Federal Reserve Bulletin, 2003-10

Volume 89 • Number 10 • October 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 417 RECENT CHANGES TO A MEASURE OF U.S. Date of issue announced for series-2004 $20 HOUSEHOLD DEBT SERVICE note Changes in levels of aggregate household debt Request for comments on proposed rulemaking in the United States may contain information for risk-based capital standards about the current state of the nation's economy New online guide to submitting applications to and may affect its future direction. A commonly the Federal Reserve used measure of household indebtedness is the household debt service ratio (formerly known as Release of minutes of Board discount rate the household debt service burden), published meetings since 1980 by the Board of Governors of the Enforcement actions Federal Reserve System. Recent changes in financial markets have prompted a compre- Termination of enforcement actions hensive revision of this statistic. This article New schedule for the Federal Reserve Bulletin describes the revision and introduces a new measure, the financial obligations ratio, which adds Staff changes recurring obligations—rent, auto leases, homeowners' insurance, and property taxes—to the 435 LEGAL DEVELOPMENTS traditional calculation of the debt service ratio. Various bank holding company, bank service In total, these revisions change the level of the corporation, and bank merger orders; and penddebt service ratio but do not substantively alter ing cases. its trajectory over time. The article also presents separate estimates of A1 FINANCIAL AND BUSINESS STATISTICS the financial obligations ratio for homeowners and renters. The ratio for homeowners, which These tables reflect data available as of may summarize the effects of the recent refi- August 27, 2003. nancing boom on the financial obligations of homeowners, has risen gradually over the past A3 GUIDE TO TABLES decade; the ratio for renters has risen more A4 Domestic Financial Statistics steeply. The flat contour of the homeowner ratio A42 Domestic Nonfinancial Statistics in recent quarters suggests that homeowners A44 International Statistics may have rebalanced their portfolios toward lower-cost mortgage debt during the recent A57 GUIDE TO SPECIAL TABLES AND period of economic weakness. STATISTICAL RELEASES 427 ANNOUNCEMENTS A58 INDEX TO STATISTICAL TABLES Federal Open Market Committee statement A60 BOARD OF GOVERNORS AND STAFF Statement by Chairman Alan Greenspan on the nominations of Vice Chairman Ferguson and A62 FEDERAL OPEN MARKET COMMITTEE AND Governor Bernanke STAFF; ADVISORY COUNCILS Statement by Vice Chairman Ferguson on his nomination to a second term A64 FEDERAL RESERVE BOARD PUBLICATIONS Statement by Governor Bernanke on his nomi- A66 MAPS OF THE FEDERAL RESERVE SYSTEM nation to a full term Results of the Shared National Credit review of A68 FEDERAL RESERVE BANKS, BRANCHES, syndicated bank loans AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes to a Measure of U.S. Household Debt Service Karen Dynan, Kathleen Johnson, and Karen Pence, purchasing them, while in the education finance marof the Board's Division of Research and Statistics, ket, market share has shifted from commercial bank prepared this article. David Brown provided research loans to government-financed student loans. assistance. Because of such changes in financial markets, Federal Reserve staff undertook a major revision of the Changes in aggregate household debt in the United debt service ratio (DSR), which had last been revised States may contain information about the current in 1999. In the current revision, the staff had three state of the economy and may influence its future goals. The first was to evaluate and update the data path. When a large share of household income is sources and the methods used to calculate the DSR. devoted to debt repayment, households have fewer The second was to create a broader measure of housefunds available to purchase goods and services. hold liabilities, the financial obligations ratio (FOR), Households with high debt levels relative to income which added recurring obligations—rent, auto leases, are also more likely to default on their obligations homeowners' insurance, and property taxes—that had when they suffer an unanticipated misfortune such as not traditionally been included in the calculation of job loss or illness. Thus, when household debt ratios the DSR. The third goal was to analyze the effect of are high and unemployment is rising, lenders may recent mortgage market changes on the debt of homerespond to the expected increase in defaults by limit- owners by creating estimates of the FOR for homeing the availability of credit; this dynamic may fur- owners and renters. The results of these revisions are ther weigh on spending. presented in this article. An often-used summary measure of household debt Interpretation of the DSR and these revisions is is the household debt service ratio (formerly known subject to several caveats. First, the DSR is a ratio of as the household debt service burden), which the minimum debt payments, not total debt, to income. Board of Governors of the Federal Reserve System Required monthly payments can differ on loans of the first published in 1980.' This measure, which is same dollar amount because of differences in maturiintended to capture the share of household after-tax ties and interest rates. Second, the measure is a ratio income obligated to debt repayment, is calculated as of two aggregate numbers. This measure expresses the ratio of aggregate required debt payments (inter- the debt service obligations of the population as a est and principal) to aggregate after-tax income. whole but not necessarily the obligations of the typi- Changes in the structure and sophistication of cal household.2 Third, what the DSR indicates about financial markets in the past several years appear to the economy is not straightforward because it does have affected household debt service ratios. In the not incorporate the intentions or expectations of borresidential mortgage market, lenders have developed rowers. Some households may increase their ratios products that have broadened the base of household by borrowing more because they are appropriately debt by enabling borrowers with impaired credit or optimistic about their future income prospects and limited funds for a down payment to purchase homes. their corresponding ability to repay debt. Other Advances in home equity lending have enabled bor- households may increase their ratios because they rowers to extract equity more easily from their homes have suffered an unanticipated misfortune that necesthrough a home equity line of credit or a cash-out sitates borrowing to cover their extra expenses. An refinancing. In the auto finance market, more drivers than in the past are leasing their cars instead of 2. The Survey of Consumer Finances releases an estimate every three years of the median household debt service ratio, which can be interpreted as the debt service ratio of a typical household that has 1. See Charles Luckett, "Recent Financial Behavior of House- debt. This measure fell from 18.1 percent of income in 1998 to holds," Federal Reserve Bulletin, vol. 66 (June 1980), pp. 437-43, for 16.0 percent in 2001. See Ana M. Aizcorbe, Arthur B. Kennickell, and more details. The data for the revised debt service ratio discussed Kevin B. Moore, "Recent Changes in U.S. Family Finances: Evidence in this article are available at www.federalreserve.gov/releases/ from the 1998 and 2001 Survey of Consumer Finances," Federal housedebt/default.htm. Reserve Bulletin, vol. 89 (January 2003), pp. 1-32, for more details. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 Federal Reserve Bulletin • October 2003 1. Share of dollars outstanding, by type of nonauto, nonrevolving loans, 1983-2001 Percent Student Mobile home RV and marine Personal YYeeaarr Previous Revised1 Previous Revised1 Previous Revised1 Previous Revised1 1983/1985 2 30 24 10 21 40 28 1989 33 19 23 24 20 20 1992 37 15 29 17 21 17 1995 44 21 22 14 26 11 1998 17 21 37 18 36 2000/20012 12 21 31 14 51 1. These figures are based on loans reported to be from banks, finance com- SOURCES. For "previous" column, American Bankers Association Installpanies, credit unions, and stores. ment Credit Report. For "revised" column, Survey of Consumer Finances, vari- 2. Survey of Consumer Finances (SCF) data are available for 1983 and 2001, ous waves. whereas American Bankers Association (ABA) data are available for 1985 and 2000. increase in the DSR indicates good news for the have become less confident that banks' distribution economy in the first example and bad news in the of loan types represents the distribution for the credit second. market as a whole. One example of the changing role of commercial banks in household credit markets is the student loan UPDATING SOURCES OF DATA FOR THE DSR market. From 1983 to 2001, student loans as a share of commercial banks' nonauto, nonrevolving loan Recent developments in credit markets necessitated portfolio—the previous basis for our estimates— changing some sources of the data used to calculate declined from 30 percent to 12 percent (table 1). the DSR. Commercial banks' changing role in house- Over the same period, student loans as a share of hold credit markets led to replacing a bank-level households' nonauto, nonrevolving debt—the resurvey with a household-level survey as the source visedbasis for our estimates—increased from about for the distribution of loan types. In the process of 28 percent to 58 percent. That these shares show revision, members of the Board staff re-evaluated opposite trends implies that households are obtaining and updated the data sources for loan maturities and education loans from lenders other than commercial interest rates. Also, changes in the student loan marbanks, such as the federal government. ket led to using new sources of data for student loans. Another example is the market for personal loans. Between 1983 and 2001, personal loans as a share of Using a New Source of Nonauto, Nonrevolving commercial banks' nonauto, nonrevolving consumer Debt Shares loan portfolio fluctuated in a wide band around 30 percent. At the same time, personal loans were In the calculation of the DSR, aggregate nonauto, declining as a share of households' nonauto, nonrenonrevolving debt is split into its component parts— volving credit; in 2001, they made up only 8 percent student loans, mobile-home loans, recreational vehi- of such credit, down from 28 percent in 1983. One cle (RV) and marine loans, and personal loans— possibility is that personal loans have been replaced because these loans have different interest rates and by credit card debt, a type of revolving debt that has maturities and so have different amounts of debt more than doubled as a share of total consumer debt service associated with a given increase in debt.3 In in the past two decades. the past, the aggregate was split with shares esti- To obtain information about such markets, we mated from the American Bankers Association sur- turned to the Survey of Consumer Finances (SCF) vey of banks. However, the role of commercial banks (see box). This survey gathers detailed information in household credit markets has changed, and we on households' financial characteristics. Part of this information concerns households' outstanding con- 3. Revolving debt arises from retail credit extended on the basis of sumer loans from all types of lenders. a credit line and from the sale of services and consumer goods other than passenger cars and mobile homes. A single contract governs multiple use of the account, and purchases may be made with a credit Updating Assumptions about the Time card. Generally, credit extensions can be made at the consumer's discretion, provided that they do not cause the outstanding balance of to Maturity the account to exceed a prearranged credit limit. Nonrevolving debt comprises all other loans not included in revolv- The assumptions about the remaining time to matuing credit that are unsecured or are secured by collateral other than real estate. rity of the loans outstanding (remaining maturity) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes to a Measure of U.S. Household Debt Service 419 2. Comparison of interest rates on nonauto, nonrevolving credit in the SCF with those currently used in the DSR calculation, 1983-2001 Percent 1. The proxy is the interest rate on 48-month new car loans at commercial SCF Survey of Consumer Finances. banks. DSR Debt service ratio. 2. These figures are based on loans reported to be from banks, finance com- SOURCES. RV, marine, mobile home, and personal loans: Federal Reserve. panies, credit unions, and stores. Student loans: Sallie Mae. Survey of Consumer Finances, various waves. 3. SCF data are available for 1983 and 2001, whereas ABA data are available for 1985 and 2000. used to calculate the DSR have been in place for account for the deferral of student loans, we adjusted several years and do not capture the recent changes the stock of loans to reflect only those loans on which in credit markets. These maturity assumptions have payments are currently being made. important implications for the DSR calculation because longer-maturity loans have lower payments, all else being equal, whereas shorter-maturity loans Re-evaluating and Updating have higher payments. The average remaining times the Interest Rate Data to maturity on types of nonrevolving debt other than auto loans are available infrequently and need to be We have also re-evaluated and updated the sources of re-evaluated from time to time. data on interest rates. In the past, we used proxies for To update the maturity assumptions, we again interest rates on RV, marine, and mobile-home loans.6 turned to the SCF.4 For example, after examining the According to the SCF, however, the interest rates SCF data and consulting with industry contacts, we on these loans are similar to each other and to the raised the assumed remaining maturity for mobile- Federal Reserve's series on the average interest rate home loans to 100 months.5 The SCF data also indi- offered by banks on 48-month new car loans (see cated that the average remaining maturity on personal table 2). Thus, we replaced the previously used proxloans—of 42 months—was much longer than the ies with this rate, which is 3 to 4 percentage points previously assumed maturity of 16 months, and so lower than the proxies we had been using. we lengthened this maturity assumption as well. As part of the re-evaluation, we compared the Finally, although the SCF's average remaining matu- quarterly interest rates for student loans from Sallie rity for student loans currently being paid—at Mae and those for personal loans from the Federal 65 months—is fairly close to our previous assump- Reserve with data from the SCF. The student loan tion of 80 months, payments on a large number of interest rate, which is the average interest rate on student loans are currently being deferred. According Stafford student loans as reported by Sallie Mae, is to the SCF, at any given time, payments are not being similar to the rate reported in the SCF. Over the past made on one-quarter to one-half of student loans. To twenty years, each rate has shown only mild fluctuations around its average of 8.5 percent.7 Interest rates on personal loans in the SCF, defined as all nonrevolving loans for purposes other than education or 4. The SCF does not ask households for the remaining maturity on the purchase of an RV, a boat, or a mobile home, their loans in all cases, but we calculated the implied remaining maturity by subtracting the age of the loan from the original maturity. 5. The remaining maturity on mobile homes was previously assumed to be 40 months; the average remaining maturity captured by 6. We previously used the interest rate on used cars at finance the SCF is about 149 months. However, the remaining maturity companies as a proxy for the interest rate on RV and marine loans, calculated from the SCF may not accurately represent the remaining and the interest rate on 48-month new car loans at commercial banks maturity on household debt because the SCF measure of mobile-home plus a constant as a proxy for the interest rate on mobile-home loans. debt includes mobile homes and sometimes the land on which they 7. The similarity is not too surprising—a comparison of student stand. The loan for this land would have a substantially longer loan rates by source in the SCF reveals little difference across types of maturity than would that for the mobile home itself. lending institution. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 Federal Reserve Bulletin • October 2003 appear to be a bit lower than the rates offered by 1. Debt service and financial obligations ratios, 1980-2003 :Q2 banks on 24-month personal loans, but this difference has been close to zero in recent years. Adding New Sources for Student Loan Data — 20 Financial obligations ratio The DSR was broadened to account for changes in the student loan market. Specifically, the measure of consumer credit used to calculate the DSR was expanded to include student loans extended by the government and Sallie Mae.8 From the household sector's perspective, student loans made by the government or Sallie Mae do not differ fundamentally from those made by other lenders. However, these student loans were not captured in the consumer 1980 1985 1990 1995 2000 credit statistics because information about student NOTE. Financial obligations include debt service, rent payments, auto lease loans had traditionally been collected through sur- payments, homeowners' property tax payments, and homeowners' insurance veys of banks.9 payments. Before 1993, the federal government participated a private corporation, will be included in consumer indirectly in the student loan market by guaranteeing loans held by finance companies when statistics from loans made available by private lenders, a good por- this sector are re-benchmarked in 2005. To avoid tion of which were commercial banks.10 In 1993, it such inconsistency in treatment, Sallie Mae's student began disbursing education loans directly to house- loans since 1977 were added to the Federal Reserve's holds through the congressionally mandated Fed- G.19 consumer credit statistics beginning with the eral Direct Student Loan Program (FDSLP).11 The October 2003 release. Their inclusion did not materi- FDSLP expanded rapidly, and by the end of the ally change the growth rate of consumer credit, but it decade, the program was responsible for one-quarter has raised the level an average of 2Vi percent since of the approximately $177 billion in student loans 1977. outstanding under federal programs.12 Accounting for student loans extended by the federal government raised the level of consumer credit an average of Revision to the Debt Service Ratio Estimate 3 percent since 1994 and its annual growth rate about V2 percentage point each year. On net, changes to the source data led to a downward Sallie Mae's student loans had not been included revision to the DSR of about IV2 percentage points in the consumer credit statistics because consumer from 1980 through 2002 (chart 1 and top portion credit information traditionally had not been col- of table 3). Revisions to personal loan payments lected from government-sponsored enterprises. However, loans from Sallie Mae's parent company (SLM), 3. Contributions to the overall revision, 1980-2002 Percentage points 8. The consumer credit data used in the calculation are published by the Federal Reserve in the G.19 statistical release. A revision back Component 1980-89 1990-94 1995-99 2000-02 1980- 2002 to January 1977 first appeared in the October 7, 2003, release of data for August 2003. New data sources WSt^ Sallie Mae is a federally chartered, government-sponsored enter- Student loans -.13 -.03 .22 .50 .05 prise that has the majority of its assets in student loans. In 1997, it -1.44 -.83 -1.11 -1.26 -1.21 received authorization to reorganize as a fully private, state-chartered RV and marine TSSITTMP loans -.11 -.28 -.44 -.53 -.27 corporation. The following year, the institution became a wholly Mobile-home owned subsidiary of SLM Holding Corporation. loans -.09 -.02 .09 .07 -.01 9. Federally guaranteed student loans made by state nonprofit Auto loans -.03 -.04 .09 .29 .03 Total -1.80 -1.20 -1.14 -.93 -1.41 agencies continue to be excluded from the consumer credit statistics • ' • SKMI | because of the lack of frequent and timely data. Broadened debt 10. The Higher Education Act of 1965 authorized the Federal service burden Automobile leases ... .03 .21 .53 .53 .33 Family Education Loan Program (Pub. L. 89-329) November 8, 1965. Rental payments 3.38 3.36 3.14 2.91 3.20 11. The Omnibus Budget Reconciliation Act of 1993 (Pub. L. Property taxes 103-66), August 10, 1993. and insurance .. 1.70 1.71 1.66 1.57 1.66 12. Department of Education, Office of Postsecondary Education, Total 5.11 5.28 5.33 5.01 5.19 Federal Student Loan Programs Databook 1997-2000, www.ed.gov/ Overall revision 3.31 4.08 4.19 4.08 3.78 finaid/prof/resources/data/ope.html. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes to a Measure of U.S. Household Debt Service 421 accounted for the lion's share of this revision because 64 percent to about 68 percent.13 In the process, these of the lengthening of our assumptions about remain- new homeowners likely replaced their rental paying maturity on these loans. This revision alone ments with mortgage debt. reduced our estimate of the DSR more than 1 percent- Because of this shift from renting to owning, a age point. Reducing the interest rate used to calculate measure of household financial obligations that the required debt service on RV and marine loans and excludes rent on tenant-occupied properties overlengthening their assumed maturities accounted for states the recent increases in housing-related obligamost of the remaining revision. tions. To resolve this measurement issue, we added data from 1980 to the present on tenant-occupied, nonfarm rent from the National Income and Product BROADENING THE MEASURE Accounts (NIPA) to the estimates of household debt OF HOUSEHOLD LIABILITIES WITH THE FOR payments. As a share of after-tax personal income, rent payments rose fairly rapidly between the early Because of changes in the mortgage and automobile and mid-1980s, reaching VA percent, and have markets, we created a new measure of household subsequently fallen to less than 3 percent (bottom liabilities—the financial obligations ratio (FOR). By portion of table 3). Incorporating rental payments including rental payments on primary residences as increased the level of the DSR VA percentage points well as other housing-related expenses, this measure on average between 1980 and 2002. reflects the household sector's movement toward To capture all the financial commitments associowning (debt financing) and away from renting (lease ated with homeownership, a measure of household financing) in the housing market. And by including financial obligations should also include expendiautomobile lease payments, the measure reflects the tures, such as property taxes and homeowners' insurmovement toward leasing in the automobile market. ance, that must be paid but are not part of mortgage The resulting measure better captures changes in the debt. From 1980 through 1994, aggregate property share of household resources dedicated to recurring taxes paid by households as a share of total disposfixed expenses. The magnitude of auto lease commitable personal income hovered around Wi percent. ments and the combination of the various housing- Since that time, property taxes have edged down to related commitments relative to disposable income an estimated VA percent of income. Homeowners' appear in chart 2. insurance payments as a percentage of disposable personal income are quite small, averaging less than XA percent over the past two decades. Taken together, Housing Market property taxes and homeowners' insurance payments account for 1% percentage points of the difference Households have moved from renting toward owning between the FOR and the DSR from 1980 through their primary residences. Over the 1990s, the share 2002. of households that owned their homes rose from 2. Financial obligations as a share of disposable income, 1980-2003:Q2 Auto Market Percent Percent In contrast to the housing market, in the automobile market, households have shifted somewhat from owning their vehicles and incurring debt to leasing (renting) their vehicles. In 1992, 2Vi percent of households leased a vehicle. By 2001, this figure had risen to 53A percent.14 Because of this shift, a measure of financial obligations that excludes automobile 13. U.S. Census Bureau, "Housing Vacancies and Homeownership Historical Tables," table 14, http://www.census.gov/hhes/www/ housing/hvs/historic/histt 14.html. 14. See Ana M. Aizcorbe, Martha Starr, and James T. Hickman, "The Replacement Demand for Motor Vehicles: Evidence from the Survey of Consumer Finances," Board of Governors Finance and Economics Discussion Series 2003-44, www.federalreserve.gov/pubs/ NOTE. Housing-related commitments include rent, property tax, and property insurance payments. feds/. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 Federal Reserve Bulletin • October 2003 leases understates increases in consumers' required DEBT SERVICE AND FINANCIAL OBLIGATIONS automobile finance payments. Accordingly, we added BY HOMEOWNERSHIP STATUS automobile lease expenditures from the NIPA to our estimate of household debt payments. Lease pay- Record low interest rates and rising house prices over ments account for roughly lA percentage point of the the past few years have prompted millions of homedifference between the FOR and the DSR. owners to refinance their mortgages and to tap into their home equity.15 The net effect of these refinancings on the outstanding debt of homeowners is Comparison of the DSR and the FOR ambiguous. If homeowners reduce their mortgage payments through refinancing or if they pay off Broadening the measure of household liabilities had higher-cost consumer debt with the proceeds of a a larger effect on the level of the DSR than on its cash-out refinancing (that is, tap into their equity and contour over time. Mainly because of the addition of take out cash), homeowner debt service will decrease. rental payments on tenant-occupied housing, the new By lowering required monthly payments, this balance FOR measure is about 5 lA percentage points higher sheet restructuring may make homeowners' conon average than the revised DSR measure between sumption less vulnerable to income declines. How- 1980 and 2002 (chart 1). The FOR has varied ever, if homeowners use the proceeds of a cash-out between 15 percent and 19 percent since 1980, with a refinancing to finance new consumption, homeowner high in the fourth quarter of 2001 (chart 3). debt service may increase. For these reasons, it is The growth in debt outstanding explains much of useful to separate financial obligations of homeownthe movement in this measure, although changes in ers from those of renters. The changes in the ratio of interest rates and maturities contribute as well. In the homeowners' financial obligations to their incomes mid-1980s, rapid growth in the major categories of may summarize the net effect of the refinancing boom household debt—mortgages, credit card debt, and on the financial situations of homeowners. automobile loans—led to a rise of 2 percentage points Separating homeowner and renter financial obliin the FOR. During the recession in the early 1990s, gations also allows the creation of a renter financial nonrevolving consumer debt contracted, mortgage obligations ratio. In general, renters have less income growth was sluggish, and the FOR dropped 1 lA per- than do homeowners and are more likely to have centage points. In the mid-1990s and again around trouble repaying their financial obligations. In 2001, the turn of the century, rapid debt growth pushed the the median income of renters was $24,700; the FOR higher. median income of homeowners was $52,100. In the same year, 14 percent of renters and only 4 percent of homeowners said that they had been delin- 3. The financial obligations ratio, 1980-2003 :Q2 quent sixty days or more on a loan in the past year.16 Thus, a separate financial obligations ratio for renters may indicate how the debt obligations of households with less income and less wealth have changed over time. However, splitting homeowners' and renters' financial obligations involves complications in terms of both computation and interpretation. First, the aggregate data series used in calculating the FOR are not, in general, available separately for homeowners and renters. Thus, the income and obligation series for each group must be estimated using householdlevel survey data. The methods used to estimate these series are described later in this article. Second, the rise in the rate of homeownership opens the possibilt t t t 1984-86 1991-92 1994-96 1999-2000 rapid growth nonrevolving credit card all types of 15. See Glenn Canner, Karen Dynan, and Wayne Passmore, "Mortin mortgages, consumer debt and debt rising gage Refinancing in 2001 and Early 2002," Federal Reserve Bulletin, credit card debt auto loans fairly vol. 88 (December 2002), pp. 469-81, for more discussion of the debt, and contracting; rising briskly recent refinancing boom. auto loans mortgages rapidly 16. See Aizcorbe, Kennickell, and Moore, "Recent Changes in growing slowly U.S. Family Finances," tables 1 and 14. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes to a Measure of U.S. Household Debt Service 423 4. Distribution of the debt of homeowners and renters, ments. Using survey data, we estimate the shares of by loan type, 1990-20021 various types of income accruing to homeowners and Percent renters. We then use these shares to split the aggregate NIPA income data between homeowners and Type of loan Homeowners Renters 5 1 renters. Mortgage 827 In practice, estimating the income of homeowners Credit card 40 Auto 7 35 and renters is more complicated than estimating their RV and marine 1 1 M Stu o d b e il n e t home .. \ 20 debt payments for two reasons. First, the definition of income in NIPA data is different from that in Personal 4 survey data. The NIPA definition includes compo- NOTE. Details may not sum to 100 because of rounding. 1. Percentages are calculated separately for each year and then averaged. nents such as the rental value of owner-occupied . . . Not applicable. housing, employer contributions to private pension SOURCES. Federal Reserve, flow of funds accounts and G.19 Consumer Credit statistical release; data split with shares estimated from the SCF. funds, and the value of Medicare and Medicaid entitlements, which are generally excluded from survey-based definitions. Second, some sources of ity that the characteristics of homeowners as a group survey data may undercount high-income housemay have changed over time. Therefore, changes in holds, whose income is a significant fraction of the homeowner FOR may reflect changes in the aggregate income. Moreover, in some surveys the characteristics of new homeowners rather than true incomes of these high-income households are changes in the financial commitments of existing replaced with lower figures in an attempt to maintain homeowners. A rough estimate of the extent of the households' confidentiality. Because an overthis effect, presented at the end of the article, sugwhelming percentage of high-income households are gests that up to half the rise in the homeowner FOR homeowners, excluding their income may induce a over the 1990s may be due to the increase in downward bias in the estimate of the homeowner homeownership. share of income. To mitigate the difficulties raised by differences in income definitions, each component of NIPA income Estimating the Financial Obligations is matched to its closest equivalent in survey data of Homeowners and Renters (table 5). This method assumes only that the same share of income accrues to renters and homeowners The debt of renters and owners is distributed differwithin each subcategory for the NIPA and survey ently across loan types. Mortgages are the dominant data, rather than within the NIPA and survey data as a component of the debt of homeowners, whereas whole. For components in which the income of highcredit card, auto, and student loans are the major income households plays a significant role—wage, components of the debt of renters (table 4). As a self-employment, rental, dividend, and interest result, changes in mortgage interest rates will affect income—the homeowner/renter split is based on the the FOR only of homeowners, whereas changes in Survey of Consumer Finances, which oversamples consumer loan interest rates will disproportionately these households specifically. For other income affect the FOR of renters. sources, the split is based on the March supplement To split aggregate debt service, for each type of to the Current Population Survey (CPS), which is loan we estimate the share of debt service accruing to conducted more frequently than is the SCF and is homeowners and renters. These shares, which are estimated from the SCF, are then applied to each loan type's aggregate debt service. Auto lease payments 5. NIPA income subcategories and survey data equivalents are also split based on estimates from the SCF, whereas homeowners' insurance and property taxes NIPA income subcategory Survey source are assigned entirely to homeowners and rent payments are assigned entirely to renters. Wage SCF Employee benefits CPS Self-employment income SCF Rental income net of imputed rent SCF Imputed rent of homeowners1 Estimating the Income Personal dividend and interest income SCF Transfer income (net of Medicare and Medicaid) CPS of Homeowners and Renters Medicare and Medicaid CPS 1. Assigned entirely to homeowner category. Conceptually, estimating the income of homeowners . . . Not applicable. SCF Survey of Consumer Finances. and renters is similar to estimating their debt pay- CPS Current Population Survey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 Federal Reserve Bulletin • October 2003 6. Distribution of homeowner and renter income Microdata Sets Used to Calculate the across sources, 2001 Homeowner and Renter FORs Percent Income source Homeowners Renters The Federal Reserve Board conducts the Survey of Consumer Finances (SCF) every three years. The survey is 53 63 Dividends, interest, and designed to provide comprehensive data on the wealth self-employment income 28 8 (both the assets and the liabilities) of American house- Transfers and Medicaid 9 23 Employee benefits and Medicare .. 9 7 holds. The SCF oversamples high-income households because these households hold a disproportionate share NOTE. Details do not sum to 100 because rental income and imputed rent of homeowners are excluded from the table. of the nation's wealth. Weighting is used in estimation SOURCE. NIPA income data split with shares estimated from the CPS and to give each survey case its approximate representation in SCF. the full population of households. Survey waves are currently available for 1983, 1986, 1989, 1992, 1995, The Financial Obligations Ratios 1998, and 2001. The 2001 survey data were released for Homeowners and Renters publicly approximately fifteen months after the completion of the interviews and contained data from interviews with 4,442 households. The financial obligations ratio for renters is substan- The Bureau of the Census conducts the Current Popu- tially higher than that for homeowners (chart 4). The lation Survey (CPS) monthly and asks detailed questions renter ratio is higher than the owner ratio because about income annually in its March supplement. The renters as a group spend a greater share of income on survey is designed to provide information on the labor housing and on consumer debt payments. Renters force characteristics of the U.S. population. The CPS web as a group spent 17 percent of their total after-tax site has March supplement data from 1992 onward, and income on rent payments, whereas homeowners as a the Unicon Corporation's "CPS Utilities" provides this group spent only 7.7 percent of their total after-tax data from 1962 onward. The data for the 2002 March supplement were released approximately six months after income on mortgage payments, homeowners' insurthe completion of the interviews and contained data from ance, and property taxes. Renters also spent 5 perapproximately 78,000 households. centage points more of their income than homeowners did on consumer debt payments. The financial obligations ratios for homeowners and renters also have different contours over time. based on a larger number of households. (See the box The homeowner FOR moved largely in lockstep with for more information on these surveys.) Besides the aggregate measure over the 1980s and 1990s, being more frequent, the CPS also asks more detailed whereas the renter FOR accelerated over the 1990s. questions about the many possible sources of transfer Over the 1992-2002 period, the homeowner ratio income, such as food stamps and Temporary Assisrose 2.0 percentage points, and the renter ratio rose tance to Needy Families, and thereby yields a poten- 6.8 percentage points. tially better measure for this category than does the SCF. Federal and state tax shares are estimated with the internal version of the SCF and the National Bureau of Economic Research's TAXSIM model.17 4. Financial obligations ratios for homeowners and renters, 1980-2003:Q2 The income of homeowners and renters is distributed differently across the sources of income. Divi- Percent dends, interest, and self-employment income represent 28 percent of the income of homeowners but only 8 percent of the income of renters (table 6). Transfer income and Medicaid make up only 9 percent of the income of homeowners but 23 percent of the income of renters. Thus, changes in the stock and bond markets will affect homeowners disproportionately, and changes in the rules governing transfer Aggregate FOR programs will influence primarily renters. 17. State identifiers are not released on the public version of the SCF. For more information on the TAXSIM model, see www.nber.org/ -taxsim. 1990 1995 2000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Changes to a Measure of U.S. Household Debt Service 425 The renter ratio has risen more sharply than has the 5. Effect of rise in homeownership on homeowner financial obligations ratio, 1989-2003:Q2 homeowner ratio since the early 1990s because renters experienced less growth in income than homeowners did. From the fourth quarter of 1992 to the fourth quarter of 2001, which is the most recent peak of the FOR series, the income of renters rose 22 percent, and the income of homeowners rose 60 percent. In addition, for the first part of this period—roughly from 1993 to 1995—renter debt payments rose at a faster rate than homeowner debt payments did. The Rise in Homeownership and the Homeowner Financial Obligations Ratio The increase in homeownership over the 1990s appeared to stem in part from changes in the mort- pool some of the households with the highest levels gage market, as the mortgage industry became more of debt. Indeed, excluding these households decreases sophisticated at developing products for borrowers the debt service payments of homeowners 11 perwith impaired credit or with limited funds for a down cent, whereas their income decreases only 4 percent. payment. If these new homeowners, who would have This estimate suggests that the rise in the homeowner been renters in the past, have high debt levels relative FOR over the 1990s reflects an increase in both the to their incomes, the homeowner FOR will increase. indebtedness of homeowners and in the rate of However, this increase will not signal that existing homeownership. homeowners have taken on more debt; it will reflect simply the changing composition of the homeowner pool. SUMMARY The effect of this rise in homeownership on the homeowner FOR cannot be precisely estimated Recent changes in financial markets have necessibecause we have no way of identifying current home- tated changes to the structure and the methodology of owners who would have been renters under the pre- the debt service ratio statistics. The new household vailing lending standards of the past. However, recent financial obligations ratio, introduced in this article, research by Federal Reserve staff suggests that the adds rent, auto lease payments, and other recurring increase in homeownership over the 1990s was con- obligations to the household debt service ratio. Both centrated among households with limited funds for a the new household FOR and the revised household down payment.18 As a rough attempt to quantify the DSR incorporate an expanded measure of consumer magnitude of this new-homeowner effect, we isolated credit and revised estimates of loan maturities and the new homeowners in the 1995, 1998, and 2001 interest rates. The new FORs for homeowners and Surveys of Consumer Finances with the largest mort- renters provide separate estimates of the indebtedness gage loans relative to their house values. For each of of these groups relative to their respective incomes. these waves of the SCF, we chose enough of these On net, these changes in methodology have raised households so that, when they were removed from the level of the DSR but have not substantively the homeowner group, the homeownership rate would changed its trajectory over time. As was true before be reduced to its 1992 value. the revision, the DSR in 2002 was similar to the peak Removing these new homeowners from the home- level reached in the 1980s. The homeowner FOR, owner group subtracts about half the growth in the like the aggregate FOR, increased gradually during homeowner FOR over the 1990s (chart 5). This the 1990s, whereas the renter FOR rose more steeply. change may be an upper bound on the magnitude of However, both the homeowner and the renter FORs the effect because we removed from the homeowner have remained largely unchanged over recent quarters. Homeowners appear to have managed their liaabilities through the recent period of economic 18. See Irina Barakova, Raphael Bostic, Paul Calem, and Susan weakness by rebalancing their portfolios toward Wachter, "Does Credit Quality Matter for Homeownership?" unpublished paper, Federal Reserve Board, January 6, 2003. lower-cost mortgage debt. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 Federal Reserve Bulletin • October 2003 tion of loans by vintage, which was calculated from APPENDIX: DEBT SERVICE CALCULATION the SCF, to a quarterly interest rate series for new To calculate household debt service, the following auto loans newly originated by commercial banks formula for principal and interest payments is applied and finance companies. Using the same method, we for each type of installment loan: estimate the rate on the stock of used automobiles with a quarterly interest rate on used auto loans newly originated by finance companies. The average nA.t interest rate on the stock of student loans, mobile- ^ - i - d + r , ^/ home loans, RV and marine loans, and personal loans is a backward moving average of the rate on new where ds is the debt service, d is the stock of debt, i t i t loans for that type of debt (or a proxy for that interest r is the average interest rate on that stock, and m is i t i t rate). the remaining maturity for loan type i at time t. Average remaining maturities on the stock of new and used automobile loans are estimated with the same procedure as that for the interest rates. We Mortgage Debt Service assume that remaining maturities on other types of To calculate the mortgage debt service, we use mort- loans are fixed over time. gage debt as published by the Federal Reserve in its flow of funds accounts and the effective interest rate on outstanding mortgage debt as calculated by the Revolving Consumer Debt Service Bureau of Economic Analysis based on a perpetual inventory of mortgage loans. The remaining maturity We use revolving consumer debt as published by the equals the weighted average maturity on mortgage Federal Reserve in its G.19 Consumer Credit statistiloans in pools securitized by Fannie Mae, Freddie cal release. We assume that revolving debt is com- Mac, and other lenders. posed of credit card debt only, although other types of revolving debt are likely included.19 The assumed minimum required payment rate is 2Vi percent of the balance per month, based on the January 1999 Senior Nonrevolving Consumer Debt Service Loan Officer Opinion Survey, in which most banks indicated that required monthly minimum payments We use nonrevolving consumer debt as published by on credit cards ranged between 2 percent and 3 perthe Federal Reserve in its G.19 Consumer Credit cent and had not changed substantially over the previstatistical release. In general, this debt is split into ous decade. • loans for new automobiles, loans for used automobiles, student loans, mobile-home loans, RV and marine loans, and personal loans by applying shares of these loans estimated from survey data. The average interest rate on the stock of loans for 19. The largest type of revolving debt outside credit card debt is new automobiles is estimated by applying a distribu- likely the overdraft protection provided on many checking accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

427 Announcements FEDERAL OPEN MARKET COMMITTEE nanke have brought to the Board. They are exemplary public servants, with strong experience and STATEMENT sound judgment. The Board will benefit greatly from The Federal Open Market Committee decided on their continued service, upon their confirmation by September 16, 2003, to keep its target for the federal the Senate." funds rate at 1 percent. The Committee continues to believe that an accommodative stance of monetary policy, coupled with STATEMENT BY VICE CHAIRMAN ROGER W. robust underlying growth in productivity, is provid- FERGUSON, JR., ON NOMINATION TO SECOND ing important ongoing support to economic activity. TERM The evidence accumulated over the intermeeting "I am honored President Bush has announced his period confirms that spending is firming, although the intention to nominate me to serve another term as labor market has been weakening. Business pricing Vice Chairman of the Federal Reserve Board. I am power and increases in core consumer prices remain particularly mindful that the policy decisions of the muted. Federal Reserve influence the economic well-being The Committee perceives that the upside and of all Americans. I have been privileged to serve as downside risks to the attainment of sustainable part of this dedicated institution since 1997. I very growth for the next few quarters are roughly equal. In much look forward to continuing this work with contrast, the probability, though minor, of an unwel- Chairman Greenspan and my colleagues on the come fall in inflation exceeds that of a rise in infla- Board, upon my confirmation by the Senate." tion from its already low level. The Committee judges that, on balance, the risk of inflation becoming undesirably low remains the pre- STATEMENT BY GOVERNOR BEN S. BERNANKE dominant concern for the foreseeable future. In these ON NOMINATION TO FULL TERM circumstances, the Committee believes that policy accommodation can be maintained for a considerable "I am honored and grateful that President Bush has period. announced his intention to nominate me to a full term Voting for the FOMC monetary policy action were: on the Federal Reserve Board. I appreciate his con- Alan Greenspan, Chairman; Ben S. Bernanke; fidence. I'm very pleased to have the opportunity to Susan S. Bies; J. Alfred Broaddus, Jr.; Roger W. continue my work with Chairman Greenspan and my Ferguson, Jr.; Edward M. Gramlich; Jack Guynn; colleagues on the Board." Donald L. Kohn; Michael H. Moskow; Mark W. Olson; Robert T. Parry; and Jamie B. Stewart, Jr. RESULTS OF THE SHARED NATIONAL CREDIT REVIEW OF SYNDICATED BANK LOANS STATEMENT BY CHAIRMAN ALAN GREENSPAN The quality of large syndicated bank loans stabilized ON THE NOMINATIONS OF VICE CHAIRMAN this year, according to the Shared National Credit FERGUSON AND GOVERNOR BERNANKE (SNC)1 review released September 10, 2003, by fed- "I welcome the announcement that President Bush is NOTE. The charts, tables, and appendixes to this announcement are nominating Roger W. Ferguson, Jr., for a second term available at www.federalreserve.gov/boarddocs/press/bcreg/2003/ 20030910. as Vice Chairman and nominating Ben S. Bernanke 1. The Shared National Credit (SNC) Program was established in for a full term as a Governor of the Federal Reserve 1977 by the Board of Governors of the Federal Reserve System, the Board. Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, and in 2001 the Office of Thrift Supervision In making these nominations, the President affirms became an assisting agency. The annual program, which seeks to the many contributions Governors Ferguson and Ber- provide an efficient and consistent review and classification of large Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 Federal Reserve Bulletin • October 2003 eral bank regulators. However, regulators noted that nesses, including default in some cases, while special adversely rated loans remain at an elevated level mention loans exhibit potential weaknesses, which and will require continued vigilance. The results— may result in further deterioration if left uncorrected. reported by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, Overview and the Office of Thrift Supervision—are based on analyses that were prepared in the second quarter and In aggregate, the SNC program covered 8,232 credits reflect business and economic conditions at that time. totaling $1.6 trillion in loan commitments to 5,111 Total loan commitments2 classified as either borrowers in 2003. Total commitments were down substandard, doubtful, or loss fell $4.9 billion, or 20 percent from the 2001 peak of $2.0 trillion, driven 3 percent, over the previous year, compared with by lower customer demand, tighter underwriting stana net increase of $39.8 billion, or 34 percent, the dards, attractive capital market financing alternatives, year before. Commitments rated special mention and repositioning by banks to exit nonstrategic busidecreased $23.8 billion, or 30 percent, in contrast to ness lines and less-profitable customer relationships. 2002 when they grew $3.5 billion, or 4.6 percent. For the 2003 review, total loan commitments clas- None of these figures include the effects of hedging sified as substandard remained roughly even with or other techniques that individual organizations the previous year, while doubtful credits edged up might have employed to mitigate risk. $3.2 billion, or 12.3 percent. At the same time, com- The ratio of classified loans to total commitments mitments classified as loss remained elevated at rose to 9.3 percent, close to the previous peak in $10.7 billion, but were down 43.8 percent from the 1991, driven by a 12 percent decline in total commit- extraordinary level of the previous year. That decline ments. At the same time, total adversely rated credits in turn led to a fall in total classifieds of 3.2 percent. (classified and special mention combined) stabilized Although total classified commitments fell moderat 12.6 percent of total commitments. ately, the portion of outstanding classified loans not Adversely rated credits (also known as criticized accruing interest4 was unchanged from the previous credits) are the total of loans classified substandard, year, at $51.0 billion. doubtful, loss, and loans rated special mention. Under the agencies' Uniform Loan Classification Standards,3 classified loans have well-defined weak- Industry Trends syndicated loans, generally covers loans or loan commitments of at The quality of the SNC portfolio was mixed as least $20 million that are shared by three or more financial institutions, with a few exceptions. modest-to-strong improvements in the majority of 2. Loan commitments included both drawn and undrawn portions industry sectors were nearly offset by deterioration in of a loan or loan facility. the energy sector (oil, gas, pipelines, and utilities). In 3. Excerpt from SR Letter 79-556 defining regulatory total, improving industry segments more than offset classifications: deteriorating ones by $4.9 billion. The strongest Classification ratings are defined as "substandard," "doubtimprovement occurred in manufacturing, with an ful," and "loss." A substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or $18.2 billion decline in classified commitments of the collateral pledged, if any. Assets so classified must have a largely driven by loan repayments from a handful well-defined weakness or weaknesses that jeopardize the liquidaof substandard borrowers. Classifications in the teletion of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. An asset classified as doubtful has all the weakness weaknesses may result in deterioration of the repayment prosinherent in one classified as substandard with the added charac- pects for the asset or in the institution's credit position at some teristic that the weaknesses make the collection or liquidation in future date. Special mention assets are not adversely classified full, on the basis of currently existing facts, conditions, and and do not expose an institution to sufficient risk to warrant values, highly questionable and improbable. Assets classified as adverse classification. loss are considered uncollectible and of such little value that their 4. Non-accrual loans are defined for regulatory reporting purposes continuance as bankable assets is not warranted. This classificaas "loans and lease financing receivables that are required to be tion does not mean that the asset has absolutely no recovery or reported on a non-accrual basis because (a) they are maintained on a salvage value, but rather it is not practical or desirable to defer cash basis because of a deterioration in the financial position of the writing off this basically worthless asset even though partial borrower, (b) payment in full of interest or principal is not expected, recovery may be effected in the future. or (c) principal or interest has been in default for 90 days or longer, unless the obligation is both well secured and in the process of Excerpt from June 10, 1993, Interagency Statement on the Supercollection." Non-accrual classifieds are those funded or outstanding visory Definition of Special Mention Assets: portions of loans classified as substandard and doubtful that are not A special mention asset has potential weaknesses that deserve accruing interest. For 2003, this category consisted of $23.6 billion in management's close attention. If left uncorrected, these potential loans rated substandard and $27.4 billion rated doubtful. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 429 communication and cable segment fell $2.4 billion, cent at FBOs and 24.4 percent at nonbanks. Simibut remained at significantly elevated levels. Other larly, total non-accrual outstandings fell for U.S. segments, such as financial services and insurance, banks and rose for FBOs. However, despite a rise in showed modest declines, with classification rates that classified commitments, non-accrual outstandings for were below those for the entire SNC program. In nonbanks fell. contrast, the energy sector showed rapid deterioration To a great extent, the deteriorating trend in SNC with a $21.1 billion rise in classifieds, which were credit quality at FBOs is explained by their higher largely attributable to leveraged firms involved in share of riskier energy commitment holdings relative energy trading. In addition, the well-known problems to U.S. banks. Of the $21.1 billion increase in energy facing U.S. passenger airlines drove a $1.1 billion net commitments, $16.1 billion was attributable to FBOs, increase in classifieds for the lodging and transpor- resulting in a 23.5 percent classification rate in energy tation sector. Credits identified for special mention commitments. In contrast, U.S. banks experienced fell $23.8 billion with strong declines experienced a $2.9 billion increase, and a classification rate of in nearly every industry. These declines were driven 10.2 percent in energy commitments. At the same by a migration of a portion of special mention time, nonbank classifieds were up $2.1 billion, credits from the previous year to classified categories, amounting to 31.4 percent of energy commitments. as well as a decline in newly identified potential Notably, both FBOs and nonbanks increased their weaknesses. dollar holdings of energy commitments in 2002 and Despite a decline of 44 percent in loans identified only began reducing them in 2003, although U.S. in the loss classification, this year's level of losses, banks reduced their exposure in both 2002 and 2003. $10.7 billion, was the second highest on record. Of The increasing share held by nonbanks likely stems total losses, $5.0 billion, or 47 percent, were directly from the purchase of troubled loans in the secondary attributable to the weakened telecommunication and market at steep discounts. energy sectors, the Argentina default, and asbestos- The significantly higher classification rate for nonrelated litigation. The remaining losses were spread bank holdings is consistent with market observations widely across a variety of industries. In contrast, that nonbanks continue to be active participants in the during 2002 more than 60 percent of losses were subinvestment-grade portion of the syndicated loan attributable to the telecommunications and energy market and are active purchasers of distressed loans sectors. Nearly half of 2003 SNC classified commit- in the secondary markets at discounts to par value; all ments were related to the telecommunications and dollar amounts in this release are par amounts. energy sectors, compared with roughly one-third in 2002. Response by Banks Banking organizations have continued to remain vigi- Trends by Entity Type lant in identifying problem credits and have generally reflected the appropriate risk rating in their internal During 2003, the share of SNC commitments held by credit ratings. Although credit problems have stabinonbanks5 continued to grow, edging up 1 percentlized, banking organizations must continue to careage point, to 11 percent, although the share held by fully monitor the condition of their borrowers in the foreign banking organizations (FBOs) fell to 44 percurrent environment to ensure that they promptly cent and that held by U.S. banks6 held steady at identify and address any emerging weaknesses and 45 percent. U.S. banks experienced a 20 percent adjust levels of loan-loss allowances appropriately.7 decline in classified assets during 2003, compared with a rise of 5.5 percent at FBOs and a 6.0 percent rise at nonbanks. These disparate trends further differ- RELEASE OF DATE OF ISSUE FOR SERIES-2004 entiated the quality of holdings among entity types, $20 NOTE with classifieds amounting to just 5.8 percent of total commitments for U.S. banks, compared with 9.0 per- The U.S. government announced on September 9, 2003, that the first newly redesigned Series-2004 5. Nonbanks include independent investment brokerages, investment vehicles, and other institutional investors. 7. For further guidance, institutions should refer to the July 12, 6. To better reflect ultimate ownership, U.S. banks are defined to 1999, Joint Interagency Letter to Financial Institutions on the allowexclude U.S.-chartered subsidiaries of foreign banking organizations ance for loan losses, as well as the July 2, 2001, Interagency Policy for the years 2001 through 2003. These U.S. subsidiaries of FBOs are Statement on Allowance for Loan and Lease Losses (ALLL) Methodincluded in the FBO totals. ologies and Documentation for Banks and Savings Institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

430 Federal Reserve Bulletin • October 2003 $20 notes, featuring background colors and improved counterfeiting of currency easier and cheaper. In security features, will be issued on October 9. On the 1995, for example, less than 1 percent of counterfeit day of issue, the Federal Reserve System will begin notes detected in the United States was digitally distributing the new notes to the public through the produced. By 2002, that number had grown to nearly nation's commercial banks. "This is the most secure 40 percent, according to the U.S. Secret Service. note the U.S. government has ever produced," said Yet despite the efforts of counterfeiters, U.S. cur- Federal Reserve Board Governor Mark W. Olson. rency counterfeiting has been kept at low levels, with "Its enhanced security will help ensure that our cur- current estimates putting the level of counterfeit notes rency continues to represent value, trust, and confi- in circulation worldwide at about 1 to 2 notes in dence to people all over the world. It will co-circulate every 10,000 genuine notes. with older-design notes, and the public can rest assured that all U.S. notes will continue to be legal tender." The U.S. government launched a worldwide Security Features public education program last May when the new $20 design was unveiled, to create awareness among The new $20 design retains three important security the general public and to help banks and businesses features that were first introduced in the late 1990s prepare for the new $20 note. A wealth of train- and are easy for consumers and merchants alike to ing and informational materials, highlighted by an check: interactive demonstration of the bill's security features, is available to download or order through • The watermark—the faint image similar to the www.moneyfactory.com/newmoney. Since the Trea- large portrait, which is part of the paper itself and is sury's Bureau of Engraving and Printing (BEP) began visible from both sides when held up to the light. taking orders last May, more than 7,500 businesses • The security thread—also visible from both sides and organizations have ordered training materials. when held up to the light, this vertical strip of plastic The September 9 announcement of the October 9 is embedded in the paper. "USA TWENTY" and a date of issue signaled to banks and businesses that small flag are visible along the thread. they should make final preparations for the new • The color-shifting ink—the numeral "20" in the notes. lower-right corner on the face of the note changes "Our aim is the seamless introduction of the newly from copper to green when the note is tilted. The redesigned bills," said BEP Director Tom Ferguson. color shift is more dramatic and easier to see on the "To that end, the Bureau of Engraving and Printing new-design notes. has been working with the vending machine industry for more than a year to ensure that they have the Because these features are difficult for counterfeitinformation they need to make their equipment com- ers to reproduce well, they often do not try. Counterpatible with the newly redesigned bill by the time feiters are hoping that cash-handlers and the public it enters circulation on October 9. Additionally, we will not check their money closely. have been working with businesses and industry associations across the country to provide them with the materials they need to educate their employ- The New Color of Money ees on the new $20 note and its updated security features." The most noticeable difference in the notes is the subtle green, peach, and blue colors featured in the background. Different colors will be used for differ- Counterfeiting: Increasingly Digital ent denominations, which will help everyone— particularly those who are visually impaired—to tell To stay ahead of counterfeiters, the U.S. government denominations apart. plans to introduce new currency designs every seven Although consumers should not use color to check to ten years. The new design for the $20 note will be the authenticity of their currency (relying instead on followed by new designs for the $50 and $100 notes the user-friendly security features noted above), color over the next few years. Redesign of the $5 and does add complexity to the note, making counterfeit- $10 notes is under consideration, but there are no ing more difficult. plans to redesign the $1 and $2 notes. The new bills are the same size and use the same, Counterfeiters are increasingly turning to digital although enhanced, portrait of Andrew Jackson on methods, as advances in technology make digital the face of the note and historical vignette of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 431 White House on the back. The redesign also features solidated ABCP program assets in their tier 1 leversymbols of freedom—a blue eagle in the background age ratio calculation. to the left of the portrait and a metallic green eagle The NPR solicits comments on a permanent, riskand shield to the right of the portrait in the case of the sensitive, risk-based capital treatment for the risks $20 note. arising from ABCP programs. In particular, it proposes to permanently permit banking organizations to exclude from their risk-weighted asset base those REQUESTS FOR COMMENTS ON PROPOSED assets in ABCP programs consolidated on sponsoring RULEMAKING FOR RISK-BASED CAPITAL banking organizations' balance sheets as a result of FIN 46. In addition, the NPR also would require STANDARDS banking organizations to hold risk-based capital The federal bank and thrift regulatory agencies on against liquidity facilities provided to ABCP pro- September 12, 2003, requested public comment on grams with an original maturity of one year or less. an interim final rule and a notice of proposed rule- This treatment recognizes that such facilities, which making (NPR) to amend their risk-based capital stan- currently are not assessed a capital requirement, dards for the treatment of assets in asset-backed expose banking organizations to credit risk. commercial paper (ABCP) programs consolidated The agencies are also proposing a risk-based capiunder the recently issued Financial Accounting tal charge for certain types of securitizations of Standards Board Interpretation No. 46, Consolida- revolving retail credit facilities (for example, credit tion of Variable Interest Entities (FIN 46). The card receivables) that incorporate early amortization NPR would also modify the risk-based capital treat- provisions. The goal of these capital proposals is to ment of certain securitizations with early amortiza- more closely align the risk-based capital requiretion provisions. ments with the associated risk of the exposures. An ABCP program is usually carried out through a The interim final rule and NPR are being issued by bankruptcy-remote special purpose entity generally the Board of Governors of the Federal Reserve Syssponsored and administered by a banking organiza- tem, the Federal Deposit Insurance Corporation, the tion (banks, bank holding companies, and thrift insti- Office of the Comptroller of the Currency, and the tutions) to provide funding to its corporate customers Office of Thrift Supervision. by purchasing asset pools from, or extending loans to, those customers. The ABCP provides funding for these assets through the issuance of commercial paper in the market. These issuances may be credit NEW ONLINE APPLICATION GUIDE enhanced by various means, usually by a sponsoring FOR U.S. AND FOREIGN BANKING bank. ORGANIZATIONS Under the interim rule, sponsoring banking organizations may remove consolidated ABCP program An online guide for U.S. and foreign banking organiassets from their risk-weighted asset base for pur- zations submitting applications to the Federal poses of calculating their risk-based capital ratios. Reserve has been added to the Board of Governors' However, sponsoring banking organizations must public web site. continue to include any other exposures they have to The new web page, www.federalreserve.gov/ these programs, such as credit enhancements, in risk- generalinfo/applications/afi/, describes the regulatory weighted assets. The interim rule also amends the requirements and processing procedures for applicarisk-based capital standards to exclude from tier 1 tions, notifications, and requests necessary for a broad and total capital any minority interests in ABCP range of activities, including mergers of banking programs consolidated by sponsoring banking organi- organizations. zations under FIN 46. The interim rule will be in The site describes specific types of applications as effect only for the regulatory reporting periods end- well as the statutory factors considered by the Federal ing September 30, 2003, December 31, 2003, and Reserve in evaluating applications, including the March 31, 2004. banking organization's record of compliance with the The risk-based capital treatment set forth in the Community Reinvestment Act. It provides links to interim rule does not alter the accounting rules for application forms and lists contacts at each Reserve balance sheet consolidation as set forth under gener- Bank for questions regarding the submission of applially accepted accounting principles. Consequently, cations or the submission of public comments on banking organizations will be required to report con- applications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 Federal Reserve Bulletin • October 2003 RELEASE OF MINUTES OF BOARD'S DISCOUNT and between the Ridgedale State Bank, Minne- RATE MEETINGS tonka, Minnesota, and the Federal Reserve Bank of Minneapolis. The Federal Reserve Board on August 21, 2003, The Federal Reserve Board also announced the released the minutes of its discount rate meetings issuance of a cease and desist order against Robert C. from May 19, 2003, to June 25, 2003. Arneson, the president and a director of the Ridgedale State Bank, Minnetonka, Minnesota. These enforcement actions were issued in coordi- ENFORCEMENT ACTIONS nation with the U.S. Securities and Exchange Commission, which announced settlements with the The Federal Reserve Board on August 20, 2003, Ridgedale State Bank and Mr. Arneson for alleged announced the issuance of a consent order of assess- securities law violations. ment of a civil money penalty against the Community State Bank, Avilla, Indiana, a state member bank. The Federal Reserve Board on September 2, 2003, Community State Bank, without admitting to any announced the execution of a written agreement allegations, consented to the issuance of the order in by and among Gold Banc Corporation, Leawood, connection with its alleged violations of the Board's Kansas; the Gold Bank, Leawood, Kansas; the Office Regulations implementing the National Flood Insur- of the State Bank Commissioner; and the Federal ance Act. Reserve Bank of Kansas City. The order requires Community State Bank to pay a civil money penalty of $5,250, which will be remitted The Federal Reserve Board on September 11, 2003, to the Federal Emergency Management Agency for announced the issuance of a cease and desist order deposit into the National Flood Mitigation Fund. against Craig Van Stone, a former senior vice president, chief financial officer, and cashier of the Premier The Federal Reserve Board on August 20, 2003, Bank, Denver, Colorado, addressing Mr. Van Stone's announced the execution of an amendment to the compliance with the Bank Secrecy Act. written agreement by and among the Consolidated Bank and Trust Company, Richmond, Virginia, the Bureau of Financial Institutions of the Common- TERMINATION OF ENFORCEMENT ACTIONS wealth of Virginia, Richmond, Virginia, and the Federal Reserve Bank of Richmond. The Federal Reserve Board on September 15, 2003, announced the termination of the enforcement actions The Federal Reserve Board on August 27, 2003, listed below. The Federal Reserve's enforcement announced the issuance of a combined consent order action web site, http://www.federalreserve.gov/ to cease and desist and an order of assessment of a boarddocs/enforcement, reports the terminations as civil money penalty against WestLB AG, Dusseldorf, they occur. Germany, and its New York branch. The foreign bank, without admitting to any alle- • The PNC Financial Services Group, Inc., gations, consented to the issuance of the combined Pittsburgh, Pennsylvania order for violations of anti-tying restrictions in Written agreement dated July 12, 2002 section 106 of the Bank Holding Company Act Terminated September 12, 2003 Amendments of 1970 and related unsafe and unsound banking practices. The combined order resolves alle- • United Central Bank, Garland, Texas gations that in 2001, WestLB conditioned the avail- Cease and desist order dated October 26, 2000 ability or price of credit to corporate customers on the Terminated August 29, 2003 corporate customer's appointment of WestLB as an underwriter for issuances of debt securities. • ShoreBank Cleveland, Cleveland, Ohio The order requires that WestLB pay a civil money Written agreement dated August 21, 1998 penalty of $3 million and implement various policies Terminated August 21, 2003 and procedures designed to prevent future violations of this law. • Olathe Bancorporation, Inc., Olathe, Colorado, and Olathe State Bank, Olathe, Colorado The Federal Reserve Board on September 2, 2003, Written agreement dated September 12, 2000 announced the execution of a written agreement by Terminated July 11, 2003 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 433 • Allfirst Financial Inc., The Allfirst Bank, and public over time, especially in light of the widespread Allied Irish Banks, p.l.c. dissemination of data through the Internet. Written agreement dated May 15, 2002 A Bulletin editorial advisory board has been estab- Terminated February 24, 2003 lished under the direction of Lucretia Boyer, the Federal Reserve Board's Chief of Publications, to oversee the quality of content of these two publi- NEW SCHEDULE FOR THE FEDERAL RESERVE cations and to ensure a diverse range of Bulletin BULLETIN articles. Separate subscriptions for the two publications will The Federal Reserve Board on October 3, 2003, be available starting with the January 2004 issue of announced the move to a quarterly publication sched- the Statistical Supplement. For further subscription ule for the Federal Reserve Bulletin and the creation information, contact Publications Fulfillment at 202of a new monthly statistical supplement. 452-3244 or 202-452-3245 or send an e-mail to Beginning in the first quarter of 2004, the Bulletin publications-bog@frbog.frb.gov. will be enhanced and published four times a year. A Articles published in the Bulletin will remain availquarterly report on the condition of the banking sys- able online at www.federalreserve.gov/pubs/bulletin/ tem and an annual report on changes in consumer default.htm. regulations are among the new materials to be presented in the Bulletin. The Bulletin will continue to include topical research articles and summaries STAFF CHANGES of Board survey findings, the Board's semiannual Monetary Policy Reports, a Legal Developments sec- Donald J. Winn, Director of the Office of Board tion, and other features such as lists of staff members, Members and long-time congressional liaison for the lists of Federal Reserve publications, and maps of the Board died on August 14, 2003, after an extended Federal Reserve Districts. illness. Mr. Winn was a trusted adviser to four chair- The Legal Developments section of the quarterly men in his nearly thirty years at the Board. Bulletin will contain Board orders issued under the The Federal Reserve Board on September 10, Bank Holding Company Act, the Bank Merger Act, 2003, announced the appointment of Winthrop P. the Federal Reserve Act, and the International Bank- Hambley as Assistant to the Board and head of the ing Act. Final rules and pending cases involving the Congressional Liaison Office. Mr. Hambley, who had Board are available on the Board's web site under been Deputy Congressional Liaison, succeeded "Legal Developments" at www.federalreserve.gov/ Donald J. Winn. releases/h2/. Laricke Blanchard, who had served as Assistant The revised publication schedule responds to the Congressional Liaison since April 2002, was results of customer surveys, the increased use of the appointed an officer of the Board with the title Spe- Internet to access information on a timelier basis, and cial Assistant to the Board. the Board's desire to provide a broader range of The Board also announced the appointment of articles on topics of interest to Bulletin readers. A Michelle Andrews Smith as Director of the Office of quarterly schedule will also make the planning and Board Members, also succeeding Mr. Winn. The production of the Bulletin more efficient. Office of Board Members includes the Public Affairs The tables that now appear in the Financial and Office, the Publications Department, the Correspon- Business Statistics section of the Bulletin will be dence Unit, the Office of Congressional Liaison, and published monthly as a separate publication titled the administrative staff that supports Board members. Statistical Supplement to the Federal Reserve Bulle- Ms. Smith will continue as Assistant to the Board for tin. All tables that now appear in the Federal Reserve Public Affairs and, with her new position, will add Bulletin, including special tables, will appear in the responsibility for directing the internal management Statistical Supplement. All statistical series will be of the rest of the Office of Board Members. published with the same frequency that they have currently in the Bulletin. The first issue of the Statisti- Gary Gillum, a Senior Economist in the Division cal Supplement will be published in January 2004. of Monetary Affairs, retired on October 3 after more The Publications Committee will monitor the useful- than 39 years of service. • ness of this publication in meeting the needs of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

435 Legal Developments FINAL RULE—AMENDMENT TO REGULATION Z 2. Annual adjustment of $400 amount. The Board of Governors of the Federal Reserve System (Board) is amending 12 C.F.R. Part 226, the staff commenix. For 2004, $499, reflecting a 2.22 percent increase tary that interprets the requirements of Regulation Z (Truth in the CPI-U from June 2002 to June 2003, in Lending). The Board is required to adjust annually the dollar amount that triggers requirements for certain home rounded to the nearest whole dollar. mortgage loans bearing fees above a certain amount. The * * * t- * Home Ownership and Equity Protection Act of 1994 (HOEPA) sets forth rules for home-secured loans in which the total points and fees payable by the consumer at or before loan consummation exceed the greater of $400 or FINAL RULE—AMENDMENT TO REGULATION CC 8 percent of the total loan amount. In keeping with the statute, the Board has annually adjusted the $400 amount The Board of Governors is amending 12 C.F.R. Part 229, based on the annual percentage change reflected in the Appendix A of its Regulation CC (Availability of Funds Consumer Price Index that is in effect on June 1. The and Collection of Checks). The Board of Governors is adjusted dollar amount for 2004 is $499. amending Appendix A of Regulation CC to delete the reference to the Pittsburgh check processing office of the Effective January 1, 2004, 12 C.F.R. Part 226 is amended Federal Reserve Bank of Cleveland and reassign the Fedas follows: eral Reserve routing symbols currently listed under that office to the head office of the Federal Reserve Bank of Part 226—Truth in Lending (Regulation Z) Cleveland. These amendments reflect the restructuring of check processing operations within the Federal Reserve 1. The authority citation for Part 226 continues to read as System. The Board also is amending appendices A and E follows: of Regulation CC to replace all references to Thomson Financial Publishing Inc. with more general references to Authority: 12 U.S.C. 3806; 15 U.S.C. 1604 and "an agent of the American Bankers Association." 1637(c)(5). Effective November 1, 2003, 12 C.F.R. Part 229 is amended as follows: 2. In Supplement I to Part 226, under Section 226.32— Requirements for Certain Closed-End Home Mortages, under Paragraph 32(a)(l)(ii), paragraph 2. ix. is added. Part 229—Availability of Funds and Collection of Checks (Regulation CC) Supplement I to Part 226—Official Staff Interpretations 1. The authority citation for Part 229 continues to read as i{< >Ji # follows: Subpart E—Special Rules for Certain Home Authority: 12 U.S.C. 4001 et seq. Mortgage Transactions 2. The first sentence of A. and the Fourth Federal Reserve ^ ^ ^ ^ ^ District routing symbol list in Appendix A are revised to read as follows: Section 226.32—Requirements for Certain Closed-End Home Mortgages Appendix A to Part 229—Routing Number Guide to Next-Day Availability Checks and Local Checks. 32(a) Coverage A. Each bank is assigned a routing number by an agent of the American Bankers Association. * * * Paragraph 32(a)(l)(i ^ i ) % ^ ^ -t * * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

436 Federal Reserve Bulletin • October 2003 Fourth Federal Reserve District requested the Board's approval under section 3 to acquire [Federal Reserve Bank of Cleveland] indirectly all the voting shares of Panasia.1 Notice of the proposals, affording interested persons Head Office an opportunity to submit comments, has been published (68 Federal Register 14,658 and 17,808 (2003)). The time 0410 2410 for filing comments has expired, and the Board has con- 0412 2412 sidered the proposal in light of the factors set forth in 0430 2430 section 3 of the BHC Act. 0432 2432 WFH is a Korean financial holding company controlled 0433 2433 by the Korea Deposit Insurance Company ("KDIC").25 0434 2434 With total consolidated assets of $97 billion, WFH is the second largest banking organization in Korea.3 Woori, with Cincinnati Branch total consolidated assets of $74 billion, is WFH's lead 0420 2420 subsidiary bank and the third largest bank in Korea. In the 0421 2421 United States, Woori operates agencies in New York City 0422 2422 and Los Angeles. Woori America, with total assets of 0423 2423 $354 million, controls approximately $319 million in deposits, representing less than 1 percent of total deposits Columbus Office in insured depository institutions in the United States ("total U.S. insured deposits").4 Woori America operates 0440 2440 branches in New York and New Jersey.5 0441 2441 Panasia, with total assets of $213 million, controls 0442 2442 $187 million in deposits, representing less than 1 percent of total U.S. insured deposits. Panasia serves Korean- American communities in the New York City, Philadelphia, and Washington, D.C. metropolitan areas.6 3. Appendix E is amended by removing the phrase "Thomson Financial Publishing Inc." in sec- Interstate Analysis tions II.DD., XVIII.A.2.b.ii„ and XXII.B.2.b.i. and adding the phrase "an agent of the American Bankers Section 3(d) of the BHC Act allows the Board to approve Association" in its place. an application by a bank holding company to acquire control of a bank holding company or bank located in a state other than the home state of the applicant if certain conditions are met. For purposes of the BHC Act, the home ORDERS ISSUED UNDER BANK HOLDING state of WFH and Woori ("Applicants") is New York,26 and COMPANY ACT 1. Woori owns all of the capital stock of Woori America Bank, Orders Issued Under Section 3 of the Bank Holding New York, New York ("Woori America"), a state-chartered nonmem- Company Act ber bank. Under the proposal, Woori America would acquire all the voting shares of Panasia, and Panasia immediately would be merged with and into Woori America. The proposed merger has been Woori Finance Holdings Co., Ltd. approved by the Federal Deposit Insurance Corporation ("FDIC") Seoul, Korea pursuant to the Bank Merger Act, and the New York State Banking Department. 2. In 2002, the KDIC sold approximately 12 percent of the voting shares of WFH in a public offering, and it now owns approximately Woori Bank 88 percent of WFH. Under Korea's Financial Holding Companies Seoul, Korea Act, the KDIC is required to divest fully its ownership in WFH by the end of 2005. 3. Foreign asset and ranking data are as of December 31, 2002, and use exchange rates then in effect. Order Approving the Formation of a Bank Holding 4. Domestic asset data are as of March 31, 2003, and deposit data Company and the Acquisition of a Bank are as of December 31, 2002. Insured depository institutions include all insured banks, savings banks, and savings associations. 5. Woori America has its head office and two branches in Woori Finance Holdings Co., Ltd. ("WFH") has requested New York City and branches in Fort Lee and Ridgefield, New Jersey. the Board's approval under section 3 of the Bank Holding 6. Panasia, currently a subsidiary of National Penn Bancshares, Company Act ("BHC Act") (12 U.S.C. § 1842) to become Boyertown, Pennsylvania, operates offices in Fort Lee, Palisades Park, a bank holding company and acquire indirectly all the and Closter, New Jersey; Philadelphia and Cheltenham, Pennsylvania; voting shares of Panasia Bank, National Association, Fort and Annandale, Virginia. 7. A bank holding company's home state is the state in which the Lee, New Jersey ("Panasia"). Woori Bank ("Woori"), a total deposits of all banking subsidiaries of such company were the wholly owned subsidiary of WFH and a bank holding largest on July 1, 1966, or the date on which the company became a company within the meaning of the BHC Act, has also bank holding company, whichever is later. 12 U.S.C. § 1841(o)(4)(C). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 437 Panasia is located in New Jersey, Pennsylvania, and Vir- the public interest by the probable effects of the proposal in ginia.8 Based on a review of all the facts of record, includ- meeting the convenience and needs of the community to be ing a review of relevant federal and state statutes, the served.12 Board finds that all conditions for an interstate acquisition Woori America and Panasia compete directly in the enumerated in section 3(d) are met in this case.9 Accord- New York-New Jersey Metropolitan banking market ingly, the Board is permitted to approve the proposal under ("New York banking market").13 Consummation of the section 3(d) of the BHC Act. proposal would be consistent with the Department of Justice Merger Guidelines ("DOJ Guidelines") and Board Factors Under the Bank Holding Company Act policies and precedent.14 In light of all the facts of record, the Board concludes that consummation of the proposal The BHC Act sets forth the factors that the Board must would not have a significantly adverse effect on competiconsider when reviewing the formation of bank holding tion or on the concentration of banking resources in any companies or the acquisition of banks. These factors are relevant banking market, and that competitive considerthe competitive effects of the proposal in the relevant ations are consistent with approval.15 geographic markets; the convenience and needs of the communities to be served, including the records of perfor- Convenience and Needs Considerations mance of the insured depository institutions involved in the transaction under the Community Reinvestment Act The Board has carefully considered the effect of the pro- ("CRA");10 the financial and managerial resources and posal on the convenience and needs of the communities to future prospects of the companies and banks involved in be served in light of all the facts of record, including the the proposal; the availability of information to determine records of the relevant depository institutions under the and enforce compliance with the BHC Act and other CRA. As provided in the CRA, the Board evaluates the applicable federal banking laws; and, in the case of applica- record of an institution in light of examinations of the CRA tions involving a foreign bank such as Woori, whether the performance records of the institution by the appropriate foreign bank is subject to comprehensive supervision and federal supervisory agencies. An institution's most recent regulation on a consolidated basis by its home country CRA performance evaluation is a particularly important supervisor.11 consideration in the applications process because it repre- The Board has considered these factors in light of a sents a detailed, on-site evaluation of the institution's overrecord that includes information provided by Applicants, confidential supervisory and examination information, and 12. 12 U.S.C. § 1842(c)(1). publicly reported financial and other information. The 13. The New York banking market is defined as New York City; Board also has consulted with and considered information Bronx, Dutchess, Kings, Nassau, Orange, Putnam, Queens, Richprovided by the primary home country supervisor of mond, Rockland, Suffolk, Sullivan, Ulster, and Westchester Counties Woori. in New York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Warren, and a portion of Mercer Counties in New Jersey; Pike County in Competitive Considerations Pennsylvania; and Fairfield and portions of Litchfield and New Haven Counties in Connecticut. Section 3 of the BHC Act prohibits the Board from approv- 14. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a market is considered unconcentrated if the post-merger Herfindahling a proposal that would result in a monopoly or be in Hirschman Index ("HHI") is below 1000. The Department of Justice furtherance of a monopoly. The BHC Act also prohibits the has informed the Board that a bank merger or acquisition generally Board from approving a proposed bank acquisition that will not be challenged (in the absence of other factors indicating would substantially lessen competition in any relevant anticompetitive effects) unless the post-merger HHI is at least 1800 banking market unless the anticompetitive effects of the and the merger or acquisition increases the HHI by at least 200 points. The Department of Justice has stated that the higher than normal HHI proposal in that banking market are clearly outweighed in thresholds for screening bank mergers or acquisitions for anticompetitive effects implicitly recognize the competitive effects of limitedpurpose lenders and other nondepository financial institutions. 15. Woori America controls deposits of $296 million in the 8. For purposes of section 3(d), the Board considers a bank to be New York banking market, representing less than 1 percent of total located in the states in which the bank is chartered, headquartered, or deposits in depository institutions in the market ("market deposits"), operates a branch. and Panasia controls deposits of $141 million in the market. On 9. Applicants meet the capital and managerial requirements estab- consummation of the proposal, Woori America would be the lished under applicable law. 12 U.S.C. § 1842(d)(1)(A). On consum- 79th largest depository institution in the New York banking market, mation of the proposal, Applicants would control less than 10 percent controlling deposits of $437 million, representing less than 1 percent of total U.S. insured deposits and would not exceed applicable deposit of market deposits. The HHI would remain unchanged at 960 after limitations in any state as established under state and federal law. consummation of the proposal, and numerous competitors would 12 U.S.C. § 1842(d)(2). None of the relevant states specifies a mini- remain in the market. Deposit and market share data are as of June 30, mum period of time a bank to be acquired through an interstate 2002, and are based on calculations in which the deposits of thrift acquisition must have been in existence. 12 U.S.C. § 1842(d)(1)(B). institutions are included at 50 percent. The Board previously has All other requirements of section 3(d) of the BHC Act would be met indicated that thrift institutions have become, or have the potential to on consummation of the proposal. become, significant competitors of commercial banks. See Midwest 10. 12 U.S.C. §2901 et seq. Financial Group, 75 Federal Reserve Bulletin 386 (1989); National 11. 12 U.S.C. § 1842(c). City Corporation, 70 Federal Reserve Bulletin 743 (1984). 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438 Federal Reserve Bulletin • October 2003 all record of performance under the CRA by its appropriate Board has considered the following information. In early federal supervisor.16 1997, the Korean economy experienced difficulties in the The Board notes that Woori America and Panasia financial sector.21 To address these difficulties, the Korean received "satisfactory" ratings at their most recent CRA government took measures to reform the financial sector, performance examinations.17 Based on all the facts of including restructuring bank regulation and supervision record, the Board concludes that considerations relating to through the establishment of a new supervisory authority the convenience and needs of the communities to be served for Korean financial institutions, the Financial Supervisory are consistent with approval. Commission ("FSC"). The FSC is responsible for promulgating supervisory regulations, making policy decisions Financial, Managerial, and Other Supervisory Factors about supervision, and imposing sanctions on financial institutions. The Korean Financial Supervisory Service The BHC Act requires the Board to consider the financial ("FSS"), the executive body of the FSC, is responsible for and managerial resources and future prospects of the com- regulation and supervision of Korean financial institutions. panies and banks involved in an acquisition.18 In assessing The FSS has a broad range of supervisory and enforcement the financial and managerial strength of Applicants and the tools to carry out its supervisory functions. banks to be acquired, the Board has reviewed informa- In addition to restructuring the supervisory agencies, tion provided by Applicants, confidential supervisory and Korea has instituted several new requirements and prudenexamination information, and publicly reported and other tial limitations applicable to banks that are intended to financial information. In addition, the Board has consulted address gaps in the supervisory system that became evident relevant supervisory authorities in Korea.19 during and after the financial crisis in 1997. The changes In evaluating financial factors in expansion proposals by include a new asset quality assessment framework, tighter banking organizations, the Board consistently has consid- limitations on loans to a single borrower and to conglomerered capital adequacy to be especially important. Woori ates (including through trust accounts), limits on loans to a America is well capitalized and would remain so on con- shareholder that owns more than 10 percent of a financial summation of the proposal. The capital ratios of WFH and holding company or a bank, a prompt corrective action Woori would continue to exceed the minimum levels framework, measures to strengthen of capital requirements, required under the Basel Capital Accord and are consid- and improvements in accounting policies to bring them ered equivalent to the capital ratios that would be required more into accordance with international accounting stanof a U.S. banking organization. The Board notes that dards. the proposed transaction is relatively small and would be The FSS also has instituted restrictions on relationships financed by Woori with internally available funds. between Korean banks and their affiliates. Transactions The Board has reviewed supervisory information from between a bank and its subsidiaries must be on terms that the home country authorities responsible for supervising are fair and reasonable. In addition, Korean banks are Woori, as well as reports of examination from the appropri- generally prohibited from making a loan to any officer or ate federal and state supervisors of Woori America and the employee of the bank or of its subsidiaries. U.S. operations of Woori concerning the proposal and the Financial holding companies were introduced in Korea managerial resources of Applicants and Woori America. by legislation that became effective in 2000.22 Prior Based on all the facts of record, the Board concludes that the financial and managerial resources and future prospects 225.13(a)(4). Regulation K provides that a foreign bank will be considered to be subject to comprehensive supervision or regulation of Applicants, Woori America, and Panasia are consistent on a consolidated basis if the Board determines that the bank is with approval under section 3 of the BHC Act. supervised or regulated in such a manner that its home country Section 3 of the BHC Act also provides that the Board supervisor receives sufficient information on the worldwide operations may not approve an application involving a foreign bank of the bank, including its relationship to any affiliates, to assess the bank's overall financial condition and its compliance with law and unless the bank is subject to comprehensive supervision regulation. See 12 C.F.R. 211.24(c)(1). or regulation on a consolidated basis by the appropriate 21. In the aftermath of Korea's financial crisis, the Board deterauthorities in the bank's home country.20 In this light, the mined that the Korean authorities were actively working to establish a framework for consolidated supervision in connection with appli- 16. Interagency Questions and Answers Regarding Community cations to establish branches. Housing & Commercial, 83 Federal Reinvestment, 66 Federal Register 36,620 and 36,639 (2001). Reserve Bulletin 935 (1997), Kookmin Bank, 86 Federal Reserve 17. Woori America received a "satisfactory" CRA performance Bulletin 291 (2000) and 87 Federal Reserve Bulletin 786 (2001). As rating from the FDIC, as of November 1997; and Panasia received a noted below, there have been significant reforms of the Korean bank "satisfactory" CRA performance rating from the OCC, as of Septem- supervisory regime since 1997. The International Monetary Fund ber 2002. ("IMF") recently conducted a Financial System Stability Assessment 18. 12 U.S.C. § 1842(c)(2). for Korea in which it reviewed compliance by Korea with the Basel 19. The Korean Financial Supervisory Service has indicated that it Core Principles for Effective Banking Supervision. The IMF staff has no objection to the acquisition of Panasia by Applicants, and the concluded that the supervisory and regulatory regime for the financial proposal has been approved by Korea's Ministry of Finance and sector has been substantially strengthened, and recent reforms have Economy. helped achieve a high degree of observance of international standards 20. 12 U.S.C. § 1842(c)(3)(B). Under Regulation Y, the Board uses and codes. See IMF Country Report No. 03/81 (March 2003). the standards enumerated in Regulation K to determine whether a 22. A Korean financial holding company may only engage in foreign bank that has applied under section 3 of the BHC Act is activities through its subsidiaries, unless the activities concern the subject to consolidated home country supervision. See 12 C.F.R. management of those subsidiaries and related businesses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 439 approval from the FSS is required to establish a financial Woori also have committed to cooperate with the Board to holding company and before the company may invest in obtain any waivers or exemptions that may be necessary to subsidiaries. Supervision of financial holding companies enable WFH and its affiliates to make such information currently consists of consolidated reporting requirements available to the Board. In light of these commitments, the and annual examinations. Board concludes that WFH and Woori have provided ade- The FSS has primary responsibility for the supervision quate assurances of access to any appropriate information of WFH and Woori. The FSS conducts annual on-site that the Board may request. For these reasons, and based examinations of Woori, and targeted examinations when on all the facts of record, the Board concludes that the considered necessary. The examinations cover areas such supervisory factors it is required to consider under secas capital adequacy, liquidity, asset quality, and risk man- tion 3(c)(3) of the BHC Act are consistent with approval. agement processes. These examinations include a review of Woori's internal audit function and internal audit Conclusion reports. Woori's foreign branches and subsidiaries are also subject to on-site examination. Based on the foregoing and in light of all the facts of Woori is subject to extensive reporting requirements by record, the Board has determined that the applications the FSS, including information filed monthly, quarterly, should be, and hereby are, approved. In reaching this semiannually and annually. These reports include informa- conclusion, the Board has considered all the facts of record tion on overseas branches and subsidiaries. The FSS also in light of the factors that it is required to consider under reviews Woori's internal and external audit reports. the BHC Act and other applicable statutes. The Board's Under Korean law, banks are subject to limitations on approval is specifically conditioned on compliance by loans to one borrower or a group of borrowers under Applicants with all the representations and commitments common control. With respect to affiliate transactions, a made in connection with the applications, commitments bank is limited to an aggregate exposure to related parties referred to in this order, and the receipt of all other regulaof 20 percent of the bank's capital. tory approvals. These representations, commitments, and In addition, several other regulators oversee Korean conditions are deemed to be conditions imposed in writing banks, including Woori. The KDIC, the Bank of Korea, by the Board in connection with its findings and decision and the Korean Financial Intelligence Unit all have limited and, as such, may be enforced in proceedings under appliauthority to conduct special examinations of Korean finan- cable law. cial institutions. Korean financial supervisors, including The transaction shall not be consummated before the Korea's Securities and Futures Commission, share super- fifteenth calendar day after the effective date of this order, visory information about Korean financial institutions as and the proposal may not be consummated later than three appropriate. months after the effective date of this order, unless such Based on this finding and all the facts of record, the period is extended for good cause by the Board or by the Board concludes that Woori is subject to comprehensive Federal Reserve Bank of New York, acting pursuant to supervision on a consolidated basis by its home country delegated authority. supervisor.23 By order of the Board of Governors, effective August 4, In addition, section 3 of the BHC Act requires the Board 2003. to determine that a foreign bank has provided adequate assurances that it will make available to the Board such Voting for this action: Chairman Greenspan, Vice Chairman Ferguinformation on its operations and activities and those of its son, and Governors Bies, Olson, Bernanke, and Kohn. Absent and not affiliates that the Board deems appropriate to determine voting: Governor Gramlich. and enforce compliance with the BHC Act.24 The Board has reviewed the restrictions on disclosure in relevant ROBERT DEV. FRIERSON Deputy Secretary of the Board jurisdictions in which WFH and Woori have material operations and has communicated with relevant government authorities concerning access to information. In addition, WFH and Woori have committed to make available to Orders Issued Under Section 4 of the Bank Holding the Board such information on their operations and the Company Act operations of their affiliates that the Board deems necessary to determine and enforce compliance with the BHC Arvest Bank Group, Inc. Act, the IBA, and other applicable federal laws. WFH and Bentonville, Arkansas Order Approving the Acquisition of a Savings 23. The FSS also has supervisory authority with respect to WFH Association and its nonbanking subsidiaries. The FSS conducts inspections of WFH and its subsidiaries and requires WFH to submit reports about its operations on a consolidated basis. The FSS also may review Arvest Bank Group, Inc. ("Arvest"), a bank holding comtransactions between WFH and its subsidiaries and has authority to pany within the meaning of the Bank Holding Company require WFH to take measures necessary to ensure the safety and Act ("BHC Act") has requested the Board's approval soundness of the WFH organization. 24. 12 U.S.C. § 1842(c)(3)(A). under section 4(c)(8) and 4(j) of the BHC Act (12 U.S.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 Federal Reserve Bulletin • October 2003 § 1843(c)(8) and 1843(j)) and section 225.24 of the ties of Superior to those permissible under section 4(c)(8) Board's Regulation Y (12 C.F.R. 225.24) to acquire Supe- of the BHC Act and Regulation Y. In addition, the Board rior Financial Corp., Little Rock ("Superior"), and its has determined that extending credit, providing securities wholly owned subsidiary, Superior Federal Bank, FSB, brokerage services, providing credit insurance, and provid- Fort Smith ("Thrift"), both in Arkansas. Arvest would ing general insurance in a town with a population of 5000 thereby engage in operating a savings association. Arvest or less are activities that are closely related to banking.5 als9 proposes to acquire the nondepository subsidiaries of Arvest has committed to conduct each of the activities in Superior and engage in a variety of nonbanking activities accordance with the Board's regulations and orders govin accordance with the BHC Act and applicable Board erning them. regulations.1 In reviewing the proposal, the Board is required by Notice of the proposal, affording interested persons an section 4(j)(2)(A) of the BHC Act to determine that the opportunity to comment, has been published in the Federal acquisition of Superior and Thrift by Arvest "can reason- Register (68 Federal Register 39,952 (2003)). The time for ably be expected to produce benefits to the public . . . that filing comments has expired, and the Board has considered outweigh possible adverse effects, such as undue concenthe notice and all comments received in light of the factors tration of resources, decreased or unfair competition, conset forth in section 4 of the BHC Act. flicts of interests, or unsound banking practices." 6 As part Arvest, with total assets of $4.9 billion, operates deposi- of its evaluation of a proposal under these public interest tory institutions in Arkansas, Missouri, and Oklahoma.2 factors, the Board reviews the financial and managerial Arvest is the second largest depository organization in resources of the companies involved, the effect of the Arkansas, controlling deposits of $2.3 billion, representing proposal on competition in the relevant markets, the record 6.5 percent of total deposits of insured depository institu- of the relevant insured depository institutions under the tions in the state ("state deposits").3 Arvest is the seventh Community Reinvestment Act (12 U.S.C. §2901 et seq.) largest depository organization in Oklahoma, controlling ("CRA"), and other public interest factors. deposits of $1.6 billion, representing 4 percent of state deposits. Financial and Managerial Considerations Superior operates depository institutions in Arkansas and Oklahoma. Superior is the eighth largest depository The Board has carefully reviewed the financial and manaorganization in Arkansas, controlling deposits of gerial resources of the institutions involved. The Board has $875.4 million, representing 2.5 percent of state deposits. considered, among other things, confidential reports of In Oklahoma, Superior is the twentieth largest depository examination and supervisory information from their priorganization, controlling deposits of $323.1 million, repre- mary federal supervisors that assess the financial and manasenting less than 1 percent of state deposits. gerial resources of the organizations, and information from On consummation of the proposal, Arvest would remain Arvest. The Board notes that Arvest is and will remain well the second largest depository organization in Arkansas, capitalized on consummation of the proposal. Based on all controlling deposits of $3.2 billion, representing 9 percent the facts of record, the Board concludes that the financial of state deposits, and would become the sixth largest and managerial resources of the institutions involved are depository organization in Oklahoma, controlling deposits consistent with approval of the proposal. of $2 billion, representing 4.8 percent of state deposits. The Board previously has determined by regulation that Competitive Considerations the operation of a savings association by a bank holding company is closely related to banking for purposes of As part of the its consideration of the public interest factors section 4(c)(8) of the BHC Act.4 The Board requires that under section 4 of the BHC Act, the Board has considered savings associations acquired by bank holding companies carefully the competitive effects of the proposal in light conform their direct and indirect activities to those permis- of all the facts of record.7 Arvest and Superior compete sible for bank holding companies under section 4 of the directly in five banking markets.8 The Board has reviewed BHC Act. Arvest has committed to conform all the activi- carefully the competitive effects of the proposal in each of these banking markets in light of all the facts of record, including the number of competitors that would remain in 1. Arvest would acquire Superior Finance Company, Superior the market, the relative share of total deposits in depository Financial Services, Inc., and Southwest Protective Life Insurance Company, all in Fort Smith, and Superior Insurance Services, Paris, institutions in the market ("market deposits") that Arvest Arkansas. These subsidiaries engage in the following nonbanking would control,9 the concentration level of market deposits activities: extending credit, providing securities brokerage services, providing credit insurance, and providing insurance agency activities in a town with a population of 5000 or less pursuant to sec- 5. 12 C.F.R. 225.28(b)(1), (7)(i), (ll)(i), and (ll)(iii). tions 225.28(b)(1), (7)(i), (ll)(i), and (ll)(iii) of Regulation Y 6. 12 U.S.C. § 1843(j)(2)(A). (12 C.F.R. 225.28(b)(1), (7)(i), (ll)(i), and (ll)(iii)). 7. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 2. Asset data are as of March 31, 2003. (1991). 3. Deposit and market share data are as of June 30, 2002. In this 8. The markets are described in Appendix A. context, depository institutions include commercial banks, savings 9. Market share data are based on calculations in which the deposbanks, and savings associations. its of thrift institutions are included at 50 percent before consumma- 4. 12 C.F.R. 225.28(b)(4)(ii). tion. The Board has previously indicated that thrift institutions have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 441 and the increase in this level as measured by the To the extent that Arvest and Superior offer different types Herfindahl-Hirschman Index ("HHI") under the Depart- of nonbanking products or services, the proposal would ment of Justice Merger Guidelines ("DOJ Merger Guide- not result in a significant loss of competition. Arvest and lines"),10 and other characteristics of the markets. Superior compete directly in providing insurance agency Consummation of the proposal would be consistent with and securities brokerage services. The markets for these the DOJ Guidelines in all five banking markets. After nonbanking activities are regional or national in scope and consummation of the proposal, four of these markets would are unconcentrated. The record in this case also indicates remain moderately concentrated as measured by the HHI.11 that there are numerous providers of these services. Based The Fayetteville/Springdale banking market, however, is on all the facts of record, the Board concludes that consumhighly concentrated. Arvest is the largest depository orga- mation of the proposal would have a de minimis effect on nization in the market, controlling approximately $1.9 bil- competition for these nonbanking activities. lion in deposits, representing 42.2 percent of market deposits. Superior is the twentieth largest depository organization CRA Record of Performance in the market, controlling deposits of $16.6 million, representing less than 1 percent of market deposits. On consum- In acting on notices to acquire a savings association, the mation of the proposal, Arvest would remain the largest Board also reviews the records of performance of the depository organization in the market, controlling depos- relevant insured depository institutions under the CRA.12 its of $1.9 billion, representing 42.8 percent of market The CRA requires the federal supervisory agencies to deposits. encourage financial institutions to help meet the credit The HHI would increase 48 points to 2073 in the needs of local communities in which they operate, consis- Fayetteville/Springdale banking market, consistent with the tent with their safe and sound operation, and requires the DOJ Guidelines. In addition, 20 other depository institu- appropriate federal financial supervisory agency to take tions would remain in the market, and factors indicate that into account an institution's record of meeting the credit the Fayetteville/Springdale market is attractive for entry. needs of its entire community, including low- and Since 1997, the Fayetteville-Springdale metropolitan sta- moderate-income neighborhoods, in evaluating bank tistical area ("MSA") has had the highest annual average expansionary proposals. rates of increase in population and per-capita income of Arvest's only subsidiary insured depository institution, any MSA in Arkansas. Two commercial banks have also Arvest Bank, Fayetteville, Arkansas, received a "satisfacentered the market de novo since 2000. tory" rating at its most recent CRA performance evalua- Based on all the facts of record, the Board concludes that tion by the Federal Reserve Bank of St. Louis, as of consummation of the proposal would not result in any September 2002. Thrift received a "satisfactory" rating at significantly adverse effects on competition or on the con- its most recent CRA performance evaluation by the Office centration of banking resources in the Fayetteville/ of Thrift Supervision, as of January 2001. Based on all the Springdale banking market or in any other relevant bank- facts of record, the Board concludes that the CRA perforing market. mance records of the institutions involved are consistent The Board also has considered the effects of the pro- with approval of the proposal. posed transaction on competition for nonbanking activities. Other Considerations become, or have the potential to become, significant competitors of As part of its evaluation of the public interest factors, the commercial banks. See, e.g., Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Board also has reviewed carefully the public benefits and Reserve Bulletin 743 (1984). Thus, the Board regularly has included possible adverse effects of the proposal. The record indithrift deposits in the calculation of market share on a 50 percent cates that consummation of the proposal would result in weighted basis. Because Superior's deposits are being acquired by a benefits to consumers and businesses currently served by commercial banking organization, they are included at 100 percent in Superior. Superior's consumer and commercial customers the calculation of Arvest's post-consummation share of market deposits. See Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); would have access to Arvest's expanded lines of products First Banks, Inc., 76 Federal Reserve Bulletin 669 (1990). and services. The Board notes that there are also public 10. Under these guidelines, 49 Federal Register 26,823 (1984), a benefits to be derived from allowing capital markets to market is considered moderately concentrated if the post-merger HHI operate so that bank holding companies can make potenis between 1000 and 1800 and highly concentrated if the post-merger HHI is more than 1800. The Department of Justice has informed the tially profitable investments in nonbanking companies and Board that a bank merger or acquisition generally will not be chal- from permitting banking organizations to allocate their lenged (in the absence of other factors indicating anticompetitive resources in the manner they consider to be most efficient effects) unless the post-merger HHI is at least 1800 and the merger when such investments and actions are consistent, as in this increases the HHI by more than 200 points. The Department of Justice case, with the relevant considerations under the BHC Act.13 has stated that the higher than normal thresholds for an increase in the HHI when screening bank mergers and acquisitions for anticompetitive effects implicitly recognize the competitive effects of limited- 12. See, e.g., Citigroup Inc., 88 Federal Reserve Bulletin 485 purpose and other nondepository financial entities. (2002); Banc One Corporation, 83 Federal Reserve Bulletin 602 11. These markets and the competitive effects of the proposal on (1997). the concentration of banking resources in the markets are described in 13. See BB&T Corporation, 87 Federal Reserve Bulletin 545 Appendix B. (2001). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 Federal Reserve Bulletin • October 2003 Based on the foregoing and all the facts of record, the Harrison Board has determined that consummation of the proposal can reasonably be expected to produce public benefits that Boone, Marion, Newton, and Searcy Counties. would outweigh any potential adverse effects under the standard of review set forth in section 4(j)(2) of the BHC Little Rock Act. Pulaski and Saline Counties; the townships of Magness, Ward, Caroline, York, Oak Grove, and Butler in Lonoke County; and the townships of El Paso, Royal, and Union in Conclusion White County. Based on the foregoing, the Board has determined that the Oklahoma proposal should be, and hereby is, approved. The Board's approval is specifically conditioned on compliance by Tulsa Arvest with all the commitments made in connection with the notice. The Board's determination also is subject to all The Tulsa Ranally Metro Area; Mayes County, excluding the conditions in Regulation Y, including those in sec- the towns of Disney, Langley, Pensacola, and Spavinaw; tions 225.7 and 225.25(c) (12 C.F.R. 225.7 and 225.25(c)), and the northern half of Okmulgee County, including the and to the Board's authority to require such modification or towns of Okmulgee, Beggs, and Morris. termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to ensure compliance with, or to prevent evasion of, the provisions Appendix B and purposes of the BHC Act and the Board's regulations and orders issued thereunder. The commitments and condi- Certain Banking Markets in which Arvest and Superior tions relied on by the Board in reaching this decision are Compete conditions imposed in writing by the Board in connection with its findings and decision and, as such, may be enforced in proceedings under applicable law. Arkansas The transaction may not be consummated later than Fort Smith (AR-OK) three months after the effective date of this order, unless such period is extended for good cause by the Board or the Arvest is the fourteenth largest depository organization Federal Reserve Bank of St. Louis, acting pursuant to in the market, controlling deposits of approximately delegated authority. $63.5 million, representing 2.2 percent of market deposits. By order of the Board of Governors, effective August 22, Superior is the fourth largest depository organization in the 2003. market, controlling deposits of $164.6 million, representing 5.8 percent of market deposits. On consummation of Voting for this action: Vice Chairman Ferguson and Governors the proposal, Arvest would become the third largest deposi- Gramlich, Bies, Olson, Bernanke, and Kohn. Absent and not voting: tory organization in the market, controlling deposits of Chairman Greenspan. approximately $392.7 million, representing 13 percent of market deposits. The HHI would not increase. ROBERT DEV. FRIERSON Deputy Secretary of the Board Harrison Arvest is the third largest depository organization in the market, controlling deposits of approximately $129 mil- Appendix A lion, representing 16.7 percent of market deposits. Superior is the eleventh largest depository organization in the Banking Markets in which Arvest and Superior market, controlling deposits of $9.8 million, representing Compete Directly 1.3 percent of market deposits. On consummation of the proposal, Arvest would become the largest depository Arkansas organization in the market, controlling deposits of approximately $148.7 million, representing 19 percent of market deposits. The HHI would increase by 54 points to 1370. Fayetteville-Springdale Benton, Madison, and Washington Counties. Little Rock Arvest is the eleventh largest depository organization in the Fort Smith (AR-OK) market, controlling deposits of approximately $161.3 mil- Crawford and Sebastian Counties and the city of Mansfield lion, representing 2.5 percent of market deposits. Superior in Arkansas, and Sequoyah County and the northern half of is the thirteenth largest depository organization in the mar- LeFlore County in Oklahoma. ket, controlling deposits of $156.1 million, representing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 443 2.5 percent of market deposits. On consummation of the CKWB's name.3 CKWB had branches in New York, New proposal, Arvest would become the fifth largest depository York, and Los Angeles, California, and substantially all the organization in the market, controlling deposits of approxi- assets and liabilities of these branches have been transmately $473.4 million, representing 7.3 percent of market ferred to Bank as part of the reorganization.4 On Novemdeposits. The HHI would not increase. ber 4, 2002, the Federal Reserve System granted Bank's request to proceed with the acquisition of the banking Oklahoma business of CKWB before final action on Bank's application to establish offices in the United States.5 Tulsa As discussed above, Bank conducts business as CITIC Ka Wah Bank Limited and is a wholly owned subsidiary of Arvest is the fifth largest depository organization in the CITIC FHC. China International Trust & Investment Cormarket, controlling deposits of approximately $535 milporation ("CITIC"), Beijing, People's Republic of China, lion, representing 5 percent of market deposits. Superior is a state-owned enterprise, holds 55 percent of the shares the thirty-ninth largest depository organization in the marof CITIC FHC, and no other shareholder holds more than ket, controlling deposits of $29.7 million, representing less 5 percent.of the shares. CITIC's business is predominantly than 1 percent of market deposits. On consummation of the financial in nature, including investments in two commerproposal, Arvest would remain the fifth largest depository cial banks, a securities firm, trust and leasing companies, organization in the market, controlling deposits of approxiand an insurance company, and it also has investments in mately $594.5 million, representing 5.6 percent of market industrial and nonfinancial services companies.6 deposits. The HHI would not increase. Bank's New York branch engages in commercial and retail lending, wholesale deposit services, loan participations and syndications, funds transfer and remittance ser- ORDERS ISSUED UNDER INTERNATIONAL vices, trade financing, foreign exchange and money market BANKING ACT trading, domestic and international bank facilities, and safe deposit box services. The Los Angeles branch engages in CITIC Ka Wah Bank Limited lending and other financing activities, but only takes depos- Hong Kong Special Administrative Region its permitted for a corporation organized under section 25 A People's Republic of China of the Federal Reserve Act (12 U.S.C. §611 et seq.). In order to approve an application by a foreign bank to Order Approving Establishment of Branches establish a branch in the United States, the IBA and Regulation K require the Board to determine that the foreign CITIC Ka Wah Bank Limited ("Bank"),1 Hong Kong bank applicant engages directly in the business of banking S.A.R., the People's Republic of China, a foreign bank outside of the United States and has furnished to the Board within the meaning of the International Banking Act the information it needs to assess the application ade- ("IBA"), has applied under section 7(d) of the IBA quately. The Board also shall take into account whether the (12 U.S.C. § 3105(d)) to establish branches in New York, foreign bank and any foreign bank parent is subject to New York, and Los Angeles, California. The Foreign Bank comprehensive supervision or regulation on a consolidated Supervision Enhancement Act of 1991, which amended the basis by its home country supervisor (12 U.S.C. IBA, provides that a foreign bank must obtain the approval § 3105(d)(2); 12 C.F.R. 211.24).7 The Board may also take of the Board to establish a branch in the United States. Notice of the application, affording interested persons an 3. CKWB became a financial holding company over Bank and was opportunity to comment, has been published in newspapers renamed CITIC International Financial Holdings Limited ("CITIC of general circulation in New York, New York (New York FHC"). 4. Bank could not retain the FDIC-insured status of CKWB's Post, August 23, 2002, and November 11, 2002), and New York branch after the transfer. Accordingly, the insured deposits Los Angeles, California (Pasadena Star-News, August 26, at CKWB's New York branch were not transferred to Bank's 2002). The time for filing comments has expired, and all New York branch. comments have been considered. 5. Prior Board approval generally is required for the establishment Bank, with total assets of $9.3 billion,2 engages prima- of branches by foreign banks. Regulation K provides that "to establish" an office means, among other things, to acquire directly, through rily in commercial and retail banking in Hong Kong. In merger, consolidation, or similar transaction with another foreign January 2002, all of Bank's shares were acquired by CITIC bank, the operations of an office that is open and conducting business. Ka Wah Bank Limited ("CKWB"), Hong Kong, S.A.R., 12 C.F.R. §211.21(k). The regulation further provides that under the People's Republic of China. Under an internal reorgani- certain circumstances, a branch may be established through merger, zation in November 2002, CKWB transferred substantially consolidation, or similar transaction before receiving Board approval. 12 C.F.R. §211.24(a)(6). all its banking business to Bank, and Bank assumed 6. CITIC is a qualifying foreign banking organization within the meaning of Regulation K (12 C.F.R. §211.23). 7 In assessing this standard, the Board considers, among other 1 Bank, formerly known as The Hongkong Chinese Bank Limited, factors, the extent to which the home country supervisors: (i) ensure assumed the name of its former parent bank after filing the application that the bank has adequate procedures for monitoring and controlling and now conducts business as CITIC Ka Wah Bank Limited. its activities worldwide; (ii) obtain information on the condition of the 2. Asset data are as of December 31, 2002. bank and its subsidiaries and offices through regular examination Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

444 Federal Reserve Bulletin • October 2003 into account additional standards as set forth in the IBA Hong Kong is a member of the Financial Action Task and Regulation K (12 U.S.C. §3105(d)(3)-(4); 12 C.F.R. Force and subscribes to its recommendations on measures 211.24(c)(2)-(3)). to combat money laundering. In accordance with these The IBA includes a limited exception to the general recommendations, Hong Kong has enacted laws and crerequirement relating to comprehensive, consolidated super- ated legislative and regulatory standards to deter money vision (12 U.S.C. §3105(d)(6)). This exception provides laundering. Money laundering is a criminal offense in that if the Board is unable to find that a foreign bank Hong Kong, and financial institutions are required to estabseeking to establish a branch, agency, or commercial lend- lish internal policies, procedures, and systems for the ing company is subject to comprehensive supervision or detection and prevention of money laundering throughout regulation on a consolidated basis by the appropriate their worldwide operations. Bank has policies and proceauthorities in its home country, the Board may nevertheless dures to comply with these laws and regulations. Bank's approve the application if: (i) the appropriate authorities in compliance with applicable laws and regulations is monithe home country of the foreign bank are actively working tored by the HKMA and Bank's internal and external to establish arrangements for the consolidated supervision auditors. of such bank; and (ii) all other factors are consistent with Based on all the facts of record, it has been determined approval (12 U.S.C. §3105(d)(6)(A)). In deciding whether that Bank's home jurisdiction supervisory authority is to exercise its discretion to approve an application under actively working, in conjunction with the relevant superauthority of this exception, the Board shall also consider visory authorities of the People's Republic of China, to whether the foreign bank has adopted and implemented establish arrangements for the consolidated supervision of procedures to combat money laundering. The Board also Bank, and that considerations relating to the steps taken by may take into account whether the home country of the Bank and its home jurisdiction to combat money launderforeign bank is developing a legal regime to address money ing are consistent with approval under this standard.9 laundering or is participating in multilateral efforts to com- The additional standards set forth in section 7 of the bat it (12 U.S.C. §3105(d)(6)(B)). IBA and Regulation K {see 12 U.S.C. §3105(d)(3)-(4); As noted above, Bank engages directly in the business of 12 C.F.R. 211.24(c)(2)-(3)) have also been taken into banking outside the United States. Bank also has provided account. The HKMA has no objection to the establishment the Board with information necessary to assess the applica- of the proposed branches. tion through submissions that address the relevant issues. Hong Kong's risk-based capital standards are consistent With respect to supervision by home country authorities, with those established by the Basel Capital Accord. Bank's the Board previously has determined, in connection with capital is in excess of the minimum levels that would be applications involving other banks in Hong Kong, that required by the Accord and is considered equivalent to those banks were subject to comprehensive supervision on capital that would be required of a U.S. banking organizaa consolidated basis by the Hong Kong Monetary Author- tion. Managerial and other financial resources of Bank also ity ("HKMA"), the principal supervisory authority of are considered consistent with approval, and Bank appears banks in Hong Kong.8 Bank is supervised by the HKMA to have the experience and capacity to support the proon substantially the same terms and conditions as those posed branches. In addition, Bank has established controls other banks. In this case, however, Bank is part of a large and procedures for the proposed branches to ensure complifinancial group headquartered in the People's Republic of ance with U.S. law, as well as controls and procedures for China. This group, headed by Bank's ultimate parent, its worldwide operations generally. CITIC, includes a bank in the People's Republic of China. With respect to access to information about Bank's Although the HKMA has authority to limit transactions by operations, the restrictions on disclosure in relevant juris- Bank with its affiliates and to obtain information from dictions in which Bank operates have been reviewed and them, the HKMA does not have supervisory responsibility relevant government authorities have been communicated for CITIC. with regarding access to information. Bank and its ultimate parent have committed to make available to the Board such information on the operations of Bank and any of its affiliates that the Board deems necessary to determine and reports, audit reports, or otherwise; (iii) obtain information on the enforce compliance with the IBA, the Bank Holding Comdealings with and relationship between the bank and its affiliates, pany Act, and other applicable federal law. To the extent both foreign and domestic; (iv) receive from the bank financial that the provision of such information to the Board may be reports that are consolidated on a worldwide basis or comparable information that permits analysis of the bank's financial condition prohibited by law or otherwise, Bank and its ultimate on a worldwide consolidated basis; (v) evaluate prudential standards, parent have committed to cooperate with the Board to such as capital adequacy and risk asset exposure, on a worldwide obtain any necessary consents or waivers that might be basis. These are indicia of comprehensive, consolidated supervision. required from third parties for disclosure of such informa- No single factor is essential, and other elements may inform the Board's determination. 8. See Bank of East Asia, Ltd., 84 Federal Reser\'e Bulletin 886 9. In reaching this view, the oversight of Bank's parent companies (1998); Hong Kong and Shanghai Banking Co., 81 Federal Resetre has been considered. Financial holding companies in Hong Kong are Bulletin 902 (1995); Liu Chong Hing Bank, Ltd., 81 Federal Reserve subject to the supervision of the HKMA and, accordingly, the HKMA Bulletin 905 (1995); Dah Sing Bank, Ltd,, 80 Federal Reserve Bulletin supervises CITIC FHC. The Hong Kong Banking Ordinance also 182 (1994). contains restrictions on transactions with affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 445 tion. In addition, subject to certain conditions, the HKMA activities in the United States. Approval of this application may share information on Bank's operations with other also is specifically conditioned on compliance by Bank and supervisors, including the Board. In light of these commit- its ultimate parent with the commitments made in connecments and other facts of record, and subject to the condi- tion with this application and with the conditions in this tion described below, it has been determined that Bank has order.11 The commitments and conditions referred to above provided adequate assurances of access to any necessary are conditions imposed in writing in connection with this information that the Board may request. decision and may be enforced in proceedings under On the basis of all the facts of record, and subject to the 12 U.S.C. § 1818 against Bank and its affiliates. commitments made by Bank and its ultimate parent, as By order, approved pursuant to authority delegated by well as the terms and conditions set forth in this order, the Board, effective August 6, 2003. Bank's application to establish branches is hereby approved.10 Should any restrictions on access to informa- ROBERT DEV. FRIERSON tion on the operations or activities of Bank and its affiliates Deputy Secretary of the Board subsequently interfere with the Board's ability to obtain information to determine and enforce compliance by Bank or its affiliates with applicable federal statutes, the Board 11. The Board's authority to approve the establishment of the may require termination of any of Bank's direct or indirect proposed branches parallels the continuing authority of the Office of the Comptroller of the Currency to license offices of a foreign bank. The Board's approval of this application does not supplant the author- 10. Approved by the Director of the Division of Banking Supervi- ity of the Office of the Comptroller of the Currency to license the sion and Regulation, with the concurrence of the General Counsel, proposed offices of Bank in accordance with any terms or conditions pursuant to authority delegated by the Board. that it may impose. INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM— (April 1, 2003-June 30, 2003) Bulletin Volume Applicant Merged or Acquired Bank of Activity Date of Approval and Page BB&T Corporation, First Virginia Banks, Inc., May 13, 2003 89, 335 Winston-Salem, North Carolina Falls Church, Virginia First Virginia Bank, Falls Church, Virginia Charles Schwab Corporation, Charles Schwab Bank, National April 7, 2003 89, 300 San Francisco, California Association, Reno, Nevada HSH Nordbank Aktiengesellschaft, To establish a branch in New York, May 30, 2003 89, 344 Hamburg/Kiel, Germany New York The Royal Bank of Scotland Group pic, Port Financial Corp., June 30, 2003 89, 386 Edinburg, Scotland Brighton, Massachusetts The Royal Bank of Scotland pic, Cambridge Bancorp, Edinburg, Scotland Cambridge, Massachusetts RBSG International Holdings Ltd., Cambridge Trust Company, Edinburgh, Scotland Cambridge, Massachusetts Citizens Financial Group, Inc., Cambridge Trust Company, Providence, Rhode Island Cambridge Massachusetts Union Bank of Israel Ltd., To establish a representative office in April 10, 2003 89, 302 Tel Aviv, Israel New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 Federal Reserve Bulletin • October 2003 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Applicant(s) Bank(s) Reserve Bank Effective Date Alpha Financial Group, Inc. Alpha Financial Group, Inc., Chicago July 31, 2003 Employee Stock Ownership Plan, Toluca, Illinois Toluca, Illinois Alpha Community Bank, Toluca, Illinois Arthur Financial Corporation, Arthur State Bank, Richmond August 22,2003 Union, South Carolina Union, South Carolina Blackhawk Bancorp, Inc., DunC Corp., Chicago August 5,2003 Beloit, Wisconsin Rockford, Illinois First Bank, be, Capron, Illinois Campbell Hill Bancshares, Inc., Southwest Illinois Bancshares, Inc., St. Louis August 27, 2003 Campbell Hill, Illinois Coulterville, Illinois The First National Bank of Coulterville, Coulterville, Illinois Carver Financial Corporation, The Carver State Bank, Atlanta August 13,2003 Savannah, Georgia Savannah, Georgia Coastal Financial Corporation, Coastal Community Bank, San Francisco August 18, 2003 Everett, Washington Everett, Washington Coffeyville Bancorp, Inc., CSB Bancorp, Inc., Kansas City August 8,2003 Coffeyville, Kansas Coffeyville, Kansas Community State Bank, Coffeyville, Kansas Cornerstone Bancshares, Inc., Heritage Bank of the Ozarks, St. Louis August 20, 2003 Lebanon, Missouri Lebanon, Missouri Country Bank Holding Company, Country Bank, New York July 31,2003 Inc., New York, New York New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 447 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date FOJ Partners, LP, Arthur Financial Corporation, Richmond August 22, 2003 Union, South Carolina Union, South Carolina FOJ Partners II, LP, Union, South Carolina FOJ Management Company LLC, Union, South Carolina JCO Partners, LP, Union, South Carolina JCO Partners II, LP, Union, South Carolina JCO Ventures, LLC, Union, South Carolina HAO Partners, LP, Union, South Carolina HAO Partners II, LP, Union, South Carolina HAO Management Company LLC, Union, South Carolina Frances W. Arthur Irrevocable Trust #2 for the Benefit of Frances Oxner Jorgenson, Union, South Carolina Heartland Financial USA, Inc., Arizona Bank & Trust, Chicago July 31, 2003 Dubuque, Iowa Mesa, Arizona Heritage Oaks Bancorp, Hacienda Bank, San Francisco August 18, 2003 Paso Robles, California Santa Maria, California Hume Bancshares Acquisition Corp. Hume Bancshares, Inc., Kansas City August 6, 2003 St. Louis, Missouri Hume, Missouri Hume Bank, Hume, Missouri Industry Bancshares, Inc., Fayetteville Bancshares, Inc., Dallas July 31, 2003 Industry, Texas Fayetteville, Texas Industry Holdings, Inc., Fayetteville Bank, Wilmington, Delaware Fayetteville, Texas Lakeland Bancorp, CSB Financial Corporation, New York August 6, 2003 Oak Ridge, New Jersey Teaneck, New Jersey Community State Bank, Teaneck, New Jersey Lauritzen Corporation, First National of Nebraska, Inc., Kansas City August 7, 2003 Omaha, Nebraska Omaha, Nebraska Marco Community Bancorp, Inc. Marco Community Bank, Atlanta July 25, 2003 Marco Island, Florida Marco Island, Florida Mercantile Bancorp, Inc., Mid-America Bancorp, Inc., St. Louis August 6, 2003 Quincy, Illinois Leawood, Kansas Heartland Bank, Leawood, Kansas Merchants and Manufacturers Random Lake Bancorp, Limited, Chicago August 21, 2003 Bancorporation Inc., Random Lake, Wisconsin Brookfield, Wisconsin Wisconsin State Bank, Merchants Merger Corp., Random Lake, Wisconsin Brookfield, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 Federal Reserve Bulletin • October 2003 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Merchants and Manufacturers Reedsburg Bancorporation, Inc., Chicago August 21, 2003 Bancorporation Inc., Reedsburg, Wisconsin Brookfield, Wisconsin Reedsburg Bank, Merchants New Merger Corp., Reedsburg, Wisconsin Brookfield, Wisconsin Oswego Community Bank Employee Oswego Bancshares, Inc., Chicago August 22, 2003 Stock Ownership Plan, Oswego, Illinois Oswego, Illinois Oswego Community Bank, Oswego, Illinois Pebblespring Holding Company, Eagle National Bank, Philadelphia August 15, 2003 Berwyn, Pennsylvania Upper Darby, Pennsylvania Peoples Bancshares Corp., Peoples Trust and Savings Bank, St. Louis August 6, 2003 Boonville, Indiana Boonville, Indiana Red River Bancshares, Inc., Bank of Lecompte, Atlanta August 14, 2003 Alexandria, Louisiana Lecompte, Louisiana TeamCo, Inc., Oak Lawn Bank, Chicago August 21, 2003 Oak Lawn, Illinois Oak Lawn, Illinois Tradition Bancshares, Inc., Tradition Bank, Dallas August 7, 2003 Houston, Texas Houston, Texas Tradition Bancshares of First National Bank of Bellaire, Delaware, Inc., Houston, Texas Wilmington, Delaware United Bankshares, Inc., George Mason Bankshares, Inc., Richmond August 26, 2003 Charleston, West Virginia Fairfax, Virginia Sequoia Bancshares, Inc., Bethesda, Maryland Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Bank of Hawaii Corporation, Chicago Equity Partners, San Francisco August 21, 2003 Honolulu, Hawaii Chicago, Illinois First National Bank of Berryville To engage in leasing personal property St. Louis August 12, 2003 Employee Stock Ownership Plan, Berryville, Arkansas First Carroll Bankshares, Inc., Berryville, Arkansas Hinsbrook Bancshares, Inc., To engage de novo in extending credit Chicago August 12, 2003 Glen Ellyn, Illinois and servicing loans Southwest Bancorp, Inc., SNB Bank of Wichita, Kansas City August 18, 2003 Stillwater, Oklahoma Wichita, Kansas West Bancorporation, Inc., WB Capital Management Inc., Chicago August 8, 2003 West Des Moines, Iowa West Des Moines, Iowa Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date The South Financial Group, Inc. MountainBank Financial Corporation, Richmond August 7, 2003 Greenville, South Carolina Hendersonville, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 449 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 Dallas Investment Company, Perry Investment Company, Chicago August 6, 2003 Carroll, Iowa Carroll, Iowa Planters Bank and Trust Company First Virginia Bank-Southwest, Richmond August 26, 2003 of Virginia, Roanoke, Virginia Staunton, Virginia First Virginia Bank-Colonial, Richmond, Virginia Red River Bank, Bank of Lecompte, Atlanta August 14, 2003 Alexandria, Louisiana Lecompte, Louisiana Second Bank & Trust, First Virginia Bank-Blue Ridge, Richmond August 26, 2003 Culpeper, Virginia Staunton, Virginia Suburban Community Bank, UNB Acquisition National Bank, Philadelphia August 20, 2003 Chalfont, Pennsylvania Souderton, Pennsylvania United Bank, SequoiaBank, Richmond August 26, 2003 Fairfax, Virginia Bethesda, Maryland Univest Corporation of Pennsylvania, Suburban Community Bank, Philadelphia July 25, 2003 Souderton, Pennsylvania Chalfont, Pennsylvania Univest National Bank, Souderton, Pennsylvania PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the on constitutional grounds the failure to pay interest on Federal Reserve Banks in which the Board of Governors is reserve accounts held at Federal Reserve Banks. not named a party. Artis v. Greenspan, No. 01-CV-0400 (EGS) (D.D.C., complaint filed February 22, 2001). Employment discrimina- Tavera v. Von Nothaus, et al„ No. 03-763 (D. Oregon, filed tion action. On August 15, 2001, the district court June 5, 2003). Civil rights action for violation of rights consolidated the action with Artis v. Greenspan, in connection with the plaintiff's prosecution for passing No. 99-CV-2073 (EGS) (D.D.C., filed August 3, 1999), "Liberty dollar coins" as lawful money. also an employment discrimination action. Apffel v. Board of Governors, No. 03-343 (S.D. Texas, filed Fraternal Order of Police v. Board of Governors, May 20, 2003). Freedom of Information Act case. No. 1:98CV03116 (WBB) (D.D.C., filed December 22, Albrecht v. Board of Governors, No. 02-5325 (D.C. Cir., 1998). Declaratory judgment action challenging Board filed October 18, 2002). Appeal of district court order regulation on labor-management relations at Reserve dismissing challenge to the method of funding of the Banks. retirement plan for certain Board employees. Community Bank & Trust v. United States, No. 01-571C (Ct. Fed. Cl„ filed October 3, 2001). Action challenging Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 Federal Reserve Bulletin • October 2003 To Readers of the Legal Developments Section of the Bulletin The materials currently contained in the Legal Develop- ing Act, can also be found at www.federalreserve.gov/ ments section of the Federal Reserve Bulletin are also boarddocs/legaldevelopments/ordersother/. available in various publications, in press releases, and on • Applications approved under the Bank Holding Company the Board's web site. The Board's Legal Developments web Act, the Bank Merger Act, the Federal Reserve Act, and site, launched in September 2002, provides a convenient the International Banking Act are listed in the Board's way of gaining access to material that has been published in weekly H.2 release "Actions of the Board, Its Staff, and the Bulletin for many years. The site is updated as orders the Federal Reserve Banks; Applications and Reports and actions are finalized. Received," which is available in paper copies by subscription from Publications Fulfillment and on the • Selected rulemaking actions (proposed and final) are first Board's web site at www.federalreserve.gov/releases/h2. issued as press releases, which are available on the • Enforcement actions are issued as press releases. Actions Board's web site at www.federalreserve.gov/boarddocs/ since 1997 are available at www.federalreserve.gov/ press/bcreg/2003/. They are then published in the Federal boarddocs/press/enforcement/2003/; actions since 1989 Register (www.gpoaccess.gov/fr/index.html). On the can be located by going to "Enforcement Actions" from Board's site, they can also be found in the Legal Devel- the Banking and Information and Regulation page at opments section of the Banking Information and Reg- www.federalreserve.gov/boarddocs/enforcement/. ulation page at www.federalreserve.gov/boarddocs/ legaldevelopments/rulemaking/. Interested persons may Paper copies of these documents are also available view proposals published for comment and comments upon request from the Board's Freedom of Information received at www.federalreserve.gov/generalinfo/foia/ Office. Requests may be submitted by facsimile (202-872- ProposedRegs.cfm. Comments on proposals may also be 7565); online at www.federalreserve.gov/generalinfo/foia/ submitted through this web site, by electronic mail, or in request.cfm; or by mail to the Secretary, Board of Govwriting. ernors of the Federal Reserve System, Freedom of • Board orders issued under the Bank Holding Company Information Office, Washington, DC 20551. Act, the Bank Merger Act, the Federal Reserve Act, and Pending cases are listed in the Board's Annual Report the International Banking Act are issued as attachments in the "Litigation" chapter and on the web site at to press releases, which are available from 1996 on the www.federalreserve.gov/boarddocs/legaldevelopments/ Board's web site at www.federalreserve.gov/boarddocs/ cases.htm. press/orders/2003/. Board orders issued under the Because it is available elsewhere in a more timely fash- Bank Holding Company Act can also be found at ion, much of the material currently being published in the www.federalreserve.gov/boarddocs/legaldevelopments/ Legal Developments section of the Bulletin will no longer ordersbhc/. Board orders issued under the Bank Merger be included in the Bulletin when it becomes a quarterly. Act, the Federal Reserve Act, and the International Bank- Only Board orders will be included. 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 dealers—Transactions A4 Reserves and money stock measures A27 U.S. government securities dealers— A5 Reserves of depository institutions and Reserve Bank Positions and financing credit A28 Federal and federally sponsored credit A6 Reserves and borrowings—Depository agencies—Debt outstanding institutions 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 A33 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 A38 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

38 Federal Reserve Bulletin • October 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 A58 INDEX TO STATISTICAL TABLES A46 Liabilities to foreigners A48 Banks' own claims on foreigners A49 Banks' own and domestic customers' claims on foreigners Reported by Nonbanking Business Enterprises in the United States A50 Liabilities to unaffiliated foreigners A52 Claims on unaffiliated foreigners Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tables SYMBOLS AND ABBREVIATIONS c Corrected G-10 Group of Ten e Estimated GDP Gross domestic product n.a. Not available GNMA Government National Mortgage Association n.e.c. Not elsewhere classified GSE Government-sponsored enterprise P Preliminary HUD Department of Housing and Urban r Revised (Notation appears in column heading Development when about half the figures in the column have IMF International Monetary Fund been revised from the most recently published IOs Interest only, stripped, mortgage-backed securities table.) IPCs Individuals, partnerships, and corporations * Amount insignificant in terms of the last decimal IRA Individual retirement account place shown in the table (for example, less than MMDA Money market deposit account 500,000 when the smallest unit given is in millions) MSA Metropolitan statistical area 0 Calculated to be zero NAICS North American Industry Classification System Cell not applicable NOW Negotiable order of withdrawal ABS Asset-backed security OCDs Other checkable deposits ATS Automatic transfer service OPEC Organization of Petroleum Exporting Countries BIF Bank insurance fund OTS Office of Thrift Supervision CD Certificate of deposit PMI Private mortgage insurance CMO Collateralized mortgage obligation POs Principal only, stripped, mortgage-backed securities CRA Community Reinvestment Act of 1977 REIT Real estate investment trust FAMC Federal 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 NonfinancialS tatistics • October 2003 1.10 RESERVES AND MONEY STOCK MEASURES Percent annual rate of change, seasonally adjusted1 2002 2003 2003 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q3 Q4 Ql Q2r Mar. Apr.' May' June' July Reserves of depository institutions2 1 Total -7 7 1.0 11.3 6.7 4.5 -4.9 5.3 53.0 31.7 2 Required -4.9 -1.4 11.4 8.1 14.9 -1.9 2.8 48.0 31.3 3 Nonborrowed -3.7 1.9 12.8 6.2 4.6 -5.1 4.5 49.9 32.7 4 Monetary base3 6.9 5.1 7.6 5.9 6.7 5.3 5.1 3.4 .6 Concepts of money4 5 Ml 3.0 4.9 7.5 9.2 3.5' .4 20.3 13.3 5.3 6 M2 8.8 7.0 6.4' 8.4 2.5r 4.6 17.8 9.5 9.6 7 M3 7.2' 7.8r 5.6 6.0 3.7r 2.1 12.4 8.6 22.0 Nontransaction components 8 In M25 10.4 7.6 6.0r 8.2 2.3r 5.8 17.1 8.5 10.8 9 In M3 only6 3.6' 9.5' 3.9r .8 6.4r -3.5 .6 6.5 49.5 Time and savings deposits Commercial banks 10 Savings, including MMDAs 20.1 16.8 13.6 16.5 4.3 17.7 23.5 21.5 28.1 11 Small time7 -4.0 -7.4r -7.1' -8.6 -6.8 -8.5 -10.2 -10.9 -19.1 12 Large time8-9 .5 -5.6 -4.5 2.1 9.5 -1.0 7.0 -6.6 154.0 Thrift institutions 13 Savings, including MMDAs 20.6r 20.0 21.9r 24.6 19.5 19.1 40.5 13.2 21.4 14 Small time7 -10.5 -6.0 -6.6r -9.0 -6.4' -7.3 -11.8 -13.2 -14.6 15 Large time8 -2.6 11.9 8.9 -2.1 -8.1 2.0 -10.2 11.3 34.6 Money market mutual funds 16 Retail .9 -6.3 -10.0' -8.2 -8.1r -20.1 9.1 -7.9 -15.0 17 Institution-only -.7 2.1 -4.9 -14.7 -13.1 -22.4 -20.1 20.3 42.1 Repurchase agreements and eurodollars 18 Repurchase agreements'" 28.7r 47.7' 31.4r 27.8 46.2r 23.8 19.3 6.3 -57.9 19 Eurodollars10 -3.5 28.9 19.2r 20.9 20.9r 23.1 44.8 -20.9 27.0 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 2003 2003 May June July June 18 June 25 July 2 July 9 July 16 July 23 July 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 714,217 715,547 716,576 713,851 717,693 719,477 718,395 715,469 716,706 713,382 2 Securities held outright 649,309 651,774 652,630 651,783 651,960 652,162 652,443 652,538 652,764 652,843 3 U.S. Treasury2 649,299 651,764 652,620 651,773 651,950 652,152 652,433 652,528 652,754 652,833 4 Bills3 237,126 238,596 239,480 238,605 238,790 238,998 239,285 239,385 239,616 239,701 5 Notes and bonds, nominal3 397,882 398,853 398,853 398,853 398,853 398,853 398,853 398,853 398,853 398,853 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 1,477 1,500 1,473 1,501 1,493 1,486 1,480 1,475 1,470 1,465 8 Federal agency3 10 10 10 10 10 10 10 10 10 10 9 Repurchase agreements5 26,121 25,074 24,153 23,179 26,321 28,714 26,000 22,893 24,250 20,857 10 Loans to depository institutions 57 174 114 74 407 188 99 114 119 126 11 Primary credit 4 100 5 3 322 99 8 6 4 1 12 Secondary credit 0 0 0 0 0 0 0 1 0 0 13 Seasonal credit 53 74 109 71 84 89 91 107 115 125 14 Float -350 -166 147 4 22 -627 620 452 42 -477 15 Other Federal Reserve assets 39,080 38,692 39,532 38,811 38,983 39,040 39,233 39,472 39,531 40,033 16 Gold stock : 11,043 11,044 11,044 11,044 11,044 11,044 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 34,937 35,022r 35,099 35,02^ 35,043r 35,065 35,079 35,093 35,107 35,121 ABSORBING RESERVE FUNDS 19 Currency in circulation 690,751 691,893r 694,585 691,540r 691,146' 693,612 697,860 694,522 692,713 692,558 20 Reverse repurchase agreements6 21,137 22,038 20,180 21,464 22,714 23,129 20,844 20,067 19,677 19,916 21 Foreign official and international accounts ... 21,137 21,530 20,180 21,142 21,036 23,129 20,844 20,067 19,677 19,916 22 Dealers 0 508 0 321 1,679 0 0 0 0 0 23 Treasury cash holdings 351 375 334 379 368 360 327 327 330 343 24 Deposits with Federal Reserve Banks, other than reserve balances 18,232 18,169 17,943 18,555 18,637 17,882 17,742 17,957 18,098 18,005 25 U.S. Treasury, general account 6,678 6,747 6,213 7,147 7,199 6,087 6,218 6,479 6,067 6,205 26 Foreign official 122 157 224 88 162 412 279 109 124 259 27 Service-related 11,178 11,028 11,192 11,088 11.056 11,136 11,016 11,062 11,401 11,290 28 Required clearing balances 10,849 10,832 10,864 10,830 10,830 10,838 10,838 10,863 10,863 10,896 29 Adjustments to compensate for float 329 196 327 258 226 297 178 199 538 394 30 Other 254 237 315 232 220 248 229 307 506 251 31 Other liabilities and capital 20,300 20,170 19,956 20,322 20,106 20,045 19,817 19,878 20,000 20,228 32 Reserve balances with Federal Reserve Banks7 . 11,626 11,168 11,921 9,855 13,009 12,758 10,128 11,054 14,238 10,696 End-of-month figures Wednesday figures May June July June 18 June 25 July 2 July 9 July 16 July 23 July 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 719,092 722,933 721,467 714,955 723,424 717,341 722,448 716,149 724,764 718,066 2 Securities held outright 651,127 652,128 652,913 651,932 652,003 652,363 652,461 652,700 652,837 652,866 3 U.S. Treasury2 651,117 652,118 652,903 651,922 651,993 652,353 652,451 652,690 652,827 652,856 4 Bills3 237,933 238,965 239,773 238,756 238,835 239,201 239,305 239,550 239,692 239,726 5 Notes and bonds, nominal3 398,853 398,853 398,853 398,853 398,853 398,853 398,853 398,853 398,853 398,853 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 1,517 1,485 1,462 1,498 1,491 1,484 1,479 1,473 1,468 1,463 8 Federal agency3 10 10 10 10 10 10 10 10 10 10 9 Repurchase agreements5 30,240 31,750 29,000 23,000 32,000 26,000 29,250 24,000 32,000 26,250 10 Loans to depository institutions 80 768 145 86 95 92 104 121 118 141 11 Primary credit 15 686 11 3 3 1 1 8 1 5 12 Secondary credit 0 0 0 0 0 0 2 0 0 0 13 Seasonal credit 65 82 133 83 92 91 102 113 118 137 14 Float -599 -525 -195 1,131 323 -144 1,336 97 -32 -1,187 15 Other Federal Reserve assets 38,244 38,812 39,605 38,806 39,003 39,030 39,298 39,230 39,841 39,996 16 Gold stock 11,044 11,044 11,043 11,044 11,044 11,044 11,044 11,044 11,044 11,043 17 Special drawing rights certificate account . . 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 18 Treasury currency outstanding 34,976 35,065r 35,135 35,020r 35,043r 35,065 35,079 35,093 35,107 35,121 ABSORBING RESERVE FUNDS 19 Currency in circulation 692,355 693,315r 694,064 692,525r 692,710r 698,314 697,411 694,748 693,626 694,578 20 Reverse repurchase agreements6 22,285 22,080 19,827 22,901 21,592 21,045 20,254 20,346 19,672 19,316 21 Foreign official and international accounts . .. 22,285 22,080 19,827 20,651 21,592 21,045 20,254 20,346 19,672 19,316 22 Dealers 0 0 0 2,250 0 0 0 0 0 0 23 Treasury cash holdings 375 365 364 368 365 327 327 329 339 364 24 Deposits with Federal Reserve Banks, other than reserve balances 17,803 19,222 18,219 19,499 16,987 17,539 17,925 17,233 18,014 18,561 U.S. Treasury, general account 6,505 6,939 6,356 8,086 5,306 5,707 6,356 5,724 6,058 6,174 Foreign official 79 898 318 96 404 476 327 128 134 852 Service-related 11.003 11,136 11,287 11,088 11,056 11,136 11,016 11,062 11,400 11,290 Required clearing balances 10,832 10,838 10,898 10,830 10,830 10,838 10,838 10,863 10,862 10,896 Adjustments to compensate for float 170 297 390 258 226 297 178 199 538 394 Other 217 249 258 229 220 220 225 318 423 246 31 Other liabilities and capital 19,973 19,898 19,674 19,937 20,021 19,635 19,675 19,649 20,085 19,745 32 Reserve balances with Federal Reserve Banks7 . 14,521 16,364 17,697 7,990 20,036 8,790 15,180 12,180 21,380 13,866 1. Amounts of vault cash held as reserves are shown in table 1.12, line 2. 5. Cash value of agreements, which are fully collateralized by U.S. Treasury and federal 2. Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury agency securities. securities. 6. Cash value of agreements, which are fully collateralized by U.S. Treasury securities. 3. Face value of the securities. 7. Excludes required clearing balances and adjustments to compensate for float. 4. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic NonfinancialS tatistics • October 2003 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 2000 2001 2002 2003 Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July 1 Reserve balances with Reserve Banks2 7,022 9,053 9,926 10,075 9,860 9,840 10,598 11,405 ll,297r 12,158 2 Total vault cash3 45,246 43,918 43,368 46,209r 45,942' 43,088r 41,991r 41,636r 41,961r 42,657 3 Applied vault cash4 31,451 32,024 30,347 32,794 32,079 30,757 30,574 30,395 30,574 31,438 4 Surplus vault cash5 13,795 11,894 13,021 13,415' 13,863r 12,33 lr 11,417' 1 l,241r 1 l,386r 11,220 5 Total reserves6 38,473 41,077 40,274 42,869 41,939 40,597 41,172 41,801 41,872r 43,595 6 Required reserves 37,046 39,428 38,264 41,162 39,973 38,961 39,640 40,182 40,018 41,679 7 Excess reserve balances at Reserve Banks7 1,427 1,649 2,009 1,707 1,965 1,636 1,532 1,619 l,854r 1,916 8 Total borrowing at Reserve Banks 210 67 80 27 25 22 29 55 161 130 9 Primary 12 21 14 8 3 87 21 10 Secondary 0 0 0 0 0 0 0 11 Seasonal 111 33 45 13 5 8 21 53 74 110 12 Adjustment 99 34 35 2 Biweekly averages of daily figures for two-week periods ending on dates indicated 2003 Apr. 2 Apr. 16 Apr. 30 May 14 May 28 June 11 June 25 July 9' July 23 Aug. 6 1 Reserve balances with Reserve Banks2 9,843 9,452 11,852 9,772 13,116 11,050 11,437 11,453 12,644 12,100 2 Total vault cash3 43,918r 41,682' 42,024' 41,432' 41,968' 41,040' 42,303' 43,030 41,789 43,758 3 Applied vault cash4 31,830 29,833 31,136 29,696 31,211 29,854 30,798 31,534 30,545 32,892 4 Surplus vault cash5 12,089' 11,849' 10,889' 11,736' 10,758' 11,186' 11,505' 11,497 11,244 10,866 5 Total reserves6 41,672 39,285 42,987 39,468 44,326 40,904 42,235 42,986 43,189 44,991 6 Required reserves 40,058 37,784 41,436 37,924 42,712 38,909 40,631 40,744 41,601 42,867 7 Excess reserve balances at Reserve Banks7 1,614 1,501 1,551 1,543 1,614 1,994 1,604 2,242 1,588 2,124 8 Total borrowing at Reserve Banks 11 33 29 51 58 69 241 144 117 140 9 Primary 3 15 2 3 2 7 163 54 5 11 10 Secondary 0 0 0 0 0 0 0 0 1 0 11 Seasonal 8 18 27 48 56 63 78 90 111 129 12 Adjustment 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 4. AH vault cash held during the lagged computation period by "bound" institutions (that ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. is, those whose required reserves exceed their vault cash) plus the amount of vault cash 2. Excludes required clearing balances and adjustments to compensate for float and applied during the maintenance period by "nonbound" institutions (that is, those whose vault includes other off-balance-sheet "as-of' adjustments. cash exceeds their required reserves) to satisfy current reserve requirements. 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by 5. Total vault cash (line 2) less applied vault cash (line 3). those banks and thrift institutions that are not exempt from reserve requirements. Dates 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash (line 3). refer to the maintenance periods in which the vault cash can be used to satisfy reserve 7. Total reserves (line 5) less required reserves (line 6). requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Primary credit1 Secondary credit2 Seasonal credit3 Federal Reserve Bank 9/1 O 9 n /0 3 Effective date Previous rate 9/1 O 9 n /0 3 9/1 O 9 n /0 3 Effective date 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 September 19, 2003 .... 2.00 2.00 of rates for adjustment credit in recent years4 Range (or F.R. Bank Range (or F.R. Bank Range(or F.R. Bank level)—All of Effective date level)—All of 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 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 ] 941-1970\ 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/H15/data.htm). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic NonfinancialS tatistics • October 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 12/27/90 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 Dec. Jan. Feb. Mar. Apr. May June U.S. TREASURY SECURITIES2 Outright transactions Treasury bills 1 Gross purchases 8,676 15,503 21,421 0 0 4,161 1,863 3,543 1,684 1,032 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 477,904 542,736 657,931 53,374 71,075 53,860 47,424 51,834 76,354 60,706 4 For new bills 477,904 542,736 657,931 53,374 71,075 53,860 47,424 51,834 76,354 60,706 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 0 478 1,318 1,422 786 0 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 62,025 70,336 89,108 13,448 6,216 3,214 8,334 8,333 7,228 7,531 9 Exchanges -54,656 -72,004 -92,075 -12,059 -6,834 -13,313 -8,211 -7,293 -6,999 -6,700 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 12,748 339 0 2,127 710 733 1,057 0 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -52,068 -45,211 -73.093 -13,448 -6,216 2,160 -8,334 -8,333 -1,513 -7,531 14 Exchanges 46,177 64,519 88,276 12,059 6,834 11,817 8,211 7,293 6,747 6.700 Five to ten years 15 Gross purchases 5,871 6,003 5,074 314 0 769 522 0 234 0 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -6,801 -21,063 -11,588 0 0 -3,877 0 0 -5,463 0 18 Exchanges 6,585 6,063 3,800 0 0 1,497 0 0 252 0 More than ten years 19 Gross purchases 5,833 8,531 2,280 0 0 0 50 0 0 0 20 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -3,155 -4,062 -4,427 0 0 -1,497 0 0 -252 0 22 Exchanges 1,894 1,423 0 0 0 0 0 0 0 0 All maturities 23 Gross purchases 43,670 68,513 54,242 653 0 7,534 4,463 5,699 3,761 1,032 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 54,242 653 0 7,534 4,463 5,699 3,761 1,032 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 1,143,126 112,750 135,749 121,896 95,001 112,251 124,741 90,500 32 Gross sales 987,501 1,490,838 1,153,876 101,750 150,499 119,746 90,151 106,500 132,002 88,990 Matched sale-purchase agreements 33 Gross purchases 4,415,905 4,722,667 4,981,624 195,565 0 0 0 0 0 0 34 Gross sales 4,397,835 4,724,743 4,958,437 175,820 0 0 0 0 0 0 Reverse repurchase agreements4 35 Gross purchases 0 0 231,272 231,272 392,530 343,748 388,069 451,149 441,555 456,652 36 Gross sales 0 0 252,363 252,363 389,810 343,395 389,469 452,545 443,025 456,447 37 Net change in temporary transactions -79,195 4,800 -8,653 9,654 -12,029 2 2,200 2,104 -8,731 -6,535 38 Total net change in System Open Market Account .. -63,877 46,295 45,589 10,307 -12,029 7,537 6,664 7,803 -4,971 -5,504 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 • October 2003 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 2003 2003 July 2 July 9 July 16 July 23 July 30 May June July Consolidated condition statement ASSETS 1 Gold certificate account . . . .: 11.039 11.039 11.039 1 1.039 11,039 11.040 11.040 11.039 2 Special drawing rights certificate account 2.200 2.200 2.200 2.200 2,200 2,200 2.200 2,200 3 Coin 904 874 872 872 869 924 942 878 4 Securities, repurchase agreements, and loans 678.454 681.815 676.822 684.956 679,257 681.447 684.646 682.057 5 Securities held outright 652.363 652.461 652.700 652.837 652.866 651,127 652.128 652.913 6 U.S. Treasury- 652.353 652.451 652.690 652.827 652,856 651.117 652.118 652.903 7 Bills3 239.201 239.305 239.550 239.692 239,726 237,933 238.965 239.773 8 Notes and bonds, nominal3 398.853 398.853 398,853 398.853 398,853 398,853 398,853 398.853 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 1.484 1.479 1.473 1.468 1.463 1.517 1,485 1,462 11 Federal agency3 10 10 10 10 10 10 10 10 12 Repurchase agreements5 26.000 29,250 24,000 32.000 26.250 30.240 31.750 29,000 13 Loans 92 104 121 118 141 80 768 145 14 Items in process of collection 9,457 10.110 8.534 7.680 7.843 5.684 2.330 6.558 15 Bank premises 1,581 1.582 1.585 1.588 1,586 1.579 1.580 1.586 16 Other assets 37,400 37.712 37,607 38.216 38.377 36.689 37.195 38,004 17 Denominated in foreign currencies6 17.951 17.824 17,714 17,921 17.707 18.080 17.849 17.598 18 All other7 19.448 19.888 19,893 20.295 20,670 18,609 19,346 20.406 19 Total assets 741,035 745.332 738,658 746,550 741,172 739,563 739,932 742,321 LIABILITIES 20 Federal Reserve notes, net of F.R. Bank holdings 664.475 663.529 660,851 659,725 660.686 658.674 659.552 660.167 21 Reverse repurchase agreements8 21.045 20.254 20,346 19.672 19.316 22,285 22.080 19.827 22 Deposits 26.422 33,479 29,600 39.452 33,151 32,470 35,806 35.972 23 Depository institutions 20.019 26.571 23.429 32.837 25,879 25.669 27.720 29,041 24 U.S. Treasury, general account 5.707 6.356 5,724 6.058 6,174 6,505 6,939 6,356 25 Foreign official 476 327 128 134 852 79 898 318 26 Other 220 225 318 423 246 217 249 258 27 Deferred availability cash items 9.457 8.395 8,211 7.617 8.275 6.161 2.596 6.681 28 Other liabilities and accrued dividends9 2.101 2.107 2,080 2,138 2.151 2,329 2,227 2.143 29 Total liabilities 723,500 727,764 721,089 728,603 723,578 721,919 722,262 724,789 CAPITAL ACCOUNTS 30 Capital paid in 8.659 8.660 8.662 8.714 8,719 8.575 8.657 8,719 31 Surplus 8.380 8.378 8,378 8.380 8,363 8.380 8,356 8.327 32 Other capital accounts 496 529 529 852 513 689 657 486 33 Total capital 17,535 17,567 17,569 17,947 17,594 17,644 17,670 17,532 MEMO 34 Marketable securities held in custody for foreign official and international accounts310 951.017 938.109 939.558 931.836 930,019 931.570 945.930 936.251 35 U.S. Treasury 763.039 755,623 756.862 749.564 746.813 741.378 760.406 754.101 36 Federal agency 187.977 182.486 182.696 182.272 183.207 190.191 185.524 182.150 37 Securities lent to dealers 2.461 609 661 1.688 2,534 597 4.950 2.390 Federal Reserve notes and collateral statement 38 Federal Reserve notes outstanding 767.466 768.847 770.017 772.010 774,095 760.717 766.845 774.672 39 Less: Notes held by F.R. Banks not subject to collateralization 98.395 100.612 104,446 107.559 108,713 97,928 102.691 109,856 40 Federal Reserve notes to be collateralized 669.071 668,236 665.571 664,451 665,381 662,789 664.155 664.816 41 Collateral held against Federal Reserve notes 669.071 668,236 665.571 664.451 665,381 662,789 664.155 664,816 42 Gold certificate account 11.039 11.039 11,039 11.039 11.039 11,040 11.040 11.039 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 pledged'1 655.832 654.996 652.331 651.211 652.142 649.549 650,915 651.577 45 Other eligible assets 0 0 0 0 0 0 0 0 MEMO 46 Total U.S. Treasury and agency securities" 678.363 681.711 676,700 684,837 679.116 681.367 683,878 681,913 47 Less: face value of securities under reverse repurchase agreements'3 21.050 20.258 20.351 19,677 19,321 22.295 22,086 19,831 48 U.S. Treasury and agencv securities eligible to be pledged 657.313 661.453 656.349 665,161 659.795 659.072 661,792 662,081 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 July 2 July 9 July 16 July 23 July 30 May June July 1 Total loans 92 104 121 118 141 80 768 145 2 Within 15 days 13 44 64 102 116 66 752 99 3 16 days to 90 days 79 60 57 16 25 14 16 45 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities' 652,353 652,451 652,690 652,827 652,856 651,117 652,118 652,903 6 Within 15 days 41,102 40,668 46,121 46,160 46,048 36,449 27,419 36,979 7 16 days to 90 days 146,726 147,314 141,599 140,922 141,180 153,457 153,840 134,047 8 91 days to 1 year 158,535 158,485 158,993 159,773 159,660 154,081 157,337 172,745 9 Over 1 year to 5 years 179,355 179,353 179,352 179,350 179,349 180,472 186,886 184,345 10 Over 5 years to 10 years 46,661 46,659 46,657 46,656 46,654 46,672 46,661 44,823 11 Over 10 years 79,973 79,971 79,969 79,967 79,965 79,987 79,974 79,965 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 26,000 29,250 24,000 32,000 26,250 30,240 31,750 29,000 20 Within 15 days 21,000 24,250 19,000 29,000 24,250 22,240 23,750 24,000 21 16 days to 90 days 5,000 5,000 5,000 3,000 2,000 8,000 8,000 5,000 22 Total reverse repurchase agreements2 21,045 20,254 20,346 19,672 19,316 22,285 22,080 19,827 23 Within 15 days 21,045 20,254 20,346 19,672 19,316 22,285 22,080 19,827 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 NonfinancialS tatistics • October 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.. Dec. Jan. Feb. Mar. Apr. May June July Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 41.81 38.54 41.24 40.22 40.22 40.73 40.82 40.97 40.81 40.99 42.80 43.93 22 NNoonnbboorrrroowweedd rreesseerrvveess44 41.49 38.33 41.18 40.14 40.14 40.70 40.80 40.95 40.78 40.93 42.63r 43.80 33 RReeqquuiirreedd rreesseerrvveess 40.51 37.11 39.60 38.21 38.21 39.02 38.86 39.34 39.27 39.37 40.94 42.01 44 MMoonneettaarryy bbaassee55 593.16 584.77 635.62 681.90 681.90 685.72 691.31 695.14 698.23 701.18 703.17' 703.53 Not seasonally adjusted 5 Total reserves6 41.89 38.53 41.20 40.13 40.13 42.85 41.94 40.60 41.16 41.79 41.86 43.58 6 Nonborrowed reserves 41.57 38.32 41.13 40.05 40.05 42.83 41.91 40.57 41.14 41.73 41.70 43.45 7 Required reserves7 40.59 37.10 39.55 38.12 38.12 41.15 39.97 38.96 39.63 40.17 40.00 41.66 8 Monetary base8 600.72 590.06 639.91 686.23 686.23 688.33 690.25 693.91 697.83 701.58 703.33' 705.80 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS9 9 Total reserves10 41.65 38.47 41.08 40.27 40.27 42.87 41.94 40.60 41.17 41.80 41.87 43.60 10 Nonborrowed reserves 41.33 38.26 41.01 40.19 40.19 42.84 41.91 40.58 41.14 41.75 41.71 43.47 11 Required reserves 40.36 37.05 39.43 38.26 38.26 41.16 39.97 38.96 39.64 40.18 40.02 41.68 12 Monetary base" 608.02 596.98 648.74 697.15 697.15 699.25 701.04 705.04 709.10 712.76 714.36' 717.01 13 Excess reserves12 1.30 1.43 1.65 2.01 2.01 1.71 1.97 1.64 1.53 1.62 1.85' 1.92 14 Borrowings from the Federal Reserve .32 .21 .07 .08 .08 .03 .03 .02 .03 .06 .16 .13 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. Apr.' May' June' July Seasonally adjusted Measures2 1 Ml 1,121.4 1,084.7 1,172.9 1,210.4 1,237.4 1,258.3 1,272.2 1,277.8 M2 4,649.7 4,931.5r 5,444.6r 5,791.8' 5,908.5 5,996.2 6,043.6 6,092.1 3 M3 6,534.9 7,099.4r 8,004.5' 8,522.7' 8,610.7 8,699.6 8,761.6 8,922.2 MI components 4 Currency3 517.7 531.5 581.9 627.3 643.2 645.8 646.5 646.2 S Travelers checks4 8.3 8.0 7.8 7.5 7.4 7.5 7.9 8.2 6 Demand deposits5 352.1 306.9 326.1 297.1 304.4 315.4 322.5 322.5 1 Other checkable deposits6 243.4 238.2 257.2 278.5 282.4 289.6 295.3 300.9 Nontransaction components 8 In M27 3,528.3 3,846.8r 4,271.7' 4,581.4' 4,671.2 4,737.9 4,771.4 4,814.3 9 In M3 only8 1,885.1 2,167.9 2,559.9 2,730.9' 2,702.1 2,703.4 2,718.0 2,830.2 Commercial banks 10 Savings deposits, including MMDAs 1,288.8 1,422.9 1,734.6 2,047.9 2,146.4 2,188.4 2,227.6 2,279.8 11 Small time deposits9 634.6 699.5 634.2 591.0' 576.5 571.6 566.4 557.4 12 Large time deposits1011 652.2 718.3 671.1 676.6 687.1 691.1 687.3 775.5 Thrift institutions 13 Savings deposits, including MMDAs 452.0 454.3 572.4 714.5' 767.4 793.3 802.0 816.3 14 Small time deposits9 319.5 344.8 339.1 302.2' 294.6 291.7 288.5 285.0 15 Large time deposits10 91.9 103.0 114.9 117.3 117.9 116.9 118.0 121.4 Money market mutual funds 16 Retail 833.4 925.4' 991.5r 925.9' 886.1 892.8 886.9 875.8 17 Institution-only 634.8 788.8 1,190.3 1,234.5 1,144.0 1,124.8 1,143.8 1,183.9 Repurchase agreements and eurodollars 18 Repurchase agreements12 335.7 363.5 375.0 474.6' 509.3 517.5 520.2 495.1 19 Eurodollars12 170.5 194.3 208.6 227.9 243.9 253.0 248.6 254.2 Not seasonally adjusted Measures2 70 Ml 1,147.8 1,112.1 1,202.9 1,240.3 1,253.5 1,251.8 1,269.4 1,274.2 7.1 M2 4,676.8 4,966.9r 5,487.6r 5,841.1' 5,975.2 5,961.6 6,012.6 6,058.1 22 M3 6,577.5 7,154.0r 8,076.3r 8,600.3' 8,672.5 8,675.3 8,730.7 8,863.8 Ml components ?.3 Currency3 521.7 535.6 585.4 630.6 643.3 646.5 647.7 648.7 7.4 Travelers checks4 8.4 8.1 7.9 7.7 7.5 7.5 7.7 7.8 7.5 Demand deposits5 371.7 326.7 348.1 317.5 308.2 308.0 318.8 319.9 26 Other checkable deposits6 246.0 241.6 261.5 284.5 294.5 289.7 295.2 297.8 Nontransaction components 71 In M27 3,529.0 3,854.8r 4,284.6' 4,600.8' 4,721.7 4,709.8 4,743.3 4,783.8 28 In M3 only8 1,900.7 2,187.1 2,588.7 2,759.2' 2,697.3 2,713.7 2,718.1 2,805.7 Commercial banks 29 Savings deposits, including MMDAs 1,288.7 1,427.5 1,742.4 2,060.4 2,171.0 2,177.5 2,217.5 2,263.9 30 Small time deposits9 635.6 700.6 635.1 591.7 575.5 571.0 565.8 557.2 31 Large time deposits10 " 653.6 718.5 670.0 675.0 685.6 696.9 691.9 775.4 Thrift institutions 32 Savings deposits, including MMDAs 451.9 455.8 575.0 718.9' 776.2 789.4 798.3 810.7 33 Small time deposits9 320.0 345.4 339.6 302.5 294.1 291.3 288.1 284.9 34 Large time deposits10 92.1 103.0 114.7 117.0 117.6 117.9 118.8 121.4 Money market mutual funds 35 Retail 832.7 925.5' 992.5' 927.4' 904.9 880.6 873.5 867.2 36 Institution-only 648.6 806.1 1,218.3 1,262.3 1,141.1 1,118.9 1,131.0 1,161.6 Repurchase agreements and eurodollars 37 Repurchase agreements12 334.7 364.2 376.5 476.4' 505.4 525.0 529.5 496.6 38 Eurodollars12 171.7 195.2 209.1 228.5 247.5 255.0 246.9 250.7 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • October 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 2003 2003 July Jan.' Feb.' Mar.' Apr.' May' June' July July 9 July 16 July 23 July 30 Seasonally adjusted 1 Bank credit 5,579. lr 5,884.9 5,962.0 5,992.6 6,024.2 6,126.2 6,181.4 6,220.8 6,227.0 6,194.4 6,222.8 6,233.0 ? Securities in bank credit 1,591.8 1,710.3 1,753.9 1,766.2 1,777.8 1,834.9 1,856.9 1,810.6 1,837.2 1,775.2 1,804.9 1,814.4 U.S. government securities 917.5 1,030.4 1,059.2 1,072.3 1,105.0 1,136.4 1,152.6 1,115.7 1,132.6 1,081.9 1,118.3 1,122.3 4 Other securities 674.3 679.9 694.8 693.9 672.8 698.5 704.3 695.0 704.6 693.3 686.6 692.0 5 Loans and leases in bank credit2 .... 3,987.3' 4,174.6 4,208.1 4,226.4 4,246.4 4,291.3 4,324.5 4,410.2 4,389.8 4,419.2 4,417.9 4,418.7 6 Commercial and industrial 978.7 960.8 954.5 948.8 947.2 937.6 924.6 928.0 928.0 929.1 929.5 925.9 7 Real estate 1,871.6' 2,046.0 2,079.2 2,094.3 2,110.4 2,133.0 2,155.6 2,193.5 2,194.6 2,188.6 2,184.9 2,204.7 8 Revolving home equity 192.3 217.6 222.7 230.5 234.8 238.4 244.8 248.9 248.4 247.6 249.3 250.5 9 Other 1,679.2' 1,828.4 1,856.5 1,863.8 1,875.6 1,894.6 1,910.8 1,944.6 1,946.2 1,941.0 1,935.6 1,954.2 in Consumer 564.0 591.8 591.7 586.9 583.9 587.9 592.5 592.4 588.6 592.0 595.1 596.3 li Security3 178.0 174.8 181.3 193.6 190.4 209.8 211.2 213.7 200.8 225.4 223.8 207.6 i? Other loans and leases 395.1' 401.2 401.3 402.7 414.6 423.0 440.6 482.6 477.8 484.0 484.5 484.2 n Interbank loans 286.2' 306.4 304.2 313.0 304.8 317.6 321.5 322.0 307.6 325.5 322.3 333.5 14 Cash assets4 311.4 313.7 318.3 323.5 319.5 317.6 331.4 337.0 330.6 331.9 347.2 342.3 15 Other assets5 487.8' 511.9 535.9 526.4 532.5 554.7 563.8 571.3 570.2 566.4 574.8 574.2 16 Total assets6 6,589.6r 6,940.1 7,043.8 7,079.1 7,105.7 7,240.4 7,322.4 7,375.7 7,360.2 7,342.5 7,391.4 7,407.5 Liabilities 17 Deposits 4,414.4 4,506.9 4,535.4 4,585.7 4,613.5 4,646.6 4,706.8 4,753.5 4,721.8 4,754.1 4,752.5 4,779.5 18 Transaction 612.9 608.0 613.7 619.4 632.2 633.3 637.9 653.8 606.1 641.7 674.1 709.4 19 Nontransaction 3,801.5 3,899.0 3,921.6 3,966.3 3,981.4 4,013.2 4,068.9 4,099.7 4,115.7 4,112.4 4,078.4 4,070.1 70 Large time 1,045.3 979.4 995.2 1,001.6 985.4 999.1 1,002.5 1,019.8 1,017.2 1,013.3 1,014.9 1,031.1 ?1 Other 2,756.2 2,919.6 2,926.4 2,964.7 2,996.0 3,014.2 3,066.4 3,079.9 3,098.4 3,099.1 3,063.5 3,039.0 72 Borrowings 1,228.5' 1,336.8 1,368.4 1,390.0 1,397.1 1,438.8 1,478.8 1,514.8 1,505.2 1,495.1 1,515.0 1,535.4 ?3 From banks in the U.S 384.3 380.8 388.1 397.3 397.4 389.8 408.0 410.1 411.2 402.7 404.5 418.9 ?4 From others 844.1' 956.0 980.3 992.7 999.7 1,049.0 1,070.7 1,104.7 1,094.0 1,092.5 1,110.5 1,116.5 ?5 Net due to related foreign offices 93.0 154.8 144.2 135.7 139.2 146.4 126.4 142.7 150.9 134.2 151.2 143.0 26 Other liabilities 408.3 442.4 455.7 450.5 457.0 481.5 493.4 463.0 479.1 455.2 449.8 463.3 27 Total liabilities 6,144.3r 6,440.9 6,503.7 6,561.9 6,606.8 6,713.3 6,805.3 6,874.0 6,857.1 6,838.6 6,868.6 6,921.3 28 Residual (assets less liabilities)7 445.4' 499.2 540.1 517.3 498.9 527.1 517.1 501.7 503.2 503.9 522.9 486.2 Not seasonally adjusted Assets 29 Bank credit 5,556.4' 5,901.9 5,965.3 5,981.4 6,018.8 6,120.9 6,177.9 6,196.1 6,207.8 6,172.0 6,181.9 6,206.0 30 Securities in bank credit 1,578.8 1,720.7 1,763.1 1,771.2 1,775.6 1,832.6 1,850.7 1,795.4 1,823.6 1,758.7 1,785.6 1,800.7 31 U.S. government securities 910.8 1,035.2 1,065.5 1,077.3 1,104.8 1,134.3 1,147.9 1,107.6 1,126.3 1,072.9 1,107.3 1,115.2 3? Other securities 668.0 685.5 697.6 693.9 670.8 698.3 702.9 687.8 697.3 685.8 678.3 685.5 33 Loans and leases in bank credit2 .... 3,977.6' 4,181.2 4,202.3 4,210.2 4,243.2 4,288.2 4,327.2 4,400.7 4,384.2 4,413.2 4,396.3 4,405.3 34 Commercial and industrial 979.7 954.9 952.5 950.2 951.0 941.3 928.6 929.0 931.9 930.8 928.2 923.9 35 Real estate 1,870.1' 2,046.4 2,075.0 2,085.3 2,106.8 2,136.9 2,156.9 2,191.9 2,194.3 2,188.6 2,180.2 2,201.9 36 Revolving home equity 192.3 217.0 223.0 228.4 234.5 239.6 245.7 248.9 248.5 247.8 248.9 250.5 37 Other 1,677.8' 1,829.4 1,852.0 1,856.9 1,872.3 1,897.2 1,911.2 1,943.0 1,945.8 1,940.8 1,931.2 1,951.3 38 Consumer 558.5 599.5 594.9 584.6 581.0 586.7 589.1 586.9 582.1 586.4 589.3 591.2 39 Credit cards and related plans . . 215.0 234.0 225.8 219.6 215.3 220.5 221.4 217.9 214.0 217.6 219.6 221.7 40 Other 343.5 365.5 369.1 365.0 365.8 366.2 367.7 368.9 368.2 368.8 369.7 369.5 41 Security3 173.2 181.0 183.0 189.2 189.6 202.0 209.8 207.6 191.7 220.3 216.1 203.9 4? Other loans and leases 396.1' 399.4 396.9 400.9 414.8 421.4 442.7 485.2 484.2 487.1 482.5 484.5 43 Interbank loans 282.1' 303.3 301.4 319.5 315.9 313.3 322.8 317.5 311.6 321.1 307.6 324.8 44 Cash assets4 301.4 329.7 318.8 312.7 317.7 314.0 322.2 326.3 325.4 322.6 322.9 331.4 45 Other assets5 486.2' 515.6 533.4 525.5 531.9 552.6 558.0 569.2 571.0 565.6 568.8 570.2 46 Total assets6 6,551.2r 6,973.7 7,042.0 7,062.5 7,109.1 7,224.8 7,304.9 7,333.7 7,340.7 7,305.7 7,305.8 7,357.0 Liabilities 47 Deposits 4,384.9 4,530.3 4,556.3 4,592.8 4,638.7 4,639.6 4,695.9 4,723.9 4,720.6 4,729.1 4,689.3 4,735.8 48 Transaction 604.7 622.0 606.1 611.0 638.0 623.1 632.5 645.2 606.3 633.5 646.8 700.4 49 Nontransaction 3,780.2 3,908.2 3,950.2 3,981.8 4,000.6 4,016.5 4,063.4 4,078.8 4,114.3 4,095.5 4,042.5 4,035.4 50 Large time 1,033.1 996.0 1,005.8 1,004.3 989.8 1,002.7 1,000.7 1,008.7 1,005.5 1,002.7 1,003.6 1,020.7 51 Other 2,747.1 2,912.3 2,944.3 2,977.5 3,010.8 3,013.7 3,062.8 3,070.0 3,108.9 3,092.8 3,038.9 3,014.7 5? Borrowings 1,222.6' 1,349.9 1,370.6 1,386.4 1,401.3 1,444.6 1,477.8 1,507.8 1,501.4 1,490.9 1,507.5 1,522.6 53 From banks in the U.S 381.3 385.4 391.6 400.7 401.5 392.2 406.2 406.7 409.1 399.9 399.8 414.6 54 From others 841.3' 964.5 979.0 985.6 999.7 1,052.4 1,071.6 1,101.0 1,092.2 1,091.0 1,107.7 1,108.1 55 Net due to related foreign offices 84.2' 158.9 149.6 133.9 130.1 146.0 123.5 133.5 137.9 123.5 142.4 137.4 56 Other liabilities 399.7 446.1 462.0 446.7 444.4 480.6 490.2 453.1 464.4 443.5 441.0 457.5 57 Total liabilities 6,091.4r 6,485.1 6,538.4 6,559.8 6,614.5 6,710.8 6,787.4 6,818.3 6,824.4 6,786.9 6,780.2 6,853.4 58 Residual (assets less liabilities)7 459.8' 488.7 503.5 502.7 494.6 514.1 517.5 515.4 516.3 518.8 525.6 503.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • October 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2002 2003 2003 July Jan.' Feb.' Mar.' Apr.' May' June' July July 9 July 16 July 23 July 30 Seasonally adjusted Assets I Bank credit 4.965.8' 5,251.3 5,315.3 5,329.0 5.369.6 5,457.9 5,512.5 5,575.6 5,576.7 5,544.9 5,581.6 5,593.0 2 Securities in bank credit 1.352.9 1,441.8 1,474.8 1,482.2 1,500.4 1,546.1 1,569.0 1,544.2 1,567.1 1,507.8 1,539.5 1,552.2 3 U.S. government securities 841.2 921.0 942.7 949.7 979.6 1,005.5 1,023.4 996.3 1,012.3 961.8 998.2 1,004.7 4 Other securities 511.7 520.8 532.1 532.6 520.8 540.6 545.5 547.9 554.8 546.0 541.3 547.5 5 Loans and leases in bank credit2 .... 3.612.9' 3,809.5 3,840.5 3,846.7 3,869.3 3,911.8 3,943.6 4,031.4 4,009.6 4,037.1 4,042.1 4,040.8 6 Commercial and industrial 787.8 783.6 780.3 777.2 775.1 767.7 762.2 766.3 765.0 766.3 768.5 765.6 7 Real estate 1,852.8' 2,026.3 2,059.5 2,074.5 2,091.4 2,113.9 2,136.4 2,174.4 2,175.5 2,169.5 2,165.8 2,185.5 8 Revolving home equity 192.3 217.6 222.7 230.5 234.8 238.4 244.8 248.9 248.4 247.6 249.3 250.5 9 Other 1.660.4' 1,808.7 1,836.8 1,844.0 1,856.6 1,875.4 1,891.6 1,925.5 1,927.1 1,921.9 1,916.5 1,935.0 10 Consumer 564.0 591.8 591.7 586.9 583.9 587.9 592.5 592.4 588.6 592.0 595.1 596.3 11 Security3 86.4 71.5 73.2 72.2 72.4 91.3 90.0 95.6 83.3 104.9 107.5 89.5 12 Other loans and leases 321.9' 336.4 335.7 336.0 346.5 351.2 362.4 402.7 397.2 404.4 405.2 403.9 13 Interbank loans 269.1' 278.3 277.2 285.8 282.3 292.9 290.8 288.8 274.8 293.2 287.8 299.5 14 Cash assets4 263.6 273.6 279.6 279.7 269.4 265.5 275.3 281.0 273.6 274.9 291.4 288.0 15 Other assets5 460.2' 477.3 500.9 495.3 497.5 513.1 518.6 527.4 530.2 523.7 530.7 525.7 16 Total assets6 5,884.2' 6,204.2 6,296.8 6,313.8 6,344.0 6,454.2 6,521.9 6,597.7 6,580.5 6,561.5 6,616.5 6,631.1 Liabilities 17 Deposits 3.913.7 4,080.4 4,092.5 4,137.2 4,177.1 4,207.8 4,256.3 4,290.5 4,261.0 4,291.4 4,288.1 4,312.7 18 Transaction 603.0 598.2 603.5 607.9 620.8 622.3 626.3 642.1 595.1 629.8 662.9 697.0 19 Nontransaction 3,310.6 3,482.2 3,489.0 3,529.4 3,556.3 3,585.5 3,630.0 3,648.4 3,666.0 3,661.5 3,625.2 3,615.7 20 Large time 557.7 577.6 583.5 583.6 582.1 595.3 589.9 585.6 585.4 579.4 579.1 593.1 21 Other 2.752.9 2,904.6 2,905.5 2,945.8 2,974.2 2,990.2 3,040.1 3,062.8 3,080.6 3,082.1 3,046.1 3,022.6 22 Borrowings 1.027.1' 1,063.2 1,093.8 1,096.7 1,098.4 1,131.7 1,159.8 1,214.5 1,208.2 1,190.4 1,220.8 1,234.6 23 From banks in the U.S 364.2 349.8 357.0 363.6 369.9 358.2 372.9 372.8 376.4 361.7 370.3 380.3 24 From others 662.9' 713.3 736.7 733.0 728.5 773.5 787.0 841.7 831.8 828.8 850.6 854.3 25 Net due to related foreign offices 175.4' 225.2 222.7 219.5 212.1 224.3 208.3 229.0 228.7 218.2 236.5 239.1 26 Other liabilities 316.9 346.6 355.8 355.0 365.8 376.2 383.4 359.0 376.1 352.8 347.5 356.4 27 Total liabilities 5,433.2r 5,715.3 5,764.7 5,808.5 5,853.4 5,940.0 6,007.8 6,092.9 6,074.0 6,052.9 6,093.0 6,142.8 28 Residual (assets less liabilities)7 451.0' 488.8 532.0 505.4 490.6 514.2 514.1 504.8 506.5 508.6 523.4 488.2 Not seasonally adjusted Assets 29 Bank credit 4.949.4' 5,260.6 5,314.2 5.319.6 5,364.4 5,457.3 5,512.5 5,558.2 5,567.5 5,528.2 5,549.6 5,572.5 30 Securities in bank credit 1,339.9 1,452.2 1.484.0 1.487.3 1,498.2 1,543.8 1,562.8 1,529.0 1,553.5 1,491.3 1,520.2 1,538.5 31 U.S. government securities 834.4 925.8 949.1 954.7 979.5 1,003.5 1,018.7 988.2 1,006.0 952.8 987.2 997.5 32 Other securities 505.4 526.4 534.9 532.6 518.8 540.3 544.1 540.8 547.5 538.5 533.0 541.0 33 Loans and leases in bank credit2 .... 3.609.5' 3,808.4 3,830.3 3,832.3 3,866.1 3,913.5 3.949.7 4,029.2 4,014.0 4,036.9 4,029.4 4,034.1 34 Commercial and industrial 789.9 777.6 776.9 777.0 779.9 773.3 766.7 768.3 769.8 768.7 768.3 765.0 35 Real estate 1.851.3' 2,026.7 2,055.3 2.065.5 2,087.8 2,117.7 2,137.7 2,172.8 2,175.2 2,169.5 2,161.1 2,182.7 36 Revolving home equity 192.3 217.0 223.0 228.4 234.5 239.6 245.7 248.9 248.5 247.8 248.9 250.5 37 Other 1,659.0' 1,809.7 1.832.2 1.837.1 1.853.3 1,878.1 1,892.0 1,923.9 1,926.7 1,921.7 1,912.2 1,932.2 38 Consumer 558.5 599.5 594.9 584.6 581.0 586.7 589.1 586.9 582.1 586.4 589.3 591.2 39 Credit cards and related plans . . 215.0 234.0 225.8 219.6 215.3 220.5 221.4 217.9 214.0 217.6 219.6 221.7 40 Other 343.5 365.5 369.1 365.0 365.8 366.2 367.7 368.9 368.2 368.8 369.7 369.5 41 Security3 85.3 70.7 72.0 71.9 71.3 85.8 91.1 94.3 82.0 103.5 105.1 88.8 42 Other loans and leases 324.4' 333.9 331.2 333.3 346.2 350.1 364.9 406.9 404.8 408.8 405.6 406.4 43 Interbank loans 265.0' 275.1 274.4 292.3 293.4 288.6 292.0 284.2 278.7 288.9 273.2 290.8 44 Cash assets4 256.1 286.6 279.1 270.1 269.8 263.5 268.7 273.3 271.8 268.8 270.4 279.5 45 Other assets5 459.6' 479.8 497.7 493.6 497.0 510.9 514.6 526.8 532.5 524.0 526.5 523.0 46 Total assets6 5,855.6r 6,225.9 6,288.9 6,299.4 6,349.8 6,444.9 6,512.3 6,567.6 6,575.9 6,534.8 6,544.7 6,590.9 Liabilities 47 Deposits 3.895.0 4,087.5 4.103.3 4.140.3 4.196.3 4,195.5 4,247.2 4,270.8 4,271.5 4,276.0 4,234.6 4,277.8 48 Transaction 594.9 612.0 595.8 599.8 627.3 612.6 621.2 633.5 595.2 621.8 635.8 688.1 49 Nontransaction 3.300.1 3,475.6 3,507.4 3,540.5 3,569.0 3,582.9 3,626.0 3,637.3 3,676.4 3,654.2 3,598.7 3,589.7 50 Large time 556.2 578.9 584.4 582.1 580.2 593.5 589.5 584.0 584.9 578.0 576.8 591.1 51 Other 2.743.9 2,896.7 2,923.0 2.958.4 2.988.7 2,989.4 3,036.5 3,053.3 3,091.5 3,076.2 3,021.9 2,998.7 52 Borrowings 1.021.2' 1,076.3 1,096.0 1,093.0 1,102.6 1,137.4 1,158.9 1,207.5 1,204.4 1,186.2 1,213.3 1,221.8 53 From banks in the U.S 361.2 354.4 360.5 367.0 374.0 360.5 371.0 369.5 374.3 358.9 365.6 376.0 54 From others 660.1' 721.9 735.4 726.0 728.6 776.9 787.8 838.0 830.1 827.4 847.7 845.9 55 Net due to related foreign offices 170.5' 226.7 226.8 215.4 203.5 223.5 207.3 222.9 219.7 210.8 230.8 235.7 56 Other liabilities 310.5 348.6 361.2 349.7 353.5 375.0 381.8 351.6 364.5 343.6 341.1 352.5 57 Total liabilities 5,397.3r 5,739.1 5,787.3 5,798.5 5,855.9 5,931.4 5,995.1 6,052.8 6,060.2 6,016.6 6,019.7 6,087.8 58 Residual (assets less liabilities)7 458.4' 486.8 501.6 500.9 494.0 513.5 517.3 514.8 515.7 518.2 525.0 503.1 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities 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 2003 2003 Julyr Jan.r Feb.' Mar.' Apr.' May' June' July July 9 July 16 July 23 July 30 Seasonally adjusted Assets 1 Bank credit 2,692.2 2,862.8 2,909.2 2,906.9 2,926.9 3,001.9 3,037.0 3,073.6 3,087.2 3,048.3 3,067.1 3,078.7 ?. Securities in bank credit 715.3 774.4 805.5 803.2 810.0 856.5 880.5 847.4 874.2 813.5 835.9 853.2 3 U.S. government securities 412.1 461.0 479.7 476.5 493.3 520.0 536.0 502.9 522.4 472.3 499.4 507.8 4 Trading account 42.9 41.2 54.5 41.8 40.7 43.6 38.7 37.6 38.8 33.4 36.4 41.8 Investment account 369.2 419.8 425.3 434.7 452.6 476.4 497.3 465.3 483.5 438.9 463.0 466.0 6 Other securities 303.1 313.3 325.7 326.6 316.8 336.6 344.5 344.4 351.8 341.2 336.5 345.4 1 Trading account 169.0 160.0 172.6 171.6 161.5 183.4 188.0 173.2 182.0 170.7 164.2 172.7 8 Investment account 134.1 153.3 153.1 155.0 155.3 153.2 156.5 171.2 169.8 170.5 172.3 172.7 9 State and local government . . 28.3 29.4 29.6 30.1 30.9 31.3 32.2 32.3 32.6 32.4 32.4 31.9 in Other 105.8 123.9 123.5 124.9 124.4 121.9 124.3 138.9 137.2 138.1 139.9 140.8 II Loans and leases in bank credit2 .... 1,976.9 2,088.4 2,103.8 2,103.7 2,116.9 2,145.4 2,156.4 2,226.2 2,213.0 2,234.8 2,231.2 2,225.4 12 Commercial and industrial 500.6 488.1 483.1 479.2 476.9 468.8 462.0 464.2 464.7 464.8 465.4 461.8 n Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 14 Other 500.6 488.1 483.1 479.2 476.9 468.8 462.0 464.2 464.7 464.8 465.4 461.8 1.5 Real estate 889.9 1,008.5 1,030.1 1,037.4 1,043.1 1,058.0 1,065.7 1,089.8 1,094.0 1,087.0 1,078.1 1,097.1 16 Revolving home equity 122.1 139.8 142.3 147.7 150.3 152.6 156.1 159.7 158.4 159.3 160.2 161.4 17 Other 767.9 868.6 887.8 889.7 892.9 905.4 909.6 930.1 935.6 927.7 917.9 935.7 18 Consumer 283.5 297.1 295.0 291.6 290.0 290.2 291.9 289.3 288.3 289.7 290.7 289.4 19 Security3 79.6 63.5 65.0 64.0 64.3 82.6 80.9 86.6 74.3 95.7 98.7 80.4 20 Federal funds sold to and repurchase agreements with broker-dealers 67.2 52.8 54.2 52.6 52.4 63.0 63.5 68.7 55.8 7788..33 80.4 62.8 ?1 Other 12.4 10.6 10.7 11.4 11.8 19.5 17.4 17.9 18.5 17.4 18.3 17.6 22 State and local government 13.0 12.0 12.3 12.5 12.4 12.4 12.7 13.0 13.0 12.8 12.9 13.5 23 Agricultural 9.2 8.2 7.9 7.9 7.7 7.5 7.4 7.3 7.3 7.3 7.3 7.3 24 Federal funds sold to and repurchase agreements with others 14.5 24.4 24.4 24.0 25.2 27.0 28.4 25.8 25.2 26.7 25.5 24.4 ?5 All other loans 66.1 75.6 75.2 76.7 87.8 89.1 96.8 140.2 136.2 140.7 143.0 141.9 76 Lease-financing receivables 120.5 111.1 110.8 110.5 109.4 109.8 110.7 109.9 110.1 110.0 109.6 109.8 27 Interbank loans 176.6 166.0 161.9 171.4 170.7 170.8 165.0 168.8 157.2 169.0 169.0 179.3 28 Federal funds sold to and repurchase agreements with commercial banks 87.1 96.4 90.9 100.0 98.7 100.4 97.4 97.4 88.0 99.1 96.9 104.4 2.9 Other 89.4 69.6 71.0 71.5 72.0 70.3 67.7 71.4 69.2 69.9 72.2 74.8 30 Cash assets4 146.2 149.6 150.9 148.1 135.6 132.7 141.4 144.1 142.1 136.8 151.8 148.2 31 Other assets5 321.0 334.4 354.7 347.1 347.0 357.0 360.2 364.8 364.0 363.7 369.9 365.0 32 Total assets6 3,291.7 3,468.1 3,532.0 3,528.6 3,536.4 3,618.2 3,659.5 3,707.7 3,707.1 3,674.0 3,714.2 3,727.8 Liabilities 33 Deposits 1,883.1 1,985.8 1,986.5 2,005.4 2,029.8 2,036.5 2,065.7 2,083.4 2,065.2 2,082.6 2,080.0 2,096.4 34 Transaction 299.2 288.4 290.5 290.7 295.9 297.0 299.8 306.8 280.7 300.8 318.2 337.3 35 Nontransaction 1,583.9 1,697.4 1,696.0 1,714.7 1,733.9 1,739.6 1,765.9 1,776.6 1,784.6 1,781.7 1,761.8 1,759.1 36 Large time 259.0 271.0 273.6 269.0 267.1 279.0 271.1 268.9 267.2 262.3 262.9 278.0 37 Other 1,324.9 1,426.4 1,422.4 1,445.7 1,466.8 1,460.5 1,494.8 1,507.7 1,517.3 1,519.5 1,498.9 1,481.2 38 Borrowings 689.5 655.9 683.0 689.4 687.2 712.4 736.0 782.8 783.4 765.9 786.1 790.5 39 From banks in the U.S 245.3 193.9 196.5 204.9 209.1 200.5 213.5 210.8 219.9 205.7 207.6 207.5 40 From others 444.2 462.0 486.6 484.5 478.0 511.9 522.5 572.0 563.5 560.2 578.5 583.0 41 Net due to related foreign offices 165.6 210.1 210.1 208.9 199.3 211.9 196.3 217.2 215.2 207.1 225.9 227.2 42 Other liabilities 254.2 275.7 279.7 275.1 284.8 292.7 298.8 272.2 290.1 265.8 259.2 269.9 43 Total liabilities 2,992.4 3,127.5 3,159.4 3,178.7 3,201.1 3,253.6 3,296.8 3,355.6 3,353.9 3,321.3 3,351.1 3,384.0 44 Residual (assets less liabilities)7 299.3 340.7 372.5 349.9 335.3 364.7 362.7 352.2 353.2 352.7 363.1 343.8 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • October 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 2003 2003 July Jan.' Feb.' Mar.' Apr.' May' June' July July 9 July 16 July 23 July 30 Not seasonally adjusted Assets 45 Bank credit 2,680.6r 2,870.0 2,911.3 2,900.8 2,923.4 3,002.9 3,039.2 3,061.3 3,081.1 3,035.9 3,044.7 3,064.8 46 Securities in bank credit 703.9 783.0 813.8 805.5 806.4 855.1 874.8 834.0 861.5 798.9 819.2 842.0 47 U.S. government securities 407.0 464.1 485.2 478.8 491.7 518.8 531.7 496.7 517.1 465.2 491.0 503.2 48 Trading account 42.4 41.5 55.1 42.1 40.6 43.5 38.4 37.2 38.4 32.9 35.8 41.4 49 Investment account 364.6 422.5 430.1 436.7 451.1 475.2 493.3 459.5 478.6 432.3 455.2 461.8 50 Mortgage-backed securities . 289.3 325.1 331.3 334.7 354.4 380.2 389.4 364.1 380.6 338.0 360.9 369.6 51 Other 75.3 97.5 98.8 102.0 96.7 95.0 103.9 95.4 98.0 94.3 94.3 92.2 52 One year or less 18.6 21.3 22.9 24.4 24.6 23.2 24.3 24.1 24.5 23.8 24.3 23.4 53 One to five years 43.9 58.6 57.4 57.3 55.2 55.2 57.3 51.2 51.4 50.3 51.2 50.5 54 More than five years .... 12.7 17.5 18.6 20.3 16.9 16.7 22.3 20.1 22.0 20.2 18.8 18.3 55 Other securities 296.9 318.9 328.5 326.7 314.7 336.3 343.1 337.3 344.5 333.7 328.2 338.9 56 Trading account 165.5 162.9 174.1 171.7 160.5 183.2 187.3 169.6 178.2 167.0 160.2 169.4 57 Investment account 131.3 156.0 154.4 155.0 154.3 153.1 155.8 167.7 166.3 166.7 168.0 169.4 58 State and local government . 27.7 30.0 29.8 30.1 30.7 31.3 32.1 31.6 31.9 31.7 31.6 31.3 59 Other 103.6 126.1 124.6 124.9 123.6 121.8 123.8 136.1 134.4 135.0 136.4 138.1 60 Loans and leases in bank credit2 . . . 1,976.7' 2,087.1 2,097.6 2,095.3 2,117.0 2,147.8 2,164.4 2,227.3 2,219.6 2,237.1 2,225.5 2,222.8 61 Commercial and industrial 501.8' 483.6 481.1 479.1 479.5 471.9 464.3 465.4 467.3 465.9 465.5 461.7 62 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 63 Other 501.8' 483.6 481.1 479.1 479.5 471.9 464.3 465.4 467.3 465.9 465.5 461.7 64 Real estate 890.0' 1,007.4 1,025.8 1,030.6 1,041.3 1,062.3 1,068.1 1,089.9 1,095.7 1,088.3 1,076.5 1,095.6 65 Revolving home equity 122.4 139.0 142.6 146.1 150.2 153.8 157.0 160.2 158.9 159.8 160.6 161.9 66 Other 449.8 545.4 560.2 561.1 569.7 588.2 591.5 613.1 621.0 611.9 599.2 617.0 67 Commercial 317.7' 323.0 323.0 323.4 321.3 320.3 319.6 316.6 315.9 316.6 316.6 316.8 68 Consumer 281.9 301.9 298.2 292.1 290.6 291.1 292.0 287.4 286.5 287.7 288.7 287.3 69 Credit cards and related plans . 110.6 115.3 109.8 105.9 103.5 103.8 104.8 99.9 99.3 100.0 100.6 100.0 70 Other 171.3 186.6 188.5 186.2 187.1 187.3 187.2 187.5 187.2 187.7 188.1 187.3 71 Security3 78.6' 63.0 63.9 63.5 62.9 77.3 82.1 85.4 72.8 94.5 96.6 80.0 72 Federal funds sold to and repurchase agreements with broker-dealers 66.3 52.5 53.4 52.2 51.3 59.0 64.5 67.7 54.7 77.3 78.7 62.4 73 Other 12.2 10.6 10.6 11.3 11.6 18.3 17.6 17.6 18.1 17.2 17.9 17.5 74 State and local government 13.0' 12.0 12.3 12.5 12.4 12.4 12.7 13.0 13.0 12.8 12.9 13.5 75 Agricultural 9.3 8.2 7.8 7.8 7.7 7.6 7.5 7.4 7.4 7.4 7.4 7.4 76 Federal funds sold to and repurchase agreements with others 14.5' 24.4 24.4 24.0 25.2 27.0 28.4 25.8 25.2 26.7 25.5 24.4 77 All other loans 67.7 73.7 71.9 74.5 87.6 88.5 98.9 143.6 142.0 144.1 143.6 143.8 78 Lease-financing receivables 120.0 112.8 112.1 111.2 109.8 109.8 110.3 109.4 109.8 109.6 108.9 109.2 79 Interbank loans 176.7' 169.2 160.1 171.5 174.1 171.5 169.3 168.9 158.8 170.0 164.6 178.4 80 Federal funds sold to and repurchase agreements with commercial banks 87.2' 98.2 90.0 100.0 100.6 100.9 99.9 97.4 88.9 99.6 94.3 103.9 81 Other 89.5' 71.0 70.1 71.4 73.5 70.7 69.4 71.4 69.9 70.3 70.3 74.5 82 Cash assets4 140.7' 158.4 150.9 143.2 138.4 131.8 137.0 138.7 138.4 134.1 138.8 142.2 83 Other assets5 320.4 336.9 351.6 345.5 346.6 354.8 356.2 364.2 366.4 364.0 365.7 362.3 84 Total assets6 3,274.2r 3,490.0 3,528.7 3,515.7 3,538.5 3,616.6 3,657.4 3,689.5 3,701.3 3,660.4 3,670.4 3,704.6 Liabilities 85 Deposits 1,877.3' 1,986.7 1,990.5 2,003.4 2,037.2 2,032.2 2,066.1 2,077.4 2,075.3 2,080.6 2,053.7 2,082.5 86 Transaction 293.5' 297.2 286.2 286.3 302.0 292.7 297.0 300.9 278.4 296.2 300.8 331.8 87 Nontransaction 1,583.8' 1,689.5 1,704.4 1,717.2 1,735.2 1,739.5 1,769.1 1,776.5 1,796.9 1,784.4 1,752.9 1,750.7 88 Large time 257.5' 272.2 274.6 267.6 265.3 277.2 270.6 267.3 266.7 260.8 260.7 275.9 89 Other l,326.3r 1,417.3 1,429.8 1,449.6 1,469.9 1,462.3 1,498.5 1,509.3 1,530.1 1,523.6 1,492.2 1,474.8 90 Borrowings 683.6' 669.0 685.2 685.8 691.3 718.2 735.0 775.8 779.6 761.6 778.6 777.7 91 From banks in the U.S 242.3' 198.4 200.0 208.3 213.2 202.9 211.6 207.4 217.9 202.9 202.9 203.2 92 From nonbanks in the U.S 441.3' 470.6 485.2 477.5 478.1 515.3 523.4 568.4 561.7 558.8 575.7 574.6 93 Net due to related foreign offices 160.7' 211.6 214.3 204.8 190.6 211.0 195.2 211.1 206.2 199.7 220.1 223.8 94 Other liabilities 247.7 277.7 285.2 269.8 272.6 291.6 297.2 264.8 278.5 256.6 252.7 266.0 95 Total liabilities 2,969.3r 3,145.0 3,175.2 3,163.8 3,191.8 3,253.0 3,293.6 3,329.1 3,339.6 3,298.6 3,305.0 3,350.0 96 Residual (assets less liabilities)7 304.9' 345.0 353.5 351.9 346.7 363.6 363.8 360.5 361.7 361.9 365.3 354.6 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2002 2003 2003 Julyr Jan.r Feb/ Mar/ Apr/ May' June' July July 9 July 16 July 23 July 30 Seasonally adjusted Assets 1 Bank credit 2,273.6 2,388.6 2,406.0 2,422.1 2,442.7 2,456.0 2,475.6 2,502.0 2,489.6 2,496.6 2,514.5 2,514.3 2 Securities in bank credit 637.6 667.4 669.4 679.1 690.3 689.5 688.4 696.8 692.9 694.3 703.7 699.0 3 U.S. government securities 429.0 460.0 463.0 473.2 486.3 485.5 487.4 493.3 489.9 489.5 498.9 496.9 4 Other securities 208.6 207.5 206.4 205.9 204.0 204.0 201.0 203.5 203.0 204.8 204.8 202.1 5 Loans and leases in bank credit2 .... 1,636.0 1,721.1 1,736.7 1,743.0 1,752.4 1,766.5 1,787.1 1,805.2 1,796.6 1,802.3 1,810.9 1,815.4 6 Commercial and industrial 287.2 295.5 297.3 298.0 298.2 298.8 300.2 302.0 300.3 301.6 303.1 303.8 7 Real estate 962.8 1,017.8 1,029.4 1,037.1 1,048.3 1,055.9 1,070.8 1,084.5 1,081.4 1,082.5 1,087.7 1,088.5 8 Revolving home equity 70.3 77.7 80.4 82.8 84.5 85.8 88.8 89.1 89.9 88.3 89.1 89.1 9 Other 892.5 940.1 949.0 954.3 963.8 970.1 982.0 995.4 991.5 994.1 998.6 999.3 10 Consumer 280.5 294.8 296.7 295.3 293.8 297.7 300.6 303.1 300.3 302.3 304.4 307.0 ] 1 Security3 6.8 8.0 8.2 8.1 8.1 8.7 9.2 9.0 9.0 9.1 8.8 9.1 12 Other loans and leases 98.7 105.1 105.1 104.5 104.0 105.4 106.4 106.5 105.6 106.9 106.9 107.1 13 Interbank loans 92.6 112.3 115.3 114.4 111.6 122.1 125.7 120.0 117.6 124.2 118.8 120.2 14 Cash assets4 117.4 124.0 128.7 131.6 133.7 132.7 133.9 136.8 131.5 138.1 139.6 139.8 15 Other assets5 139.2 142.9 146.1 148.2 150.4 156.1 158.4 162.6 166.1 160.0 160.8 160.7 16 Total assets6 2,592.5 2,736.0 2,764.8 2,785.2 2,807.6 2,835.9 2,862.4 2,890.0 2,873.4 2,887.5 2,902.2 2,903.2 Liabilities 17 Deposits 2,030.6 2,094.6 2,106.0 2,131.9 2,147.4 2,171.3 2,190.6 2,207.0 2,195.8 2,208.8 2,208.1 2,216.3 18 Transaction 303.8 309.8 313.0 317.2 325.0 325.4 326.5 335.3 314.4 329.0 344.7 359.7 19 Nontransaction 1,726.8 1,784.8 1,793.0 1,814.7 1,822.4 1,846.0 1,864.1 1,871.8 1,881.4 1,879.8 1,863.4 1,856.6 20 Large time 298.7 306.6 309.9 314.5 315.0 316.3 318.8 316.7 318.1 317.1 316.1 315.2 21 Other 1,428.0 1,478.2 1,483.1 1,500.1 1,507.4 1,529.7 1,545.3 1,555.1 1,563.3 1,562.7 1,547.3 1,541.4 22 Borrowings 337.6 407.3 410.7 407.2 411.3 419.3 423.8 431.7 424.8 424.6 434.8 444.1 23 From banks in the U.S 118.9 156.0 160.5 158.8 160.8 157.7 159.4 162.1 156.5 156.0 162.7 172.8 24 From others 218.7 251.3 250.2 248.5 250.5 261.6 264.4 269.6 268.4 268.6 272.1 271.3 25 Net due to related foreign offices 9.8 15.1 12.6 10.7 12.8 12.4 12.0 11.8 13.5 11.1 10.7 11.9 26 Other liabilities 62.8 71.0 76.1 80.0 80.9 83.4 84.6 86.8 86.0 87.0 88.4 86.5 27 Total liabilities 2,440.8 2,587.9 2,605.3 2,629.7 2,652.4 2,686.4 2,711.0 2,737.3 2,720.1 2,731.5 2,741.9 2,758.8 28 Residual (assets less liabilities)7 151.7 148.2 159.5 155.5 155.2 149.5 151.4 152.6 153.3 155.9 160.3 144.4 Not seasonally adjusted Assets 29 Bank credit 2,268.8 2,390.6 2,402.9 2,418.8 2,440.9 2,454.4 2,473.3 2,496.9 2,486.4 2,492.3 2,504.9 2,507.7 30 Securities in bank credit 636.0 669.2 670.2 681.8 691.8 688.7 688.0 695.0 692.0 692.4 701.0 696.4 31 U.S. government securities 427.4 461.7 463.8 475.9 487.8 484.7 487.0 491.5 489.0 487.6 496.3 494.3 32 Other securities 208.6 207.5 206.4 205.9 204.0 204.0 201.0 203.5 203.0 204.8 204.8 202.1 33 Loans and leases in bank credit2 .... 1,632.8 1,721.3 1,732.7 1,737.0 1,749.1 1,765.7 1,785.3 1,801.9 1,794.4 1,799.8 1,803.9 1,811.3 34 Commercial and industrial 288.1 294.1 295.9 297.9 300.4 301.4 302.4 302.9 302.6 302.8 302.9 303.3 35 Real estate 961.3 1,019.3 1,029.5 1,034.9 1,046.5 1,055.4 1,069.6 1,082.9 1,079.4 1,081.2 1,084.7 1,087.1 36 Revolving home equity 69.9 78.0 80.5 82.4 84.3 85.9 88.7 88.7 89.6 88.0 88.3 88.7 37 Other 891.4 941.3 949.0 952.6 962.2 969.5 980.9 994.2 989.8 993.2 996.3 998.4 38 Consumer 276.6 297.7 296.7 292.5 290.4 295.6 297.1 299.5 295.6 298.7 300.6 303.9 39 Credit cards and related plans .. 104.4 118.7 116.1 113.8 111.7 116.6 116.6 118.0 114.6 117.5 119.0 121.7 40 Other 172.2 178.9 180.6 178.7 178.7 178.9 180.5 181.5 181.0 181.1 181.6 182.2 41 Security3 6.7 7.6 8.1 8.4 8.4 8.5 9.1 8.9 9.3 9.0 8.4 8.8 42 Other loans and leases 100.0 102.7 102.6 103.3 103.5 104.8 107.0 107.8 107.5 108.2 107.3 108.2 43 Interbank loans 88.3 106.0 114.3 120.8 119.3 117.1 122.7 115.4 120.0 118.9 108.6 ! 12.4 44 Cash assets4 115.4 128.2 128.3 126.9 131.4 131.7 131.7 134.6 133.4 134.7 131.6 137.3 45 Other assets5 139.2 142.9 146.1 148.2 150.4 156.1 158.4 162.6 166.1 160.0 160.8 160.7 46 Total assets6 2,581.4 2,735.8 2,760.2 2,783.7 2,811.3 2,828.2 2,854.9 2,878.0 2,874.5 2,874.4 2,874.3 2,886.3 Liabilities 47 Deposits 2,017.8 2,100.8 2,112.7 2,136.9 2,159.1 2,163.3 2,181.1 2,193.4 2,196.3 2,195.4 2,180.9 2,195.3 48 Transaction 301.4 314.7 309.7 313.6 325.3 319.9 324.2 332.6 316.8 325.6 335.1 356.2 49 Nontransaction 1,716.3 1,786.1 1,803.1 1,823.3 1,833.8 1,843.4 1,856.8 1,860.8 1,879.5 1,869.8 1,845.8 1,839.0 50 Large time 298.7 306.6 309.9 314.5 315.0 316.3 318.8 316.7 318.1 317.1 316.1 315.2 51 Other 1,417.6 1,479.4 1,493.2 1,508.8 1,518.8 1,527.1 1,538.0 1,544.0 1,561.4 1,552.6 1,529.7 1,523.9 52 Borrowings 337.6 407.3 410.7 407.2 411.3 419.3 423.8 431.7 424.8 424.6 434.8 444.1 53 From banks in the U.S 118.9 156.0 160.5 158.8 160.8 157.7 159.4 162.1 156.5 156.0 162.7 172.8 54 From others 218.7 251.3 250.2 248.5 250.5 261.6 264.4 269.6 268.4 268.6 272.1 271.3 55 Net due to related foreign offices 9.8 15.1 12.6 10.7 12.8 12.4 12.0 11.8 13.5 11.1 10.7 11.9 56 Other liabilities 62.8 71.0 76.1 80.0 80.9 83.4 84.6 86.8 86.0 87.0 88.4 86.5 57 Total liabilities 2,427.9 2,594.1 2,612.1 2,634.7 2,664.1 2,678.4 2,701.5 2,723.7 2,720.6 2,718.1 2,714.7 2,737.8 58 Residual (assets less liabilities)7 153.5 141.7 148.2 149.0 147.2 149.9 153.4 154.3 154.0 156.3 159.7 148.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic NonfinancialS tatistics • October 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 2002 2003 2003 July Jan. Feb. Mar. Apr. May June July July 9 July 16 July 23 July 30 Seasonally adjusted Assets 1 Bank credit 613.3 633.6 646.7 663.6 654.6r 668.3 668.8 645.3 650.3 649.5 641.2 640.0 2 Securities in bank credit 238.9 268.5 279.1 284.0 277.4' 288.8 287.9 266.4 270.1 267.4 265.4 262.2 U.S. government securities 76.3 109.4 116.4 122.6 125.4 130.9 129.1 119.4 120.3 120.1 120.1 117.7 4 Other securities 162.6 159.1 162.7 161.3 152.0r 158.0 158.8 147.0 149.8 147.3 145.3 144.5 5 Loans and leases in bank credit2 .... 374.4 365.1 367.6 379.7 377.2 379.4 381.0 378.8 380.2 382.1 375.8 377.8 6 Commercial and industrial 190.9 177.2 174.1 171.7 172.1 169.9 162.4 161.7 163.0 162.8 161.0 160.3 7 Real estate 18.8 19.7 19.7 19.8 19.0 19.2 19.2 19.1 19.1 19.1 19.0 19.2 8 Security1 91.6 103.4 108.1 121.4 118.0 118.5 121.2 118.1 117.5 120.6 116.4 118.1 y Other loans and leases 73.2 64.8 65.6 66.7 68.1 71.8 78.2 80.0 80.6 79.6 79.3 80.3 10 Interbank loans 17.1 28.1 27.0 27.2 22.5 24.7 30.8 33.2 32.8 32.2 34.5 34.0 11 Cash assets4 47.8 40.1 38.7 43.8 50.1 52.2 56.2 56.1 56.9 57.0 55.8 54.3 12 Other assets5 27.6 34.6 35.1 31.1 35. r 41.6' 45.2 43.9 40.1 42.7 44.0 48.6 13 Total assets6 705.5 735.9 747.1 765.3 761.71" 786.3r 800.5 778.0 779.7 781.0 775.0 776.4 Liabilities 14 Deposits 500.7 426.6 442.9 448.4 436.4 438.7 450.6 463.0 460.8 462.7 464.4 466.8 15 Transaction 9.9 9.7 10.3 11.5 11.3 11.0 11.6 11.7 11.1 11.8 11.2 12.4 16 Nontransaction 490.8 416.8 432.6 436.9 425.1 427.7 439.0 451.3 449.7 450.9 453.2 454.4 17 Borrowings 201.4 273.6 274.7 293.4 298.7 307.1 318.9 300.3 297.0 304.7 294.2 300.8 18 From banks in the U.S 20.1 31.0 31.1 33.7 27.5 31.6 35.2 37.3 34.8 41.0 34.2 38.6 19 From others 181.2 242.6 243.6 259.7 271.2 275.5 283.8 263.0 262.2 263.7 259.9 262.2 20 Net due to related foreign offices -82.3 -70.4 -78.4 -83.8 -72.9' -77.8 -81.9 -86.3 -77.7 -84.1 -85.3 -96.1 21 Other liabilities 91.4 95.8 99.9 95.4 91.2 105.3' 110.0 104.1 103.0 102.4 102.3 106.9 22 Total liabilities 711.1 725.6 739.0 753.4 753.4 773.3r 797.5 781.1 783.0 785.8 775.5 778.4 23 Residual (assets less liabilities)7 -5.6 10.3 8.1 11.9 8.4 12.9 3.0 -3.1 -3.3 -4.8 -.6 -2.0 Not seasonally adjusted Assets 24 Bank credit 607.0 641.3 651.1 661.8 654.4' 663.6 665.4 637.9 640.3 643.8 632.3 633.5 25 Securities in bank credit 238.9 268.5 279.1 284.0 277.4' 288.8 287.9 266.4 270.1 267.4 265.4 262.2 26 U.S. government securities 76.3 109.4 116.4 122.6 125.4 130.9 129.1 119.4 120.3 120.1 120.1 117.7 27 Trading account 10.7 32.6 36.4 37.2 39.7 43.0 42.9 40.2 37.0 41.4 42.3 41.5 28 Investment account 65.7 76.8 80.0 85.5 85.7 87.9 86.2 79.2 83.3 78.8 77.8 76.2 29 Other securities 162.6 159.1 162.7 161.3 152.0' 158.0 158.8 147.0 149.8 147.3 145.3 144.5 30 Trading account 109.4 101.9 102.0 101.7 97.9 105.1 105.6 95.6 97.9 96.0 94.0 93.7 31 Investment account 53.2 57.2 60.7 59.7 54.2 52.9 53.2 51.4 51.9 51.3 51.3 50.8 32 Loans and leases in bank credit2 .... 368.1 372.8 372.0 377.9 377.0 374.7 377.5 371.5 370.2 376.3 366.9 371.3 33 Commercial and industrial 189.7 177.3 175.6 173.2 171.1 168.1 161.9 160.7 162.1 162.1 159.9 158.9 34 Real estate 18.8 19.7 19.7 19.8 19.0 19.2 19.2 19.1 19.1 19.1 19.0 19.2 35 Security3 87.9 110.4 111.0 117.3 118.3 116.2 118.7 113.3 109.7 116.8 111.1 115.1 36 Other loans and leases 71.6 65.5 65.7 67.6 68.6 71.3 77.8 78.3 79.4 78.3 77.0 78.1 37 Interbank loans 17.1 28.1 27.0 27.2 22.5 24.7 30.8 33.2 32.8 32.2 34.5 34.0 38 Cash assets4 45.3 43.1 39.7 42.6 47.9 50.5 53.5 53.0 53.7 53.8 52.5 51.9 39 Other assets5 26.6 35.7 35.6 31.8 34.9 41.7' 43.4 42.4 38.4 41.5 42.3 47.3 40 Total assets6 695.6 747.8r 753.0 763.1 759.2r 780.0r 792.6 766.1 764.8 770.8 761.1 766.1 Liabilities 41 Deposits 489.9 442.7 453.0 452.5 442.4 444.1 448.7 453.1 449.1 453.1 454.7 458.1 42 Transaction 9.8 10.0 10.3 11.1 10.7 10.6 11.3 11.6 11.1 11.8 11.0 12.3 43 Nontransaction 480.1 432.7 442.8 441.3 431.7 433.6 437.5 441.5 438.0 441.3 443.7 445.7 44 Borrowings 201.4 273.6 274.7 293.4 298.7 307.1 318.9 300.3 297.0 304.7 294.2 300.8 45 From banks in the U.S 20.1 31.0 31.1 33.7 27.5 31.6 35.2 37.3 34.8 41.0 34.2 38.6 46 From others 181.2 242.6 243.6 259.7 271.2 275.5 283.8 263.0 262.2 263.7 259.9 262.2 47 Net due to related foreign offices -86.3 -67.8 -77.3 —81,6r -73.3 -77.5 -83.7 -89.4 -81.8 -87.3 -88.4 -98.3 48 Other liabilities 89.2 97.4 100.7 97.0 90.9 105.6' 108.4 101.6 99.9 99.8 100.0 105.1 49 Total liabilities 694.1 746.0 751.1 761.3 758.6r 779.4r 792.3 765.5 764.2 770.3 760.5 765.6 50 Residual (assets less liabilities)7 1.5 1.9 1.9 1.8 .6 .6 .3 .6 .6 .6 .6 .6 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A21 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities '—Continued F. Memo items Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2002 2003 2003 July Jan. Feb. Mar. Apr. May June July July 9 July 16 July 23 July 30 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 105.8 107.6 116.8 115.1 105.7 128.1 134.9' 112.5 121.1 112.8 103.9 110.2 2 Revaluation losses on off-balancesheet items8 89.7 86.2 94.9 91.3 81.4 105.1 109.9 85.3 93.9 84.7 75.5 83.8 3 Mortgage-backed securities9 322.2 370.9 376.9 381.4 400.8 427.1 436.7 412.6 429.2 385.9 409.0 419.0 4 Pass-through 237.0 271.6 276.9 276.2 288.5 314.2 324.7 301.5 317.3 277.7 301.1 303.6 5 CMO, REMIC, and other 85.2 99.3 100.0 105.1 112.2 112.9 111.9 111.1 111.9 108.2 107.9 115.4 6 Net unrealized gains (losses) on available-for-sale securities10 8.3 11.8 11.7 11.7 10.6 12.1 14.1 7.0 10.1 8.6 6.3 2.3 7 Off-shore credit to U.S. residents" .... 19.1 18.3 18.2 18.2 17.5 17.3 16.6 15.5 15.2 15.4 15.6 15.7 8 Securitized consumer loans12 145.5 149.7 150.6 152.5 154.2 155.0 156.7 161.1 160.9 160.7 160.5 162.4 9 Credit cards and related plans 128.1 132.2 134.8 136.7 138.7 139.4 140.6 144.0 144.0 143.9 143.8 144.4 10 Other 17.4 17.5 15.8 15.8 15.5 15.5 16.1 17.0 16.9 16.8 16.7 18.0 11 Securitized business loans12 10.6r 10.5r 10.6r 10.4r 10.0' 10.2r 9.9' 8.4 9.7 7.9 7.9 7.8 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities9 295.7 308.7 314.5 325.7 335.6 334.3 332.3 326.8 328.3 323.9 328.7 326.0 13 Securitized consumer loans12 203.0 205.4 204.2 202.8 205.2 205.0 205.0 201.8 202.6 201.7 201.7 200.9 14 Credit cards and related plans 199.4 197.0 195.8 194.3 196.9 196.8 196.9 193.7 194.5 193.6 193.6 192.8 15 Other 3.6 8.5 8.4 8.5 8.3 8.2 8.1 8.1 8.1 8.1 8.1 8.1 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 61.6 67.0 67.1 65.4 64.9 73.5 72.6 65.3 66.4 65.9 64.7 63.8 17 Revaluation losses on off-balancesheet items8 57.4 63.0 64.9 63.6 62.4 72.6 72.6 64.8 66.2 65.2 64.0 63.3 18 Securitized business loans12 9.4 5.6 4.6 4.1 3.3 3.0 2.5 1.6 1.6 1.6 1.6 1.6 NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8 acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table ratio procedure is used to adjust past levels. 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer in the United States, all of which are included in "Interbank loans." being published in the Bulletin. Instead, abbreviated balance sheets for both large and small 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry domestically chartered banks have been included in table 1.26, parts C and D. Data are both securities. merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. 4. Includes vault cash, cash items in process of collection, balances due from depository branches and agencies of foreign banks have been replaced by balance sheet estimates of all institutions, and balances due from Federal Reserve Banks. foreign-related institutions and are included in table 1.26, part E. These data are break- 5. Excludes the due-from position with related foreign offices, which is included in "Net adjusted. due to related foreign offices." The not-seasonally-adjusted data for all tables now contain additional balance sheet items, 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for which were available as of October 2, 1996. transfer risk. Loans are reported gross of these items. 1. Covers the following types of institutions in the fifty states and the District of Columbia: 7. This balancing item is not intended as a measure of equity capital for use in capital domestically chartered commercial banks that submit a weekly report of condition (large adequacy analysis. On a seasonally adjusted basis, this item reflects any differences in the domestic); other domestically chartered commercial banks (small domestic); branches and seasonal patterns estimated for total assets and total liabilities. agencies of foreign banks, and Edge Act and agreement corporations (foreign-related institu- 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity tions). Excludes International Banking Facilities. Data are Wednesday values or pro rata and equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. averages of Wednesday values. Large domestic banks constitute a universe; data for small 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. domestic banks and foreign-related institutions are estimates based on weekly samples and on government-sponsored enterprises, and private entities. quarter-end condition reports. Data are adjusted for breaks caused by reclassifications of 10. Difference between fair value and historical cost for securities classified as availableassets and liabilities. for-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are The data for large and small domestic banks presented on pp. A17-19 are adjusted to restated to include an estimate of these tax effects. remove the estimated effects of mergers between these two groups. The adjustment for 11. Mainly commercial and industrial loans but also includes an unknown amount of credit mergers changes past levels to make them comparable with current levels. Estimated extended to other than nonfinancial businesses. quantities of balance sheet items acquired in mergers are removed from past data for the bank 12. Total amount outstanding. group that contained the acquired bank and put into past data for the group containing the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • October 2003 1.32 COMMERCIAL PAPER OUTSTANDING Millions of dollars, seasonally adjusted, end of period Year ending December 2003 IItteemm 1998 1999 2000 2001 2002 Jan. Feb. Mar. Apr. May June 1 All issuers 1,163,303 1,403,023 1,619,274 1,458,870 1,347,997 1,373,133 1,346,782 1,341,270 1,342,147 1,365,704 1,324,911 Financial companies' 2 Dealer-placed paper, total2 614,142 786,643 963.070 967,748 976,163 983,059 952,868 946,773 961,002 1,003,088 974,116 3 Directly placed paper, total3 322,030 337,240 312,771 266,276 217,787 236,820 239,037 244,504 232,879 222,597 219,960 4 Nonfinancial companies4 227,132 279,140 343,433 224,847 154,047 153,254 154,876 149,993 148,266 140,020 130,835 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Date of change Rate Period Av r e a r te a ge Av r e a r te a ge 2000—Jan. 1 8.50 2000 9.23 2001—Jan. 9.05 2002—Jan. Feb. 3 8.75 2001 6.91 Feb. 8.50 Feb. Mar. 22 9.00 2002 4.67 Mar. 8.32 Mar. May 17 9.50 Apr. 7.80 Apr. 2000—Jan 8.50 May 7.24 May 2001—Jan. 4 9.00 Feb 8.73 June 6.98 June Feb. 1 8.50 Mar. 8.83 July 6.75 July Mar. 21 8.00 Apr 9.00 Aug. 6.67 Aug. Apr. 19 7.50 May 9.24 Sept 6.28 Sept. May 16 7.00 June 9.50 Oct. 5.53 Oct. June 28 6.75 July 9.50 Nov. 5.10 Nov. Aug. 22 6.50 Aug 9.50 Dec. 4.84 Dec. Sept. 18 6.00 Sept 9.50 Oct. 3 5.50 Oct 9.50 2003—Jan. Nov. 7 5.00 Nov 9.50 Feb. Dec. 12 4.75 Dec 9.50 Mar. Apr. 2002—Nov. 7 4.25 May June 2003—June 27 4.00 July Aug. 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 Apr. May June July June 27 July 4 July 11 July 18 July 25 MONEY MARKET INSTRUMENTS 1 F d 1 f d 121 66..2244 1 67 1 26 1 26 1 22 1 01 1.21 1.13 0.96 1.02 1.01 n.a. 2.25 2.25 2.20 2.00 2.21 2.00 2.00 2.00 2.00 Commercial paper3-5-6 Nonfinancial 6.27 3.78 1.67 1.22 1.21 1.06 1.01 0.97 1.01 1.01 1.01 1.02 6.29 3.68 1.67 1.21 1.20 1.03 1.02 0.95 1.01 1.01 1.01 1.02 6.31 3.65 1.69 1.20 1.19 1.01 1.01 0.92 1.02 1.01 1.00 1.01 Financial 6.28 3.80 1.68 1.24 1.24 1.08 1.02 0.98 1.03 1.02 1.01 1.02 6.30 3.71 1.69 1.23 1.22 1.04 1.03 0.95 1.03 1.02 1.02 1.03 6.33 3.65 1.70 1.23 1.20 1.02 1.03 0.94 1.03 1.02 1.02 1.02 Certificates of deposit, secondary market 6.35 3.84 1.72 1.26 1.26 1.10 1.05 1.00 1.05 1.05 1.05 1.05 10 3-month 6.46 3.71 1.73 1.24 1.22 1.04 1.05 0.98 1.05 1.04 1.05 1.05 6.59 3.66 1.81 1.23 1.19 1.02 1.06 0.97 1.05 1.05 1.06 1.07 6.45 3.70 1.73 1.23 1.21 1.03 1.04 0.96 1.05 1.04 1.05 1.04 U.S. Treasury bills Secondary market3-5 2.43 1.60 1.14 1.06 0.96 0.88 0.83 0.84 0.88 0.84 0.88 5.82 3.40 1.61 1.13 1.07 0.92 0.90 0.86 0.87 0.88 0.89 0.91 55..9900 33..3344 1.68 1.14 1.08 0.92 0.95 0.89 0.94 0.94 0.94 0.96 U.S. TREASURY NOTES AND BONDS Constant maturities9 6.11 3.49 2.00 1.27 1.18 1.01 1.12 1.02 1.07 1.08 1.10 1.13 6.26 3.83 2.64 1.62 1.42 1.23 1.47 1.28 1.31 1.35 1.45 1.56 18 3-year 6.22 4.09 3.10 2.06 1.75 1.51 1.93 1.59 1.67 1.74 1.90 2.07 6.16 4.56 3.82 2.93 2.52 2.27 2.87 2.36 2.49 2.60 2.82 3.08 6.20 4.88 4.30 3.47 3.07 2.84 3.45 2.93 3.07 3.19 3.40 3.65 21 10-year 6.03 5.02 4.61 3.96 3.57 3.33 3.98 3.42 3.58 3.72 3.93 4.18 6.23 5.63 5.43 4.91 4.52 4.34 4.92 4.43 4.56 4.68 4.88 5.09 Treasury long-term average'0-" nn..aa.. nn..aa.. 5.41 4.99 4.61 44..4455 5.00 4.54 4.67 4.78 4.95 5.15 STATE AND LOCAL NOTES AND BONDS Moody's series12 5.58 5.01 4.87 4.60 4.16 4.07 4.59 4.25 4.34 4.40 4.56 4.75 25 Baa .. 6.19 5.75 5.64 5.34 4.91 4.68 5.17 4.85 4.94 5.00 5.12 5.31 55..7711 55..1155 55..0044 44..7744 44..4411 44..3333 44..7744 4.47 4.51 4.56 4.71 4.83 CORPORATE BONDS 7.98 7.49 7.10 6.32 5.88 5.70 6.13 5.76 5.88 5.97 6.09 6.24 Rating group 28 Aaa15 7.62 7.08 6.49 5.74 5.22 4.97 5.49 5.06 5.20 5.30 5.45 5.62 29 Aa 7.83 7.26 6.93 6.22 5.85 5.72 6.07 5.76 5.87 5.94 6.04 6.16 30 A 8.11 7.67 7.18 6.45 6.08 5.92 6.35 5.96 6.10 6.23 6.30 6.44 31 Baa 8.37 7.95 7.80 6.85 6.38 6.19 6.62 6.26 6.36 6.42 6.57 6.75 MEMO Dividend-price ratio16 11..1155 11..3322 11..6611 11..8811 11..7722 11..6644 11..6644 11..6666 1.64 11..6633 1.63 1.64 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. A! 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 DomesticN onfinancialS tatistics • October 2003 1.36 STOCK MARKET Selected Statistics 2002 2003 IInnddiiccaattoorr 22000000 22000011 22000022 Nov. Dec. Jan. Feb. Mar. Apr. May June July Prices and trading volume (averages of daily figures) CCCCCCCooooooommmmmmmmmmmmmmooooooonnnnnnn ssssssstttttttoooooooccccccckkkkkkk ppppppprrrrrrriiiiiiiccccccceeeeeeesssssss (((((((iiiiiiinnnnnnndddddddeeeeeeexxxxxxxeeeeeeesssssss))))))) 1111111 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((DDDDDDDeeeeeeeccccccc....... 33333331111111,,,,,,, 1111111999999966666665555555 ======= 55555550000000))))))) 6,806.46 6,407.95 5,571.46 5,104.89 5,075.76 5,055.78 4,738.56 4,724.22 4,977.45 5,269.96 5,583.60 5,567.94 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 809.40 749.46 656.44 597.75 593.15 587.78 553.90 558.10 583.74 613.26 649.25 648.00 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 414.73 444.45 430.63 405.03 401.39 394.60 367.55 366.90 395.85 425.12 441.81 445.29 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 478.99 377.72 260.50 229.41 236.71 236.42 214.64 211.45 221.06 238.33 254.16 244.67 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 552.48 596.61 554.88 523.50 519.72 522.51 485.72 486.71 522.05 549.91 579.48 588.81 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111-------44444443333333 ======= 11111110000000)))))))''''''' 1,427.22 1,194.18 993.94 909.93 899.18 895.84 837.62 846.62 890.03 935.96 988.00 992.54 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,, 1111111999999977777773333333 ======= 55555550000000)))))))2222222 922.22 879.08 860.11 820.62 823.77 824.64 818.84 822.34 837.92 894.74 962.46 959.26 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 1,026,867 1,216,529 1,411,689 1,427,254 1,210,332 1,441,846 1,302,011 1,403,742 1,381,580 1,455,858 1,472,560 1,412,818 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 198,790 150,450 134,380 133,060 134,380 134,910 134,030 135,910 140,450 146,380 148,550 148,450 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss4444444 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss5555555 100,680 101,640 95,690 91,240 95,690 96,430 95,400 90,830 88,770 88,540 87,920 91,210 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 84,400 78,040 73,340 67,380 73,340 66,200 67,260 68,860 70,080 71,270 74,350 76,170 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. 30r Dec. 31r Mar. 31r June 30r 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 6,697.1 7 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 6,670.1 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 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 6,625.5 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 10 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 7,384.0 1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District of Colum- United States and Monthly Treasury Statement. bia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 2002 2003 TTyyppee aanndd hhoollddeerr 11999999 22000000 22000011 22000022 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 Bx 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 6,656.5' 3 Marketable 3,281.0 2,966.9 2,982.9 3,205.1 3,136.6 3,205.1 3,331.8 3,379.0' 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 bonds' 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 13.6' 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 2,853.3 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 3,056.0' 3,164.7 19 Depository institutions 248.7 201.5 181.5 222.6 210.4 222.6 153.1' 144.8 20 Mutual funds 228.6 220.8 257.5 279.0 255.6 279.0 296.3' 298.5 21 Insurance companies 123.4 110.2 105.7 133.9 126.8 133.9 151.2' 161.7 22 State and local treasuries7 266.8 236.2 256.5 274.2 269.4 274.2 306.2' 318.5 Individuals 23 Savings bonds 186.4 184.8 190.3 194.9 193.3 194.9 196.9 199.1 24 Pension funds 321.0 304.1 281.6 289.9 284.9 289.9 244.2' 254.5 25 Private 109.8 108.4 104.2 113.6 110.9 113.6 66.9' 69.1 26 State and Local 211.2 195.7 177.4 176.3 174.1 176.3 177.2' 185.4 27 Foreign and international8 1,268.7 1,034.2 1,053.1 1,212.7 1,167.1 1,212.7 1,254.6' 1,355.3 28 Other miscellaneous investors7-9 590.3 588.7 493.3 433.8 429.9 433.8 443.4 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 Financial Statistics • October 2003 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 2003 2003, week ending item Apr. May June June 4 June 11 June 18 June 25 July 2 July 9 July 16 July 23 July 30 By type of security 1 U.S. Treasury bills 45,958 48,474 50,058 52,776 48,763 46,850 49,540 55,708 45,238 34,925 29,761 40,126 Treasury coupon securities by maturity 2 Three years or less 118,650 167,853 152,654 180,090 139,465 138,686 155,625 165,529 122,801 123,842 138,491 164,430 3 More than three but less than or equal to six years 98,983 139,291 131,546 127,409 137,071 128,937 117,719 153,869 130,356 118,553 125,366 155,688 4 More than six but less than or equal to eleven years 72,089 117,206 106,432r 101,488 107,075 113,351 98,517 111,966 122,596 125,941 120,954 152,760 5 More than eleven 19,829 36,907 31,439 30,080 34,987 28,876 30,363 32,948 29,077 28,365 26,363 36,986 6 Inflation-indexed2 3,092 4,303 2,949 3,530 3,260 2,590 2,818 2,666 11,622 7,639 4,498 3,707 Federal agency and governmentsponsored enterprises 7 Discount notes 52,188 60,395 62,416 63,377 60,806 63,515 60,888 64,852 50,285 52,219 48,328 52,289 Coupon securities by maturity 8 Three years or less 11,020 11,262 13,029 11,265 10,915 16,133 13,244 12,786 9,687 11,484 12,064 13,121 9 More than three years but less than or equal to six years 9,753 10,180 10,171 8,033 9,985 12,146 9,087 11,133 5,060 5,751 13,035 7,761 10 More than six years but less than or equal to eleven years .... 5,166 7,723 9,211 7,548 10,413 12,598 7,613 5,889 5,598 8,417 6,383 6,657 11 More than eleven years 647 1,078 1,486 1,291 1,614 1,858 1,210 1,311 911 1,042 981 1,039 12 Mortgage-backed 216,931 255,830 228,360 234,479 286,827 242,180 159,775 216,071 327,320 271,103 202,235 199,351 Corporate securities 13 One year or less 125,402 121,358 140,708 127,082 120,172 137,740 157,533 165,464 126,939 134,641 124,979 118,830 14 More than one year 20,592 23,053 21,940 22,000 20,712 21,941 23,008 22,144 16,891 21,652 22,150 20,597 By type of counterparty With interdealer broker 15 U.S. Treasury 164,812 236,729 219,499r 231,733 221,425 211,806 211,037 230,978 208,710 201,354 204,364 251,770 16 Federal agency and governmentsponsored enterprises 8,077 10,429 11,148 8,252 11,461 14,664 10,267 9,131 6,695 7,829 9,099 8,357 17 Mortgage-backed 56,005 71,749 62,176 61,846 74,856 68,994 43,360 61,368 77,196 66,859 61,978 55,577 18 Corporate 554 532 581 553 674 609 469 595 372 505 630 776 With other 19 U.S. Treasury 193,790 277,305 255,580r 263,641 249,198 247,483 243,545 291,708 252,981 237,910 241,070 301,927 20 Federal agency and governmentsponsored enterprises 70,697 80,208 85,166 83,264 82,273 91,585 81,776 86,838 64,846 71,084 71,693 72,511 21 Mortgage-backed 160,926 184,080 166,185 172,633 211,971 173,187 116,416 154,703 250,124 204,244 140,257 143,774 22 Corporate 145,441 143,879 162,067 148,529 140,210 159,073 180,073 187,012 143,458 155,789 146,500 138,652 NOTE. Major changes in the report form filed by primary dealers induced a break in the backed, and corporate securities scheduled for immediate and forward delivery, as well as all dealer data series as of the week ending July 4, 2001. Current weekly data may be found at the U.S. government securities traded on a when-issued basis between the announcement and Federal Reserve Bank of New York web site (http:www.newyorkfed.org/pihome/statistics) issue date. Data do not include transactions under repurchase and reverse repurchase (resale) under the Primary Dealer heading. agreements. Averages are based on the number of trading days in the week. 1. The figures represent purchases and sales in the market by the primary U.S. government 2. Outright Treasury inflation-indexed securities (TIIS) transactions are reported at princisecurities dealers reporting to the Federal Reserve Bank of New York. Outright transactions pal value, excluding accrued interest, where principal value reflects the original issuance par include all U.S. government, federal agency, government-sponsored enterprise, mortgage- amount (unadjusted for inflation) times the price times the index ratio. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A27 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2003 2003, week ending item, oy type of security Apr. May June June 4 June 11 June 18 June 25 July 2 July 9 July 16 July 23 Net outright positions2 1 U.S. Treasury bills 21,878 10,092 9,882 31,880 17,006 4.854 2,788 -721 7,986 6,445 17,917 Treasury coupon securities by maturity 2 Three years or less -15,269 -12,954 -11.958 -11,112 -14,046 -17,261 -4,987 -12,044 -20,746 -26,386 -13,692 3 More than three years but less than or equal to six years -46,833 -42,497 -45,702 -40,696 -41,486 -43.518 -50,122 -52,478 -50,779 -53,573 -58,291 4 More than six but less than or equal to eleven years -12,234 -8,149 -11,295 -3,930 -8,532 -10,346 -11,614 -21,939 -18,959 -18,430 -18,715 5 More than eleven 5.442 3,180 680 84 -671 1,720 -5 2,551 4,440 4,797 4,738 6 Inflation-indexed 1,544 -127 854 175 810 1,181 965 848 1,524 1,134 -93 Federal agency and governmentsponsored enterprises 7 Discount notes 55,454 62,728 61,088 64,700 56,803 60,626 61,098 64,831 67,610 66,300 57,106 Coupon securities, by maturity 8 Three years or less 19,419 20,165 17,246 18,674 18,237 15,967 16,401 17,688 17,293 17,562 13,110 9 More than three years but less than or equal to six years 3,770 4,807 2,400 4,091 4,109 1,179 1,157 2,104 3,842 4,364 4,727 10 More than six but less than or equal to eleven years 3,328 3,875 4,057 1,980 4,874 4,049 4,109 4,516 4,648 7,256 5,834 11 More than eleven 2,351 2,366 2,748 2,314 2,496 2,925 2,962 2,898 2,454 2,340 2,143 12 Mortgage-backed 46,326 42,381 55,930 52,140 47,767 61,720 53,673 65,442 61,991 62,210 61,753 Corporate securities 13 One year or less 29,461 25,518 33,054 25,084 35,805 36,639 31,697 32,457 22,859 36,888 36,612 14 More than one year 48,800 58,309 58,821 58,257 58,531 60,765 59,318 56,260 52,296 55,365 51,260 Financing1 Securities in, U.S. Treasury 15 Overnight and continuing 656.984 694,287 739,231 715,409 736,562 730,168 760,103 745,495 734,326 734,833 711,835 16 Term 791,597 881.597 944,185 915,202 980,859 985,588 963,466 831,069 871,586 922,611 978,365 Federal agency and governmentsponsored enterprises 17 Overnight and continuing 152,545 152,445 151,751 156,862 150,840 154,483 151,836 144,996 152,938 151,908 145,151 18 Term 229,326 243,263 254,853 247,768 261,047 261,788 256,753 239,480 244,501 248,488 248,088 Mortgage-backed securities 19 Overnight and continuing 40,105 42,935 36,223 31,609 42,939 35,100 36.291 31,989 41,047 35,677 38,519 20 Term 244,815 247,674 249,278 246,398 247,475 258,791 244,765 247,109 250,192 247,779 261,280 Corporate securities 21 Overnight and continuing 66,811 68,094 71,329 69,675 70,022 71,200 71,818 73,975 75,059 76,486 76,948 22 Term 25,873 27,031 28,474 28,293 28,419 28,693 27,409 29,879 30,474 30,264 29,930 MEMO Reverse repurchase agreements 23 Overnight and continuing 461,743 482,620 510,880 506,154 522,296 505,687 527,342 482,902 483,051 476,612 457,947 24 Term 1,117,241 1,220,752 1,297,890 1,253,396 1,333,776 1,351,985 1,319,089 1,177,830 1,226,445 1,271,003 1,332,263 Securities out, U.S. Treasury 25 Overnight and continuing 621,314 674,535 711,222 699,293 715,513 713,018 726,439 690,942 688,981 695,254 673,657 26 Term 729,460 801,453 849,957 820,373 896,211 877,742 872,015 739,089 771,753 813,745 868,056 Federal agency and governmentsponsored enterprises 27 Overnight and continuing 282,367 297,432 295,952 307,065 298,459 297,807 291,220 287,582 298,345 289,818 283,984 28 Term 175,326 186,301 195,981 193,388 196,465 199,129 201,495 185,252 192,686 195,836 188,841 Mortgage-backed securities 29 Overnight and continuing 334,764 357,464 356,571 333,580 342,752 373,056 369,984 352,456 348,669 390,005 391.859 30 Term 152,637 147,596 141,975 139,780 137,057 156,962 135,959 138,058 146,109 158.812 173,779 Corporate securities 31 Overnight and continuing 143,957 146,125 156,474 140,883 155,048 161,359 157,083 163,253 154,736 163,731 158,566 32 Term 22,754 25,505 26,437 28,420 27,824 27,057 25,067 23,959 25,444 27,989 28,007 MEMO Repurchase agreements 33 Overnight and continuing 1,187,404 1,262,067 1,305,120 1,266,858 1,297,897 1,334,381 1,334,188 1,264,178 1,261,107 1,318,921 1,275,855 34 Term 1,027,811 1,106,335 1,163,284 1,127,615 1,202,635 1,208,707 1,183,130 1,045,353 1,090,292 1,149,272 1,210,387 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 (T11S) 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 • October 2003 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2003 AAggeennccyy 11999999 22000000 22000011 22000022 Jan. Feb. Mar. Apr. May 1 Federal and federally sponsored agencies 1,616,492 1,851,632 2,121,057 2,351,039 n.a. n.a. n.a. n.a. n.a. 2 Federal agencies 26,376 25,666 276 2 26,929 26,408 26,886 26,450 26,500 3 Defense Department1 6 6 6 6 6 6 6 6 6 4 Export-Import Bank2-3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Federal Housing Administration4 126 255 26,828 26,828 354 152 166 195 218 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 26,923 26,402 26,880 26.444 26,494 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 n.a. n.a. n.a. n.a. n.a. 11 Federal Home Loan Banks 529,005 594,404 623,740 674,841 672,304 684,495 687,573 706,215 717,900 12 Federal Home Loan Mortgage Corporation 360.711 426.899 565,071 648,894 n.a. n.a. n.a. n.a. n.a. 13 Federal National Mortgage Association 547.619 642,700 763,500 851,000 860,300 871,000 873,900 871,500 876,200 14 Farm Credit Banks8 68,883 74,181 76,673 85,088 85,206 86,045 86,802 87,591 89,007 15 Student Loan Marketing Association9 41,988 45,375 48.350 47,900 50,700 50,900 49,100 51,200 54,200 16 Financing Corporation1' 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8.170 8,170 17 Farm Credit Financial Assistance Corporation" 1,261 1,261 1,261 1.261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 42,152 40,575 39,096 37,017 35,992 35,794 35,780 35,808 36,383 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 14,714 14,750 14,750 14,760 14,793 27 Other 21,402 22,174 25,220 22,528 21,278 21,044 21,030 21,048 21,590 1. Consists of mortgages assumed by the Defense Department between 1957 and 1963 10. The Financing Corporation, established in August 1987 to recapitalize the Federal under family housing and homeowners assistance programs. Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987. 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. 11. The Farm Credit Financial Assistance Corporation, established in January 1988 to 3. On-budget since Sept. 30, 1976. provide assistance to the Farm Credit System, undertook its first borrowing in July 1988. 4. Consists of debentures issued in payment of Federal Housing Administration insurance 12. The Resolution Funding Corporation, established by the Financial Institutions claims. Once issued, these securities may be sold privately on the securities market. Reform, Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 5. Certificates of participation issued before fiscal year 1969 by the Government National 1989. Mortgage Association acting as trustee for the Farmers Home Administration: the Department 13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations of Health, Education, and Welfare; the Department of Housing and Urban Development; the issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the Small Business Administration; and the Veterans Administration. purpose of lending to other agencies, its debt is not included in the main portion of the table to 6. Off-budget. avoid double counting. 7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes 14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans Federal Agriculture Mortgage Corporation; therefore, details do not sum to total. Some data guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally are estimated. being small. The Farmers Home Administration entry consists exclusively of agency assets, 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is whereas the Rural Electrification Administration entry consists of both agency assets and shown on line 17. guaranteed loans. 9. Before late 1982, the association obtained financing through the Federal Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A29 1.45 NEW SECURITY ISSUES State and Local Governments Millions of dollars 2002 2003 TTyyppee ooff iissssuuee oorr iissssuueerr,, 22000000 22000011 22000022 oorr uussee Dec. Jan. Feb. Mar.' Apr.' May' June' July 1 AH issues, new and refunding1 180,403 292,027 364,020r 27,418 27,138r 30,100r 27,908 34,840 34,773 47,388 32,807 flv type of issue 2 General obligation 64,475 118,554 145,323 8,431 8,112 12,759r 9,721 14,794 11,978 23,752 12,326 3 Revenue 115,928 170,047 214,788 18,961 17,049 17,341 18,187 20,046 22,796 23,636 20,480 By type of issuer 4 State 19,944 30,099 33,931 1,670 1,927 3,654 1,277 5,521 2,818 14,411 3,270 5 Special district or statutory authority2 121,185 197,462 259,070 20,151 17,979 20,785r 19,603 23,850 21,653 25,467 21,934 6 Municipality, county, or township 39,273 61,040 67,121 5,570 5,290 5,661' 7,028 5,469 10,303 7,510 7,603 7 Issues for new capital 154,257 200,363 243,266r 19,754 18,805 20,274 15,922 24,670 19,993 35,813 21,401 By use of proceeds 8 Education 38,665 50,054 57,894 5,292 4,823 7,065 5,336 7,580 6,056 5,996 5,763 9 Transportation 19,730 21,411 22,093 1,060 1,417 1,625 1,233 3,479 1,891 2,048 1,699 10 Utilities and conservation 11,917 21,917 33,404 2,031 2,196 176 593 821 1,008 2,016 359 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 7,227 796 422 1,084 1,606 1,816 3,103 1,773 2,426 13 Other purposes 47,309 55,733 73,033 4,992 7,400 7,178 3,722 8,404 5,595 19,862 6,697 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 Nov. Dec. Jan. Feb. Mar. Apr. May June 1 All issues1 1,079,727 1,541,821 1,429,298 119,659 127,061 127,304 134,957 155,821 125,223 170,003 179,615 2 Bonds2 944,810 1,413,267 1,318,863 109,726 120,183 120,177 127,818 149,928 116,861 161,265 163,726 By type of offering 3 Sold in the United States 822,012 1,356,879 1,232,618 104,112 114,332 113,951 118,567 144,315 114,277 149,437 147,835 4 Sold abroad 122,798 56,389 86,246 5,614 5,851 6,226 9,250 5,613 2,585 11,828 15,890 MEMO 5 Private placements, domestic 18,370 16,385 16,224 3,525 5,060 4,700 0 0 0 3,258 7,647 Bv industry group 6 Nonfinancial 258,804 459,560 282,484 22,029 20,751 28,461 26,991 27,514 22,153 48,353 52,139 7 Financial 686,006 953,707 1,036,379 87,697 99,433 91,716 100,826 122,414 94,708 112,912 111,587 8 Stocks3 311,941 230,632 170,673 9,933 6,878 7,127 7,139 5,893 8,362 8,738 15,889 By type of offering 9 Public 134,917 128,554 110,435 9,933 6,878 7,127 7,139 5,893 8,362 8,738 15,889 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 4,533 4,154 3,793 2,679 1,053 1,592 3,075 4,727 12 Financial 16,548 50,977 48,320 5,400 2,724 3,334 4,460 4,840 6,770 5,663 11,162 1. Figures represent gross proceeds of issues maturing in more than one year; they are the 2. Monthly data include 144(a) offerings. principal amount or number of units calculated by multiplying by the offering price. Figures 3. Monthly data cover only public offerings. exclude secondary offerings, employee stock plans, investment companies other than closed- 4. Data for private placements are not available at a monthly frequency. end, intracorporate transactions, Yankee bonds, and private placements listed. Stock data SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve include ownership securities issued by limited partnerships. System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • October 2003 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2002 2003 IItteemm 22000011 22000022 Dec. Jan. Feb. Mar. Apr. May June' July 1 Sales of own shares2 1,806,474 1,825,890 134,383 152,647 122,321 140,643 141,465 142,688 157,773 154,333 2 Redemptions of own shares 1,677,266 1,702,657 135,213 138,951 113,643 129,337 112,109 118,794 130,024 140,261 3 Net sales3 129,208 123,233 -830 13,696 8,678 11,306 29,356 23,894 27,749 14,072 4 Assets4 4,689,624 4,119,322 4,119,322 4,060,568 4,031,818 4,059,934 4,327,560 4,563,023 4,653,085 4,714,195 5 Cash5 219,620 208,479 208,479 212,792 199,546 214,146 230,032 232,836 236,547 218,148 6 Other 4,470,004 3,910,843 3,910,843 3,847,776 3.832,272 3,845,788 4,097,528 4,330,187 4,416,538 4,496,047 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 Ql Q2 Q3 Q4 Ql' Q2 ASSETS 1 Accounts receivable, gross2 958.7 948.3 945.4 948.3 930.0 941.9 945.6 945.4 934.9 947.9 2 Consumer 328.0 340.1 315.6 340.1 329.8 332.0 334.5 315.6 307.1 308.6 3 Business 458.4 447.0 455.3 447.0 443.0 449.4 445.5 455.3 453.9 455.8 4 Real estate 172.3 161.3 174.5 161.3 157.2 160.5 165.5 174.5 173.9 183.4 5 LESS: Reserves for unearned income 69.7 60.6 57.0 60.6 59.5 58.5 58.0 57.0 54.2 53.8 6 Reserves for losses 16.7 21.0 23.8 21.0 21.5 21.6 22.0 23.8 24.0 24.5 7 Accounts receivable, net 872.3 866.7 864.5 866.7 849.0 861.9 865.6 864.5 856.7 869.6 8 All other 461.5 523.4 584.7 523.4 515.2 530.6 558.0 584.7 610.9 655.9 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 1,467.7 1,525.5 LIABILITIES AND CAPITAL 10 Bank loans 35.9 50.8 48.0 50.8 49.4 56.9 74.9 48.0 47.3 53.2 11 Commercial paper 238.8 158.6 141.5 158.6 137.0 130.8 143.1 141.5 127.3 145.3 Debt 12 Owed to parent 102.5 99.2 88.2 99.2 82.6 83.3 82.9 88.2 87.7 96.6 13 Not elsewhere classified 502.2 567.4 624.9 567.4 574.4 597.2 584.9 624.9 639.1 657.9 14 All other liabilities 301.8 325.5 339.0 325.5 329.1 331.5 343.4 339.0 344.4 359.1 15 Capital, surplus, and undivided profits 152.5 188.6 207.6 188.6 191.7 192.9 194.5 207.6 221.9 213.5 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 1,467.7 1,525.5 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses. Excludes pools of securitized assets, and banks. Data are amounts carried on the balance sheets of finance companies; securitized pools are not shown, as they are not on the books. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A31 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 2003 TTyyppee ooff ccrreeddiitt Jan. Feb. Mar. Apr/ May' June Seasonally adjusted 1 Total 1,185.6 1,246.6 1,270.5 1,274.4 1,268.0 1,275.0 1,281.7 1,287.9 1,276.9 ? Consumer 464.4 513.3 513.1 517.3 510.6 513.6 516.7 514.4 507.7 3 Real estate 198.9 207.7 216.5 215.4 215.6 215.4 220.4 224.6 224.1 4 Business 522.3 525.6 540.9 541.8 541.8 546.0 544.6 548.9 545.1 Not seasonally adjusted 5 Total 1,192.2 1,253.7 1,277.8 1,277.0 1,268.3 1,278.3 1,284.9 1,288.3 1,284.0 6 Consumer 468.3 518.1 518.4 518.5 510.8 510.2 513.1 510.0 507.1 7 Motor vehicle loans 141.6 173.9 160.2 160.2 162.3 156.0 160.6 174.3 177.9 8 Motor vehicle leases 108.2 103.5 83.3 81.9 80.3 81.8 81.2 79.0 76.7 9 Revolving2 37.6 31.5 38.9 38.7 37.3 36.4 38.3 35.9 37.3 10 Other3 40.7 31.1 33.1 33.1 32.6 32.9 33.1 32.0 31.3 Securitized assets4 11 Motor vehicle loans 97.1 131.9 151.9 154.3 148.7 152.3 149.7 138.8 135.2 12 Motor vehicle leases 6.6 6.8 5.7 5.7 5.6 6.2 6.1 6.0 6.0 13 Revolving 19.6 25.0 31.1 30.4 30.1 30.7 30.6 30.7 29.5 14 Other 17.1 14.3 14.0 14.2 13.8 13.9 13.6 13.3 13.2 15 Real estate 198.9 207.7 216.5 215.4 215.6 215.4 220.4 224.6 224.1 16 One- to four-family 130.6 120.1 135.0 134.1 134.3 133.9 138.8 143.0 142.5 17 Other 41.7 41.2 39.5 39.6 39.9 40.1 40.4 40.7 40.9 Securitized real estate assets4 18 One- to four-family 24.7 40.7 39.7' 39.4' 39.1' 39.2' 38.9 38.6 38.4 19 Other 1.9 5.7 2.2 2.2 2.2 2.2 2.2 2.2 2.2 20 Business 525.0 527.9 543.0 543.1 541.9 552.8 551.4 553.7 552.9 21 Motor vehicles 75.5 54.0 60.7 58.6 60.3 65.3 64.1 68.0 69.9 22 Retail loans 18.3 16.1 15.4 15.1 14.8 16.3 16.8 17.1 17.2 23 Wholesale loans5 39.7 20.3 29.3 27.5 30.5 34.0 34.5 36.1 38.4 24 Leases 17.6 17.6 16.0 15.9 15.0 15.0 12.8 14.8 14.2 25 Equipment 283.5 289.4 292.1 292.0 288.9 287.5 286.0 284.5 283.4 26 Loans 70.2 77.8 83.3 80.1 80.3 78.0 79.0 77.6 77.5 27 Leases 213.3 211.6 208.8 211.8 208.6 209.5 207.0 207.0 205.9 28 Other business receivables6 99.4 103.5 102.5 104.7 104.4 101.1 103.0 103.1 102.6 Securitized assets4 29 Motor vehicles 37.8 50.! 50.2 50.3 50.9 53.1 53.1 52.2 50.0 30 Retail loans 3.2 5.1 2.4' 2.4' 2.3' 2.2' 2.2 2.2 2.2 31 Wholesale loans 32.5 42.5 45.9' 46.1' 46.8' 48.6' 48.6 47.8 45.6 32 Leases 2.2 2.5 1.9' 1.8' 1.8' 2.2' 2.2 2.2 2.1 33 Equipment 23.1 23.2 20.2 20.1 19.4 21.9 21.4 21.6 23.5 34 Loans 15.5 16.4 13.0' 12.9 12.3' 12.2' 11.8 12.0 12.9 35 Leases 7.6 6.8 7.2 7.2 7.1' 9.7' 9.6 9.6 10.6 36 Other business receivables6 5.6 7.7 17.4' 17.3 18.0' 23.9' 23.9 24.2 23.6 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidibreakdowns have been obtained for some components. In addition, previously unavailable aries of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods, such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and 1. Owned receivables are those carried on the balance sheet of the institution. Managed receivable dealer capital; small loans used primarily for business or farm purposes; and receivables are outstanding balances of pools upon which securities have been issued; these wholesale and lease paper for mobile homes, campers, and travel trailers. balances are no longer carried on the balance sheets of the loan originator. Data are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • October 2003 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2003 IItteemm 22000000 22000011 22000022 Jan. Feb. Mar. Apr. May June July Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 234.5 245.0 261.1 278.9 235.1 252.9 266.0 275.3 283.3 283.4 2 Amount of loan (thousands of dollars) 177.0 184.2 197.0 214.0 179.3 184.2 205.0 210.7 213.7 214.4 3 Loan-to-price ratio (percent) 11A 77.3 77.8 79.3 78.0 76.2 78.8 78.7 78.0 78.2 4 Maturity (years) 29.2 28.8 28.9 28.9 28.3 28.2 29.0 28.8 28.8 28.7 5 Fees and charges (percent of loan amount)2 .70 .67 .62 .79 .37 .40 .62 .61 .64 .62 Yield (percent per year) 6 Contract rate1 7.41 6.90 6.35 6.00 5.76 5.69 5.83 5.66 5.42 5.44 7 Effective rate1-1 7.52 7.00 6.44 6.12 5.82 5.75 5.92 5.75 5.51 5.53 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 5.18 5.03 4.94 4.97 4.55 4.27 5.02 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 610,122 707,015 790,800 810,609 816,747 815,964 817,894 815,560 812,467 836,104 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 57,281 40,420 34,304 43,028 43,749 41,182 72,447 Mortgage commitments (during period) 15 Issued7 163,689 304,084 400,327 27,814 52,479 42,005 42,906 75,569 79,172 n.a. 16 To sell8 11,786 7,586 12,268 2,717 1,241 2,457 1,479 1,785 3,657 n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 17 Total 385,693 491,719 568,173 568,494 561,534 569,522 568,975 572,801 586,361 595,202 18 FHA/VA insured 3,332 3,506 4,573 4,256 3,796 3,540 n.a. n.a. n.a. n.a. 19 Conventional 382,361 488,213 563,600 564,238 557,738 565,982 n.a. n.a. n.a. n.a. Mortgage transactions (during period) 20 Purchases 174,043 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Sales 166,901 389,611 547,046 48,169 41,831 59,065 51,737 66,175 58,124 70,269 22 Mortgage commitments contracted (during period)9 169,231 417,434 620,981 55,057 48,446 69,200 n.a. 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 Ql Q2 Q3 Q4 Ql 1 All holders 6,315,447r 6,884,942r 7,585,319r 7,752,374r 7,967,494r 8,201,739r 8,459,605r 8,671,432 By type of property 7 One- to four-family residences 4,787,225 5,205,428 5,738,111 5,877,230' 6,049,571' 6,247,731 6,459,308' 6,641,409 3 Multifamily residences 368,742' 403,724' 449,704' 457,381' 468,374' 476,708' 488,428' 496,475 4 Nonfarm, nonresidential 1.056,516r 1,166,933' 1,281,168' 1.299,634' 1,329.097' 1.353,685' 1,387,110' 1,407,138 5 102,964 108.858 116,336 118.130' 120,452 123,614 124,759' 126,410 By type of holder 6 Major financial institutions 2,394,271 2,618,969 2,791,076 2,790,860' 2,861,224' 2,981.790' 3,089.824' 3,166,701 7 Commercial banks2 1,495,420 1,660,054 1,789,819 1,799,118 1,873,362 1.962,198 2,058,426' 2,099,352 8 One to four-family 879,576 965,635 1,023,851 1,017.001 1,070,513 1,143,985 1,222,056' 1,244,823 9 Multifamily 67,665 77,803 84,851 86,676 90,745 90,930 94,178 96,830 in Nonfarm, nonresidential 516,333 582.577 645,619 659,452 675,119 689,481 704,167' 718,996 11 Farm 31,846 34,039 35,498 35,990 36,985 37,802 38,025 38,704 i? Savings institutions3 668,064 722.974 758,236 748,349' 742,744' 773,652 781,378 815,873 13 One to four-family 548,222 594,221 620,579 606,662' 599,377' 625.402 631,392 662,858 14 Multifamily 59,309 61,258 64,592 65,192' 66,016' 68,668 68,679 69,757 15 Nonfarm, nonresidential 60,063 66.965 72,534 75,945' 76.799' 79.022 80,730 82,669 16 Farm 470 529 531 550' 552 560 577 589 17 Life insurance companies 230,787 235,941 243.021 243,393' 245.118' 245,939' 250,019' 251,476 18 One- to four-family 5,934 4,903 4,931 4,938 5,162 5,176 4,657' 4,684 19 Multifamily 32,818 33,681 35,631 35,671 35,818 35.921 36,816' 36,975 70 Nonfarm, nonresidential 179,048 183.757 188,376 188,699' 190,050' 190,698' 195,040' 196,232 21 Farm 12,987 13,600 14,083 14,085 14,088 14.144 13,506' 13,585 22 Federal and related agencies 320,054 344,225 376,999 385,027 396,091 412,014 432,790' 455,606 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 77 One- to four-family 16,506 16,372 15,824 15,665 15,273 15,139 14,908 14.652 78 Multifamily 11,741 11,733 11,712 11,707 11,692 11,686 11,669 11,654 79 Nonfarm, nonresidential 41,355 41,070 40,965 41,134 41.188 41,439 42,101 40,093 3(1 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 149,422 155,626 169,908 176,051 180,491 184,191 185,797' 195,633 45 One- to four-family 141,195 144,150 155.060 160,300 164,038 167,006 172,226' 180,829 46 Multifamily 8,227 11,476 14,848 15.751 16,453 17,185 13,571' 14,804 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 64,388 51 One- to four-family 44,321 42,871 40,309 35,955 34.062 34,616 35,851 35,880 52 Multifamily 12,355 16,369 22,483 23,669 24,810 26,318 28,036 28,508 53 Mortgage pools or trusts5 2,946,546' 3,226,058' 3,700,582' 3.854,494' 3,971,458' 4,052,418' 4,161.020' 4,265,292 54 Government National Mortgage Association 582,263 611,553 591,368 587,204 583,745 567,386 537,888' 515.822 55 One- to four-family 565,189 592,624 569,460 564,108 559,549 542,208 512,098' 489,063 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 654,319' 734,445' 870,454' 899,408' 929,858' 967,911' 1,002,783' 1,038,980 69 One- to four-family6 455,021 499.834 591,200 616,300 638,300 669,300 691,600' 725.100 70 Multifamily 41,952' 47,529' 53,537' 53.918' 55,234' 56,582' 59,034' 59,169 71 Nonfarm, nonresidential 157,346' 187,082' 225,717' 229,190' 236,324' 242,029' 252,149' 254,711 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 654,576 695,691 716,662' 721,993 738,721 755,517' 775,971' 783,833 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 102,274 105,453 107,949 105,210 109,604 111,008' 112,894' 114,361 77 Farm 21,217 22,352 23,792 24,138 24.585 25,194 25,415' 25,733 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 DomesticN onfinancial Statistics • October 2003 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2003 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 22000000 22000011 22000022 Jan. Feb. Mar. Apr. May June Seasonally adjusted 1 Total 1,559,532 1,666,816 1,726,120 1,741,124 1,743,548 1,744,549 1,753,339 l,761,329r 1,761,214 2 Revolving . .. 667,395 701,285 712,002 714,885 718,214 720,684 722,754 726,807 725,549 3 Nonrevolving' 892,137 965,531 1,014,118 1,026,238 1,025,334 1,023,865 1,030,585 l,034,523r 1,035,666 Not seasonally adjusted 4 Total 1,593,116 1,701,856 1,761,968 1,756,104 1,742,542 1,734,292 1,741,889 l,749,478r 1,752,132 By major holder 5 Commercial banks 541,470 558,421 587,165 582,065 581,490 575,259 576,011 580,580 581,553 6 Finance companies 219,848 236,559 232,269 232,099 232,291 225,245 231,934 242,181 246,510 7 Credit unions 184,434 189,570 195,744 195,164 194,438 193,082 194,546 195,491 197,978 8 Savings institutions 64,557 69,070 68,494 68,854 69,178 69,537 69,911 70,297 70,671 9 Nonfinancial business 82,662 67,955 56,894 52,838 49,563 48,477 47,697 48,097 47,482 10 Pools of securitized assets3 500,145 580,281 621,402 625,086 615,581 622,692 621,790 612,83 lr 607,938 By major type of credit4 11 Revolving 693,020 727,297 737,993 726,331 718,434 713,554 718,953 722,371 722,396 12 Commercial banks 218,063 224,878 230,990 220,535 218,821 212,418 212,605 216,791 216,129 13 Finance companies 37,627 31,538 38,948 38,733 37,348 36,350 38,281 35,899 37,254 14 Credit unions 22,226 22,265 22,228 21,645 21,161 20,830 21,038 21,165 21,351 15 Savings institutions 16,560 17,767 16,225 16,141 16,064 15,979 16,144 16,313 16,478 16 Nonfinancial business 42,430 29,790 19,221 16,547 14,203 13,666 13,112 13,293 12,908 17 Pools of securitized assets3 356,114 401,059 410,381 412,731 410,837 414,311 417,773 418,910 418,276 18 Nonrevolving 900,096 974,559 1,023,975 1,029,773 1,024,107 1,020,738 1,022,936 l,027,107r 1,029,737 19 Commercial banks 323,407 333,543 356,175 361,529 362,669 362,841 363,406 363,789 365,424 20 Finance companies 182,221 205,021 193,321 193,366 194,944 188,895 193,653 206,282 209,256 21 Credit unions 162,208 167,305 173,516 173,519 173,277 172,252 173,508 174,326 176,627 22 Savings institutions 47,997 51,303 52,269 52,713 53,114 53,558 53,767 53,984 54,194 23 Nonfinancial business 40,232 38,165 37,673 36,291 35,360 34,811 34,584 34,804 34,574 24 Pools of securitized assets3 144,031 179,222 211,021 212,355 204,744 208,381 204,017 193,921r 189,662 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 Dec. Jan. Feb. Mar. Apr. May June INTEREST RATES Commercial banks2 1 48-month new car 9.34 8.50 7.54 n.a. n.a. 7.11 n.a. n.a. 7.05 n.a. 2 24-month personal 13.90 13.22 12.25 n.a. n.a. 11.70 n.a. n.a. 12.19 n.a. Credit card plan 3 All accounts 15.71 14.89 13.42 n.a. n.a. 13.20 n.a. n.a. 12.90 n.a. 4 Accounts assessed interest 14.91 14.44 13.09 n.a. n.a. 12.85 n.a. n.a. 12.82 n.a. Auto finance companies 5 New car 6.61 5.65 4.29 3.50 3.13 3.99 3.83 2.51 2.40 2.93 6 Used car 13.55 12.18 10.74 10.48 10.37 10.43 10.16 9.91 9.82 9.81 OTHER TERMS3 Maturity (months) 7 New car 54.9 55.1 56.8 57.5 58.5 59.2 59.5 60.1 60.7 62.4 8 Used car 57.0 57.5 57.5 56.7 57.5 57.7 57.8 57.7 57.7 57.8 Loan-to-value ratio 9 New car 92 91 94 96 96 97 96 97 97 97 10 Used car 99 100 100 100 100 99 99 99 99 100 Amount financed (dollars) 11 New car 20,923 22,822 24,747 26,647 26,443 24,864 25,152 27,540 27,920 26,945 12 Used car 14,058 14,416 14,532 14,639 14,499 14,231 14,253 14,475 14,568 14,567 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 2003 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999977 11999988 11999999 22000000 22000011 Q4 Ql Q2 Q3 Q4' Ql' Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. 788.1r l,041.9r l,030.9r 853.5r l,114.4r l,163.5r 992.5r l,628.8r l,338.3r 1,539.0 1,243.4 2,523.8 By sector and instrument ?. Federal government 23.1 -52.6 -71.2 -295.9 -5.6 43.4 39.8 526.0 265.7 198.5 79.9 888.2 3 Treasury securities 23.2 -54.6 -71.0 -294.9 -5.0 44.2 41.6 524.2 264.2 198.1 81.5 887.7 4 Budget agency securities and mortgages -.1 2.0 -.2 -1.0 -.5 -.7 -1.8 1.8 1.6 .4 -1.6 .5 5 Nonfederal 765.0' 1,094.5' 1,102.1' 1,149.3' 1,120.0' 1,120.1' 952.6' 1,102.8' 1,072.5' 1,340.5 1,163.5 1,635.6 By instrument 6 Commercial paper 13.7 24.4 37.4 48.1 -88.3 45.5 -144.4 -81.7 -17.4 -13.2 -15.2 --8877..33 7 Municipal securities and loans 56.9 84.2 54.4 23.6 122.9' 174.6 76.8' 196.1' 154.2' 216.1 90.3 189.4 8 Corporate bonds 150.5 235.2 217.8 161.3 340.5 325.0 253.6 191.4 -29.0 114.4 178.6 309.6 9 Bank loans n.e.c 106.4 109.8 82.9 101.8 -82.0 -165.5 -16.4 -192.1 -124.5 -15.3 -55.3 -63.9 10 Other loans and advances 43.1' 68.5' 26.1' 84.5' 1.8' -119.7' ^s.a 65.1' 61.2' -.3 -14.5 80.7 11 Mortgages 322.4' 485.8' 563.3' 563.9' 699.1' 725.7' 702.8' 825.8' 920.4' 1,045.9 886.7 1,141.0 1? Home 258.3 384.6 424.4 418.2 532.7 533.1 602.4 658.6 780.4 843.5 763.8 951.4 n Multifamily residential 7.2' 23.3' 35.2' 32.9' 45.6' 54.3' 28.5' 41.7' 31.7' 67.1 33.3 50.5 14 Commercial 53.8' 71.3' 98.0' 106.2' 113.4' 131.6' 65.0' 116.5' 95.2' 130.8 83.2 127.8 I 5 Farm 3.1 6.5 5.8 6.5 7.5 6.8 6.9 9.1 13.1' 4.6 6.4 11.3 16 Consumer credit 72.0r 86.7' 120.2' 166.2' 126.0' 134.5 118.1' 98.2' 107.6' -7.1 93.0 66.2 By borrowing sector 17 Household 330.8' 450.8' 498.6' 558.8' 614.6' 596.7' 720.9' 689.7' 791.0' 885.6 837.2 11,,000000..22 18 Nonfinancial business 392.7' 576.1' 565.0' 575.1' 399.6' 381.2' 162.9' 229.7' 140.2' 267.2 252.1 460.3 19 Corporate 291.8' 408.4' 377.2' 380.1' 235.3' 231.8' 47.3' 88.5' -2.9' 107.6 134.2 311.5 20 Nonfarm noncorporate 94.7 159.7 182.4 184.1 156.8 141.1 110.3 132.7 128.8 156.3 113.4 146.0 ?1 Farm 6.2 8.0 5.5 10.9 7.5 8.3 5.3 8.5 14.2' 3.4 4.6 2.8 22 State and local government 41.5 67.7 38.5 15.5 105.8' 142.1 68.9' 183.4' 141.3' 187.7 74.2 175.1 23 Foreign net borrowing in United States 71.8 31.2' 13.0' 57.0' -49.7' 3.3' 65.1' 2.1' -44.0' 1.1 18.4 -48.4 24 C Bo o n m d m s ercial paper 61 3 . . 4 7 2 7 2 . . 8 8 ' 16 1 . . 3 9 ' 3 1 1 5 . . 7 2 ' - -2 1 4 4 . .2 5 ' \ 5 is .9 y -1 6 4 6 . .8 5 ' -5 3 4 6 . . 0 5 ' -35 3 . . 3 9 ' -3 3 0 7 . . 1 3 -2 5 9 2 . . 4 6 -9 7 3 3 . . 5 5 26 Bank loans n.e.c 8.5 6.6 .5 11.4 -7.3 -16.3 13.9 22.0 -11.7 -2.9 ^t.O -31.4 27 Other loans and advances -1.8 -6.0 -5.7 -1.3 -3.7 -3.3 -1.2' -2.4' -1.0 -3.2 -.8 3.0 28 Total domestic plus foreign 859.9r l,073.1r l,043.9r 910.5r l,064.6r l,166.9r l,057.5r l,630.9r l,294.2r 1,540.0 1,261.8 2,475.4 Financial sectors 29 Total net borrowing by financial sectors 662.2 1,085.6 l,073.5r 821.8r 934.0r 964.4r 866.1r 867.2r 858.5r 1,102.7 1,002.6 871.8 By instrument 30 Federal government-related 212.9 470.9 592.0 433.5 629.3 591.8 691.1 487.8 420.8 616.4 452.0 460.4 31 Government-sponsored enterprise securities 98.4 278.3 318.2 234.1 290.8 306.5 191.3 141.7 249.1 321.5 179.7 209.8 32 Mortgage pool securities 114.6 192.6 273.8 199.4 338.5 285.3 499.8 346.1 171.6 294.9 272.3 250.6 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 449.3 614.7 481.6' 388.3' 304.7' 372.6' 175.0' 379.4' 437.7' 486.4 550.6 411.4 35 Open market paper 166.7 161.0 176.2 127.7 -61.9 -13.6 -178.3 -109.1 84.3 -77.3 58.8 -93.6 36 Corporate bonds 218.9 310.2 207.5' 212.3' 317.3' 361.1' 351.1' 434.6' 194.4' 684.4 432.5 497.7 37 Bank loans n.e.c 13.3 28.5 -14.4 -.4 13.1 17.7 -.6 31.2 81.9 -107.9 -42.7 21.0 38 Other loans and advances 35.6 90.2 107.1 42.5 34.9 8.9 -3.8' 15.8' 71.9 -17.4 105.5 -17.0 39 Mortgages 14.9 24.8 5.1 6.2 1.3 -1.6 6.6 7.0 5.3 4.7 -3.5 3.3 By borrowing sector 40 Commercial banking 46.1 72.9 67.2 60.0 52.9 44.1 24.4' 12.6' 62.3' 100.3 76.1 8855..11 41 Savings institutions 19.7 52.2 48.0 27.3 7.4 -68.6 -33.1 -12.2' 37.1 -46.7 48.2 -30.3 42 Credit unions .1 .6 2.2 .0 1.5 4.4 2.4 2.0 3.1 .4 2.8 1.6 43 Life insurance companies .2 .7 .7 -.7 .6 1.4 2.4 1.2 2.0 2.5 4.4 1.5 44 Government sponsored enterprises 98.4 278.3 318.2 234.1 290.8 306.5 191.3 141.7 249.1 321.5 179.7 209.8 45 Federally related mortgage pools 114.6 192.6 273.8 199.4 338.5 285.3 499.8 346.1 171.6 294.9 272.3 250.6 46 Issuers of asset-backed securities (ABSs) 202.2 321.4 212.3 201.9' 292.3' 416.8' 258.3' 230.6' 195.8' 389.9 315.2 286.7 47 Finance companies 57.8 57.1 70.7' 81.9' 1.3' -23.6' -28.9' 83.9' 110.9' 7.4 -.2 153.8 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 7.8 7.4 25.3 27.7 18.6 17.5 12.9 50 Brokers and dealers 8.1 7.2 -17.2 15.6 1.4 -18.9 -15.7 17.5 15.2 -24.0 38.4 -16.2 51 Funding corporations 79.9 40.0 91.5 -.4 -55.2 9.1 -42.2 18.5 -16.4 37.8 48.0 -83.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • October 2003 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 2003 Q4 Qlr Q2' Q3' Q4' Ql' Q2 All sectors 52 Total net borrowing, all sectors l,522.2r 2,158.7 2,117.4r 1,732.3 1,998.7 2,131.2r 1,923.6 2,498.1 2,152.7 2,642.7 2,264.4 3,347.2 53 Open market paper 184.1 193.1 229.9 207.6 -164.4 37.8 -255.9 -154.3 70.8 -53.3 96.3 -107.5 54 U.S. government securities 236.0 418.3 520.7 137.6 623.8 635.2 730.9 1,013.8 686.5 814.9 531.9 1,348.6 55 Municipal securities 56.9 84.2 54.4 23.6 122.9 174.6 76.8 196.1 154.2 216.1 90.3 189.4 56 Corporate and foreign bonds 430.8 568.2 427.3r 388.7 633.3 703.2' 590.2 572.0 130.0 768.6 581.7 713.7 57 Bank loans n.e.c 128.2 145.0 69.0 112.8 -76.2 -164.0 -3.0 -139.0 -54.4 -126.1 -102.0 -74.3 58 Other loans and advances 76.9r 152.7 127.5' 125.6 32.9 -114.2' -43.0 78.6 132.2 -20.9 90.1 66.7 59 Mortgages 337.3r 510.6 568.5r 570.1 700.4 724.1' 709.4 832.8 925.7 1,050.6 883.2 1,144.3 60 Consumer credit 72.0' 86.7 120.2r 166.2 126.0 134.5 118.1 98.2 107.6 -7.1 93.0 66.2 Funds raised through mutual funds and corporate equities 61 Total net issues 218.7 166.1 191.5 238.4 305.0 406.4' 437.0 276.5 -83.6 291.0 288.7 400.4 62 Corporate equities -46.5 -113.4 .2 3.4 103.6 150.5' 50.1 176.5 -120.7 84.1 99.6 52.0 63 Nonfinancial corporations -77.4 -215.5 -110.4 -118.2 -47.4 -4.2 -11.0 15.5 -141.2 -30.9 -80.1 -57.6 64 Foreign shares purchased by U.S. residents 57.6 101.4 114.3 106.7 109.1 83.9' -7.0 77.4 -51.3 51.6 132.5 56.0 65 Financial corporations -26.7 .8 -3.7 14.9 41.9 70.9 68.1 83.6 71.8 63.4 47.2 53.6 66 Mutual fund shares 265.1 279.5 191.2 235.0 201.4 255.9 386.9 100.0 37.1 206.9 189.1 348.4 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables F.2 through F4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 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 Q4 Ql Q2' Q3' Q4' QL' Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets l,522.2r 2,158.7r 2,117.4r l,732.3r l,998.7r 2,131.2r l,923.6r 2,498.1 2,152.7 2,642.7 2,264.4 3,347.2 7 Domestic nonfederal nonfinancial sectors 15.5R 250.9' 257.1' -13.7' 27.1' 172.6' 100.4' 292.0 -116.4 132.6 -353.9 20.1 Household 25.5' 119.1' 247.1' -33.6' -.7' 145.3' 48.9R 257.6 -170.5 127.2 -326.4 -67.5 4 Nonfinancial corporate business -12.7 -16.0 -15.6 19.4' -12.4 -17.1' 69.3' -11.4 33.5 -42.4 54.9 34.4 Nonfarm noncorporate business 2.6 13.3 -2.9 1.3 2.0 2.0 3.3 3.3 2.8 4.0 -.2 4.1 6 State and local governments .1 134.5 28.4 -.8 38.1 42.4 -21.1' 42.5 17.8 43.8 -82.1 49.1 7 Federal government 3.2R 11.7' 6.5' 11.6' 6.0 -1.5' 9.3' -3.7 31.1 3.1 -18.3 -1.4 8 Rest of the world 259.6 167.7' 96.6R 129.5' 234.6' 274.7' 248.0' 458.0 393.9 351.0 359.5 1,055.8 9 Financial sectors 1,243.9 1,728.4 1,757.3' 1,604.8' 1,731.0' 1,685.4' 1,565.9' 1,751.8 1,844.1 2,156.0 2,277.1 2,272.7 10 Monetary authority 38.3 21.1 25.7 33.7 39.9 85.1 81.6 43.4 67.3 118.7 32.3 25.0 11 Commercial banking 324.3 305.6 312.2 357.9 205.2 314.6 188.9 384.3 624.0 420.4 349.0 616.3 17 U.S.-chartered banks 274.9 312.1 318.6 339.5 191.6 275.0 168.2 343.8 599.9 463.3 305.6 547.7 N Foreign banking offices in United States 40.2 -11.6 -17.0 23.9 -.6 -7.8 2.1 33.7 21.8 -32.8 23.3 12.2 14 Bank holding companies 5.4 -.9 6.2 -12.2 4.2 13.6 12.0 1.9 -1.6 .2 20.8 39.7 15 Banks in U.S.-affiliated areas 3.7 6.0 4.4 6.7 10.0 33.9 6.6 4.9 4.0 -10.2 -.7 16.8 16 Savings institutions -4.7 36.2 67.7 56.2 42.8 73.1 12.3 -23.5 80.3 72.5 189.4 88.0 17 Credit unions 16.8 18.9 27.5 28.0 41.5 60.5 58.3 61.8 6.1 44.4 43.5 71.2 18 Bank personal trusts and estates -25.0 -12.8 27.8 .8 -28.1 -28.1 1.0 .9 .8 .8 -19.3 -17.6 19 Life insurance companies 104.8 76.9 53.5 57.9 130.9 81.3 278.1' 206.6 279.0 168.2 276.0 216.0 2.0 Other insurance companies 25.2 5.8 -3.0 -8.7 9.0 28.5 36.7 35.4 21.7 65.6 57.7 42.9 21 Private pension funds 45.7' -26.1' 14.1' 31.3' 6.7' -20.9' 47.1' 22.1 40.2 .2 7.3 39.5 22 State and local government retirement funds 67.1 72.1 46.9 54.6 -17.7 -2.7 70.5 -54.5 -10.4 60.7 .1 62.7 73 Money market mutual funds 87.5 244.0 182.0 143.0 246.0 49.1 -239.1 -87.5 -75.7 301.2 -187.0 214.0 74 Mutual funds 80.9 127.3 48.4 21.0 126.0 139.3 243.3 41.9 162.7 118.4 220.2 213.0 75 Closed-end funds -2.9 5.2 8.5 -6.3 6.9 16.3 24.4 -2.6 -1.7 17.0 31.1 24.1 76 Government-sponsored enterprises 106.3 314.0 291.3 256.4 309.0 335.3 236.7 130.1 203.5 277.8 302.7 112.6 27 Federally related mortgage pools 114.6 192.6 273.8 199.4 338.5 285.3 499.8 346.1 171.6 294.9 272.3 250.6 78 Asset-backed securities issuers (ABSs) 163.8 281.7 194.1 172.1' 266.2' 394.1' 234.1' 208.4 173.2 368.1 291.4 266.1 79 Finance companies 23.1 77.3 97.1' 108.6' -4.8' -99.6' -26.5' 42.2 83.9 -14.8 -2.4 56.6 .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 14.0 26.3 31.8 27.7 6.7 -8.6 31.0 37 Brokers and dealers 14.9 6.8 -34.7 68.9 92.4 -110.5 -219.5 402.8 -208.6 138.8 19.6 1.3 33 Funding corporations 50.4 -15.8 124.0 35.0 -95.8 60.4' 6.1' -45.0 165.2 -324.3 374.5 -43.3 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets l,522.2r 2,158.7r 2,117.4r l,732.3r l,998.7r 2,131.2r l,923.6r 2,498.1 2,152.7 2,642.7 2,264.4 3,347.2 Other financial sources 35 Official foreign exchange .7 6.6 -8.7 -.4 4.3 .2 -3.0 12.9 24.6 44..99 44..99 ..66 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 .0 .9 .6 2.4 .0 .6 1.6 38 Foreign deposits 107.7 6.5 61.1' 134.2' 30.7' 9.6' -43.8' 66.1 53.0 20.3 -73.7 78.6 39 Net interbank transactions -19.7 -31.8 15.0 15.1 -28.0 24.5 3.3 -166.5 62.4 170.0 -4.1 -123.5 40 Checkable deposits and currency 41.2 47.3 151.2 -71.4 204.3 278.1 -200.5 210.2 208.0 -43.7 271.3 94.2 41 Small time and savings deposits 97.1 152.4 45.1 188.8 267.2 329.7 288.3 215.6 323.4 257.2 261.6 437.6 47 Large time deposits 122.5 91.8 131.1 116.2 68.6 77.8 270.0 34.8 36.8 -140.2 191.6 43.4 43 Money market fund shares 155.9 287.2 249.1 233.3 428.6 379.8 -312.5 104.2 -196.6 337.6 ^141.4 186.0 44 Security repurchase agreements 120.9 91.3 169.8 113.2 22.3 -138.3 119.4 362.4 -91.1 29.2 -50.4 564.3 45 Corporate equities ^16.5 -113.4' .2 3.4' 103.6' 150.5' 50.1' 176.5 -120.7 84.1 99.6 52.0 46 Mutual fund shares 265.1 279.5 191.2 235.0 201.4 255.9 386.9 100.0 37.1 206.9 189.1 348.4 47 Trade payables 139.8 106.4 268.5' 419.5' -73.4' -126.1' 194.8' 48.9 126.2 157.1 141.4 202.4 48 Security credit 111.0 103.2 104.4 146.1 3.1 -383.7 -190.7 -131.9 -69.6 44.1 229.8 641.8 49 Life insurance reserves 59.3 48.0 50.8 50.2 77.2 119.6 54.0' 71.4 60.8 54.2 94.0 70.0 50 Pension fund reserves 201.4 217.4 181.8 209.0 210.8 158.0 148.8' 191.7 287.2 232.7 269.5 245.5 51 Taxes payable 22.3 19.6 30.7 32.8 17.4 -55.2 7.2' 40.5 53.8 7.2 55.2 45.1 52 Investment in bank personal trusts -53.0 -46.1 -8.1 56.6 -59.9 -57.7 -3.7 -2.4 -2.1 -1.3 -79.9 -43.7 53 Noncorporate proprietors' equity -40.7 -57.8 -62.4 -11.5 -18.6 8.4 1.5 -32.9 -83.9 -40.9 -22.1 8.0 54 Miscellaneous 496.9R 953.3' 1,125.5' 1,371.8' 683.1' 200.5' 120.3' 641.9 876.1 160.6 789.2 908.8 55 Total financial sources 3,304.2r 4,320.6r 4,811.9r 4,972.6r 4,142.8r 3,362.7r 2,815.1r 4,442.2 3,740.4 4,182.8 4,190.5 7,108.5 Liabilities not identified as assets (—) 56 Treasury currency -.2 -.1 -.7 -1.2 -.1 .0 -1.5 -.9 1.1 -1.1 -.2 .5 57 Foreign deposits 106.2 -8.5 42.8' 78.5' 11.1' ^16.9' -87.1' 99.1 23.9 36.7 -70.4 112.7 58 Net interbank liabilities -19.9 3.8 .1 20.4 17.2 22.6 39.8 -13.0 16.7 -15.1 6.1 -42.2 59 Security repurchase agreements 63.2 57.7 35.7 122.6 -53.9 -166.2 156.9 227.6 -291.8 -62.0 112.2 292.4 60 Taxes payable 28.0 19.7 11.7 26.2 22.0 34.6 17.9' -52.2 21.5 -55.6 -20.2 -12.4 61 Miscellaneous -285.5' -208.5' -279.7' -527.2' -341.2' -278.7' -336.8' 15.2 98.9 75.3 -329.2 129.1 Floats not included in assets (—) 62 Federal government checkable deposits -2.7 2.6 -7.4 9.0 5.7 -91.8 15.1 77.1 -40.3 -51.7 153.1 -104.9 63 Other checkable deposits -3.9 -3.1 -.8 1.7 4.5 5.7 6.1 7.1 7.6 8.4 9.0 9.7 64 Trade credit -25.5 -43.3 6.8 22.4' -6.5 73.6' -26.6' -53.6 -14.8 18.5 -3.8 24.3 65 Total identified to sectors as assets 3,397.9r 4,452.4r 4,955.0r 5,192.2r 4,414.1r 3,749.3r 2,987.9r 4,097.1 3,865.4 4,181.8 4,291.9 6,649.1 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F. 1 and F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • October 2003 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 2001 2002 2003 Q4 Qi Q2 Q3 Q4' QI' Q2 Nonfinancial sectors 1 Total credit market debt owed by 1166,,224400..88rr 1177,,330066..55rr 1188,,117711..00rr 1199,,228866..00rr 1199,,228866..00rr 1199,,553300..44'' 1199,,884422..66rr 2200,,118822..99rr 20,655.2 2200,,995533..22 2211,,448866..66 By sector and instrument 2 Federal government 3,752.2 3,681.0 3.385.1 3,379.5 3,379.5 3,430.3 3,451.4 3,540.8 3,637.0 3,700.6 3,806.9 3 Treasury securities 3,723.7 3,652.7 3,357.8 3,352.7 3,352.7 3,404.0 3,424.6 3,513.6 3,609.8 3,673.7 3,779.9 4 Budget agency securities and mortgages 28.5 28.3 27.3 26.8 26.8 26.3 26.8 27.2 27.3 26.9 27.0 5 Nonfederal 12,488.7r 13,625.5' 14,785.9' 15,906.5' 15,906.5' 16,100.1' 16,391.2' 16,642.1' 17,018.1 17,252.7 17,679.7 By instrument 6 Commercial paper 193.0 230.3 278.4 190.1 190.1 167.5 148.4 142.2 126.0 127.1 107.5 1 Municipal securities and loans 1,402.9 1,457.2 1.480.9 1,603.7' 1,603.7' 1,627.5' 1,682.0' 1,707.9' 1,764.5 1,791.8 1,844.9 8 Corporate bonds 1,846.0 2,063.9 2,225.1 2,565.6 2,565.6 2,629.0 2,676.9 2,669.6 2,698.2 2,742.9 2,820.3 9 Bank loans n.e.c 1.150.2 1,233.2 1,335.0 1,253.5 1,253.5 1,240.1 1,195.0 1,162.2 1,166.5 1,141.8 1,129.5 10 Other loans and advances 826. lr 852.4' 936.9' 938.7' 938.7' 934.7' 948.1' 955.0' 960.7 962.3 979.8 11 Mortgages 5,640.4r 6,238.1' 6,802.0' 7,501.1' 7,501.1' 7,665.4' 7,879.6' 8,112.8' 8,369.4 8,578.9 8,872.6 12 Home 4,362.9 4,787.2 5,205.4 5.738.1 5,738.1 5,877.2 6,049.6 6,247.9 6,459.3 6,638.0 6,884.2 13 Multifamily residential 307.9r 343.4' 376.4' 421.9' 421.9' 429.1' 439.5' 447.4' 458.7 467.1 479.7 14 Commercial 873.0r 1,005.1' 1,111.4' 1,224.7' 1,224.7' 1,241.0' 1,270.1' 1,293.9' 1,326.6 1,347.4 1,379.4 15 Farm 96.6 102.3 108.9 116.3 116.3 118.1 120.4 123.6 124.8 126.4 129.3 16 Consumer credit 1,430. r 1,550.4' 1,727.7' 1,853.7' 1,853.7' 1,835.8' 1,861.1' 1,892.5' 1,932.9 1,907.8 1,925.1 By borrowing sector 1/ Households 6,012.0r 6,511.0' 7,080.8' 7,695.4' 7,695.4' 7,812.5' 7,996.6' 8,200.1' 8,467.2 8,610.8 8,874.2 18 Nonfinancial business 5,338.3' 5,937.7' 6.512.8' 6,913.0' 6,913.0' 6,967.6' 7,024.0' 7,048.0' 7,107.5 7,175.0 7,289.8 19 Corporate 3,790.7' 4,202.2' 4,582.4' 4,818.3' 4,818.3' 4,845.7' 4,864.2' 4,854.1' 4,872.9 4,912.5 4,987.7 20 Nonfarm noncorporate 1,383.7 1,566.1 1.750.2 1,907.0 1,907.0 1,934.7 1,968.0 1,999.0 2,039.0 2,067.5 2,104.1 21 Farm 163.9 169.4 180.2 187.7 187.7 187.1 191.8 194.9 195.6 194.9 198.1 22 State and local government 1,138.3 1,176.9 1,192.3 1,298.1' 1,298.1' 1,320.0' 1,370.6' 1,394.0' 1,443.4 1,466.9 1,515.7 23 Foreign credit market debt held in United States 639.3' 652.5r 709.5r 659.7r 659.7r 675.9r 674.1' 665.7r 665.8 669.8 656.9 24 Commercial paper 72.9 89.2 120.9 106.7 106.7 123.6 130.2 134.0 142.8 155.7 173.1 25 Bonds 450.6' 452.5' 467.7' 443.2' 443.2' 439.6' 426.1' 417.3' 409.8 402.4 379.0 26 Bank loans n.e.c 58.7 59.2 70.5 63.2 63.2 66.7 72.2 69.3 68.6 67.6 59.7 27 Other loans and advances 57.1 51.6 50.3 46.6 46.6 46.0' 45.5 45.1' 44.6 44.1 45.0 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 16,880.1r 17,958.9r 18,880.5r 19,945.7r 19,945.7' 20,206.3r 20,516.6' 20,848.6r 21,320.9 21,623.0 22,143.5 Financial sectors 29 Total credit market debt owed by financial sectors 6,543.6 7,617.2' 8,439.0' 9,370.3' 9,370.3' 9,565.8r 9,778.0r 9,982.6r 10,293.9 10,520.9 10,734.1 By instrument 30 Federal government-related 3,292.0 3,884.0 4,317.4 4.944.1 4,944.1 5,116.9 5,238.8 5,344.0 5,498.1 5,611.1 5,726.2 31 Government-sponsored enterprise securities . . . 1,273.6 1,591.7 1,825.8 2,114.0 2,114.0 2,161.8 2,197.2 2,259.5 2,339.9 2,384.8 2,437.2 32 Mortgage pool securities 2,018.4 2,292.2 2,491.6 2,830.1 2,830.1 2,955.1 3,041.6 3,084.5 3,158.2 3,226.3 3,289.0 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 3,251.6 3,733.2' 4,121.5' 4,426.2' 4,426.2' 4,448.9' 4,539.2' 4,638.6' 4,795.8 4,909.8 5,007.8 35 Open market paper 906.7 1.082.9 1,210.7 1,148.8 1,148.8 1,090.9 1,046.9 1,049.5 1,078.7 1,076.5 1,036.5 36 Corporate bonds 1,878.7 2,086.3' 2.298.5' 2,615.8' 2,615.8' 2,707.4' 2,823.6' 2,878.9' 3,031.9 3,144.7 3,276.2 37 Bank loans n.e.c 105.8 91.5 91.1 104.2 104.2 102.3 110.6 130.3 105.3 92.9 98.7 38 Other loans and advances 288.7 395.8 438.3 473.2 473.2 462.4 470.6' 491.0' 489.8 506.5 506.5 39 Mortgages 71.6 76.7 82.9 84.2 84.2 85.9 87.6 88.9 90.1 89.2 90.1 By borrowing sector 40 Commercial banks 188.6 230.0 266.7 296.0 296.0 295.8 310.2' 318.7' 325.6 324.8 336.7 41 Bank holding companies 193.5 219.3 242.5 266.1 266.1 269.0 264.2 271.8 286.4 302.8 319.0 42 Savings institutions 212.4 260.4 287.7 295.1 295.1 280.5 275.3 286.3' 281.4 287.2 277.1 43 Credit unions 1.1 3.4 3.4 4.9 4.9 5.5 6.0 6.8 6.9 7.6 8.0 44 Life insurance companies 2.5 3.2 2.5 3.1 3.1 3.7 4.0 4.5 5.1 6.3 6.6 45 Government-sponsored enterprises 1,273.6 1,591.7 1.825.8 2,114.0 2,114.0 2,161.8 2,197.2 2,259.5 2,339.9 2,384.8 2,437.2 46 Federally related mortgage pools 2,018.4 2,292.2 2.491.6 2,830.1 2.830.1 2,955.1 3,041.6 3,084.5 3,158.2 3,226.3 3,289.0 47 Issuers of asset-backed securities (ABSs) 1,398.0 1,610.3 1.812.3' 2,104.6' 2,104.6' 2,161.4' 2,220.6' 2,272.8' 2,373.2 2,444.1 2,517.5 48 Brokers and dealers 42.5 25.3 40.9 42.3 42.3 38.4 42.8 46.6 40.6 50.2 46.2 49 Finance companies 625.5 696.1' 778.0' 779.2' 779.2' 763.8' 788.9' 808.0' 822.6 813.6 856.3 50 Mortgage companies 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 16.0 51 Real estate investment trusts (REITs) 158.8 165.1 167.8 170.2 170.2 172.1 178.4 185.3 190.0 194.4 197.6 52 Funding corporations 412.6 504.0 503.7 448.4 448.4 442.6 432.8 421.5 447.9 462.7 426.8 All sectors 53 Total credit market debt, domestic and foreign . 23,423.8r 25,576.1r 27,319.4r 29,316.0r 29,316.0r 29,772.1' 30,294.7r 30,831.2' 31,614.9 32,143.9 32,877.5 54 Open market paper 1,172.6 1,402.4 1,610.0 1,445.6 1,445.6 1,382.0 1,325.5 1,325.7 1,347.5 1,359.2 1,317.1 55 U.S. government securities 7,044.2 7,564.9 7.702.5 8,323.6 8,323.6 8,547.2 8,690.2 8,884.8 9,135.1 9,311.7 9,533.1 56 Municipal securities 1,402.9 1,457.2 1,480.9 1,603.7' 1,603.7' 1,627.5' 1,682.0' 1,707.9' 1,764.5 1,791.8 1,844.9 57 Corporate and foreign bonds 4,175.4' 4,602.6' 4,991.4' 5,624.7' 5,624.7' 5,776.1' 5,926.6' 5,965.8' 6,139.9 6,290.0 6,475.5 58 Bank loans n.e.c 1,314.8 1,383.8 1,496.6 1,421.0 1,421.0 1,409.1 1,377.8 1,361.7 1,340.4 1,302.3 1,287.9 59 Other loans and advances 1,171.9' 1,299.9' 1.425.5' 1.458.4' 1,458.4' 1,443.1' 1,464.3' 1,491.1' 1,495.1 1,512.9 1,531.3 60 Mortgages 5,712.0' 6,314.8' 6.884.9' 7.585.3' 7,585.3' 7,751.3' 7,967.2' 8,201.7' 8,459.5 8,668.2 8,962.6 61 Consumer credit 1,430.1' 1,550.4' 1,727.7' 1.853.7' 1,853.7' 1,835.8' 1,861.1' 1,892.5' 1,932.9 1,907.8 1,925.1 1. Data in this table appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds 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 Q4 Ql Q2' Q3 Q4' QL' Q2 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 23,423.8r 25,576. lr 27,319.4r 29,316.0r 29,316.0r 29,772.1r 30,294.7 30,831.2r 31,614.9 32,143.9 32,877.5 ? Domestic nonfederal nonfinancial sectors 3,304.8R 3,622.8' 3,572.5' 3,585.9' 3,585.9' 3,594.8' 3,652.9 3,601.4' 3,644.0 3,539.0 3,528.7 Household 2,256.3R 2,564.4' 2,490.1' 2,475.8' 2,475.8' 2,493.8' 2,539.0 2,477.1' 2,497.6 2,422.1 2,384.9 4 Nonfinancial corporate business 241.5 226.0 249.4 237.1 237.1 231.6' 229.5 238.9' 249.3 239.5 249.4 Nonfarm noncorporate business 67.5 64.6 65.9 67.9 67.9 68.7 69.6 70.3' 71.3 71.2 72.2 6 State and local governments 739.4 767.8 767.0 805.1 805.1 800.6' 814.7 815.1' 825.9 806.2 822.2 7 Federal government 221.5' 261.1' 272.7' 278.7' 278.7' 281.0' 280.1 287.9' 288.7 284.1 283.7 8 Rest of the world 2,273.5' 2,306.8' 2,476.9' 2,724.3' 2,724.3' 2.789.5' 2,900.9 3,003.2' 3,131.0 3,223.9 3,484.7 9 Financial sectors 17,624.1 19,385.4 20,997.4' 22,727.1' 22,727.1' 23,106.8' 23,460.8 23,938.7' 24,551.1 25,096.9 25,580.3 10 Monetary authority 452.5 478.1 511.8 551.7 551.7 575.4 590.7 604.2 629.4 641.5 652.1 11 Commercial banking 4,336.1 4,648.3 5,006.3 5,210.5 5,210.5 5,231.3 5,328.3 5,476.2 5,614.9 5,673.6 5,829.1 P U.S.-chartered banks 3,761.4 4,080.0 4,419.5 4,610.1 4,610.1 4,629.3 4,719.7 4,858.4 5,003.9 5,055.6 5,198.1 N Foreign banking offices in United States 504.5 487.4 511.3 510.7 510.7 507.7 512.6 521.2 516.9 519.0 517.9 14 Bank holding companies 26.5 32.7 20.5 24.7 24.7 27.7 28.1 27.7 27.8 33.0 42.9 15 Banks in U.S.-affiliated areas 43.8 48.3 55.0 65.0 65.0 66.6 67.9 68.8 66.3 66.1 70.3 16 Savings institutions 964.7 1,032.4 1,088.6 1,131.4 1,131.4 1,134.7 1,130.9 1,153.8 1,166.8 1,214.4 1,238.8 17 Credit unions 324.2 351.7 379.7 421.2 421.2 434.3 452.9 455.3 463.9 473.2 494.2 18 Bank personal trusts and estates 194.1 222.0 222.8 194.7 194.7 195.0 195.2 195.4 195.6 190.8 186.4 19 Life insurance companies 1,828.0 1,886.0 1,943.9 2,074.8 2,074.8 2,141.2' 2,192.3 2,265.7' 2,307.8 2,373.0 2,426.7 20 Other insurance companies 521.1 518.2 509.4 518.4 518.4 527.6 536.4 541.9 558.3 572.7 583.4 21 Private pension funds 621.1' 635.2' 666.5' 673.1' 673.1' 684.9' 690.4 700.5' 700.5 702.3 712.2 22 State and local government retirement funds 704.6 751.4 806.0 788.4 788.4 806.0 792.4 789.8 804.9 805.0 820.6 23 Money market mutual funds 965.9 1,147.8 1,290.9 1,536.9 1,536.9 1,496.9 1,419.6 1,405.7 1,511.6 1,485.5 1,480.3 ?4 Mutual funds 1,028.4 1,076.8 1,097.8 1,223.8 1,223.8 1.276.8 1,291.6 1,334.5 1,365.4 1,412.0 1,469.8 Closed-end funds 98.4 106.9 100.6 107.4 107.4 113.5 112.9 112.4 116.7 124.5 130.5 26 Government-sponsored enterprises 1,252.3 1,543.5 1,807.1 2,114.3 2,114.3 2.163.8 2,200.2 2,253.0' 2,320.9 2,387.0 2,419.0 27 Federally related mortgage pools 2,018.4 2,292.2 2,491.6 2,830.1 2,830.1 2,955.1 3,041.6 3,084.5 3,158.2 3,226.3 3,289.0 ?8 Asset-backed securities (ABSs) issuers 1,219.4 1,413.6 1,585.7' 1,851.9' 1,851.9' 1.902.6' 1,956.2 2,002.9' 2,097.8 2,162.8 2,231.0 29 Finance companies 645.5 742.6' 851.2' 846.4' 846.4' 834.4' 848.2 860.8' 867.6 861.1 879.2 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 42.5 49.1 57.0 63.9 65.6 63.5 71.2 3? Brokers and dealers 189.4 154.7 223.6 316.0 316.0 299.6 352.6 335.2 344.4 390.9 340.2 33 Funding corporations 152.3 276.0 311.0 216.7 216.7 206.3' 191.2 214.6' 167.2 236.2 225.5 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 23,423.8r 25,576.1r 27,319.4r 29,316.0r 29,316.0r 29,772. lr 30,294.7 30,831.2r 31,614.9 32,143.9 32,877.5 Other liabilities 35 Official foreign exchange 60.1 50.1 46.1 46.8 46.8 45.7 47.2 53.1 55.8 57.6 58.9 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 24.7 24.8 25.5 25.5 25.6 26.0 38 Foreign deposits 624.9' 686.1' 820.3' 851.0' 851.0' 840.1' 856.6 869.8' 874.9 856.5 876.1 39 Net interbank liabilities 189.4 202.4 221.2 191.4 191.4 162.4 131.4 150.7 205.9 175.5 155.6 40 Checkable deposits and currency 1,333.3 1,484.5 1,413.1 1,603.2 1,603.2 1,518.1 1,571.9 1,610.7 1,646.7 1,680.4 1,703.5 41 Small time and savings deposits 2,626.5 2,671.6 2,860.4 3,127.6 3,127.6 3,236.7 3,256.4 3,336.8 3,398.7 3,502.5 3,575.0 42 Large time deposits 805.3 936.4 1,052.6 1,121.1 1,121.1 1,178.9 1,188.7 1,199.9 1,171.5 1,209.1 1,222.4 43 Money market fund shares 1,329.7 1,578.8 1,812.1 2,240.7 2,240.7 2,203.3 2,151.2 2,105.9 2,223.9 2,156.2 2,120.8 44 Security repurchase agreements 913.8 1,083.6 1,196.8 1,231.8 1,231.8 1,262.4 1,343.1 1,313.7 1,336.8 1,323.1 1,453.5 45 Mutual fund shares 3,613.1 4,538.5 4,434.6 4,135.5 4,135.5 4,247.0 3,926.6 3,452.3 3,639.4 3,591.0 4,072.6 46 Security credit 572.2 676.6 822.7 825.9 825.9 778.0 745.6 726.3 738.8 796.6 957.4 47 Life insurance reserves 718.3 783.9 819.1 880.0 880.0 894.2' 901.2 902.9' 920.9 941.2 975.2 48 Pension fund reserves 8,210.5' 9,067.6' 9,070.9' 8,681.1' 8,681.1' 8,812.9' 8.329.4 7,725.4' 8,005.7 7,923.8 8,562.9 49 Trade payables 2,073.8 2,342.3' 2,761.8' 2,688.4' 2,688.4' 2,715.3' 2,717.9 2,767.1' 2,820.1 2,834.2 2,874.4 50 Taxes payable 170.7 201.4 234.2 251.6 251.6 259.7' 265.8 281.7' 278.8 298.6 306.4 51 Investment in bank personal trusts 1,001.0 1,130.4 1,095.8 960.7 960.7 963.2 893.5 811.6 840.9 806.3 858.4 52 Miscellaneous 8,298.5' 9,294.9' 10,470.7' 11,177.0' 11,177.0' 11,267.0' 11,556.2 12,003.5' 11,704.3 11,952.4 11,837.6 53 Total liabilities 55,993.9r 62,332.2r 66,477.2r 69,356.5r 69,356.5r 70,183.9r 70,204.6 70,170.3' 71,505.6 72,276.6 74,516.6 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 21.6 21.4 21.6 21.8 21.8 21.9 22.3 22.8 23.2 22.4 22.8 5.5 Corporate equities 15,547.3' 19,522.8' 17,627.0' 15,316.0' 15,316.0' 15,243.6' 13,344.2 10,951.6' 11,875.2 11,422.2 13,253.6 56 Household equity in noncorporate business 4,279.4 4,510.0 4,743.3' 4,824.6' 4,824.6' 4,848.0' 4,912.8 4,974.3' 5,020.1 5,069.5 5,105.0 Liabilities not identified as assets (-) 57 Treasury currency -6.4 -7.1 -8.5 -8.6 -8.6 -8.9 -9.1 -8.9 -9.1 -9.2 -9.1 58 Foreign deposits 525.5' 568.2' 646.6' 657.7' 657.7' 636.0' 660.7 666.7' 675.9 658.3 686.5 59 Net interbank transactions -26.5 -28.5 -4.3 11.1 11.1 21.9 17.5 16.5 15.3 19.3 6.9 60 Security repurchase agreements 230.6 266.4 388.9 348.6 348.6 401.4 463.9 380.7' 356.2 397.6 477.1 61 Taxes payable 121.2 129.4 146.3 121.7 121.7 110.7' 163.6 155.0' 154.9 144.8 152.4 62 Miscellaneous -1,934.5' -2,331.6' -3,422.0' -3,594.1' -3,594.1' -3,472.3' -3,502.4 -3,396.0' -3,504.0 -3,520.5 -3,787.7 Floats not included in assets (-) 63 Federal government checkable deposits -3.9 -9.8 -2.3 -12.3 -12.3 -9.6 -9.3 -14.8 -11.7 27.4 -17.1 64 Other checkable deposits 23.1 22.3 24.0 28.6 28.6 26.3 31.4 25.8 35.9 34.2 40.1 65 Trade credit 84.8 95.6 122.0 115.5 115.5 61.0' 15.0 9.8' 96.4 47.1 19.7 66 Totals identified to sectors as assets 76,110.3r 86,905.3r 90,179.0r 90,988.8r 90,988.8r 91,677.9' 89,795.0 87,418.1r 89,717.7 90,106.5 94,422.0 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L. 1 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 • October 2003 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 2002 2003 2002 2003 2002 2003 Q3 Q4 Ql Q2r Q3 Q4 Ql Q2 Q3 Q4 Ql Q2r Output (1997=100) Capacity (percent of 1997 output) Capacity utilization rate (percent)2 1 Total industry ltl.4 110.4 110.5 109.5 146.2 146.6 147.0 147.4 76.2 75.3 75.2 74.3 2 Manufacturing 112.3 111.2 111.0 110.3 151.1 151.4 151.7 152.0 74.3 73.5 73.2 72.6 3 Manufacturing (NAICS) 112.6 111.5 111.3 110.4 152.5 152.8 153.2 153.6 73.8 73.0 72.6 71.9 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 Primary metal 85.9 86.0 83.9 79.7 111.4 110.8 110.7 110.8 77.1 77.6 75.8 71.9 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 88.0 129.9 129.9 129.8 129.6 68.3 66.7 67.2 67.9 8 Computer and electronic products 222.6 224.4 227.8 231.7 355.4 360.3 365.9 372.1 62.6 62.3 62.3 62.3 y Electrical equipment, appliances, and components 97.7 96.8 95.7 94.9 128.6 128.2 128.0 127.8 75.9 75.5 74.7 74.3 10 Motor vehicles and parts 121.7 120.0 120.5 116.7 147.1 148.4 149.9 151.4 82.7 80.8 80.4 77.0 li Aerospace and miscellaneous transportation equipment 85.9 85.1 85.8 86.3 145.3 145.1 145.1 145.1 59.1 58.7 59.1 59.5 12 Nondurable manufacturing 100.1 98.8 98.5 97.8 127.5 127.3 127.2 127.1 78.5 77.6 77.4 77.0 13 Food, beverage, and tobacco products .... 100.1 98.8 98.3 98.0 125.7 125.6 125.5 125.2 79.7 78.7 78.3 78.3 14 Textile and product mills 82.9 81.2 79.1 77.1 111.7 111.1 110.6 110.0 74.2 73.1 71.5 70.1 15 Paper 95.7 95.8 93.5 93.5 114.0 113.8 113.5 113.2 84.0 84.2 82.4 82.7 16 Petroleum and coal products 102.3 102.8 102.5 103.0 115.2 115.7 116.1 116.5 88.7 88.9 88.3 88.4 17 Chemical 106.4 104.1 105.4 105.2 141.2 141.3 141.5 141.7 75.3 73.7 74.5 74.3 18 Plastics and rubber products 107.3 105.6 105.3 104.1 133.6 132.9 132.4 131.6 80.4 79.4 79.5 79.1 19 Other manufacturing (non-NAICS) 106.0 106.0 107.0 107.7 129.5 128.7 128.2 127.8 81.8 82.3 83.4 84.3 20 Mining 93.5 93.7 93.1 93.1 110.1 110.2 110.3 110.4 84.9 85.1 84.4 84.3 21 Electric and gas utilities 112.5 111.5 114.3 110.2 127.6 129.7 131.5 133.1 88.2 86.0 86.9 82.8 MEMOS 22 Computers, communications equipment, and semiconductors 295.5 300.4 306.4 315.7 475.3 483.3 493.3 504.9 62.2 62.2 62.1 62.5 23 Total excluding computers, communications equipment, and semiconductors 101.3 100.3 100.3 99.1 130.5 130.6 130.8 131.1 77.6 76.8 76.6 75.7 24 Manufacturing excluding computers, communications equipment, and semiconductors 100.5 99.4 99.1 98.2 132.6 132.6 132.6 132.7 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 UTILIZATION '—Continued Seasonally adjusted 1973 1975 Previous cycle3 Latest cycle4 2002 2003 High Low High Low High Low July Feb. Mar. Apr.r May' June' JulyP Capacity utilization rate (percent)2 1 Total industry 88.8 74.0 86.6 70.8 85.1 78.6 76.4 75.3 74.8 74.3 74.3 74.2 74.5 2 Manufacturing 88.0 71.6 86.3 68.6 85.5 77.2 74.3 73.3 73.1 72.5 72.6 72.7 72.8 3 Manufacturing (NAICS) 88.1 71.4 86.3 67.9 85.5 77.0 74.0 72.7 72.4 71.8 71.9 72.0 72.1 4 Durable manufacturing 88.9 69.6 87.0 63.1 84.5 73.4 70.6 69.3 68.7 68.2 68.3 68.5 69.0 5 Primary metal 100.9 68.9 91.3 47.2 95.3 75.2 76.2 77.0 73.5 72.1 71.5 72.3 72.8 6 Fabricated metal products .... 91.8 69.6 83.1 61.7 80.1 71.0 71.5 69.5 68.8 68.4 68.4 68.2 68.3 7 Machinery 94.2 74.2 92.8 58.3 84.7 72.9 68.0 67.4 67.4 67.3 67.9 68.5 68.4 8 Computer and electronic products 87.0 66.9 89.8 77.3 81.5 76.4 62.6 62.2 62.3 62.1 62.5 62.3 62.7 9 Electrical equipment, appliances, and components 99.3 68.5 91.9 64.4 87.5 75.0 76.4 75.1 74.4 73.4 74.6 74.7 74.2 10 Motor vehicles and parts 95.3 55.3 96.2 45.2 90.0 56.6 83.2 80.1 78.7 77.4 76.3 77.4 79.3 11 Aerospace and miscellaneous transportation equipment . 75.0 66.3 84.6 69.8 88.9 81.9 59.0 59.0 59.1 59.2 59.6 59.6 59.7 12 Nondurable manufacturing 87.5 72.5 85.7 75.6 86.9 81.8 78.7 77.4 77.6 76.9 77.0 77.0 76.7 13 Food, beverage, and tobacco products 85.9 78.0 84.3 80.2 85.5 81.3 80.0 78.2 78.3 78.1 78.2 78.5 78.0 14 Textile and product mills .... 89.8 62.8 90.1 72.3 91.1 77.1 75.0 71.7 72.2 70.7 70.0 69.4 68.7 15 Paper 97.4 74.7 95.6 81.3 94.0 85.4 83.5 81.9 83.4 82.1 83.0 82.9 82.7 16 Petroleum and coal products .. 93.2 81.0 92.3 71.1 88.9 82.5 89.5 87.7 89.3 87.9 89.3 87.9 88.9 17 Chemical 85.0 68.9 83.0 67.9 85.6 80.8 75.7 74.9 74.8 74.7 73.9 74.3 73.8 18 Plastics and rubber products . . 96.3 61.6 90.5 70.5 91.2 77.1 80.3 79.5 79.9 78.5 79.5 79.3 79.4 19 Other manufacturing (non-NAICS). 85.7 75.7 88.1 85.7 90.2 79.1 80.9 83.9 84.5 83.9 84.1 85.0 84.0 20 Mining 93.6 87.6 94.2 78.6 85.6 83.3 85.7 84.1 84.1 84.2 83.9 84.9 84.6 21 Electric and gas utilities 96.2 82.7 87.9 77.2 92.6 84.2 89.6 88.4 84.6 84.5 83.4 80.4 83.2 MEMOS 22 Computers, communications equipment, and semiconductors . 84.5 63.1 89.9 75.6 80.4 74.6 62.1 62.1 62.4 62.4 62.6 62.5 62.5 23 Total excluding computers, communications equipment, and semiconductors 89.1 74.3 86.6 70.5 85.5 78.8 77.9 76.8 76.2 75.7 75.7 75.6 75.9 24 Manufacturing excluding computers communications equipment, and semiconductors . 88.3 71.9 86.3 68.1 86.1 77.3 75.9 74.8 74.5 73.9 74.0 74.2 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 • October 2003 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted „ 2002 2002 2003 Uroup p p r o o r - - 2 a 0 v 0 g 2 . tion July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May' June' July? Index (1997= 100) MAJOR MARKETS 1 Total IP 100.0 110.5 111.6 111.3 111.2 110.6 110.8 109.9 110.7 110.7 110.1 109.5 109.5 109.5 110.0 Market groups 2 Final products and nonindustrial supplies 59.8 109.3 110.1 109.8 109.8 109.1 109.3 108.2 109.1 109.3 108.7 108.2 108.4 108.4 108.9 3 Consumer goods 30.5 107.5 108.5 107.8 107.9 107.0 107.8 106.6 107.7 107.8 107.2 106.8 106.5 106.7 107.2 4 Durable 7.5 117.3 120.0 119.3 118.7 117.0 121.0 117.8 120.5 118.5 117.9 116.9 116.5 117.6 120.4 5 Automotive products 4.3 125.4 130.6 130.6 129.3 125.9 132.4 125.9 131.3 128.8 127.4 125.9 124.3 126.9 131.3 6 Home electronics 0.3 142.9 137.0 135.4 142.6 140.1 142.1 145.3 152.7 145.9 152.0 154.7 152.4 155.1 161.7 7 Appliances, furniture, carpeting 1.3 106.9 106.9 104.5 104.6 104.9 107.1 107.7 105.4 105.5 105.7 106.0 108.0 106.6 108.2 8 Miscellaneous goods 1.6 98.5 99.2 98.3 97.8 98.2 98.3 98.7 98.7 96.9 96.2 94.9 95.4 95.2 94.6 9 Nondurable 22.9 104.1 104.6 103.8 104.2 103.6 103.3 102.8 103.4 104.1 103.6 103.3 103.1 102.9 102.9 10 Non-energy 19.0 102.6 102.8 102.4 102.6 102.0 101.3 100.8 101.1 101.6 101.7 101.3 101.1 101.7 100.8 11 Foods and tobacco 10.3 99.5 99.8 99.2 99.1 98.7 97.9 97.4 97.6 97.2 97.2 97.0 97.0 97.3 96.6 12 Clothing 1.0 72.4 73.2 71.3 72.1 70.2 70.6 69.9 69.7 69.1 68.0 66.1 65.8 64.2 63.4 13 Chemical products 4.8 119.1 119.5 119.0 119.5 118.3 118.0 116.9 117.9 120.2 120.6 120.8 120.0 121.9 120.2 14 Paper products 2.3 108.1 107.1 108.4 109.8 110.0 108.8 109.0 108.3 110.2 111.0 110.0 110.3 111.5 110.4 15 Energy 4.0 112.0 114.0 111.6 112.8 111.8 114.0 113.3 115.7 117.2 113.8 113.9 113.3 109.7 113.8 16 Business equipment 9.7 107.3 107.3 108.1 106.9 106.0 106.1 104.6 105.6 105.9 105.5 104.8 105.3 105.7 106.1 17 Transit 1.7 81.2 80.2 81.1 79.7 77.3 77.9 75.4 75.7 74.5 73.9 73.9 73.6 73.5 73.5 18 Information processing 3.1 153.8 153.5 153.7 152.1 153.1 152.8 152.7 155.1 156.3 158.0 156.6 158.1 157.8 158.7 19 Industrial and other 4.9 91.5 92.0 92.9 92.0 91.2 91.1 89.7 90.4 90.8 89.9 89.2 89.5 90.5 90.9 20 Defense and space equipment 2.2 101.2 101.2 101.9 102.0 102.5 101.7 102.3 104.1 104.8 105.2 104.7 106.0 106.5 107.7 21 Construction supplies 6.8 104.0 104.4 104.8 104.5 104.2 103.8 102.4 102.3 101.8 101.4 101.0 101.6 101.6 101.8 22 Business supplies 10.3 121.9 123.2 122.6 123.6 123.1 122.5 121.9 122.8 123.7 122.5 121.3 122.1 121.4 122.1 23 Materials 40.2 112.2 113.8 113.6 113.4 112.8 113.1 112.4 113.0 112.8 112.1 111.4 111.3 111.1 111.6 24 Non-energy 30.5 115.8 117.2 117.4 117.2 116.7 116.7 115.6 116.0 115.9 115.4 114.5 114.5 114.5 114.7 25 Durable 18.6 128.0 129.4 130.0 129.5 129.5 129.7 128.1 129.1 128.6 127.6 126.6 127.0 127.2 127.9 26 Consumer parts 4.2 110.8 113.4 112.3 112.4 111.7 114.6 111.1 113.8 111.9 110.9 110.5 109.5 110.2 111.8 27 Equipment parts 5.9 182.6 184.2 186.3 185.7 185.7 185.3 184.4 186.0 186.2 186.2 186.3 188.2 188.9 189.7 28 Other 8.4 97.1 97.7 98.3 97.7 98.0 97.2 96.4 96.3 96.3 95.0 93.6 93.9 93.7 93.9 29 Nondurable 11.9 97.0 98.4 98.2 98.3 97.1 97.0 96.5 96.2 96.4 96.7 95.9 95.5 95.2 94.8 30 Textile 0.8 77.6 79.6 77.8 78.4 77.2 77.0 75.3 74.1 74.2 73.8 72.2 70.7 69.8 68.1 31 Paper 3.0 94.8 95.8 96.1 96.7 96.8 96.9 95.8 94.4 93.6 94.8 92.8 93.9 93.2 93.1 32 Chemical 4.2 99.1 101.3 100.7 100.2 98.2 97.9 97.3 98.3 99.2 99.3 99.3 97.1 96.4 96.6 33 Energy 9.7 98.7 101.0 99.3 99.1 98.4 99.4 99.7 100.9 100.8 99.2 99.2 98.6 98.3 99.6 SPECIAL AGGREGATES 34 Total excluding computers, communication equipment, and semiconductors 94.7 100.5 101.5 101.2 101.2 100.5 100.6 99.8 100.5 100.5 99.8 99.2 99.2 99.1 99.6 35 Total excluding motor vehicles and parts 92.9 110.0 110.8 110.5 110.5 110.0 109.8 109.3 109.8 110.1 109.5 108.9 109.1 108.9 109.2 Gross value (billions of 1996 dollars, annual rates) 36 Final products and nonindustrial supplies 59.8 2,800.8 2,829.2r 2,822.7r 2,818.9r 2,794.7r 2,817.8 2,783.5 2,808.6 2,807.2 2,791.9 2,777.2 2,780.6 2,780.3 2,805.3 37 Final products 42.7 2,022.7 2,043.2r 2.039.1' 2,032.4' 2,011.7' 2,037.3 2,010.7 2,032.1 2,028.9 2,019.7 2,011.2 2,009.3 2,013.7 2,033.9 38 Consumer goods 30.5 1,386.5 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 1,382.6 1,378.4 1,380.3 1,396.2 39 Equipment total 12.2 627.2 628.8R 634.6' 628.7' 623.5' 624.4 615.8 620.9 622.5 620.9 618.4 621.9 624.8 628.1 40 Nonindustrial supplies 17.1 778.1 786.1' 783.6' 786.7' 783.3' 780.5 772.8 776.4 778.3 772.0 765.7 771.3 766.3 771.0 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 NAICS pro- 2002 Group code2 por- avg. tion July Aug. Sept. Oct. Nov. Feb. Mar. Apr.r Mayr June' Julyp Index (1997=100) INDUSTRY GROUPS 41 Manufacturing 84.6 111.4 112.3 112.4 112.1 111.4 111.6 110.6 111.1 111.1 110.9 110.1 110.3 110.6 110.8 42 Manufacturing (NAICS) 79.3 111.7 112.7 112.8 112.4 111.7 112.0 110.8 111.5 111.3 111.0 110.2 110.4 110.7 111.0 43 Durable manufacturing 43.4 121.1 122.2 122.7 122.0 121.5 122.2 120.5 121.9 121.3 120.5 119.8 120.2 120.7 121.8 44 Wood products ' ' 321 1.4 100.5 101.9 102.5 100.7 99.2 98.3 96.9 97.4 96.5 95.9 95.7 95.7 96.5 98.2 45 Nonmetallic mineral products 327 2.5 107.9 107.7 108.5 109.8 109.3 110.2 108.0 109.7 108.0 108.1 108.5 109.4 108.4 108.4 46 Primary metal 331 2.5 85.6 85.0 87.6 85.0 87.6 86.2 84.1 85.0 85.2 81.3 79.8 79.2 80.2 80.9 47 Fabricated metal products . 332 6.1 99.0 99.7 99.3 99.4 99.8 98.7 98.3 97.9 97.1 96.1 95.7 95.7 95.4 95.5 48 Machinery 333 5.3 87.9 88.4 89.4 88.2 86.8 87.4 85.8 86.7 87.4 87.5 87.2 88.0 88.7 88.5 49 Computer and electronic products 334 8.1 220.4 221.5 223.0 223.2 224.2 224.5 224.5 226.6 227.5 229.3 229.6 232.5 233.1 236.1 50 Electrical equipment, appliances, and components 335 2.4 97.7 98.4 98.0 96.5 96.6 97.0 96.9 95.7 96.1 95.2 93.9 95.4 95.4 94.7 51 Motor vehicles and parts . . 3361-3 7.1 117.3 122.1 122.0 121.1 118.3 123.9 117.8 122.9 120.0 118.4 116.9 115.6 117.6 121.0 52 Aerospace and miscellaneous transportation equipment 3364-9 3.3 87.6 85.7 86.3 85.7 85.5 84.8 85.2 86.0 85.6 85.7 85.9 86.5 86.5 86.6 53 Furniture and related products 337 1.7 101.3 101.4 100.5 101.4 100.7 100.6 98.9 98.8 98.6 97.3 97.0 97.7 96.9 99.1 54 Miscellaneous 339 3.1 109.5 110.6 110.2 109.1 109.3 108.6 110.0 109.5 109.4 108.4 106.7 106.6 106.9 106.5 55 Nondurable manufacturing . . 35.9 99.5 100.4 100.0 100.0 99.1 98.9 98.3 98.2 98.5 98.6 97.8 97.9 97.8 97.4 56 Food, beverage, and tobacco products .... 311,2 11.7 100.2 100.5 100.0 99.9 99.5 98.6 98.3 98.5 98.2 98.2 97.9 98.0 98.2 97.6 57 Textile and product mills . . 313,4 1.3 82.5 83.9 82.5 82.3 81.3 81.7 80.8 78.4 79.2 79.7 77.9 77.0 76.3 75.3 58 Apparel and leather 315,6 1.1 72.2 73.0 71.2 71.8 70.2 70.5 69.7 69.7 69.0 68.0 66.1 65.8 64.3 63.6 59 Paper 322 3.1 94.4 95.2 95.8 96.1 95.7 96.8 95.0 93.0 93.0 94.6 93.0 93.9 93.7 93.3 60 Printing and support 323 2.7 97.8 98.4 98.6 99.9 99.5 98.4 98.9 99.1 97.7 96.3 94.8 95.7 95.4 95.2 61 Petroleum and coal products 324 1.9 102.9 103.0 102.7 101.0 99.4 103.9 105.0 102.0 101.8 103.8 102.4 104.0 102.6 103.8 62 Chemical 325 10.2 105.1 106.9 106.2 106.1 104.6 104.2 103.4 104.4 106.0 105.8 105.7 104.7 105.3 104.7 63 Plastics and rubber products 326 3.9 106.0 107.5 107.3 107.2 106.4 105.8 104.6 104.9 105.3 105.6 103.5 104.7 104.2 104.1 64 Other manufacturing (non-NAICS) 1133,5111 5.3 105.5 105.0 105.8 107.1 106.7 105.4 105.9 105.3 107.5 108.1 107.3 107.5 108.5 107.1 65 Mining 21 6.0 93.8 94.4 93.9 92.2 92.3 93.6 95.2 93.6 92.8 92.8 93.0 92.6 93.8 93.4 66 Utilities 2211,2 9.3 110.2 113.7 •110.4 113.3 112.1 112.1 110.5 115.0 116.3 111.7 112.1 111.1 107.4 111.5 67 Electric 2211 8.1 111.8 115.7 112.2 115.8 113.7 113.3 112.2 116.8 118.0 113.6 113.7 112.7 108.7 113.8 68 Natural gas 2212 1.3 97.5 102.7 100.8 99.9 103.6 105.8 101.6 105.4 107.5 101.2 103.3 102.3 100.1 99.2 69 Manufacturing excluding computers, communications equipment, and semiconductors 79.3 99.8 100.6 100.6 100.4 99.7 99.8 98.8 99.3 99.2 98.9 98.1 98.2 98.5 98.6 70 Manufacturing excluding motor vehicles and parts 77.5 110.9 111.4 111.5 111.3 110.8 110.5 109.9 110.1 110.3 110.2 109.5 109.8 110.0 109.9 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 • October 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 -4,997 -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 -A,(fill -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 ^8,102 -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 -4,911 -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^t 1. 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 2003 AAsssseett 22000000 22000011 22000022 Jan. Feb. Mar. Apr. May June July Aug." 1 Total 67,647 68,654 79,006 78,434 78,579 80,049 80,405 82,287 81,660 80,620r 80,422 2 Gold stock1 11,046 11,045 11,043 11,043 11,043 11,043 11,043 11,044 11,044 1 l,043r 11,043 3 Special drawing rights2-3 10,539 10,774 12,166 11,298 11,368 11,392 11,476 11,880 11,720 11,646 11,619 4 Reserve position in International Monetary Fund2 14,824 17,854 21,979 21,953 21,686 22,858 22,738 23,214 23,210 22,746 22,463 5 Foreign currencies4 31,238 28,981 33,818 34,140 34,482 34,756 35,148 36,149 35,686 35,185 35,297 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 2003 AAsssseett 22000000 22000011 22000022 Jan. Feb. Mar. Apr. May June July Aug.? 1 Deposits 215 61 136 102 224 254 313 79 898 318 81 Held in custody 2 U.S. Treasury securities2 594,094 592,630 678,106 683,837 700,341 710,955 702,041 727,142 747,089 743,308 754,469 3 Earmarked gold3 9,451 9,099 9,045 9,045 9,045 9,045 9,040 9,031 9,004 9,004 8,977 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 Dec. Jan. Feb. Mar. Apr. May June? 1 Total1 975,303 987,567 1,078,219 1,083,965 1,107,987 1,116,171 1,114,979r l,165,946r 1,173,783 By tvpe 2 Liabilities reported by banks in the United States2 144,593 123,425 144,080 140,071 151,605 148,939 150,701 174,748 169,324 3 U.S. Treasury bills and certificates3 153,010 161,719 190,375 194,762 196,344 206,153 200,462 210,033 209,957 U.S. Treasury bonds and notes 4 Marketable 450,832 454,306 464,115 464,427 469,250 470,572 470,151r 484,900' 499,945 5 Nonmarketable4 5,348 3,411 2,769 2,786 2,803 2,821 2,839 2,857 2,876 6 U.S. securities other than U.S. Treasury securities5 221,520 244,706 276,880 281,919 287,985 287,686r 290,826r 293,408' 291,681 By area 7 Europe1 240,325 243,448 271,250 269,290 281.471 276,924 273,557' 288,567' 279,405 8 Canada 13,727 13,440 11,120 10,496 9.837 9,854 9,746 9,942 9,998 9 Latin America and Caribbean 70,442 71,103 63,022 61,794 62,998 62,743 62,909 65,355 71,041 10 Asia 626,016 635,179 704,126 715,996 725,120 740,595 740,298' 774,801 782,498 11 Africa 14,690 15,167 15,338 14,589 15,939 15,215 15,834 15,656 15,829 12 Other countries 10,101 9,228 13,361 11,798 12,620 10,838 12,633 11,623 15,010 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 Deposits 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 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 International Statistics • October 2003 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States' Payable in U.S. dollars Millions of dollars, end of period 2002 2003 IItteemm 22000000 22000011 22000022 Dec. Jan. Feb. Mar. Apr.r Mayr June? BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,511,410 1,636,538 1,832,746 1,832,746 1,782,342 1,946,084 2,008,047 2,175,908 2,197,504 2,201,093 2 Banks' own liabilities 1,077,636 1.181,097 1,288,991 1,288,991 1,239,613 1,390,175 1,452,838 1,609,681 1,608,620 1,595,977 By type of liability 3 Deposits2 221,248 191,742 175,220 175,220 169,503 788,923 807,496 827,841 811,968 853,067 4 Other 171,401 197,064 246,568 246,568 267,627 601,252 645,342 781,840 796,652 742,910 5 Of which: repurchase agreements3 0 151,143 190,134 190,134 208,959 306,017 338,528 378,842 390,974 362,515 6 Banks' custody liabilities4 433,774 455.441 543,755 543,755 542,729 555,909 555,209 566,227 588,884 605,116 By type of liability / U.S. Treasury bills and certificates5 177,846 186,115 229,827 229,827 231,872 234,547 245,814 242,568 252,008 251,477 8 Other negotiable and readily transferable instruments6 145,840 139,807 163,091 163,091 160,148 172,382 169,890 179,939 194,951 206,353 9 Of which: negotiable time certificates of deposit held in custody for foreigners 34,217 20,440 25,821 25,821 25,448 28,313 28,765 31,450 33,543 43,272 10 Of which: short-term agency securities7 0 59,781 72,731 72,731 67,427 75,249 73,925 76,960 85,226 82,348 11 Other 110,088 129,519 150,837 150,837 150,709 148,980 139,505 143,720 141,925 147,286 12 Nonmonetary international and regional organizations8 12,543 10,830 13,467 13,467 14,624 12,085 9,377 9,003 8,962 11,781 13 Banks' own liabilities 12,140 10,169 12,362 12,362 13,921 11,439 9,331 8,950 8,946 11,678 14 Deposits2 6,287 3,791 5,769 5,769 5,298 3,778 2,544 3,086 3,197 4,524 15 Other 5,853 6,378 6,593 6,593 8,623 7,661 6,787 5,864 5,749 7,154 16 Banks' custody liabilities4 403 661 1,105 1,105 703 646 46 53 16 103 17 U.S. Treasury bills and certificates5 252 600 1,089 1,089 687 621 4 33 3 13 18 Other negotiable and readily transferable instruments6 149 61 16 16 16 25 30 20 13 70 19 Other 2 0 0 0 0 0 12 0 0 20 20 Official institutions9 297,603 285,144 334,455 334,455 334,833 347,949 355,092 351,163 384,781 379,281 21 Banks' own liabilities 96,989 83,824 93,884 93,884 93,790 100,320 95,439 95,358 110,867 104,868 22 Deposits2 39,525 22,668 20,733 20,733 17,378 25,713 21,970 24,026 22,586 22,990 23 Other 57,464 61,156 73,151 73,151 76,412 74,607 73,469 71,332 88,281 81,878 24 Banks' custody liabilities4 200,614 201,320 240,571 240,571 241,043 247,629 259,653 255,805 273,914 274,413 25 U.S. Treasury bills and certificates5 153,010 161,719 190,375 190,375 194,762 196,344 206,153 200,462 210,033 220099,,995577 26 Other negotiable and readily transferable instruments6 47,366 38,531 50,132 50,132 45,285 50,763 52,615 55,189 63,217 59,376 27 Other 238 1,070 64 64 996 522 885 154 664 5,080 28 Banks10 972,932 1,053,084 1,176,534 1,176,534 1,116,543 1,141,699 1,173,159 1,320,589 1,312,795 1,327,431 29 Banks' own liabilities 821,306 914,492 981,645 981,645 921,792 947,736 990,887 1,129,091 1,119,409 1,123,995 30 Deposits2 82,426 68,656 56,020 56,020 53,156 650,798 674,514 690,503 677,682 712,780 31 Other 53,893 53,545 58,422 58,422 66,153 296,938 316,373 438,588 441,727 411,215 32 Banks' custody liabilities4 151,626 138,592 194,889 194,889 194,751 193,963 182,272 191,498 193,386 203,436 33 U.S. Treasury bills and certificates5 16,023 11,541 21,311 21,311 20,244 18,171 20,730 21,989 20,269 20,342 34 Other negotiable and readily transferable instruments6 36,036 24,059 46,770 46,770 48,614 52,390 48,295 51,753 57,564 65,799 35 Other 99,567 102,992 126,808 126,808 125,893 123,402 113,247 117,756 115,553 117,295 36 Other foreigners" 228,332 287,480 308,290 308,290 316,342 444,351 470,419 495,153 490,966 482,600 37 Banks' own liabilities 147,201 172,612 201,100 201,100 210,110 330,680 357,181 376,282 369,398 355,436 38 Deposits2 93,010 96,627 92,698 92,698 93,671 108,634 108,468 110,226 108,503 112,773 39 Other 54,191 75,985 108,402 108,402 116,439 222,046 248,713 266,056 260,895 242,663 40 Banks' custodial liabilities 81,131 114,868 107,190 107,190 106,232 113,671 113,238 118,871 121,568 127,164 41 U.S. Treasury bills and certificates5 8,561 12,255 17,052 17,052 16,179 19,411 18,927 20,084 21,703 21,165 42 Other negotiable and readily transferable instruments6 62,289 77,156 66,173 66,173 66,233 69,204 68,950 72,977 74,157 81,108 43 Other 10,281 25,457 23,965 23,965 23,820 25,056 25,361 25,810 25,708 24,891 MEMO 44 Own foreign offices12 684,987 792,291 867,203 867,203 802,483 911,640 948,708 1,106,252 1,093,122 1,090,608 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 States'—Continued Payable in U.S. dollars Millions of dollars, end of period 2002 2003 IItteemm 22000000 22000011 22000022 Dec. Jan. Feb. Mar. Apr. May Junep AREA OR COUNTRY 45 Total, all foreigners 1,511,410 1,636,538 1,832,746 1,832,746 1,782,342 1,946,084 2,008,047 2,175,908R 2,197,504R 2,201,093 46 Foreign countries 1,498,867 1,625,708 1,819,279 1,819,279 1,767,718 3,867,998 3,997,340 4,333,810R 4,377,084R 4,378,624 47 Europe 446,788 521,331 627,537 627,537 560,622 708,524 726,141 723,710' 762,312' 733,066 48 Austria 2,692 2,922 2,473 2,473 2,186 2,330 2,125 2,110 2,472 4,427 49 Belgium13 33,399 6,557 8,610 8,610 4,668 5,454 7,742 6,669r 4,100' 4,082 50 Denmark 3,000 3,626 4,880 4,880 6,497 6,603 6,751 5,088 7,091 5,040 51 Finland 1,411 1,446 1,693 1,693 2,583 1,861 845 1,007 2,291 2,159 52 France 37,833 49,056 39,636 39,636 36,731 39,680 39,885 41,281' 46,728' 44,871 53 Germany 35,519 22,375 34,394 34,394 31,977 39,690 43,681 42,498 44,155' 45,825 54 Greece 2,011 2,307 2,975 2,975 3,205 2,908 2,002 l,396r 1,633 2,096 55 Italy 5,072 6,354 4,826 4,826 4,421 4,812 4,982 6,431 5,938 6,766 56 Luxembourg13 0 16,894 28,623 28,623 30,538 36,001 32,926 36,774' 38,558' 37,615 57 Netherlands 7,047 12,411 10,705 10,705 10,550 16,258 13,708 15,207 16,066 15,522 Norway 2,305 3,727 18,867 18,867 17,723 10,936 14,163 13,866 15,479 14,985 59 Portugal 2,403 4,033 3,574 3,574 3,448 2,889 2,802 2,906 2,735 2,168 60 Russia 19,018 20,800 23,147 23,147 24,378 27,648 28,918 30,656 35,062 34,316 61 Spain 7,787 8,811 14,030 14,030 14,849 16,062 13,919 14,178r 15,851 11,973 6? Sweden 6,497 3,375 4,654 4,654 3,767 4,006 4,611 6,816 6,309 5,731 63 Switzerland 74,635 66,403 131,489 131,489 105,350 119,429 114,442 100,338' 113,531' 119,559 64 Turkey 7,548 7,474 12,130 12,130 12,754 11,973 10,996 11,214 12,253 12,540 65 United Kingdom 167,757 204,396 181,840 181,840 168,426 278,896 301,250 305,219r 310,571' 275,423 66 Channel Islands and Isle of Man'4 0 36,059 45,728 45,728 26,327 23,024 21,715 21,466r 23,478 21,732 67 Yugoslavia" 276 309 301 301 353 337 332 237 183 183 68 Other Europe and other former U.S.S.R.'6 30,578 41,996 52,962 52,962 49,891 57,727 58,346 58,353' 57,828' 66,053 69 Canada 30,982 27,251 24,955 24,955 27,880 28,618 31,992 29,209 31,867 36,031 70 Latin America 120,041 118,025 107,042 107,042 106,106 104,120 104,539 106,952' 105,765' 107,592 71 Argentina 19,451 10,704 11,218 11,218 11,253 10,574 10,663 9,968' 9,735 9,855 72 Brazil 10,852 14,169 10,037 10,037 10,586 10,991 12,153 11,247' 12,686' 16,248 73 Chile 5,892 4,939 6,064 6,064 5,591 5,807 5,713 5,062 5,534 4,725 74 Colombia 4,542 4,695 4,158 4,158 4,147 4,892 4,453 4,722' 4,649 4,617 75 Ecuador 2,112 2,390 2,299 2,299 2,397 2,239 2,369 2,249 2,289 2,217 76 Guatemala 1,601 1,882 1,381 1,381 1,436 1,474 1,400 1,531 1,493 1,547 77 Mexico 32,166 39,871 36,149 36,149 36,888 34,960 36,033 38,789' 35,105' 33,704 78 Panama 4,240 3,610 3,845 3,845 3,972 4,119 3,682 3,665 3,644' 4,181 79 Peru 1,427 1,359 1,363 1,363 1,364 1,361 1,332 1,376 1,612 1,512 80 Uruguay 3,003 3,172 2,806 2,806 2,681 2,468 2,760 2,898' 2,898' 3,144 81 Venezuela 24,730 24,974 21,883 21,883 19,951 19,594 18,208 19,107 20,115 19,751 82 Other Latin America17 10,025 6,260 5,839 5,839 5,840 5,641 5,773 6,338 6,005 6,091 83 Caribbean 573,337 194,814 194,158 194,158 206,063 210,915 223,153 211,581' 222,465' 228,691 84 Bahamas 189,298 178,472 163,052 163,052 169,978 165,813 175,721 161,227' 169,497' 174,161 85 Bermuda 9,636 10,539 23,780 23,780 27,421 38,133 40,552 43,422 45,774' 43,954 86 British West Indies'8 367,197 0 0 0 0 0 0 0 0 0 87 Cayman Islands18 0 440,038 512,570 512,570 516,117 524,354 551,635 738,236' 685,984' 700,603 88 Cuba 90 88 91 91 93 207 91 91 92 93 89 Jamaica 794 1,182 829 829 883 851 996 929 834 790 90 Netherlands Antilles 5,428 3,264 5,001 5,001 6,329 4,527 4,420 4,592 5,065 8,289 91 Trinidad and Tobago 894 1,269 1,405 1,405 1,359 1,384 1,373 1,320 1,203 1,404 92 Other Caribbean17 0 12,135 11,341 11,341 11,057 11,786 11,883 12,331 12,978' 15,783 93 305,554 294,496 318,048 318,048 318,865 319,760 326,773 318,821' 341,902' 336,716 China 94 Mainland 16,531 10,498 15,504 15,504 13,544 13,703 17,618 14,994 15,618 17,385 95 Taiwan 17,352 17,633 18,625 18,625 22,147 24,040 20,099 21,289' 23,072' 20,667 96 Hong Kong 26,462 26,494 33,032 33,032 36,777 35,787 32,964 34,480' 33,998' 35,137 97 India 4,530 3,708 7,951 7,951 8,074 8,836 8,672 9,279' 9,394 7,960 98 Indonesia 8,514 12,383 14,109 14,109 12,858 12,419 11,943 12,039 11,891 10,478 99 Israel 8,053 7,870 7,231 7,231 9,638 10,210 11,791 10,886 10,253 9,673 100 Japan 150,415 155,314 161,329 161,329 162,110 166,421 176,338 166,062' 179,917 175,132 101 Korea (South) 7,955 9,019 8,932 8,932 7,410 7,044 6,730 6,871' 7,933 8,992 102 Philippines 2,316 1,772 1,793 1,793 1,364 1,528 1,764 1,558' 1,867 1,568 103 Thailand 3,117 4,743 7,605 7,605 6,666 5,033 5,287 5,739 5,292 5,533 104 Middle Eastern oil-exporting countries'9 23,763 20,035 16,364 16,364 15,176 12,198 9,858 10,370 14,447 15,796 105 Other 36,546 25,027 25,573 25,573 23,101 22,541 23,709 25,254' 28,220' 28,395 106 Africa 10,824 11,365 12,240 12,240 11,177 14,390 12,980 13,591 13,170 13.052 107 Egypt 2,621 2,778 2,652 2,652 2,494 3,624 3,549 3,607 3,536 3,295 108 Morocco 139 274 306 306 259 346 283 210 281 234 109 South Africa 1,010 839 1,114 1,114 725 2,406 1,807 2,019 2,172 2,028 110 Congo (formerly Zaire) 4 4 2 2 3 5 3 4 4 6 111 Oil-exporting countries20 4,052 4,377 4,370 4,370 4,126 4,552 3,987 4,146 3,701 3,581 112 Other 2,998 3,093 3,796 3,796 3,570 3,457 3,351 3,605 3,476 3,908 IN Other countries 11,341 6,253 11,388 11,388 9,831 11,532 9,574 12,474 12,099 17,778 114 Australia 10,070 5,599 9,332 9,332 8,237 9,120 6,842 9,854 9,497 14,351 115 New Zealand2' 0 242 1,796 1,796 1,320 1,940 2,175 2,123 2,039 2,957 116 All other 1,271 412 260 260 274 472 557 497 563 470 117 Nonmonetary international and regional organizations 12,543 10,830 13,467 13,467 14,624 12,085 9,377 9,003 8,962 11,781 118 International22 11,270 9,331 11,282 11,282 12,859 10,217 7,955 7,919 7,782 10,726 119 Latin American regional23 740 480 507 507 372 547 686 296 339 373 120 Other regional24 533 935 1,611 1,611 1,299 1,216 633 614 693 621 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 DigitizeWde sfto Irn dFieRs. ASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 International Statistics • October 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 Dec. Jan. Feb. Mar. Apr. May' Junep 1 Total, all foreigners 904,642 1,055,069 1,088,165 1,088,165 1,083,390 1,135,101 1,214,784 1,332,028r 1,328,176 1,359,202 2 Foreign countries 899,956 1,050,123 1,084,488 1,084,488 1,080,231 2,263,492 2,421,508 2,654,804r 2,648,992 2,707,542 3 Europe 378,115 461,176 484,047 484,047 446,105 519,970 540,034 540,060' 570,445 588,448 4 Austria 2,926 4,981 3,603 3,603 4,334 4,142 4,538 4,875 4,165 4,339 5 Belgium2 5,399 6,391 6,044 6,044 6,273 6,285 7,652 8,120' 4,722 6,741 6 Denmark 3,272 1,105 1,109 1,109 1,563 428 748 648 495 1,737 7 Finland 7,382 10,350 8,518 8,518 9,832 9,191 9,462 11,893 8,130 9,191 8 France 40,035 60,620 47,705 47,705 45,914 48,395 46,458 54,726 52,852 55,435 9 Germany 36,834 29,902 22,481 22,481 23,395 22,525 22,259 19,908' 20,453 22,996 10 Greece 646 330 477 477 296 295 314 234 214 207 11 Italy 7,629 4,205 3,753 3,753 3,177 3,002 4,012 4,536' 4,133 6,251 12 Luxembourg2 0 1,267 3,407 3,407 3,901 4,360 3,149 4,472 6,433 6,211 13 Netherlands 17,043 15,908 23,133 23,133 19,188 16,008 21,135 18,128' 19,769 18,722 14 Norway 5,012 6,236 13,885 13,885 18,606 9,809 11,091 11,672 11,039 15,866 15 Portugal 1,382 1,603 2,226 2,226 2,356 2,342 1,929 2,260 2,457 2,406 16 Russia 517 594 877 877 1,025 729 1,107 699 755 815 17 Spain 2,603 3,260 5,371 5,371 4,154 3,251 2,477 2,916' 2,374 2,121 18 Sweden 9,226 12,544 15,889 15,889 15,329 15,458 16,310 16,860 16,184 15,587 19 Switzerland 82,085 87,333 126,958 126,958 87,562 101,202 106,935 81,560 98,528 103,374 20 Turkey 3,059 2,124 2,112 2,112 2,021 2,069 2,280 2,441 2,531 2,196 21 United Kingdom 144,938 201,183 173,996 173,996 167,820 236,653 236,393 247,496' 262,408 262,636 22 Channel Islands and Isle of Man3 0 4,478 17,457 17,457 24,393 27,767 34,994 38,641' 44,454 44,692 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 5,046 4,966 6,059 6,791 7,974' 8,349 6,925 25 Canada 39,837 54,421 60,521 60,521 65,085 65,982 57,321 58,995' 53,892 49,774 26 Latin America 76,561 69,762 56,642 56,642 54,482 55,413 55,945 54,741' 55,956 55,428 27 Argentina 11,519 10,763 6,783 6,783 6,663 6,615 6,149 6,077 5,920 6,005 28 Brazil 20,567 19,434 15,419 15,419 14,520 15,329 15,899 15,339' 16,390 16,548 29 Chile 5,815 5,317 5,250 5,250 5,077 5,220 5,228 5,342' 5,301 5,276 30 Colombia 4,370 3,602 2,614 2,614 2,406 2,711 2,650 2,587 2,480 2,422 31 Ecuador 635 495 457 457 439 428 460 476' 479 479 32 Guatemala 1,244 1,495 892 892 896 831 970 841 799 773 33 Mexico 17,415 16,522 15,658 15,658 15,268 14,993 14,791 14,629' 15,217 14,434 34 Panama 2,933 3,061 1,915 1,915 1,730 1,856 1,882 1,959 1,898 1,986 35 Peru 2,807 2,185 1,411 1,411 1,403 1,438 1,399 1,448' 1,493 1,541 36 Uruguay 673 447 255 255 255 300 324 322 313 335 37 Venezuela 3,518 3,077 3,254 3,254 3,202 3,171 3,293 3,188 3,119 3,201 38 Other Latin America6 5,065 3,364 2,734 2,734 2,623 2,521 2,900 2,533' 2,547 2,428 39 Caribbean 319,403 370,945 381,637 381,637 402,454 381,393 434,477 547,863' 521,714 541,396 40 Bahamas 114,090 101,034 95,584 95,584 97,456 86,312 92,186 86,031 91,506 96,660 41 Bermuda 9,260 7,900 9,902 9,902 12,511 17,031 23,339 21,351' 21,552 21,965 42 British West Indies7 189,289 0 0 0 0 0 0 0 0 0 43 Cayman Islands7 0 250,376 265,000 265,000 281,641 265,642 307,700 429,162' 396,956 410,076 44 Cuba 0 0 0 0 0 0 0 0 0 0 45 Jamaica 355 418 321 321 304 349 381 376 309 327 46 Netherlands Antilles 5,801 6,729 6,690 6,690 6,445 7,657 6,750 7,008 7,104 7,128 47 Trinidad and Tobago 608 931 889 889 865 966 881 848' 852 837 48 Other Caribbean6 0 3,557 3,251 3,251 3,232 3,436 3,240 3,087' 3,435 4,403 49 Asia 77,829 85,882 93,487 93,487 103,096 101,451 114,185 117,240' 115,304 109,509 China 50 Mainland 1,606 2,073 1,057 1,057 4,799 1,884 9,418 7,819 4,731 6,988 51 Taiwan 2,247 4,407 3,772 3,772 6,563 5,696 8,259 5,349 5,689 5,395 52 Hong Kong 6,669 9,995 7,258 7,258 6,490 5,652 4,987 4,788' 5,549 7,056 53 India 2,178 1,348 1,235 1,235 1,128 1,170 960 1,077' 1,187 1,375 54 Indonesia 1,914 1,752 1,270 1,270 1,223 1,059 1,023 997' 993 935 55 Israel 2,729 4,396 4,660 4,660 5,182 3,328 3,110 4,014 3,971 4,333 56 Japan 34,974 34.125 47,600 47,600 48,818 56,265 58,391 63,247' 62,399 62,048 57 Korea (South) 7,776 10,622 11,118 11,118 14,473 13,936 13,045 14,841' 13,237 7,058 58 Philippines 1,784 2.587 2,137 2,137 2,424 1,533 2,040 1,862 1,651 1,502 59 Thailand 1,381 2,499 1,167 1,167 830 696 1,382 1,263' 1,658 1,222 60 Middle Eastern oil-exporting countries8 9,346 7.882 7,952 7,952 8,004 6,405 7,110 6,871 7,271 6,019 61 Other 5,225 4.196 4.261 4,261 3,162 3,827 4,460 5,112' 6,968 5,578 62 2,094 2,095 1,977 1,977 1,945 1,992 2,051 1,850 1,777 1,743 63 Egypt 201 416 487 487 511 544 558 551 446 412 64 Morocco 204 106 53 53 53 45 49 42 41 43 65 South Africa 309 710 617 617 545 577 565 468 546 526 66 Congo (formerly Zaire) 0 0 0 0 0 0 0 0 0 0 67 Oil-exporting countries9 471 167 222 222 240 224 257 215 129 218 68 Other 909 696 598 598 596 602 622 574 558 544 69 Other countries 6,117 5,842 6,177 6,177 7,064 5,545 6,741 6,653' 5,408 7,473 70 Australia 5,868 5.455 5,566 5,566 6,212 5,023 5,940 5,892' 4,594 6,583 71 New Zealand10 0 349 569 569 833 507 705 640 668 794 72 All other 249 38 42 42 19 15 96 121 146 96 73 Nonmonetary international and regional organizations" . . 4,686 4.946 3,677 3,677 3,159 3,355 4,030 4,626 3,680 5,431 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 Dec. Jan. Feb. Mar. Apr. May' Junep 1 Total claims reported by banks 1,095,869 1,254,863 1,306,306 1,306,306 1,476,482 2 Banks' own claims on foreigners 904,642 1,055,069 1,088,165 1,088,165 1,083,390 1.135,101 1,214,784 1,332,028' 1,328,176 1,359,202 3 Foreign official institutions2 37,907 49,404 52,198 52,198 62,004 39,628 50,908 47,620' 48,816 44,242 4 Foreign banks3 725,380 849,491 873,077 873,077 854,787 832,440 869,909 987,276' 977,851 1,003,889 5 Other foreigners4 141,355 156,174 162,890 162,890 166,599 263,033 293,967 297,132' 301,509 311,071 6 Claims on banks' domestic customers5 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 90,412 131,780 131,780 58,025 10 Other claims 12,728 15,817 6,092 6,092 16,857 MEMO 11 Non-negotiable deposits7 354,995 372,679 497.268' 463,085 476,342 12 Negotiable CDs7 2,221 2,621 1,741 2,198 771 13 Other short-term negotiable instruments7 9.722 13,444 13,788 13,147 15,562 14 Other claims7 n.a. n.a. n.a. n.a. n.a. 768,163 826,040 819,231' 849,746 866,527 15 Own foreign offices8 630,137 749,124 795,060 795,060 768,492 807,290 848,417 956,935' 951,671 962,356 16 Loans collateralized by repurchase agreements9 137,979 161,585 161,585 185,804 245,798 287,043 311,728 319,597 310,598 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 • October 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." 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 i 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 7 U.S. dollars n.a. 25,246 18,763 n.a. 20,454 22,050 18,913 18,844 18,363 8 Foreign currency2 n.a. 22,173 22,271 n.a. 25,954 20,776 22,398 20,717 26,756 y 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 n 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 13 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 11,,994466 1,935 1,915 1,825 1,797 19 Switerzerland 147 104 94 94 8844 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.P 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 2,581 4,281 4,143 4,031 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 • October 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.p 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 4455,,119955 4455,,996644 4444,,332255 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 4455,,118888 45,959 4444,,006644 3322,,449999 Of which: 7 Loans' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12,674 Repurchase agreements' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5,669 By currency y 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 ii 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 13 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 iy 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 area1 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 2y 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 countries3 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.p 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 • October 2003 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2003 2002 2003 TTrraannssaaccttiioonn,, aanndd aarreeaa oorr ccoouunnttrryy 22000011 22000022 J J a u n n . e - Dec. Jan. Feb. Mar. Apr/ May1" Junep U.S. corporate securities STOCKS 1 Foreign purchases 3,051,332 3,203,259 1,473,299 216,726 216,731 201,408 236,668 233,275 273,263 311,954 2 Foreign sales 2,934,942 3,153,816 1,454,075 214,287 219,527 203,486 233,828 228,918 266,670 301,646 3 Net purchases, or sales (-) 116,390 49,443 19,224 2,439 -2,796 -2,078 2,840 4,357 6,593 10,308 4 Foreign countries 116,187 49,496 19,289 2,423 -2,773 -2,080 2,860 4,360 6,597 10,325 5 Europe 88,099 33,004 10,979 4,882 -2,186 1,900 1,360 250 1,526 8,129 6 France 5,914 2,127 405 676 206 270 1,816 -1,647 642 -882 7 Germany 8,415 -129 3,166 517 -63 -65 -780 -118 -260 4,452 8 Netherlands 10,919 4,535 1,035 792 366 -75 651 --11,,009900 262 921 9 Switzerland 3,456 2,655 -3,101 909 -724 -990 -22 9988 -901 -562 10 United Kingdom 38,493 15,173 443 784 -2,761 1,938 -258 777 -1,181 1,928 11 Channel Islands and Isle of Man1 -698 -255 -110 -22 -2 -17 -42 46 -30 -65 12 Canada 10,984 7,432 6,753 746 1,481 -1,594 2,376 2,540 -435 2,385 13 Latin America and Caribbean -5,154 -15.422 -2,288 -2,324 -3,104 -2,253 -1,538 1,230 4,575 -1,198 14 Middle East2 1,789 -1,293 -190 71 -72 -21 -51 -7 29 -68 15 Other Asia 20,726 22,672 5,848 -894 1,287 2,774 478 -73 612 770 16 Japan 6,788 12,337 -858 -1,131 561 1,008 -60 -1,093 -677 -597 17 Africa -366 -72 132 -20 38 -9 -29 68 -37 101 18 Other countries 109 3,175 -1,945 -38 -217 -2,877 264 352 327 206 19 Nonmonetary international and regional organizations 203 -53 -65 16 -23 2 -20 -3 -4 -17 BONDS3 20 Foreign purchases 1,942,690 2,549,132 1,783,325 207,380 228,232 207,404 307,241 306,305 381,844 352,299 21 Foreign sales 1,556,745 2,171,786 1,536,712 178,510 180,540 184,293 263,003 264,370 322,432 322,074 22 Net purchases, or sales (-) 385,945 377,346 246,613 28,870 47,692 23,111 44,238 41,935 59,412 30,225 23 Foreign countries 385,379 377,083 247,312 28,684 47,836 23,276 44,307 41,525 59,648 30,720 24 Europe 195,412 167,140 116,905 10,526 27,938 16,528 20,639 25,295 21,433 5,072 25 France 5,028 3,771 1,448 -434 1,092 63 142 116 112 -77 26 Germany 12,362 5,149 808 1,249 545 999 -180 -68 143 -631 27 Netherlands 1,538 -406 504 -19 118 611 -2 -614 317 74 28 Switzerland 5,721 8,521 5,022 304 1,154 859 1,034 1,263 366 346 29 United Kingdom 152,772 109,836 73,460 6,768 15,960 6,826 14,772 16,951 13,911 5,040 30 Channel Islands and Isle of Man1 2,000 11,173 17,511 959 5,420 1,533 4,138 3,091 3,320 9 31 Canada 4,595 -1,037 768 -2,180 -892 193 1,169 -894 1,428 -236 32 Latin America and Caribbean 77,019 82.837 50,792 7,379 6,564 -6,379 10,217 1,978 25,808 12,604 33 Middle East2 2,337 2,315 592 -120 591 42 37 31 -279 170 34 Other Asia 106,400 121,470 76,328 12,944 13,593 12,767 11,038 15,586 11,030 12,314 35 Japan 33,687 48,482 27,178 4,863 4,025 4,566 1,456 8,549 3,870 4,712 36 Africa 760 860 1,410 28 53 80 779 147 110 241 37 Other countries -1,144 3,498 517 107 -11 45 428 -618 118 555 38 Nonmonetary international and regional organizations 566 263 -699 186 -144 -165 -69 410 -236 -495 Foreign securities 39 Stocks, net purchases, or sales (-) -50,113 -1.629 -30,730 -2,751 -6,893 —4,474 -5,363r 2,073 -10,800 -5,273 40 Foreign purchases 1,397,664 1,260,278 586,143 81,804 94,622 83,683 91,096r 100,054 99,777 116,911 41 Foreign sales 1,447,777 1,261,907 616,873 84,555 101,515 88,157 96,459' 97,981 110,577 122,184 42 Bonds, net purchases, or sales (-) 30,502 28,406 33,264 -5,157 -1,915 4,493 7,315 -2,416 14,049 11,738 43 Foreign purchases 1,160,102 1,377,020 1,006,199 117,917 140,513 122,893 166,837 135,970 230,256 209,730 44 Foreign sales 1,129,600 1,348,614 972,935 123,074 142,428 118,400 159,522 138,386 216,207 197,992 45 Net purchases, or sales (-), of stocks and bonds -19,611 26,777 2,534 -7,908 -8,808 19 l,952r -343 3,249 6,465 46 Foreign countries -19,024 26,814 2,522 -7,922 -8,829 -77 l,971r -256 3,270 6,443 47 Europe -12,108 15,407 9,144 -9,095 -5,090 -1,592 6,270r 4,409 1,593 3,554 48 Canada 2,943 4,849 6,347 712 3,890 603 -302 -600 2,106 650 49 Latin America and Caribbean 4,315 4,562 -12,128 1,045 -7,886 862 -3,381 -7,450 1,289 4,438 50 Asia -11,869 1.591 297 -987 -261 194 -971 3,456 -649 -1,472 51 Japan -20,116 -9,119 -1,412 -2,039 -1,233 -1,447 1,557 2,218 1,509 -4,016 52 Africa -558 -379 69 40 -55 -34 27 -11 5 137 53 Other countries -1,747 784 -1,207 363 573 -110 328 -60 -1,074 -864 54 Nonmonetary international and regional organizations -587 -37 12 14 21 96 -19 -87 -21 22 1. Before January 2001, data included in United Kingdom. 3. Includes state and local government securities and securities of U.S. government 2. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. Saudi Arabia, and United Arab Emirates (Trucial States). corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Holdings and Transactions A55 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions' Millions of dollars; net purchases, or sales (-) during period 2003 2002 2003 Area or country 2001 2002 JJ JJ aa uu nn nn .. ee -- Dec. Jan. Feb. Mar. Apr. May' Junep 1 Total estimated 18,514 120,537 121,797 13,638 2,819 -2,421 26,390 9,792R 41,109 44,108 2 Foreign countries 19,200 118,526 121,542 13,309 2,436 -2,177 26,441 9,844' 40,793 44,205 3 Europe -20,604 43,008 31,950 2,534 1,958 -5,238 649 7,739' 6,132 20,710 4 Belgium2 -598 2,046 -517 -193 3,371 -1,379 -2,722 218 77 -82 5 Germany -1,668 -3,910 3,761 1,610 -1,183 -257 -270 1,148' 3,449 874 6 Luxembourg2 462 -1,609 674 -201 75 358 83 33 -2 127 7 Netherlands -6,728 -17,020 5,534 3,261 ^1,085 1,360 959 4,425 2,216 659 8 Sweden -1,190 2,923 1,984 902 422 190 522 -240 482 608 9 Switzerland 1,412 -508 1,596 -2,543 -86 -1,050 1,067 -784 749 1,700 10 United Kingdom -7,279 60,995 10,144 -2,739 1,313 -2,912 3,256 571' -523 8,439 11 Channel Islands and Isle of Man3 -179 714 1,698 -84 -11 9 37 140 550 973 12 Other Europe and former U.S.S.R ^1,836 -623 7,076 2,521 2,142 -1,557 -2,283 2,228' -866 7,412 13 Canada -1,634 -5,198 2,818 1,028 -698 -1,871 1,782 820 -1,317 4,102 14 Latin America and Caribbean 4,272 21,116 15,578 6,074 -1,891 3,384 11,179 -6,109' 10,705 -1,690 15 Venezuela 290 -59 199 -73 20 97 23 13 37 9 16 Other Latin America and Caribbean 14,726 21,955 17,193 1,652 2,676 2,323 8,550 -4,809' 7,234 1,219 17 Netherlands Antilles -10,744 -780 -1,814 4,495 —4,587 964 2,606 -1,313 3,434 -2,918 18 Asia 36,332 55,850 68,270 3,626 2,630 2,287 12,246 7,178' 25,236 18,693 19 Japan 16,114 30,730 50,198 2,731 3,512 5,580 -1,221 5,532' 25,097 11,698 20 Africa -880 841 179 90 84 -43 -16 127 -59 86 21 Other 1,714 2,909 2,747 -43 353 -696 601 89 96 2,304 22 Nonmonetary international and regional organizations -686 2,011 255 329 383 -244 -51 -52 316 -97 23 International -290 1,642 574 164 170 -130 -109 85 381 177 24 Latin American Caribbean regional 41 -3 -127 0 -15 -38 -28 -37 -6 -3 MEMO 25 Foreign countries 19,200 118,526 121,542 13,309 2,436 -2,177 26,441 9,844' 40,793 44,205 26 Official institutions 3,474 9,809 35,830 5,523 312 4,823 1,322 -421' 14,749 15,045 27 Other foreign 15,726 108,717 85,712 7,786 2,124 -7,000 25,119 10,265' 26,044 29,160 Oil-exporting countries 28 Middle East 865 -3,918 -7,350 -3,815 509 ^1,252 128 -2,772' -1,018 55 29 Africa5 -2 29 1 55 0 0 0 0 0 1 1. Official and private transactions in marketable U.S. Treasury securities having an 3. Before January 2001, these data were included in the data reported for the United original maturity of more than one year. Data are based on monthly transactions reports. Kingdom. Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab countries. Emirates (Trucial States). 2. Before January 2001, combined data reported for Belgium and Luxembourg. 5. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • October 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 Mar. Apr. May June July Aug. Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 58.15 51.69 54.37 60.15 61.00 64.68 66.52 66.07 65.18 2 Brazil/real 1.8301 2.3527 2.9213 3.4567 3.1090 2.9517 2.8887 2.8833 3.0053 3 Canada/dollar 1.4855 1.5487 1.5704 1.4761 1.4582 1.3840 1.3525 1.3821 1.3963 4 China, P.R./yuan 8.2784 8.2770 8.2770 8.2773 8.2772 8.2769 8.2771 8.2773 8.2770 5 Denmark/krone 8.0953 8.3323 7.8862 6.8807 6.8381 6.4268 6.3620 6.5425 6.6653 6 European Monetary Union/euro3 0.9232 0.8952 0.9454 1.0797 1.0862 1.1556 1.1674 1.1365 1.1155 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 7.7991 7.7996 7.7991 7.7988 7.7990 7.7990 9 India/rupee 45.00 47.22 48.63 47.68 47.39 47.11 46.70 46.22 45.96 10 Japan/yen 107.80 121.57 125.22 118.69 119.90 117.37 118.33 118.70 118.66 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 10.905 10.589 10.253 10.503 10.458 10.783 13 New Zealand/dollar2 45.68 42.02 46.45 55.37 55.18 57.56 58.15 58.64 58.29 14 Norway/krone 8.8131 8.9964 7.9839 7.2760 7.2032 6.8145 7.0093 7.2924 7.4096 15 Singapore/dollar 1.7250 1.7930 1.7908 1.7551 1.7771 1.7357 1.7351 1.7551 1.7533 16 South Africa/rand 6.9468 8.6093 10.5176 8.0506 7.6634 7.6604 7.8588 7.5458 7.3945 17 South Korea/won 1,130.90 1,292.01 1,250.31 1,237.20 1,231.10 1,201.23 1,194.14 1,181.16 1,178.60 18 Sri Lanka/rupee 76.964 89.602 95.773 96.943 97.004 97.231 97.236 97.153 96.975 19 Sweden/krona 9.1735 10.3425 9.7233 8.5440 8.4314 7.9213 7.8116 8.0929 8.2821 20 Switzerland/franc 1.6904 1.6891 1.5567 1.3614 1.3783 1.3111 1.3196 1.3611 1.3811 21 Taiwan/dollar 31.260 33.824 34.536 34.721 34.824 34.697 34.633 34.396 34.318 21 Thailand/baht 40.210 44.532 43.019 42.783 42.929 42.217 41.675 41.808 41.656 23 United Kingdom/pound2 151.56 143.96 150.25 158.25 157.39 162.24 166.09 162.21 159.39 24 Venezuela/bolivar 680.52 724.10 1,161.19 1,600.00 1,600.00 1,600.00 1,600.00 1,600.00 1,600.00 Indexes4 NOMINAL 25 Broad (January 1997-100)5 119.68 126.08 127.19 123.56 122.54 118.54 117.93 119.11 120.43 26 Major currencies (March 1973=100)6 98.31 104.28 102.85 94.28 93.98 89.67 88.68 90.42 91.48 27 Other important trading partners (January 1997—100)7 130.34 136.36 141.42 147.26 145.15 142.75 143.07 142.84 144.32 REAL 28 Broad (March 1973-100)5 104.47 110.50 110.88 107.71 106.62 103.12 102.80 104.01' 105.25 29 Major currencies (March 1973=100)6 103.29 110.73 109.36 100.84 100.35 95.53 94.57 96.65 97.81 30 Other important trading partners (March 1973=100)7 114.81 119.47 122.29 126.42 124.31 122.56 123.22 123.17' 124.61 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 repotted 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 A58 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

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

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

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

A61 MARK W. OLSON DONALD L. KOHN BEN S. BERNANKE DIVISION OF CONSUMER DIVISION OF RESERVE BANK OPERATIONS AND COMMUNITY AFFAIRS AND PAYMENT SYSTEMS DOLORES S. SMITH, Director LOUISE L. ROSEMAN, Director GLENN E. LONEY, Deputy Director PAUL W. BETTGE, Associate Director SANDRA F. BRAUNSTEIN, 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 STEPHEN R. MALPHRUS, Staff Director JACK K. WALTON II, Assistant Director SHEILA CLARK, EEO Programs Director LYNN S. FOX, Senior Adviser OFFICE OF THE INSPECTOR GENERAL 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

98 Federal Reserve Bulletin • October 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

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

100 Federal Reserve Bulletin • October 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

A65 STAFF STUDIES: Only Summaries Printed in the 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING BULLETIN Studies and papers on economic and financial subjects that are of PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, by Stephen A. Rhoades. July 1994. 37 pp. general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out of print, but photocopies of them are available. Staff 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- Studies 165-174 are available on line at www.federalreserve.gov/ LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. pubs/staff studies. Requests to obtain single copies of any paper or Lowrey. December 1997. 17 pp. to be added to the mailing list for the series may be sent to 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

102 Federal Reserve Bulletin • October 2003 Maps of the Federal Reserve System ALASKA HAWAII LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts by num- of Puerto Rico and the U.S. Virgin Islands; the San Franber and Reserve Bank city (shown on both pages) and by cisco Bank serves American Samoa, Guam, and the Comletter (shown on the facing page). monwealth of the Northern Mariana Islands. The Board of In the 12th District, the Seattle Branch serves Alaska, Governors revised the branch boundaries of the System and the San Francisco Bank serves Hawaii. most recently in February 1996. The System serves commonwealths and territories as follows: the New York Bank serves the Commonwealth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A67 1-A 2-B 3-C 4-D 5-E Pittsburgh NY ^ / cmnati / MA Buffalo "f e V i RI NJ v NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H •Nashville KY / • ^ Louisville MO \\ L J X- — IN •Memphis New Orleans Little / Rock MMSS ATLANTA CHICAGO ST. Louis 9-1 •• HHeelleennaa •flHH^VHHbtar' ^ •SU • I n?• WL MINNEAPOLIS 10-J 12-L WY flRftMMfaH CO Omaha® • -1 MO • Denver NM- ' ^ Oklahoma t'it\ OK KANSAS CITY 11-K TX NM Cit\ • 7 • I r—\ j' x 1:1 Paso r1^ ' 1 HOUMOII • V San Antonio DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 Federal Reserve Bulletin • October 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. Conneclicut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee, Wisconsin 53202; and Peoria, Illinois 61607. 1. Senior Vice President. 2. Executive Vice President 3. Acting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory func- The Payment System Handbook deals with expedited tions, the Board publishes the Federal Reserve Regu- funds availability, check collection, wire transfers, and latory Service, a four-volume loose-leaf service con- risk-reduction policy. It includes Regulations CC, J, and taining all Board regulations as well as related statutes, EE, related statutes and commentaries, and policy interpretations, policy statements, rulings, and staff statements on risk reduction in the payment system. opinions. For those with a more specialized interest in For domestic subscribers, the annual rate is $200 for the Board's regulations, parts of this service are pub- the Federal Reserve Regulatory Service and $75 for lished separately as handbooks pertaining to monetary each handbook. For subscribers outside the United policy, securities credit, consumer affairs, and the pay- States, the price including additional air mail costs is ment system. $250 for the service and $90 for each handbook. These publications are designed to help those who The Federal Reserve Regulatory Service is also availmust frequently refer to the Board's regulatory materi- able on CD-ROM for use on personal computers. For a als. They are updated monthly, and each contains cita- standalone PC, the annual subscription fee is $300. For tion indexes and a subject index. network subscriptions, the annual fee is $300 for 1 con- The Monetary Policy and Reserve Requirements current user, $750 for a maximum of 10 concurrent Handbook contains Regulations A, D, and Q, plus users, $2,000 for a maximum of 50 concurrent users, related materials. and $3,000 for a maximum of 100 concurrent users. The Securities Credit Transactions Handbook con- Subscribers outside the United States should add $50 tains Regulations T, U, and X, dealing with exten- to cover additional airmail costs. For further informasions of credit for the purchase of securities, together tion, call (202) 452-3244. with related statutes, Board interpretations, rulings, All subscription requests must be accompanied by a and staff opinions. Also included is the Board's list of check or money order payable to the Board of Goverforeign margin stocks. nors of the Federal Reserve System. Orders should be The Consumer and Community Affairs Handbook addressed to Publications, mail stop 127, Board of Govcontains Regulations B, C, E, G, M, P, Z, AA, BB, and ernors of the Federal Reserve System, Washington, DC DD, and associated materials. 20551. GUIDE TO THE FLOW OF FUNDS ACCOUNTS A new edition of Guide to the Flow of Funds Accounts and describes how the series is derived from source is now available from the Board of Governors. The new data. The Guide also explains the relationship between edition incorporates changes to the accounts since the the flow of funds accounts and the national income and initial edition was published in 1993. Like the earlier product accounts and discusses the analytical uses of publication, it explains the principles underlying the flow of funds data. The publication can be purchased, flow of funds accounts and describes how the accounts for $20.00, from Publications, Mail Stop 127, Board are constructed. It lists each flow series in the Board's of Governors of the Federal Reserve System, Washingflow of funds publication, "Flow of Funds Accounts of ton, DC 20551. the United States" (the Z.l quarterly statistical release), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 Federal Reserve Bulletin • October 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