRA") tion to provide notice to the public and to the appropriate (12 U.S.C. §2901 et seq.). The CRA requires the federal federal supervisory agency before closing a branch.4 Thus, financial supervisory agencies to encourage financial insti- the commenter would be afforded the opportunity to tutions to help meet the credit needs of the local communi- address any future branch closing proposal in the context ties in which they operate, consistent with their safe and of a branch closing notice. In addition, the Board notes sound operation, and requires the appropriate federal super- that, as the appropriate federal supervisor of Bank, Reserve visory authority to assess the institution's record of meet- Bank examiners would continue to review Bank's branch ing the credit needs of its entire community, including low- closing record in the course of conducting CRA perforand moderate-income neighborhoods, in evaluating branch mance evaluations. applications. The Board has carefully considered the effect of the proposal on the convenience and needs of the C. Conclusion on Convenience and Needs communities served by Bank in light of all the facts of Considerations record, including a public comment on the proposal, and Bank's CRA performance record. The Board has considered carefully the entire record as it relates to convenience and needs considerations, including the comment received, information received from Bank, A. CRA Performance Examination 2. See Interagency Questions and Answers Regarding Community As provided in the CRA, the Board has evaluated the Reinvestment, 66 Federal Register 36,620 and 36,639 (2001). performance of Bank in light of examinations by the appro- 3. The Council viewed Bank as an entity essential to the Bunceton priate federal supervisor of its CRA performance record. community and was apprehensive that closing the Bunceton location An institution's most recent CRA performance evaluation might lead to closure of the city's school. is a particularly important consideration in the applications 4. Section 42 of the Federal Deposit Insurance Act (12 U.S.C. § 183 lr-1), as implemented by the Joint Policy Statement Regarding process because it represents a detailed, on-site evaluation Branch Closings (64 Federal Register 34,844 (1999)), requires that a of the institution's overall record of performance under the bank provide the public with at least 30 days' notice and the appropriate federal supervisory agency with at least 90 days' notice before the date of a proposed branch closing. The bank also is required to provide reasons and other supporting data for the closure, consistent 1. Deposit and state ranking data are as of June 30, 2002. Insured with the institution's written policy for branch closings. As noted depository institutions include all insured banks, savings banks, and above, Bank indicates that it has no plans to close the Bunceton savings associations. banking location. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 413 Bank's most recent CRA performance examination, and ditions imposed in writing in connection with its findings confidential supervisory information. Based on all the and decision and, as such, may be enforced in proceedings facts of record, the Board concludes that convenience and under applicable law. needs considerations, including Bank's record of perfor- Approval of this notice is subject to the establishment mance under the CRA, are consistent with approval of the of the proposed branch within one year of the date of this proposal. order, unless such period is extended by the Board or under authority delegated by the Board. Conclusion By order of the Board of Governors, effective July 11, 2003. Based on the foregoing and all the facts of record, the Board has determined that the notice should be, and hereby Voting for this action: Chairman Greenspan, Vice Chairman Ferguis, approved. The Board's approval is specifically condi- son, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn. tioned on Bank's compliance with all commitments made in connection with the proposal. The commitments and ROBERT DEV. FRIERSON conditions relied on by the Board are deemed to be con- Deputy Secretary of the Board 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 Alapaha Holding Company, Bank of Alapaha, Atlanta July 22, 2003 Alapaha, Georgia Alapaha, Georgia America Bancshares, Inc., Sun Country Bank, San Francisco July 9, 2003 Newport, Minnesota Victorville, California The Bank Holdings, Nevada Security Bank, San Francisco July 1, 2003 Reno, Nevada Reno, Nevada Community State Bank Employee Union Bancorporation, Inc., Chicago July 22, 2003 Stock Ownership Plan and Trust, Union Grove, Wisconsin Union Grove, Wisconsin Community State Bank, Union Grove, Wisconsin Continental Bancorporation, Continental Bank, San Francisco July 3, 2003 Salt Lake City, Utah Salt Lake City, Utah First Advantage Bancshares, Inc., First Advantage Bank, Minneapolis July 18, 2003 Coon Rapids, Minnesota Coon Rapids, Minnesota F.N.B. Corporation, Sun Bancorp, Inc., Atlanta July 11, 2003 Naples, Florida Lewisburg, Pennsylvania Sun Bank, Lewisburg, Pennsylvania Frederick County Bancorp, Inc., Frederick County Bank, Richmond July 10, 2003 Frederick, Maryland Frederick, Maryland GB&T Bancshares, Inc., Baldwin Bancshares, Inc., Atlanta July 14, 2003 Gainesville, Georgia Milledgeville, Georgia First National Bank of the South, Milledgeville, Georgia Independence Bancorp, I-Bank, St. Louis July 10, 2003 New Albany, Indiana Louisville, Kentucky Harrodsburg First Financial Bancorp, Inc., Harrodsburg, Kentucky Liberty Financial Services, Inc., First American Bank, Atlanta July 8, 2003 New Orleans, Louisiana Jackson, Mississippi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 Federal Reserve Bulletin • September 2003 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Maple Financial Holding Company, Maple Bank, Minneapolis July 18, 2003 Champlin, Minnesota Champlin, Minnesota Marquette Financial Companies, Valley Bancorp, Inc., Minneapolis July 15, 2003 Minneapolis, Minnesota Phoenix, Arizona Valley Bank of Arizona, Phoenix, Arizona PeoplesBancorp, MHC, PeoplesBank, Boston July 7, 2003 Holyoke, Massachusetts Holyoke, Massachusetts Peoples Savings Bank, Holyoke, Massachusetts Peoples Bancshares, Inc., MidAmerican Bancshares, Inc. Kansas City July 17, 2003 Kansas City, Missouri Harrisonville, Missouri Platte County Bancshares, Inc. Platte City, Missouri Traditions Bancshares, Inc., Traditions Bank, Atlanta July 18, 2003 Cullman, Alabama Cullman, Alabama Weed Investment Group, Inc., The Eastern Colorado Bank, Kansas City July 1, 2003 Cheyenne Wells, Colorado Cheyenne Wells, Colorado Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date BTC Financial Corporation, Midamerica Investment Advisory Chicago July 24, 2003 Des Moines, Iowa Group, Inc., Midamerica Financial Corporation, Des Moines, Iowa Des Moines, Iowa Community Bank System, Inc., PricewaterhouseCoopers, LLP, New York July 14, 2003 Dewitt, New York Syracuse, New York Franklin Bancorp, Inc., Sunrise Community Banks, Minneapolis July 8, 2003 St. Paul, Minnesota St. Paul, Minnesota 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 Atlantic Central Bankers Bank, ACB Bank, NJ, Philadelphia July 11, 2003 Camp Hill, Pennsylvania Carlstadt, New Jersey Gateway Bank & Trust Co., National Bank of Commerce, Richmond July 17, 2003 Elizabeth City, North Carolina Memphis, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 415 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Community Bank & Trust v. United States, No. 01-571C Federal Reserve Banks in which the Board of Governors is (Ct. Fed. CI., filed October 3, 2001). Action challenging not named a party. on constitutional grounds the failure to pay interest on reserve accounts held at Federal Reserve Banks. Tavera v. Von Nothaus, et ai, No. 03-763 (D. Oregon, filed Artis v. Greenspan,No. 01-CV-0400 (EGS) (D.D.C., com- June 5, 2003). Civil rights action for violation of rights plaint filed February 22, 2001). Employment discriminain connection with the plaintiff's prosecution for passing tion action. On August 15, 2001, the district court con- "Liberty dollar coins" as lawful money. solidated the action with Artis v. Greenspan, No. 99-CV- Apffel v. Board of Governors, No. 03-343 (S. D. Texas, 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 Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 Federal Reserve Bulletin • September 2003 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 US. government securities dealers— credit Positions and financing A6 Reserves and borrowings—Depository A28 Federal and federally sponsored credit institutions agencies—Debt outstanding Securities Markets and Corporate Finance Policy Instruments A29 New security issues—Tax-exempt state and local A7 Federal Reserve Bank interest rates governments and U.S. corporations A8 Reserve requirements of depository institutions A30 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A30 Domestic finance companies—Assets and liabilities Federal Reserve Banks A31 Domestic finance companies—Owned and managed A10 Condition and Federal Reserve note statements receivables All Maturity distribution of loans and securities Real Estate Monetary and Credit Aggregates A32 Mortgage markets—New homes A12 Aggregate reserves of depository institutions A3 3 Mortgage debt outstanding and monetary base A13 Money stock measures Consumer Credit A34 Total outstanding Commercial Banking Institutions— A34 Terms Assets and Liabilities A15 All commercial banks in the United States Flow of Funds 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

27 Federal Reserve Bulletin • September 2003 INTERNATIONAL STATISTICS Securities Holdings and Transactions A54 Foreign transactions in securities Summary Statistics A55 Marketable U.S. Treasury bonds and A44 U.S. international transactions notes—Foreign transactions A44 U.S. reserve assets A45 Foreign official assets held at Federal Reserve Interest and Exchange Rates Banks A56 Foreign exchange rates A45 Selected U.S. liabilities to foreign official institutions A57 GUIDE TO SPECIAL TABLES AND STATISTICAL RELEASES Reported by Banks in the United States A45 Liabilities to, and claims on, foreigners SPECIAL TABLES A46 Liabilities to foreigners A58 Residential lending reported under the A48 Banks' own claims on foreigners Home Mortgage Disclosure Act, 2002 A49 Banks' own and domestic customers' claims on A69 Disposition of applications for foreigners private mortgage insurance, 2002 A70 Small loans to businesses and farms, 2002 Reported by Nonbanking Business A73 Community development lending reported Enterprises in the United States under the Community Reinvestment Act, 2002 A50 Liabilities to unaffiliated foreigners A52 Claims on unaffiliated foreigners A74 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 • September 2003 1.10 RESERVES AND MONEY STOCK MEASURES Percent annual rate of change, seasonally adjusted1 2002 2003 2003 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q3 Q4 Qi Q2 Feb. Mar. Apr. May' June Reserves of depository institutions1 1 Total -2.2 1.0 11.3 6.7 2.6 4.5 -4.9 5.3 53.0 2 Required -4.9 -1.4 11.4 8.1 -5.2 14.9 -1.9 2.8 48.0 3 Nonborrowed -3.7 1.9 12.8 6.2 2.7 4.6 -5.1 4.5 50.0 4 Monetary base3 6.9 5.1 7.6 5.9 9.8 6.7 5.3 5.1 3.4 Concepts of money4 5 Ml 3.0 4.9 7.5' 9.2 20.3' 3.4' .4' 20.3 13.3 6 M2 8.8 7.0 6.5 8.5 11.3 2.9' 4.7 17.6 9.3 7 M3 7.1' 7.7 5.6' 6.1 6.7' 3.9' 2.1' 12.3 8.7 Nontransaction components 8 In M25 10.4 7.6 6.3 8.3 9.0' 2.8' 5.9' 16.9 8.2 9 In M3 only6 3.4r 9.2 3.6' .8 -3.2' 6.0' -3.6' .8 7.4 Time and savings deposits Commercial banks 10 Savings, including MMDAs 20.1 16.8 13.6 16.5 16.0 4.3 17.6' 23.4 21.4 11 Small time7 ^1.0 -7.3 -7.2 -8.7 -7.4' -6.8 -8.7' -10.4 -11.3 12 Large time8 '1 .5' -5.6 -4.5' 5.6 -4.0' 9.5' 3.0' 13.4 .0 Thrift institutions 13 Savings, including MMDAs 20.5 20.0 22.0' 24.5 26.9 19.5' 18.9 40.2 12.9 14 Small time7 -10.5 -6.0 -6.5 -7.3 -10.0 -6.0 -4.5' -9.7 -11.1 15 Large time8 -2.6 11.9 8.9 -2.1 .0 -8.1 2.0 -10.2 11.3 Money market mutual funds 16 Retail .9 -6.3 -8.8 -7.7 -4.6 -5.5 -19.7 7.7 -9.4 17 Institution-only -.7 2.1 -4.9 -14.7 -19.8 -13.1 -22.4 -20.1 20.3 Repurchase agreements and eurodollars 18 Repurchase agreements10 27.5 45.7 29.8 23.7 36.4 44.6 18.5 13.4 3.1 19 Eurodollars10 -3.5 28.9 18.8' 19.4 5.6' 20.4' 21.6' 42.4 -22.9 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- time deposits, and retail money fund balances, each seasonally adjusted separately, and ing during preceding month or quarter. adding this result to seasonally adjusted Ml. 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with regula- M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2) tory changes in reserve requirements (See also table 1.20.) balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom component of the money stock, plus (3) (for all quarterly reporters on the "Report of and Canada. Excludes amounts held by depository institutions, the U.S. government, money Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference by summing large time deposits, institutional money fund balances, RP liabilities, and between current vault cash and the amount applied to satisfy current reserve requirements. eurodollars, each seasonally adjusted separately, and adding this result to seasonally adjusted 4. Composition of the money stock measures is as follows: M2. Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all money fund balances, each seasonally adjusted separately. commercial banks other than those owed to depository institutions, the U.S. government, and 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities foreign banks and official institutions, less cash items in the process of collection and Federal (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of term) of U.S. addressees, each seasonally adjusted separately. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, 7. Small time deposits—including retail RPs—are those issued in amounts of less than credit union share draft accounts, and demand deposits at thrift institutions. Seasonally $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions adjusted Ml is computed by summing currency, travelers checks, demand deposits, and are subtracted from small time deposits. OCDs, each seasonally adjusted separately. 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time booked at international banking facilities. deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail 9. Large time deposits at commercial banks less those held by money market funds, money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh depository institutions, the U.S. government, and foreign banks and official institutions. balances at depository institutions and money market funds. 10. Includes both overnight and term. Seasonally adjusted M2 is calculated by summing savings deposits, small-denomination Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.11 RESERVE BALANCES OF DEPOSITORY INSTITUTIONS1 Millions of dollars Average of Average of daily figures for week ending on date indicated daily figures Factor 2003 2003 Apr. May June May 14 May 21 May 28 June 4 June 11 June 18 June 25 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 710,451 714,217 715,547 714,344 711,802 720,472 716,896 713,208 713,851 717,693 7 Securities held outright 645,586 649,309 651,774 647,817 650,403 650,852 651,202 651,585 651,783 651,960 U.S. Treasury2 645,576 649,299 651,764 647,807 650,393 650,842 651,192 651,575 651,773 651,950 4 Bills3 235,465 237,126 238,596 236,754 237,390 237,672 238,010 238,400 238,605 238,790 5 Notes and bonds, nominal3 395,917 397,882 398.853 396,776 398,707 398,853 398,853 398,853 398,853 398,853 6 Notes and bonds, inflation-indexed3 12,814 12,814 12,814 12,814 12,814 12,814 12,814 12,814 12,814 12,814 7 Inflation compensation4 1,380 1,477 1,500 1,463 1,482 1,502 1,514 1,508 1,501 1,493 Federal agency3 10 10 10 10 10 10 10 10 10 10 9 Repurchase agreements5 25,792 26,121 25,074 25,644 24,608 31,857 27,813 23,286 23,179 26,321 10 Loans to depository institutions 30 57 174 51 56 59 76 62 74 407 11 Primary credit 8 4 100 2 2 2 12 2 3 322 12 Secondary credit 0 0 0 0 0 0 0 0 0 0 Seasonal credit 22 53 74 49 54 57 64 61 71 84 14 Float -115 -350 -166 -7 -869 -413 -342 -100 4 22 IS Other Federal Reserve assets 39,158 39,080 38,692 40,839 37,603 38,116 38,147 38,375 38,811 38,983 16 Gold stock 11,043 11,043 11,044 11,043 11,043 11,043 11,044 11,044 11,044 11,044 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 34,852r 34,937' 35,005 34,925' 34,942' 34,959' 34,976 34,990 35,004 35,018 ABSORBING RESERVE FUNDS 19 Currency in circulation 687,355r 690,751' 691,876 689,722' 689,936' 693,612' 692,938 692,182 691,523 691,121 70 Reverse repurchase agreements6 20,639 21,137 22,038 20,641 20,415 21,598 21,987 20,816 21,464 22,714 71 Foreign official and international accounts 20,564 21,137 21,530 20,641 20,415 21,598 21,808 20,816 21,142 21,036 72 Dealers 75 0 508 0 0 0 179 0 321 1,679 23 Treasury cash holdings 356 351 375 343 350 359 376 385 379 368 74 Deposits with Federal Reserve Banks, other than reserve balances 19,183 18,232 18,169 18,775 18,563 17,049' 17,842 17,773 18,555 18,637 7S U.S. Treasury, general account 7,533 6,678 6,747 7,139 6,899 5,543 6,487 6,515 7,147 7,199 76 Foreign official 118 122 157 86 116 160 123 139 88 162 77 Service-related 11,261 11,178 11,028 11,291 11,280 11,104' 11.003 10,878 11,088 11,056 78 Required clearing balances 10,835 10,849 10,832 10,882 10,819 10,819' 10,832 10,832 10,830 10,830 29 Adjustments to compensate for float 426 329 196 409 461 285 170 45 258 226 30 Other 270 254 237 259 266 242 229 241 232 220 31 Other liabilities and capital 20,024 20,300 20,170 20,438 20,280 20,281 19,990 20,190 20,322 20,106 32 Reserve balances with Federal Reserve Banks7 .... 10,989 11,626 11,168 12,592 10,443 15,774' 11,983 10,096 9,855 13,009 End-of-month figures Wednesday figures Apr. May June May 14 May 21 May 28 June 4 June 11 June 18 June 25 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 724,444 719,092 722,933 720,072 713,790 722,207 708,863 722,077 714,955 723,424 0 Securities held outright 647,281 651,127 652,128 647,947 650,735 650,869 651,413 651,613 651,932 652,003 3 U.S. Treasury2 647,271 651,117 652,118 647,937 650,725 650,859 651,403 651,603 651,922 651,993 4 Bills3 236,249 237,933 238,965 236,877 237,568 237,683 238,223 238,430 238,756 238,835 S Notes and bonds, nominal3 396,776 398,853 398,853 396,776 398,853 398,853 398,853 398,853 398,853 398,853 6 Notes and bonds, inflation-indexed3 12,814 12,814 12,814 12,814 12,814 12.814 12,814 12,814 12,814 12,814 7 Inflation compensation4 1,431 1,517 1,485 1,470 1,489 1,508 1,512 1,505 1,498 1,491 8 Federal agency3 10 10 10 10 10 10 10 10 10 10 9 Repurchase agreements5 37,501 30,240 31,750 30,752 26,251 32,000 19,000 32,500 23,000 32,000 10 Loans to depository institutions 35 80 768 60 55 62 65 65 86 95 11 Primary credit 0 15 686 4 1 0 7 0 3 3 12 Secondary credit 0 0 0 0 0 0 0 0 0 0 13 Seasonal credit 35 65 82 56 54 62 58 64 83 92 14 Float -101 -599 -525 302 -1,050 1,172 308 -691 1,131 323 IS Other Federal Reserve assets 39,728 38,244 38,812 41,011 37,800 38,103 38,078 38,591 38,806 39,003 16 Gold stock 11,043 11,044 11,044 11,043 11,043 11,043 11,044 11,044 11,044 11,044 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 34,890' 34,976' 35.032 34,925' 34,942' 34,959' 34,976 34,990 35,004 35,018 ABSORBING RESERVE FUNDS 19 Currency in circulation 688,760r 692,355' 693,282 690,993' 691,948' 694,835' 693,763 693,073 692,509 692,685 20 Reverse repurchase agreements6 20,814 22,285 22,080 21,073 20,709 21,857 21,673 21,211 22,901 21,592 71 Foreign official and international accounts 20,814 22,285 22,080 21,073 20,709 21,857 20,423 21,211 20,651 21,592 77 Dealers 0 0 0 0 0 0 1,250 0 2,250 0 23 Treasury cash holdings 340 375 365 349 356 375 385 381 368 365 74 Deposits with Federal Reserve Banks, other than reserve balances 22,135 17,803' 19,222 18,876 19,262 16,302' 17,448 17,221 19,499 16,987 7S U.S. Treasury, general account 10,583 6,505 6,939 7,199 7,608 4,825 6.126 6,031 8,086 5,306 76 Foreign official 313 79 898 122 126 129 77 80 96 404 77 Service-related 11,008 11,003 11,136 11,291 11,280 11,104' 11,003 10,878 11,088 11,056 78 Required clearing balances 10,829 10,832' 10,838 10,882 10,819 10,819' 10,832 10,832 10,830 10,830 29 Adjustments to compensate for float 179 170 297 409 461 285 170 45 258 226 30 Other 231 217 249 264 247 243 243 233 229 220 31 Other liabilities and capital 20,049 19,973 19,898 20,053 19,968 19.818 19,836 20,119 19,937 20,021 32 Reserve balances with Federal Reserve Banks7 .... 20,479 14,521' 16,364 16,895 9,731 17,222' 3,978 18,306 7,990 20,036 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 US. 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 NonfinancialS tatistics • September 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. Dec. Jan. Feb. Mar. Apr. May' June 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 7,022 9,053 9,926 9,926 10,075 9,860 9,840 10,598 11,405 11,299 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 45,246 43,918 43,368 43,368 46,208' 45,941' 43,087' 41,990' 41,635 41,960 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 31,451 32,024 30,347 30,347 32,794 32,079 30,757 30,574 30,395 30,574 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 13,795 11,894 13,021 13,021 13,414' 13,862' 12,330' 11,416' 11,240 11,385 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 38,473 41,077 40,274 40,274 42,869 41,939 40,597 41,172 41,801 41,874 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 37,046 39,428 38,264 38,264 41,162 39,973 38,961 39,640 40,182 40,018 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 1,427 1,649 2,009 2,009 1,707 1,965 1,636 1,532 1,619 1,856 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnnggggg aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 210 67 80 80 27 25 22 29 55 161 99999 PPPPPrrrrriiiiimmmmmaaaaarrrrryyyyy 12 21 14 8 3 87 1111100000 SSSSSeeeeecccccooooonnnnndddddaaaaarrrrryyyyy 0 0 0 0 0 0 1111111111 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll 111 ' 33 ' 45 ' 45 13 5 8 21 53 74 1111122222 AAAAAdddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt 99 34 35 35 2 Biweekly averages of daily figures for two-week periods ending on dates indicated 2003 Mar. 5 Mar. 19 Apr. 2 Apr. 16 Apr. 30 May 14 May 28 June 11' June 25 July 9 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 10,781 9,502 9,843 9,452 11,852 9,772 13,116 11,050 11,437 11,465 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 43,569' 42,204' 43,917' 41,681' 42,023' 41,431' 41,967' 41,039 42,302 43,029 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 32,043 29,379 31,830 29,833 31,136 29,696 31,211 29,854 30,798 31,534 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 11,526' 12,825' 12,088' 11,848' 10,888' 11,735' 10,757' 11,185 11,504 11,496 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 42,824 38,881 41,672 39,285 42,987 39,468 44,326 40,904 42,235 42,998 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 41,221 37,215 40,058 37,784 41,436 37,924 42,712 38,909 40,631 40,743 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 1,603 1,665 1,614 1,501 1,551 1,543 1,614 1,994 1,604 2,255 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnnggggg aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 21 32 11 33 29 5! 58 69 241 144 99999 PPPPPrrrrriiiiimmmmmaaaaarrrrryyyyy 17 23 3 15 2 3 2 7 163 54 1111100000 SSSSSeeeeecccccooooonnnnndddddaaaaarrrrryyyyy 0 0 0 0 0 0 0 0 0 0 1111111111 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll 5 9 8 18 27 48 56 63 78 90 1111122222 AAAAAdddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt 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 credit' Secondary credit2 Seasonal credit3 Federal Reserve Bank 8/1 O 5 n /0 3 Effective date Previous rate 8/1 O 5 n /0 3 8/1 O 5 n /0 3 Boston 6/25/03 6/25/03 New York . . . 6/25/03 6/25/03 Philadelphia . 6/26/03 6/26/03 Cleveland . . . 6/26/03 6/26/03 Richmond . .. 6/26/03 6/26/03 Atlanta 6/26/03 6/26/03 Chicago 6/26/03 6/26/03 St. Louis 6/26/03 6/26/03 Minneapolis . 6/26/03 6/26/03 Kansas City . 6/25/03 6/25/03 Dallas 6/26/03 6/26/03 San Francisco 6/25/03 6/25/03 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) 2003—June 25 2.00-2.25 2.00 26 2.00 2.00 In effect August 15, 2003 2.00 2.00 Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range (or F.R. Bank Range (or F.R. Bank level)—All of level)—All of Effective date level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Dec. 31, 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 Feb. 3 . . . 5.00 5.00 23 5.50 5.50 23 3.00 3.00 May 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 19 .. . 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 18 ... 5.00 5.00 21 4.50 4.50 2002—Nov. 6 0.75-1.25 0.75 Apr. 18 4.00-4.50 4.00 7 0.75 0.75 20 4.00 4.00 2001—May 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 takes into account rates charged by market sources of funds and ordinarily is reestablished on that are in generally sound financial condition in the judgment of the lending Federal Reserve the first business day of each two-week reserve maintenance period. Bank. 4. Was available until January 8, 2003, to help depository institutions meet temporary 2. Available in appropriate circumstances to depository institutions that do not qualify for needs for funds that could not be met through reasonable alternative sources. For earlier data, primary credit. see the following publications of the Board of Governors: Banking and Monetary Statistics, 3. Available to help relatively small depository institutions meet regular seasonal needs for 1914-1941, and 1941-1970\ and the Statistical Digest, 1970-1979, 1980-1989, and funds that arise from a clear pattern of intrayearly movements in their deposits and loans and 1990-1995. See also the Board's Statistics: Releases and Historical Data web pages that cannot be met through special industry lenders. The discount rate on seasonal credit (http://www.federalreserve.gOv/releases/H 15/data.htm). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • September 2003 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement Type of deposit Net transaction accounts2 1 $0 million-$6 million3 12/26/02 2 More than $6 million-$42.1 million4 12/26/02 3 More than $42.1 million5 12/26/02 4 Nonpersonal time deposits6 5 Eurocurrency liabilities7 12/27/90 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 Nov. Dec. Jan. Feb. Mar. Apr. May U.S. TREASURY SECURITIES2 Outright transactions Treasury bills 1 Gross purchases 8,676 15,503 21,421 250 0 0 4,161 1,863 3,543 1,684 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 477,904 542,736 657,931 51,394 53,374 71,075 53,860 47,424 51,834 76,354 4 For new bills 477,904 542,736 657,931 51,394 53,374 71,075 53,860 47,424 51,834 76,354 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 0 0 0 478 1,318 1,422 786 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 62,025 70,336 89,108 3,688 13,448 6,216 3,214 8,334 8,333 7,228 9 Exchanges -54,656 -72,004 -92,075 -1,419 -12,059 -6,834 -13,313 -8,211 -7,293 -6,999 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 0 339 0 2,127 710 733 1,057 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -52,068 —45,211 -73,093 -2,380 -13,448 -6,216 2,160 -8,334 -8,333 -1,513 14 Exchanges 46,177 64,519 88,276 1,308 12,059 6,834 11,817 8,211 7,293 6,747 Five to ten years 15 Gross purchases 5,871 6,003 5,074 0 314 0 769 522 0 234 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -6,801 -21,063 -11,588 722 0 0 -3,877 0 0 -5,463 18 Exchanges 6,585 6,063 3,800 111 0 0 1,497 0 0 252 More than ten years 19 Gross purchases 5,833 8,531 2,280 0 0 0 0 50 0 0 20 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -3,155 -4,062 -4AT1 -2,030 0 0 -1,497 0 0 -252 22 Exchanges 1,894 1,423 0 0 0 0 0 0 0 0 All maturities 23 Gross purchases 43,670 68,513 54,242 250 653 0 7,534 4,463 5,699 3,761 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 15,369 41,616 54,242 250 653 0 7,534 4,463 5,699 3,761 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 51 120 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 1,143,126 113,501 112,750 135,749 121,896 95,001 112,251 124,741 32 Gross sales 987,501 1,490,838 1,153,876 101,501 101,750 150,499 119,746 90,151 106,500 132,002 Matched sale-purchase agreements 33 Gross purchases 4,415,905 4,722,667 4,981,624 378,381 195,565 0 0 0 0 0 34 Gross sales 4,397,835 4,724,743 4,958,437 377,535 175,820 0 0 0 0 0 Reverse repurchase agreements4 35 Gross purchases 0 0 231,272 0 231,272 392,530 343,748 388,069 451,149 441,555 36 Gross sales 0 0 252,363 0 252,363 389,810 343,395 389,469 452,545 443,025 37 Net change in temporary transactions -79,195 4,800 -8,653 12,847 9,654 -12,029 2 2,200 2,104 -8,731 38 Total net change in System Open Market Account .. -63,877 46,295 45,589 13,096 10,307 -12,029 7,537 6,664 7,803 -4,971 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 NonfinancialS tatistics • September 2003 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 2003 2003 May 28 June 4 June 11 June 18 June 25 Apr. May June Consolidated condition statement ASSETS 1 Gold certificate account 11,039 11.040 11,040 11,040 11,040 11,039 11,040 11,040 2 Special drawing rights certificate account 2.200 2,200 2,200 2,200 2,200 2.200 2,200 2,200 3 Coin 920 909 926 937 941 1.021 924 942 4 Securities, repurchase agreements, and loans 682,931 670,477 684,177 675,017 684,099 684.817 681,447 684,646 5 Securities held outright 650,869 651,413 651,613 651,932 652,003 647,281 651,127 652,128 6 U.S. Treasury2 650,859 651.403 651,603 651,922 651,993 647,271 651,117 652,118 7 Bills3 237,683 238,223 238,430 238,756 238,835 236,249 237,933 238,965 8 Notes and bonds, nominal' 398,853 398,853 398,853 398,853 398,853 396,776 398,853 398,853 9 Notes and bonds, inflation-indexed3 12,814 12.814 12,814 12,814 12,814 12,814 12,814 12,814 10 Inflation compensation4 1,508 1,512 1,505 1,498 1,491 1,431 1,517 1,485 11 Federal agency5 10 10 10 10 10 10 10 10 12 Repurchase agreements5 32,000 19,000 32,500 23,000 32,000 37,501 30,240 31,750 13 Loans 62 65 65 86 95 35 80 768 14 Items in process of collection 10,632 9,883 7,231 8,832 7,461 8,173 5,684 2,330 15 Bank premises 1,581 1,579 1,579 1,580 1,582 1,577 1,579 1,580 16 Other assets 36,514 36,505 37,010 37,243 37,607 38,412 36,689 37,195 17 Denominated in foreign currencies6 18,108 18,093 18,208 18,118 18,079 17,579 18,080 17,849 18 All other7 18,405 18,412 18,802 19,125 19,528 20,832 18,609 19,346 19 Total assets 745,817 732,594 744,164 736,850 744,931 747,239 739,563 739,932 LIABILITIES 20 Federal Reserve notes, net of F.R. Bank holdings 661,167 660.078 659,386 658,805 658,969 655,226 658,674 659,552 21 Reverse repurchase agreements8 21,857 21,673 21,211 22,901 21,592 20,814 22,285 22,080 22 Deposits 33,558 22,192 35,693 27,211 36,986 43,007 32,470 35,806 23 Depository institutions 28,360 15,747 29,349 18,800 31,055 31,880 25,669 27,720 24 U.S. Treasury, general account 4,825 6,126 6,031 8,086 5,306 10,583 6,505 6,939 25 Foreign official 129 77 80 96 404 313 79 898 26 Other 243 243 233 229 220 231 217 249 27 Deferred availability cash items 9.417 8,815 7,755 7,996 7,363 8,142 6,161 2,596 28 Other liabilities and accrued dividends9 2,326 2,305 2,355 2,326 2,382 2,270 2,329 2,227 29 Total liabilities 728,326 715,063 726,400 719,239 727,292 729,460 721,919 722,262 CAPITAL ACCOUNTS 30 Capital paid in 8,574 8,584 8,656 8,657 8,657 8,545 8,575 8,657 31 Surplus 8,380 8.380 8,380 8,380 8,380 8,380 8,380 8,356 32 Other capital accounts 537 566 728 574 601 854 689 657 33 Total capital 17,491 17,530 17,764 17,611 17,639 17,779 17,644 17,670 MEMO 34 Marketable securities held in custody for foreign official and international accounts310 928,892 935,950 936,154 934,711 931,901 893,534 931,570 945,930 35 U.S. Treasury 741,441 747,892 749,192 751,560 748,986 713,499 741,378 760,406 36 Federal agency 187,451 188,059 186,962 183,151 182,915 180,035 190,191 185,524 37 Securities lent to dealers 1,661' 656 318 792 1,497 731 597 4,950 Federal Reserve notes and collateral statement 38 Federal Reserve notes outstanding 760,695' 761,219 762,447 763,602 765,633 762,034 760,717 766,845 39 Less: Notes held by F.R. Banks not subject to collateralization 95,376' 97,120 98,811 100,588 102,310 102,753 97,928 102,69! 40 Federal Reserve notes to be collateralized 665,319' 664,099 663,636 663,014 663,323 659,280 662,789 664,155 41 Collateral held against Federal Reserve notes 665,319' 664.099 663,636 663,014 663,323 659,280 662,789 664,155 42 Gold certificate account 11,039' 11.040 11,040 11,040 11,040 11,039 11,040 11,040 43 Special drawing rights certificate account 2,200' 2,200 2,200 2,200 2,200 2,200 2,200 2,200 44 U.S. Treasury and agency securities pledged11 652,080' 648,732 650,396 649,774 650,083 646,042 649,549 650,915 45 Other eligible assets 0r 2,127 0 0 0 0 0 0 MEMO 46 Total U.S. Treasury and agency securities" 682,869 670,413 684,113 674,932 684,003 684,782 681,367 683,878 47 Less: face value of securities under reverse repurchase agreements12 21,863 21,680 21,222 22,908 21,597 20,821 22,295 22,086 48 U.S. Treasury and agency securities eligible to be pledged 661,006 648,732 662,891 652,023 662,406 663,961 659,072 661,792 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 Loans and Securities Millions of dollars Wednesday End of month TTTyyypppeee ooofff hhhooollldddiiinnnggg aaannnddd mmmaaatttuuurrriiitttyyy 2003 2003 May 28 June 4 June 11 June 18 June 25 Apr. May June 1 Total loans 62 65 65 86 95 35 80 768 2 Within 15 days 49 23 20 72 85 28 66 752 3 16 days to 90 days 14 41 45 13 10 7 14 16 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities1 650,859 651,403 651,603 651,922 651,993 647,271 651,117 652,118 6 Within 15 days 51,749 45,801 45,561 51,004 49,024 46,750 36,449 27,419 7 16 days to 90 days 138,094 143,909 143,282 137,572 139,395 126,284 153,457 153,840 8 91 days to 1 year 153,894 154,845 155,918 156,513 156,748 153,916 154,081 157,337 9 Over 1 year to 5 years 180,470 180,193 180,191 180,189 180,187 188,832 180,472 186,886 10 Over 5 years to 10 years 46,669 46,670 46,668 46,665 46,663 51,538 46,672 46,661 11 Over 10 years 79,983 79,985 79,982 79,979 79,976 79,952 79,987 79,974 12 Total federal agency securities 10 10 10 10 10 10 10 10 13 Within 15 days 0 0 0 0 0 0 0 0 14 16 days to 90 days 0 0 0 0 0 0 0 0 15 91 days to 1 year 10 10 10 10 10 10 10 10 16 Over 1 year to 5 years 0 0 0 0 0 0 0 0 17 Over 5 years to 10 years 0 0 0 0 0 0 0 0 18 Over 10 years 0 0 0 0 0 0 0 0 19 Total repurchase agreements2 32,000 19,000 32,500 23,000 32,000 37,501 30,240 31,750 20 Within 15 days 29,000 14,000 27,500 17,000 29,000 33,500 22,240 23,750 21 16 days to 90 days 3,000 5,000 5,000 6,000 3,000 4,001 8,000 8,000 22 Total reverse repurchase agreements2 21,857 21,673 21,211 22,901 21,592 20,814 22,285 22,080 23 Within 15 days 21,857 21,673 21,211 22,901 21,592 20,814 22,285 22,080 24 16 days to 90 days 0 0 0 0 0 0 0 0 Note. Components may not sum to totals because of rounding. 2. Cash value of agreements classified by remaining maturity of the agreements. 1. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • September 2003 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2002 2003 11999999 22000000 22000011 22000022 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. Nov. Dec. Jan. Feb. Mar. Apr. May June Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 41.81 38.54 41.24 40.22 39.76 40.22 40.73 40.82 40.97 40.81 40.99 42.80 22 NNoonnbboorrrroowweedd rreesseerrvveess44 41.49 38.33 41.18 40.14 39.49 40.14 40.70 40.80 40.95 40.78 40.93 42.64 33 RReeqquuiirreedd rreesseerrvveess 40.51 37.11 39.60 38.21 38.12 38.21 39.02 38.86 39.34 39.27 39.37 40.94 44 MMoonneettaarryy bbaassee55 593.16 584.77 635.62 681.90 677.61 681.90 685.72 691.31 695.14 698.23r 701.18r 703.16 Not seasonally adjusted 5 Total reserves6 41.89 38.53 41.20 40.13 39.05 40.13 42.85 41.94 40.60 41.16 41.79 41.86 6 Nonborrowed reserves 41.57 38.32 41.13 40.05 38.78 40.05 42.83 41.91 40.57 41.14 41.73 41.70 7 Required reserves1 40.59 37.10 39.55 38.12 37.42 38.12 41.15 39.97 38.96 39.63 40.17 40.00 8 Monetary base8 600.72 590.06 639.91 686.23 676.72 686.23 688.33 690.25 693.91 697.83r 701.58' 703.32 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS9 9 Total reserves10 41.65 38.47 41.08 40.27 39.21 40.27 42.87 41.94 40.60 41.17 41.80 41.87 10 Nonborrowed reserves 41.33 38.26 41.01 40.19 38.94 40.19 42.84 41.91 40.58 41.14 41.75 41.71 11 Required reserves 40.36 37.05 39.43 38.26 37.58 38.26 41.16 39.97 38.96 39.64 40.18 40.02 12 Monetary base" 608.02 596.98 648.74 697.15 687.29 697.15 699.25 701.04 705.04 709.10' 712.76' 714.35 13 Excess reserves12 1.30 1.43 1.65 2.01 1.64 2.01 1.71 1.97 1.64 1.53 1.62 1.86 14 Borrowings from the Federal Reserve .32 .21 .07 .08 .27 .08 .03 .03 .02 .03 .06 .16 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. Mar. Apr.' May' June Seasonally adjusted Measures2 1 Ml 1,121.4 1,084.7 1,172.9 1,210.4' 1,237.0' 1,237.4 1,258.3 1,272.2 ? M2 4,649.7 4,931.3 5,444.4 5,791.4' 5,890.1' 5,913.4 6,000.1 6,046.4 3 M3 6,534.9 7,099.2 8,004.4 8,518.4' 8,593.7' 8,608.9 8,697.4 8,760.3 Ml components 4 Currency3 517.7 531.5 581.9 627.3 640.2 664433..11 664455..77 664466..44 Travelers checks4 8.3 8.0 7.8 7.5 7.5 7.4 7.5 7.9 6 Demand deposits5 352.1 306.9 326.1 297.1' 304.4 304.4 315.4 322.4 1 Other checkable deposits6 243.4 238.2 257.2 278.5' 284.9 282.4 289.7 295.4 Nontransaction components 8 In M27 3,528.3 3,846.7 4,271.6 4,581.0' 4,653.1' 4,675.9 4,741.7 4,774.2 9 In M3 only8 1,885.1 2,167.9 2,559.9 2,727.0' 2,703.6' 2,695.5 2,697.3 2,713.9 Commercial banks 10 Savings deposits, including MMDAs 1,288.8 1,422.9 1,734.6 2,047.9' 2,115.2 2,146.3 2,188.2 2,227.3 11 Small time deposits5 634.6 699.5 634.2 591.1 580.6 576.4 571.4 566.0 12 Large time deposits10 " 652.2 718.3 671.1 676.6' 687.7' 689.4 697.1 697.1 Thrift institutions 13 Savings deposits, including MMDAs 452.0 454.3 572.4 714.4 755.3' 767.2 792.9 801.4 14 Small time deposits9 319.5 344.8 339.1 302.1 296.5 295.4 293.0 290.3 15 Large time deposits10 91.9 103.0 114.9 117.3 117.7 117.9 116.9 118.0 Money market mutual funds 1 (SR etail 833.4 925.2 991.3 925.5 905.5 890.6 896.3 889.3 17 Institution-only 634.8 788.8 1,190.3 1,234.5 1,165.8 1,144.0 1,124.8 1,143.8 Repurchase agreements and eurodollars 18 Repurchase agreements12 335.7 363.5 375.0 470.7 493.4 501.0 506.6 507.9 19 Eurodollars12 170.5 194.3 208.6 227.9 239.0' 243.3 251.9 247.1 Not seasonally adjusted Measures2 ?.o Ml 1,147.8 1,112.1 1,202.9 1,240.3' 1,238.5' 1,253.5 1,251.8 1,269.3 ?1 M2 4,676.8 4,966.7 5,487.4 5,840.7' 5,922.6' 5,980.1 5,965.4 6,015.4 22 M3 6,577.5 7,153.8 8,076.1 8,596.0' 8,655.6' 8,670.8 8,672.9 8,729.2 Ml components 73 Currency3 521.7 535.6 585.4 630.6 639.9 643.3 646.5 647.6 74 Travelers checks4 8.4 8.1 7.9 7.7 7.7 7.5 7.5 7.7 25 Demand deposits5 371.7 326.7 348.1 317.5' 303.3 308.2 308.0 318.7 26 Other checkable deposits6 246.0 241.6 261.5 284.5' 287.7' 294.5 289.8 295.3 Nontransaction components 77 In M: 3,529.0 3,854.7 4,284.4 4,600.4 4,684.1' 4,726.6 4,713.6 4,746.0 28 fn M3 only8 1,900.7 2,187.1 2,588.7 2,755.3 2,733.0' 2,690.7 2,707.5 2,713.9 Commercial banks 29 Savings deposits, including MMDAs 1,288.7 1,427.5 1,742.4 2,060.4 2,126.3 2,170.9 2,177.3 2,217.1 30 Small time deposits9 635.6 700.6 635.1 591.7 579.8 575.4 570.7 565.3 31 Large time deposits1011 653.6 718.5 670.0 675.0 685.5' 687.9 703.0 701.6 Thrift institutions 32 Savings deposits, including MMDAs 451.9 455.8 575.0 718.8 759.3' 776.0 789.0 797.7 33 Small time deposits' 320.0 345.4 339.6 302.5 296.1 294.9 292.6 289.9 34 Large time deposits10 92.1 103.0 114.7 117.0 117.3 117.6 117.9 118.8 Money market mutual funds 35 Retail 832.7 925.3 992.4 927.0 922.6 909.4 884.1 875.9 36 Institution-only 648.6 806.1 1,218.3 1,262.3 1,187.5 1,141.1 1,118.9 1,131.0 Repurchase agreements and eurodollars 37 Repurchase agreements12 334.7 364.2 376.5 472.5 499.5 497.2 513.9 517.0 38 Eurodollars12 171.7 195.2 209.1 228.5 243.2' 246.9 253.9 245.4 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • September 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 June Dec.' Jan.' Feb.' Mar.' Apr.' May' June June 4 June 11 June 18 June 25 Seasonally adjusted Assets 1 Bank credit 5,527.4r 5,891.9 5,885.8 5,962.8 5,993.2 6,024.7 6,124.0 6,178.8 6,174.5 6,176.2 6,171.2 6,153.3 2 Securities in bank credit 1,559.6 1,716.3 1,710.3 1,753.9 1,766.2 1,777.9 1,834.9 1,856.8 1,872.1 1,862.2 1,850.8 1,848.8 3 U.S. government securities 908.7 1,027.8 1,030.2 1,059.0 1,071.9 1,104.4 1,135.8 1,152.0 1,154.7 1,151.3 1,154.9 1,152.9 4 Other securities 650.9 688.6 680.1 695.0 694.2 673.5 699.0 704.8 717.4 710.9 695.9 695.9 .5 Loans and leases in bank credit2 .... 3,967.7' 4,175.6 4,175.5 4,208.9 4,227.1 4,246.9 4,289.1 4,322.0 4,302.4 4,314.0 4,320.3 4,304.4 6 Commercial and industrial 990.1' 965.3 960.8 954.5 948.9 946.4 935.4 921.3 923.8 920.3 921.4 917.4 7 Real estate 1,839.7' 2,027.6 2,046.1 2,079.3 2,093.9 2,110.5 2,133.7 2,156.7 2,145.3 2,164.2 2,155.8 2,143.6 8 Revolving home equity 185.2' 213.4 217.6 222.7 230.5 234.8 238.4 244.8 242.1 243.4 245.1 246.1 9 Other 1,654.5' 1,814.2 1,828.5 1,856.6 1,863.5 1,875.7 1,895.3 1,911.9 1,903.2 1,920.8 1,910.7 1,897.5 10 Consumer 567.7 588.1 591.8 591.7 586.9 583.8 587.8 592.5 590.1 591.9 599.9 592.2 11 Security3 169.5 189.5 174.8 181.3 193.6 190.4 209.7 211.2 216.6 209.9 209.6 215.3 17, Other loans and leases 400.8' 405.1 401.9 402.0 403.7 415.7 422.5 440.2 426.6 427.8 433.7 436.0 n Interbank loans 282.7 328.4 307.3 305.0 314.0 305.6 318.8 323.0 317.7 318.5 324.2 335.2 14 Cash assets4 308.5 316.9 313.7 318.3 323.5 319.5 317.6 331.4 303.7 341.4 319.2 353.4 15 Other assets5 481.7' 509.2 509.9 533.9 524.8 531.7 556.3 564.6 563.4 578.6 556.5 563.6 16 Total assets6 6,525.1r 6,970.1 6,939.8 7,043.5 7,079.1 7,106.2 7,241.1 7,322.0 7,283.7 7,339.0 7,295.2 7,329.4 Liabilities 17 Deposits 4,373.6 4,487.4 4,506.9 4,535.4 4,585.6 4,613.5 4,646.6 4,706.8 4,680.8 4,684.6 4,706.1 4,713.5 18 Transaction 599.0 611.3 608.0 613.7 619.5 632.2 633.4 637.9 597.9 625.6 637.0 692.7 19 Nontransaction 3,774.5 3,876.1 3,899.0 3,921.6 3,966.1 3,981.3 4,013.2 4,068.9 4,082.9 4,059.0 4,069.1 4,020.8 20 Large time 1,034.8 978.6 979.4 995.2 1,001.6 985.4 999.0 1,002.5 1,010.6 992.7 1,010.2 987.7 21 Other 2,739.7 2,897.6 2,919.6 2,926.4 2,964.5 2,995.9 3,014.1 3,066.4 3,072.3 3,066.3 3,058.9 3,033.1 22 Borrowings 1,232.1 1,402.1 1,335.8 1,367.4 1,389.3 1,398.1 1,439.9 1,479.9 1,462.0 1,486.8 1,469.5 1,462.8 23 From banks in the U.S 378.5 417.5 380.8 388.1 397.4 397.5 389.8 408.2 400.7 405.1 397.5 423.1 74 From others 853.6 984.6 954.9 979.3 991.8 1,000.6 1,050.1 1,071.7 1,061.3 1,081.7 1,072.0 1,039.7 25 Net due to related foreign offices 83.3' 146.0 154.7 144.1 135.6 139.2 144.8 123.3 118.1 128.9 119.0 126.9 26 Other liabilities 376.8' 437.8 442.4 455.7 450.4 456.6 482.9 495.8 497.9 511.1 489.3 492.3 27 Total liabilities 6,065.7r 6,473.3 6,439.8 6,502.6 6,560.9 6,607.5 6,714.1 6,805.8 6,758.8 6,811.5 6,783.9 6,795.6 28 Residual (assets less liabilities)7 459.4' 496.8 500.1 540.9 518.1 498.8 527.0 516.2 524.9 527.5 511.3 533.8 Not seasonally adjusted Assets 79 Bank credit 5,524.5' 5,925.9 5,902.8 5,966.2 5,982.0 6,019.3 6,118.7 6,175.3 6,177.2 6,175.9 6,164.5 6,137.0 30 Securities in bank credit 1,554.8 1,723.0 1,720.7 1,763.1 1,771.2 1,775.7 1,832.6 1,850.7 1,875.1 1,862.3 1,842.9 1,836.3 31 U.S. government securities 905.1 1,032.0 1,035.0 1,065.3 1,076.9 1,104.3 1,133.8 1,147.3 1,157.1 1,150.4 1,148.4 1,143.6 37 Other securities 649.7 691.0 685.6 697.8 694.3 671.4 698.8 703.3 718.0 711.9 694.5 692.7 33 Loans and leases in bank credit2 .... 3,969.6' 4,202.9 4,182.1 4,203.1 4,210.8 4,243.6 4,286.1 4,324.6 4,302.1 4,313.6 4,321.6 4,300.7 34 Commercial and industrial 994.2' 964.0 954.9 952.5 950.3 950.2 939.1 925.3 927.6 921.7 924.1 921.5 35 Real estate 1,840.5' 2,032.2 2,046.5 2,075.1 2,085.0 2,106.8 2,137.5 2,158.0 2,147.9 2,168.9 2,152.5 2,143.7 36 Revolving home equity 185.8' 212.9 217.0 223.0 228.4 234.5 239.6 245.7 242.7 244.2 246.0 247.3 37 Other 1,654.7' 1,819.2 1,829.5 1,852.1 1,856.5 1,872.4 1,897.9 1,912.3 1,905.2 1,924.6 1,906.6 1,896.4 38 Consumer 564.0 596.9 599.5 594.9 584.6 581.0 586.7 589.1 587.3 587.9 594.2 590.5 39 Credit cards and related plans . . 220.7 238.5 234.0 225.8 219.6 215.3 220.5 221.5 220.8 220.5 225.9 222.3 40 Other 343.2' 358.4 365.5 369.1 365.0 365.8 366.2 367.7 366.5 367.4 368.3 368.2 41 Security3 168.8 200.1 181.0 183.0 189.2 189.6 202.0 209.8 209.1 207.2 216.0 211.6 42 Other loans and leases 402.1' 409.7 400.2 397.6 401.8 415.9 420.8 442.4 430.1 427.9 434.7 433.4 43 Interbank loans 284.5 335.4 304.0 302.2 320.5 316.8 314.5 324.2 326.8 323.9 325.8 319.1 44 Cash assets4 300.1 339.1 329.7 318.8 312.7 317.7 314.0 322.2 313.5 317.6 315.3 325.3 45 Other assets5 477.2' 514.0 513.6 531.4 523.9 531.1 554.2 558.8 560.1 571.4 549.1 553.2 46 Total assets6 6,511.0r 7,038.1 6,973.4 7,041.6 7,062.5 7,109.6 7,225.4 7,304.5 7,301.7 7,312.7 7,278.5 7,258.6 Liabilities 47 Deposits 4,363.0 4,538.2 4,530.3 4,556.3 4,592.8 4,638.6 4,639.6 4,695.9 4,706.2 4,685.7 4,692.5 4,650.1 48 Transaction 594.2 644.1 622.0 606.1 611.1 638.1 623.2 632.5 607.4 611.7 635.0 660.9 49 Nontransaction 3,768.8 3,894.1 3,908.2 3,950.2 3,981.6 4,000.5 4,016.4 4,063.4 4,098.9 4,074.1 4,057.6 3,989.2 50 Large time 1,032.7 991.3 996.0 1,005.8 1,004.3 989.8 1,002.7 1,000.6 1,014.5 996.5 1,008.8 983.2 51 Other 2,736.1 2,902.8 2,912.3 2,944.3 2,977.3 3,010.7 3,013.7 3,062.8 3,084.3 3,077.5 3,048.7 3,006.0 57, Borrowings 1,231.2 1,401.2 1,348.9 1,369.6 1,385.7 1,402.3 1,445.6 1,478.9 1,464.9 1,468.3 1,478.5 1,467.6 53 From banks in the U.S 376.9 419.3 385.4 391.6 400.9 401.6 392.2 406.3 402.2 399.8 397.9 420.8 54 From others 854.3 982.0 963.5 978.0 984.8 1,000.7 1,053.5 1,072.6 1,062.8 1,068.5 1,080.6 1,046.8 55 Net due to related foreign offices 80.2' 152.0 158.8 149.5 133.8 130.1 144.3 120.5 116.9 126.6 114.0 126.6 56 Other liabilities 374.4' 444.7 446.1 462.0 446.6 444.1 482.0 492.6 496.8 508.4 483.1 492.3 57 Total liabilities 6,048.8' 6,536.1 6,483.9 6,537.3 6,558.8 6,615.2 6,711.5 6,787.9 6,784.8 6,788.9 6,768.2 6,736.6 58 Residual (assets less liabilities)7 462.2' 502.0 489.5 504.3 503.6 494.5 513.9 516.6 516.9 523.8 510.3 522.1 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • September 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2002 2002 2003 2003 June Dec.' Jan.' Feb.' Mar.' Apr.' May' June June 4 June 11 June 18 June 25 Seasonally adjusted Assets 1 Bank credit 4,923.8r 5,250.4 5,252.2 5,316.1 5,329.6 5,370.1 5,455.7 5,509.9 5,495.8 5,495.1 5,505.8 5,488.0 2 Securities in bank credit 1,323.7 1,449.1 1,441.8 1,474.8 1,482.2 1,500.4 1,546.0 1,568.9 1,576.3 1,561.6 1,563.1 1,567.5 3 U.S. government securities 832.7 920.2 920.8 942.6 949.3 979.0 1,005.0 1,022.9 1,021.1 1,016.3 1,026.1 1,025.6 4 Other securities 490.9 528.9 521.0 532.3 532.9 521.4 541.1 546.0 555.2 545.2 537.0 541.8 f 5 a Lo C an o s m a m nd e r l c e i a a s l e a s n i d n i b n a d n u k s t c ri r a e l d it2 .... 3,6 7 0 9 0 7 . . 9 lr r 3, 7 8 8 0 6 1 . . 9 3 3, 7 8 8 1 3 0 . . 6 4 3,8 7 4 8 1 0 . . 3 3 3, 7 8 7 4 7 7 . . 2 4 3, 7 8 7 6 4 9. . 7 4 3, 7 9 6 0 5 9 . . 5 7 3, 7 9 5 4 9 1 . . 0 0 3, 7 9 5 1 9 9 . . 9 5 3, 7 9 5 33 7 . . 5 0 3, 7 9 5 4 9 2 . . 1 7 3, 7 9 5 20 6 . . 5 5 V Real estate l,821.3r 2,008.1 2,026.4 2,059.6 2,074.1 2,091.5 2,114.5 2,137.5 2,126.2 2,145.1 2,136.8 2,124.2 8 Revolving home equity 185.2' 213.4 217.6 222.7 230.5 234.8 238.4 244.8 242.1 243.4 245.1 246.1 9 Other 1,636.1' 1,794.7 1,808.8 1,836.9 1,843.6 1,856.7 1,876.1 1,892.7 1,884.1 1,901.7 1,891.7 1,878.1 10 Consumer 567.7 588.1 591.8 591.7 586.9 583.8 587.8 592.5 590.1 591.9 599.9 592.2 11 Security3 83.6 79.4 71.5 73.2 72.2 72.4 91.2 90.0 93.2 88.4 91.2 91.2 12 Other loans and leases 329.7' 338.8 337.1 336.5 337.0 347.6 350.6 362.0 350.1 351.1 355.8 356.5 13 Interbank loans 262.4 298.3 279.1 278.0 286.7 283.2 294.2 292.2 290.2 285.7 291.5 306.5 14 Cash assets4 261.5 272.3 273.6 279.6 279.7 269.4 265.5 275.3 250.4 283.3 262.5 298.8 15 Other assets5 454.4' 477.6 475.3 498.9 493.7 496.6 514.5 519.4 518.2 533.8 508.1 519.2 16 Total assets6 5,827.5r 6,222.8 6,203.9 6,296.4 6,313.8 6,344.4 6,454.6 6,521.5 6,479.4 6,522.6 6,492.3 6,537.0 Liabilities 17 Deposits 3,868.2 4,061.9 4,080.4 4,092.5 4,137.2 4,177.1 4,207.8 4,256.2 4,230.5 4,230.1 4,249.1 4,273.5 18 Transaction 588.7 602.1 598.2 603.5 608.0 620.9 622.4 626.3 586.7 614.4 625.6 680.9 19 Nontransaction 3,279.5 3,459.8 3,482.2 3,489.0 3,529.2 3,556.2 3,585.4 3,630.0 3,643.8 3,615.7 3,623.4 3,592.6 20 Large time 542.4 569.9 577.6 583.5 583.6 582.1 595.3 589.8 596.4 580.4 592.3 587.9 21 Other 2,737.1 2,889.9 2,904.6 2,905.5 2,945.6 2.974.1 2,990.1 3,040.1 3,047.4 3,035.4 3,031.1 3,004.7 22 Borrowings 1,039.1 1,119.4 1,062.1 1,092.7 1,095.9 1,099.5 1,132.7 1,160.9 1,140.7 1,162.1 1,151.1 1,144.7 23 From banks in the U.S 357.7 387.5 349.8 357.0 363.7 370.0 358.2 373.0 366.1 373.9 362.2 387.4 24 From others 681.3 731.9 712.3 735.7 732.2 729.5 774.5 787.9 774.5 788.2 788.8 757.3 2b Net due to related foreign offices 170.0' 206.0 225.1 222.6 219.5 212.0 222.6 205.3 203.6 214.6 198.7 204.3 26 Other liabilities 292.6' 340.9 346.6 355.8 354.9 365.4 377.4 385.8 388.5 396.7 379.9 386.1 27 Total liabilities 5,369.9r 5,728.2 5,714.2 5,763.6 5,807.5 5,854.0 5,940.5 6,008.2 5,963.4 6,003.5 5,978.7 6,008.6 28 Residual (assets less liabilities)7 457.6' 494.6 489.7 532.8 506.3 490.4 514.1 513.2 516.1 519.2 513.6 528.4 Not seasonally adjusted Assets 29 Bank credit 4,923.6' 5,274.4 5,261.5 5,315.1 5,320.2 5,364.8 5,455.1 5,509.9 5,504.5 5,500.1 5,498.9 5,476.0 30 Securities in bank credit 1,318.9 1,455.7 1,452.2 1,484.0 1,487.2 1,498.2 1,543.8 1,562.8 1,579.4 1,561.6 1,555.2 1,554.9 31 U.S. government securities 829.2 924.5 925.6 948.9 954.3 978.9 1,002.9 1,018.2 1,023.5 1,015.5 1,019.5 1,016.3 32 Other securities 489.7 531.3 526.6 535.1 532.9 519.3 540.8 544.6 555.9 546.2 535.6 538.6 33 Loans and leases in bank credit2 .... 3,604.7' 3,818.6 3,809.3 3,831.1 3,833.0 3,866.6 3,911.4 3,947.1 3,925.1 3,938.5 3,943.7 3,921.1 34 Commercial and industrial 802.6' 784.2 777.6 776.9 777.1 779.1 771.0 763.5 764.5 759.5 762.6 760.8 3b Real estate 1,822.1' 2,012.7 2,026.8 2,055.4 2,065.1 2,087.8 2,118.3 2,138.8 2,128.9 2,149.7 2,133.5 2,124.2 36 Revolving home equity 185.8' 212.9 217.0 223.0 228.4 234.5 239.6 245.7 242.7 244.2 246.0 247.3 37 Other 1,636.3' 1,799.8 1,809.9 1,832.4 1,836.7 1,853.4 1,878.7 1,893.1 1,886.1 1,905.5 1,887.5 1,876.9 38 Consumer 564.0 596.9 599.5 594.9 584.6 581.0 586.7 589.1 587.3 587.9 594.2 590.5 39 Credit cards and related plans . . 220.7 238.5 234.0 225.8 219.6 215.3 220.5 221.5 220.8 220.5 225.9 222.3 40 Other 343.2' 358.4 365.5 369.1 365.0 365.8 366.2 367.7 366.5 367.4 368.3 368.2 41 Security3 84.6 83.4 70.7 72.0 71.9 71.3 85.8 91.1 91.2 89.9 96.1 90.4 42 Other loans and leases 331.4' 341.4 334.7 331.9 334.3 347.3 349.5 364.6 353.3 351.3 357.3 355.2 43 Interbank loans 264.3 305.4 275.9 275.2 293.3 294.3 289.8 293.4 299.3 291.1 293.1 290.5 44 Cash assets4 255.4 291.3 286.6 279.1 270.1 269.8 263.5 268.7 261.6 262.5 261.2 273.7 45 Other assets5 451.0' 481.4 477.8 495.7 492.0 496.2 512.2 515.4 515.8 527.7 502.8 511.1 46 Total assets6 5,819.4r 6,276.6 6,225.6 6,288.6 6,299.4 6,350.3 6,445.3 6,511.9 6,505.7 6,505.8 6,480.3 6,475.8 Liabilities 47 Deposits 3,859.7 4,101.8 4,087.5 4,103.3 4,140.3 4,196.3 4,195.4 4,247.2 4,253.3 4,229.9 4,237.9 4,212.6 48 Transaction 584.2 634.1 612.0 595.8 600.0 627.4 612.6 621.2 596.6 601.2 624.0 649.5 49 Nontransaction 3,275.6 3,467.7 3,475.6 3,507.4 3,540.3 3,568.9 3,582.8 3,625.9 3,656.7 3,628.6 3,614.0 3,563.1 50 Large time 542.0 572.7 578.9 584.4 582.1 580.2 593.5 589.4 597.4 582.2 592.8 585.4 51 Other 2,733.6 2,895.0 2,896.7 2,923.0 2,958.2 2,988.6 2,989.3 3,036.5 3,059.3 3,046.4 3,021.1 2,977.7 52 Borrowings 1,038.3 1,118.5 1,075.2 1,094.9 1,092.3 1,103.6 1,138.5 1,160.0 1,143.6 1,143.6 1,160.1 1,149.5 53 From banks in the U.S 356.2 389.2 354.4 360.5 367.2 374.1 360.6 371.2 367.6 368.6 362.6 385.0 54 From others 682.1 729.3 720.8 734.4 725.1 729.5 777.9 788.8 776.1 775.0 797.5 764.4 55 Net due to related foreign offices 169.2' 210.4 226.6 226.7 215.4 203.4 221.8 204.3 203.5 213.8 196.1 205.0 56 Other liabilities 291.4' 346.7 348.6 361.2 349.6 353.2 376.2 384.1 388.3 395.3 375.9 386.9 57 Total liabilities 5,358.6' 5,777.4 5,738.0 5,786.2 5,797.6 5,856.5 5,931.9 5,995.5 5,988.8 5,982.5 5,970.0 5,954.0 58 Residual (assets less liabilities)7 460.8' 499.2 487.6 502.4 501.8 493.9 513.3 516.4 516.9 523.3 510.3 521.8 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 Juner Dec.r Jan.r Feb.' Mar.r Apr.1" May' June June 4 June 11 June 18 June 25 Seasonally adjusted Assets 1 Bank credit 2,660.7 2,865.9 2,862.1 2,908.6 2,905.7 2,926.0 3,001.2 3,036.5 3,030.6 3,026.3 3,019.8 3,013.4 7 Securities in bank credit 687.0 780.2 774.4 805.5 803.1 810.0 856.5 880.5 886.0 872.4 873.9 880.4 3 U.S. government securities 403.3 458.3 461.0 479.7 476.4 493.2 520.0 536.0 534.3 530.3 537.3 537.6 4 Trading account 42.5 44.6 41.2 54.5 41.8 40.7 43.6 38.7 44.2 42.8 36.5 32.2 s Investment account 360.8 413.7 419.8 425.3 434.5 452.5 476.4 497.3 490.2 487.5 500.8 505.4 6 Other securities 283.7 321.9 313.3 325.7 326.7 316.8 336.6 344.5 351.7 342.1 336.6 342.8 7 Trading account 148.2 164.9 160.0 172.6 171.6 161.5 183.4 188.0 199.0 189.6 182.3 186.7 8 Investment account 135.5 157.0 153.3 153.1 155.1 155.3 153.2 156.5 152.7 152.5 154.3 156.1 9 State and local government . . 27.3 29.5 29.4 29.6 30.1 30.9 31.3 32.2 31.7 31.8 32.4 32.6 in Other 108.2 127.5 123.9 123.5 125.0 124.4 121.9 124.3 121.0 120.7 121.9 123.4 11 Loans and leases in bank credit2 .... 1,973.7 2,085.7 2,087.7 2,103.1 2,102.6 2,116.0 2,144.7 2,156.0 2,144.6 2,153.9 2,146.0 2,133.0 17. Commercial and industrial 512.4 490.7 487.9 482.9 479.1 476.6 468.0 461.0 461.5 459.1 459.2 459.5 n Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 14 Other 512.4 490.7 487.9 482.9 479.1 476.6 468.0 461.0 461.5 459.1 459.2 459.5 is Real estate 869.3 992.1 1,008.1 1,029.7 1,036.6 1,042.8 1,058.3 1,066.4 1,062.1 1,075.8 1,061.9 1,051.6 16 Revolving home equity 117.1 136.6 139.7 142.2 147.6 150.2 152.5 156.0 154.1 155.1 155.7 157.1 17 Other 752.2 855.5 868.4 887.5 888.9 892.6 905.7 910.4 908.1 920.8 906.2 894.5 18 Consumer 283.5 296.9 297.1 295.0 291.5 290.0 290.2 291.9 292.3 293.5 293.6 291.8 19 Security' 77.0 71.8 63.5 64.9 64.0 64.2 82.5 80.9 84.2 79.6 82.0 81.5 20 Federal funds sold to and repurchase agreements with broker-dealers 65.2 61.4 52.8 54.2 52.6 52.4 6633..00 63.5 6666..77 6622..44 6655..33 6633..00 71 Other 11.9 10.4 10.6 10.7 11.4 11.8 19.5 17.4 17.5 17.2 16.8 18.5 22 State and local government 13.1 11.9 12.0 12.3 12.5 12.4 12.4 12.7 12.7 12.6 12.6 12.8 23 Agricultural 9.2 8.3 8.2 7.9 7.9 7.7 7.5 7.4 7.5 7.4 7.4 7.3 24 Federal funds sold to and repurchase agreements with others 18.5 25.4 24.3 24.3 23.9 25.1 26.9 28.3 2277..33 2277..44 2288..22 2277..11 75 All other loans 69.6 74.6 75.6 75.2 76.7 87.8 89.1 96.8 85.6 87.3 90.1 91.2 76 Lease-financing receivables 121.1 114.0 111.1 110.8 110.5 109.4 109.8 110.7 111.3 111.1 110.9 110.2 27 Interbank loans 175.6 190.8 164.5 160.4 170.2 169.3 169.2 163.5 162.4 162.8 162.5 168.1 28 Federal funds sold to and repurchase agreements with commercial banks 87.7 96.2 95.7 90.3 99.6 9988..22 9999..77 9966..77 9977..55 9944..88 9966..99 9988..66 79 Other 87.9 94.5 68.8 70.1 70.6 71.1 69.5 66.8 64.9 67.9 65.6 69.5 30 Cash assets4 146.9 149.9 149.5 150.8 148.0 135.5 132.6 141.3 124.7 146.2 131.9 157.6 31 Other assets5 315.6 336.5 334.4 354.7 347.4 347.2 356.9 359.6 358.9 371.2 352.0 363.9 32 Total assets6 3,254.6 3,499.1 3,465.8 3,529.7 3,526.4 3,534.1 3,615.8 3,656.7 3,632.6 3,662.3 3,622.0 3,658.7 Liabilities 33 Deposits 1,851.9 1,973.9 1,983.8 1,984.5 2,003.3 2,027.7 2,034.5 2,063.6 2,042.4 2,039.5 2,060.5 2,075.9 34 Transaction 293.7 291.0 288.2 290.3 290.6 295.7 296.8 299.6 274.5 295.9 298.0 331.2 35 Nontransaction 1,558.2 1,682.9 1,695.6 1,694.2 1,712.7 1,732.0 1,737.7 1,764.0 1,768.0 1,743.6 1,762.6 1,744.7 36 Large time 244.9 262.5 270.8 273.5 268.9 267.0 278.9 270.9 277.7 260.1 273.6 269.1 37 Other 1,313.3 1,420.4 1,424.7 1,420.7 1,443.8 1,465.0 1,458.8 1,493.0 1,490.3 1,483.6 1,488.9 1,475.6 38 Borrowings 707.2 731.1 655.7 682.8 689.1 686.9 712.2 735.7 728.8 740.2 721.6 712.2 39 From banks in the U.S 243.0 249.6 193.8 196.4 204.9 209.1 200.4 213.4 213.1 217.3 201.4 223.1 40 From others 464.2 481.5 461.9 486.4 484.2 477.8 511.7 522.3 515.8 522.9 520.2 489.1 41 Net due to related foreign offices 158.3 193.6 210.0 210.0 208.8 199.2 210.2 193.3 191.9 204.5 185.2 191.7 42 Other liabilities 229.6 277.0 275.6 279.7 275.0 284.8 294.2 301.6 304.3 312.2 296.2 301.4 43 Total liabilities 2,946.9 3,175.6 3,125.1 3,157.0 3,176.2 3,198.6 3,251.0 3,294.2 3,267.4 3,296.5 3,263.4 3,281.1 44 Residual (assets less liabilities)7 307.7 323.6 340.7 372.6 350.2 335.5 364.7 362.5 365.1 365.8 358.6 377.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • September 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 Juner Dec.r Jan.r Feb.' Mar.' Apr.' May' June June 4 June 11 June 18 June 25 Not seasonally adjusted Assets 45 Bank credit 2,662.8 2,878.4 2,869.3 2,910.7 2,899.6 2,922.5 3,002.2 3,038.8 3,043.6 3,032.9 3,025.4 3,000.4 46 Securities in bank credit 682.6 785.3 783.0 813.8 805.4 806.4 855.1 874.8 891.0 873.0 867.7 866.6 47 U.S. government securities 400.1 461.0 464.1 485.2 478.6 491.6 518.8 531.7 538.7 530.0 532.5 527.0 48 Trading account 42.2 44.9 41.5 55.1 42.1 40.6 43.5 38.4 44.5 42.8 36.2 31.6 49 Investment account 357.9 416.1 422.5 430.1 436.6 451.0 475.2 493.3 494.2 487.2 496.3 495.4 50 Mortgage-backed securities . 279.5 319.0 325.1 331.3 334.5 354.3 380.2 389.4 396.3 387.3 388.9 388.8 51 Other 78.5 97.1 97.5 98.8 102.0 96.7 95.0 103.9 97.9 99.9 107.5 106.7 52 One year or less 14.8 24.1 21.3 22.9 24.4 24.6 23.2 24.3 23.4 23.8 25.2 23.7 53 One to five years 50.3 56.6 58.6 57.4 57.4 55.2 55.2 57.3 56.0 56.4 59.3 58.0 54 More than five years .... 13.3 16.4 17.5 18.6 20.3 16.9 16.7 22.3 18.5 19.7 23.0 24.9 55 Other securities 282.5 324.3 318.9 328.5 326.8 314.8 336.3 343.1 352.4 343.0 335.2 339.5 56 Trading account 147.5 166.1 162.9 174.1 171.7 160.5 183.2 187.3 199.4 190.1 181.5 185.0 57 Investment account 134.9 158.1 156.0 154.4 155.1 154.3 153.1 155.8 153.0 152.9 153.6 154.6 58 State and local government . 27.2 29.7 30.0 29.8 30.1 30.7 31.3 32.1 31.7 31.9 32.2 32.3 59 Other 107.7 128.4 126.1 124.6 125.0 123.6 121.8 123.8 121.2 121.0 121.4 122.3 60 Loans and leases in bank credit2 . .. 1,980.2 2,093.1 2,086.4 2,096.9 2,094.2 2,116.2 2,147.2 2,163.9 2,152.6 2,160.0 2,157.7 2,133.8 61 Commercial and industrial 514.8 488.2 483.4 480.9 479.0 479.1 471.1 463.3 464.3 459.8 461.9 461.1 62 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 63 Other 514.8 488.2 483.4 480.9 479.0 479.1 471.1 463.3 464.3 459.8 461.9 461.1 64 Real estate 871.2 993.4 1,007.0 1,025.5 1,029.7 1,040.9 1,062.6 1,068.8 1,066.8 1,080.9 1,064.0 1,051.4 65 Revolving home equity 117.8 135.8 138.9 142.5 146.0 150.1 153.7 156.9 154.9 155.9 157.1 158.1 66 Other 436.1 535.7 545.3 560.1 560.7 569.5 588.2 591.4 591.7 604.4 586.3 572.4 67 Commercial 317.3 321.9 322.8 322.8 323.0 321.3 320.8 320.5 320.2 320.6 320.7 320.8 68 Consumer 283.6 299.4 301.9 298.2 292.1 290.6 291.1 292.0 293.0 293.5 294.0 292.1 69 Credit cards and related plans . 112.5 117.3 115.3 109.7 105.9 103.5 103.8 104.8 106.1 106.0 106.7 104.7 70 Other 171.1 182.1 186.6 188.5 186.2 187.1 187.3 187.2 186.9 187.4 187.3 187.4 71 Security3 78.1 75.7 63.0 63.9 63.5 62.9 77.3 82.0 81.9 80.8 87.1 81.3 72 Federal funds sold to and repurchase agreements with broker-dealers 66.1 64.8 52.5 53.3 52.2 51.3 59.0 64.4 64.9 63.4 69.3 62.9 73 Other 12.0 10.9 10.6 10.6 11.3 11.6 18.3 17.6 17.0 17.5 17.8 18.5 74 State and local government 13.1 11.9 12.0 12.3 12.5 12.4 12.4 12.7 12.7 12.6 12.6 12.8 75 Agricultural 9.4 8.2 8.2 7.8 7.8 7.7 7.6 7.5 7.5 7.5 7.5 7.5 76 Federal funds sold to and repurchase agreements with others 18.5 25.4 24.3 24.3 23.9 25.1 26.9 28.3 27.3 27.4 28.2 27.1 77 All other loans 70.8 76.6 73.7 71.9 74.5 87.6 88.5 98.9 88.0 86.7 91.9 90.9 78 Lease-financing receivables 120.7 114.3 112.8 112.1 111.2 109.8 109.8 110.3 111.1 110.7 110.4 109.7 79 Interbank loans 179.8 195.3 167.6 158.6 170.2 172.6 170.0 167.8 166.9 162.9 168.7 167.7 80 Federal funds sold to and repurchase agreements with commercial banks 89.6 98.4 97.5 89.3 99.7 100.1 100.2 99.2 100.1 94.9 100.5 98.4 81 Other 90.2 96.8 70.2 69.3 70.6 72.6 69.8 68.6 66.8 68.0 68.2 69.3 82 Cash assets4 142.7 161.5 158.3 150.8 143.1 138.3 131.7 136.9 129.7 132.9 132.6 142.5 83 Other assets5 312.2 340.3 336.9 351.6 345.8 346.7 354.7 355.6 356.6 365.1 346.8 355.8 84 Total assets6 3,253.1 3,531.6 3,487.7 3,526.4 3,513.5 3,536.2 3,614.2 3,654.6 3,652.3 3,649.3 3,629.2 3,622.1 Liabilities 85 Deposits 1,852.2 1,990.4 1,984.7 1,988.5 2,001.4 2,035.1 2,030.1 2,064.0 2,062.1 2,043.6 2,065.3 2,042.7 86 Transaction 291.2 311.4 297.0 286.0 286.2 301.9 292.5 296.8 280.0 286.5 299.3 311.9 87 Nontransaction 1,561.0 1,679.0 1,687.7 1,702.5 1,715.2 1,733.3 1,737.6 1,767.2 1,782.1 1,757.1 1,766.0 1,730.8 88 Large time 244.5 265.3 272.1 274.4 267.4 265.2 277.1 270.5 278.6 261.9 274.1 266.6 89 Other 1,316.5 1,413.7 1,415.6 1,428.1 1,447.7 1,468.1 1,460.6 1,496.7 1,503.5 1,495.2 1,491.9 1,464.2 90 Borrowings 706.4 730.2 668.8 685.0 685.5 691.0 717.9 734.8 731.8 721.7 730.6 717.0 91 From banks in the U.S 241.4 251.3 198.3 199.9 208.3 213.2 202.8 211.6 214.5 212.0 201.8 220.8 92 From nonbanks in the U.S 465.0 478.9 470.4 485.1 477.2 477.9 515.1 523.2 517.3 509.7 528.8 496.2 93 Net due to related foreign offices 157.5 198.0 211.5 214.2 204.7 190.6 209.3 192.2 191.8 203.8 182.6 192.4 94 Other liabilities 228.3 282.8 277.6 285.2 269.7 272.6 293.1 300.0 304.1 310.9 292.1 302.1 95 Total liabilities 2,944.4 3,201.4 3,142.6 3,172.8 3,161.3 3,189.3 3,250.5 3,291.0 3,289.8 3,279.9 3,270.6 3,254.1 96 Residual (assets less liabilities)7 308.6 330.2 345.1 353.6 352.2 346.9 363.7 363.6 362.5 369.4 358.6 368.0 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 June' Dec.' Jan.' Feb.' Mar.' Apr.' May' June June 4 June 11 June 18 June 25 Seasonally adjusted Assets 1 Bank credit 2,263.1 2,384.5 2,390.1 2,407.5 2,423.9 2,444.1 2,454.5 2,473.4 2,465.2 2,468.8 2,486.0 2,474.6 7 Securities in bank credit 636.7 668.9 667.4 669.4 679.1 690.4 689.5 688.4 690.3 689.2 689.2 687.1 U.S. government securities 429.5 461.9 459.8 462.8 472.9 485.8 485.0 486.9 486.7 486.0 488.8 488.0 4 Other securities 207.2 207.0 207.7 206.5 206.2 204.6 204.5 201.5 203.6 203.2 200.5 199.1 Loans and leases in bank credit2 .... 1,626.5 1,715.5 1,722.7 1,738.2 1,744.7 1,753.7 1,765.0 1,785.0 1,774.9 1,779.6 1,796.8 1,787.5 6 Commercial and industrial 285.6 296.2 295.7 297.5 298.2 297.8 297.5 298.0 298.4 297.9 299.8 297.0 7 Real estate 952.0 1,016.0 1,018.3 1,029.9 1,037.5 1,048.7 1,056.3 1,071.1 1,064.1 1,069.2 1,074.9 1,072.6 8 Revolving home equity 68.1 76.7 77.8 80.5 82.8 84.6 85.9 88.9 88.0 88.3 89.5 89.0 9 Other 883.9 939.3 940.4 949.4 954.7 964.1 970.4 982.3 976.0 980.9 985.4 983.6 10 Consumer 284.1 291.2 294.8 296.7 295.3 293.8 297.6 300.6 297.8 298.4 306.3 300.4 11 Security3 6.6 7.5 8.0 8.2 8.2 8.2 8.7 9.2 9.0 8.9 9.2 9.7 1? Other loans and leases 98.2 104.6 105.9 105.9 105.6 105.2 104.9 106.2 105.7 105.2 106.6 107.9 n Interbank loans 86.8 107.6 114.7 117.6 116.6 113.9 125.0 128.7 127.7 122.9 129.1 138.4 14 Cash assets4 114.6 122.5 124.1 128.8 131.7 133.8 132.9 134.0 125.7 137.0 130.5 141.3 15 Other assets5 138.8 141.1 141.0 144.2 146.3 149.5 157.6 159.9 159.2 162.6 156.0 155.3 16 Total assets6 2,572.9 2,723.6 2,738.1 2,766.7 2,787.4 2,810.3 2,838.9 2,864.8 2,846.9 2,860.4 2,870.3 2,878.4 Liabilities 17 Deposits 2,016.3 2,088.0 2,096.6 2,108.0 2,133.9 2,149.4 2,173.4 2,192.7 2,188.1 2,190.6 2,188.5 2,197.6 18 Transaction 295.0 311.1 310.0 313.2 317.4 325.2 325.6 326.7 312.2 318.5 327.7 349.7 19 Nontransaction 1,721.4 1,776.9 1,786.6 1,794.8 1,816.5 1,824.2 1,847.8 1,866.0 1,875.9 1,872.1 1,860.9 1,847.9 70 Large time 297.5 307.4 306.7 310.0 314.7 315.1 316.4 318.9 318.7 320.3 318.7 318.8 71 Other 1,423.9 1,469.5 1,479.9 1,484.8 1,501.8 1,509.1 1,531.4 1,547.1 1,557.2 1,551.8 1,542.2 1,529.1 77 Borrowings 331.9 388.3 406.5 409.9 406.8 412.6 420.6 425.2 411.8 421.8 429.5 432.5 73 From banks in the U.S 114.8 137.9 156.0 160.6 158.9 160.9 157.8 159.6 153.1 156.5 160.9 164.3 74 From others 217.1 250.4 250.4 249.3 247.9 251.7 262.8 265.6 258.8 265.3 268.6 268.2 25 Net due to related foreign offices 11.7 12.4 15.1 12.6 10.7 12.8 12.4 12.0 11.8 10.0 13.5 12.6 26 Other liabilities 63.1 63.9 71.0 76.1 79.9 80.6 83.1 84.2 84.2 84.5 83.8 84.8 27 Total liabilities 2,423.0 2,552.6 2,589.1 2,606.6 2,631.3 2,655.4 2,689.5 2,714.0 2,695.9 2,706.9 2,715.3 2,727.5 28 Residual (assets less liabilities)7 149.9 171.0 149.0 160.2 156.0 154.9 149.4 150.8 150.9 153.4 155.0 150.9 Not seasonally adjusted Assets 29 Bank credit 2,260.8 2,396.0 2,392.1 2,404.4 2,420.6 2,442.3 2,452.9 2,471.1 2,460.9 2,467.1 2,473.4 2,475.6 30 Securities in bank credit 636.3 670.5 669.2 670.2 681.8 691.9 688.7 688.0 688.3 688.6 687.5 688.4 31 U.S. government securities 429.1 463.5 461.5 463.7 475.6 487.3 484.2 486.5 484.8 485.5 487.0 489.3 32 Other securities 207.2 207.0 207.7 206.5 206.2 204.6 204.5 201.5 203.6 203.2 200.5 199.1 33 Loans and leases in bank credit2 .... 1,624.5 1,725.5 1,722.9 1,734.2 1,738.8 1,750.4 1,764.2 1,783.2 1,772.5 1,778.5 1,786.0 1,787.2 34 Commercial and industrial 287.8 296.0 294.2 296.0 298.1 300.0 300.0 300.2 300.2 299.7 300.7 299.7 35 Real estate 951.0 1,019.3 1,019.8 1,029.9 1,035.4 1,046.9 1,055.7 1,070.0 1,062.1 1,068.9 1,069.5 1,072.9 36 Revolving home equity 68.1 77.2 78.1 80.5 82.5 84.4 85.9 88.8 87.8 88.4 88.9 89.1 37 Other 882.9 942.2 941.7 949.4 952.9 962.5 969.8 981.2 974.3 980.5 980.6 983.7 38 Consumer 280.3 297.5 297.7 296.7 292.5 290.4 295.6 297.1 294.3 294.5 300.2 298.4 39 Credit cards and related plans . . 108.2 121.2 118.7 116.1 113.8 111.7 116.6 116.6 114.7 114.5 119.2 117.6 40 Other 172.1 176.3 178.9 180.6 178.7 178.7 178.9 180.5 179.6 180.0 181.0 180.8 41 Security3 6.5 7.7 7.6 8.1 8.4 8.4 8.5 9.1 9.3 9.1 9.0 9.0 42 Other loans and leases 98.9 105.0 103.6 103.4 104.4 104.7 104.4 106.8 106.6 106.3 106.6 107.2 43 Interbank loans 84.5 110.1 108.3 116.6 123.0 121.7 119.9 125.6 132.4 128.2 124.4 122.8 44 Cash assets4 112.8 129.8 128.3 128.4 127.0 131.6 131.8 131.8 131.9 129.6 128.5 131.2 45 Other assets5 138.8 141.1 141.0 144.2 146.3 149.5 157.6 159.9 159.2 162.6 156.0 155.3 46 Total assets6 2,566.3 2,745.0 2,737.9 2,762.1 2,785.9 2,814.1 2,831.1 2,857.3 2,853.4 2,856.5 2,851.1 2,853.6 Liabilities 47 Deposits 2,007.5 2,111.4 2,102.8 2,114.8 2,138.9 2,161.1 2,165.3 2,183.1 2,191.2 2,186.3 2,172.6 2,170.0 48 Transaction 293.0 322.7 314.9 309.9 313.8 325.5 320.1 324.4 316.6 314.8 324.7 337.6 49 Nontransaction 1,714.5 1,788.7 1,787.9 1,804.9 1,825.1 1,835.6 1,845.2 1,858.7 1,874.5 1,871.5 1,847.9 1,832.4 50 Large time 297.5 307.4 306.7 310.0 314.7 315.1 316.4 318.9 318.7 320.3 318.7 318.8 51 Other 1,417.1 1,481.3 1,481.1 1,494.9 1,510.5 1,520.5 1,528.8 1,539.8 1,555.8 1,551.2 1,529.2 1,513.6 52 Borrowings 331.9 388.3 406.5 409.9 406.8 412.6 420.6 425.2 411.8 421.8 429.5 432.5 53 From banks in the U.S 114.8 137.9 156.0 160.6 158.9 160.9 157.8 159.6 153.1 156.5 160.9 164.3 54 From others 217.1 250.4 250.4 249.3 247.9 251.7 262.8 265.6 258.8 265.3 268.6 268.2 55 Net due to related foreign offices 11.7 12.4 15.1 12.6 10.7 12.8 12.4 12.0 11.8 10.0 13.5 12.6 56 Other liabilities 63.1 63.9 71.0 76.1 79.9 80.6 83.1 84.2 84.2 84.5 83.8 84.8 57 Total liabilities 2,414.2 2,576.0 2,595.4 2,613.3 2,636.3 2,667.1 2,681.4 2,704.5 2,699.0 2,702.6 2,699.4 2,699.9 58 Residual (assets less liabilities)7 152.2 169.0 142.5 148.8 149.6 146.9 149.7 152.8 154.4 153.9 151.7 153.8 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 DomesticN onfinancial Statistics • September 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 June Dec. Jan. Feb. Mar.' Apr.' May' June June 4 June 11 June 18 June 25 Seasonally adjusted Assets 1 Bank credit 603.5 641.5' 633.6r 646.7' 663.6 654.7 668.3 668.8 678.7 681.1 665.3 665.3 2 Securities in bank credit 236.0 267.2r 268.5r 279.1' 284.0 277.5 288.8 287.9 295.8 300.7 287.7 281.4 3 U.S. government securities 76.0 107.5r 109.4' 116.4' 122.6 125.4 130.9 129.1 133.6 135.0 128.9 127.3 4 Other securities 160.0 159.7 159.1 162.7 161.3 152.1 158.0 158.8 162.1 165.7 158.9 154.1 5 Loans and leases in bank credit2 .... 367.6 374.3 365.1 367.6 379.7 377.2 379.4 381.0 383.0 380.5 377.6 383.9 6 Commercial and industrial 192.1 178.4 177.2 174.1 171.7 172.1 169.9 162.4 163.9 163.3 162.3 160.9 7 Real estate 18.4 19.5 19.7 19.7 19.8 19.0 19.2 19.2 19.1 19.1 19.0 19.5 8 Security3 85.9 110.1 103.4 108.1 121.4 118.0 118.5 121.2 123.4 121.4 118.4 124.1 9 Other loans and leases 71.1 66.3 64.8 65.6 66.7 68.1 71.8 78.2 76.6 76.6 77.9 79.5 10 Interbank loans 20.2 30.0 28.1 27.0 27.2 22.5 24.7 30.8 27.5 32.8 32.7 28.6 11 Cash assets4 46.9 44.6 40.1 38.7 43.8 50.1 52.2 56.2 53.3 58.1 56.8 54.5 12 Other assets5 27.3 31.6r 34.6r 35.1' 31.1 35.0 41.8 45.2 45.2 44.8 48.5 44.4 13 Total assets6 697.6 747.3r 735.9r 747.1r 765.3 761.8 786.4 800.5 804.3 816.4 802.8 792.4 Liabilities 14 Deposits 505.4 425.5 426.6 442.9 448.4 436.4 438.7 450.6 450.2 454.5 457.0 440.0 15 Transaction 10.4 9.2 9.7 10.3 11.5 11.3 11.0 11.6 11.2 11.2 11.4 11.8 16 Nontransaction 495.0 416.4 416.8 432.6 436.9 425.1 427.7 439.0 439.0 443.3 445.6 428.2 17 Borrowings 193.0 282.7r 273.6r 274.7' 293.4 298.7 307.1 318.9 321.3 324.7 318.4 318.1 18 From banks in the U.S 20.7 30.0 31.0 31.1 33.7 27.5 31.6 35.2 34.6 31.2 35.3 35.7 19 From others 172.2 252.7' 242.6r 243.6' 259.7 271.2 275.5 283.8 286.7 293.5 283.2 282.4 20 Net due to related foreign offices -86.7 -60.1 -70.4 -78.4 -83.8 -72.8 -77.8 -81.9 -85.5 -85.7 -79.6 -77.4 21 Other liabilities 84.2 96.9r 95.8r 99.9' 95.4 91.2 105.5 110.0 109.4 114.5 109.3 106.2 22 Total liabilities 695.8 745.1r 725.6r 739.0r 753.4 753.4 773.5 797.5 795.4 808.0 805.2 787.0 23 Residual (assets less liabilities)7 1.8 2.2r 10.3r 8.1' 11.9 8.4 12.9 3.0 8.9 8.3 -2.3 5.4 Not seasonally adjusted Assets 24 Bank credit 600.8 651.5r 641.3' 651.1' 661.8 654.5 663.6 665.4 672.7 675.8 665.6 661.1 25 Securities in bank credit 236.0 267.2r 268.5' 279.1' 284.0 277.5 288.8 287.9 295.8 300.7 287.7 281.4 26 U.S. government securities 76.0 107.5r 109.4' 116.4' 122.6 125.4 130.9 129.1 133.6 135.0 128.9 127.3 27 Trading account 10.4 30.6 32.6 36.4 37.2 39.7 43.0 42.9 46.2 46.5 42.2 42.8 28 Investment account 65.5 76.9' 76.8' so.a 85.5 85.7 87.9 86.2 87.5 88.5 86.7 84.4 29 Other securities 160.0 159.7 159.1 162.7 161.3 152.1 158.0 158.8 162.1 165.7 158.9 154.1 30 Trading account 104.5 101.2 101.9 102.0 101.7 97.9 105.1 105.6 108.4 111.1 105.1 102.7 31 Investment account 55.5 58.4 57.2 60.7 59.7 54.2 52.9 53.2 53.7 54.6 53.8 51.5 32 Loans and leases in bank credit2 .... 364.9 384.3 372.8 372.0 377.9 377.0 374.7 377.5 376.9 375.2 377.9 379.7 33 Commercial and industrial 191.5 179.8 177.3 175.6 173.2 171.1 168.1 161.9 163.1 162.2 161.5 160.6 34 Real estate 18.4 19.5 19.7 19.7 19.8 19.0 19.2 19.2 19.1 19.1 19.0 19.5 35 Security3 84.2 116.7 110.4 111.0 117.3 118.3 116.2 118.7 118.0 117.3 119.9 121.3 36 Other loans and leases 70.7 68.3 65.5 65.7 67.6 68.6 71.3 77.8 76.9 76.5 77.5 78.3 37 Interbank loans 20.2 30.0 28.1 27.0 27.2 22.5 24.7 30.8 27.5 32.8 32.7 28.6 38 Cash assets4 44.7 47.8 43.1 39.7 42.6 47.9 50.5 53.5 51.Q 55.1 54.1 51.6 39 Other assets5 26.2 32.5' 35.7' 35.6r 31.8 34.9 41.9 43.4 44.3 43.7 46.3 42.1 40 Total assets6 691.6 761.5r 747.9r 753.0r 763.1 759.3 780.2 792.6 796.0 806.9 798.2 782.9 Liabilities 41 Deposits 503.3 436.4 442.7 453.0 452.5 442.4 444.1 448.7 453.0 455.9 454.6 437.4 42 Transaction 10.1 10.0 10.0 10.3 11.1 10.7 10.6 11.3 10.8 10.4 11.0 11.4 43 Nontransaction 493.2 426.4 432.7 442.8 441.3 431.7 433.6 437.5 442.2 445.5 443.6 426.1 44 Borrowings 193.0 282.7r 273.6' 274.7' 293.4 298.7 307.1 318.9 321.3 324.7 318.4 318.1 45 From banks in the U.S 20.7 30.0 31.0 31.1 33.7 27.5 31.6 35.2 34.6 31.2 35.3 35.7 46 From others 172.2 252.7' 242.6' 243.6' 259.7 271.2 275.5 283.8 286.7 293.5 283.2 282.4 47 Net due to related foreign offices -89.0 -58.4 -67.8 -77.3 -81.5 -73.3 -77.5 -83.7 -86.7 -87.2 -82.1 -78.4 48 Other liabilities 83.0 98.0r 97.4' 100.7' 97.0 90.9 105.8 108.4 108.4 113.0 107.3 105.4 49 Total liabilities 690.3 758.7r 746.0r 751.lr 761.3 758.7 779.6 792.3 796.0 806.4 798.2 782.6 50 Residual (assets less liabilities)7 1.3 2.1' 1.9' 1.9' 1.8 .6 .6 .3 -.1 .5 .0 .3 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 June Dec. Jan. Feb. Mar. Apr. May June June 4 June 11 June 18 June 25 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 92.9 112.5 107.6 116.8 115.1 105.7 128.1 135.1 141.5 142.4 131.8 133.3 2 Revaluation losses on off-balancesheet items8 75.7 93.8 86.2 94.9 91.3 81.4 105.1 109.9 115.7 117.4 108.3 109.1 3 Mortgage-backed securities' 314.8' 365.2' 370.9' 376.9' 381.4' 400.8' 427.1' 436.7 443.5 434.2 435.8 436.2 4 Pass-through 225.3' 266.0' 271.6' 276.9' 276.2' 288.5' 314.2' 324.7 328.7 320.9 325.4 325.8 5 CMO, REMIC, and other 89.6' 99.2' 99.3' 100.0' 105.1' 112.2' 112.9' 111.9 114.8 113.4 110.5 110.4 6 Net unrealized gains (losses) on available-for-sale securities10 6.7 10.7 11.8 11.7 11.7 10.6 12.1 14.1 15.1 15.0 14.0 14.6 7 Off-shore credit to U.S. residents" .... 19.6 18.7 18.3 18.2 18.2 17.5 17.3 16.6 16.7 16.6 16.7 17.3 8 Securitized consumer loans12 141.1 150.1 149.7 150.6 152.5 154.2 155.0 156.7 155.7 155.5 155.7 157.1 9 Credit cards and related plans 126.9 133.2 132.2 134.8 136.7 138.7 139.4 140.6 139.4 139.4 139.6 141.0 10 Other 14.2 16.9 17.5 15.8 15.8 15.5 15.5 16.1 16.2 16.1 16.1 16.0 11 Securitized business loans12 16.9 17.2 16.9 17.2 16.8 16.5 17.0 16.5 16.8 16.8 16.7 16.7 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities' 295.7' 309.2' 308.7' 314.5' 325.7' 335.6' 334.3' 332.3 333.2 333.5 332.3 333.4 13 Securitized consumer loans12 207.3 201.3 205.4 204.2 202.8 205.2 205.0 205.0 206.5 206.7 205.1 204.6 14 Credit cards and related plans 200.3 192.5 197.0 195.8 194.3 196.9 196.8 196.9 198.4 198.6 197.0 196.4 15 Other 7.0 8.7 8.5 8.4 8.5 8.3 8.2 8.1 8.2 8.2 8.1 8.1 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 55.3 64.1 67.0 67.1 65.4' 64.9' 73.5 72.6 75.8 77.3 71.6 70.1 17 Revaluation losses on off-balancesheet items8 49.3 60.1 63.0 64.9 63.6' 62.4' 72.6 72.6 75.8 77.1 71.7 69.9 18 Securitized business loans12 9.9 6.8 5.6 4.6 4.1 3.3 3.0 2.5 3.1 3.1 3.1 1.7 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 US. 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 • September 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 Dec. Jan. Feb. Mar. Apr. May 1 All issuers 1,163,303 1,403,023 1,619,274 1,458,870 1,347,997 1,347,997 1,373,133 1,346,782 1,341,270 1,342,147 1,365,704 Financial companies1 2 Dealer-placed paper, total2 614,142 786,643 963,070 967,748 976,163 976,163 983,059 952,868 946,773 961,002 1,003,088 3 Directly placed paper, total3 322,030 337,240 312,771 266,276 217,787 217,787 236,820 239,037 244,504 232,879 222,597 4 Nonfinancial companies4 227,132 279,140 343,433 224,847 154,047 154,047 153,254 154,876 149,993 148,266 140,020 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Average Average Average Date of change Rate Period rate rate rate 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 June 4.22 2003—June 27 4.00 July 4.00 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 Mar. Apr. May June May 30 June 6 June 13 June 20 June 27 MONEY MARKET INSTRUMENTS 1 Federal funds'-2 3 6.24 3.88 1.67 1.25 1.26 1.26 1.22 1.24 1.26 1.24 1.25 1.21 2 Discount window primary credit2,4 n.a. n.a. n.a. 2.25 2.25 2.25 2.20 2.25 2.25 2.25 2.25 2.21 Commercial paper33 6 Nonfinancial 3 1-month 6.27 3.78 1.67 1.21 1.22 1.21 1.06 1.23 1.21 1.10 0.99 0.97 4 2-month 6.29 3.68 1.67 1.20 1.21 1.20 1.03 1.20 1.18 1.07 0.94 0.95 5 3-month 6.31 3.65 1.69 1.19 1.20 1.19 1.01 1.21 1.16 1.03 0.94 0.92 Financial 6 1-month 6.28 3.80 1.68 1.23 1.24 1.24 1.08 1.24 1.22 1.13 1.01 0.98 7 2-month 6.30 3.71 1.69 1.22 1.23 1.22 1.04 1.22 1.17 1.07 0.96 0.95 8 3-month 6.33 3.65 1.70 1.21 1.23 1.20 1.02 1.20 1.16 1.04 0.95 0.94 Certificates of deposit, secondary market3,7 9 1-month 6.35 3.84 1.72 1.25 1.26 1.26 1.10 1.26 1.25 1.14 1.02 1.00 10 3-month 6.46 3.71 1.73 1.23 1.24 1.22 1.04 1.22 1.18 1.05 0.96 0.98 11 6-month 6.59 3.66 1.81 1.20 1.23 1.19 1.02 1.17 1.13 1.02 0.94 0.97 12 Eurodollar deposits, 3-month3,8 6.45 3.70 1.73 1.21 1.23 1.21 1.03 1.20 1.16 1.04 0.94 0.96 U.S. Treasury bills Secondary market3,5 13 4-week n.a. 2.43 1.60 1.16 1.14 1.06 0.96 1.17 1.13 1.04 0.87 0.83 14 3-month 5.82 3.40 1.61 1.13 1.13 1.07 0.92 1.09 1.05 0.92 0.84 0.86 15 6-month 5.90 3.34 1.68 1.13 1.14 1.08 0.92 1.07 1.03 0.91 0.85 0.89 U.S. TREASURY NOTES AND BONDS Constant maturities9 16 1-year 6.11 3.49 2.00 1.24 1.27 1.18 1.01 1.13 1.08 0.97 0.95 1.02 17 2-year 6.26 3.83 2.64 1.57 1.62 1.42 1.23 1.33 1.25 1.14 1.22 1.28 18 3-year 6.22 4.09 3.10 1.98 2.06 1.75 1.51 1.60 1.53 1.39 1.52 1.59 19 5-year 6.16 4.56 3.82 2.78 2.93 2.52 2.27 2.32 2.27 2.13 2.27 2.36 20 7-year 6.20 4.88 4.30 3.34 3.47 3.07 2.84 2.90 2.85 2.70 2.84 2.93 21 10-year 6.03 5.02 4.61 3.81 3.96 3.57 3.33 3.39 3.36 3.20 3.31 3.42 22 20-year 6.23 5.63 5.43 4.82 4.91 4.52 4.34 4.38 4.37 4.21 4.31 4.43 Treasury long-term average10 '' 23 25 years and above n.a. n.a. 5.41 4.90 4.99 4.61 4.45 4.46 4.46 4.32 4.42 4.54 STATE AND LOCAL NOTES AND BONDS Moody's series12 24 Aaa 5.58 5.01 4.87 4.51 4.60 4.16 4.07 3.98 4.08 4.01 3.94 4.25 25 Baa 6.19 5.75 5.64 5.32 5.34 4.91 4.68 4.63 4.72 4.60 4.53 4.85 26 Bond Buyer series'3 5.71 5.15 5.04 4.76 4.74 4.41 4.33 4.31 4.27 4.21 4.35 4.47 CORPORATE BONDS 27 Seasoned issues, all industries'4 7.98 7.49 7.10 6.42 6.32 5.88 5.70 5.75 5.74 5.59 5.67 5.76 Rating group 28 Aaa15 7.62 7.08 6.49 5.89 5.74 5.22 4.97 5.05 5.00 4.84 4.93 5.06 29 Aa 7.83 7.26 6.93 6.28 6.22 5.85 5.72 5.74 5.74 5.63 5.70 5.76 30 A 8.11 7.67 7.18 6.54 6.45 6.08 5.92 5.97 5.99 5.81 5.88 5.96 31 Baa 8.37 7.95 7.80 6.95 6.85 6.38 6.19 6.24 6.22 6.08 6.17 6.26 MEMO Dividend-price ratio'b 32 Common stocks 1.15 1.32 1.61 1.92 1.81 1.72 1.64 1.70 1.63 1.64 1.63 1.66 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly 8. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for statistical release. For ordering address, see inside front cover. indication purposes only. 1. The daily effective federal funds rate is a weighted average of rates on trades through 9. Yields on actively traded issues adjusted to constant maturities. 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/h 15/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 • September 2003 1.36 STOCK MARKET Selected Statistics 2002 2003 IInnddiiccaattoorr 22000000 22000011 22000022 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June 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 4,862.70 5,104.89 5,075.76 5,055.78 4,738.56 4,724.22 4,977.45 5,269.96 5,583.60 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 809.40 749.46 656.44 574.45 597.75 593.15 587.78 553.90 558.10 583.74 613.26 649.25 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 414.73 444.45 430.63 383.41 405.03 401.39 394.60 367.55 366.90 395.85 425.12 441.81 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 478.99 377.72 260.50 207.83 229.41 236.71 236.42 214.64 211.45 221.06 238.33 254.16 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 552.48 596.61 554.88 494.06 523.50 519.72 522.51 485.72 486.71 522.05 549.91 579.48 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111^^^^^^^11111113333333======= 11111110000000)))))))1111111 1,427.22 1,194.18 993.94 854.63 909.93 899.18 895.84 837.62 846.62 890.03 935.96 988.00 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,, 1111111999999977777773333333 ======= 55555550000000)))))))2222222 922.22 879.08 860.11 807.38 820.62 823.77 824.64 818.84 822.34 837.92 894.74 962.46 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 1,026,867 1,216,529 1,411,689 1,619,896 1,427,254 1,210,332 1,441,846 1,302,011 1,403,742 1,381,580 1,455,858 1,472,560 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 198,790 150,450 134,380 130,570 133,060 134,380 134,910 134,030 135,910 140,450 146,380 148,550 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss4444444 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss5555555 100,680 101,640 95,690 96,620 91,240 95,690 96,430 95,400 90,830 88,770 88,540 87,920 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 84.400 78,040 73,340 66,780 67,380 73,340 66,200 67,260 68,860 70,080 71,270 74,350 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 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 5,753.9 5,834.5 5,970.3 6,032.4 6,153.3 6,255.4 6,433.0 6,487.7 6,697.1r 2 Public debt securities 5,726.8 5,807.5 5,943.4 6,006.0 6,126.5 6,228.2 6,405.7 6,460.8 6,670. P 3 Held by public 3,274.2 3,338.7 3,393.8 3,443.7 3,463.5 3,552.6 3,647.4 3.710.8 3,816.3' 4 Held by agencies 2,452.6 2,468.8 2,549.7 2,562.4 2,662.9 2,675.6 2,758.3 2,750.0 2,853.8' 5 Agency securities 27.1 27.0 26.8 26.4 26.8 27.2 27.3 26.9 27.0' 6 Held by public 27.1 27.0 26.8 26.4 26.8 27.2 27.3 26.9 27.0' 7 Held by agencies .0 .0 .0 .0 .0 .0 .0 .0 .0' 8 Debt subject to statutory limit 5,645.0 5,732.6 5,871.4 5,935.1 6,058.3 6,161.4 6,359.4 6,400.0 6,625.5r 9 Public debt securities 5,644.8 5,732.4 5,871.2 5,935.0 6,058.1 6,161.1 6,359.1 6,399.8 6,625.3' 1U Other debt1 .2 .2 .3 .2 .2 .3 .3 .2 .2' MEMO 11 Statutory debt limit 5,950.0 5,950.0 5,950.0 5,950.0 6,400.0 6,400.0 6,400.0 6,400.0 7.4' 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 US. TREASURY Types and Ownership Billions of dollars, end of period 2002 2003 TTyyppee aanndd hhoollddeerr 11999999 22000000 22000011 22000022 Q3 Q4 Qi Q2 1 Total gross public debt 5,776.1 5,662.2 5,943.4 6,405.7 6,228.2 6,405.7 6,460.8 6,670.1 By type 2 Interest-bearing 5,766.1 5,618.1 5,930.8 6,391.4 6,216.3 6,391.4 6,474.0 6,671.5 3 Marketable 3,281.0 2,966.9 2,982.9 3,205.1 3,136.6 3,205.1 3,331.8 3,394.0 4 Bills 737.1 646.9 811.3 888.8 868.3 888.8 955.0 927.8 5 Notes 1,784.5 1,557.3 1,413.9 1,580.8 1,521.5 1,580.8 1.622.9 1,713.7 6 Bonds 643.7 626.5 602.7 588.7 592.9 588.7 585.7 582.4 7 Inflation-indexed notes and bonds1 100.7 121.2 140.1 146.9 138.9 146.9 153.2 155.0 8 Nonmarketable2 2,485.1 2,651.2 2,947.9 3,186.3 3,079.6 3,186.3 3,142.2 3,277.6 9 State and local government series 165.7 151.0 146.3 153.4 144.3 153.4 148.8 140.5 10 Foreign issues3 31.3 27.2 15.4 11.2 12.5 11.2 12.2 11.7 11 Government 31.3 27.2 15.4 11.2 12.5 11.2 12.2 11.7 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 179.4 176.9 181.5 184.8 185.6 184.8 187.3 189.9 14 Government account series4 2,078.7 2,266.1 2,574.8 2,806.9 2,707.3 2,806.9 2,763.8 2,905.5 15 Non-interest-bearing 10.0 44.2 12.7 14.3 12.0 14.3 13.8 66.5 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 2,701.3 2,757.8 2,763.3 n.a. 17 Federal Reserve Banks6 478.0 511.7 551.7 629.4 604.2 629.4 641.5 652.1 18 Private investors 3,233.9 2,880.4 2,819.5 3,018.5 2,924.8 3,018.5 3,055.6 n.a. 19 Depository institutions 248.7 201.5 181.5 222.6' 210.4 222.6' 152.8 n.a. 20 Mutual funds 228.6 220.8 257.5 279.0' 255.6' 279.0' 299.9 n.a. 21 Insurance companies 123.4 110.2 105.7 133.9' 126.8' 133.9' 140.3 n.a. 22 State and local treasuries7 266.8 236.2 256.5 274.2 269.4 274.2 273.4 n.a. Individuals 23 Savings bonds 186.4 184.8 190.3 194.9 193.3 194.9 196.9 n.a. 24 Pension funds 321.0 304.1 281.6 289.9' 284.9 289.9' 294.6 n.a. 25 Private 109.8 108.4 104.2 113.6' 110.9 113.6' 116.3 n.a. 26 State and Local 211.2 195.7 177.4 176.3' 174.1 176.3' 178.3 n.a. 27 Foreign and international8 1,268.7 1,034.2 1,053.1 1,212.7' 1,167.1' 1,212.7' 1,250.5 n.a. 28 Other miscellaneous investors7-9 590.3 588.7 493.3 433.8 429.9' 433.8 n.a. n.a. 1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 8. Includes nonmarketable foreign series Treasury securities and Treasury deposit funds. 1997. Excludes Treasury securities held under repurchase agreements in custody accounts at the 2. Includes (not shown separately) securities issued to the Rural Electrification Administra- Federal Reserve Bank of New York. tion, depository bonds, retirement plan bonds, and individual retirement bonds. 9. Includes individuals, government-sponsored enterprises, brokers and dealers, bank 3. Nonmarketable series denominated in dollars, and series denominated in foreign cur- personal trusts and estates, corporate and noncorporate businesses, and other investors. rency held by foreigners. SOURCES. Data by type of security, U.S. Treasury Department, Monthly Statement of the 4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. Public Debt of the United States', data by holder, Federal Reserve Board of Governors, Flow 5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin, holdings; data for other groups are Treasury estimates. unless otherwise noted. 6. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin table 1.18. 7. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable federal securities was removed from "Other miscellaneous investors" and added to "State and local treasuries." The data shown here have been revised accordingly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • September 2003 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages 2003 2003, week ending item Mar. Apr. May Apr. 30 May 7 May 14 May 21 May 28 June 4 June 11 June 18 June 25 By type of security 1 U.S. Treasury bills 48,449 45,958 48,474 41,294 48,151 52,457 47,436 43,048 52,776 48,763 46,850 49,540 Treasury coupon securities by maturity 2 Three years or less 126,659 118,650 167,853 143,154 152,603 165,286 156,854 197,753 180,090 139,465 138,686 155,625 3 More than three but less than or equal to six years 117,650 98,983 139,291 108,709 142,386 161,206 127,244 129,030 127,409 137,071 128,937 117,719 4 More than six but less than or equal to eleven years 93,192 72,089 117,206 77,064 91,107 140,383 127,759 115,527 101,488 107,075 113,351 98,517 5 More than eleven 21,768 19,829 36,907 23,356 25,240 36,135 48,728 41,092 30,080 34,987 28,876 30,363 6 Inflation-indexed2 2,987 3,092 4,303 4,610 3,658 4,603 4,171 5,284 3,530 3,260 2,590 2,818 Federal agency and governmentsponsored enterprises 7 Discount notes 52,936 52,188 60,395 54,874 60,610 57,864 64,649 56,480 63,377 60,806 63,515 60,888 Coupon securities by maturity 8 Three years or less 14,229 11,020 11,262 10,293 10,964 12,070 10,625 11,418 11,265 10,915 16,133 13,244 9 More than three years but less than or equal to six years 11,502 9,753 10,180 13,738 8,939 10,909 13,081 8,265 8,033 9,985 12,146 9,087 10 More than six years but less than or equal to eleven years .... 7,006 5,166 7,723 5,089 6,354 11,403 7,517 5,180 7,548 10,413 12,598 7,613 11 More than eleven years 1,584 647 1,078 606 1,083 1,088 806 1,292 1,291 1,614 1,858 1,210 12 Mortgage-backed 241,417 216,931 255,830 208,109 213,423 340,957 274,423 189,863 234,479 286,827 242,180 159,775 Corporate securities 13 One year or less 124,603 125,402 121,358 119,717 125,049 122,813 121,051 112,448 127,082 120,172 137,740 157,533 14 More than one year 23,239 20,592 23,053 23,442 24,252 23,979 23,839 19,941 22,000 20,712 21,941 23,008 By type of counterparty With interdealer broker 15 U.S. Treasury 191,462 164,812 236,729 180,206 217,238 256,307 239,215 236,013 231,733 221,425 211,806 211,037 16 Federal agency and governmentsponsored enterprises 10,578 8,077 10,429 9,417 9,205 12,318 11,705 9,092 8,252 11,461 14,664 10,267 17 Mortgage-backed 68,952 56,005 71,749 51,151 60,669 84,136 83,652 60,189 61,846 74,856 68,994 43,360 18 Corporate 488 554 532 513 565 561 520 459 553 674 609 469 With other 19 U.S. Treasury 219,244 193,790 277,305 217,980 245,907 303,762 272,977 295,721 263,641 249,198 247,483 243,545 20 Federal agency and governmentsponsored enterprises 76,678 70,697 80,208 75,183 78,745 81,016 84,971 73,544 83,264 82,273 91,585 81,776 21 Mortgage-backed 172,465 160,926 184,080 156,958 152,754 256,821 190,770 129,674 172,633 211,971 173,187 116,416 22 Corporate 147,355 145,441 143,879 142,646 148.735 146,232 144,369 131,930 148,529 140,210 159,073 180,073 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 Primaiy 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 item, Dy type ot security Mar. Apr. May Apr. 30 May 7 May 14 May 21 May 28 June 4 June 11 June 18 Net outright positions2 1 U.S. Treasury bills 36,519 21,878 10,092 8,728 11,484 -2,080 9,121 12,506 31,880 17,006 4,854 Treasury coupon securities by maturity 2 Three years or less -11,710 -15,269 -12,954 -11,657 -7,464 -9,227 -13,977 -21,938 -11,112 -14,046 -17,261 3 More than three years but less than or equal to six years -39,305 -•6,833 -42,497 -53,532 ^15,717 -46,088 -38,952 -40,001 ^10,696 -41,486 -43,518 4 More than six but less than or equal to eleven years -12,408 -12,234 -8,149 -16,629 -15,158 -9,276 -7,723 -2,249 -3,930 -8,532 -10,346 5 More than eleven 5,513 5,442 3,180 4,960 3,931 2,540 3,386 4,188 84 -671 1,720 6 Inflation-indexed 2,502 1,544 -127 1,131 801 -876 -265 -297 175 810 1,181 Federal agency and governmentsponsored enterprises 7 Discount notes 54,393 55,454 62,728 52,029 61,273 62,664 65,205 60,923 64,700 56,803 60,626 Coupon securities, by maturity 8 Three years or less 19,765 19,419 20,165 19,707 20,045 21,951 20,462 18,842 18,674 18,237 15,967 9 More than three years but less than or equal to six years 4,786 3,770 4,807 4,786 4,363 5,553 5,007 4,611 4,091 4,109 1,179 10 More than six but less than or equal to eleven years 2,292 3,328 3,875 4,527 2,698 6,165 4,296 3,152 1,980 4,874 4,049 11 More than eleven 2,357 2,351 2,366 2,335 2,115 2,238 2,437 2,696 2,314 2,496 2,925 12 Mortgage-backed 44,922 46,326 42,381 59,860 36,798 31,002 44,600 52,943 52,140 47,767 61,720 Corporate securities 13 One year or less 26,170 29,461 25,518 28,663 26,298 26,662 26,542 22,758 25,084 35,805 36,639 14 More than one year 48,917 48,800 58,309 56,222 59,734 59,672 58,358 55,494 58,257 58,531 60,765 Financing3 Securities in, U.S. Treasury 15 Overnight and continuing 655,300 656,984 694,287 650,467 658,335 674,963 733,053 701,743 715,409 736,562 730,168 16 Term 784,955 791,597 881,597 833,145 853,703 904,041 852,721 901,519 915,202 980,859 985,588 Federal agency and governmentsponsored enterprises 17 Overnight and continuing 153,551 152,545 152,445 146,328 147,218 156,168 159,250 145,252 156,862 150,840 154,483 18 Term 239,424 229,326 243,263 230,043 245,895 240,647 240,514 244,064 247,768 261,047 261,788 Mortgage-backed securities 19 Overnight and continuing 39,251 40,105 42,935 35,912 50,046 41,449 43,397 41,702 31,609 42,939 35,100 20 Term 249,003 244,815 247,674 245,823 243,138 244,968 253,912 249,224 246,398 247,475 258,791 Corporate securities 21 Overnight and continuing 65,856 66,811 68,094 66,112 65,481 66,830 69,146 70,242 69,675 70,022 71,200 22 Term 25,792 25,873 27,031 27,094 27,003 26,943 26,978 26,658 28,293 28,419 28,693 MEMO Reverse repurchase agreements 23 Overnight and continuing 469,568 461,743 482,620 473,825 443,299 461,384 519,203 496,508 506,154 522,296 505,687 24 Term 1,127,240 1,117,241 1,220,752 1,136,101 1,202,046 1,240,502 1,189,810 1,236,660 1,253,396 1,333,776 1,351,985 Securities out, U.S. Treasury 25 Overnight and continuing 638,051 621,314 674,535 628,097 632,456 647,324 712,522 695,228 699,293 715,513 713,018 26 Term 717,308 729,460 801,453 750,585 791,361 830,945 759,014 816,383 820,373 896,211 877,742 Federal agency and governmentsponsored enterprises 27 Overnight and continuing 286,453 282,367 297,432 277,302 278,820 308,347 306,901 291,533 307,065 298,459 297,807 28 Term 176,180 175,326 186,301 170,678 185,100 186,157 184,162 186,747 193,388 196,465 199,129 Mortgage-backed securities 29 Overnight and continuing 328,058 334,764 357,464 321,032 319,815 375,991 370,458 373,830 333,580 342,752 373,056 30 Term 153,495 152,637 147,596 144,276 147,211 157,160 149,444 139,919 139,780 137,057 156,962 Corporate securities 31 Overnight and continuing 141,619 143,957 146,125 147,458 145,762 146,716 148,460 145,808 140,883 155,048 161,359 32 Term 22,184 22,754 25,505 23,533 24,436 24,722 25,647 25,967 28,420 27,824 27,057 MEMO Repurchase agreements 33 Overnight and continuing 1,195,376 1,187,404 1,262,067 1,171,794 1,176,253 1,269,699 1,325,129 1,275,135 1,266,858 1,297,897 1,334,381 34 Term 1,022,027 1,027,811 1,106,335 1,038,380 1,095,866 1,143,555 1,061,290 1,115,507 1,127,615 1,202,635 1,208,707 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 (TI1S) 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 • September 2003 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2002 2003 AAggeennccyy 11999999 22000000 22000011 22000022 Dec. Jan. Feb. Mar. Apr. 1 Federal and federally sponsored agencies 1,616,492 1,851,632 2,121,057 2,351,039 2,351,039 n.a. n.a. n.a. n.a. 2 Federal agencies 26,376 25,666 276 2 2 26,929 26,408 26,886 26,450 3 Defense Department1 6 6 6 6 6 6 6 6 6 4 Export-Import Bank23 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 26,828 354 152 166 195 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 25,660 270 270 270 26,923 26,402 26.880 26,444 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 2,351,037 n.a. n.a. n.a. n.a. 11 Federal Home Loan Banks 529,005 594,404 623,740 674,841 674,841 672,304 684,495 687,573 706,215 12 Federal Home Loan Mortgage Corporation 360.711 426,899 565,071 648,894 648,894 n.a. n.a. n.a. n.a. 13 Federal National Mortgage Association 547,619 642,700 763,500 851,000 851,000 860,300 871,000 873,900 871,500 14 Farm Credit Banks8 68.883 74,181 76,673 85,088 85,088 85,206 86,045 86,802 87,591 15 Student Loan Marketing Association9 41,988 45,375 48,350 47,900 47,900 50,700 50,900 49,100 51,200 16 Financing Corporation 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation" 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt" 42,152 40,575 39,096 37,017 37,017 35,992 35,794 35,780 35,808 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 14,489 14,714 14,750 14,750 14,760 27 Other 21,402 22,174 25,220 22,528 22,528 21,278 21,044 21,030 21,048 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 oo iiss rr ss uu uu ee ss ee oo rr iissssuueerr,, 22000000 22000011 22000022 Nov. Dec. Jan. Feb.' Mar.' Apr.' May' June 1 All issues, new and refunding1 180,403 292,027r 364,002r 37,146r 27,418r 27,132r 30,080 27,899 34,761 33,680 47,173 By type of issue 2 General obligation 64,475 118,554 145,323 11,023 8,431 8,112 12,739 10,103 14,782 11,991 23,765 3 Revenue 115,928 170,047 214,788 24,942 18,961 17,049 17,341 17,796 19,979 21,690 23,408 By type of issuer 4 State 19,944 30,099 33,931 2,109 1,670 1,927 3,654 1,277 5,521 2,818 14,411 5 Special district or statutory authority2 121,185 197,462 259,070 28,296 20,151 17,979 20,769 19,596 23,829 21,620 25,306 6 Municipality, county, or township 39,273 61,040 67,121 5,570 5,570 5,290 5,657 7,026 5,410 9,242 7,456 7 Issues for new capital 154,257 200,363 243,285r 26,505 19,754 18,805r 20,274 15,939 24,593 19,903 35,914 By use of proceeds 8 Education 38,665 50,054 57,894 3,743 5,292 4,823 7,065 5,254 7,570 6,023 5,995 9 Transportation 19,730 21,411 22,093 1,250 1,060 1,417 1,625 1,233 3,479 1,891 2,097 10 Utilities and conservation 11,917 21,917 33,404 8,379 2,031 2,196 176 593 771 1,008 2,003 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 7,227 821 796 422 1,084 1,705 1,816 3,103 1,842 13 Other purposes 47,309 55,733 73,033 7,189 4,992 7,400 7,178 3,722 8,387 5,537 19,904 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 iissssuuee,, ooffffeerriinngg,, 22000000 22000011 22000022 oorr iissssuueerr Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 1 All issues1 l,079,727r 1,541,821' l,429,298r 93,439r 119,659r 127,061r 127,304r 134,957r 155,821r 125,223r 170,003 2 Bonds2 944,810r l,413,267r l,318,863r 85,606r 109,726r 120,183r 120,177r 127,818r 149,928r 116,861r 161,265 By type of offering 3 Sold in the United States 822,012' 1,356,879' 1,232,618' 81,409' 104,112' 114,332' 113,951' 118,567' 144,315' 114,277' 149,437 4 Sold abroad 122.798 56,389 86,246 4,197 5,614 5,851 6,226 9,250 5,613 2,585 11,828 MEMO 5 Private placements, domestic 18,370 16,385 16,224 0 3,525 5,060 4,700 0 0 0 3,258 By industry group 6 Nonfinancial 258.804' 459,560' 282,484' 14,906' 22,029' 20,751' 28,461' 26,991' 27,514' 22,153' 48,353 7 Financial 686,006' 953,707' 1,036,379' 70,700' 87,697' 99,433' 91,716' 100,826' 122,414' 94,708' 112,912 8 Stocks3 311,941 230,632 170,673 7,833 9,933 6,878 7,127 7,139 5,893 8,362 8,738 By type of offering 9 Public 134,917 128,554 110,435 7,833 9,933 6,878 7,127 7,139 5,893 8,362 8,738 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 3,731 4,533 4,154 3,793 2,679 1,053 1,592 3,075 12 Financial 16,548 50,977 48,320 4,102 5,400 2,724 3,334 4,460 4.840 6,770 5,663 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 NonfinancialS tatistics • September 2003 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets' Millions of dollars 2002 2003 IItteemm 22000011 22000022 Nov. Dec. Jan. Feb. Mar. Apr. Mayr June 1 Sales of own shares2 1,806,474 1,825,890 137,914 134,383 152,647 122,321 140,643 141,465 142,688 161,930 2 Redemptions of own shares 1,677,266 1,702,657 122,125 135,213 138,951 113,643 129,337 112,109 118,794 133,992 3 Net sales3 129,208 123,233 15,789 -830 13,696 8,678 11,306 29,356 23,894 27,938 4 Assets4 4,689,624 4,119,322 4,249,351 4,119,322 4,060,568 4,031,818 4,059,934 4,327,560 4,563,023 4,653,262 5 Cash5 219,620 208,479 219,213 208,479 212,792 199,546 214,146 230,032 232,836 237,301 6 Other 4,470,004 3,910,843 4,030,138 3,910,843 3,847,776 3,832,272 3,845,788 4,097,528 4,330,187 4,415,961 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 Q4 Qi Q2 Q3 Q4 Qi Q2 ASSETS 1 Accounts receivable, gross2 958.7 948.3 945.4 948.3 930.0 941.9 945.6 945.4 934.8 n.a. 2 Consumer 328.0 340.1 315.6 340.1 329.8 332.0 334.5 315.6 307.0 n.a. 3 Business 458.4 447.0 455.3 447.0 443.0 449.4 445.5 455.3 453.9 n.a. 4 Real estate 172.3 161.3 174.5 161.3 157.2 160.5 165.5 174.5 174.0 n.a. 5 LESS: Reserves for unearned income 69.7 60.6 57.0 60.6 59.5 58.5 58.0 57.0 54.2 n.a. 6 Reserves for losses 16.7 21.0 23.8 21.0 21.5 21.6 22.0 23.8 24.0 n.a. 7 Accounts receivable, net 872.3 866.7 864.5 866.7 849.0 861.9 865.6 864.5 856.7 n.a. 8 All other 461.5 523.4 584.7 523.4 515.2 530.6 558.0 584.7 610.9 n.a. 9 Total assets 1,333.7 1,390.1 1,449.3 1,390.1 1,364.2 1,392.5 1,423.6 1,449.3 1,467.6 n.a. LIABILITIES AND CAPITAL 10 Bank loans 35.9 50.8 48.0 50.8 49.4 56.9 74.9 48.0 47.3 n.a. 11 Commercial paper 238.8 158.6 141.5 158.6 137.0 130.8 143.1 141.5 127.3 n.a. Debt 12 Owed to parent 102.5 99.2 88.2 99.2 82.6 83.3 82.9 88.2 87.7 n.a. 13 Not elsewhere classified 502.2 567.4 624.9 567.4 574.4 597.2 584.9 624.9 639.1 n.a. 14 All other liabilities 301.8 325.5 339.0 325.5 329.1 331.5 343.4 339.0 344.4 n.a. 15 Capital, surplus, and undivided profits 152.5 188.6 207.6 188.6 191.7 192.9 194.5 207.6 221.8 n.a. 16 Total liabilities and capital 1,333.7 1,390.1 1,449.3 1,390.1 1,364.2 1,392.5 1,423.6 1,449.3 1,467.6 n.a. 1. Includes finance company subsidiaries of bank holding companies but not of 2. Before deduction for unearned income and losses. Excludes pools of securitized retailers and banks. Data are amounts carried on the balance sheets of finance compa- assets, nies; securitized pools are not shown, as they are not on the books. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A31 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables' Billions of dollars, amounts outstanding 2002 2003 TTyyppee ooff ccrreeddiitt 22000000 22000011 22000022 Dec. Jan. Feb. Mar. Apr. May Seasonally adjusted 1 Total 1,185.6 1,246.6 l,270.5r l,270.5r 1,274.4' l,268.0r l,275.0r 1,281.2' 1,286.0 2 Consumer 464.4 513.3 513.1 513.1 517.3r 510.6 513.6 516.7r 514.6 3 Real estate 198.9 207.7 216.5 216.5 215.4 215.6 215.4 220.2 224.2 4 Business . 522.3 525.6 540.9r 540.9r 541.8' 541.8r 546.0r 545.2r 548.0 Not seasonally adjusted 5 Total 1,192.2 1,253.7 l,277.8r l,277.8r l,277.0r l,268.3r l,278.3r U84.4r 1,286.3 6 Consumer 468.3 518.1 518.4 518.4 518.5 510.8 510.2 512.2' 509.3 7 Motor vehicle loans 141.6 173.9 160.2 160.2 160.2 162.3 156.0 160.6' 174.3 8 Motor vehicle leases 108.2 103.5 83.3 83.3 81.9 80.3 81.8 81.2 79.0 9 Revolving2 37.6 31.5 38.9 38.9 38.7 37.3 36.4 38.3' 35.9 10 Other3 40.7 31.1 33.1 33.1 33.1 32.6 32.9 33.1' 32.0 Securitized assets4 11 Motor vehicle loans 97.1 131.9 151.9' 151.9' 154.3' 148.7' 152.3' 149.7' 138.8 12 Motor vehicle leases 6.6 6.8 5.7' 5.7' 5.7' 5.6' 6.2' 6.1' 6.0 13 Revolving 19.6 25.0 31.1' 31.1' 30.4' 30.1' 30.7' 30.6' 30.7 14 Other 17.1 14.3 14.0' 14.0' 14.2' 13.8' 13.9r 13.6' 13.4 15 Real estate 198.9 207.7 216.5 216.5 215.4 215.6 215.4 220.2 224.2 16 One- to four-family 130.6 120.1 135.0 135.0 134.1 134.3 133.9 138.8 143.0 17 Other 41.7 41.2 39.5 39.5 39.6 39.9 40.1 40.3 40.4 Securitized real estate assets4 18 One- to four-family 24.7 40.7 39.7 39.7 39.4 39.1 39.2 38.9 38.6 19 Other 1.9 5.7 2.2 2.2 2.2 2.2 2.2 2.2 2.2 20 Business 525.0 527.9 543.0' 543.0' 543.1' 541.9' 552.8' 552.0' 552.8 21 Motor vehicles 75.5 54.0 60.7 60.7 58.6 60.3 65.3 64.1 65.8 22 Retail loans 18.3 16.1 15.4 15.4 15.1 14.8 16.3 16.8 17.1 23 Wholesale loans5 39.7 20.3 29.3 29.3 27.5 30.5 34.0 34.5 36.1 24 Leases 17.6 17.6 16.0 16.0 15.9 15.0 15.0 12.8 12.6 25 Equipment 283.5 289.4 292.1 292.1 292.0 288.9 287.5 286.9 286.5 26 Loans 70.2 77.8 83.3 83.3 80.1 80.3 78.0 79.4 78.3 27 Leases 213.3 211.6 208.8 208.8 211.8 208.6 209.5 207.5 208.1 28 Other business receivables6 99.4 103.5 102.5 102.5 104.7 104.4 101.1 102.6 102.5 Securitized assets4 29 Motor vehicles 37.8 50.1 50.2 50.2 50.3 50.9 53.1 53.1 52.2 30 Retail loans 3.2 5.1 2.4 2.4 2.4 2.3 2.2 2.2 2.2 31 Wholesale loans 32.5 42.5 45.9 45.9 46.1 46.8 48.6 48.6 47.8 32 Leases 2.2 2.5 1.9 1.9 1.8 1.8 2.2 2.2 2.2 33 Equipment 23.1 23.2 20.2 20.2 20.1 19.4 21.9 21.4 21.6 34 Loans 15.5 16.4 13.0 13.0 12.9 12.3 12.2 11.8 12.0 35 Leases 7.6 6.8 7.2 7.2 7.2 7.1 9.7 9.6 9.6 36 Other business receivables6 5.6 7.7 17.4' 17.4' 17.3' 18.0' 23.9' 23.9' 24.2 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidibreakdowns have been obtained for some components. In addition, previously unavailable aries of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods, such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and I. 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 NonfinancialS tatistics • September 2003 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2002 2003 Dec. Jan. Feb. Mar. Apr. May June Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 234.5 245.0 261.1 266.9 278.9 235.1 252.9 266.0 275.3 283.3 2 Amount of loan (thousands of dollars) 177.0 184.2 197.0 205.1 214.0 179.3 184.2 205.0 210.7 213.7 3 Loan-to-price ratio (percent) 77.4 77.3 77.8 79.0 79.3 78.0 76.2 78.8 78.7 78.0 4 Maturity (years) 29.2 28.8 28.9 28.7 28.9 28.3 28.2 29.0 28.8 28.8 5 Fees and charges (percent of loan amount)2 .70 .67 .62 .64 .79 .37 .40 .62 .61 .64 Yield (percent per year) 6 Contract rate1 7.41 6.90 6.35 5.95 6.00 5.76 5.69 5.83 5.66 5.42 7 Effective rate1,3 7.52 7.00 6.44 6.04 6.12 5.82 5.75 5.92 5.75 5.51 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 5.17 5.18 5.03 4.94 4.97 4.55 4.27 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 610,122 707,015 790,800 790,800 810,609 816,747 815,964 817,894 815,560 812,467 12 FHA/VA 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 67,891 57,281 40,420 34,304 43,028 43,749 41,182 Mortgage commitments (during period) 15 Issued7 163,689 304,084 400,327 30,769 27,814 52,479 42,005 n.a. n.a. n.a. 16 To sell8 11,786 7,586 12,268 1,555 2,717 1,241 2,457 n.a. n.a. n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 17 Total 385,693 491,719 568,173 568,173 568,494 561,534 569,522 568,975 572,801 586,361 18 FHA/VA insured 3,332 3,506 4,573 4,573 4,256 3,796 3,540 n.a. n.a. n.a. 19 Conventional 382,361 488,213 563,600 563,600 564,238 557,738 565,982 n.a. n.a. n.a. Mortgage transactions (during period) 70 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 73,184 48,169 41,831 59,065 51,737 66,175 58,124 22 Mortgage commitments contracted (during period)9 169,231 417,434 620,981 91,223 55,057 48,446 69,200 n.a. n.a. 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 2002 2003 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999999 22000000 22000011 Qi Q2 Q3 Q4 Q1P 1 All holders 6,318,668 6,890,112 7,600,717 7,764,707 7,983,403 8,216,087 8,485,921 8,702,551 By type of property 2 One- to four-family residences 4,787,225 5,205,428 5,738,111 5,875,739 6,049,597 6,247,731 6,459,996 6,643,673 3 Multifamily residences 369,982 405,410 453,569 461,227 472,710 480,353 498,407 507,399 4 Nonfarm, nonresidential 1,058,498 1,170,417 1,292,701 1,309,610 1,340,644 1,364,389 1,401,701 1,424,827 5 Farm 102,964 108,858 116,336 118,131 120,452 123,614 125,818 126,652 By type of holder 6 Major financial institutions 2,394,271 2,618,969 2,791,076 2,788,410 2,861,012 2,981,490 3,090,033 3,167,197 7 Commercial banks2 1,495,420 1,660,054 1,789,819 1,799,118 1,873,362 1,962,198 2,059,267 2,100,238 8 One- to four-family 879,576 965,635 1,023,851 1,017,001 1,070,513 1,143,985 1,222,443 1,245,250 9 Multifamily 67,665 77,803 84,851 86,676 90,745 90,930 94,178 96,830 10 Nonfarm, nonresidential 516,333 582,577 645,619 659,452 675,119 689,481 704,621 719,455 11 Farm 31,846 34,039 35,498 35,990 36,985 37,802 38,025 38,704 12 Savings institutions3 668,064 722,974 758,236 745,998 742,732 773,652 781,378 815,873 13 One- to four-family 548,222 594,221 620,579 605,171 599,402 625,402 631,392 662,858 14 Multifamily 59,309 61,258 64,592 65,199 66,009 68,668 68,679 69,757 15 Nonfarm, nonresidential 60,063 66,965 72,534 75,077 76,768 79,022 80,730 82,669 16 Farm 470 529 531 551 552 560 577 589 17 Life insurance companies 230,787 235,941 243,021 243,293 244,918 245,639 249,387 251,086 18 One- to four-family 5,934 4,903 4,931 4,938 5,162 5,176 5,255 5,035 19 Multifamily 32,818 33,681 35,631 35,671 35,818 35,921 36.470 36,869 20 Nonfarm, nonresidential 179,048 183,757 188,376 188,599 189,850 190,398 193,301 195,402 21 Farm 12,987 13,600 14,083 14,085 14,088 14,144 14,361 13,780 22 Federal and related agencies 320,054 344,225 376,999 385,027 396,091 412.014 437,641 461,119 23 Government National Mortgage Association 7 6 8 8 8 8 5 6 24 One- to four-family 7 6 8 8 8 8 5 6 25 Multifamily 0 0 0 0 0 0 0 0 26 Farmers Home Administration4 73,871 73,323 72,452 72,362 71,970 72,030 72,377 69,988 27 One- to four-family 16,506 16,372 15,824 15,665 15,273 15,139 14,908 14,652 28 Multifamily 11,741 11,733 11,712 11,707 11,692 11,686 11,669 11,654 29 Nonfarm, nonresidential 41,355 41,070 40,965 41.134 41,188 41,439 42,101 40,093 30 Farm 4,268 4,148 3,952 3,855 3,817 3,766 3,700 3,590 31 Federal Housing Admin, and Dept. of Veterans Affairs 3,712 3,507 3,290 3,361 3,473 2,973 3,854 3,824 32 One- to four-family 1,851 1,308 1,260 1,255 1,254 1,252 1,262 1,255 33 Multifamily 1,861 2,199 2,031 2,105 2,218 1,721 2,592 2,569 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 7 22 13 46 118 40 One- to four-family 25 7 2 1 4 2 7 19 41 Multifamily 29 9 3 1 4 2 9 23 42 Nonfarm, nonresidential 98 29 8 4 14 8 30 76 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 149,422 155,626 169,908 176,051 180,491 184,191 190,648 201,125 45 One- to four-family 141,195 144,150 155,060 160,300 164,038 167,006 171,637 180,500 46 Multifamily 8,227 11,476 14,848 15,751 16,453 17,185 19,011 20,625 47 Federal Land Banks 34,187 36,326 40,885 41,981 42,951 44,782 46,257 46,974 48 One- to four-family 2,012 2,137 2,406 2,470 2,527 2,635 2,722 2,764 49 Farm 32,175 34,189 38,479 39,511 40,424 42,147 43,535 44,210 50 Federal Home Loan Mortgage Corporation 56,676 59,240 62,792 59,624 58,872 60,934 63,887 64,408 51 One- to four-family 44,321 42,871 40,309 35,955 34,062 34,616 35,851 35,900 52 Multifamily 12,355 16,369 22,483 23,669 24,810 26,318 28,036 28,508 53 Mortgage pools or trusts5 2,949,768 3,231,228 3,715,980 3,869,277 3,987,579 4,067,069 4,182,140 4,290,351 54 Government National Mortgage Association 582,263 611,553 591,368 587,204 583,745 567,386 537,880 515,910 55 One- to four-family 565,189 592,624 569,460 564,108 559,549 542,208 512,090 489,151 56 Multifamily 17,074 18,929 21,908 23,096 24,196 25,178 25,790 26,759 57 Federal Home Loan Mortgage Corporation 749,081 822,310 948,409 1,012,478 1,053,261 1,058,176 1,082,062 1,073,016 58 One- to four-family 744,619 816,602 940,933 1,005,136 1,045,981 1,050,899 1,072,990 1,064,114 59 Multifamily 4,462 5,708 7,476 7,342 7,280 7,277 9,072 8,902 60 Federal National Mortgage Association 960,883 1,057,750 1,290,351 1,355,404 1,404,594 1,458,945 1,538,287 1,637,474 61 One- to four-family 924,941 1,016,398 1,238,125 1,301,374 1,349,442 1,402,929 1,478,610 1,576,495 62 Multifamily 35,942 41,352 52,226 54,030 55,152 56,016 59,677 60,979 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 657,541 739,615 885,852 914,191 945,979 982,562 1,023,911 1,063,951 69 One- to four-family6 455,021 499,834 591,200 616,300 638,300 669,300 691,900 726,800 70 Multifamily 43,192 49,215 57,402 57,758 59,577 60,227 63,919 64,384 71 Nonfarm, nonresidential 159,328 190,566 237,250 240,134 248,102 253,036 268,092 272,767 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 654,576 695,691 716,661 721,993 738,721 755,514 776,107 783,885 74 One- to four-family 456,009 492,429 506,669 514,560 525,893 540,187 558,434 564,262 75 Multifamily 75,076 75,457 78,252 78,085 78,639 79,127 79,228 79,478 76 Nonfarm, nonresidential 102,274 105,453 107,949 105,210 109,604 111,005 112,826 114,366 77 Farm 21,217 22,352 23,792 24,138 24,585 25,194 25,619 25,779 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 Nonfinancial Statistics • September 2003 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2002 2003 Dec. Jan. Feb. Mar. Apr.' May Seasonally adjusted 1 Total 1,559,532 1,666,816 l,726,120r l,726,120r l,741,124r l,743,548r l,744,549r 1,753,339 1,761,484 2 Revolving 667,395 701,285 712,002r 712,002' 714,885' 718,214' 720,684' 722,754 726,807 3 Nonrevolving2 892,t37 965,531 1,014,118' 1,014,118' 1,026,238' 1,025,334"" 1,023,865' 1,030,585 1,034,677 Not seasonally adjusted 4 Total 1,593,116 1,701,856 l,761,968r 1,761,968r l,756,104r 1,742,542"' l,734,292r 1,741,889 1,749,631 By major holder 5 Commercial banks 541,470 558,421 587,165 587,165 582,065 581,490 575,259 576,011 580,580 6 Finance companies 219,848 236,559 232,269 232,269 232,099 232,291 225,245 231,934 242,181 7 Credit unions 184,434 189,570 195,744 195,744 195,164 194,438 193,082 194,546 195,491 8 Savings institutions 64,557 69,070 68,494 68,494 68,854 69,178 69,537 69,911 70,297 9 Nonfinancial business 82,662 67,955 56,894 56,894 52,838 49,563 48,477 47,697 48,097 10 Pools of securitized assets3 500,145 580,281 621,402' 621,402' 625,086' 615,581' 622,692' 621,790 612,984 By major type of credit4 11 Revolving 693,020 727,297 737,993' 737,993' 726,331' 718,434' 713,554' 718,953 722,371 12 Commercial banks 218,063 224,878 230,990 230,990 220,535 218,821 212,418 212,605 216,791 13 Finance companies 37,627 31,538 38,948 38,948 38,733 37,348 36,350 38,281 35,899 14 Credit unions 22,226 22,265 22,228 22,228 21,645 21,161 20,830 21,038 21,165 15 Savings institutions 16,560 17,767 16,225 16,225 16,141 16,064 15,979 16,144 16,313 16 Nonfinancial business 42,430 29,790 19,221 19,221 16,547 14,203 13,666 13,112 13,293 17 Pools of securitized assets3 356,114 401,059 410,381' 410,381' 412,731' 410,837' 414,311' 417,773 418,910 18 Nonrevolving 900,096 974,559 1,023,975' 1,023,975' 1,029,773 1,024,107' 1,020,738' 1,022,936 1,027,260 19 Commercial banks 323,407 333,543 356,175 356,175 361,529 362,669 362,841 363,406 363,789 20 Finance companies 182,221 205,021 193,321 193,321 193,366 194,944 188,895 193,653 206,282 21 Credit unions 162,208 167,305 173,516 173,516 173,519 173,277 172,252 173,508 174,326 22 Savings institutions 47,997 51,303 52,269 52,269 52,713 53,114 53,558 53,767 53,984 23 Nonfinancial business 40,232 38,165 37,673 37,673 36,291 35,360 34,811 34,584 34,804 24 Pools of securitized assets3 144,031 179,222 211,021' 211,021' 212,355 204,744' 208,381' 204,017 194,075 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 Nov. Dec. Jan. Feb. Mar. Apr. May INTEREST RATES Commercial banks2 1 48-month new car 9.34 8.50 7.54' 7.34' n.a. n.a. 7.11 n.a. n.a. 7.05 2 24-month personal 13,90 13.22 12.25' 12.24' n.a. n.a. 11.70' n.a. n.a. 12.19 Credit card plan 3 All accounts 15.71 14.89 13.42 13.13 n.a. n.a. 13.20 n.a. n.a. 12.90 4 Accounts assessed interest 14.91 14.44 13.09 12.78 n.a. n.a. 12.85 n.a. n.a. 12.82 Auto finance companies 5 New car 6.61 5.65 4.29 3.41 3.50 3.13 3.99 3.83 2.51 2.40 6 Used car 13.55 12.18 10.74 10.70 10.48 10.37 10.43 10.16 9.91 9.82 OTHER TERMS3 Maturity (months) 1 New car 54.9 55.1 56.8 57.2 57.5 58.5 59.2 59.5 60.1 60.7 8 Used car 57.0 57.5 57.5 56.9 56.7 57.5 57.7 57.8 57.7 57.7 Loan-to-value ratio 9 New car 92 91 94 95 96 96 97 96 97 97 10 Used car 99 100 100 100 100 100 99 99 99 99 Amount financed (dollars) 11 New car 20,923 22,822 24,747 26,104 26,647 26,443 24,864 25,152 27,540 27,920 12 Used car 14,058 14,416 14.532 14,610 14,639 14,499 14,231 14,253 14,475 14,568 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 Q1 Q2 Q3 Q4 Ql Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 789.9 1,044.6 1,031.4 848.4 1,134.6 1,298.4 1,187.6 973.1 1,643.2 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 1,097.2 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 12 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 98.8 108.9 121.1 149.1 141.0 61.6 123.0 91.8 142.9 95.3 15 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 83.0 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 21 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 25 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 1,087.8 1,056.6 914.1 1,097.2 1,191.7 1,203.5 1,051.9 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 1,073.1 808.9 958.3 1,112.7 975.9 869.1 875.5 856.7 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 449.3 614.7 481.2 375.4 329.0 294.3 384.1 178.0 387.7 435.9 477.4 550.2 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 76.1 41 Savings institutions 19.7 52.2 48.0 27.3 7.4 39.4 -68.6 -33.1 -12.1 37.1 -46.7 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) 202.2 321.4 212.3 189.7 318.0 314.0 430.1 263.7 241.7 198.5 393.5 326.9 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 .0 .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

A36 Domestic Nonfinancial Statistics • September 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 All sectors 5522 TToottaall nneett bboorrrroowwiinngg,, aallll sseeccttoorrss 1,523.9 2,173.4 2,129.7 1,722.9 2,055.5 2,304.5 2,179.4 1,921.0 2,532.0 2,137.3 2,719.1 2,362.7 5533 OOppeenn mmaarrkkeett ppaappeerr 184.1 193.1 229.9 207.6 -164.4 -163.5 37.8 -255.9 -154.3 70.8 -53.3 -16.1 5544 UU..SS.. ggoovveerrnnmmeenntt sseeccuurriittiieess 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 5555 MMuunniicciippaall sseeccuurriittiieess 56.9 84.2 54.4 23.6 122.8 83.1 174.6 76.6 196.2 156.8 238.2 162.2 5566 CCoorrppoorraattee aanndd ffoorreeiiggnn bboonnddss 430.8 580.2 439.1 384.4 669.9 416.4 727.4 605.5 592.4 140.5 773.0 742.2 5577 BBaannkk llooaannss nn..ee..cc 128.2 145.0 69.0 112.8 -76.2 -18.5 -164.0 -3.0 -139.0 -54.4 -107.5 -101.6 5588 OOtthheerr llooaannss aanndd aaddvvaanncceess 93.2 166.3 147.4 136.2 60.4 116.5 -101.8 -22.7 89.7 148.5 -16.0 52.4 5599 MMoorrttggaaggeess 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 6600 CCoonnssuummeerr ccrreeddiitt 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 218.7 166.0 191.5 235.3 302.7 146.0 397.2 439.3 279.3 -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 US. 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.l (780) quarterly statistical release, tables F.2 through F4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 7 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 I Total net lending in credit markets 1,523.9 2,173.4 2,129.7 1,722.9 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 -18.0 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 1 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 -4.1 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 20 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 ?? 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 24 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 26 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 27 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 28 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 29 Finance companies 23.1 77.3 97.0 108.1 -5.7 -43.3 -100.5 -28.2 39.6 80.0 -22.4 -12.4 30 Mortgage companies -9.1 .0 .0 .0 .0 .0 .0 .0 .0 .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 2,129.7 1,722.9 2,055.5 2,304.5 2,179.4 1,921.0 2,532.0 2,137.3 2,719.1 2,362.7 Other financial sources 35 Official foreign exchange .7 6.6 -8.7 -.4 4.3 13.7 .2 --33..00 12.9 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 42 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 ^141.4 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 -73.0 -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 201.4 217.4 181.8 209.0 210.8 176.4 158.0 137.0 151.0 282.5 203.2 229.9 51 Taxes payable 22.3 19.6 30.7 32.8 17.4 104.9 -55.2 6.0 42.8 53.6 15.1 30.8 52 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 4,291.7 4,742.1 4,975.4 4,124.9 4,995.5 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 .0 -1.5 -.9 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 2244..11 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 -40.3 -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. 1 (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 DomesticN onfinancial Statistics • September 2003 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 2001 2002 2003 11999988 11999999 22000000 22000011 Q3 Q4 Ql Q2 Q3 Q4 Ql Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 16,238.9 17,305.0 18,164.5 19,299.7 18,922.4 19,299.7 19,541.3 19,857.5 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 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 12,486.7 13,624.0 14,779.4 15,920.2 15,602.4 15,920.2 16,111.0 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 1 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 9 Bank loans n.e.c 1,150.2 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 4,362.9 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 307.8 343.8 377.6 425.5 411.4 425.5 432.8 443.9 451.1 468.7 478.0 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 13 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 6,009.6 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 5,338.8 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 19 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 651.3 676.7 742.3 704.9 701.7 704.9 724.5 725.5 720.2 723.1 727.8 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 2b 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 16,890.2 17,981.7 18,906.9 20,004.6 19,624.0 20,004.6 20,265.8 20,583.0 20,910.6 21,408.3 21,737.0 Financial sectors 29 Total credit market debt owed by financial sectors 6,543.6 7,616.8 8,437.6 9,393.2 9,118.1 9,393.2 9,589.5 9,803.8 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 35 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 i/ 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 4b 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 bO Mortgage companies 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 bl 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 b2 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 . 23,433.8 25,598.4 27,344.4 29,397.8 28,742.1 29,397.8 29,855.3 30,386.8 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 bb 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 b6 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 b/ 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 b8 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. 1 (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 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 25,598.4 27,344.4 29,397.8 28,742.1 29,397.8 29,855.3 30,386.8 30,918.4 31,725.2 32,281.0 2 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 3 Household 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 5 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 17 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 Credit unions 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 20 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 21 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 22 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 2.3 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 24 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 25 Closed-end funds 98.4 106.9 100.6 107.4 103.3 107.4 113.5 112.9 112.4 116.7 118.6 26 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 27 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 28 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 29 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 32.1 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 32 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 152.3 276.0 311.0 216.7 193.0 216.7 217.3 198.2 219.5 175.1 219.3 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 23,433.8 25,598.4 27,344.4 29,397.8 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 55.8 57.6 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 42 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 61,602.4 65,751.7 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 Treasury currency -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 76,194.3 87,020.6 90,205.4 91,114.5 87,769.0 91,114.5 91,884.7 89,998.9 87,596.4 90,032.6 90,543.3 I. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L.l and L.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • September 2003 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 2002 2003 2002 2003 2002 2003 Q3 Q4 Qlr Q2 Q3 Q4 Q1 Q2 Q3 Q4 Qlr Q2 Output (1997=100) Capacity (percent of 1997 output) Capacity utilization rate (percent)2 1 Total industry 111.4 110.4 110.5 109.6 146.2 146.6 147.0 147.4 76.2 75.3 75.2 74.3 2 Manufacturing 112.3 111.2 111.0 110.4 151.1 151.4 151.7 152.0 74.3 73.5 73.2 72.7 3 Manufacturing (NAICS) 112.6 111.5 111.3 110.5 152.5 152.8 153.2 153.6 73.8 73.0 72.6 72.0 4 Durable manufacturing 122.3 121.4 121.2 120.3 173.4 174.2 175.0 176.0 70.5 69.7 69.3 68.4 5 Primary metal 85.9 86.0 83.9 80.2 111.4 110.8 110.7 110.8 77.1 77.6 75.8 72.4 6 Fabricated metal products 99.5 98.9 97.1 95.6 139.4 139.6 139.8 139.9 71.3 70.8 69.4 68.4 7 Machinery 88.7 86.7 87.2 87.5 129.9 129.9 129.8 129.6 68.3 66.7 67.2 67.5 8 Computer and electronic products 222.6 224.4 227.8 232.1 355.4 360.3 365.9 372.1 62.6 62.3 62.3 62.4 9 Electrical equipment, appliances, and components 97.7 96.8 95.7 95.0 128.6 128.2 128.0 127.8 75.9 75.5 74.7 74.3 10 Motor vehicles and parts 121.7 120.0 120.5 116.4 147.1 148.4 149.9 151.4 82.7 80.8 80.4 76.9 11 Aerospace and miscellaneous transportation equipment 85.9 85.1 85.8 86.2 145.3 145.1 145.1 145.1 59.1 58.7 59.1 59.4 12 Nondurable manufacturing 100.1 98.8 98.5 98.0 127.5 127.3 127.2 127.1 78.5 77.6 77.4 77.1 13 Food, beverage, and tobacco products .... 100.1 98.8 98.3 98.4 125.7 125.6 125.5 125.2 79.7 78.7 78.3 78.6 14 Textile and product mills 82.9 81.2 79.1 77.6 111.7 111.1 110.6 110.0 74.2 73.1 71.5 70.6 15 Paper 95.7 95.8 93.5 93.3 114.0 113.8 113.5 113.2 84.0 84.2 82.4 82.4 16 Petroleum and coal products 102.3 102.8 102.5 102.8 115.2 115.7 116.1 116.5 88.7 88.9 88.3 88.2 17 Chemical 106.4 104.1 105.4 105.2 141.2 141.3 141.5 141.7 75.3 73.7 74.5 74.2 18 Plastics and rubber products 107.3 105.6 105.3 104.6 133.6 132.9 132.4 131.6 80.4 79.4 79.5 79.5 19 Other manufacturing (non-NAICS) 106.0 106.0 107.0 107.9 129.5 128.7 128.2 127.8 81.8 82.3 83.4 84.5 20 Mining 93.5 93.7 93.1 93.6 110.1 110.2 110.3 110.4 84.9 85.1 84.4 84.7 21 Electric and gas utilities 112.5 111.5 114.3 110.0 127.6 129.7 131.5 133.1 88.2 86.0 86.9 82.6 MEMOS 22 Computers, communications equipment, and semiconductors 295.5 300.4 306.4 316.9 475.3 483.3 493.3 504.9 62.2 62.2 62.1 62.8 23 Total excluding computers, communications equipment, and semiconductors 101.3 100.3 100.3 99.2 130.5 130.6 130.8 131.1 77.6 76.8 76.6 75.7 24 Manufacturing excluding computers, communications equipment, and semiconductors 100.5 99.4 99.1 98.3 132.6 132.6 132.6 132.7 75.8 75.0 74.7 74.1 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 2003 SSeerriieess High Low High Low High Low June Jan. Feb. Mar.' Apr/ Mayr Junep Capacity utilization rate (percent)2 1 Total industry 88.8 74.0 86.6 70.8 85.1 78.6 75.9 75.3 75.3 74.8 74.4 74.3 74.3 2 Manufacturing 88.0 71.6 86.3 68.6 85.6 77.2 74.1 73.3 73.3 73.1 72.5 72.6 72.8 3 Manufacturing (NAICS) 88.1 71.4 86.3 67.9 85.5 77.0 73.7 72.8 72.7 72.4 71.9 71.9 72.1 4 Durable manufacturing 89.0 69.6 87.0 63.1 84.5 73.4 70.5 69.8 69.3 68.7 68.3 68.3 68.4 5 Primary metal 100.9 68.9 91.3 47.2 95.3 75.2 77.1 76.9 77.0 73.5 74.1 71.2 72.0 6 Fabricated metal products .... 91.8 69.6 83.1 61.7 80.1 71.0 71.3 70.1 69.5 68.8 68.2 68.6 68.3 7 Machinery 94.2 74.2 92.8 58.3 84.7 72.9 68.5 66.8 67.4 67.4 67.1 67.6 67.7 8 Computer and electronic products 87.0 66.9 89.8 77.3 81.5 76.4 62.7 62.3 62.2 62.3 62.2 62.5 62.4 9 Electrical equipment, appliances, and components 99.3 68.5 91.9 64.4 87.5 75.0 76.6 74.7 75.1 74.4 73.8 74.4 74.8 10 Motor vehicles and parts 95.3 55.3 96.2 45.2 90.0 56.6 81.1 82.3 80.1 78.7 77.4 76.3 76.9 11 Aerospace and miscellaneous transportation equipment. 75.0 66.3 84.6 69.8 88.9 81.9 59.7 59.3 59.0 59.1 58.9 59.7 59.6 12 Nondurable manufacturing 87.5 72.5 85.7 75.6 86.9 81.8 78.3 77.2 77.4 77.6 77.0 77.0 77.4 13 Food, beverage, and tobacco products 85.9 78.0 84.3 80.2 85.5 81.3 80.3 78.5 78.2 78.3 78.1 78.4 79.3 14 Textile and product mills .... 89.8 62.8 90.1 72.3 91.1 77.1 74.4 70.7 71.7 72.2 71.1 70.4 70.2 15 Paper 97.4 74.7 95.6 81.3 94.0 85.4 83.0 81.9 81.9 83.4 82.3 82.7 82.2 16 Petroleum and coal products . . 93.2 81.0 92.3 71.1 88.9 82.5 89.1 88.0 87.7 89.3 87.6 89.2 87.8 17 Chemical 85.0 68.9 83.0 67.9 85.6 80.8 74.9 73.8 74.9 74.8 74.6 73.6 74.5 18 Plastics and rubber products . . 96.3 61.6 90.5 70.5 91.2 77.1 80.2 79.1 79.5 79.9 78.6 80.1 79.6 19 Other manufacturing (non-NAICS). 85.7 75.7 88.1 85.7 90.2 79.1 81.2 82.0 83.9 84.5 83.9 84.4 85.1 20 Mining 93.6 87.6 94.2 78.6 85.6 83.3 84.9 84.9 84.1 84.1 84.2 84.6 85.4 21 Electric and gas utilities 96.2 82.7 87.9 77.2 92.6 84.2 87.2 87.8 88.4 84.6 84.3 83.4 80.2 MEMOS 22 Computers, communications equipment, and semiconductors . 84.5 63.2 89.9 75.6 80.4 74.6 62.4 61.8 62.1 62.4 62.6 62.8 62.9 23 Total excluding computers. communications equipment, and semiconductors 89.1 74.3 86.6 70.5 85.5 78.8 77.3 76.8 76.8 76.2 75.7 75.7 75.7 24 Manufacturing excluding computers communications equipment, and semiconductors . 88.3 71.9 86.3 68.1 86.1 77.3 75.6 74.9 74.8 74.5 74.0 74.0 74.3 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 • September 2003 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 2002 2002 2003 c pro- 2002 por- avg. tion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr.r Mayr Junep Index (1997= 100) MAJOR MARKETS 1 Total IP 100.0 110.5 110.8 111.6 111.3 111.2 110.6 110.8 109.9 110.7 110.7 110.1 109.5 109.6 109.7 Market groups 2 Final products and nonindustrial supplies 59.8 109.3 109.6 110.1 109.8 109.8 109.1 109.3 108.2 109.1 109.3 108.7 108.1 108.3 108.4 3 Consumer goods 30.5 107.5 107.8 108.5 107.8 107.9 107.0 107.8 106.6 107.7 107.8 107.2 106.7 106.5 107.0 4 Durable 7.5 117.3 118.6 120.0 119.3 118.7 117.0 121.0 117.8 120.5 118.5 117.9 117.0 116.5 117.4 Automotive products 4.3 125.4 127.4 130.6 130.6 129.3 125.9 132.4 125.9 131.3 128.8 127.4 126.0 124.5 126.3 6 Home electronics 0.3 142.9 135.3 137.0 135.4 142.6 140.1 142.1 145.3 152.7 145.9 152.0 155.3 153.2 156.2 7 Appliances, furniture, carpeting 1.3 106.9 107.5 106.9 104.5 104.6 104.9 107.1 107.7 105.4 105.5 105.7 105.9 107.4 106.6 8 Miscellaneous goods 1.6 98.5 100.2 99.2 98.3 97.8 98.2 98.3 98.7 98.7 96.9 96.2 95.1 95.4 95.3 9 Nondurable 22.9 104.1 104.1 104.6 103.8 104.2 103.6 103.3 102.8 103.4 104.1 103.6 103.1 103.0 103.4 10 Non-energy 19.0 102.6 102.8 102.8 102.4 102.6 102.0 101.3 100.8 101.1 101.6 101.7 101.2 101.1 102.1 11 Foods and tobacco 10.3 99.5 100.2 99.8 99.2 99.1 98.7 97.9 97.4 97.6 97.2 97.2 96.9 97.2 98.3 12 Clothing 1.0 72.4 72.9 73.2 71.3 72.1 70.2 70.6 69.9 69.7 69.1 68.0 66.1 65.9 64.5 13 Chemical products 4.8 119.1 118.3 119.5 119.0 119.5 118.3 118.0 116.9 117.9 120.2 120.6 120.6 119.1 121.0 14 Paper products 2.3 108.1 107.2 107.1 108.4 109.8 110.0 108.8 109.0 108.3 110.2 111.0 110.0 110.4 111.1 15 Energy 4.0 112.0 110.9 114.0 111.6 112.8 111.8 114.0 113.3 115.7 117.2 113.8 113.6 113.6 110.2 16 Business equipment 9.7 107.3 108.0 107.3 108.1 106.9 106.0 106.1 104.6 105.6 105.9 105.5 104.8 105.2 105.5 17 Transit 1.7 81.2 81.1 80.2 81.1 79.7 77.3 77.9 75.4 75.7 74.5 73.9 73.1 73.4 72.4 18 Information processing 3.1 153.8 154.9 153.5 153,7 152.1 153.1 152.8 152.7 155.1 156.3 158.0 157.1 157.8 157.6 19 Industrial and other 4.9 91.5 92.2 92.0 92.9 92.0 91.2 91.1 89.7 90.4 90.8 89.9 89.3 89.6 90.6 20 Defense and space equipment 2.2 101.2 101.2 101.2 101.9 102.0 102.5 101.7 102.3 104.1 104.8 105.2 104.7 105.8 106.2 21 Construction supplies 6.8 104.0 104.5 104.4 104.8 104.5 104.2 103.8 102.4 102.3 101.8 101.4 100.7 101.0 101.0 22 Business supplies 10.3 121.9 121.8 123.2 122.6 123.6 123.1 122.5 121.9 122.8 123.7 122.5 121.4 122.1 121.3 23 Materials 40.2 112.2 112.6 113.8 113.6 113.4 112.8 113.1 112.4 113.0 112.8 112.1 111.6 111.5 111.5 24 Non-energy 30.5 115.8 116.4 117.2 117.4 117.2 116.7 116.7 115.6 116.0 115.9 115.4 114.9 114.7 115.0 25 Durable 18.6 128.0 128.6 129.4 130.0 129.5 129.5 129.7 128.1 129.1 128.6 127.6 127.2 127.3 127.5 26 Consumer parts 4.2 110.8 110.4 113.4 112.3 112.4 111.7 114.6 111.1 113.8 111.9 110.9 109.8 109.3 109.8 27 Equipment parts 5.9 182.6 183.6 184.2 186.3 185.7 185.7 185.3 184.4 186.0 186.2 186.2 186.7 188.8 189.8 28 Other 8.4 97.1 97.9 97.7 98.3 97.7 98.0 97.2 96.4 96.3 96.3 95.0 94.6 94.2 94.0 29 Nondurable 11.9 97.0 97.6 98.4 98.2 98.3 97.1 97.0 96.5 96.2 96.4 96.7 96.0 95.6 95.8 30 Textile 0.8 77.6 78.5 79.6 77.8 78.4 77.2 77.0 75.3 74.1 74.2 73.8 72.7 71.5 71.2 31 Paper 3.0 94.8 93.6 95.8 96.1 96.7 96.8 96.9 95.8 94.4 93.6 94.8 93.1 93.6 93.1 32 Chemical 4.2 99.1 100.6 101.3 100.7 100.2 98.2 97.9 97.3 98.3 99.2 99.3 99.4 97.2 98.2 33 Energy 9.7 98.7 98.6 101.0 99.3 99.1 98.4 99.4 99.7 100.9 100.8 99.2 99.1 99.2 98.5 SPECIAL AGGREGATES 34 Total excluding computers, communication equipment, and semiconductors 94.7 100.5 100.8 101.5 101.2 101.2 100.5 100.6 99.8 100.5 100.5 99.8 99.2 99.2 99.2 35 Total excluding motor vehicles and parts 92.9 110.0 110.3 110.8 110.5 110.5 110.0 109.8 109.3 109.8 110.1 109.5 109.0 109.1 109.2 Gross value (billions of 1996 dollars, annual rates) 36 Final products and nonindustrial supplies 59.8 2,801.4 2,811.1 2,829.2 2,822.7 2,818.9 2,794.7 2,817.8 2,783.5 2,808.6 2,807.2 2,791.9 2,775.6 2,778.5 2,777.5 37 Final products 42.7 2,022.5 2,029.7 2,043.2 2,039.1 2,032.4 2,011.7 2,037.3 2,010.7 2,032.1 2,028.9 2,019.7 2,010.1 2,009.9 2,014.3 38 Consumer goods 30.5 1,386.5 1,390.2 1,404.2 1,396.0 1,394.3 1,379.2 1,402.0 1,384.1 1,399.9 1,395.8 1,388.6 1,381.7 1,379.1 1,382.8 39 Equipment total 12.2 626.9 630.8 628.8 634.6 628.7 623.5 624.4 615.8 620.9 622.5 620.9 618.2 621.6 622.1 40 Nonindustrial supplies 17.1 778.9 781.5 786.1 783.6 786.7 783.3 780.5 772.8 776.4 778.3 772.0 765.3 768.5 762.8 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 2002 2002 2003 NAICS pro- 2002 GGrroouupp code2 por- aavvgg.. tion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr/ May' JuneP Index (1997= 100) INDUSTRY GROUPS 41 Manufacturing 84.6 111.4 111.9 112.3 112.4 112.1 111.4 111.6 110.6 111.1 111.1 110.9 110.2 110.3 110.8 42 Manufacturing (NAICS) 79.3 111.7 112.2 112.7 112.8 112.4 111.7 112.0 110.8 111.5 111.3 111.0 110.3 110.4 110.9 43 Durable manufacturing 43.4 121.1 121.8 122.2 122.7 122.0 121.5 122.2 120.5 121.9 121.3 120.5 120.0 120.2 120.6 44 Wood products 321 1.4 100.5 102.2 101.9 102.5 100.7 99.2 98.3 96.9 97.4 96.5 95.9 96.6 96.5 96.4 45 Nonmetallic mineral products 327 2.5 107.9 106.6 107.7 108.5 109.8 109.3 110.2 108.0 109.7 108.0 108.1 108.0 108.4 107.7 46 Primary metal 331 2.5 85.6 86.2 85.0 87.6 85.0 87.6 86.2 84.1 85.0 85.2 81.3 82.0 78.9 79.8 47 Fabricated metal products . 332 6.1 99.0 99.3 99.7 99.3 99.4 99.8 98.7 98.3 97.9 97.1 96.1 95.4 95.9 95.5 48 Machinery 333 5.3 87.9 88.9 88.4 89.4 88.2 86.8 87.4 85.8 86.7 87.4 87.5 87.1 87.6 87.7 49 Computer and electronic products 334 8.1 220.4 220.8 221.5 223.0 223.2 224.2 224.5 224.5 226.6 227.5 229.3 230.1 232.7 233.6 50 Electrical equipment, appliances, and components 335 2.4 97.7 98.7 98.4 98.0 96.5 96.6 97.0 96.9 95.7 96.1 95.2 94.4 95.1 95.5 51 Motor vehicles and parts . . 3361-3 7.1 117.3 118.6 122.1 122.0 121.1 118.3 123.9 117.8 122.9 120.0 118.4 116.8 115.5 116.9 52 Aerospace and miscellaneous transportation equipment 3364-9 3.3 87.6 86.9 85.7 86.3 85.7 85.5 84.8 8855..22 86.0 85.6 8855..77 8855..55 8866..66 86.5 53 Furniture and related products 337 1.7 101.3 101.6 101.4 100.5 101.4 100.7 100.6 98.9 98.8 98.6 97.3 96.7 97.1 98.1 54 Miscellaneous 339 3.1 109.5 110.7 110.6 110.2 109.1 109.3 108.6 110.0 109.5 109.4 108.4 107.1 107.3 108.5 55 Nondurable manufacturing .. 35.9 99.5 99.9 100.4 100.0 100.0 99.1 98.9 98.3 98.2 98.5 98.6 97.8 97.8 98.3 56 Food, beverage, and tobacco products .... 311,2 11.7 100.2 100.9 100.5 100.0 99.9 99.5 98.6 98.3 98.5 98.2 98.2 97.8 98.2 99.2 57 Textile and product mills . . 313,4 1.3 82.5 83.4 83.9 82.5 82.3 81.3 81.7 80.8 78.4 79.2 79.7 78.3 77.5 77.1 58 Apparel and leather 315,6 1.1 72.2 72.6 73.0 71.2 71.8 70.2 70.5 69.7 69.7 69.0 68.0 66.2 65.9 64.6 59 Paper 322 3.1 94.4 94.7 95.2 95.8 96.1 95.7 96.8 95.0 93.0 93.0 94.6 93.3 93.6 93.0 60 Printing and support 323 2.7 97.8 95.5 98.4 98.6 99.9 99.5 98.4 98.9 99.1 97.7 96.3 94.7 95.5 95.4 61 Petroleum and coal products 324 1,9 102.9 102.4 103.0 102.7 101.0 99.4 103.9 105.0 102.0 101.8 103.8 102.0 104.0 102.4 62 Chemical 325 10.2 105.1 105.7 106.9 106.2 106.1 104.6 104.2 103.4 104.4 106.0 105.8 105.7 104.2 105.7 63 Plastics and rubber products 326 3.9 106.0 107.4 107.5 107.3 107.2 106.4 105.8 104.6 104.9 105.3 105.6 103.7 105.4 104.6 64 Other manufacturing (non-NAICS) 1133,5111 5.3 105.5 105.5 105.0 105.8 107.1 106.7 105.4 105.9 105.3 107.5 108.1 107.3 107.9 108.6 65 Mining 21 6.0 93.8 93.5 94.4 93.9 92.2 92.3 93.6 95.2 93.6 92.8 92.8 92.9 93.4 94.4 66 Utilities 2211,2 9.3 110.2 110.1 113.7 110.4 113.3 112.1 112.1 110.5 115.0 116.3 111.7 111.8 111.0 107.1 67 Electric 2211 8.1 111.8 111.4 115.7 112.2 115.8 113.7 113.3 112.2 116.8 118.0 113.6 113.7 112.6 108.5 68 Natural gas 2212 1.3 97.5 103.2 102.7 100.8 99.9 103.6 105.8 101.6 105.4 107.5 101.2 102.1 102.1 99.9 69 Manufacturing excluding computers, communications equipment, and semiconductors 79.3 99.8 100.2 100.6 100.6 100.4 99.7 99.8 98.8 99.3 99.2 98.9 98.1 9988..22 98.6 70 Manufacturing excluding motor vehicles and parts 77.5 110.9 111.3 111.4 111.5 111.3 110.8 110.5 109.9 110.1 110.3 110.2 110099..66 110099..88 110.2 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 • September 2003 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 2002 2003 IItteemm ccrreeddiittss oorr ddeebbiittss 22000000 22000011 22000022 Ql Q2 Q3 Q4 Q1P 1 Balance on current account —411,458 -393,745 -480,861 -106,728 -122,827 -122,724 -128,586 -136,112 2 Balance on goods and services -375,384 -357,819 -418,038 -90,057 -104,888 -106,980 -116,116 -121,567 3 Exports 1,070,054 1,007,580 974,107 236,442 243,696 247,815 246,151 247,848 4 Imports -1,445,438 -1,365,399 -1,392,145 -326,499 -348,584 -354,795 -362,267 -369,415 5 Income, net 19,605 10,689 -3,970 -733 -4,458 -1,747 2,966 2,571 6 Investment, net 24,191 15,701 1,271 550 -3,106 —481 4,306 3,942 7 Direct 94,929 106,485 93,475 23,924 21,410 21,914 26,225 24,477 8 Portfolio -70,738 -90,784 -92,204 -23,374 -24,516 -22,395 -21,919 -20,535 9 Compensation of employees -4,586 -5,012 -5,241 -1,283 -1,352 -1,266 -1,340 -1,371 10 Unilateral current transfers, net -55,679 -46,615 -58,853 -15,938 -13,481 -13,997 -15,436 -17,116 11 Change in U.S. government assets other than official reserve assets, net (increase, -) -941 -486 -32 133 42 -27 -180 37 12 Change in U.S. official reserve assets (increase, -) -290 -4,911 -3,681 390 -1,843 -1,416 -812 83 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -722 -630 —175 -109 -107 -132 -127 897 15 Reserve position in International Monetary Fund 2,308 -3,600 -2,632 652 -1,607 -1,136 -541 -644 16 Foreign currencies -1,876 -681 -574 -153 -129 -148 -144 -170 17 Change in U.S. private assets abroad (increase, -) -568,567 -344,542 -175,272 -35,750 -126,766 31,155 —43,910 -76,017 18 Bank-reported claims2 -148,657 -134,945 -21,357 -148 -69,254 52,999 —4,954 -24,392 19 Nonbank-reported claims -138,790 ^1,997 -31,880 -1,886 -16,210 -11,862 -1,922 3,134 20 U.S. purchase of foreign securities, net -121,908 -84,637 15,801 5,367 -5,843 21,641 -5,364 -25,785 21 U.S. direct investments abroad, net -159,212 -119,963 -137,836 -39,083 -35,459 -31,623 -31,670 -28,974 22 Change in foreign official assets in United States (increase, +) 37,724 5,104 94,860 6,106 47,552 8,992 32,210 35,870 23 U.S. Treasury securities -10,233 10,745 43,144 -1,039 15,138 1,415 27,630 18,099 24 Other U.S. government obligations 40,909 20,920 30,377 7,296 6,568 10,885 5,628 9,380 25 Other U.S. government liabilities2 -1,825 -2,309 137 -597 365 464 -95 -694 26 Other U.S. liabilities reported by U.S. banks2 5,746 -29,978 17,594 -280 24,575 -4,607 -2,094 7,759 27 Other foreign official assets3 3,127 5,726 3,608 726 906 835 1,141 1,326 28 Change in foreign private assets in United States (increase, +) 988,415 760,427 612,123 140,707 173,690 132,486 165,238 152,782 29 U.S. bank-reported liabilities4 116,971 118,379 91,126 -7,446 23,948 20,448 54,176 25,003 30 U.S. nonbank-reported liabilities 170,672 67,489 72,142 46,771 24,610 -8,102 8,863 32,636 31 Foreign private purchases of U.S. Treasury securities, net -76,949 -7,438 96,217 11,789 14,218 57,505 12,705 13,487 32 U.S. currency flows 1,129 23,783 21,513 4,525 7,183 2,556 7,249 4,927 33 Foreign purchases of other U.S. securities, net 455,318 406,633 291,492 74,461 104,187 45,880 66,964 50,944 34 Foreign direct investments in United States, net 321,274 151,581 39,633 10,607 -456 14,199 15,281 25,785 35 Capital account transactions, net5 -799 -1,062 -1,285 -277 -286 -364 -358 -340 36 Discrepancy -44,084 -20,785 -45,852 -4,581 30,438 -48,102 -23,602 23,697 37 Due to seasonal adjustment 8,579 2,091 -12,409 1,744 8,916 38 Before seasonal adjustment -44,084 -20,785 ^45,852 -13,160 28,347 -35,693 -25,346 14,781 MEMO Changes in official assets 39 U.S. official reserve assets (increase, -) -290 —4,9 1 -3,681 390 -1,843 -1,416 -812 83 40 Foreign official assets in United States, excluding line 25 (increase, +) 39,549 7,413 94,723 6,703 47,187 8,528 32,305 36,564 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 12,000 -1,725 -8,132 -8,532 838 -1,289 851 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38^11. 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. 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 2002 2003 AAsssseett 11999999 22000000 22000011 Dec. Jan. Feb. Mar. Apr. May June JulyP 1 Total 71,516 67,647 68,654 79,006 78,434 78,579 80,049 80,405 82,287 81,660 80,621 2 Gold stock1 11,048 11,046 11,045 11,043 11,043 11,043 11,043 11,043 11,044 11,044 11,044 3 Special drawing rights2,3 10,336 10,539 10,774 12,166 11,298 11,368 11,392 11,476 11,880 11,720 11,646 4 Reserve position in International Monetary Fund2 17,950 14,824 17,854 21,979 21,953 21,686 22,858 22,738 23,214 23,210 22,746 5 Foreign currencies4 32,182 31,238 28,981 33,818 34.140 34,482 34,756 35,148 36,149 35,686 35,185 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A45 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS1 Millions of dollars, end of period 2002 2003 AAsssseett 11999999 22000000 22000011 Dec. Jan. Feb. Mar. Apr. May June July' 1 Deposits 71 215 61 136 102 224 254 313 79 898 318 Held in custody 2 U.S. Treasury securities2 632,482 594,094 592,630 678,106 683,837 700,341 710,955 702,041 727,142 747,089 743,308 3 Earmarked gold3 9,933 9,451 9,099 9,045 9,045 9,045 9,045 9,040 9,031 9,004 9,004 1. Excludes deposits and U.S. Treasury securities held for international and regional 3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not organizations. included in the gold stock of the United States. 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury securities, in each case measured at face (not market) value. 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2002 2003 IItteemm 22000000 22000011 Nov.r Dec/ Jan/ Feb.' Mar/ Apr/ Mayp 1 Total1 975,303 987,567 1,066,749 1,078,219 1,083,965 1,107,987 1,116,171 1,114,677 1,164,664 By type 2 Liabilities reported by banks in the United States2 144,593 123,425 141,657 144,080 140,071 151,605 148,939 150,701 174,748 3 U.S. Treasury bills and certificates3 153,010 161,719 190,111 190,375 194,762 196,344 206,153 200,462 210,033 U.S. Treasury bonds and notes 4 Marketable 450,832 454,306 458,592 464,115 464,427 469,250 470,572 469,762 483,437 5 Nonmarketable4 5,348 3,411 3,097 2,769 2,786 2,803 2,821 2,839 2,857 6 U.S. securities other than U.S. Treasury securities5 221,520 244,706 273,292 276,880 281,919 287,985 287,686 290,913 293,589 7 Europe1 240,325 243,448 265,229 271,250 269,290 281,471 276,924 273,251 287,281 8 Canada 13,727 13,440 11,016 11,120 10,496 9,837 9,854 9,746 9,942 9 Latin America and Caribbean 70,442 71,103 62,780 63,022 61,794 62,998 62,743 62,909 65,355 10 Asia 626,016 635,179 699,012 704,126 715,996 725,120 740,595 740,302 774,805 11 Africa 14,690 15,167 15,602 15,338 14,589 15,939 15,215 15,834 15,656 12 Other countries 10,101 9,228 13,108 13,361 11,798 12,620 10,838 12,633 11,623 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 States1 Payable in Foreign Currencies Millions of dollars, end of period 2002 2003 IItteemm 11999999 22000000 22000011 June Sept. Dec. Mar. 1 Banks' own liabilities 88,537 77,779 79,363 89,823 81,719 80,543 88,583 2 Deposits n.a. n.a. n.a. n.a. n.a. n.a. 50,582 3 Other liabilities n.a. n.a. n.a. n.a. n.a. n.a. 38,001 4 Banks' own claims 67,365 56,912 74,640 90,609 82,647 71,724 81,242 5 Deposits 34,426 23,315 44,094 56,221 47,779 34,287 54,194 6 Other claims 32,939 33,597 30,546 34,388 34,868 37,437 27,048 7 Claims of banks' domestic customers2 20,826 24,411 17,631 15,848 20,475 33,659 27,706 8 n.a. n.a. n.a. n.a. n.a. n.a. 5,065 9 Other claims n.a. n.a. n.a. n.a. n.a. n.a. 22,641 I. 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

A46 International Statistics • September 2003 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 2003 IItteemm 22000000 22000011 22000022rr Nov.r Dec.r Jan.' Feb.' Mar.' Apr.' MayP BY HOLDER AND TYPE OF LIABILITY I Total, all foreigners 1,511,410 1,636,538 1,832,746 1,789,929 1,832,746 1,782,342 1,946,084 2,008,047 2,065,127 2,100,548 2 Banks' own liabilities 1,077,636 1,181,097 1,288,991 1,256,437 1,288,991 1,239,613 1,390,175 1,452,838 1,499,241 1,512,158 By type of liability 3 Deposits2 221,248 191,742 175,220 169,194 175,220 169,503 788,923 807,496 823,417 805,851 4 Other 171,401 197,064 246,568 252,869 246,568 267,627 601,252 645,342 675,824 706,307 5 Of which: repurchase agreements3 0 151,143 190,134 190,283 190,134 208,959 306,017 338,528 378,839 390,970 6 Banks' custody liabilities4 433,774 455,441 543,755 533,492 543,755 542,729 555,909 555,209 565,886 588,390 By type of liability 7 U.S. Treasury bills and certificates5 177,846 186,115 229,827 226,571 229,827 231,872 234,547 245,814 242,527 251,905 8 Other negotiable and readily transferable instruments6 145,840 139,807 163,091 155,862 163,091 160,148 172,382 169,890 179,939 194,834 9 Of which: negotiable time certificates of deposit held in custody for foreigners 34.217 20,440 25,821 26,100 25,821 25,448 28,313 28,765 31,435 33,352 10 Of which: short-term agency securities7 0 59,781 72,731 65,927 72,731 67,427 75,249 73,925 76,960 85,226 11 Other 110,088 129,519 150,837 151,059 150.837 150,709 148,980 139,505 143,420 141,651 12 Nonmonetary international and regional organizations8 12,543 10,830 13,467 12,219 13,467 14,624 12,085 9,377 9,003 8,962 N Banks' own liabilities 12,140 10,169 12,362 11,443 12,362 13,921 11,439 9,331 8,950 8,946 14 Deposits2 6,287 3,791 5,769 5,245 5,769 5,298 3,778 2,544 3,086 3,197 15 Other 5.853 6,378 6,593 6,198 6,593 8,623 7,661 6,787 5,864 5,749 16 Banks' custody liabilities4 403 661 1,105 776 1,105 703 646 46 53 16 17 U.S. Treasury bills and certificates5 252 600 1,089 760 1,089 687 621 4 33 3 18 Other negotiable and readily transferable instruments6 149 61 16 16 16 16 25 30 20 13 19 Other 2 0 0 0 0 0 0 12 0 0 20 Official institutions9 297,603 285.144 334,455 331,768 334,455 334,833 347,949 355,092 351,163 384,781 21 Banks' own liabilities 96,989 83,824 93,884 96,719 93,884 93,790 100,320 95,439 95,358 110,867 22 Deposits2 39,525 22,668 20,733 17,754 20,733 17,378 25,713 21,970 23,968 22,528 23 Other 57,464 61,156 73,151 78,965 73,151 76,412 74,607 73,469 71,390 88,339 24 Banks' custody liabilities4 200,614 201,320 240,571 235,049 240,571 241,043 247,629 259,653 255,805 273,914 25 U.S. Treasury bills and certificates5 153,010 161,719 190,375 190,111 190,375 194,762 196,344 206,153 200,462 210,033 26 Other negotiable and readily transferable instruments6 47,366 38,531 50,132 44,137 50,132 45,285 50,763 52,615 55,189 63,217 27 Other 238 1,070 64 801 64 996 522 885 154 664 28 Banks10 972,932 1,053,084 1,176,534 1,138,254 1,176,534 1,116,543 1,141,699 1,173,159 1,210,658 1,216,795 29 Banks' own liabilities 821,306 914,492 981,645 945,091 981,645 921,792 947,736 990,887 1,019,160 1,023,397 30 Deposits2 82,426 68,656 56,020 54,716 56,020 53,156 650,798 674,514 686,570 672,071 31 Other 53,893 53,545 58,422 56,001 58,422 66,153 296,938 316,373 332,590 351,326 32 Banks' custody liabilities4 151,626 138,592 194,889 193,163 194,889 194,751 193,963 182,272 191,498 193,398 33 U.S. Treasury bills and certificates5 16,023 11,541 21,311 18,888 21,311 20,244 18,171 20,730 21,989 20,398 34 Other negotiable and readily transferable instruments6 36,036 24,059 46,770 47,835 46,770 48,614 52,390 48,295 51,753 57,447 35 Other 99,567 102,992 126,808 126,440 126,808 125,893 123,402 113,247 117,756 115,553 36 Other foreigners" 228,332 287,480 308,290 307,688 308,290 316,342 444,351 470,419 494,303 490,010 37 Banks' own liabilities 147,201 172,612 201,100 203,184 201,100 210,110 330,680 357,181 375,773 368,948 38 Deposits2 93,010 96,627 92,698 91,479 92,698 93,671 108,634 108,468 109,793 108,055 39 Other 54,191 75,985 108,402 111,705 108,402 116,439 222,046 248,713 265,980 260,893 40 Banks' custodial liabilities 81,131 114,868 107,190 104,504 107,190 106,232 113,671 113,238 118,530 121,062 41 U.S. Treasury bills and certificates5 8,561 12,255 17,052 16,812 17,052 16,179 19,411 18,927 20,043 21,471 42 Other negotiable and readily transferable instruments6 62,289 77,156 66,173 63,874 66,173 66,233 69,204 68,950 72,977 74,157 43 Other 10,281 25,457 23,965 23,818 23,965 23,820 25,056 25,361 25,510 25,434 MEMO 44 Own foreign offices12 684,987 792.291 867,203 834,374 867,203 802,483 911,640 948,708 996,117 997,017 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

Nonbank-Reported Data A47 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 Nov. Dec. Jan. Feb. Mar. Apr. May1* AREA OR COUNTRY 45 Total, all foreigners 1,511,410 1,636,538 l,832,746r l,789,929r l,832,746r l,782,342r l,946,084r 2,008,047r 2,065,127r 2,100,548 46 Foreign countries 1,498,867 1,625,708 l,819,279r l,777,710r l,819,279r l,767,718r 3,867,998r 3,997,340r 4,112,248r 4,183,172 47 Europe 446,788 521,331 627,537r 615,355' 627,537' 560,622' 708,524' 726,141' 722,353' 759,838 48 Austria 2,692 2,922 2,473 2,442 2,473 2,186 2,330 2,125 2,110 2,472 49 Belgium13 33,399 6,557 8,610 8,031 8,610 4,668' 5,454 7,742 6,668 4,099 50 Denmark 3,000 3,626 4,880 3,339 4,880 6,497 6,603 6,751 5,088' 7,091 51 Finland 1,411 1,446 1,693 2,646 1,693 2,583 1,861 845 1,007' 2,291 52 France 37,833 49,056 39,636 40,748 39,636 36,731 39,680' 39,885 41,280' 46,726 53 Germany 35,519 22,375 34,394 32,021 34,394 31,977' 39,690' 43,681' 42,498' 44,151 54 Greece 2,011 2,307 2,975 3,348 2,975 3,205 2,908 2,002 1,378 1,633 55 Italy 5,072 6,354 4,826 5,642 4,826 4,421 4,812 4,982' 6,431' 5,938 56 Luxembourg13 0 16,894 28,623 27,744 28,623 30,538 36,001' 32,926 36,765 38,547 57 Netherlands 7,047 12,411 10,705 7,907 10,705 10,550' 16,258 13,708 15,207 16,066 58 Norway 2,305 3,727 18,867 14,677 18,867 17,723 10,936 14,163 13,866 15,479 59 Portugal 2,403 4,033 3,574 3,091 3,574 3,448 2,889' 2,802 2,906 2,735 60 Russia 19,018 20,800 23,147 25,444 23,147 24,378 27,648 28,918 30,656 35,062 61 Spain 7,787 8,811 14,030 15,574 14,030 14,849' 16,062' 13,919 14,177 15,851 62 Sweden 6,497 3,375 4,654 3,857 4,654 3,767 4,006 4,611 6,816 6,309 63 Switzerland 74,635 66,403 131,489 141,175 131,489 105,350 119,429' 114,442 100,321 113,510 64 Turkey 7,548 7,474 12,130 11,748 12,130 12,754 11,973 10,996 11,214' 12,253 65 United Kingdom 167,757 204,396 181,840' 182,059' 181,840' 168,426' 278,896' 301,250' 303,976' 308,140 66 Channel Islands and Isle of Man14 0 36,059 45,728 38,935 45,728 26,327 23,024 21,715 21,404 23,478 67 Yugoslavia" 276 309 301 332 301 353 337 332 237 183 68 Other Europe and other former U.S.S.R.16 30,578 41,996 52,962 44,595 52,962 49,891 57,727' 58,346 58,348 57,824 69 Canada 30,982 27,251 24,955' 24,274' 24,955' 27,880 28,618' 31,992' 29,209' 31,867 70 Latin America 120,041 118,025 107,042' 103,904' 107,042' 106,106' 104,120' 104,539' 106,601' 105,480 71 Argentina 19,451 10,704 11,218' 11,644' 11,218' 11,253' 10,574' 10,663' 9,959' 9,735 77 Brazil 10,852 14,169 10,037 10,275 10,037 10,586 10,991' 12,153' 11,243' 12,742 73 Chile 5,892 4,939 6,064 5,360 6,064 5,591 5,807' 5,713' 5,062' 5,534 74 Colombia 4,542 4,695 4,158 4,644 4,158 4,147 4,892' 4,453 4,721 4,649 75 Ecuador 2,112 2,390 2,299 2,252 2,299 2,397 2,239 2,369 2,249' 2,289 76 Guatemala 1,601 1,882 1,381 1,386 1,381 1,436 1,474 1,400' 1,531' 1,493 77 Mexico 32,166 39,871 36,149' 32,612' 36,149' 36,888' 34,960' 36,033' 38,454' 34,771 78 Panama 4,240 3,610 3,845' 3,589' 3,845' 3,972' 4,119' 3,682' 3,665' 3,642 79 Peru 1,427 1,359 1,363 1,360 1,363 1,364 1,361 1,332' 1,376' 1,612 80 Uruguay 3,003 3,172 2,806 2,603 2,806 2,681 2,468' 2,760' 2,896' 2,893 81 Venezuela 24,730 24,974 21,883 22,310 21,883 19,951 19,594 18,208' 19,107' 20,115 82 Other Latin America17 10,025 6,260 5,839 5,869 5,839 5,840 5,641 5,773' 6,338' 6,005 83 Caribbean 573,337 194,814 194,158' 179,396' 194,158' 206,063' 210,915' 223,153 211,562 222,555 84 Bahamas 189,298 178,472 163,052' 145,689' 163,052' 169,978' 165,813' 175,721 161,208 169,537 85 Bermuda 9,636 10,539 23,780' 25,747' 23,780' 27,421' 38,133' 40,552 43,422 45,824 86 British West Indies18 367,197 0 0 0 0 0 0 0 0 0 87 Cayman Islands18 0 440,038 512,570' 503,087' 512,570' 516,117' 524,354' 551,635 629,329 591,805 88 Cuba 90 88 91 94 91 93 207 91 91 92 89 Jamaica 794 1,182 829 828 829 883 851 996 929 834 90 Netherlands Antilles 5,428 3,264 5,001 5,458 5,001 6,329 4,527 4,420 4,592 5,065 91 Trinidad and Tobago 894 1,269 1,405 1,580 1,405 1,359 1,384 1,373 1,320 1,203 92 Other Caribbean17 0 12,135 11,341 11,487' 11,341 11,057 11,786' 11,883' 12,331' 12,922 93 305,554 294,496 318,048' 316,513' 318,048' 318,865' 319,760' 326,773' 318,674' 341,850 China 94 Mainland 16,531 10,498 15,504 14,488 15,504 13,544 13,703' 17,618 14,994 15,618 95 Taiwan 17,352 17,633 18,625' 23,547' 18,625' 22,147 24,040 20,099 21,274 23,069 96 Hong Kong 26,462 26,494 33,032' 31,332' 33,032' 36,777 35,787' 32,964 34,437 33,961 97 India 4,530 3,708 7,951' 7,507 7,951' 8,074 8,836 8,672 9,267 9,394 98 Indonesia 8,514 12,383 14,109 12,915 14,109 12,858 12,419 11,943 12,039 11,891 99 Israel 8,053 7,870 7,231' 8,932' 7,231' 9,638' 10,210' 11.791' 10,886' 10,253 100 Japan 150,415 155,314 161,329' 163,979' 161,329' 162,110 166,421' 176,338 166,060 179,917 101 Korea (South) 7,955 9,019 8,932 6,548 8,932 7,410 7,044 6,730 6,859 7,933 102 Philippines 2,316 1,772 1,793 1,462 1,793 1,364 1,528 1,764 1,549 1,867 103 Thailand 3,117 4,743 7,605 8,698 7,605 6,666 5,033 5,287 5,739 5,292 104 Middle Eastern oil-exporting countries19 23,763 20,035 16,364 11,633 16,364 15,176 12,198' 9,858 10,370 14,447 105 Other 36,546 25,027 25,573 25,472 25,573 23,101' 22,541' 23,709 25,200 28,208 106 10,824 11,365 12,240 11,989 12,240 11,177 14,390 12,980 13,591 13,170 107 Egypt 2,621 2,778 2,652 2,493 2,652 2,494 3,624 3,549 3,607 3,536 108 Morocco 139 274 306 254 306 259 346 283 210 281 109 South Africa 1,010 839 1,114 701 1,114 725 2,406 1,807 2,019 2,172 110 Congo (formerly Zaire) 4 4 2 2 2 3 5 3 4 4 111 Oil-exporting countries20 4,052 4,377 4,370 4,983 4,370 4,126 4,552 3,987 4,146 3,701 112 Other 2,998 3,093 3,796 3,556 3,796 3,570 3,457 3,351 3,605 3,476 113 Other countries 11,341 6,253 11,388 11,705 11,388 9,831 11,532 9,574 12,474 12,099 114 Australia 10,070 5,599 9,332 9,339 9,332 8,237 9,120 6,842 9,854 9,497 115 New Zealand21 0 242 1,796 2,120 1,796 1,320 1,940 2,175 2,123 2,039 116 All other 1,271 412 260 246 260 274 472 557 497 563 117 Nonmonetary international and regional organizations 12,543 10,830 13,467 12,219 13,467 14,624 12,085 9,377 9,003' 8,962 118 International22 11,270 9,331 11,282 10,246 11,282 12,859 10,217 7,955 7,919' 7,782 119 Latin American regional23 740 480 507 477 507 372 547 686 296 339 120 Other regional24 533 935 1,611 1,423 1,611 1,299 1,216 633 614 693 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

A48 International Statistics • September 2003 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2002 2003 AArreeaa oorr ccoouunnttrryy 22000000 22000011 22000022 Nov. Dec. Jan. Feb. Mar.' Apr.' Mayp 1 Total, all foreigners 904,642 1,055,069 l,088,165r l,100,942r l,088,165r 1,083,390 l,135,101r 1,214,784 1,230,233 1,247,439 2 Foreign countries 899,956 1,050,123 l,084,488r l,097,624r 1,084,488' 1,080,231 2,263,492r 2,421,508 2,451,214 2,487,518 3 Europe 378,115 461,176 484,047 489,943 484,047 446,105 519,970' 540,034 538,449 568,320 4 Austria 2,926 4,981 3,603 4.224 3,603 4,334 4,142 4,538 4,875 4,165 Belgium2 5,399 6,391 6,044 5,784 6,044 6,273 6,285' 7,652 88,,111199 4,722 6 Denmark 3,272 1,105 1,109 940 1,109 1,563 428' 748 664488 495 / Finland 7,382 10,350 8,518 9,028 8,518 9,832 9,191 9,462 11,893 8,130 8 France 40,035 60,620 47,705 54,089 47,705 45,914 48,395' 46,458 54,726 52,852 9 Germany 36,834 29,902 22,481 22,103 22,481 23,395 22,525 22,259 19,844 20,343 10 Greece 646 330 477 331 477 296 295 314 234 214 11 Italy 7,629 4,205 3,753 3,945 3,753 3,177 3,002 4,012 4,526 4,133 12 Luxembourg2 0 1,267 3,407 3,224 3,407 3,901 4,360 3,149 4,472 6,433 13 Netherlands 17,043 15,908 23,133 15,572 23,133 19,188 16,008' 21,135 18,083 19,769 14 Norway 5,012 6,236 13,885 11,464 13,885 18,606 9,809 11,091 11,672 11,039 15 Portugal 1,382 1,603 2,226 2,134 2,226 2,356 2,342 1,929 2,260 2,457 16 Russia 517 594 877 787 877 1,025 729' 1,107 699 755 17 Spain 2,603 3,260 5,371 4,752 5,371 4,154 3,251' 2,477 2,908 2,374 18 Sweden 9,226 12,544 15,889 15,239 15,889 15,329 15,458 16,310 16,860 16,184 19 Switzerland 82,085 87,333 126,958 134,425 126,958 87,562 101,202 106,935 81,560 98,528 20 Turkey 3,059 2,124 2,112 2,532 2,112 2,021 2,069 2,280 2,441 2,531 21 United Kingdom 144,938 201,183 173,996 182,805 173,996 167,820 236,653' 236,393 246,061 260,393 22 Channel Islands and Isle of Man3 0 4,478 17,457 11,304 17,457 24,393 27,767 34,994 38,611 44,454 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 5,261 5,046 4,966 6,059 6,791 7,956 8,349 25 Canada 39,837 54,421 60,521' 58,715' 60,521' 65,085 65,982' 57,321 58,990 53,892 26 Latin America 76,561 69,762 56,642 58,257 56,642 54,482 55,413' 55,945 54,620 55,920 21 Argentina 11,519 10,763 6,783 7,253 6,783 6,663 6,615 6,149 6,077 5,918 28 Brazil 20,567 19,434 15,419 15,871 15,419 14,520 15,329 15,899 15,324 16,390 29 Chile 5,815 5,317 5,250 5,358 5,250 5,077 5,220 5,228 5,271 5,301 30 Colombia 4,370 3,602 2,614 2,758 2,614 2,406 2,711' 2,650 2,587 2,480 31 Ecuador 635 495 457 451 457 439 428 460 445 448 32 Guatemala 1,244 1,495 892 889 892 896 831 970 841 799 33 Mexico 17,415 16,522 15,658 15,828 15,658 15,268 14,993 14,791 14,628 15,217 34 Panama 2,933 3,061 1,915 1,961 1,915 1,730 1,856 1,882 1,959 1,898 35 Peru 2,807 2,185 1,411 1,484 1,411 1,403 1,438 1,399 1,447 1,492 36 Uruguay 673 447 255 292 255 255 300 324 322 313 37 Venezuela 3,518 3,077 3,254 3,231 3,254 3,202 3,171 3,293 3,188 3,119 38 Other Latin America6 5,065 3,364 2,734 2,881 2,734 2,623 2,521 2,900 2,531 2,545 39 Caribbean 319,403 370,945 381,637r 379,033' 381,637' 402,454 381,393' 434,477 448,057 443,213 40 Bahamas 114,090 101,034 95,584 93,839 95,584 97,456 86,312' 92,186 86,031 91,506 41 Bermuda 9,260 7,900 9,902 9,902 9,902 12,511 17,031 23,339 21,346 21,552 42 British West Indies7 189,289 0 0 0 0 0 0 0 0 0 43 Cayman Islands7 0 250,376 265,000r 263,995' 265,000' 281,641 265,642' 307,700 329,369 318,460 44 Cuba 0 0 0 0 0 0 0 0 0 0 45 Jamaica 355 418 321 393 321 304 349 381 376 309 46 Netherlands Antilles 5,801 6,729 6,690 6,744 6,690 6,445 7,657 66,,775500 77,,000088 7,104 47 Trinidad and Tobago 608 931 889 912 889 865 966' 888811 884466 849 48 Other Caribbean6 0 3,557 3,251 3,248 3,251 3,232 3,436 3,240 3,081 3,433 49 Asia 77,829 85,882 93,487r 104,218' 93,487' 103,096 101,451' 111144,,118855 111166,,999933 111155,,222299 China 50 Mainland 1,606 2,073 1,057 6,575 1,057 4,799 1,884 9,418 7,819 4,731 51 Taiwan 2,247 4,407 3,772 7,034 3,772 6,563 5,696' 8,259 5,349 5,689 52 Hong Kong 6,669 9,995 7,258 6,849 7,258 6,490 5,652 4,987 4,767 5,549 53 India 2,178 1,348 1,235 921 1,235 1,128 1,170 960 1,050 1,187 54 Indonesia 1,914 1,752 1,270' 1,393' 1,270' 1,223 1,059 1,023 992 993 55 Israel 2,729 4,396 4,660 3,836 4,660 5,182 3,328 3,110 4,014 3,971 56 Japan 34,974 34,125 47,600 47,071 47,600 48,818 56,265 58,391 63,241 62,399 57 Korea (South) 7,776 10,622 11,118 14,297' 11,118 14,473 13,936 13,045 14,837 13,237 58 Philippines 1,784 2,587 2,137 1,555 2,137 2,424 1,533 2,040 1,862 1,651 59 Thailand 1,381 2,499 1,167 756 1,167 830 696 1,382 1,252 1,658 60 Middle Eastern oil-exporting countries8 9,346 7,882 7,952 8,251 7,952 8,004 6,405 7,110 6,871 7,271 61 Other 5,225 4,196 4,261 5,680 4,261 3,162 3,827 4,460 4,939 6,893 62 Africa 2,094 2,095 1,977 1,693 1,977 1,945 1,992 2,051 1,850 1,777 63 Egypt 201 416 487 428 487 511 544 558 551 446 64 Morocco 204 106 53 52 53 53 45 49 42 41 65 South Africa 309 710 617 435 617 545 577 565 468 546 66 Congo (formerly Zaire) 0 0 0 0 0 0 0 0 0 0 6/ Oil-exporting countries9 471 167 222 225 222 240 224 257 215 129 68 Other 909 696 598 553 598 596 602 622 574 558 69 Other countries 6,117 5,842 6,177 5,765 6,177 7,064 5,545' 6,741 6,648 5,408 70 Australia 5,868 5,455 5,566 5,303 5,566 6,212 5,023' 5,940 55,,888877 44,,559944 71 New Zealand10 0 349 569 439 569 833 507 705 664400 666688 72 All other 249 38 42 23 42 19 15 96 121 146 73 Nonmonetary international and regional organizations " 4,686 4,946 3,677 3,318 3,677 3,159 3,355 4,030 4,626 3,680 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

Nonbank-Reported Data A49 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 Nov. Dec.r Jan.r Feb.r Mar.r Apr.r MayP 1 Total claims reported by banks 1,095,869 1,254,863 l,306,306r 1,306,306 1,476,482 2 Banks' own claims on foreigners 904,642 1,055,069 l,088,165r l,100,942r 1,088,165 1,083,390 1,135,101 1,214,784 1,230,233 1,247,439 3 Foreign official institutions2 37,907 49,404 52,198r 60,32 lr 52,198 62,004 39,628 50,908 47,619 48,815 4 Foreign banks3 725,380 849,491 873,077r 876,74 lr 873,077 854,787 832,440 869,909 885,366 896,872 5 Other foreigners4 141,355 156,174 162,890 163,880 162,890 166,599 263,033 293,967 297,248 301,752 6 Claims on banks' domestic customers3 191,227 199,794 218,141 218,141 261,698 7 Non-negotiable deposits 100,352 93,565 80,269 80,269 98,891 8 Negotiable CDs 87,925 9 Other short-term negotiable instruments6 . . 78,147 90,412 13 i ,780 131,780 58,025 10 Other claims 12,728 15,817 6,092 6,092 16,857 MEMO 11 Non-negotiable deposits7 354,995 372,679 395,189 381,134 12 Negotiable CDs7 2,221 2,621 1,741 2,198 13 Other short-term negotiable instruments7 9,722 13,444 13,788 13,147 14 Other claims7 n.a. n.a. n.a. n.a. n.a. n.a. 768,163 826,040 819,515 850,960 15 Own foreign offices8 630,137 749,124 795,060r 781,783r 795,060 768,492 807,290 848,417 854,911 870,714 16 Loans collateralized by repurchase agreements9 137,979 161,585 156,299 161,585 185,804 245,798 287,043 311,728 319,597 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

A50 International Statistics • September 2003 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 2001 2002 2003 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999999 22000000 22000011 Dec. Mar. June Sept. Dec. Mar.f 1 Total 53,020 73,904 66,679 66,679 74,887 70,431 68,225 67,664 73,558 By type 2 Financial liabilities 27,980 47,419 41,034 41,034 46,408 42,826 41,311 39,561 45,119 3 Short-term negotiable securities' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21,415 4 Other liabilities' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2233,,770044 Of which: 5 Borrowings' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6,398 6 Repurchase agreements' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 19,181 By currency / U.S. dollars n.a. 25,246 18,763 n.a. 20,454 22,050 18,913 18,844 18,363 a Foreign currency2 n.a. 22,173 22,271 n.a. 25,954 20,776 22,398 20,717 26,756 9 Canadian dollars n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 527 10 Euros n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12,336 li United Kingdom pounds sterling n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7,209 12 Japanese yen n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2,880 13 All other currencies n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3,804 By area or country Financial liabilities 14 Europe 23,241 34,172 31,806 31,806 39,379 35,004 34,809 34,335 35,800 15 Belgium-Luxembourg 31 147 154 154 119 120 232 144 1,164 16 France 1,659 1,480 2,841 2,841 3,531 4,071 3,517 5,243 2,782 17 Germany 1,974 2,168 2,344 2,344 2,982 2,622 2,865 2,923 3,343 18 Netherlands 1,996 2,016 1,954 1,954 1,946 1,935 1,915 1,825 1,797 19 Switerzerland 147 104 94 94 84 61 61 61 19 20 United Kingdom 16,521 26,362 22,852 22,852 28,694 24,338 24,303 22,531 25,539 MEMO: 21 Euro area3 n.a. 7,587 8,798 n.a. 9,991 10,107 10,369 11,211 10,100 22 Canada 284 411 955 955 1,067 1,078 583 591 492 23 Latin America and Caribbean 892 4,125 2,858 2,858 1,547 1,832 1,088 1,504 3,816 24 Bahamas 1 6 157 157 5 5 0 23 334 25 Bermuda 5 1,739 960 960 836 626 588 990 3,046 26 Brazil 126 148 35 35 35 38 65 65 127 27 British West Indies4 492 406 1,627 1,627 612 1,000 377 365 n.a. 28 Cayman Islands n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 29 Mexico 25 26 36 36 27 25 26 31 29 30 Venezuela 0 2 2 2 1 5 1 1 0 31 Asia 3,437 7,965 5,042 5,042 4,020 4,498 4,450 2,932 4,303 32 Japan 3,142 6,216 3,269 3,269 3,299 2,387 2,447 1,832 2,043 33 Middle Eastern oil-exporting countries5 4 12 10 10 15 14 16 14 17 34 Africa 28 52 53 53 122 120 128 131 116 35 Oil-exporting countries6 0 0 5 5 91 91 91 91 91 36 All other7 98 694 320 320 273 294 253 68 592 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A51 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States—Continued Millions of dollars, end of period 2001 2002 2003 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999999'' 22000000'' 22000011'' Dec. Mar. June Sept. Dec. Mar.f 37 Commercial liabilities 25,040 26,485 25,645 25,645 28,479 27,605 26,914 28,103 28,439 38 Trade payables 12,834 14,293 11,781 11,781 15,119 14,205 13,819 14,699 15 39 Advance payments and other liabilities n.a. 12,192 13,864 n.a. 13,360 13,400 13,095 13,404 14 By currency 40 Payable in U.S. dollars 23,722 23,685 24,162 24,162 26,715 26,004 25,621 26,243 24,879 41 Payable in foreign currencies2 1,318 2,800 1,483 1,483 1,764 1,601 1,293 1,860 3,560 42 Canadian dollars n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 114 43 Euros n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1,074 44 United Kingdom pounds sterling n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 661 45 Japanese yen n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 242 46 All other currencies n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1,469 By area or country Commercial liabilities 47 Europe 9,262 9,629 9,219 9,219 8,168 8,015 8,065 8,257 8,794 48 Belgium-Luxembourg 140 293 99 99 105 94 134 141 186 49 France 672 979 734 734 713 827 718 765 867 50 Germany 1,131 1,047 905 905 584 570 855 807 n.a. 51 Netherlands 507 300 1,163 1,163 236 312 506 590 732 52 Switzerland 626 502 790 790 648 749 592 433 548 53 United Kingdom 3,071 2,847 2,279 2,279 2,747 2,551 2,317 2,649 2,895 MEMO 54 Euro area3 n.a. 4,518 5,141 n.a. 3,673 3,718 4,258 4,200 4,350 55 Canada 1,775 1,933 1,622 1,622 1,802 2,027 1,570 1,588 1,768 56 Latin America and Caribbean 2,310 2,381 2,727 2,727 3,515 2,817 2,923 3,073 3,035 57 Bahamas 22 31 52 52 23 12 14 51 59 58 Bermuda 152 281 591 591 433 422 468 538 519 59 Brazil 145 114 290 290 277 320 290 253 246 60 British West Indies4 48 76 45 45 67 46 47 36 n.a. 61 Cayman Islands n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 80 62 Mexico 887 841 899 899 1,518 1,015 1,070 1,170 1,091 63 Venezuela 305 284 166 166 281 204 327 177 143 64 Asia 9,886 10,983 10,517 10,517 13,116 12,866 12,462 13,382 13,121 65 Japan 2,609 2,757 2,581 2,58 LC 4,28 LC 4,143c 4,031L 4,292' 4,137 66 Middle Eastern oil-exporting countries5 2,493 2,832 2,639 2,598 3,289 3,432 3,857 3,979 3,546 67 Africa 950 948 836 836 1,000 916 876 827 927 68 Oil-exporting countries6 499 483 436 436 454 349 445 405 423 69 All other7 881 611 724 724 878 964 1,018 976 794 MEMO 70 Financial liabilities to foreign affiliates8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12,917 1. Data available beginning March 2003. 6. Comprises Algeria, Gabon, Libya, and Nigeria. 2. Foreign currency detail available beginning March 2003. 7. Includes nonmonetary international and regional organizations. 3. Comprises Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, 8. Data available beginning March 2003. Includes financial liabilities to foreign affiliates Netherlands, Portugal, and Spain. As of December 2001, also includes Greece. of insurance underwriting subsidiaries of Bank/Financial Holding Companies and other 4. Beginning March 2003, data for the Cayman Islands replaced data for the British West financial intermediaries. These data are not included in lines 1-6 above. Indies. 5. Comprises Bahrain, Iran, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 International Statistics • September 2003 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 2001 2002 2003 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999999 22000000 22000011 Dec. Mar. June Sept. Dec. Mar.i> 1 Total 76,642 90,157 113,082 113,082 115,969 116,608 112,784 102,566 111,109 By type 2 Financial claims 40,231 53,031 81,287 81,287 85,359 87,331 84,038 71,389 81,687 3 Non-negotiable deposits n.a. 23,374 29,801 n.a. 41,813 42,136 38,074 27,064 43,459 4 Negotiable securities n.a. 29,657 51,486 n.a. 43,546 45,195 45,964 44,325 55,,772299 Of which: 5 Negotiable CDs' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 216 6 Other claims 21,665 29,657 51,486 51,486 43,568 45,188 45,959 44,064 3322,,449999 Of which: 7 Loans1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12,674 8 Repurchase agreements' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5,669 By currency 9 U.S. dollars n.a. 46,157 74,471 n.a. 79,722 82,353 79,307 65,070 74,609 10 Foreign currency2 n.a. 6,874 6,816 n.a. 5,637 4,978 4,731 6,319 7,078 11 Canadian dollars n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 604 12 Euros n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3,055 13 United Kingdom pounds sterling n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2,083 14 Japanese yen n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 880 15 All other currencies n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 456 By area or country Financial claims 16 Europe 13,023 23,136 26,118 26,118 36,032 37,003 32,139 29,018 34.599 17 Belgium-Luxembourg 529 296 625 625 751 797 656 722 1,494 18 France 967 1,206 1,450 1,450 3,489 3,921 3,854 3,247 3,253 19 Germany 504 848 1,068 1,068 4,114 3,972 4,292 4,245 6,240 20 Netherlands 1,229 1,396 2,138 2,138 3,253 3,995 4,024 3,648 4,355 21 Switerzerland 643 699 589 589 308 1,010 1,135 383 1,497 22 United Kingdom 7,561 15,900 16,510 16,510 17,982 16,133 11,454 10,663 11,203 MEMO: 23 Euro area3 n.a. 5,580 8,626 n.a. 16,903 18,689 18,542 17,281 20,251 24 Canada 2,553 4,576 6,193 6,193 5,471 5,537 5,485 5,013 5,060 25 Latin America and Caribbean 18,206 19,317 41,201 41,201 34,979 37,489 38,800 29,612 31,802 26 Bahamas 1,593 1,353 976 976 1,197 1,332 715 1,038 757 27 Bermuda 11 19 918 918 611 704 1,157 724 387 28 Brazil 1,476 1,827 2,127 2,127 1,892 2,036 2,226 2,286 2,324 29 British West Indies4 12,099 12,596 32,965 32,965 27,328 29,569 30,837 21,528 n.a. 30 Cayman Islands n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25,225 31 Mexico 1,798 2,448 3,075 3,075 2,777 2,823 2,871 2,921 1,780 32 Venezuela 48 87 83 83 79 60 71 104 161 33 Asia 5,457 4,697 6,430 6,430 6,414 5,754 6,041 5,358 7,596 34 Japan 3,262 1,631 1,604 1,604 2,051 1,146 1,481 1,277 1,226 35 Middle Eastern oil-exporting countries5 23 80 135 135 79 78 88 79 68 36 Africa 286 411 414 414 390 431 379 395 358 37 Oil-exporting countries6 15 57 49 49 51 64 29 25 26 38 All other7 706 894 931 931 2,073 1,117 1,194 1,993 2,272 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A53 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States—Continued Millions of dollars, end of period 2001 2002 2003 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999999 22000000 22000011 Dec. Mar. June Sept. Dec. Mar."1 39 Commercial claims 36,411 37,126 31,795 31,795 30,610 29,277 28,746 31,177 29,422 40 Trade receivables 32,602 33,104 27,513 27,513 25,845 24,716 24,171 26,385 24,713 41 Advance payments and other claims 3,809 4,022 4,282 4,282 4,765 4,561 4,575 4,792 4,709 By currency 42 Payable in U.S. dollars 34,204 33,401 29,393 29,393 26,864 25,361 25,441 26,481 22,304 43 Payable in foreign currencies2 2,207 3,725 2,402 2,402 3,746 3,916 3,305 4,696 7,118 44 Canadian dollars n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 385 45 Euros n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1,803 46 United Kingdom pounds sterling n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1,451 47 Japanese yen n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 278 48 All other currencies n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3,201 By area or country Commercial claims 49 Europe 16,389 15,938 14,022 14,022 12,935 12,314 12,680 14,187 13,329 50 Belgium-Luxembourg 316 452 268 268 272 207 254 269 228 51 France 2,236 3,095 2,921 2,921 2,883 2,828 2,972 3,164 2,803 52 Germany 1,960 1,982 1,658 1,658 1,198 1,163 1,158 1,202 1,285 53 Netherlands 1,429 1,729 529 529 642 832 1,089 1,490 1,128 54 Switzerland 610 763 611 611 436 472 404 503 449 55 United Kingdom 5,827 4,502 3,833 3,833 3,579 3,387 3,236 3,727 3,749 MEMO 56 Euro area3 n.a. 8,819 7,961 n.a. 7,237 7,106 7,707 8,580 8,082 57 Canada 2,757 3,502 2,818 2,818 2,760 2,752 2,623 2,790 2,550 58 Latin America and Caribbean 5,959 5,851 4,859 4,859 4,912 4,530 4,324 4,346 4,773 59 Bahamas 20 37 42 42 42 28 35 31 61 60 Bermuda 390 376 369 369 422 214 270 287 545 61 Brazil 905 957 954 954 837 829 862 750 737 62 British West Indies4 181 137 95 95 73 26 12 19 n.a. 63 Cayman Islands n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 59 64 Mexico 1,678 1,507 1,391 1,391 1,225 1,283 1,184 1,259 1,094 65 Venezuela 439 328 288 288 312 316 340 288 231 66 Asia 9,165 9,630 7,849 7,849 7,513 7,309 6,778 7,324 5,981 67 Japan 2,074 2,796 2,006 2,006 1,975 2,064 2,083 2,341 1,432 68 Middle Eastern oil-exporting countries5 1,573 1,024 850 833 657 889 819 818 614 69 Africa 631 672 645 645 630 605 637 584 636 70 Oil-exporting countries6 171 180 88 88 109 94 107 95 139 71 All other7 1,537 1,533 1,602 1,602 1,860 1,767 1,704 1,946 2,153 MEMO 72 Financial claims on foreign affiliates8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11,915 1. Data available beginning March 2003. 6. Comprises Algeria, Gabon, Libya, and Nigeria. 2. Foreign currency detail available beginning March 2003. 7. Includes nonmonetary international and regional organizations. 3. Comprises Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, 8. Data available beginning March 2003. Includes financial liabilities to foreign affiliates Netherlands, Portugal, and Spain. As of December 2001, also includes Greece. of insurance underwriting subsidiaries of Bank/Financial Holding Companies and other 4. Beginning March 2003, data for the Cayman Islands replaced data for the British West financial intermediaries. These data are not included in lines 1-8 above. Indies. 5. Comprises Bahrain, Iran, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • September 2003 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2003 2002 2003 TTrraannssaaccttiioonn,, aanndd aarreeaa oorr ccoouunnttrryy 22000011 22000022 J M an ay .- Nov. Dec. Jan.r Feb/ Mar/ Apr/ Mayf U.S. corporate securities STOCKS 1 Foreign purchases 3,051,332 3,203,259r 1,161,356 264,363' 216,726' 216,731 201,408 236,668 233,275 273,274 2 Foreign sales 2,934,942 3,153,816r 1,152,568 257,887' 214,287' 219,527 203,486 233,828 228,918 266,809 3 Net purchases, or sales (-) 116,390 49,443r 8,788 6,476r 2,439r -2,796 -2,078 2,840 4,357 6,465 4 Foreign countries 116,187 49,496r 8,836 6,469r 2,423r -2,773 -2,080 2,860 4,360 6,469 5 Europe 88,099 33,004r 2,845 4,407 4,882' -2,186 1,900 1,360 250 1,521 6 France 5,914 2,127 1,287 -323 676 206 270 1,816 -1,647 642 / Germany 8,415 -129' -1,286 31 517' -63 -65 -780 -118 -260 8 Netherlands 10,919 4,535 114 629 792 366 -75 651 --11,,009900 262 9 Switzerland 3,456 2,655r -2,539 1,581 909 -724 -990 -22 9988 -901 10 United Kingdom 38,493 15,173 -1,483 2,062 784 -2,761 1,938 -258 779 -1,181 11 Channel Islands and Isle of Man1 -698 -255 -47 23 -22 -2 -17 -42 44 -30 12 Canada 10,984 7,432r 4,368 46' 746 1,481 -1,594 2,376 2,540 -«5 13 Latin America and Caribbean -5,154 -15,422r -1,089 2,687' -2,324' -3,104 -2,253 -1,538 1,230 4,576 14 Middle East2 1,789 -1,293 -122 -232 71 -72 -21 -51 -7 29 15 Other Asia 20,726 22,672r 4,954 -773' -894 1,287 2,774 478 -73 488 lb Japan 6,788 12,337 -387 -961 -1,131 561 1,008 -60 --11,,009933 -803 1/ -366 -72 31 -16 -20 38 -9 -29 6688 -37 18 Other countries 109 3,175 -2,151 350 -38 -217 -2,877 264 352 327 19 Nonmonetary international and regional organizations 203 -53 —48 7 16 -23 2 -20 -3 -4 BONDS3 20 Foreign purchases 1,942,690 2,549,132r 1,434,748 258,716' 207,380 228,232 207,404 307,241 307,274 384,597 21 Foreign sales 1,556,745 2,171,786' 1,216,175 218,191' 178,510 180,540 184,293 263,003 265,109 323,230 22 Net purchases, or sales (-) 385,945 377,346r 218,573 40,525r 28,870 47,692 23,111 44,238 42,165 61,367 23 Foreign countries 385,379 377,083r 218,777 40,485r 28,684 47,836 23,276 44,307 41,755 61,603 24 Europe 195,412 167,140' 113,055 16,687' 10,526 27,938 16,528 20,639 25,309 22,641 25 France 5,028 3,771 1,787 383 -434 1,092 63 142 362 128 26 Germany 12,362 5,149 1,668 558 1,249 545 999 -180 45 259 27 Netherlands 1,538 -406 376 -61 -19 118 611 -2 -604 253 28 Switzerland 5,721 8,521 4,676 743 304 1,154 859 1,034 1,263 366 29 United Kingdom 152,772 109,836 69,591 8,812 6,768 15,960 6,826 14,772 17,009 15,024 30 Channel Islands and Isle of Man1 2,000 11,173 17,107 4,917 959 5,420 1,533 4,138 2,696 3,320 31 Canada 4,595 -1,037 1,004 -757 -2,180 -892 193 1,169 -894 1,428 32 Latin America and Caribbean 77,019 82,837 38,619 5,471 7,379 6,564 -6,379 10,217 1,965 26,252 33 Middle East2 2,337 2,315 386 387 -120 591 42 37 -19 -265 34 Other Asia 106,400 121,470 64,575 18,374 12,944 13,593 12,767 11,038 15,861 11,316 35 Japan 33,687 48,482 22,509 10,456 4,863 4,025 44,,556666 1,456 8,579 3,883 36 Africa 760 860 1,169 56 28 53 8800 779 147 110 37 Other countries -1,144 3,498 -31 267 107 -11 45 428 -614 121 38 Nonmonetary international and regional organizations 566 263 -204 40 186 -144 -165 -69 410 -236 Foreign securities 39 Stocks, net purchases, or sales (-) -50,113 -1,629 -25,546 -981 -2,751 -6,893 ^1,474 -5,365 2,071 -10,885 40 Foreign purchases 1,397,664 1,260,278 469,263 101,821 81,804 94,622 83,683 91,102 100,060 99,796 41 Foreign sales 1,447,777 1,261,907 494,809 102,802 84,555 101,515 88,157 96,467 97,989 110,681 42 Bonds, net purchases, or sales (-) 30,502 28,406 22,319 2,269 -5,157 -1,915 4,493 7,315 -1,211 13,637 43 Foreign purchases 1,160,102 1,377,020 778,364 137,931 117,917 140,513 122,893 166,837 151,872 196,249 44 Foreign sales 1,129,600 1,348,614 756,045 135,662 123,074 142,428 118,400 159,522 153,083 182,612 45 Net purchases, or sales (-), of stocks and bonds -19,611 26,777 -3,227 1,288 -7,908 -8,808 19 1,950 860 2,752 46 Foreign countries -19,024 26,814 -3,217 1,300 -7,922 -8,829 -77 1,969 947 2,773 47 Europe -12,108 15,407 5,503 6,105 -9,095 -5,090 -1,592 6,268 4,432 1,485 48 Canada 2,943 4,849 5,697 -167 712 3,890 603 -302 -600 2,106 49 Latin America and Caribbean 4,315 4,562 -15,826 518 1,045 -7,886 862 -3,381 -6,270 849 50 -11,869 1,591 1,815 -5,256 -987 -261 194 -971 3,456 -603 51 Japan -20,116 -9,119 2,659 -6,617 -2,039 -1,233 -1,447 1,557 2,218 1,564 52 -558 -379 -68 100 40 -55 -34 27 -11 5 53 Other countries -1,747 784 -338 0 363 573 -110 328 -60 -1,069 54 Nonmonetary international and regional organizations -587 -37 -10 -12 14 21 96 -19 -87 -21 1. Before January 2001, data included in United Kingdom. 3. Includes state and local government securities and securities of U.S. government 2. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. Saudi Arabia, and United Arab Emirates (Trucial States). corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Holdings and Transactions A55 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions1 Millions of dollars; net purchases, or sales (-) during period Area or country Jan.- Apr/ May? May 1 Total estimated 18,514 120,537R 74,022 20,337R 13,638R 2,819 -2,421 26,390 8,325 38,909 2 Foreign countries 19,200 118,526r 73,670 20,417' 13,309' 2,436 -2,177 26,441 8,377 38,593 3 Europe -20,604 43,008' 10,442 8,087' 2,534' 1,958 -5,238 649 7,102 5,971 4 Belgium2 -598 2,046 ^135 513 -193 3,371 -1,379 -2,722 218 77 5 6 L G u e x rm em an b y o urg2 -1,6 4 6 62 8 - -1 3 , , 6 9 0 1 9 0 2,9 5 1 4 0 9 1 -1 ,6 3 5 9 8 1 - , 2 6 0 1 1 0 -1,18 7 3 5 -2 3 5 5 7 8 -27 8 0 3 1,1 3 7 3 6 3,4440 7 Netherlands -6,728 -17,020 4,926 1,427 3,261 -1,085 1,360 959 4,425 2,267 8 Sweden -1,190 2,923 1,376 1,652 902 422 190 522 -240 482 9 Switzerland 1,412 -508 -104 2,389 -2,543 -86 -1,050 1,067 -784 749 10 United Kingdom -7,279 60,995 964 -45 -2,739 1,313 -2,912 3,256 -6 -687 11 Channel Islands and Isle of Man3 -179 714 716 -299 -84 -11 9 37 140 541 12 Other Europe and former U.S.S.R -1,836 -623' -460 931' 2,521' 2,142 -1,557 -2,283 2,140 -902 13 Canada -1,634 -5,198 -1,284 3,165 1,028 -1,871 1,782 820 -1,317 14 Latin America and Caribbean 4,272 21,116 15,453 -1,758 6,074 -1,891 3,384 11,179 -7,150 9,931 15 Venezuela 290 -59 190 -1 -73 20 97 23 13 37 16 Other Latin America and Caribbean 14,726 21,955 14,159 319 1,652 2,676 2,323 8,550 -5,850 6,460 17 Netherlands Antilles -10,744 -780 1,104 -2,076 4,495 -4,587 964 2,606 -1,313 3,434 18 Asia 36,332 55,850 48,529 10,607 3,626 2,630 2,287 12,246 7,389 23,977 19 Japan 16,114 30,730 37,397 2,120 2,731 3,512 5,580 -1,221 5,557 23,969 20 Africa -880 841 93 -17 90 84 -43 -16 127 -59 21 Other 1,714 2,909 437 333 -43 353 -696 601 90 22 Nonmonetary international and regional organizations 2,011 352 -80 329 383 -244 -51 -52 316 2 2 4 3 L In a t t e in rn A at m io e n r a i l c an Caribbean regional -29 4 0 1 1,6 - 4 3 2 -1 3 2 9 4 7 - 3 1 1 9 4 1604 - 1 1 7 5 0 -1 -3 3 8 0 -1 -2 0 8 9 -3 8 7 5 3 - 8 6 1 MEMO 25 Foreign countries 19,200 118,526' 73,670 20,417' 13,309' 2,436 -2,177 26,441 8,377 38,593 26 Official institutions 3,474 9,809' 19,322 15,817' 5,523' 312 4,823 1,322 -810 13,675 27 Other foreign 15,726 108,717' 54,348 4,600 7,786' 2,124 -7,000 25,119 9,187 24,918 Oil-exporting countries 2 2 9 8 A M f i r d i d c l a e 5 East4 -3,91 2 8 9 -7,369 0 -1391 -3,81 5 5 5 5090 -4,2520 12 0 8 -2,60 0 6 -1,148 0 1. Official and private transactions in marketable U.S. Treasury securities having an 3. Before January 2001, these data were included in the data reported for the United original maturity of more than one year. Data are based on monthly transactions reports. Kingdom. Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab countries. Emirates (Trucial States). 2. Before January 2001, combined data reported for Belgium and Luxembourg. 5. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • September 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 2003 Feb. Mar. Apr. May June July Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 58.15 51.69 54.37 59.56 60.15 61.00 64.68 66.52 66.07 2 Brazil/real 1.8301 2.3527 2.9213 3.5955 3.4567 3.1090 2.9517 2.8887 2.8833 3 Canada/dollar 1.4855 1.5487 1.5704 1.5121 1.4761 1.4582 1.3840 1.3525 1.3821 4 China, P.R./yuan 8.2784 8.2770 8.2770 8.2780 8.2773 8.2772 8.2769 8.2771 8.2773 5 Denmark/krone 8.0953 8.3323 7.8862 6.8920 6.8807 6.8381 6.4268 6.3620 6.5425 6 European Monetary Union/euro3 0.9232 0.8952 0.9454 1.0785 1.0797 1.0862 1.1556 1.1674 1.1365 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 7.7995 7.7991 7.7996 7.7991 7.7988 7.7990 9 India/rupee 45.00 47.22 48.63 47.75 47.68 47.39 47.11 46.70 46.22 10 Japan/yen 107.80 121.57 125.22 119.34 118.69 119.90 117.37 118.33 118.70 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 10.945 10.905 10.589 10.253 10.503 10.458 13 New Zealand/dollar2 45.68 42.02 46.45 55.39 55.37 55.18 57.56 58.15 58.64 14 Norway/krone 8.8131 8.9964 7.9839 7.0004 7.2760 7.2032 6.8145 7.0093 7.2924 15 Singapore/dollar 1.7250 1.7930 1.7908 1.7451 1.7551 1.7771 1.7357 1.7351 1.7551 16 South Africa/rand 6.9468 8.6093 10.5176 8.2858 8.0506 7.6634 7.6604 7.8588 7.5458 17 South Korea/won 1,130.90 1,292.01 1,250.31 1,190.37 1,237.20 1,231.10 1,201.23 1,194.14 1,181.16 18 Sri Lanka/rupee 76.964 89.602 95.773 96.880 96.943 97.004 97.231 97.236 97.153 19 Sweden/krona 9.1735 10.3425 9.7233 8.4837 8.5440 8.4314 7.9213 7.8116 8.0929 20 Switzerland/franc 1.6904 1.6891 1.5567 1.3602 1.3614 1.3783 1.3111 1.3196 1.3611 21 Taiwan/dollar 31.260 33.824 34.536 34.734 34.721 34.824 34.697 34.633 34.396 21 Thailand/baht 40.210 44.532 43.019 42.897 42.783 42.929 42.217 41.675 41.808 23 United Kingdom/pound2 151.56 143.96 150.25 160.79 158.25 157.39 162.24 166.09 162.21 24 Venezuela/bolivar 680.52 724.10 1,161.19 1,736.21 1,600.00 1,600.00 1,600.00 1,600.00 1,600.00 Indexes4 NOMINAL 25 Broad (January 1997-100)5 119.68 126.08 127.19 124.12 123.56 122.54 118.54 117.93 119.11 26 Major currencies (March 1973=100)6 98.31 104.28 102.85 95.02 94.28 93.98 89.67 88.68 90.42 27 Other important trading partners (January 1997-100)7 130.34 136.36 141.42 147.35 147.26 145.15 142.75 143.07 142.84 REAL 28 Broad (March 1973-100)5 104.47' 110.50r 110.88' 107.91r 107.71' 106.62' 103.12' 102.80' 104.01 29 Major currencies (March 1973=100)6 103.29 110.73 109.36r 101.47' 100.84' 100.35' 95.53' 94.57' 96.65 30 Other important trading partners (March 1973-100)7 114.81r 119.47r 122.29' 125.96r 126.42' 124.31' 122.56' 123.22' 123.16 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 June 30, 2002 November 2002 A58 September 30, 2002 February 2003 A58 December 31, 2002 May 2003 A5 8 March 31,2003 August 2003 A58 Terms of lending at commercial banks August 2002 November 2002 A60 November 2002 February 2003 A60 February 2003 May 2003 A60 May 2003 August 2003 A60 Assets and liabilities of U.S. branches and agencies of foreign banks June 30, 2002 November 2002 A66 September 30, 2002 February 2003 A66 December 31, 2002 May 2003 A66 March 31,2003 August 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 1989-2001 September 2002 A58 1990-2002 September 2003 A58 Disposition of applications for private mortgage insurance 1998-2001 September 2002 A67 1999-2002 September 2003 A67 Small loans to businesses and farms 1996-2001 September 2002 A70 1996-2002 September 2003 A70 Community development lending reported under the Community Reinvestment Act 2001 September 2002 A73 2002 September 2003 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

A58 Special Tables • September 2003 4.34 RESIDENTIAL LENDING ACTIVITY OF FINANCIAL INSTITUTIONS COVERED BY HMDA, 1990-2002 Number Item 19901 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1 Loans or applications (millions)2 6.59 7.89 12.01 15.38 12.19 11.23 14.81 16.41 24.66 22.90 19.24 27.58 31.24 2 Reporting institutions 9,332 9,358 9,073 9,650 9,858 9,539 9,328 7,925 7,836 7,832 7,713 7,631 7,771 3 Disclosure reports 24,041 25,934 28,782 35,976 38,750 36,611 42,946 47,416 57,294 56,966 52,776 53,066 56,506 1. Before 1990, includes only home purchase, home refinancing, and home-improvement 2. Revised from preliminary data published in Glenn B. Canner and Dolores S. Smith, loans originated by covered institutions; beginning in 1990 (first year under revised reporting "Home Mortgage Disclosure Act; Expanded Data on Residential Lending," Federal Reserve system), includes such loans originated and purchased, applications approved but not ac- Bulletin, vol. 77 (November 1991), p. 861, to reflect corrections and the reporting of cepted by the applicant, applications denied or withdrawn, and applications closed because additional data. information was incomplete. SOURCE. FFIEC, Home Mortgage Disclosure Act. 4.35 APPLICATIONS FOR HOME LOANS REPORTED UNDER HMDA, 2002 By Type of Dwelling, Purpose of Loan, and Loan Program Thousands One- to four-family dwellings LLooaann pprrooggrraamm MM ddww uull ee ttii ll ff llii aa nn mm gg ii ss ll '' yy AAllll Home purchase Home refinancing Home improvement All 1 FHA 924.3 545.2 11.7 1,481.2 * 1,481.5 2 VA 187.7 202.3 * 390.3 * 390.3 3 FSA/RHS 25.4 2.8 * 28.3 * 28.3 4 Conventional 6,262.3 16,692.5 1,532.7 24,487.5 53.0 24,540.5 5 Total 7,399.8 17,442.8 1,544.9 26,387.4 53.2 26,440.7 *Fewer than 500. SOURCE. FFIEC, Home Mortgage Disclosure Act. 1. Multifamily dwellings are those for five or more families. 4.36 HOME LOANS ORIGINATED BY LENDERS REPORTED UNDER HMDA, 2002 By Type of Dwelling, Purpose of Loan, and Type of Lender Percent One- to four-family dwellings TTTyyypppeee ooofff llleeennndddeeerrr Home purchase HHoommee HHoommee MMM dddwww uuulll eee ttt lll iii lll fff iii aaa nnn mmm gggsss iiilll yyy AAAllllll FHA-insured VA- FSA/RHS Conventional All rreeffiinnaanncciinngg iimmpprroovveemmeenntt AAllll guaranteed 1 Commercial bank 8.8 11.7 15.2 22.7 20.4 23.9 62.6 24.5 52.7 24.6 2 Savings association . . . 6.3 7.6 8.0 13.7 12.5 15.6 6.9 14.2 36.6 14.3 3 Credit union .2 1.1 .5 2.2 1.8 3.6 17.2 3.7 .6 3.7 4 Mortgage company2 . . . 84.8 79.6 76.2 61.4 65.3 56.9 13.3 57.6 10.1 57.5 5 Total 100 100 100 100 100 100 100 100 100 100 MEMO Distribution of loans 6 Number 702,382 150,189 18,935 4,224,360 5,095,866 10,256,766 717,845 16,070,477 41,465 16,111,942 7 Percent 4.4 .9 .1 26.2 31.6 63.7 4.5 99.7 .3 100.0 *Less than .05 percent. 2. Comprises all covered mortgage companies, including those affiliated with a commer- 1. Multifamily dwellings are those for five or more families. cial bank, savings association, or credit union. SOURCE. FFIEC, Home Mortgage Disclosure Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Mortgage Disclosure A59 4.37 APPLICATIONS FOR LOANS FOR ONE- TO FOUR-FAMILY HOMES REPORTED UNDER HMDA, 2002 By Purpose of Loan and Characteristics of Applicant and Census Tract Home purchase HHoommee rreeffiinnaanncciinngg HHoommee iimmpprroovveemmeenntt Government-backed1 Conventional CCChhhaaarrraaacccttteeerrriiissstttiiiccc MEMO MEMO Percentage of Percentage of Number Percent characteristic's Number Percent characteristic's Number Percent Number Percent home purchase home purchase loans loans APPLICANT Racial/ethnic identity 1 American Indian or Alaskan Native .... 6,118 .6 19.3 25,598 .5 80.7 52,672 .4 5,568 .6 2 Asian or Pacific Islander 16,914 1.6 5.8 272,980 5.2 94.2 527,723 4.4 16,250 1.8 3 Black 140,762 13.6 27.5 371,386 7.1 72.5 767,187 6.4 89,342 9.6 4 Hispanic 187,793 18.2 26.8 512,786 9.7 73.2 888,858 7.4 98,042 10.6 5 White 639,653 61.9 14.2 3,862,930 73.4 85.8 9,196,608 77.1 688,476 74.4 6 Other 13,706 1.3 13.7 86,635 1.6 86.3 217,098 1.8 9,802 1.1 7 All 29,153 2.8 18.5 128,234 2.4 81.5 282,694 2.4 18,488 2.0 8 Total 1,034,099 100.0 16.4 5,260,549 100.0 83.6 11,932,840 100.0 925,968 100.0 Income (percentage of MSA median)2 9 Less than 50 140,813 14.5 24.1 443,366 8.8 75.9 1,311,558 9.5 117799,,555522 1144..44 10 50-79 351,357 36.2 26.0 1,001,035 19.9 74.0 2,809,222 20.4 290,912 23.4 11 80-99 185,485 19.1 21.5 677,352 13.5 78.5 1,957,266 14.2 181,057 14.5 12 100-119 121,778 12.5 16.6 610,229 12.1 83.4 1,728,282 12.6 150,897 12.1 13 120 or more 172,437 17.7 7.0 2,297,993 45.7 93.0 5,959,057 43.3 443,088 35.6 14 Total 971,870 100.0 16.2 5,029,975 100.0 83.8 13,765,385 100.0 1,245,506 100.0 CENSUS TRACT Racial/ethnic composition (minorities as percentage of population) 15 Less than 10 382,126 39.4 13.8 2,393,286 46.0 86.2 7,240,763 48.8 661100,,772222 4499..44 16 10-19 220,003 22.7 16.0 1,158,540 22.3 84.0 3,114,530 21.0 234,088 18.9 17 20-49 237,132 24.5 18.1 1,071,298 20.6 81.9 2,806,832 18.9 219,918 17.8 18 50-79 74,183 7.7 17.8 343,333 6.6 82.2 960,785 6.5 83,612 6.8 19 80-100 55,534 5.7 18.8 239,910 4.6 81.2 725,114 4.9 88,827 7.2 20 Total 968,978 100.0 15.7 5,206,367 100.0 84.3 14,848,024 100.0 1,237,167 100.0 Income3 21 Low 20,442 2.1 14.9 117,187 2.2 85.1 276,278 1.9 36,450 2.9 22 Moderate 160,687 16.4 20.0 643,881 12.3 80.0 1,740,265 11.7 195,264 15.4 23 Middle 576,342 58.7 18.1 2,603,910 49.8 81.9 7,567,123 50.8 685,205 54.1 24 Upper 223,876 22.8 10.7 1,864,153 35.6 89.3 5,321,540 35.7 350,570 27.7 25 Total 981,347 100.0 15.8 5,229,131 100.0 84.2 14,905,206 100.0 1,267,489 100.0 Location4 26 Central city 453,600 45.5 17.6 2,117,305 40.0 82.4 5,624,175 37.3 498,344 38.6 27 Non-central city 542,493 54.5 14.6 3,180,330 60.0 85.4 9,452,275 62.7 791,889 61.4 25 Total 996,093 100.0 15.8 5,297,635 100.0 84.2 15,076,450 100.0 1,290,233 100.0 NOTE. Lenders reported 26,440,691 applications for home loans in 2002. Not all character- median family income for the MSA in which the tract is located. Categories are defined as istics were reported for all applications; thus, the number of applications being distributed by follows: Low income, median family income for census tract less than 50 percent of median characteristic varies by characteristic. family income for MSA; Moderate income, median family income for census tract at least 50 1. Loans backed by the Federal Housing Administration, the Department of Veterans and less than 80 percent of MSA median; Middle income, median family income at least 80 Affairs, or the Farmers Home Administration. percent and less than 120 percent of MSA median; Upper income, median family income 120 2. Median family income of the metropolitan statistical area (MSA) in which the property percent and greater of MSA median. related to the loan is located. 4. For census tracts located in MSAs. 3. Census tracts are categorized by the median family income for the tract relative to the SOURCE. FFIEC, Home Mortgage Disclosure Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 Special Tables • September 2003 4.38 APPLICATIONS FOR LOANS FOR ONE- TO FOUR-FAMILY HOMES REPORTED UNDER HMDA, 2002 By Purpose of Loan with Denial Rate, and by Characteristic of Applicant Home purchase HHoommee rreeffiinnaanncciinngg HHoommee iimmpprroovveemmeenntt ccchhh AAA aaarrr ppp aaa ppp ccc lll ttt iii eee ccc rrr aaa iiisss nnn ttt ttt iii ccc111 Government-backed2 Conventional Distribution Denial rate Distribution Denial rate Distribution Denial rate Distribution Denial rate American Indian or Alaskan Native 1 One male 38.2 9.2 36.3 23.5 30.3 17.6 35.8 41.3 2 Two males 1.9 5.3 2.4 17.6 2.2 11.1 1.3 36.6 3 One female 29.0 10.6 29.6 25.6 27.4 19.9 31.3 43.7 4 Two females 1.4 7.2 2.0 30.2 3.1 24.4 1.4 45.3 5 One male and one female 29.6 10.2 29.8 20.8 36.9 13.7 30.3 30.0 6 Total3 100.0 9.8 100.0 23.3 100.0 16.7 100.0 38.7 Asian or Pacific Islander 7 One male 28.7 8.2 29.8 10.9 20.3 12.2 29.5 41.2 8 Two males 3.1 9.3 1.7 13.0 1.3 13.0 1.5 40.7 9 One female 19.9 8.4 21.5 11.5 16.0 12.9 21.0 41.3 10 Two females 2.4 13.2 1.3 11.2 1.1 11.9 1.3 36.9 11 One male and one female 45.8 8.2 45.7 8.0 61.3 7.9 46.7 25.6 12 Total3 100.0 8.4 100.0 9.8 100.0 9.7 100.0 33.9 Black 13 One male 30.2 13.5 33.7 26.7 28.4 24.6 31.2 50.3 14 Two males .9 15.1 .7 32.7 .6 29.5 .5 49.8 15 One female 41.0 13.0 39.0 27.4 35.3 24.3 40.9 51.8 16 Two females 2.1 14.0 1.7 34.5 1.5 24.6 1.2 53.6 17 One male and one female 25.8 12.4 24.9 23.3 34.3 20.7 26.1 43.8 18 Total3 100.0 13.0 100.0 26.3 100.0 23.2 100.0 49.2 Hispanic 19 One male 31.8 11.5 37.4 19.6 27.6 20.3 37.3 52.5 20 Two males 6.6 10.2 2.3 23.3 1.9 19.3 1.2 49.4 21 One female 15.9 11.7 22.0 18.7 18.1 19.5 25.3 52.0 22 Two females 2.2 11.6 1.4 22.5 1.3 19.2 .9 51.4 23 One male and one female 43.5 10.7 36.9 15.9 51.1 16.7 35.4 40.1 24 Total3 100.0 11.1 100.0 18.2 100.0 18.3 100.0 48.0 White 25 One male 31.3 8.4 28.1 14.3 22.2 12.9 25.3 29.9 26 Two males 1.5 7.1 1.2 12.2 .8 10.6 .8 28.5 27 One female 20.5 7.7 19.8 14.1 16.3 11.9 19.7 29.5 28 Two females 1.3 7.7 1.0 15.8 .8 11.4 .8 28.7 29 One male and one female 45.4 6.6 49.9 8.9 59.9 7.9 53.4 19.0 30 Total3 100.0 7.4 100.0 11.6 100.0 9.7 100.0 24.0 All 31 One male 31.2 9.7 29.6 15.9 23.0 14.6 27.3 35.9 32 Two males 2.4 9.1 1.3 15.1 .9 12.9 .8 33.6 33 One female 22.6 9.6 21.6 16.2 17.7 14.2 22.5 36.6 34 Two females 1.6 10.1 1.1 18.6 .9 13.9 .9 35.1 35 One male and one female 42.2 7.9 46.4 10.0 57.5 9.0 48.5 22.1 36 Total3 100.0 8.9 100.0 13.3 100.0 11.3 100.0 29.4 1. Applicants are categorized by race of first applicant listed on Loan Application Register, 3. Includes all applicants from racial or ethnic group regardless of whether gender was except for joint white and minority applications, which are not shown in this table. reported. 2. Loans backed by the Federal Housing Administration, the Department of Veterans SOURCE. FFIEC, Home Mortgage Disclosure Act. Affairs, or the Farmers Home Administration. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Mortgage Disclosure A61 4.39 APPLICATIONS FOR HOME LOANS REPORTED UNDER HMDA, 2002 By Loan Program and Size of Dwelling Percent One- to four-family dwellings Home purchase Home refinancing Approved Approved Approved Approved and but not and but not accepted accepted accepted accepted 7 8 6 0 . . 0 0 4 3 . . 1 8 9 7. . 1 4 8 7. . 8 4 2 1. . 3 1 1 1 0 0 0 0 6 7 9 8 . . 6 3 7 5 . . 3 1 76..51 1 7 0 . . 8 6 4 2 . . 9 7 1 10 00 0 74.5 5.9 12.4 5.6 1.6 100 64.6 19.3 8.2 6.3 1.5 100 67.5 8.5 14.3 7.4 2.3 100 58.2 8.6 17.7 11.9 3.6 100 68.9 7.8 13.5 7.6 2.3 100 58.8 8.5 17.3 11.8 3.6 100 One- to four-family dwellings Multifamily dwellings1 Home improvement Approved Approved Approved Approved and but not and but not accepted accepted accepted accepted 40.7 9.5 33.4 16.2 .3 100 100 59.3 9.8 19.6 10.4 .9 100 100 72.7 6.8 12.9 4.5 3.0 100 100 46.5 10.7 34.5 7.3 1.0 100 77.9 3.9 10.3 6.3 1.7 100 46.5 10.7 34.5 7.4 1.0 100 77.9 3.9 10.3 6.3 1.7 100 NOTE. Loans approved and accepted were approved by the lender and accepted by the *Less than .05 percent. applicant. Loans approved but not accepted were approved by the lender but not accepted by 1. Multifamily dwellings are those for five or more families. the applicant. Applications denied were denied by the lender, and applications withdrawn SOURCE. FFIEC, Home Mortgage Disclosure Act. were withdrawn by the applicant. When an application was left incomplete by the applicant, the lender reported file closed and took no further action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 Special Tables • September 2003 4.40 APPLICATIONS FOR ONE- TO FOUR-FAMILY HOME LOANS REPORTED UNDER HMDA, 2002 By Disposition of Loan and Characteristics of Applicant and Census Tract A. Home Purchase Loans Percent Government-backed1 Conventional CChhaarraacctteerriissttiicc Approved Denied Withdrawn File closed Total Approved Denied Withdrawn File closed Total APPLICANT Racial or ethnic identity 1 American Indian or Alaskan Native 77.7 9.8 9.2 3.4 100 66.2 23.3 7.5 22..99 100 2 Asian or Pacific Islander 81.4 8.4 8.3 1.9 100 80.1 9.8 7.7 2.4 100 3 Black 76.2 13.0 8.6 2.2 100 61.9 26.3 8.4 3.5 100 4 Hispanic 76.6 11.1 9.6 2.8 100 70.5 18.2 8.1 3.3 100 5 White 84.7 7.4 6.4 1.5 100 80.7 11.6 6.1 1.7 100 6 Other 76.7 9.4 11.0 2.9 100 76.3 11.8 8.6 3.3 100 7 Joint2 83.1 7.8 7.5 1.6 100 78.8 11.4 7.8 2.0 100 Income ratio (percentage of MSA median)3 8 Less than 50 76.8 12.9 8.1 2.2 100 61.7 28.8 6.7 2.7 100 9 American Indian or Alaskan Native . . . 77.4 11.9 8.2 2.5 100 54.5 35.5 6.7 3.3 100 10 Asian or Pacific Islander 77.4 12.0 8.4 2.2 100 73.8 16.2 7.5 2.6 100 11 Black 73.3 15.8 8.5 2.5 100 53.3 35.4 7.5 3.8 100 12 Hispanic 75.4 13.6 8.7 2.3 100 60.6 29.0 7.0 3.4 100 13 White 80.9 10.6 6.6 1.9 100 68.9 23.9 5.2 2.0 100 14 Other 72.7 15.1 9.1 3.1 100 66.5 20.9 7.6 5.0 100 15 Joint2 69.0 17.2 10.0 3.8 100 53.4 31.9 12.0 2.6 100 16 50-79 82.5 8.5 7.2 1.8 100 74.2 16.5 6.7 2.6 100 17 American Indian or Alaskan Native .. . 81.7 8.7 6.7 2.9 100 68.2 21.7 6.9 3.2 100 18 Asian or Pacific Islander 83.4 7.6 7.4 1.5 100 81.0 10.2 6.4 2.4 100 19 Black 78.1 12.0 7.9 2.1 100 62.9 25.1 7.9 4.2 100 20 Hispanic 79.3 10.1 8.3 2.3 100 69.2 20.2 7.2 3.4 100 21 White 86.2 6.7 5.6 1.5 100 79.9 12.9 5.3 1.8 100 22 Other 77.8 9.3 10.4 2.5 100 76.3 12.9 7.2 3.5 100 23 Joint2 82.1 8.6 7.4 1.9 100 70.2 19.0 8.3 2.6 100 24 80-119 84.1 7.1 7.2 1.6 100 79.4 11.3 6.9 2.4 100 25 American Indian or Alaskan Native .. . 81.1 9.0 7.6 2.3 100 72.9 15.7 8.4 2.9 100 26 Asian or Pacific Islander 83.6 7.0 7.6 1.9 100 82.1 8.8 6.8 2.3 100 27 Black 79.8 10.7 7.8 1.8 100 67.4 20.3 8.5 3.9 100 28 Hispanic 79.4 9.5 8.8 2.3 100 73.0 16.2 7.7 3.2 100 29 White 87.8 5.5 5.5 1.3 100 84.0 8.7 5.6 1.7 100 30 Other 62.7 5.9 9.5 1.8 100 28.2 3.7 3.0 1.1 100 31 Joint2 85.0 7.0 6.6 1.4 100 79.6 11.0 7.3 2.1 100 32 120 or more 83.5 6.5 8.0 1.9 100 82.6 8.0 7.2 2.1 100 33 American Indian or Alaskan Native . . . 80.2 7.3 8.8 3.7 100 78.4 10.7 8.0 2.9 100 34 Asian or Pacific Islander 82.8 7.2 8.6 1.4 100 81.1 8.7 7.7 2.5 100 35 Black 80.0 9.5 8.6 1.9 100 70.6 17.0 9.2 3.2 100 36 Hispanic 74.7 10.2 10.7 4.4 100 75.4 12.9 8.2 3.6 100 37 White 88.3 4.8 5.7 1.2 100 86.1 6.3 6.0 1.6 100 38 Other 82.1 5.5 10.3 2.1 100 79.1 9.6 8.5 2.8 100 39 Joint2 86.2 5.1 7.5 1.2 100 83.7 6.9 7.5 1.8 100 CENSUS TRACT Racial or ethnic composition (minorities as percentage of population) 40 Less than 10 84.6 7.5 6.4 1.5 100 81.3 10.4 6.5 1.9 100 41 10-19 83.0 7.9 7.4 1.7 100 78.9 11.3 7.5 2.3 100 42 20-49 80.6 8.7 8.9 1.8 100 75.2 13.9 8.2 2.7 100 43 50-79 76.8 11.2 9.7 2.3 100 70.4 17.6 8.8 3.2 100 44 80-100 72.5 13.0 11.6 2.9 100 63.4 22.7 10.0 3.9 100 Income4 45 Low 71.0 14.0 11.7 3.3 100 63.4 23.4 9.4 3.8 100 46 Moderate 78.4 10.5 8.8 2.3 100 69.8 19.1 8.1 3.0 100 47 Middle 82.6 8.2 7.4 1.8 100 77.4 13.1 7.2 2.3 100 48 Upper 82.9 7.4 7.9 1.8 100 82.4 8.2 7.3 2.1 100 Location5 49 Central city 80.7 8.9 8.4 2.0 100 76.1 13.6 7.7 2.6 100 50 Non-central city 82.6 267.0 195.6 62.4 100 79.1 11.6 7.1 2.2 100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Mortgage Disclosure A63 4.40 APPLICATIONS FOR ONE- TO FOUR-FAMILY HOME LOANS REPORTED UNDER HMDA, 2002 By Disposition of Loan and Characteristics of Applicant and Census Tract—Continued B. Home Refinancing and Home-Improvement Loans Percent Home refinancing Home improvement Characteristic Approved Denied Withdrawn File closed Total Approved Denied Withdrawn File closed Total APPLICANT Racial or ethnic identity 1 American Indian or Alaskan Native 66.2 16.7 11.9 5.2 100 57.2 38.7 3.4 .7 100 2 Asian or Pacific Islander 80.0 9.7 7.3 3.0 100 60.6 33.9 4.2 1.3 100 3 Black 59.9 23.2 10.9 5.9 100 48.1 49.2 2.3 .4 100 4 Hispanic 65.5 18.3 10.6 5.7 100 48.5 48.0 2.9 .6 100 5 White 79.9 9.7 7.2 3.1 100 72.7 24.0 2.7 .6 100 6 Other 68.7 15.2 8.9 7.2 100 56.2 38.8 3.9 1.1 100 7 Joint2 76.9 11.0 8.8 3.3 100 69.3 27.2 2.9 .6 100 Income ratio (percentage of MSA median)3 8 Less than 50 49.1 30.7 15.3 5.0 100 41.8 51.6 5.9 .7 100 9 American Indian or Alaskan Native . . . 50.2 27.8 16.4 5.6 100 42.3 53.4 4.1 .1 100 10 Asian or Pacific Islander 63.5 20.2 11.6 4.7 100 37.3 58.5 3.7 .5 100 11 Black 47.1 31.8 13.5 7.6 100 38.8 58.9 1.9 .4 100 12 Hispanic 52.9 27.5 13.5 6.0 100 34.4 63.0 2.3 .4 100 13 White 66.2 17.7 10.7 5.4 100 59.4 37.6 2.6 .4 100 14 Other 48.5 31.3 10.2 10.0 100 33.0 62.9 3.3 .8 100 15 Joint2 51.2 23.8 18.2 6.8 100 45.7 49.1 4.6 .6 100 16 50-79 61.1 21.2 13.4 4.2 100 50.1 41.5 7.7 .8 100 17 American Indian or Alaskan Native . . . 63.1 19.1 12.5 5.3 100 57.5 39.4 2.5 .6 100 18 Asian or Pacific Islander 75.8 12.5 8.2 3.6 100 52.7 42.0 4.2 1.2 100 19 Black 56.0 25.6 11.8 6.5 100 45.3 52.1 2.2 .4 100 20 Hispanic 63.2 20.5 11.0 5.2 100 41.7 55.1 2.7 .5 100 21 White 75.8 11.8 8.3 4.0 100 67.5 29.3 2.6 .6 100 22 Other 63.7 18.5 8.6 9.2 100 47.2 48.0 3.6 1.3 100 23 Joint2 67.1 15.7 12.4 4.8 100 58.9 38.3 2.5 .4 100 24 80-119 67.7 16.6 12.0 3.7 100 58.2 32.6 8.2 .9 100 25 American Indian or Alaskan Native .. . 68.5 15.4 11.2 5.0 100 60.9 35.4 3.1 .6 100 26 Asian or Pacific Islander 80.2 9.6 7.2 3.0 100 62.0 33.1 3.8 1.1 100 27 Black 60.2 22.9 11.0 5.9 100 51.6 45.5 2.5 .5 100 28 Hispanic 66.1 18.4 10.5 5.1 100 51.1 45.2 3.1 .6 100 29 White 80.1 9.4 7.2 3.3 100 73.8 22.9 2.7 .7 100 30 Other 9.1 1.8 1.0 .9 100 2.5 1.5 .2 .0 100 31 Joint2 74.4 12.2 9.7 3.7 100 68.9 28.0 2.4 .6 100 32 120 or more 75.4 11.9 9.6 3.2 100 66.3 25.2 7.4 1.2 100 33 American Indian or Alaskan Native . . . 72.9 13.0 9.6 4.5 100 66.0 28.8 4.1 1.2 100 34 Asian or Pacific Islander 82.8 8.1 6.3 2.8 100 70.1 24.0 4.2 1.7 100 35 Black 64.8 19.9 10.0 5.4 100 57.7 39.1 2.7 .5 100 36 Hispanic 68.0 15.7 9.5 6.7 100 60.1 35.9 3.2 .7 100 37 White 83.9 7.3 6.2 2.6 100 78.8 17.6 2.7 .8 100 38 Other 76.3 11.1 7.0 5.6 100 68.1 27.1 3.9 .9 100 39 Joint2 80.8 8.9 7.5 2.8 100 73.8 22.7 3.0 .6 100 CENSUS TRACT Racial or ethnic composition (minorities as percentage of population j 40 Less than 10 72.2 14.2 10.3 3.2 100 64.1 27.8 7.0 1.1 100 41 10-19 70.1 15.1 11.3 3.5 100 57.3 33.6 8.0 1.1 100 42 20-49 65.0 18.2 12.8 4.0 100 50.2 40.1 8.8 .9 100 43 50-79 58.6 22.2 14.5 4.7 100 43.7 46.6 8.9 .9 100 44 80-100 49.0 29.4 16.2 5.4 100 38.2 52.6 8.3 .9 100 Income4 45 Low 48.9 30.6 15.4 5.2 100 38.1 54.5 6.5 .9 100 46 Moderate 56.5 24.5 14.5 4.5 100 46.4 45.4 7.3 .8 100 47 Middle 66.8 17.4 12.1 3.8 100 57.0 34.3 7.7 1.0 100 48 Upper 75.5 11.6 9.6 3.2 100 63.5 27.7 7.6 1.2 100 Location5 49 Central city 65.8 18.3 12.1 3.9 100 52.8 39.0 7.3 .9 100 50 Non-central city 69.9 15.3 11.2 3.6 100 59.0 32.3 7.7 1.0 100 NOTE. Applicant income ratio is applicant income as a percentage of MSA median. MSA median family income for the MSA in which the tract is located. Categories are defined as median is median family income of the metropolitan statistical area (MSA) in which the follows: Low income, median family income for census tract less than 50 percent of median property related to the loan is located. family income for MSA; Moderate income, median family income for census tract at least 50 1. Loans backed by the Federal Housing Administration, the Department of Veterans percent and less than 80 percent of MSA median; Middle income, median famly income at Affairs, or the Farmers Home Administration. least 80 percent and less than 120 percent of MSA median; Upper income, median family 2. White and minority. income 120 percent and greater of MSA median. 3. MSA median is median family income of the metropolitan statistical area (MSA) in 5. For census tracts located in MSAs. which the property related to the loan is located. SOURCE. FF1EC, Home Mortgage Disclosure Act. 4. Census tracts are categorized by the median family income for the tract related to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Special Tables • September 2003 4.41 HOME LOANS SOLD, 2002 By Purchaser and Characteristics of Borrower and Census Tract Fannie Mae Ginnie Mae Freddie Mac FAMC Commercial bank CChhaarraacctteerriissttiicc Number Percent Number Percent Number Percent Number Percent Number Percent 1 All 4,476,987 100.0 1,158,156 100.0 2,990,374 100.0 2,707 100.0 383,365 100.0 BORROWER Racial or ethnic identity 2 American Indian or Alaskan Native 12,926 .4 3,943 .5 55,,990077 .2 11 .4 674 .2 3 Asian or Pacific Islander 172,198 5.1 14,024 1.7 109,843 4.5 61 2.4 14,118 4.8 4 Black 125,271 3.7 113,778 13.5 68,155 2.8 273 10.6 18,239 6.2 Hispanic 212,575 6.3 130,664 15.5 114,331 4.7 198 7.7 23,343 7.9 6 White 2,752,363 81.0 544,833 64.5 2,009,477 82.5 1,951 75.7 229,018 77.5 7 Other 44,676 1.3 11,700 1.4 74,702 3.1 30 1.2 2,856 1.0 8 Joint 79,589 2.3 25,646 3.0 54,256 2.2 54 2.1 7,212 2.4 9 Total 3,399,598 100.0 844,588 100.0 2,436,671 100.0 2,578 100.0 295,460 100.0 Income ratio (percentage of MSA median) 10 Less than 50 217,396 6.4 77,909 12.7 134,875 5.9 177 10.6 19,243 6.4 11 50-79 664,660 19.5 216,118 35.2 414,769 18.2 460 27.5 56,750 18.9 12 80-99 516,142 15.1 121,863 19.8 326,799 14.4 273 16.3 39,971 13.3 13 100-119 474,041 13.9 82,729 13.5 313,698 13.8 190 11.3 36,052 12.0 14 120 or more 1,544,906 45.2 115,539 18.8 1,085,100 47.7 575 34.3 148,866 49.5 15 Total 3,417,145 100.0 614,158 100.0 2,275,241 100.0 1,675 100.0 300,882 100.0 CENSUS TRACT Racial or ethnic composition (minorities as percentage of population) 16 Less than 10 2,066,963 52.2 412,648 39.5 1,490,763 57.8 1,035 50.0 166,390 48.2 17 10-19 870,787 22.0 248,320 23.8 532,904 20.6 353 17.1 83,500 24.2 18 20-49 711,777 18.0 255,734 24.5 408,981 15.8 384 18.6 66,017 19.1 19 50-79 205,077 5.2 75,113 7.2 100,797 3.9 138 6.7 17,945 5.2 20 80-100 108,193 2.7 52,252 5.0 47,244 1.8 159 7.7 11,143 3.2 21 Total 3,962,797 100.0 1,044,067 100.0 2,580,689 100.0 2,069 100.0 344,995 100.0 Income 22 Low 43,715 1.1 15,613 1.5 21,833 .8 59 2.9 4,894 1.4 23 Moderate 350,845 8.8 150,685 14.4 195,615 7.6 235 11.4 34,839 10.1 24 Middle 2,008,338 50.6 628,434 59.9 1,297,900 50.2 1,274 61.5 159,493 46.0 25 Upper 1,565,943 39.5 254,134 24.2 1,069,654 41.4 502 24.3 147,421 42.5 26 Total 3,968,841 100.0 1,048,866 100.0 2,585,002 100.0 2,070 100.0 346,647 100.0 Location 27 Central city 1,432,814 36.1 448,196 42.7 888,599 34.4 708 33.9 127,183 36.7 28 Non-central city 2,537,322 63.9 600,977 57.3 1,697,398 65.6 1,381 66.1 219,707 63.3 29 Total 3,970,136 100.0 1,049,173 100.0 2,585,997 100.0 2,089 100.0 346,890 100.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A65 4.41 HOME LOANS SOLD, 2002 By Purchaser and Characteristics of Borrower and Census Tract—Continued Savings bank or savings and loan Life insurance company Affiliate association CChhaarraacctteerriissttiicc Number Percent Number Percent Number Percent 30 All 190,883 100.0 19,596 100.0 1,167,493 100.0 3,776,618 BORROWER Racial or ethnic identity 31 American Indian or Alaskan Native 1,245 .8 34 .2 2,893 .3 13,519 32 Asian or Pacific Islander 7,338 4.6 731 4.2 45,825 5.4 122,267 44 33 Black 10,034 6.3 1,397 8.0 54,253 6.4 202,483 7.2 34 Hispanic 12,822 8.0 994 5.7 78,205 9.3 275,888 9.8 35 White 123,753 77.1 12,167 69.3 632,979 74.9 2,074,765 74.0 36 Other 1,510 .9 195 1.1 10,595 1.3 39,859 1.4 37 Joint 3,788 2.4 2,044 11.6 20,457 2.4 74,697 2.7 38 Total 160,490 100.0 17,562 100.0 845,207 100.0 2,803,478 100.0 Income ratio (percentage of MSA median)' 39 Less than 50 10,872 6.8 642 3.7 59,327 6.6 198,283 7.2 40 50-79 31,578 19.9 1,690 9.7 164,814 18.4 550,105 20.0 41 80-99 22,665 14.3 1,107 6.3 115,560 12.9 391,661 14.2 42 100-119 20,461 12.9 818 4.7 104,828 11.7 348,429 12.7 43 120 or more 73,346 46.2 13,254 75.7 449,770 50.3 1,261,402 45.9 44 Total 158,922 100.0 17,511 100.0 894,299 100.0 2,749,880 100.0 CENSUS TRACT Racial or ethnic composition (minorities as percentage of population) 45 Less than 10 84,915 48.6 9,935 53.5 478,599 45.8 1,485,369 43.7 46 10-19 38,987 22.3 4,297 23.2 247,011 23.7 783,304 23.0 47 20-49 32,860 18.8 3,138 16.9 212,523 20.4 741,971 21.8 48 50-79 10,832 6.2 755 4.1 63,768 6.1 231,202 6.8 49 80-100 7,051 4.0 433 2.3 42,296 4.1 159,965 4.7 50 Total 174,645 100.0 18,558 100.0 1,044,197 100.0 3,401,811 100.0 Income2 51 Low 2,961 1.7 163 .9 17,289 1.6 62,055 1.8 52 Moderate 19,750 11.3 1,558 8.4 108,709 10.3 396,994 11.7 53 Middle 85,659 49.0 9,506 51.3 485,522 46.0 1,685,823 49.6 54 Upper 66,391 38.0 7,319 39.5 444,292 42.1 1,257,307 37.0 55 Total 174,761 100.0 18,546 100.0 1,055,812 100.0 3,402,179 100.0 Location 56 Central city 61,597 35.2 5,407 29.1 403,122 38.2 1,363,515 40.0 57 Non-central city 113,253 64.8 13,154 70.9 653,097 61.8 2,041,041 60.0 58 Total 174,850 100.0 18,561 100.0 1,056,219 100.0 3,404,556 NOTE. Includes securitized loans. See also notes to table 4.40. 2. Census tracts are categorized by the median family income for the tract relative to the Fannie Mae—Federal National Mortgage Association median family income for the MSA in which the tract is located. Categories are defined as Ginnie Mae—Government National Mortgage Association follows: Low income, median family income for census tract less than 50 percent of median Freddie Mac—Federal Home Loan Mortgage Corporation family income for MSA; Moderate income, median family income for census tract at least 50 FAMC—Federal Agricultural Mortgage Corporation percent and less than 80 percent of MSA median; Middle income, median famly income at Affiliate—Affiliate of institution reporting the loan least 80 percent and less than 120 percent of MSA median; Upper income, median family 1. Median family income of the metropolitan statistical area (MSA) in which the property income 120 percent and greater of MSA median. related to the loan is located. SOURCE. FFIEC, Home Mortgage Disclosure Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • September 2003 4.411 LENDER SHARE AND DOLLAR VOLUME OF RESIDENTIAL-MORTGAGE ORIGINATIONS, 1993-20021 Mortgage companies YYeeaarr SSaavviinnggss iinnssttiittuuttiioonnss22 CCoommmmeerrcciiaall bbaannkkss CCrreeddiitt uunniioonnss DDoollllaarr vvoolluummee o S r u s b a s v i i d n i g a s r ie i s n s o ti f t u b t a io n n k s s 3 Independently owned4 ((bbiilllliioonnss ooff ddoollllaarrss)) Conventional one- to four-family 1 1993 23 18 19 37 3 842 2 1994 26 21 19 31 3 539 3 1995 26 21 25 26 2 444 4 1996 26 21 25 26 3 555 5 1997 25 18 26 28 2 630 6 1998 24 16 30 28 2 1,163 7 1999 21 21 29 26 3 960 8 2000 21 23 29 25 2 783 9 2001 19 20 33 26 3 1,630 10 2002 19 17 35 26 3 2,325 FHA, VA, andRHSoneto four-family 11 1993 9 5 26 59 1 151 12 1994 10 6 29 54 1 86 13 1995 10 7 34 49 1 75 14 1996 10 6 33 50 1 95 15 1997 9 6 37 48 1 101 16 1998 7 5 38 49 1 150 17 1999 6 6 41 46 1 133 18 2000 5 8 41 45 1 110 19 2001 6 7 43 44 1 185 20 2002 7 6 40 46 0 180 Total one- to four-family 21 1993 21 16 20 40 3 993 22 1994 24 19 20 34 3 625 23 1995 24 19 26 30 2 519 24 1996 24 19 26 29 2 650 25 1997 23 17 28 30 2 731 26 1998 22 15 31 30 2 1,313 27 1999 19 19 31 29 2 11,,009933 28 2000 19 21 31 27 2 889944 29 2001 17 18 34 28 2 1,815 30 2002 19 16 36 27 2 2,505 Total multifamily 31 1993 63 23 6 9 0 13 32 1994 62 30 4 5 0 15 33 1995 51 41 4 4 0 13 34 1996 50 38 6 7 0 16 35 1997 47 36 6 11 0 20 36 1998 41 36 10 13 0 28 37 1999 37 30 8 25 0 32 38 2000 39 38 8 15 0 27 39 2001 34 45 7 14 0 37 40 2002 41 42 12 5 0 41 Total residential 41 1993 22 16 20 40 3 1,006 42 1994 25 19 20 33 3 640 43 1995 24 19 26 29 2 532 44 1996 24 19 26 29 2 666 45 1997 24 17 27 30 2 751 46 1998 22 15 31 30 2 1,341 47 1999 20 20 30 29 2 1,125 48 2000 19 22 30 27 2 921 49 2001 18 19 33 28 2 1,852 50 2002 19 17 35 27 2 2,547 NOTE. Coverage of depository institutions declined in 1997 because of an increase in the 3. Includes mortgage company subsidiaries of a bank holding company or a service asset size threshold for exempt institutions from $10 million to $28 million. corporation. 1. Based on the dollar volume of originations reported under the Home Mortgage Disclo- 4. Coverage of independently owned mortgage companies expanded in 1993 when those sure Act. Originations insured or guaranteed by the Rural Housing Service (RHS) include the companies with less than $10 million in assets but with 100 or more home-purchase former Farmers Home Administration. originations were included. 2. Includes savings and loan associations and savings banks. SOURCE. FFIEC, Home Mortgage Disclosure Act, 1990-2001. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Private Mortgage Insurance A67 4.42 APPLICATIONS RECEIVED AND POLICIES WRITTEN FOR PRIVATE MORTGAGE INSURANCE, 1999-2002 By Insurance Company 1999 2000 2001 2002 CCoommppaannyy Applications P w o r l i i t c t i e e n s Applications P w o r l i i t c t i e e n s Applications Policies written Applications P w o r l i i t c t i e e n s 1 Amerin Guaranty * * * * * * * * 2 Commonwealth Mortgage Assurance * * * * * * * * 3 Radian1 317,775 256,924 243,684 185,224 329,295 249,833 347,273 245,938 4 GE Capital Mortgage Insurance 304,365 221,970 259,285 185,995 380,588 286,471 436,146 303,918 5 Mortgage Guaranty Insurance 479,425 377,195 430,414 317,610 598,212 447,435 677,963 500,655 6 PMI Mortgage Insurance 267,470 212,177 254,327 206,444 353,044 285,949 391,496 309,923 7 Republic Mortgage Insurance 157,794 144,618 121,706 113,894 231,138 184,515 292,008 219,426 8 Triad Guaranty Insurance 43,633 33,116 44,165 32,870 73,126 60,731 98,927 83,985 9 United Guaranty 244,637 204,667 220,504 186,004 309,658 259,298 331,981 272,537 10 Total 1,815,099 1,450,667 1,574,085 1,228,041 2,275,061 1,774,232 2,575,794 1,936,382 1. Radian is the result of a merger between Amerin Guaranty and Commonwealth SOURCE. Federal Financial Institutions Examination Council. Mortgage in 1999. 4.43 APPLICATIONS RECEIVED AND POLICIES WRITTEN FOR PRIVATE MORTGAGE INSURANCE, 2002 By Purpose of Loan and Insurance Company Percent Home purchase Home refinance Total CCoommppaannyy Applications P w o r l i i t c te ie n s Applications P w o r l i i t c te ie n s Applications Policies written 1 Radian1 13.6 12.7 13.3 12.7 13.5 12.7 2 GE Capital Mortgage Insurance 17.1 16.0 16.7 15.2 16.9 15.7 3 Mortgage Guaranty Insurance 25.3 24.9 27.7 27.2 26.3 25.9 4 PMI Mortgage Insurance 15.0 15.6 15.5 16.5 15.2 16.0 5 Republic Mortgage Insurance 11.1 11.2 11.6 11.5 11.3 11.3 6 Triad Guaranty Insurance 3.9 4.3 3.8 4.4 3.8 4.3 7 United Guaranty 14.0 15.3 11.4 12.4 12.9 14.1 8 Total 100.0 100.0 100.0 100.0 100.0 100.0 MEMO 9 Number of applications or policies 1,478,235 1,138,327 1,097,559 798,055 2,575,794 1,936,382 1. Radian is the result of a merger between Amerin Guaranty and Commonwealth SOURCE. Federal Financial Institutions Examination Council. Mortgage in 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • September 2003 4.44 APPLICATIONS FOR PRIVATE MORTGAGE INSURANCE, 2002 By Purpose of Loan and Characteristic of Applicant and Census Tract Home purchase Home refinance CChhaarraacctteerriissttiicc Number Percent Number Percent APPLICANT Race or ethnic group 1 American Indian or Alaskan Native 3,711 .3 2,322 .3 2 Asian or Pacific Islander 40,602 3.6 15,849 2.0 3 Black 73,348 6.5 47,208 6.0 4 Hispanic 121,954 10.8 51,488 6.5 5 White 808,093 71.4 602,909 76.5 6 Other 62,704 5.5 53,689 6.8 7 Joint (white and minority) 21,050 1.9 14,776 1.9 8 Total 1,131,462 100.0 788,241 100.0 Income (percentage of MSA median)' 9 Less than 50 86,075 8.0 50,992 6.0 10 50-79 259,623 24.1 187,977 22.1 11 80-99 175,855 16.3 144,849 17.1 12 100-119 150,218 13.9 129,507 15.3 13 120 or more 406,785 37.7 335,846 39.5 14 Total 1,078,556 100.0 849,171 100.0 CENSUS TRACT Racial composition (minorities as percentage of population) 15 Less than 10 557,578 47.9 479,223 54.7 16 10-19 246,528 21.2 178,273 20.3 17 20-49 225,527 19.4 146,709 16.7 18 50-79 76,255 6.5 42,573 4.9 19 80-100 58,891 5.1 29,382 3.4 20 Total 1,164,779 100.0 876,160 100.0 Income2 21 Low 26,757 2.3 10,256 1.2 22 Moderate 148,829 12.8 91,376 10.4 23 Middle 620,445 53.2 499,141 56.9 24 Upper 369,261 31.7 276,320 31.5 25 Total 1,165,292 100.0 877,093 100.0 Location 26 Central city 484,741 41.1 331,922 37.3 27 Non-central city 693,661 58.9 558,131 62.7 28 Total 1,178,402 100.0 890,053 100.0 NOTE. Not all characteristics were reported for all loans. 3. For census tracts located in MSAs. 1. MSA median is median family income of the metropolitan statistical area (MSA) in SOURCE. Federal Financial Institutions Examination Council, which the property related to the loan is located. 2. Lower: median family income for census tract less than 50 percent of median family income for MSA. Moderate: 50 percent to less than 80 percent. Middle: 80 percent to less than 120 percent. Upper: 120 percent or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Private Mortgage Insurance A69 4.45 APPLICATIONS FOR PRIVATE MORTGAGE INSURANCE, 2002 By Purpose of Loan, Disposition of Application, Characteristic of Applicant, and Census Tract Percent Home purchase Home refinance CChhaarraacctteerriissttiicc Approved Denied Withdrawn File closed Total Approved Denied Withdrawn File closed Total 1 Total 9922..66 22..22 44..44 ..77 110000..00 9911..44 2.4 5.6 .6 100.0 APPLICANT Race or ethnic group 2 American Indian or Alaskan 89.9 3.3 5.8 1.1 100.0 91.3 3.0 5.1 .6 100.0 9911..99 2.4 4.9 .8 100.0 90.9 2.7 5.8 .6 100.0 4 Black 8899..66 3.9 5.4 1.0 100.0 88.6 4.0 6.5 .8 100.0 90.7 3.4 4.9 1.0 100.0 89.7 3.7 5.7 .8 100.0 6 White 93.1 1.9 4.2 .7 100.0 92.1 2.1 5.2 .6 100.0 7 Other 96.3 .6 2.9 .2 100.0 95.2 .4 4.3 .1 100.0 93.4 2.0 4.0 .6 100.0 93.1 1.8 4.7 .5 100.0 Income (percentage of MSA median)' 91.0 3.3 5.0 ..77 100.0 87.2 4.1 7.8 .9 100.0 10 50-79 93.4 2.1 4.0 ..66 100.0 90.3 2.7 6.3 .6 100.0 11 80-99 94.1 1.7 3.7 .5 100.0 91.8 2.3 5.4 .6 100.0 12 100-119 94.3 1.6 3.6 .5 100.0 92.3 2.0 5.1 .6 100.0 9944..22 11..77 33..66 .5 110000..00 9922..99 1.9 4.7 .5 100.0 CENSUS TRACT Racial composition (minorities as percentage of population) 94.4 11..66 3.6 .4 100.0 92.1 2.0 5.4 .5 100.0 15 10-19 93.8 11..88 3.9 .5 100.0 91.5 2.3 5.6 .6 100.0 16 20-49 92.9 2.2 4.3 .6 100.0 91.1 2.6 5.7 .6 100.0 17 50-79 91.8 2.7 4.7 .8 100.0 89.8 3.0 6.4 .7 100.0 18 80-100 90.4 3.4 5.3 .9 100.0 88.1 4.1 6.9 .9 100.0 Income2 19 Low 90.0 3.6 5.5 .9 100.0 86.5 4.4 7.9 1.2 100.0 92.2 2.8 4.4 .6 100.0 89.9 3.2 6.2 .7 100.0 21 Middle 93.8 1.9 3.9 .5 100.0 91.6 2.3 5.5 .6 100.0 94.2 1.5 3.8 .5 100.0 92.3 1.9 5.3 .5 100.0 Location3 93.3 22..11 4.0 .6 100.0 91.5 2.3 5.5 .6 100.0 9933..99 11..88 33..99 ..44 110000..00 9911..66 22..33 55..66 .6 100.0 NOTE. Not all characteristics were reported for all loans. 3. For census tracts located in MSAs. 1. Median family income of the metropolitan statistical area (MSA) in which the property SOURCE. Federal Financial Institutions Examination Council, related to the loan is located. 2. Lower: median family income for census tract less than 50 percent of median family income for MSA. Moderate: 50 percent to less than 80 percent. Middle: 80 percent to less than 120 percent. Upper: 120 percent or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • September 2003 4.46 SMALL LOANS TO BUSINESSES AND FARMS, 1996-2002 Company 1996 1997 19984 1999 2000 20014 2002 Total business loans 1 Number 2,424.966 2,560,795 2,736,389 3,287,974 5,110,001 6,094,606 7,556,999 2 Amount (thousands of dollars) 149,718.193 159,401,302 161,211,231 174,538,571 179,056,204 224,914,485 253,225,288 Percent to small firms1 3 Number 55.9 50.0 54.5 60.2 41.7 43.7 31.0 4 Amount 43.1 42.1 47.0 48.5 45.9 45.6 44.2 Total farm loans 5 Number 217.356 212,822 206,267 220,587 204,318 235,417 256,117 6 Amount (thousands of dollars) 10,480.989 11,192,400 11,373,691 12,302,881 11,634,880 14,330,467 16,222,070 Percent to small farms' 7 Number 88.4 89.5 90.4 90.6 90.2 90.0 88.5 8 Amount 81.4 81.3 83.0 83.7 83.8 83.6 83.0 Activity of CRA reporters (percent)2 All small loans to businesses 9 Number 65.9 71.0 67.8 67.8 83.7 84.0 88.0 10 Amount 67.5 69.4 69.4 72.4 75.6 75.0 76.9 All small loans to farms2 11 Number 22.2 24.1 24.9 28.0 30.6 32.3 32.2 12 Amount 27.9 28.4 30.1 34.1 37.5 38.2 38.1 Distribution of business loans by asset size of lender Number (percent) 13 Less than 100 3.7 1.2 1.9 1.0 .5 .4 .1 14 100 to 249 19.7 6.5 5.5 1.4 .8 13.8 .5 15 250 to 999 16.1 15.7 20.3 15.9 18.8 13.2 25.1 16 1,000 or more 60.6 76.6 72.3 81.8 79.8 72.6 74.3 17 Total 100 100 100 100 100 100 100 Amount (percent) 18 Less than 100 1.6 1.4 0.8 1.0 .6 1.0 .4 19 100 to 249 5.7 3.5 3.2 2.2 2.0 2.7 1.6 20 250 to 999 22.4 20.9 22.7 21.6 23.0 21.8 23.6 21 1,000 or more 70.3 74.2 73.3 75.2 74.4 74.5 74.4 22 Total 100 100 100 100 100 100 100 Distribution of farm loans by asset size of lender Number (percent) 23 Less than 100 9.8 6.4 4.9 4.9 2.2 1.2 1.0 24 100 to 249 14.2 10.4 8.2 6.6 4.8 3.4 2.5 25 250 to 999 34.5 37.4 38.7 37.7 46.7 42.7 49.1 26 1,000 or more 41.5 45.8 48.2 50.8 46.3 52.6 47.4 27 Total 100 100 100 100 100 100 100 Amount (percent) 28 Less than 100 6.4 5.1 3.5 4.0 1.7 .9 .7 29 100 to 249 11.5 8.2 6.6 5.6 4.0 2.8 2.3 30 250 to 999 31.7 34.2 36.0 36.3 42.7 38.8 43.2 31 1,000 or more 50.4 52.5 53.9 54.1 51.5 57.5 53.8 32 Total 100 100 100 100 100 100 100 Distribution of business loans by income of census tract3 Number 33 Low 4.7 4.6 4.3 3.6 3.6 4.0 3.7 34 Moderate 15.9 16.0 15.5 14.6 14.6 15.2 15.2 35 Middle 49.4 49.1 49.5 50.1 50.2 50.1 50.5 36 Upper 29.5 29.8 30.3 31.2 31.2 30.3 30.3 37 Income not reported .5 .5 .5 .4 .4 .4 .4 38 Total 100 100 100 100 100 100 100 Amount 39 Low 5.6 5.4 5.2 5.0 4.9 4.9 4.7 40 Moderate 16.0 16.0 15.7 15.5 15.4 15.2 15.2 41 Middle 46.8 46.5 46.8 47.1 47.6 47.6 47.9 42 Upper 30.9 31.4 31.6 31.7 31.5 31.7 31.7 43 Income not reported .7 .7 .7 .7 .5 .6 .6 44 Total 100 100 100 100 100 100 100 MEMO Number of reporters 45 Commercial banks 1,583 1,421 1,576 1,450 1,471 1,443 1,495 46 Savings institutions 496 475 290 461 470 469 491 47 Total 2,079 1,896 1,866 1,911 1,941 1,912 1,986 1. Businesses and farms with revenues of $1 million or less. 3. Low income: census tract median family income less than 50 percent of metropolitan 2. Percentages reflect the ratio of activity by CRA reporters to activity by all lenders. area median family income or nonmetropolitan portion of state median family income; Calculations based on information reported in the June 1996, 1997, 1998, 1999, 2000, 2001, moderate income: 50-79 percent; middle income: 80-120 percent; upper income: 120 percent and 2002 Call Reports for commercial banks and the Thrift Financial Reports for savings or more. Excludes loans where census tract or block number area was not reported. associations. 4. Revised to reflect correction of reported data. SOURCE; FFIEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Loans to Businesses and Farms A71 4.47 ORIGINATIONS AND PURCHASES OF SMALL LOANS TO BUSINESSES AND FARMS, 2002 By Size of Loan Size of loan (dollars) MMEEMMOO LLooaannss ttoo ffiirrmmss AAllll llooaannss wwiitthh rreevveennuueess Type of borrower and loan 100,000 or less 100,001 to 250,000 More than 250,000 ooff $$ oo 11 rr mm lleess iill ss ll iioonn Total Percent Total Percent Total Percent Total Percent Total Percent Number of loans Business 1 Originations 6,997,946 93.4 260,671 3.5 236,890 3.2 7,495,507 100 2,316,700 30.9 2 Purchases 56,600 92.0 2,080 3.4 2,812 4.6 61,492 100 25,427 41.4 3 Total 7,054,546 93.4 262,751 3.5 239,702 3.2 7,556,999 100 2,342,127 31.0 Farm 4 Originations 209,228 82.2 32,321 12.7 13,054 5.1 254,603 100 225,443 88.5 5 Purchases 1,094 72.3 282 18.6 138 9.1 1,514 100 1,123 74.2 6 Total 210,322 82.1 32,603 12.7 13,192 5.2 256,117 100 226,566 88.5 All 7 Originations 7,207,174 93.0 292,992 3.8 249,944 3.2 7,750,110 100 2,542,143 32.8 8 Purchases 57,694 91.6 2,362 3.7 2,950. 4.7 63,006 100 26,550 42.1 9 Total 7,264,868 93.0 295,354 3.8 252,894 3.2 7,813,116 100 2,568,693 32.9 Amount of loans (thousands of dollars) Business 10 Originations 81,000,253 32.4 45,430,559 18.2 123,661,681 49.4 250,092,493 100 111,074,212 44.4 11 Purchases 1,246,279 39.8 354,218 11.3 1,532,298 48.9 3,132,795 100 803,644 25.7 12 Total 82,246,532 32.5 45,784,777 18.1 125,193,979 49.4 253,225,288 100 111,877,856 44.2 Farm 13 Originations 5,953,980 37.0 5,392,012 33.5 4,741,249 29.5 16,087,241 100 13,371,430 83.1 14 Purchases 36,592 27.1 47,380 35.1 50,857 37.7 134,829 100 87,155 64.6 15 Total 5,990,572 36.9 5,439,392 33.5 4,792,106 29.5 16,222,070 100 13,458,585 83.0 All 16 Originations 86,954,233 32.7 50,822,571 19.1 128,402,930 48.2 266,179,734 100 124,445,642 46.8 17 Purchases 1,282,871 39.3 401,598 12.3 1,583,155 48.4 3,267,624 100 890,799 27.3 18 Total 88,237,104 32.7 51,224,169 19.0 129,986,085 48.2 269,447,358 100 125,336,441 46.5 SOURCE: FFIEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • September 2003 4.48 ORIGINATIONS AND PURCHASES OF SMALL LOANS TO BUSINESSES AND FARMS, 2002 By Type of Borrower and Loan, Distributed by Size of Lending Institution Institutions, by asset size (millions of dollars) Type of borrower and loan Less than 100 100 to 249 250 to 999 1,000 or more Total Percent Total Percent Total Percent Total Percent Total Percent Number of loans Business 1 Originations 10,374 0.1 35,707 0.5 1,879,557 25.1 5,569,869 74.3 7,495,507 100 2 Purchases 228 0.4 1,249 2.0 18,664 30.4 41,351 67.2 61,492 100 3 Total 10,602 0.1 36,956 0.5 1,898,221 25.1 5,611,220 74.3 7,556,999 100 Farm 4 Originations 2,629 1.0 6,386 2.5 124,722 49.0 120,866 47.5 254,603 100 5 Purchases 10 0.7 0 0.0 941 62.2 563 37.2 1,514 100 6 Total 2,639 1.0 6,386 2.5 125,663 49.1 121,429 47.4 256,117 100 All 7 Originations 13,003 0.2 42,093 0.5 2,004,279 25.9 5,690,735 73.4 7,750,110 100 8 Purchases 238 0.4 1,249 2.0 19,605 31.1 41,914 66.5 63,006 100 9 Total 13,241 0.2 43,342 0.6 2,023,884 25.9 5,732,649 73.4 7,813,116 100 Amount of loans (thousands of dollars) Business 10 Originations 975,591 0.4 3,802,407 1.5 59.144,142 23.6 186,170,353 74.4 250,092,493 100 11 Purchases 74,261 2.4 240,555 7.7 663,125 21.2 2,154,854 68.8 3,132,795 100 12 Total 1,049,852 0.4 4,042,962 1.6 59,807,267 23.6 188,325,207 74.4 253,225,288 100 Farm 13 Originations 113,254 0.7 365,441 2.3 6,909,847 43.0 8,698,699 54.1 16,087,241 100 14 Purchases 1,705 1.3 0 0.0 105,411 78.2 27,713 20.6 134,829 100 15 Total 114,959 0.7 365,441 2.3 7,015,258 43.2 8,726,412 53.8 16,222,070 100 All 16 Originations 1,088,845 0.4 4,167,848 1.6 66,053,989 24.8 194,869,052 73.2 266,179,734 100 17 Purchases 75,966 2.3 240,555 7.4 768,536 23.5 2,182,567 66.8 3,267,624 100 18 Total 1,164,811 0.4 4,408,403 1.6 66,822,525 24.8 197,051,619 73.1 269,447,358 100 MEMO 19 Number of institutions reporting 95 165 1,218 508 1,986 20 Number of institutions extending loans . . 85 155 1,142 455 1,837 SOURCE: FFIEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Community Reinvestment A73 4.49 COMMUNITY DEVELOPMENT LENDING, 2002 Number of loans (th A ou m s o an u d n s t o o f f l d o o a l n la s r s) MEMO: CRA reporters AAAsssssseeettt sssiiizzzeee ooofff llleeennndddeeerrr Community development loans (((mmmiiilllllliiiooonnnsss ooofff dddooollllllaaarrrsss))) TToottaall PPeerrcceenntt TToottaall PPeerrcceenntt NNuummbbeerr PPeerrcceenntt Number Percent extending extending Institution assets 1 Less than 100 111 0.4 138,430 0.5 95 4.8 27 2.2 2 100 to 249 571 1.9 233,928 0.8 165 8.3 70 5.6 3 250 to 999 8,718 28.5 3,747,971 13.5 1,218 61.3 723 58.4 4 1,000 or more 21,154 69.2 23,689,850 85.2 508 25.6 419 33.8 5 All 30,554 100.0 27,810,179 100.0 1,986 100.0 1,239 100.0 MEMO 6 Lending by all affiliates 396 1.3 913,524 3.3 30 2.4 SOURCE: FFIEC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

99 Federal Reserve Bulletin • September 2003 Index to Statistical Tables References are to pages A3-A73, although the prefix "A" is omitted in this index. ACCEPTANCES, bankers (See Bankers acceptances) Federal Land Banks, 33 Assets and liabilities (See also Foreigners) Federal National Mortgage Association, 28, 32, 33 Commercial banks, 15-21 Federal Reserve Banks Domestic finance companies, 30, 31 Condition statement, 10 Federal Reserve Banks, 10 Discount rates (See Interest rates) Foreign-related institutions, 20 U.S. government securities held, 5, 10, 11, 25 Automobiles Federal Reserve credit, 5, 6, 10, 12 Consumer credit, 34 Federal Reserve notes, 10 Production, 42, 43 Federally sponsored credit agencies, 28 Finance companies BANKERS acceptances, 5, 10 Assets and liabilities, 30 Bankers balances, 15-21 (See also Foreigners) Business credit, 31 Bonds (See also U.S. government securities) Loans, 34 New issues, 29 Paper, 22, 23 Rates, 23 Float, 5 Business loans (See Commercial and industrial loans) Flow of funds, 35-9 Foreign currency operations, 10 CAPACITY utilization, 40, 41 Foreign deposits in U.S. banks, 5 Capital accounts Foreign exchange rates, 56 Foreign-related institutions, 20 Commercial banks, 15-21 Foreigners Federal Reserve Banks, 10 Certificates of deposit, 23 Claims on, 45, 48^9, 52-53 Commercial and industrial loans Liabilities to, 45-7, 50-51, 54, 55 Business and farms, loans to, 70-2 Commercial banks, 15-21 GOLD Weekly reporting banks, 17, 18 Certificate account, 10 Commercial banks Stock, 5, 45 Assets and liabilities, 15-21 Government National Mortgage Association, 28, 32, 33 Commercial and industrial loans, 15-21, 70-3 Consumer loans held, by type and terms, 34 HOME Mortgage Disclosure Act Real estate mortgages held, by holder and property, 33, 58-66 Applications for home loans, 58-63 Time and savings deposits, 4 Home loans, originations, sold, 58, 64-6 Commercial paper, 22, 23, 30 Residential lending activity by financial institutions, 58, 64-6 Community development loans, under CRA, 73 Condition statements (See Assets and liabilities) INDUSTRIAL production, 42, 43 Consumer credit, 34 Insurance, private mortgage, 67-9 Corporations Insurance companies, 25, 33 Security issues, 29, 55 Interest rates Credit unions, 34 Bonds, 23 Currency in circulation, 5, 13 Consumer credit, 34 Customer credit, stock market, 24 Federal Reserve Banks, 7 Money and capital markets, 23 DEBT (See specific types of debt or securities) Mortgages, 32 Demand deposits, 15-21 Prime rate, 22 Depository institutions International capital transactions of United States, 44—55 Reserve requirements, 8 International organizations, 45, 46, 48, 50-3 Reserves and related items, 4-6, 12 Investment companies, issues and assets, 30 Deposits (See also specific types) Investments (See also specific types) Commercial banks, 4, 15-21 Commercial banks, 4, 15-21 Federal Reserve Banks, 5, 10 Federal Reserve Banks, 10, 11 Discount rates at Reserve Banks and at foreign central banks and Financial institutions, 33 foreign countries (See Interest rates) Discounts and advances by Reserve Banks (See Loans) LIFE insurance companies (See Insurance companies) Loans (See also specific types) EURO, 56 Business, 70-2 Commercial banks, 15-21 FARM mortgage loans, 33, 70-2 Community development, 73 Federal agency obligations, 5, 9-11, 26, 27 Conventional, 58-60, 62 Federal credit agencies, 28 FAMC, 64 Federal finance Fannie Mae, 64 Debt subject to statutory limitation, and types and ownership of Farms, 70-2 gross debt, 25 Federal Reserve Banks, 5-7, 10, 11 Federal Financing Bank, 28 FHA, 58 Federal funds, 23 Financial institutions, 33 Federal Home Loan Banks, 28 Freddie Mac, 64 Federal Home Loan Mortgage Corporation, 28, 32, 33 FSA, 58 Federal Housing Administration, 28, 32, 33 Ginnie Mae, 64 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 Loans—Continued Saving deposits (See Time and savings deposits) Home loans and residential lending, 58-66 Savings institutions, 33, 34, 35-9 Insured or guaranteed by United States, 32, 33 Securities (See also specific types) RHS, 58 Federal and federally sponsored credit agencies, 28 VA, 58 Foreign transactions, 54 New issues, 29 MANUFACTURING Prices, 24 Capacity utilization, 40, 41 Special drawing rights, 5, 10, 44, 45 Production, 42, 43 State and local governments Margin requirements, 24 Holdings of U.S. government securities, 25 Member banks, reserve requirements, 8 New security issues, 29 Mining production, 43 Rates on securities, 23 Monetary and credit aggregates, 4, 12 Stock market, selected statistics, 24 Money and capital market rates, 23 Stocks (See also Securities) Money stock measures and components, 4, 13 New issues, 29 Mortgage insurance, 67-9 Prices, 24 Mortgages (See Real estate loans) Student Loan Marketing Association, 28 Mutual funds, 13, 30 Mutual savings banks (See Thrift institutions) THRIFT institutions, 4 (See also Credit unions and Savings institutions) OPEN market transactions, 9 Time and savings deposits, 4, 13, 15-21 Treasury cash, Treasury currency, 5 PRICES Treasury deposits, 5, 10 Stock market, 24 Prime rate, 22 U.S. GOVERNMENT balances Private mortgage insurance, 67-9 Commercial bank holdings, 15-21 Production, 42, 43 Treasury deposits at Reserve Banks, 5, 10 U.S. government securities REAL estate loans Bank holdings, 15-21, 25 Banks, 15-21, 33 Dealer transactions, positions, and financing, 27 Terms, yields, and activity, 32 Federal Reserve Bank holdings, 5, 10, 11, 25 Type and holder and property mortgaged, 33 Foreign and international holdings and transactions, 10, 25, 55 Reserve requirements, 8 Open market transactions, 9 Reserves Outstanding, by type and holder, 25, 26 Commercial banks, 15-21 Rates, 23 Depository institutions, 4-6 U.S. international transactions, 44-55 Federal Reserve Banks, 10 Utilities, production, 43 U.S. reserve assets, 45 Residential mortgage loans, 32, 33, 58-66 VETERANS Affairs, Department of, 32, 33 Retail credit and retail sales, 34 WEEKLY reporting banks, 17, 18 SAVING Flow of funds, 33, 34, 35-9 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A77 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 LISA HOSKINS, Assistant Director TONDA E. PRICE, Assistant Director DOROTHY LACHAPELLE, Assistant Director EDGAR A. MARTINDALE III, Assistant Director OFFICE OF MARSHA W. REIDHILL, Assistant Director STAFF DIRECTOR FOR MANAGEMENT JEFF J. STEHM, Assistant Director JACK K. WALTON II, Assistant Director STEPHEN R. MALPHRUS, Staff Director SHEILA CLARK, EEO Programs Director OFFICE OF THE INSPECTOR GENERAL LYNN S. FOX, Senior Adviser BARRY R. SNYDER, Inspector General MANAGEMENT DIVISION DONALD L. ROBINSON, Deputy Inspector General H. FAY PETERS, Acting Director STEPHEN J. CLARK, Associate Director DARRELL R. PAULEY, 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

103 Federal Reserve Bulletin • September 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 CHARLES L. EVANS, Associate Economist MICHELLE A. SMITH, Assistant Secretary MARVIN S. GOODFRIEND, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel DAVID H. HOWARD, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel JOHN P. JUDD, Associate Economist KAREN H. JOHNSON, Economist BRIAN F. MADIGAN, 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 BYRON G. THOMPSON, 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

A79 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

105 Federal Reserve Bulletin • September 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, 2002. through October 1998. 723 pp. $20.00 each. ANNUAL REPORT: BUDGET REVIEW, 2003. 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

A81 STAFF STUDIES: Only Summaries Printed in the 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- BULLETIN ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, Studies and papers on economic and financial subjects that are of by Stephen A. Rhoades. July 1994. 37 pp. general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and 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.federatreserve.gov/ LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. pubs/staffstudies. Requests to obtain single copies of any paper or Lowrey. December 1997. 17 pp. to be added to the mailing list for the series may be sent to Publications. 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- DENCE, by Gregory Elliehausen. April 1998. 35 pp. 172. USING SUBORDINATED DEBT AS AN INSTRUMENT OF MAR- 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- KET DISCIPLINE, by Study Group on Subordinated Notes ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and and Debentures, Federal Reserve System. December 1999. Donald Savage. February 1990. 12 pp. 69 pp. 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- 173. IMPROVING PUBLIC DISCLOSURE IN BANKING, by Study VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Group on Disclosure, Federal Reserve System. March 2000. Gregory E. Elliehausen and John D. Wolken. September 35 pp. 1990. 35 pp. 174. BANK MERGERS AND BANKING STRUCTURE IN THE UNITED 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- STATES, 1980-98, by Stephen Rhoades. August 2000. 33 pp. GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. 175. THE FUTURE OF RETAIL ELECTRONIC PAYMENTS SYSTEMS: Rhoades. February 1992. 11 pp. INDUSTRY INTERVIEWS AND ANALYSIS, Federal Reserve 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by Staff, for the Payments System Development Committee, James T. Fergus and John L. Goodman, Jr. July 1993. Federal Reserve System. December 2002. 27 pp. 20 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

107 Federal Reserve Bulletin • September 2003 Maps of the Federal Reserve System LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city ES 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

A83 1-A 2-B 3-C 4-D 5-E Pittsburgh % \ I CT / NH * Cincinnati Buffalo / CT sc R1 BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G J-H Ml 7 tL / IN fX-troit • Louisville IA MO TN AR emphis Rock < MS CHICAGO ST. LOUIS 9-1 MMNN •• HHeelleennaa so • MINNEAPOLIS 10-J 12-L ••BHBMM M| CO Omaha® ^ MO • Ki ^ Denver M \SKA NM 1 ()klahoma Cit\ • OK KANSAS CITY 11-K wtt Salt Lake City •l.os Angeles DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

109 Federal Reserve Bulletin • September 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 Vacant 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 Robert A. Funk Richard K. Rasdall Denver 80217 Robert M. Murphy Pamela L. Weinstein 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 Lupe Fraga 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

A85 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

111 Federal Reserve Bulletin • September 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