Federal Reserve Bulletin, 2003-11

Volume 89 • Number 11 • November 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 451 GLOBAL INTEGRATION IN THE BANKING 461 ANNOUNCEMENTS INDUSTRY Release of annual adjustments for reserve calcu- Lowered regulatory barriers and advances in lations and deposit reporting technology have reduced the cost of supplying Comments requested on proposed changes to banking services across borders. At the same cash services policy time, growth in activity by multinational corporations has increased the demand for inter- Appointment of chairmen and deputy chairmen national financial services. As a result, many of the Federal Reserve Banks observers believe that global integration is under Appointment of Timothy F. Geithner as presiway in the banking industry, that banks are dent, Federal Reserve Bank of New York expanding their reach across borders, and that many banking markets will therefore develop Debut of a more secure, colorful $20 bill large foreign components. The authors report on a study conducted by them, along with Qinglei D.C. debut of newly redesigned $20 bill at Dai and Steven Ongena, that examined the L'Enfant Plaza post office nationality and international reach of banks that Federal agencies publish consumer brochure on provide short-term financial services across predatory lending Europe to affiliates of multinational corporations. The present article also looks at time- Move of Federal Reserve Bulletin to a quarterly series data that provide a more recent look at the schedule progress of integration in Europe. Release of minutes of discount rate meetings Based on a 1996 survey of more than 2,000 affiliates, the study found that an affiliate is most Meeting of the Consumer Advisory Council likely to choose a bank headquartered in the Enforcement actions nation in which it is operating (a host-nation bank) rather than a bank headquartered in the home country of the affiliate or in a third nation. 468 LEGAL DEVELOPMENTS The affiliate is also more likely to select a bank Various bank holding company, bank service limited to local or regional operations rather corporation, and bank merger orders; and pendthan one with global reach. The findings are ing cases. consistent with the proposition that affiliates most value a bank that understands the culture, AI FINANCIAL AND BUSINESS STATISTICS business practices, and regulatory conditions of the country in which the affiliate operates, and These tables reflect data available as of that host-nation banks possess a competitive September 29, 2003. advantage over other banks in this regard. The time-series data—on syndicated loans, foreign A3 GUIDE TO TABLES bank claims, and the dispersion of consumer goods prices across Europe—are also consistent A4 Domestic Financial Statistics with the picture drawn from the 1996 survey. A42 Domestic Nonfinancial Statistics The article concludes that banking markets evi- A44 International Statistics dently need not become more integrated even as economic activity otherwise becomes increas- A57 GUIDE TO SPECIAL TABLES AND ingly global. STATISTICAL RELEASES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 SPECIAL TABLES A76 FEDERAL RESERVE BOARD PUBLICATIONS A70 INDEX TO STATISTICAL TABLES A78 MAPS OF THE FEDERAL RESERVE SYSTEM MI BOARD OF GOVERNORS AND STAFF A80 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES A74 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Global Integration in the Banking Industry Allen N. Berger, of the Board's Division of Research To evaluate more closely the extent to which bankand Statistics, and David C. Smith, of the Board's ing is becoming globally integrated, we study the Division of International Finance, prepared this nationality and international reach of banks that proarticle. Jennifer Judge provided research assistance. vide financial services across Europe to affiliates of multinational corporations. We examine these affili- Many observers believe that significant global inte- ates because they are among the customers most gration is under way in the banking industry and that, likely to demand the services of international banks, in the coming years, individual banks will expand and we focus on Europe because barriers to financial their reach into many countries. Likewise, these integration have been extensively reduced on that observers expect that many national banking markets continent. A finding that banking integration has will develop large foreign components; as that hap- advanced little even under such favorable conditions pens, the nationality of a bank in such a market will would cast doubt on the prospects for the globalizamatter little to prospective customers.1 tion of banking more generally. These forecasts are based on the observation that, We rely mostly on an extensive, carefully conover the past two or three decades, many nations ducted 1996 survey of the short-term banking prachave removed important regulatory barriers to inter- tices of more than 2,000 European affiliates of multinational banking. Advances in technology also now national corporations. Perhaps surprisingly, we find allow financial institutions to manage larger informa- that close to two-thirds of these affiliates choose a tion flows across more locations and to evaluate bank headquartered in the nation in which they are and manage risks at lower costs than ever before. operating (a host-nation bank) rather than a bank Together, these developments have reduced the costs from their home country or a third nation. Moreover, of supplying banking services across borders. At the having chosen a host-nation bank, an affiliate is more same time, growth in the international activities and likely to select a bank limited to local or regional trade of multinational corporations has increased the operations rather than a large bank with global reach. demand for services from financial institutions that We also examine time-series data that might reveal operate across borders. the degree to which global integration has increased Despite these developments, the banking industry over the past decade. These data cover European appears today to be far from globally integrated, syndicated loans, the ratio of domestic private bank particularly in industrialized countries. For example, claims to total (domestic plus foreign) bank claims, the foreign share of bank assets in most industrialized and the dispersion of nonfinancial goods prices across countries remains at or below 10 percent. And Europe. In brief, the time-series data show a picture although bank consolidation has been intense within for the current period that is not substantially differindustrialized countries, mergers and acquisitions ent from that at the time of the 1996 survey. across the borders of these countries have been much These results are consistent with the idea that affililess common.2 ates value host-nation banks over others because host-nation banks better understand their own market NOTE. Much of the analysis in this article is based on Allen N. and may possess superior information about local Berger, Qinglei Dai, Steven Ongena, and David C. Smith, "To What Extent Will the Banking Industry Be Globalized? A Study of Bank nonfinancial suppliers and customers. Our results also Nationality and Reach in 20 European Nations," Journal of Banking imply that affiliates that have chosen host-nation and Finance, vol. 27 (March 2003), pp. 383-415. The authors of banks value the more customized and relationshipthe present article thank David Birks for making available the based services offered by banks with local or regional "GlobalCash-Europe96" data and Gregory P. Nini for writing the program that examines syndicated loans. reach, as opposed to the broad-based services offered 1. For example, Paul R. Krugman and Maurice Obstfeld, in their by a host-nation bank that has global reach. International Economics: Theory and Policy, 5th ed. (Reading, Mass.: Addison-Wesley, 2000), state that "one of the most pervasive features of the commercial banking industry of the 1990s is that banking Domestic Banking Market?" Journal of Banking and Finance, vol. 25 activities have become globalized" (p. 649). (May 2001), table 1, p. 896. For mergers and acquisitions across 2. For the 10 percent figure, see Stijn Claessens, Asli Demirgii?- borders, see Group of Ten, Report on Consolidation in the Financial Kunt, and Harry Huizinga, "How Does Foreign Entry Affect the Sector (Basel, Switzerland: Bank for International Settlements, 2001). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 Federal Reserve Bulletin • November 2003 Our findings suggest that even as economic forces market. As the lowest-cost producers of banking serpush toward globalization, the high demand for host- vices expand across many borders, they drive prices based expertise by bank customers, coupled with the closer to marginal costs. competitive advantages that host-nation banks have Europe has other characteristics that support finanin providing this expertise, implies that many bank- cial integration. The proximity of most of its couning services could very well remain local. In other tries to each other should keep cross-border transacwords, banking markets need not become much more tion costs low. In addition, the countries of western integrated as the globalization of other economic Europe are technologically advanced. As of the early sectors continues. 1990s, they were producing more science and engineering Ph.D.s than either the United States or Asia and were spending as much as the United States on Focus ON EUROPE nondefense-related research and development.6 Even within Europe, however, the evidence sug- Europe is an ideal setting for studying international gests that the integration of banking is advancing integration because its countries have taken a number little, if at all. With the exception of the recent of steps to reduce regulatory barriers to cross-border consolidation across the Nordic countries, bank banking. These steps are known collectively as the merger and acquisition activity has been minimal "single market" program.3 Under this program, the across European borders.7 European Commission and the European Union (EU) Remaining informal barriers in Europe could help Council of Ministers established directives intended explain this slow pace. One potential barrier is brand to guarantee equal regulatory treatment of foreign loyalty to local services. Observers often cite relucbanks by national authorities, unfettered provision of tance by bankers in Europe to compete in foreign financial services across borders, home-country con- countries in which they believe that loyalty to local trol of bank supervision, and home-country imple- products is strong. So, for example, Swiss banks do mentation of bank solvency requirements.4 The EU little business in Germany, and German banks do Council also passed regulations to liberalize cross- little business in Switzerland. Yet German and Swiss border capital flows and harmonize regulations across banks both have a strong presence in the United member countries that cover capital adequacy, credit States, where loyalty to local brands is viewed as exposure, and banks' participation in nonfinancial less of an issue. National government policies could activities. Most of these directives had been imple- also inhibit cross-border competition. For instance, mented by the mid-1990s. In 1999, eleven members despite an explicit commitment to a level playing of the EU also entered into the European Monetary field, European governments often promote the Union (EMU) and began to trade in a single currency, expansion of their own nations' banks through tax the euro.5 breaks, subsidies, guarantees, and direct ownership.8 The EU Council has as one of its goals the creation We argue that such barriers are not the only explaof a single, integrated banking market. An assump- nation for the observed lack of integration in Europe. tion behind such a goal is that cross-border competi- The slow pace of integration could result in large part tion fosters efficient, low-cost banking by allowing from competitive advantages enjoyed by host-nation more efficient banks to move across borders and banks. compete with less-efficient banks formerly protected by their nation's borders. Competition forces the inefficient banks to either improve or to leave the 6. National Science Foundation, Human Resources for Science & Technology: The European Region, NSF 96-316 (Arlington, Va.: 3. Jean Dermine, "Banking in Europe: Past, Present, and Future," NSF, 1996). Organisation for Economic Co-operation and Developin Vitor Gaspar, Philipp Hartmann, and Olaf Sleijpen, eds., The ment, OECD Science and Technology Indicators (Paris: OECD, 1995). Transformation of the European Financial System, Second ECB Cen- 7. The Nordic countries are Denmark, Finland, Iceland, Norway, tral Banking Conference (Frankfurt: European Central Bank, 2003) and Sweden. See Claudia M. Buch and Gayle L. Delong, "Crosspp. 31-116. Border Bank Mergers: What Lures the Rare Animal?" Journal of 4. Currently, the fifteen members of the European Union (Austria, Banking and Finance (forthcoming); Patrick Beitel and Dirk Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Schiereck, "Value Creation at the Ongoing Consolidation of the Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the European Banking Market," Institute for Mergers and Acquisitions, United Kingdom) and the three additional nations of the European working paper; and Steven Ongena, Jason Karceski, and David C. Economic Area (Iceland, Liechtenstein, and Norway) have agreed to Smith, "The Impact of Bank Consolidation on Commercial Borrower abide by the bank-related directives. Welfare," International Finance Discussion Papers 679 (Board of 5. The original EMU members are Austria, Belgium, Finland, Governors of the Federal Reserve System, 2000). France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portu- 8. Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei gal, and Spain. On January 1, 2001, Greece became the twelfth Shleifer, "Government Ownership of Banks," Journal of Finance, country to adopt the euro. vol. 57 (February 2002), pp. 265-301. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Global Integration in the Banking Industry 453 NATIONALITY AND REACH OF BANKS bank (for example, Citibank), or a global third-nation bank (for example, the Dutch bank ABN AMRO). In a frictionless banking market with no barriers to A different set of affiliates may prefer the advantages integration, commercial customers will select the of a smaller bank that offers services in only a local bank that provides the price, quality, and mix of area because such a bank is more likely to establish a services that will best facilitate their business opera- close relationship with the affiliate and provide custions. Two potentially important criteria for a foreign tomized services. Such an affiliate that operates in affiliate's choice are the bank's nationality and reach. Germany might select a German bank that has a local Bank nationality refers to the country in which the character and operates only in Germany or maybe bank is headquartered. Some affiliates might value even in only one part of the country. Still other banking services that require a detailed knowledge affiliates may prefer a bank that blends international of the country in which the affiliate operates. Banks reach with local, personalized services. Such a bank's headquartered in the nation that hosts the affiliate will reach may be limited to a specific region or set of likely have an advantage in offering these services, countries. So, a U.S. affiliate operating in Germany which we term "host-based" expertise. So, for exam- that prefers a blend of the far-reaching services of a ple, an affiliate of a U.S. corporation operating in global bank and the more personalized character of a Germany might choose a German bank because such local bank might choose an institution that confines a bank will best understand the culture, business itself to operating mainly on the European continent practices, and regulatory conditions in Germany. The (for example, the Nordic-based banking concern bank may even have unique access to information Nordea). about German nonfinancial suppliers and customers. In the absence of barriers, the extent of integration Other affiliates might value a bank that offers in the banking industry will depend on how custom- "home-based" expertise—that is, an understanding ers value different banking services and the extent of the home market of the affiliate's parent—because to which banks of a given nationality and reach can it is important to the affiliate to rely on a bank provide those services. Importantly, if customers familiar with its home territory.9 Perhaps the bank place a high value on global services and have little already serves the parent corporation in the home value for host-based or home-based expertise, then country. Banks headquartered in the affiliate's home we might expect to see an integrated banking induscountry should have an advantage in offering home- try, perhaps with a few global banks dominating based expertise. A U.S. affiliate operating in Ger- markets around the world. Conversely, if customers many that values home-based expertise might then value host-based expertise and place less value on prefer a U.S. bank because of its advantage in offer- global services, then we should observe limited banking such services. ing industry integration. Thus, depending on the ser- Banks from third countries (that is, from neither vices valued by bank customers, we could have a the host nor the home country) may not have host- world with extensive integration or one with little based or home-based expertise, but they might com- integration. petitively offer services in other dimensions valued In the next section, we use the concepts of bank by an affiliate. For instance, a U.S. corporate affiliate nationality and reach to examine our primary data in Germany may value, say, a Dutch bank for a set. specialized service not offered by host- or homenation banks. Bank reach refers to the size and geographic scope THE 1996 SURVEY of the bank. Some affiliates may value a large, global bank that can offer a broad range of financial ser- Our main source for connecting foreign affiliates of vices, expertise within many foreign markets, supe- multinational corporations with their banks is rior risk diversification, and the ability to facilitate "GlobalCash-Europe96," a survey of the short-term large deals. For the affiliate operating in Germany, banking services provided to large, nonbank corpothis choice need not depend on bank nationality rations.10 The survey was conducted in 1996 across because the affiliate could choose a global German twenty European nations by The Bank Relationship bank (for example, Deutsche Bank), a global U.S. Consultancy and the School of Management at the 9. Berger, Dai, Ongena, and Smith, "To What Extent Will the 10. The objective of the survey is to gather information on the cash Banking Industry Be Globalized?" refer to host-based expertise as management practices of corporations. However, the European "concierge" services and home-based expertise as "home cookin'" usage of "cash management" covers virtually all short-term banking services. services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 Federal Reserve Bulletin • November 2003 1. Banks in the 1996 sample that are defined as having global reach Assets worldwide Rank in American Banker, Number of surveyed (billions of dollars, by year-end 1995 countries in which the Headquarters ir-end 1995) worldwide assets bank operates Deutsche 502.3 lit:.-": Germany ABN AMRO 339.4 Netherlands i i ii Credit Lyonnais 337.6 France Societe Generate 324.8 | •. France Banque Nationale de Paris 323.5 France Citibank 255.3 United States Bank of America 230.2 5 United States Manhattan Bank .. 120.5 United States NOTE. Banks with global reach are defined as those that operate in at least SOURCE. Allen N. Berger, Qinglei Dai, Steven Ongena, and David C. Smith, nine of twenty European nations and had at least $100 billion in worldwide "To What Extent Will the Banking Industry Be Globalized? A Study of Bank assets as of year-end 1995. Nationality and Reach in 20 European Nations," Journal of Banking and Finance, vol. 27 (March 2003), table 1, p. 391. University of Bath, in the United Kingdom.11 Short- nation, or third-nation banks. A host-nation bank is term banking services include lending, deposit- headquartered in the country in which the affiliate taking, liquidity management, foreign exchange man- operates, a home-nation bank is headquartered in the agement, and other financial services that have a time same country in which the affiliate's parent is headhorizon of less than one year. A foreign affiliate of a quartered, and a third-nation bank is headquartered in corporation can take the form of a subsidiary, branch neither the home nor host country. office, sales office, manufacturing plant, or some For reach, banks are classified as global, regional, other related entity that requires banking services or local. Global banks are defined to have the widest within a given country. reach. They provide services to the affiliates in at Responses to the survey were obtained from 1,129 least nine of the twenty European nations from which corporations. These corporations had a total of 2,118 respondents were drawn and have at least $100 bilforeign affiliates operating in twenty countries in lion in consolidated assets as of year-end 1995. Local Europe, or about two affiliates per corporation. The banks are defined to have the narrowest reach, proparent corporations of most of these affiliates were viding services to the affiliates in the European nation headquartered in Europe, although 24 percent were of their headquarters only and having consolidated headquartered outside Europe, mostly in the United assets of less than $100 billion. By definition, all States. local banks serve only as host-nation banks. Finally, The survey asked corporations to identify the banks regional banks are defined to have intermediate their foreign affiliates used for short-term banking reach. They operate in more than one country or have services within each of the twenty countries.12 The more than $100 billion in assets; but they operate in nationalities of the sample banks named by the too few countries, or are too small, to be a global respondents were obtained from Fitch IBCA, a data- bank. Of the 255 banks in our sample, 8 are global, base containing information on the ownership struc- 73 are regional, and the remaining 174 are local. ture of banks. Each bank subsidiary was assumed to By their nature, the bank reach classifications are take on the nationality and reach of its parent. Under somewhat arbitrary and Eurocentric. For instance, this assumption, 255 banks provided short-term bank- banks that have a strong European presence but do ing services for the 2,118 affiliates. not operate outside of Europe could be classified as For each affiliate-bank observation, we identified "global" under our system. Nevertheless, all eight the bank's nationality and reach. For nationality, banks are generally recognized as large, global banks banks are classified as either host-nation, home- (table 1). The findings are materially unchanged when the dividing lines between global and regional banks and between regional and local banks are 11. For a detailed description of the survey, see Steven Ongena and altered. Overall, we are confident that the results are David C. Smith, "What Determines the Number of Bank Relationnot an artifact of our definition of bank reach. ships: Cross-country Evidence," Journal of Financial Intermediation, vol. 9 (January 2000), pp. 26-56. With respect to bank nationality, we find that 12. A respondent could identify up to two banks for each nearly two-thirds of all affiliates (66 percent) use a country—a "primary" and "secondary" bank. To avoid biases associated with double counting, we report all sample statistics using only bank headquartered in the host nation for their shortthe affiliate's primary bank choice. Berger, Dai, Ongena, and Smith, term banking services (table 2). The remaining affili- "To What Extent Will the Banking Industry Be Globalized?" find that ates split evenly between using a home-nation bank the results reported here are not altered by use of an alternative definition that includes a secondary bank. (18 percent) and a third-nation bank (17 percent). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Global Integration in the Banking Industry 455 2. Distribution of bank nationality and bank reach, by host nation, 1996 Percent except as noted TToottaall bbaannkk Bank nationality Bank reach aasssseettss ooff nnaattiioonn NNuummbbeerr ooff HHoosstt nnaattiioonn ((bbiilllliioonnss ooff aaffffiilliiaatteess ddoollllaarrss,, Host1 Home2 Third 3 Global4 Regional5 Local6 yyeeaarr--eenndd 11999955)) All 9,563 2,118 65.5 17.7 16.9 35.1 52.8 12.0 Large banking sector Germany 3,041 240 73.3 14.2 12.5 40.0 49.2 10.8 France 1,527 223 76.7 12.1 11.2 66.8 17.0 16.1 United Kingdom 1,278 224 52.2 29.0 18.8 25.9 71.9 2.2 Italy 831 119 70.6 17.6 11.8 27.7 43.7 28.6 Switzerland 557 103 76.7 15.5 7.8 13.6 78.6 7.8 552 126 57.9 26.2 15.9 26.2 54.8 19.0 Netherlands 457 166 78.3 11.4 10.2 76.5 21.1 2.4 Total 8,241 1,201 69.1 17.9 13.0 42.5 46.1 11.4 Small banking sector Belgium 389 150 59.3 21.3 19.3 35.3 64.0 .7 Austria 297 79 79.7 8.9 11.4 20.3 72.2 7.6 Sweden 106 109 85.3 9.2 5.5 11.0 79.8 9.2 Norway 95 83 74.7 15.7 9.6 10.8 80.7 8.4 Portugal 89 54 51.9 20.4 27.8 27.8 29.6 42.6 Finland 88 48 77.1 12.5 10.4 16.7 68.8 14.6 Denmark 75 100 85.0 7.0 8.0 12.0 79.0 9.0 Greece 47 40 40.0 20.0 40.0 45.0 32.5 22.5 Ireland 26 73 56.2 19.2 24.7 21.9 74.0 4.1 Luxembourg 13 40 15.0 17.5 67.5 27.5 57.5 15.0 Total 1,224 776 67.0 14.8 18.2 21.9 67.7 10.4 Former Eastern bloc Czech Republic 43 49 28.6 28.6 42.9 42.9 28.6 28.6 Poland 36 60 28.3 26.7 45.0 50.0 21.7 28.3 Hungary 16 32 18.8 43.8 37.5 40.6 40.6 18.8 Total 96 141 26.2 31.2 42.6 45.4 28.4 26.2 NOTE. Banks are those chosen by affiliates of multinational corporations 4. A global bank provides services to the affiliates in at least nine of the operating in twenty European countries and surveyed in 1996. The banks twenty European nations and had at least $100 billion in worldwide assets as of provide short-term banking services to the affiliates that selected them. year-end 1995. Components may not sum to totals because of rounding. 5. A regional bank is neither global (is in too few nations or is too small) nor 1. A host-nation bank is headquartered in the nation in which the affiliate local (is in too many nations or is too large). operates. 6. A local bank provides services to the affiliates only in the European nation 2. A home-nation bank is headquartered in the same nation in which the of the bank's headquarters and had worldwide assets of less than $100 billion as affiliate's parent is headquartered. of year-end 1995. 3. A third-nation bank is headquartered in neither the host nation nor the SOURCE. Berger, Dai, Ongena, and Smith, "To What Extent Will the Bankhome nation. ing Industry Be Globalized?" table 2, p. 392. This pattern suggests that preferences for host-based sector and grouped into one of three categories: largeexpertise are strong and tend to dominate bank selec- banking-sector nation, small-banking-sector nation, tions. This finding also contrasts with the perception or former Eastern-bloc nation (table 2). The data in much of the academic literature that foreign affili- show that bank nationality choice can differ greatly ates favor their home-nation banks.13 across industrialized host nations, particularly among With respect to bank reach, about 35 percent of the small-banking-sector countries. For instance, only affiliates choose global banks, 53 percent choose 15 percent of the affiliates operating in Luxembourg regional banks, and 12 percent choose local banks. use a host-nation bank, whereas about 85 percent of These data suggest that while a vast majority of the those in Sweden do so. We separately consider the foreign affiliates of multinational corporations prefer banking systems of the former Eastern-bloc nations banks that span multiple nations (that is, global or because they tend to have legal and financial systems regional banks), only about one-third choose global that are relatively new compared with those of westbanks. ern Europe.14 Only 26 percent of the affiliates operat- We also examine the distribution of bank national- ing in the former Eastern-bloc nations use a host ity and reach within each of the twenty host coun- bank; about 43 percent select a bank from a third tries, sorted by the total size of the nation's banking nation. Thus, use of host-nation banks in the former Eastern-bloc nations is much less frequent than in the 13. For example, see Larry G. Goldberg and Anthony Saunders, industrialized nations of western Europe. "The Determinants of Foreign Bank Activity in the U.S.," Journal of Banking and Finance, vol. 15 (March 1981), pp. 17-32; and E.C. Kaplanis and Richard A. Brealey, "The Determination of Foreign Bank Location," Journal of International Money and Finance, 14. The former Eastern-bloc countries in the sample are the Czech vol. 15 (August 1996), pp. 577-97. Republic, Hungary, and Poland. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 Federal Reserve Bulletin • November 2003 3. Distribution of bank nationality and bank reach, by home nation, 1996 Percent except as noted TToottaall bbaannkk Bank nationality Bank reach aasssseettss ooff nnaattiioonn NNuummbbeerr ooff HHoommee nnaattiioonn ((bbiilllliioonnss ooff aaffffiilliiaatteess ddoollllaarrss,, Host Home Third Global Regional Local yyeeaarr--eenndd 11999955)) AH 22,151 2,118 65.5 17.7 16.9 35.1 52.8 12.0 Large banking sector Germany 3,041 177 76.8 7.9 15.3 31.6 55.4 13.0 France 1,527 50 60.0 26.0 14.0 32.0 54.0 14.0 United Kingdom 1,278 364 79.1 6.3 14.6 30.5 57.1 12.4 Italy 831 84 54.8 9.5 35.7 36.9 51.2 11.9 Switzerland 557 84 63.1 3.6 33.3 48.8 40.5 10.7 Spain 552 12 66.7 25.0 8.3 41.7 25.0 33.3 Netherlands 457 121 47.1 26.4 26.4 48.8 45.5 5.8 Total 8,241 892 69.3 10.8 20.0 35.8 52.5 11.8 Small banking sector Belgium 389 4 100.0 .0 .0 .0 100.0 .0 Austria 297 39 64.1 28.2 7.7 17.9 51.3 30.8 Sweden 106 164 73.8 12.8 13.4 21.3 67.7 11.0 Norway 95 65 63.1 7.7 29.2 23.1 63.1 13.8 Portugal 89 12 25.0 25.0 50.0 58.3 33.3 8.3 Finland 88 177 83.1 4.5 12.4 21.5 63.8 14.7 Denmark 75 134 70.1 17.9 11.9 17.2 62.7 20.1 Greece 47 5 40.0 20.0 40.0 80.0 20.0 .0 Ireland 26 100 58.0 9.0 33.0 43.0 47.0 10.0 Luxembourg 13 16 81.3 .0 18.8 18.8 62.5 18.8 Total 1,224 716 70.9 11.5 17.6 24.4 60.8 14.8 Former Eastern bloc Czech Republic 43 2 100.0 .0 .0 .0 50.0 50.0 Poland 36 2 100.0 .0 .0 50.0 .0 50.0 Hungary 16 0 n.a. n.a. n.a. n.a. n.a. n.a. Total 96 4 100.0 .0 .0 25.0 25.0 50.0 Other Japan 6,746 9 77.8 .0 22.2 33.3 44.4 22.2 United States 5,012 470 49.1 41.7 9.1 51.1 41.7 7.2 Canada 408 22 72.7 .0 27.3 18.2 59.1 22.7 Other 422 5 60.0 .0 40.0 40.0 40.0 20.0 Total 12,588 506 50.8 38.7 10.5 49.2 42.5 8.3 NOTE. See notes to table 2. n.a. Not applicable. The data on bank reach also show considerable 11 percent opt for a home-nation bank. This result is variation across host nations. Global banks are cho- surprising, given that many of the European corposen relatively more frequently in large-banking-sector rations have large home-nation banks close by from nations (43 percent) and in former Eastern-bloc which to choose. In fact, the only outlier home nation nations (45 percent) than in small-banking-sector is the United States. Of the affiliates whose parents nations (22 percent). This observed pattern seems to are headquartered in the United States, 42 percent indicate that global banks prosper best in markets choose home-nation banks, a rate much higher than open to bank competition (large-banking-sector that for affiliates from other countries. This finding nations) and in markets with less-established could reflect the ability of U.S.-owned banks to operbanking systems (former Eastern-bloc nations). Also ate relatively efficiently in foreign countries, consisnotable is the variation in reach among the large- tent with the academic literature.15 banking-sector nations. For example, about two- Although bank nationality and reach are two disthirds of the affiliates operating in France use a global tinct concepts, they can be related. For instance, we bank; more than two-thirds of the affiliates operating have already seen that banks with local reach have, in Switzerland and the United Kingdom use regional by definition, host-nation nationality. Other depenbanks; and more than one-fourth of the affiliates dencies may result from how banks with a given operating in Italy use local banks. reach are distributed across countries. For example, We also examine the distribution of bank some countries do not have a global bank headquarnationality and reach according to the home nation tered within their borders. Banks in these countries of the affiliate, including countries outside the twenty host European nations (table 3). Of the foreign affili- 15. See Allen N. Berger, Robert DeYoung, Hesna Genay, and ates with corporate headquarters in European coun- Gregory F. Udell, "Globalization of Financial Institutions: Evidence from Cross-Border Banking Performance," in Robert E. Litan and tries with both large and small banking sectors, Anthony Santomero, eds., Brookings-Wharton Papers on Financial 70 percent select a host-nation bank and only about Services (Washington: Brookings Institution Press, 2000), pp. 23-158. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Global Integration in the Banking Industry 457 Diagram 1. Distribution of bank nationality and bank reach in a two-stage decision tree Total sample: 2,118 affiliates in twenty European nations Bank nationality Bank reach Regional Global Regional 37.7% 63.3% 36.7% (285 affiliates) (847 affiliates) (255 affiliates) (233 affiliates) (141 affiliates) (226 affiliates) (131 affiliates) NOTE. See notes to table 2. By definition, a local bank does not arise as a second-stage choice when an affiliate chooses a home-nation or third-nation bank. cannot offer both host-based expertise and global As shown earlier, almost two-thirds of the affiliates services to affiliates that value such a combination. use host-nation banks over home- and third-nation Likewise, banks from these countries cannot jointly banks (table 2), a pattern consistent with strong hostoffer home-based and global services to affiliates of based expertise. Affiliates' choices for bank reach native corporations operating abroad. Finally, some differ greatly, depending on bank nationality (diabanking systems may be too new or undeveloped to gram 1). After selecting a host-nation bank, about offer competitive banking services at even a local 21 percent of the affiliates use a global bank. By level. comparison, of affiliates that select either a home- We study potential dependencies between bank nation or third-nation bank, about 63 percent use nationality and reach by assuming that bank reach a global bank. In other words, affiliates tend to use depends first on the selection of bank nationality. We banks with global reach once they choose a homereason that, in the absence of barriers to integration, a nation or third-nation bank, but they tend to use a bank's reach will be limited by the extent to which regional or local bank once they choose a host-nation customers value cross-border banking relations. For bank. example, in the extreme case that all bank customers One aspect of the data that could be driving these selected host-nation banks for all of their services, patterns is that, as of 1996, only three host nations— there would be no need for banks with global reach. France, Germany, and the Netherlands—had a global A two-stage decision tree illustrates our framework bank headquartered within their borders. That is, (diagram 1). In the first stage, an affiliate decides on affiliates choosing a host-nation bank in any of the bank nationality; in the second stage, it chooses bank other seventeen nations in our sample could not also reach. Note that by definition, a local bank does not select a global bank. This limitation could simply arise as a second-stage choice when an affiliate reflect an equilibrium outcome—that is, the demand chooses a home-nation or third-nation bank in the for global services within these countries is not great first stage. At the nodes of the top branches of the enough to induce a host-nation bank to expand its tree, we report the sample frequencies for selecting reach globally or to induce an existing global bank a host-nation, home-nation, and third-nation bank, to move its headquarters to one of these countries. while at the bottom branch nodes, we report the Alternatively, this outcome could reflect supply consample frequencies for selecting a global, regional, ditions in the host nation. and local bank given the prior choice of bank We look more closely at Germany to gain some nationality. insight into how the distribution of bank choices Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 Federal Reserve Bulletin • November 2003 Diagram 2. Distribution of bank nationality and bank reach in Germany in a two-stage decision tree Bank nationality (30 affiliates) Bank reach Global Regional Local Global Regional Global Regional 34.1% 14.8% 51.1% 55.9% 44.1% 56.7% 43.3% (60 affiliates) (26 affiliates) (90 affiliates) (19 affiliates) (15 affiliates) (17 affiliates) (13 affiliates) NOTE. See notes to diagram 1. might differ in a market in which all types of banks banks in these countries. We speculate that the bankare available (diagram 2). Germany not only has a ing systems within these countries are not yet host-nation bank that is global (Deutsche Bank), but developed enough to offer competitive host-based it also has three strong nationwide systems of local expertise. and regional commercial banks from which affili- One limitation of the 1996 survey evidence is that ates may choose: the Landesbanken (state banks), it offers only a "snapshot" of the provision of bank- Sparkassen (savings banks), and Hypothekbanken ing services rather than a picture of the evolution of (building societies). banking markets over time. Moreover, the snapshot The German data in diagram 2 suggest that the was seven years ago; significant integration could supply conditions alone do not create the patterns have occurred since that time. shown in diagram 1. A substantial proportion of the foreign affiliates operating in Germany still select a host-nation (that is, German) bank for their banking A LOOK AT THE TLME-SERIES DATA services. More important, if they choose a German We begin our time-series analysis with two measures bank, affiliates choose a regional or local bank over a global bank by a two-to-one margin; whereas, if they of banking industry integration for the period from choose a home-nation or third-nation bank, most 1992 to 2002. The first measure is the proportion of affiliates then choose a global bank. syndicated loans that host-nation banks provide to The cross-country variation in bank nationality and European affiliates of multinational corporations. reach was analyzed more formally using a regression That is, we start with the same types of affiliates as model that attempted to control for the demand and examined in the previous section, but we now track supply factors within host nations, the geographic, the nationality of those banks that provide syndicated cultural, and financial differences between host and loans to the affiliates. home nations, and the attributes of a foreign affili- The syndicated loan market is a popular mechaate's parent corporation.16 The regression analysis nism for extending loans to medium-sized and large confirmed the importance of host-nation-based exper- borrowers and is often thought to be the most glotise in the choice of bank. An additional finding was bally integrated sector of the banking industry. Our that host-nation banks are less likely to be chosen in measure is constructed from Loanware, a database the former Eastern-bloc countries, and home-nation that tracks syndicated loan agreements from around banks typically fill the void left by the host-nation the world.17 For the 1992-2002 period, we review 17. Loanware is a product of Dealogic, Ltd. A syndicated loan 16. Berger, Dai, Ongena, and Smith, "To What Extent Will the agreement is a loan contract between a borrower and a group of banks, Banking Industry Be Globalized?" typically headed by a "lead" or "arranging" bank or group of banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Global Integration in the Banking Industry 459 1. Indicators of banking market integration in Europe, the share of total private bank debt claims (domestic 1992-2002 and foreign) that are claims on domestic customers. This measure is calculated for banks residing in twelve countries in western Europe (Austria, Belgium, Denmark, France, Germany, Ireland, Italy, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom), plus Canada, Japan, and the United States.18 We interpret a decline in the share of domestic bank claims to total bank claims as an increase in the level of integration. The proportion has fallen somewhat over the past decade (chart 1, bottom panel). It hovered around 78 percent from 1992 through 1995 and then began to decline slowly. By 2002, the proportion had fallen to 70 percent. This decrease indicates that banks have increased their foreign claims over the past decade slightly faster than the rate at which they expanded their domestic claims. We provide one more piece of time-series evidence on the progress of integration, and that is the pace of price convergence across countries. John Rogers uses a comprehensive and detailed set of prices for 139 nonfinancial consumer goods in twenty-five European cities from 1990 to 2001 to measure the speed at which prices converged as barriers to cross-border trade were diminished within Europe.19 Rogers compares the dispersion of prices in European cities, including a subset of cities within the eleven original 1992 1994 1996 1998 2000 2002 countries of the EMU, to the dispersion of prices for SOURCE. For top panel, see text note 17; for bottom panel, see text note 18. a similar set of goods across cities within the United States.20 By 1996, the dispersion in prices across 1,556 syndicated loans to foreign affiliates of multi- the European countries had narrowed significantly national corporations operating in Europe. (chart 2). In fact, prices within the EMU countries The degree of integration as measured by the pro- had converged to a degree comparable to that observed in the United States. Most of the converportion of syndicated loans financed by host-nation gence occurred in the earlier part of the period, with banks did not increase over the past decade (chart 1). little or no further convergence occurring after 1996. In 1992, host-nation banks financed 35 percent of the syndicated loans; in 2002, they financed the same In sum, the various sets of time-series data examproportion. Since 1996, the proportion of host-nation ined here suggest that little further integration has banks financing syndicated loans has fluctuated occurred in Europe since our sample was collected between 39 percent and 21 percent. Thus, the syndi- in 1996, although the BIS banks claims statistics cated loan data provide no evidence to suggest that the level of bank integration has changed much since 18. "Claims" refer to loans, notes, and equity claims that banks the 1996 survey. hold against customers. Foreign claims refer to claims on customers The syndicated loan data suffer from a potential outside of a bank's resident country. Foreign claims are obtained from the Bank for International Settlements' locational statistiscs through drawback. If the syndicated loan market was already www.bis.org. To avoid the double counting of claims against subsidifully integrated in 1992, then one might not expect aries, we subtract local office claims from total foreign bank claims. it to change much over the decade. Indeed, we see Private domestic bank claims are from the International Monetary Fund's International Financial Statistics. that by 1992 foreign banks (home- and third-nation 19. John H. Rogers, "Monetary Union, Price Level Convergence, banks) already covered roughly two-thirds of the and Inflation: How Close is Europe to the United States?" Internaloans provided to foreign affiliates (chart 1, top tional Finance Discussion Papers 740 (Board of Governors of the panel), which might be close to full integration. Federal Reserve System, 2002). 20. Price dispersion is defined as the cross-city standard deviation Another measure of integration that provides a of a product's price (calculated after normalizing the price by the more general assessment of changes through time is average price of the product). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 Federal Reserve Bulletin • November 2003 2. Price dispersion for traded goods in Europe and the services that best suit bank customers, and that such United States, 1990-2001 disadvantages may limit the integration of the banking industry. Percent Our main findings, which are based on a 1996 cross-section of European affiliates of multinational corporations, suggest that almost two-thirds of these — 20 affiliates receive short-term banking services from a \ Selected European countries bank headquartered in the affiliate's host nation. This — 15 result is consistent with a strong host-based-expertise effect, in which host-nation banks have significant EMU-11/-X — 10 competitive advantages in understanding the culture, business practices, and regulatory conditions of the host nation. However, in the former Eastern-bloc United States — 5 nations, the data suggest that only about one-fourth of these same types of affiliates are served by host- 1 I I 1 I 1 1 1 1 1 1 1 1 1 1 1991 1993 1995 1997 1999 2001 nation banks. This finding is consistent with the NOTE. The EMU-11 consists of Austria, Belgium, Finland, France, possibility that host-nation banks in these nations Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. are not equipped to provide the package of banking The selected European countries are the EMU-11, the United Kingdom, Sweden, and Switzerland. For definition of price dispersion, see text note 20. services that would give them an advantage over SOURCE. John H. Rogers, "Monetary Union, Price Level Convergence, and foreign institutions. Inflation: How Close Is Europe to the United States?" International Finance Discussion Papers 740 (Board of Governors of the Federal Reserve System, We also examine three sets of time-series data on 2002). the progress of integration in Europe from 1992 to 2002. The main purpose is to explore the possibility suggest that banks have expanded somewhat across that our "snapshot" of banking as of 1996 might borders since 1999. have predated significant advances in the integration of the European banking industry. We show data on the changes in (1) the proportions of the syndicated SUMMARY loan market that are underwritten by domestic banks, (2) the changes in the proportions of total bank The barriers to global integration in the banking claims that are held by domestic banks, and (3) the industry have been significantly reduced over the past convergence of prices of consumer goods across two decades. Among the contributing factors have Europe. These data suggest that, if anything, most been the lifting of regulatory restrictions on cross- of the effects of the reduced barriers had already border banking, technological advances that allow for occurred by 1996. better management of financial institutions across Overall, the findings suggest that domestic banks borders, and increases in nonfinancial activities that possess some competitive advantages that may sigcreate demands for international banking services. nificantly limit the global integration of the banking Despite these reduced barriers, the integration of the industry. In industrialized nations, domestically based banking industry in most developed countries has institutions appear likely to retain significant market fallen far short of the expectations of many observers. shares for some financial services that could poten- Some potentially powerful market forces based on tially be provided by foreign institutions, even when the competitive advantages of domestic and foreign the barriers to bank integration have declined drabanks may help explain the lack of an advance in matically. In contrast, foreign banks may obtain much global banking. We argue that foreign banking orga- higher shares in some less-industrialized nations nizations may be at significant competitive dis- because of competitive advantages over domestic advantages in providing the price, quality, and mix of institutions that are less well developed. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

461 Announcements RELEASE OF ANNUAL ADJUSTMENTS FOR Additionally, the Board increased the deposit RESERVE CALCULATIONS AND DEPOSIT cutoff level that is used with the exemption level REPORTING to determine the frequency and detail of deposit reporting. The Federal Reserve Board on October 1, 2003, announced the annual adjustments in the amount of net transaction accounts used in the calculation COMMENTS REQUESTED ON PROPOSED of reserve requirements and the cutoff level used CHANGES TO CASH SERVICES POLICY to determine the detail and frequency of deposit reporting. All depository institutions must retain a percentage The Board of Governors of the Federal Reserve of certain types of deposits in the form of vault cash, System on October 8, 2003, requested comment on or as a deposit in a Federal Reserve Bank, or in a proposed changes to its cash services policy. The pass-through account at a correspondent institution. changes would address a shift by depository insti- Reserve requirements currently are assessed on the tutions away from traditional patterns of currency depository institution's net transaction accounts activity toward greater reliance on Reserve Bank (mostly checking accounts). cash processing and provide incentives for deposi- For net transaction accounts in 2004, the first tory institutions to recirculate currency among their $6.6 million, up from $6.0 million in 2003, will customers. be exempt from reserve requirements. A 3 percent To reduce depository institutions' overuse of reserve ratio will be assessed on net transaction Reserve Bank cash-processing services that are proaccounts of more than $6.6 million up to and includ- vided at no charge, the Board proposes revising its ing $45.4 million, up from $42.1 million in 2003. cash services policy by adding two elements: (1) a A 10 percent reserve ratio will be applied above custodial inventory program that provides an incen- $45.4 million. tive to depository institutions to hold currency in These annual adjustments, known as the low their vaults to meet customers' demand; and (2) a fee reserve tranche adjustment and the reservable lia- to depository institutions that deposit fit currency to, bilities exemption adjustment, are based on growth and order currency from, Reserve Banks within the in net transaction accounts and total reservable same week. Initially the policy changes would apply liabilities, respectively, at all depository insti- only to the $5, $10, and $20 denominations. The tutions between June 30, 2002, and June 30, Reserve Banks estimate that the proposed changes 2003. would affect approximately 100 of their largest cash For depository institutions that report weekly, the customers. low reserve tranche adjustment and the reservable The Board proposes to implement the recirculation liabilities exemption adjustment will apply to the policy in phases. In early 2004, the Reserve Banks reserve computation period that begins Tuesday, will accept applications for a custodial inventory November 25, 2003, and the corresponding reserve proof-of-concept, or trial, program. The Board will maintenance period that begins Thursday, Decem- evaluate the results of the program after about six ber 25, 2003. months of operation and will decide whether to For institutions that report quarterly, the low implement a permanent custodial inventory program reserve tranche adjustment and the reservable liabili- in 2005. Reserve Banks would begin assessing the ties exemption adjustment will apply to the reserve recirculation fee in 2006. In 2007, the Board would computation period that begins Tuesday, Decem- extend the recirculation policy to one-dollar notes if ber 16, 2003, and the corresponding seven-day the Reserve Banks are unable, by working collaborareserve maintenance period that begins Thursday, tively with depository institutions, to achieve signifi- January 15, 2004. cant savings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 Federal Reserve Bulletin • November 2003 APPOINTMENT OF CHAIRMEN AND DEPUTY Chicago W. James Farrell, Chairman and Chief Executive Officer, CHAIRMEN OF THE FEDERAL RESERVE BANKS Illinois Tool Works, Inc., Glenview, Illinois, named chairman. The Federal Reserve Board on October 10, 2003, Miles D. White, Chairman and Chief Executive Officer, announced the appointment of the chairmen and Abbott Laboratories, Abbott Park, Illinois, named deputy chairman. deputy chairmen of the twelve Federal Reserve Banks for 2004. St. Louis Each Reserve Bank has a nine-member board of Walter L. Metcalfe, Jr., Chairman, Bryan Cave LLP, directors. The Board of Governors in Washington St. Louis, Missouri, named chairman. Gayle P. W. Jackson, Managing Director, FondElec Clean appoints three of these directors and each year desig- Energy Group, Inc., St. Louis, Missouri, named nates one of its appointees as chairman and a second deputy chairman. as deputy chairman. Following are the names of the chairmen and Minneapolis deputy chairmen appointed by the Board for 2004. Linda Hall Whitman, Chief Executive Officer, QuickMedx, Inc., Minneapolis, Minnesota, named chairman. Frank L. Sims, Corporate Vice President, Transportation, Boston Cargill, Inc., Wayzata, Minnesota, named deputy Samuel O. Thier, M.D., Professor of Medicine and chairman. Professor of Health Care Policy, Harvard Medical School, Massachusetts General Hospital, Boston, Kansas City Massachusetts, named chairman. Richard H. Bard, Chief Executive Officer, Bard & Co., Blenda J. Wilson, President and Chief Executive Officer, Inc., Denver, Colorado, renamed chairman. Nellie Mae Education Foundation, Quincy, Robert A. Funk, Chairman and Chief Executive Officer, Massachusetts, named deputy chairman. Express Personnel Services International, Oklahoma City, Oklahoma, renamed deputy New York chairman. John E. Sexton, President, New York University, New York, New York, named chairman. Dallas Jerry I. Speyer, President and Chief Executive Officer, Ray L. Hunt, Chairman, President, and Chief Executive Tishman Speyer Properties, New York, New York, Officer, Hunt Consolidated, Inc., Dallas, Texas, named deputy chairman. renamed chairman. Patricia M. Patterson, President, Patterson Investments, Inc., Dallas, Texas, renamed deputy chairman. Philadelphia Ronald J. Naples, Chairman and Chief Executive Officer, San Francisco Quaker Chemical Corporation, Conshohocken, George M. Scalise, President, Semiconductor Industry Pennsylvania, named chairman. Association, San Jose, California, renamed chairman. Doris M. Damm, President and Chief Executive Officer, Sheila D. Harris, Director, Arizona Department of ACCU Staffing Services, Cherry Hill, New Jersey, Housing, Phoenix, Arizona, renamed deputy named deputy chairman. chairman. Cleveland Robert W. Mahoney, Retired Chairman and Chief APPOINTMENT OF TIMOTHY F. GEITHNER Executive Officer, Diebold, Incorporated, Canton, AS PRESIDENT, FEDERAL RESERVE BANK OF Ohio, renamed chairman. Charles E. Bunch, President and Chief Operating Officer, NEW YORK PPG Industries, Inc., Pittsburgh, Pennsylvania, renamed deputy chairman. The Federal Reserve Bank of New York on October 15, 2003, named Timothy F. Geithner to serve as Richmond the Bank's new president and CEO. His appointment Wesley S. Williams, Jr., Partner, Covington & Burling, by the New York Federal Reserve Bank's Board of Washington, D.C., renamed chairman. Directors was approved by the Federal Reserve Board Thomas J. Mackell, Jr., President and Chief Operating Officer, The Kamber Group, Washington, D.C., of Governors and announced by Mr. Peter Peterson, renamed deputy chairman. chair of the New York Federal Reserve Bank's Board of Directors and of the search committee that selected Atlanta Mr. Geithner. David M. Ratcliffe, President and Chief Executive Officer, Mr. Geithner is expected to assume his duties in Georgia Power Company, Atlanta, Georgia, named mid-November. chairman. V. Larkin Martin, Managing Agent, Martin Farm, Mr. Geithner, 42, currently is the director of the Courtland, Alabama, named deputy chairman. Policy Development and Review Department in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 463 International Monetary Fund of Washington, D.C. to spend the new currency. October 9 was the first His department plays a central role in the design and day banks received the new bills from the Federal implementation of IMF policies and in the review of Reserve System and in turn began to distribute them its financial programs and assessments of member to their customers. It took several days or even weeks economies. He joined the IMF in September 2001. for the bills to make their way to all communities Mr. Geithner served as Under Secretary of the in the United States and internationally. The new Treasury for International Affairs from 1998 to 2001 designs will co-circulate with old-design $20 notes, under Secretaries Robert Rubin and Lawrence Sum- until, gradually, the old-design notes become worn mers. He was a principal adviser and member of the and are pulled from circulation. executive branch's senior team. "The New Color of Money starts making its way "I'm honored to be selected for this post and to into cash registers and wallets today," said Tom work with an institution that is central to domestic Ferguson, director of the U.S. Treasury's Bureau of and global financial stability," said Mr. Geithner. Engraving and Printing (BEP). "This is a historic "I'm pleased Tim Geithner will be at the helm; milestone on two fronts: for the first time in modern he'll do a great job," Mr. Peterson said. "He has done history, U.S. currency features background colors an outstanding job at Treasury and the IMF and is other than black and green, and, more importantly, admirably equipped to confront the unique domestic this currency is the most secure U.S. currency ever, to and international challenges that will face our finan- protect against counterfeiting." cial system over the coming years." "While much of the public will be anxious to see Mr. Geithner will succeed William J. McDonough, and handle this newly designed $20 bill, we want to who served as the Bank's president from July 1993 emphasize that older-design $20 notes are still in until he stepped down in June of this year to assume circulation, and still maintain their value," said Marthe post of chairman of the Public Company Account- sha Reidhill, the Federal Reserve Board's assistant ing Oversight Board in Washington, D.C. Jamie B. director for cash. "A genuine U.S. $20 bill—whether Stewart, First Vice President of the Federal Reserve it has the new background colors or the familiar Bank of New York, has assumed on an interim basis green and black—is legal tender, worth $20. It is the duties of president since Mr. McDonough's important to remember that all bills are good, for departure. good. The stability and integrity of U.S. currency has Mr. Peterson was assisted in the search by an kept worldwide trust and confidence high, and the outside advisory committee with ties to the Federal government is committed to keeping it that way." Reserve Bank of New York: Ann Fudge, Ellen Futter, The BEP and the Federal Reserve System have Maurice R. Greenberg, Walter Shipley, Paul Volcker, been educating the public worldwide about the new John Whitehead, and Robert Wilmers. Search com- bills in professional and community settings, in mittee members, all current members of the New preparation for a smooth transition this fall. More York Federal Reserve Bank's Board, are Jill Consi- than 37 million items of training materials such as dine, Loretta Lynch, John Sexton, Jerry Speyer, and brochures, posters, training videos, and CD-ROMS Charles Wait. have been ordered by businesses large and small to Mr. Peterson was also advised by Robert Rubin, train their cash-handling employees on the bill's new E. Gerald Corrigan, Lawrence Summers, and Fred look and updated security features. Additionally, Bergsten. He was also assisted by Tom Neff, Chair- there have been more than 2 million visits to the man US of Spencer Stuart. new money web site (www.moneyfactory.com/ newmoney) for information. The public education program continues globally with broadcast, print, DEBUT OF A MORE SECURE, COLORFUL Internet, and other public education advertising; and $20 BILL integration of the new money's look and security features have been featured in the story lines of The most secure currency in U.S. history was intro- television programs that reach millions of viewers. duced into the economy on October 9, 2003, as a Ferguson and Reidhill marked the historic issue of newly redesigned, colorful $20 bill was issued by the the new $20 bill in New York City's Times Square, Federal Reserve System. where they spent the new twenties in Times Square In dozens of communities from coast to coast, U.S. area businesses. In Washington, D.C., Michael Lamgovernment officials and local business, banking, and bert, the Federal Reserve System's Financial Services civic leaders participated in transactions with the new manager who is responsible for cash, and James $20 notes, marking the first opportunity for the public Brent, the BEP's chief of the office of currency Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 Federal Reserve Bulletin • November 2003 production, demonstrated the effectiveness of the • The security thread—also visible from both sides government's advance preparation for the new money when held up to the light, this vertical strip of plastic by using a new $20 note to buy stamps from a is embedded in the paper. "USA TWENTY" and a vending machine at a U.S. Postal Service facility. The small flag are visible along the thread. government began working with the vending machine • The color-shifting ink—the numeral "20" in the industry and transit authorities more than a year ago lower-right corner on the face of the note changes to ensure there was ample time for adjustments so from copper to green when the note is tilted. The machines will accept the new bills. color shift is more dramatic and easier to see on the Events marking the first purchases with the new new-design notes. $20 notes were held in more than thirty U.S. cities. In late October, the issue of the new $20 bill was Because these features are difficult for counterfeitmarked by international events in dollarized econo- ers to reproduce well, they often do not try. Countermies and in countries where U.S. currency is widely feiters are hoping that cash-handlers and the public held, such as Russia and countries throughout Latin will not check their money closely. America. Counterfeiting: Increasingly Digital The New Color of Money: Safer. Smarter. More Secure. Currency counterfeiters are increasingly turning to digital methods, as advances in technology make The most noticeable difference in the new $20 notes digital counterfeiting of currency easier and cheaper. is the subtle green, peach, and blue colors featured In 1995, for example, less than 1 percent of counterin the background. New designs for the $50 and feit notes detected in the United States were digitally $100 notes are scheduled for introduction in 2004 produced. By 2002, that number had grown to nearly and 2005 respectively. Different colors will be 40 percent, according to the U.S. Secret Service. used for different denominations, which will help Yet despite the efforts of counterfeiters, U.S. cureveryone—particularly those who are visually rency counterfeiting has been kept at low levels, with impaired—to tell denominations apart. Redesign of current estimates putting the level of counterfeit the $5 and $10 notes is under consideration, but the notes in circulation worldwide at between 0.01 and $1 and $2 notes will not be redesigned. 0.02 percent, or about 1 to 2 notes in every 10,000 Although consumers should not use color to check genuine notes. the authenticity of their currency (relying instead on To learn more about the new currency and to user-friendly security features—see below), color download an image of the new $20 note, visit does add complexity to the note, making counterfeitwww.moneyfactory.com/newmoney. ing more difficult. The new $20 bills maintain the traditional U.S. currency appearance, are the same size, and use the D.C. DEBUT OF NEWLY REDESIGNED $20 BILL same, but enhanced portraits and historical images of AT L'ENFANT PLAZA POST OFFICE Andrew Jackson on the face of the note and the White House on the back. The redesign also features U.S. government officials introduced the newly redenew symbols of freedom—a blue eagle in the backsigned $20 note into the community on October 9, ground, and a metallic green eagle and shield to the 2003, at the L'Enfant Plaza Post Office in Washingright of Jackson's portrait. ton, D.C., marking the first opportunity for the public to spend the new currency in the Washington area. Security Features James Brent, the chief of the office of currency production in the U.S. Treasury Department's Bureau of The new $20 note design retains three important Engraving and Printing, joined Michael Lambert, security features that were first introduced in the late financial services manager of the Federal Reserve 1990s and are easy for consumers and merchants Board, to mark this historic milestone. alike to check: In Washington, the first expenditure with the new $20 bill was the purchase of stamps from the stamp • The watermark—the faint image similar to the vending machines at the Post Office. The U.S. Postal large portrait, which is part of the paper itself and is Service has had to prepare its machines as well as its visible from both sides when held up to the light. employees to ensure acceptance of the new money. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 465 "After months of seeing them roll off of the including the elderly, by deceiving them about loan presses, I am honored to spend the first new $20 bill terms or giving them loans they cannot afford to in my hometown of Washington, D.C.," said Brent, repay. Before signing the credit contract, consumers who is responsible for the day-to-day operations are encouraged to do the following: of currency production at the Bureau's Washington, D.C., facility. "The Bureau of Engraving and Print- • Think about their financing options ing is tremendously proud of The New Color of • Do their homework Money, and I am proud to have helped in the creation • Think twice before they sign a loan contract of the safest, smartest, and most secure note the U.S. • Know that they have rights under the law government has ever produced." "Today marks the formal introduction into circula- The brochure notes that many consumers may have tion of the most secure note the U.S. government has other options for meeting their financial needs besides ever produced," said the Federal Reserve Board's taking out a home equity loan. Housing counseling Lambert. "Its enhanced security will help ensure that and social service programs are available to assist our currency continues to represent value, trust and people with financial problems. confidence to people all over the world." If consumers decide that a loan is right for them, "The U.S. Postal Service's stamp vending the brochure suggests talking with several lenders; machines are ready and able to accommodate the new comparison shopping for interest rates, payments, $20 bills, and our retail associates look forward term of the loan, points and fees, and other costs of to serving customers using this new currency," the loan; and having a knowledgeable friend, attorexplained the Postal Service's Manager of Customer ney, or housing counselor review the loan documents. Service Operations, Fred Hintenach. "We are hon- A shopping checklist is included with the brochure. ored that the Bureau chose the L'Enfant Plaza Post The publication also reminds consumers that if Office to be the site of Washington's first commercial they are refinancing or using their home as security transaction with the new $20 bill." for a home equity loan (or for a second mortgage The event in D.C. was one of more than thirty that loan or a line of credit), federal law gives them three took place around the country, including an event in business days after signing the loan papers to cancel New York City. Tom Ferguson, director of the U.S. the deal. The cancellation must be submitted in writ- Treasury's Bureau of Engraving and Printing (BEP), ing, after which the lender is required to return any and Marsha Reidhill, the Federal Reserve Board's money the consumer has paid to date. assistant director for cash, marked today's historic If the three-day period has already passed and issue of the new $20 bill in New York City's Times consumers believe they have been misled, the bro- Square, where they spent the new $20 bill at a Times chure suggests that they contact a state or local bar Square area business. association, a local consumer protection agency, or a local fair housing or housing counseling agency. The members of the Interagency Task Force are the FEDERAL AGENCIES PUBLISH CONSUMER Department of Housing and Urban Development, the BROCHURE ON PREDATORY LENDING Department of Justice, the Federal Deposit Insurance Corporation, the Federal Housing Finance Board, the The federal Interagency Task Force on Fair Lending Federal Reserve Board, the Federal Trade Commishas published a new brochure that alerts consumers sion, the National Credit Union Administration, the to potential borrowing pitfalls, including high-cost Office of the Comptroller of the Currency, the Office home loans, and provides tips for getting the best of Federal Housing Enterprise Oversight, and the financing deal possible. The brochure, Putting Your Office of Thrift Supervision. Home on the Loan Line Is Risky Business, warns that The brochure is available on the agencies' web regardless of whether a home equity loan is for a sites listed below. A PDF (portable document format) home repair, bill consolidation, or some other pur- version is provided on the web site so that consumer pose, it is important to shop around. groups, financial institutions, agencies, and other Borrowing from an unscrupulous lender, especially organizations can download and print copies for disone that offers a high-cost loan using the home as tribution to their clients and customers. It includes a security, could result in the loss of the borrower's space on the back panel for organizations to provide home and money. The brochure cautions that certain their own contact information. A Spanish-language lenders—often called "predatory lenders"—target version of the publication will be available in the homeowners with low incomes or credit problems, future. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 Federal Reserve Bulletin • November 2003 Single copies of the brochure are available free of tem and an annual report on changes in consumer charge from the following agencies: regulations are among the new materials to be presented in the Bulletin. The Bulletin will continue to include topical research articles and summaries Department of Housing and Urban Development: The Department's web site at www.hud.gov or U.S. of Board survey findings, the Board's semiannual Department of Housing and Urban Development, Monetary Policy Reports, a Legal Developments 451 Seventh Street, S.W., Washington, DC 20410; section, and other features such as lists of staff mem- Customer Service Center: (202) 708-3151. bers, councils, committees, lists of Federal Reserve Department of Justice: The Department's web site at publications, and maps of the Federal Reserve www.usdoj.gov or contact the U.S. Department of Justice, Civil Rights Division, 950 Pennsylvania Ave., Districts. N.W., Housing and Civil Enforcement Section, NWB, The Legal Developments section of the quarterly Washington, DC 20530; (202) 514-1116. Bulletin will contain Board orders issued under the Federal Deposit Insurance Corporation: The FDIC's web Bank Holding Company Act, the Bank Merger Act, site at www.fdic.gov or the FDIC's Public Informathe Federal Reserve Act, and the International Banktion Center, 801 17th Street, N.W., Room 100, Washington, DC 20434; (877) 275-3342 or (202) 416-6940. ing Act. Final rules and pending cases involving the Federal Housing Finance Board: The Board's web site at Board are available on the Board's web site under www.fhfb.gov and from the Federal Housing Finance "Legal Developments" at www.federalreserve.gov/ Board, 1777 F Street, N.W., Washington, DC 20006. releases/h2/. Federal Reserve Board: The Board's web site at www.federalreserve.gov/pubs/riskyhomeloans/ The revised publication schedule responds to the default.htm and from Publications Fulfillment, results of customer surveys, the increased use of the Stop 127, Federal Reserve Board, 20th & C Streets, Internet to access information on a more timely basis, N.W., Washington, DC 20551; (202) 452-3245. and the Board's desire to provide a broader range Federal Trade Commission: The FTC's web site at of articles on topics of interest to Bulletin readers. A www.ftc.gov and from the FTC's Consumer Response quarterly schedule will also make the planning and Center, 600 Pennsylvania Avenue, N.W., Washington, DC 20580; toll free: 1-877-FTC-HELP (1-877-382- production of the Bulletin more efficient. 4357); TTY for the hearing impaired (866) 653-4261. The tables that now appear in the Financial and National Credit Union Administration: NCUA's web site Business Statistics section of the Bulletin will be at www.ncua.gov or contact Cliff Northup, Director published monthly as a separate publication titled of Public and Congressional Affairs, National Credit Statistical Supplement to the Federal Reserve Union Administration, 1775 Duke Street, Alexandria, VA 22134. Bulletin. All tables that now appear in the Federal Office of Federal Housing Enterprise Oversight: The Reserve Bulletin, including special tables, will appear Office's web site at www.ofheo.gov. E-mail requests in the Statistical Supplement. All statistical series for individual copies should be sent to will be published with the same frequency that ofheoinquiriesofheo.gov or call (202) 414-6922. they have currently in the Bulletin. The first issue of Office of the Comptroller of the Currency: The OCC's web site at www.occ.treas.gov and from Communications, the Statistical Supplement will be published in Janu- Mail Stop 3-2, Office of the Comptroller of the Cur- ary 2004. The Publications Committee will monitor rency, 250 E Street, S.W., Washington, DC 20219; the usefulness of this publication in meeting the (202) 874-4700. needs of the public over time, especially in light Office of Thrift Supervision: The OTS's web site at of the widespread dissemination of data through the www.ots.treas.gov or contact Louise Batdorf, Office of Thrift Supervision, 1700 G Street, N.W., Washing- Internet. ton, DC 20552; (202) 906-7087. A Bulletin editorial board has been established under the direction of Lucretia Boyer, the Federal Reserve Board's chief of publications, to oversee the quality of content of these two publications and to MOVE OF FEDERAL RESERVE BULLETIN TO A ensure a diverse range of Bulletin articles. QUARTERLY SCHEDULE Separate subscriptions for the two publications will be available starting with the January 2004 issue of The Federal Reserve Board on October 3, 2003, the Statistical Supplement. For additional subscripannounced the move to a quarterly publication sched- tion information, contact Publications Fulfillment at ule for the Federal Reserve Bulletin and the creation 202-452-3244 or 202-452-3245 or send an e-mail to of a new monthly statistical supplement. publications-bog @ frbog.frb.gov. Beginning in the first quarter of 2004, the Bulletin Articles published in the Bulletin will continue to will be enhanced and published four times a year. A be available online at www.federalreserve.gov/pubs/ quarterly report on the condition of the banking sys- bulletin/default.htm. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 467 RELEASE OF MINUTES OF DISCOUNT RATE South Dakota; First PREMIER Bank, Sioux Falls, MEETINGS South Dakota; PREMIER Bankcard, Inc., Sioux Falls, South Dakota; and the Federal Reserve Bank of The Federal Reserve Board on September 25, 2003, Minneapolis. released the minutes of its discount rate meetings from July 7 through August 11, 2003. The Federal Reserve Board on October 3, 2003, announced the execution of a written agreement by and among the First Charter Bank, Charlotte, North ANNOUNCEMENT OF MEETING OF THE Carolina; the Office of the North Carolina Commis- CONSUMER ADVISORY COUNCIL sioner of Banks, Raleigh, North Carolina; and the Federal Reserve Bank of Richmond. The Federal Reserve Board announced on October 2, 2003, that the Consumer Advisory Council would The Federal Reserve Board on October 15, 2003, hold its next meeting on Thursday, October 23, 2003. announced the issuance of a final decision and orders The meeting took place in Dining Room E, Terrace of prohibition against Gene Ulrich and Susan Diehl level, in the Board's Martin Building. The session McCarthy, former senior vice president and vice began at 9:00 a.m. and was open to the public. president, respectively, of Six Rivers National Bank, The Council's function is to advise the Board on Eureka, California. The orders, the result of an action the exercise of its responsibilities under various con- brought by the Office of Comptroller of the Currency, sumer financial services laws and on other matters on prohibit Mr. Ulrich and Ms. Diehl McCarthy from which the Board seeks its advice. participating in the conduct of the affairs of any financial institution or holding company. ENFORCEMENT ACTIONS The Federal Reserve Board on October 15, 2003, announced the execution of a written agreement by The Federal Reserve Board on September 25, 2003, and among the First American Bank, Carpentersville, announced the execution of a written agreement by Illinois; the Illinois Office of Banks and Real Estate; and among United National Corporation, Sioux Falls, and the Federal Reserve Bank of Chicago. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 Legal Developments FINAL RULE—AMENDMENT TO REGULATION F Cathay Bancorp, Inc. Los Angeles, California The Board of Governors of the Federal Reserve System (Board) is amending 12 C.F.R. Part 206, its Regulation F Order Approving the Merger of Bank Holding (Interbank Liabilities). The technical amendments to Regu- Companies lation F will remove an obsolete section of the rule and correct several typographical errors. Cathay Bancorp, Inc. ("Cathay") has requested the Effective September 10, 2003, 12 C.F.R. Part 206 is Board's approval under section 3 of the Bank Holding amended as follows: Company Act ("BHC Act") (12 U.S.C. §1842) to merge with GBC Bancorp ("GBC"), and thereby indirectly acquire General Bank ("General Bank"), both in Part 206—Interbank Liabilities (Regulation F) Los Angeles.1 Notice of the proposal, affording interested persons an 1. The authority citation for Part 206 continues to read as opportunity to submit comments, has been published follows: (68 Federal Register 41,588 (2003)). The time for filing comments has expired, and the Board has considered the proposal and all comments received in light of the factors Authority: 12 U.S.C. 371b-2. set forth in section 3 of the BHC Act. 2. In section 206.1(a), remove the phrase "to implement Cathay, with total consolidated assets of approximately section 308 of the Federal Deposit Insurance Cor- $3 billion, is the 16th largest banking organization headporation Improvement Act of 1991 (Act), 12 U.S.C. quartered in California, controlling one depository institution, Cathay Bank. Cathay Bank is the 29th largest deposi- 371b-2" in the first sentence and add the phrase "under tory institution in California, controlling deposits of authority of section 23 of the Federal Reserve Act approximately $2.1 billion, representing less than 1 percent (12 U.S.C. 371b-2)" in its place. of total deposits in insured depository institutions in the 3. In section 206.2(f), remove "(q)" in each place it state ("state deposits").2 appears. 4. In section 206.2(g), remove the word "Basle" wherever GBC operates one subsidiary depository institution in it appears and add the word "Basel" in its place. California, General Bank, which is the 30th largest depository institution in California, controlling $1.9 billion in 5. In section 206.3(c)(1), remove the word "of" between deposits, representing less than 1 percent of state deposits. the words "form" and "maturity" in the first sentence On consummation of the proposed merger, Cathay Bank and add the word "or" in its place, and remove the would become the 16th largest depository institution in word "of" between the words "amount" and "flex- California, controlling deposits of $4 billion. ible" in the third sentence and add the word "or" in its place. Competitive Considerations 6. In section 206.4(b), remove the word "of" between the words "principal" and "other" in the last sentence and Section 3 of the BHC Act prohibits the Board from approvadd the word "or" in its place. ing any proposal that would result in a monopoly or would 7. In section 206.5(a), footnote 1, remove the phrase "subbe in furtherance of any combination or conspiracy to part B" and add the phrase "subpart D" in its place. monopolize or to attempt to monopolize the business of 8. In section 206.5(f), redesignate paragraphs (i), (ii), and (iii) as paragraphs (1), (2), and (3), respectively, and banking in any relevant banking market. The BHC Act also remove the word "Basle" wherever it appears and add prohibits the Board from approving a proposed bank acquithe word "Basel" in its place. sition that would substantially lessen competition in any relevant banking market, unless the Board finds that the 9. Remove section 206.7. 1. Cathay Bank, also in Los Angeles ("Cathay Bank"), Cathay's ORDERS ISSUED UNDER BANK HOLDING wholly owned subsidiary, has filed an application with the Federal COMPANY ACT Deposit Insurance Corporation ("FDIC") under the Bank Merger Act (12 U.S.C. § 1828(c)) to merge General Bank into Cathay Bank. 2. Deposit data are as of June 30, 2002, and state ranking data are Orders Issued Under Section 3 of the Bank Holding as of December 31, 2002. In this context, depository institutions Company Act include commercial banks, savings banks, and savings associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

469 anticompetitive effects of the proposal clearly are out- Financial and Managerial Considerations weighed in the public interest by the probable effect of the proposal in meeting the convenience and needs of the The BHC Act requires the Board to consider the financial community to be served.3 and managerial resources and future prospects of the com- Cathay competes directly with GBC in the Los Angeles panies and banks involved in a proposal and certain other and the San Francisco-Oakland-San Jose banking mar- supervisory factors under the BHC Act. In assessing the kets, both in California.4 The Board has reviewed carefully financial and managerial strength of Cathay and its subsidthe competitive effects of the proposal in the relevant iaries, the Board has reviewed information provided by banking markets in light of all the facts of record. In Cathay, confidential supervisory and examination informaparticular, the Board has considered the relative shares tion, and publicly reported and other financial information. of total deposits in depository institutions in the markets Based on all the facts of record, the Board concludes that ("market deposits") controlled by the companies involved the financial and managerial resources and future prospects in this transaction,5 the concentration levels of market of the organizations involved in the proposal are consistent deposits and the increase in these levels as measured by the with approval, as are other supervisory factors under the Herfindahl-Hirschman Index ("HHI") under the Depart- BHC Act. ment of Justice Merger Guidelines ("DOJ Guidelines"),6 and other characteristics of the market. Convenience and Needs Considerations Consummation of the proposal would be consistent with Board precedent and the DOJ Guidelines in each of the two In acting on a proposal under section 3 of the BHC Act, the banking markets,7 with one market remaining unconcen- Board is required to consider its effects on the convenience trated and the other remaining moderately concentrated. and needs of the community to be served and to take into The Department of Justice also has conducted a review of account the records of the relevant insured depository the expected competitive effects of the proposal and has institutions under the Community Reinvestment Act advised the Board that it believes that consummation of the ("CRA").8 The CRA requires the federal financial superproposal is not likely to have a significantly adverse effect visory agencies to encourage financial institutions to help on competition in any relevant banking market. The FDIC meet the credit needs of local communities in which they has been afforded an opportunity to comment and has not operate, consistent with their safe and sound operation, and objected to consummation of the proposal. requires the appropriate federal financial supervisory After carefully reviewing all the facts of record, and for agency to take into account an institution's record of reasons discussed in this order, the Board has concluded meeting the credit needs of its entire community, including that consummation of the proposal is not likely to result in low- and moderate-income ("LMI") neighborhoods, in a significantly adverse effect on competition or on the evaluating bank expansionary proposals. The Board has concentration of banking resources in any of the banking carefully considered the convenience and needs factor and markets in which Cathay and GBC directly compete or in the CRA performance records of the subsidiary depository any other relevant banking market. Accordingly, based on institutions of Cathay and GBC in light of all the facts of all the facts of record, the Board has determined that record, including public comments on the effect the procompetitive factors are consistent with approval. posal would have on the communities to be served by the institutions resulting from this proposal. 3. 12 U.S.C. § 1842(c)(1). 4. These banking markets are defined in the Appendix. A. Summary of Public Comments 5. Deposit and market share data are as of June 30, 2002, and are based on calculations in which the deposits of thrift institutions, which include savings banks and savings associations, are weighted at The Board received eleven comments on the proposal. 50 percent. The Board previously has indicated that thrift institutions Nine supported the proposal or commented favorably on have become, or have the potential to become, significant competitors Cathay's or GBC's CRA-related activities. Many of these of commercial banks. See, e.g., Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal commenters commended Cathay or GBC for providing Reserve Bulletin 743 (1984). Thus, the Board regularly has included credit and support to nonprofit organizations, sponsoring thrift deposits in the market share calculation on a 50 percent weighted community development activities, and participating in basis. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 programs that provided affordable housing for LMI indi- (1991). viduals. Other commenters related their favorable experi- 6. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a market is considered unconcentrated if the post-merger HHI is under ences with specific programs or services offered by Cathay 1000 and moderately concentrated if the post-merger HHI is between or GBC. 1000 and 1800. The Department of Justice has informed the Board Two commenters ("Protestants") questioned whether that a bank merger or acquisition generally will not be challenged (in Cathay Bank was focused too narrowly on a relatively the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI small Chinese-American population in its assessment area, by more than 200 points. The Department of lustice has stated that the while underserving larger populations of historically underhigher than normal HHI thresholds for screening bank mergers for served minority communities. In addition, one Protestant anticompetitive effects implicitly recognize the competitive effects of questioned the bank's lending record based on data limited-purpose lenders and other nondepository financial institutions. 7. Market data for these banking markets are provided in the Appendix. 8. 12 U.S.C. §2901 et seq. 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470 Federal Reserve Bulletin • November 2003 reported under the Home Mortgage Disclosure Act small- and medium-sized businesses.12 They concluded ("HMDA")9 and expressed concerns that Cathay made that the bank's lending reflected an excellent responsivea disproportionately small number of small business and ness to the credit needs of its assessment areas, noting that home mortgage loans to Latinos, African Americans, and more than 90 percent of Cathay Bank's small business Filipino Americans.10 Finally, one Protestant expressed the and home mortgage loans were made in the bank's seven view that Cathay's philanthropic contributions and the assessment areas. Examiners also noted that Cathay Bank composition of Cathay Bank's staff demonstrated a low used flexible lending practices, such as a new lowstandard of service to various minority groups. document loan program of the Small Business Administration ("SBA") and the bank's Community Home Loan B. CRA Performance Evaluations Program. In addition, the bank offered a variety of innovative loans, including products from various federal govern- As provided in the CRA, the Board has evaluated the ment agencies' guarantee programs, to meet credit needs convenience and needs factor in light of examinations of and serve consumers and businesses in its assessment areas the CRA performance records of the relevant insured who would otherwise not qualify for traditional banking depository institutions by the appropriate federal super- products. visor. An institution's most recent CRA performance Examiners reported that the bank's geographic distribuevaluation is a particularly important consideration in the tion of loans, particularly its small business loans, reflected applications process because it represents a detailed, a good geographic distribution throughout the assessment on-site evaluation of the institution's overall record of area. Thirty-four percent of the small business loans origiperformance under the CRA by its appropriate federal nated by Cathay Bank during the evaluation period were supervisor.11 made to borrowers in LMI census tracts. Examiners also Cathay Bank received a "satisfactory" rating at its most noted that the bank's distribution of loans reflected good recent CRA performance evaluation by the FDIC, as of penetration among business borrowers of different sizes, January 22, 2001. General Bank received a "satisfactory" particularly small business borrowers. rating at its most recent CRA performance evaluation by Examiners found that Cathay Bank made a relatively the FDIC, as of December 10, 2001. Examiners found no high amount of community development loans, totaling evidence of prohibited discrimination or other illegal credit $74 million during the evaluation period. These loans practices at either of the insured depository institutions funded the construction, renovation, and preservation of involved in this proposal and found no violations of the affordable housing, as well as economic revitalization, substantive provisions of fair lending laws. Examiners also such as a $27.5 million construction loan to build a shopreviewed the assessment areas delineated by Cathay Bank ping center in a low-income area in Los Angeles and a and General Bank and concluded that the areas were $27 million construction loan to build an industrial buildreasonable and did not arbitrarily exclude LMI neighbor- ing in a low-income area in Richmond, California. hoods. In addition, the Board has evaluated informa- Since the 2001 evaluation, Cathay Bank has achieved tion submitted by Cathay about the CRA performance of similar levels of geographic distribution for its small busi- Cathay Bank since the 2001 evaluation, including informa- ness loans. In 2001 and 2002, the bank made approxition relating to the bank's community development lend- mately 38 percent and 35 percent, respectively, of its small ing, lending practices, and CRA-related investments. business loans to borrowers in LMI census tracts. In addition, Cathay Bank's level of community development lending has increased since the 2001 evaluation. Cathay states C. Cathay Bank's CRA Performance Record that the bank has originated 61 community development loans, totaling $221 million in 2001 and 2002. Many of the Examiners rated Cathay Bank "high satisfactory" under loans were commercial real estate loans or lines of credit to the lending test at its most recent CRA performance evalusmall- and medium-sized businesses in designated empowation for the evaluation period January 1, 1999, through erment or enterprise zones in California. December 31, 2000. Examiners noted that Cathay Bank Cathay Bank received a "high satisfactory" rating for was primarily a commercial lender serving the needs of its investment activities in the 2001 evaluation. Examiners noted that the bank had made $27.2 million in qualified community development investments and was particularly 9. 12 U.S.C. § 2801 et seq. 10. The Board notes that lenders are precluded from collecting responsive to the needs identified in its assessment areas. racial or ethnic data on small business borrowers except when such Examiners also noted that the bank had developed an data are collected for the purpose of conducting a self-test. The Board active strategy of making most of its community developalso notes that one Protestant focused on the ethnic background of ment investments in affordable housing-related projects. Cathay Bank's officers and director and implied that the bank lends to ethnic Chinese borrowers to the detriment of Filipino and other Cathay states that since the 2001 evaluation, the bank Asian/Pacific Islander individuals. HMDA data, however, are reported has made more than $47 million in housing-related investin broader ethnic categories and, therefore, isolating data on Chinese ments. These investments involved housing-tax-credit borrowers from data on Filipino or other Asian/Pacific Islander borrowers would be subjective and difficult to accomplish. 12. Examiners noted that 75 percent by number and 70 percent by 11. See Interagency Questions and Answers Regarding Community dollar volume of all loan originations during the evaluation period Reinvestment, 66 Federal Register 36,620 and 36,639 (2001). were small business loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 471 investments and mortgage-backed securities, as well as grants and donations to several community development grants and contributions to community and nonprofit organizations. organizations. In 2002, General Bank increased its small business Cathay Bank also received a "high satisfactory" rating lending in LMI census tracts, extending approximately for retail banking services in the 2001 evaluation. Examin- 35 percent of its small business loans to businesses in LMI ers reported that its banking services, business hours, and census tracts. Since the 2001 evaluation, General Bank alternative delivery systems in its assessment areas were also originated 59 community development loans totaling very good and were accessible to all portions of the bank's approximately $20 million and entered into housing-related community, including LMI areas and individuals. Examin- investments totaling approximately $5 million. ers noted that the bank had staff that was fluent in sev- General Bank received a "high satisfactory" rating for eral languages, including Spanish, Cantonese, Mandarin, retail banking services in the 2001 evaluation. Examiners Taiwanese, and Vietnamese.13 reported that banking services at General Bank were accessible to essentially all portions of its assessment areas, and D. General Bank's CRA Performance Record that branch locations and hours were generally convenient to most portions of its overall assessment areas. Examiners As noted above, General Bank received a "satisfactory" also noted the bank's alternative delivery systems included rating at its most recent CRA performance evaluation, and ATMs and 24-hour Internet and telephone banking.14 examiners rated General Bank "high satisfactory" under Examiners found that General Bank provided a high level the lending test for the evaluation period January 1, 1999, of community development services, such as sponsoring through September 30, 2001. Examiners concluded the a minority business-financing workshop to assist start-up bank's lending levels reflected an excellent responsiveness businesses in LMI areas and organizing an annual charity to the credit needs of its assessment areas and commended event designed to benefit a low-income housing service, the bank for extending more than 90 percent of its loans in homeless shelter, and community service organization. these areas. Examiners noted that General Bank was primarily a commercial lender serving the credit needs of small- E. HMDA to medium-sized businesses, originated consumer loans on an accommodation basis, and no longer reported HMDA The Board has carefully considered Cathay's lending data. Examiners also noted that General Bank had a good record in light of the public comments on the bank's geographic distribution of loans in its assessment areas. HMDA data. In considering this proposal, the Board has During the evaluation period, the bank made approxi- reviewed publicly available HMDA data for 2001 and mately 33 percent of its small business loans by number 2002 for Cathay Bank and lenders that operate in the and 31 percent by dollar volume to businesses in LMI bank's assessment areas. census tracts. Examiners considered these levels to com- The Board is concerned when the record of an institution pare favorably with the aggregate levels for small business indicates disparities in lending and believes that all banks lenders in the assessment areas. are obligated to ensure that their lending practices are Examiners found that General Bank made a relatively based on criteria that ensure not only safe and sound large amount of community development loans, totaling lending, but also equal access to credit by creditworthy $48.2 million. Most of these loans funded the construction applicants regardless of their race or income level. The and renovation of affordable single and multifamily hous- Board recognizes, however, that HMDA data alone provide ing. Examiners noted General Bank's use of flexible lend- an incomplete measure of an institution's lending in its ing practices to small business borrowers in its assessment community because these data cover only a few categories area, including the origination of 72 SBA loans totaling of housing-related lending. HMDA data, moreover, proapproximately $19 million during the evaluation period. vide only limited information about covered loans.15 General Bank received a "high satisfactory" rating for HMDA data, therefore, have limitations that make them an its investment activities at the 2001 evaluation. Examiners inadequate basis, absent other information, for concluding that an institution has not assisted adequately in meeting its characterized General Bank's level of qualified community community's credit needs or has engaged in illegal lending development investments as significant, noting that the discrimination. bank was principally a commercial lender, but that it had made most of its community development investments in The Board notes that Cathay Bank's primary focus is affordable housing-related activities throughout its Califor- providing business credit to small- and medium-sized businia assessment areas. The bank entered into 27 qualified 14. The telephone banking service is available in English, Spanish, investments from July 1999 through December 2001, totaland Mandarin. ing approximately $19.3 million, that examiners found 15. The data, for example, do not account for the possibility that an responsive to the needs identified in its California assess- institution's outreach efforts may attract a larger proportion of marginment areas. Examiners also noted that General Bank made ally qualified applicants than other institutions attract and do not provide a basis for an independent assessment of whether an applicant 13. General Bank and Cathay Bank have employees of different who was denied credit was, in fact, creditworthy. Credit history racial and ethnic backgrounds, and after the merger, Cathay Bank's problems and excessive debt levels relative to income (reasons most business plan would continue to support hiring candidates able to frequently cited for a credit denial) are not available from HMDA provide multilingual services. data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 Federal Reserve Bulletin • November 2003 nesses, which is not subject to the same reporting require- conclusion, the Board has considered all the facts of record ments that mortgage loans are under HMDA. Cathay Bank in light of the factors that it is required to consider under originates a limited number of HMDA loans, many of the BHC Act and other applicable statutes. The Board's which are to accommodate business customers.16 Neither approval is specifically conditioned on compliance by the HMDA data nor on-site evaluations of compliance by Cathay with all the representations and commitments made Cathay Bank with fair lending laws indicate that Cathay in connection with the application and the receipt of all Bank has excluded any segment of the population or geo- other regulatory approvals. These representations and comgraphic areas on a prohibited basis. The record also indi- mitments are deemed to be conditions imposed in writing cates that Cathay has taken a number of affirmative steps to by the Board in connection with its findings and decision attract customers other than Asian Americans. For exam- and, as such, may be enforced in proceedings under appliple, Cathay Bank has increased its lending to African cable law. Americans by purchasing mortgage loans from an African- The transaction shall not be consummated before the American-owned bank. fifteenth calendar day after the effective date of this order, The Board also has considered the HMDA data in light and the proposal may not be consummated later than three of Cathay Bank's overall performance under the CRA. As months after the effective date of this order, unless such noted above, Cathay has a number of programs, consistent period is extended for good cause by the Board or by the with its strategy of serving small businesses, that are Federal Reserve Bank of San Francisco, acting pursuant to designed to help serve all segments of LMI areas in its delegated authority. assessment areas. The Board believes that, when viewed in By order of the Board of Governors, effective Septemlight of the entire record, the HMDA data indicate that the ber 15, 2003. bank's record of performance in helping to serve the credit needs of its community is consistent with approval of the Voting for this action: Chairman Greenspan, Vice Chairman Ferguproposal. son, and Governors Gramlich, Bies, Olson, Bernanke, and Kohn. ROBERT DEV. FRIERSON F. Conclusion on Convenience and Needs Deputy Secretary of the Board Considerations In reviewing the proposal's effect on the convenience and needs of the communities to be served by the combined Appendix organization, the Board has carefully considered the entire record, including the public comments received, informa- Banking Markets in which Cathay and GBC Directly tion submitted by Cathay, reports of examinations of the Compete CRA performance of Cathay Bank and General Bank, and confidential supervisory information from the FDIC. Based Los Angeles. The Los Angeles banking market is defined on all the facts of record and for the reasons discussed as the Los Angeles Ranally Metro Area ("RMA") and the above, the Board concludes that considerations relating to towns of Acton and Rosamond. Cathay operates the the convenience and needs factor, including the CRA per- 15th largest depository institution in the market, controlformance records of the relevant depository institutions, ling deposits of approximately $1.8 billion, representing are consistent with approval. approximately 1 percent of market deposits. GBC operates the 18th largest depository institution in the market, con- Conclusion trolling deposits of approximately $1.6 billion, represent- Based on the foregoing and in light of all the facts of the community, neither the CRA nor the CRA regulations of the record, the Board has determined that the application federal financial supervisory agencies require depository institutions should be, and hereby is, approved.17 In reaching this to enter into agreements with any organization, and the presence or absence of a written agreement between a bank and community 16. The Board has previously recognized that banks help serve the groups does not influence the Board's evaluation of the CRA perforbanking needs of communities by making a variety of products and mance of a bank. See, e.g., Fifth Third Bancorp, 80 Federal Reserve services available, and that the CRA does not require an institution to Bulletin 838 (1994). provide any specific type of products and services, such as mortgages, The Board has accumulated a significant record in this case, includin its assessment area. See, e.g., Firstar Corporation, 87 Federal ing reports of examination, supervisory information, public reports Reserve Bulletin 236 (2001). and information, and considerable public comment. In the Board's 17. Protestants requested that the Board extend the comment period view, commenters have had ample opportunity to submit their views on the proposal to allow them additional time to negotiate a CRA and, in fact, they have provided written submissions that have been commitment with the bank. The Board previously has concluded that considered carefully by the Board in acting on the proposal. Morethe CRA requires it to review an insured depository institution's over, the BHC Act and Regulation Y require the Board to act on actual record of performance under the CRA without reliance on plans proposals submitted under those provisions within certain time or commitments for future action. See, e.g., Totalbank Corp. of periods. 12 U.S.C. § 1842(b); 12 C.F.R. 225.15(d). Based on a review Florida, 81 Federal Reserve Bulletin 876 (1995). The Board also has of all the facts of record, the Board has concluded that the record in noted that, although communication by depository institutions with this case is sufficient to warrant Board action at this time and that an community groups provides a valuable method of assessing and extension of the comment period is not warranted. Accordingly, the determining how an institution may best address the credit needs of requests for an extension of the comment period are denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 473 ing less than 1 percent of market deposits. On consumma- Bautista. Cathay operates the 31st largest depository instition of the proposal, Cathay would operate the 10th largest tution in the market, controlling deposits of approximately depository institution in the market, controlling deposits of $263 million, representing less than 1 percent of market approximately $3.4 billion, representing approximately deposits. GBC operates the 32nd largest depository institu- 1.9 percent of market deposits. The HHI would increase tion in the market, controlling deposits of approximately 2 points to 987. $257 million, representing less than 1 percent of market deposits. On consummation of the proposal, Cathay would San Francisco-Oakland-San Jose. The San Francisco- operate the 22nd largest depository institution in the mar- Oakland-San Jose banking market is defined as the ket, controlling deposits of approximately $520 million, San Francisco-Oakland-San Jose RMA and the towns of representing less than 1 percent of market deposits. The Hollister, Pescadero, Point Reyes Station, and San Juan HHI would remain unchanged at 1457. 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 BancFirst Corporation, Lincoln National Bancorporation, Inc., Kansas City September 23, 2003 Oklahoma City, Oklahoma Oklahoma City, Oklahoma Lincoln National Bank, Oklahoma City, Oklahoma BCAC, Inc., Ban terra Corp., St. Louis August 28, 2003 Rosiclare, Illinois Eldorado, Illinois The Colonial BancGroup, Inc., Sarasota Bancorporation, Inc., Atlanta September 17, 2003 Montgomery, Alabama Sarasota, Florida Community Guaranty Corporation, Community Guaranty Savings Bank, Boston September 12, 2003 Plymouth, New Hampshire Plymouth, New Hampshire East Penn Financial Corporation, Berkshire Bank, Philadelphia September 8, 2003 Emmaus, Pennsylvania Wyomissing, Pennsylvania Freedom Bancshares, Inc., Freedom Bank of Georgia, Atlanta September 22, 2003 Commerce, Georgia Commerce, Georgia InfiCorp Holdings, Inc., InfiBank, N.A., Kansas City September 4, 2003 Atlanta, Georgia Atlanta, Georgia KSB Bancorp, Inc., Kaplan State Bank, Atlanta September 5, 2003 Kaplan, Louisiana Kaplan, Louisiana Liberty Shares, Inc., Cumberland National Bank, Atlanta September 2, 2003 Hinesville, Georgia St. Marys, Georgia Mount Hope Bankshares, Inc., Bank of Mount Hope, Inc., Richmond September 4, 2003 Mount Hope, West Virginia Mount Hope, West Virginia New Century Bancorp, Inc., New Century Bank, Richmond September 11, 2003 Dunn, North Carolina Dunn, North Carolina New City Bancorp, Inc., New City Bank, Chicago September 12, 2003 Chicago, Illinois Chicago, Illinois North American Bancshares, Inc., Pioneer Bankshares, Inc., Dallas September 9, 2003 Sherman, Texas Fredericksburg, Texas Pioneer II Bankshares, Inc., Dover, Delaware Pioneer National Bank, Fredericksburg, Texas Northwest Equity Corporation, 1st Equity Bank Northwest, Chicago September 8, 2003 Buffalo Grove, Illinois Buffalo Grove, Illinois Page Bancshares, Inc., Griffin Bancshares, Inc., Kansas City September 4, 2003 Liberty, Missouri Cameron, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 Federal Reserve Bulletin • November 2003 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Prosperity Bancshares, Inc., MainBancorp, Inc., Dallas September 23, 2003 Houston, Texas Austin, Texas Main Bank, National Association, Dallas, Texas Quality Bankshares, Inc., Page Bank Holding Company, Minneapolis September 9, 2003 Fingal, North Dakota Page, North Dakota Page State Bank, Page, North Dakota Rio Financial Services, Inc., Rio Bank, Dallas August 21, 2003 McAllen, Texas McAllen, Texas Rio Delaware Corporation, Wilmington, Delaware Total Bancshares Corp., TotalBank, Atlanta August 28, 2003 Miami, Florida Miami, Florida Valley Commerce Bancorp, Valley Commerce Bank, San Francisco August 27, 2003 Phoenix, Arizona Phoenix, Arizona Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Farmers & Merchants Financial Eau Claire Financial Services, Inc. Minneapolis September 9, 2003 Services, Inc., St. Paul, Minnesota St. Paul, Minnesota American Bank, Eau Claire, Wisconsin American Bank Lake City, Lake City, Minnesota Kankakee Bancorp, Inc., Aviston Financial Corporation, Chicago September 18, 2003 Kankakee, Illinois Aviston, Illinois State Bank of Aviston, Aviston, Illinois Kankakee Federal Savings Bank, F.S.B., Kankakee, Illinois KFS Service Corp., Kankakee, Illinois APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Applicant(s) Bank(s) Reserve Bank Effective Date Bay lake Bank, M&I Marshall & Ilsley Bank, Chicago September 22,2003 Sturgeon Bank, Wisconsin Milwaukee, Wisconsin The Ravenna Bank, Pleasanton State Bank, Kansas City September 17, 2003 Ravenna, Nebraska Pleasanton, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 475 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Community Bank & Trust v. United States, No. 01-571C Federal Reserve Banks in which the Board of Governors is (Ct. Fed. CI., filed October 3, 2001). Action challenging not named a party. on constitutional grounds the failure to pay interest on reserve accounts held at Federal Reserve Banks. Tavera v. Von Nothaus, et al, No. 03-763 (D. Oregon, filed Artis v. Greenspan, No. 01-CV-0400 (EGS) (D.D.C., com- June 5, 2003). Civil rights action for violation of rights plaint filed February 22, 2001). Employment discriminain connection with the plaintiff's prosecution for passing tion action. On August 15, 2001, the district court con- "Liberty dollar coins" as lawful money. solidated the action with Artis v. Greenspan, No. 99-CV- Carter v. Greenspan, No. 03-CV-1026 (D.D.C., filed 2073 (EGS) (D.D.C., filed August 3, 1999), also an May 9, 2003). Employment discrimination action. employment discrimination action. Apjfel v. Board of Governors, No. 03-343 (S. D. Texas, Fraternal Order of Police v. Board of Governors, filed May 20, 2003). Freedom of Information Act case. No. 1:98-CV-03116 (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. 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. 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A1 Financial and Business Statistics A3 GUIDE TO TABLES Federal Finance A25 Federal debt subject to statutory limitation DOMESTIC FINANCIAL STATISTICS A25 Gross public debt of U.S. Treasury— Types and ownership Money Stock and Bank Credit A26 U.S. government securities A4 Reserves and money stock measures dealers—Transactions A5 Reserves of depository institutions and Reserve Bank A27 U.S. government securities dealers— credit Positions and financing 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 A3 2 Mortgage markets—New homes A12 Aggregate reserves of depository institutions A3 3 Mortgage debt outstanding and monetary base A13 Money stock measures Consumer Credit A34 Total outstanding Commercial Banking Institutions— A34 Terms Assets and Liabilities A15 All commercial banks in the United States Flow of Funds A16 Domestically chartered commercial banks A35 Funds raised in U.S. credit markets A17 Large domestically chartered commercial banks A37 Summary of financial transactions A19 Small domestically chartered commercial banks 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

31 Federal Reserve Bulletin • November 2003 INTERNATIONAL STATISTICS Interest and Exchange Rates A56 Foreign exchange rates Summary Statistics A44 U.S. international transactions A57 GUIDE TO SPECIAL TABLES AND A44 U.S. reserve assets STATISTICAL RELEASES A45 Foreign official assets held at Federal Reserve Banks A70 INDEX TO STATISTICAL TABLES A45 Selected U.S. liabilities to foreign official institutions All BOARD OF GOVERNORS AND STAFF Reported by Banks in the United States A74 FEDERAL OPEN MARKET COMMITTEE AND A45 Liabilities to, and claims on, foreigners A46 Liabilities to foreigners STAFF; ADVISORY COUNCILS A48 Banks' own claims on foreigners A49 Banks' own and domestic customers' claims on A76 FEDERAL RESERVE BOARD PUBLICATIONS foreigners A78 MAPS OF THE FEDERAL RESERVE SYSTEM Reported by Nonbanking Business A80 FEDERAL RESERVE BANKS, BRANCHES, Enterprises in the United States AND OFFICES A50 Liabilities to unaffiliated foreigners A52 Claims on unaffiliated foreigners Securities Holdings and Transactions A54 Foreign transactions in securities A55 Marketable U.S. Treasury bonds and notes—Foreign transactions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A4 Domestic Nonfinancial Statistics • November 2003 1.10 RESERVES AND MONEY STOCK MEASURES Percent annual rate of change, seasonally adjusted1 2002 2003 2003 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q3 Q4 QI Q2 Apr. May June July Aug. Reserves of depository institutions1 1 Total -2.2 1.0 11.3 6.7 -4.9 5.3 53.0 31.7 64.7 2 Required -4.9 -1.4 11.4 8.1 -1.9 2.8 48.0 31.1' 14.8 3 Nonborrowed -3.7 1.9 12.8 6.2 -5.1 4.5 49.9 32.7 59.4 4 Monetary base3 6.9 5.1 7.6 5.9 5.3 5.1 3.4 .6 9.7 Concepts of money* 5 Ml 3.0 4.9 7.5 9.2 .4 20.3 13.3 5.3 7.0 6 M2 8.8 7.0 6.4 8.4 4.6 17.8 9.5 9.6 7.9 7 M3 7.2 7.8 5.6 6.3' 2.5' 12.9r 9.1' 22.0 3.2 Nontransaction components 8 In M25 10.4 7.6 6.0 8.2 5.8 17.1 8.5 10.8 8.1 9 In M3 only6 3.6 9.5 3.9 1.8r -2.2r 2.2r 8.2' 49.4' -7.0 Time and savings deposits Commercial banks 10 Savings, including MMDAs 20.1 16.8 13.6 16.5 17.7 23.5 21.5 28.1 18.9 11 Small time7 ^1.0 -7.4 -7.1 -8.6 -8.5 -10.2 -10.9 -19.1 -16.8 12 Large time8-9 .5 -5.6 -4.5 2.1 -1.0 7.0 -6.6 153.1' -2.5 Thrift institutions 13 Savings, including MMDAs 20.6 20.0 21.9 24.6 19.1 40.5 13.2 21.4 22.2 14 Small time7 -10.5 -6.0 -6.6 -9.0 -7.3 -11.8 -13.2 -14.6 -16.8 15 Large time8 -2.6 11.9 8.9 -2.1 2.0 -10.2 11.3 34.6 15.8 Money market mutual funds 16 Retail .9 -6.3 -10.0 -8.2 -20.1 9.1 -7.9 -15.0 -9.0 17 Institution-only -.7 2.1 -4.9 -14.7 -22.4 -20.1 20.3 42.1 -19.6 Repurchase agreements and eurodollars 18 Repurchase agreements10 28.7 47.7 31.4 27.8 23.8 19.3 6.3 -57.9 -8.5 19 Eurodollars10 -3.5 28.9 19.2 32.1R 37. lr 62.3r -1.8' 29.2' 29.4 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- time deposits, and retail money fund balances, each seasonally adjusted separately, and ing during preceding month or quarter. adding this result to seasonally adjusted Ml. 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with regula- M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2) tory changes in reserve requirements (See also table 1.20.) balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom component of the money stock, plus (3) (for all quarterly reporters on the "Report of and Canada. Excludes amounts held by depository institutions, the U.S. government, money Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference by summing large time deposits, institutional money fund balances, RP liabilities, and between current vault cash and the amount applied to satisfy current reserve requirements. eurodollars, each seasonally adjusted separately, and adding this result to seasonally adjusted 4. Composition of the money stock measures is as follows: M2. Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all money fund balances, each seasonally adjusted separately. commercial banks other than those owed to depository institutions, the U.S. government, and 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities foreign banks and official institutions, less cash items in the process of collection and Federal (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of term) of U.S. addressees, each seasonally adjusted separately. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, 7. Small time deposits—including retail RPs—are those issued in amounts of less than credit union share draft accounts, and demand deposits at thrift institutions. Seasonally $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions adjusted Ml is computed by summing currency, travelers checks, demand deposits, and are subtracted from small time deposits. OCDs, each seasonally adjusted separately. 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time booked at international banking facilities. deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail 9. Large time deposits at commercial banks less those held by money market funds, money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh depository institutions, the U.S. government, and foreign banks and official institutions. balances at depository institutions and money market funds. 10. Includes both overnight and term. Seasonally adjusted M2 is calculated by summing savings deposits, small-denomination Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.11 RESERVE BALANCES OF DEPOSITORY INSTITUTIONS1 Millions of dollars Average of Average of daily figures for week ending on date indicated daily figures Factor 2003 2003 June July Aug. July 16 July 23 July 30 Aug. 6 Aug. 13 Aug. 20 Aug. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 715,547 716,576 718,212 715,469 716,706 713,382 715,976 711,824 726,539 715,403 2 Securities held outright 651,774 652,630 653,374 652,538 652,764 652,843 652,996 653,072 653,446 653,644 U.S. Treasury2 651,764 652,620 653,364 652,528 652,754 652,833 652,986 653,062 653,436 653,634 4 Bills3 238,596 239,480 240,227 239,385 239,616 239,701 239,855 239,927 240,298 240,492 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 1,500 1,473 1,470 1,475 1,470 1,465 1,464 1,467 1,471 1,474 8 Federal agency3 10 10 10 10 10 10 10 10 10 10 9 Repurchase agreements5 25,074 24,153 25,774 22,893 24,250 20,857 22,500 17,679 34,071 24,607 10 Loans to depository institutions 174 114 330 114 119 126 154 145 937 157 11 Primary credit 100 5 168 6 4 1 21 7 719 1 12 Secondary credit 0 0 15 1 0 0 0 0 66 0 13 Seasonal credit 74 109 147 107 115 125 133 138 152 156 14 Float -166 147 346 452 42 -477 470 595 842 160 1 5 Other Federal Reserve assets 38,692 39,532 38,387 39,472 39,531 40,033 39,856 40,334 37,243 36,834 16 Gold stock 11,044 11,044 11,043 11,044 11,044 11,044 11,043 11,043 11,043 11,043 17 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2.200 2,200 2,200 18 Treasury currency outstanding 35,022 35,104R 35,171 35,097' 35,113' 35,129' 35,145 35,159 35,173 35,187 ABSORBING RESERVE FUNDS 19 Currency in circulation 691,893 694,590' 695,339 694,526' 692,719' 692,566' 694,304 694,979 694,709 694,738 20 Reverse repurchase agreements6 22,038 20,180 19,541 20,067 19,677 19,916 18,946 19,563 20,106 19,223 21 Foreign official and international accounts 21,530 20,180 19,541 20,067 19,677 19,916 18,946 19,563 20,106 19,223 22 Dealers 508 0 0 0 0 0 0 0 0 0 23 Treasury cash holdings 375 334 354 327 330 343 365 369 355 338 24 Deposits with Federal Reserve Banks, other than reserve balances 18,169 17,943 17,322 17,957 18,098 18,005 17,399 17,205 17,518 17,612 25 U.S. Treasury, general account 6.747 6,213 5.599 6,479 6,067 6,205 5,639 5,611 5,644 5,974 26 Foreign official 157 224 151 109 124 259 177 149 238 86 27 Service-related 11,028 11,192 11,280 11,062 11,401 11,290 11,288 11,157 11,331 11,246 28 Required clearing balances 10,832 10,864 10,909 10,863 10,863 10,896 10,898 10,912 10,912 10,910 29 Adjustments to compensate for float 196 327 372 199 538 394 390 245 419 337 3(1 Other 237 315 292 307 506 251 294 287 304 306 31 Other liabilities and capital 20,170 19,956 20,112 19,878 20,000 20,228 19,850 20,190 20,304 19,997 32 Reserve balances with Federal Reserve Banks7 .... 11,168 11,921 13,958 11,054 14,238 10,696 13,500 7,919 21,963 11,924 End-of-month figures Wednesday figures June July Aug. July 16 July 23 July 30 Aug. 6 Aug. 13 Aug. 20 Aug. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 722,933 721,467 726,172 716,149 724,764 718,066 711,908 715,472 730,576 718,942 2 Securities held outright 652,128 652,913 653,909 652,700 652,837 652,866 653,034 653,288 653,526 653,681 3 U.S. Treasury2 652,118 652,903 653,899 652,690 652,827 652,856 653,024 653,278 653,516 653,671 4 Bills3 238,965 239,773 240,754 239,550 239,692 239,726 239,892 240,142 240,376 240,528 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 1,485 1,462 1,478 1,473 1,468 1,463 1,465 1,469 1,472 1,476 8 Federal agency3 10 10 10 10 10 10 10 10 10 10 9 Repurchase agreements5 31,750 29,000 35,000 24,000 32,000 26,250 18,250 19,000 39,500 29,000 10 Loans to depository institutions 768 145 158 121 118 141 143 164 262 161 11 Primary credit 686 11 0 8 1 5 3 16 105 2 12 Secondary credit 0 0 0 0 0 0 0 0 0 0 13 Seasonal credit 82 133 158 113 118 137 140 148 157 159 14 Float -525 -195 -265 97 -32 -1,187 429 2,583 499 -458 15 Other Federal Reserve assets 38,812 39,605 37,371 39,230 39,841 39,996 40,053 40,438 36,789 36,558 16 Gold stock 11,044 11,043 11,043 11,044 11,044 11,043 11,043 11,043 11,043 11,043 17 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 18 Treasury currency outstanding 35,065 35,145R 35,201 35,097' 35,113' 35,129' 35,145 35,159 35,173 35,187 ABSORBING RESERVE FUNDS 19 Currency in circulation 693,315 694,073R 700,102 694,752' 693,632' 694,586' 696,134 695,930 695,668 697,386 20 Reverse repurchase agreements6 22,080 19,827 20,190 20,346 19,672 19,316 19,062 19,138 20,344 19,119 21 Foreign official and international accounts 22,080 19,827 20,190 20,346 19,672 19,316 19,062 19,138 20,344 19,119 22 Dealers 0 0 0 0 0 0 0 0 0 0 23 Treasury cash holdings 365 364 335 329 339 364 371 358 338 335 24 Deposits with Federal Reserve Banks, other than reserve balances 19,222 18,219 16,350 17,233 18,014 18,561 18,135 17,683 18,246 17,050 25 U.S. Treasury, general account 6,939 6,356 4,589 5,724 6,058 6,174 6,400 5,720 6,533 5.441 26 Foreign official 898 318 81 128 134 852 141 525 81 81 27 Service-related 11,136 ll,288R 11,455 11,062 11,400 11,290 11,288 11,157 11,331 11,246 28 Required clearing balances 10,838 10,898 10,912 10,863 10,862 10,896 10,898 10,912 10,912 10,910 29 Adjustments to compensate for float 297 390 543 199 538 394 390 245 419 337 30 Other 249 258 225 318 423 246 307 281 301 282 31 Other liabilities and capital 19,898 19,674 20,251 19,649 20,085 19,745 19,872 20,043 19,884 19,912 32 Reserve balances with Federal Reserve Banks7 .... 16,364 17,696' 17,387 12,180 21,380 13,866 6,722 10,722 24,511 13,570 1. Amounts of vault cash held as reserves are shown in table 1.12, line 2. 5. Cash value of agreements, which are fully collateralized by U.S. Treasury and federal 2. Includes securities lent to dealers, which are fully collateralized by other U.S. Treasury agency securities. securities. 6. Cash value of agreements, which are fully collateralized by U.S. Treasury securities. 3. Face value of the securities. 7. Excludes required clearing balances and adjustments to compensate for float. 4. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • November 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. Feb. Mar. Apr. May June July Aug. 1 Reserve balances with Reserve Banks2 7,022 9.053 9,926 9,860 9,840 10,598 11,405 11,297 12,157r 14,107 2 Total vault cash3 45,246 43,918 43,368 45,942 43,088 41,991 41,636 41,961 42,657 43,034 3 Applied vault cash4 31,451 32,024 30,347 32,079 30,757 30,574 30,395 30,574 31,437r 31,989 4 Surplus vault cash5 13,795 11,894 13,021 13,863 12,331 11,417 11,241 11,386 11,220 11,046 5 Total reserves6 38,473 41,077 40,274 41,939 40,597 41,172 41,801 41,872 43,594r 46,096 6 Required reserves 37,046 39,428 38,264 39,973 38,961 39,640 40,182 40,018 41,671' 42,322 7 Excess reserve balances at Reserve Banks7 1,427 1,649 2,009 1,965 1,636 1,532 1,619 1,854 1,924r 3,773 8 Total borrowing at Reserve Banks 210 67 80 25 22 29 55 161 130 329 9 Primary 21 14 8 3 87 21 168 10 Secondary 0 0 0 0 0 0 15 11 Seasonal 111 33 45 5 8 21 53 74 110 146 12 Adjustment 99 34 35 Biweekly averages of daily figures for two-week periods ending on dates indicated 2003 Apr. 30 May 14 May 28 June 11 June 25 July 9 July 23 Aug. 6r Aug. 20 Sept. 3 1 Reserve balances with Reserve Banks2 11,852 9,772 13,116 11,050 11,437 11,453 12,644 12,099 14,940 14,142 2 Total vault cash3 42,024 41,432 41,968 41,040 42,303 43,030 41,789 43,758 43,490 42,060 3 Applied vault cash4 31,136 29,696 31,211 29,854 30,798 31,534 30,545 32,890 31,553 32,052 4 Surplus vault cash5 10,889 11,736 10,758 11,186 11,505 11,497 11,244 10,869 11,937 10,007 5 Total reserves6 42,987 39,468 44,326 40,904 42,235 42,986 43,189 44,988 46,493 46,194 6 Required reserves 41,436 37,924 42,712 38,909 40,631 40,744 41,601 42,836 40,806 43,973 7 Excess reserve balances at Reserve Banks7 1,551 1,543 1,614 1,994 1,604 2,242 1,588 2,152 5,687 2,221 8 Total borrowing at Reserve Banks 29 51 58 69 241 144 117 140 541 162 9 Primary 2 3 2 7 163 54 5 11 363 5 10 Secondary 0 0 0 0 0 0 1 0 33 0 11 Seasonal 27 48 56 63 78 90 111 129 145 157 12 Adjustment 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 4. All vault cash held during the lagged computation period by "bound" institutions (that ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. is, those whose required reserves exceed their vault cash) plus the amount of vault cash 2. Excludes required clearing balances and adjustments to compensate for float and applied during the maintenance period by "nonbound" institutions (that is, those whose vault includes other off-balance-sheet "as-of" adjustments. cash exceeds their required reserves) to satisfy current reserve requirements. 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by 5. Total vault cash (line 2) less applied vault cash (line 3). those banks and thrift institutions that are not exempt from reserve requirements. Dates 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash (line 3). refer to the maintenance periods in which the vault cash can be used to satisfy reserve 7. Total reserves (line 5) less required reserves (line 6). requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Primary credit1 Secondary credit2 Seasonal credit- Federal Reserve Bank On On On 10/17/03 10/17/03 10/17/03 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 October 17, 2003 2.00 2.00 Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range(or F.R. Bank Range (or F.R. Bank level)—All of Effective date level)—All of level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Dec. 31, 1995 5.25 5.25 2000—Feb. 2 5.00-5.25 5.25 2001—June 27 . . . 3.25-3.50 3.25 4 5.25 5.25 29 ... 3.25 3.25 1996—Jan. 31 ... 5.00-5.25 5.00 Mar. 21 5.25-5.50 5.50 Aug. 21 . . . 3.00-3.25 3.00 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 Apr. 2 1 1 8 4.0 4 0 . - 5 4 0 . 50 4 4 . . 5 0 0 0 2002—Nov. 61 .. .. .. 0.7 0 5 . - 7 1 5 . 25 0 0 . . 7 7 5 5 20 4.00 4.00 2001—May 15 3.50-4.00 3.50 In effect Jan. 8, 2003 0.75 0.75 17 3.50 3.50 (end of program) 1. Available for very short terms as a backup source of liquidity to depository institutions takes into account rates charged by market sources of funds and ordinarily is reestablished on that are in generally sound financial condition in the judgment of the lending Federal Reserve the first business day of each two-week reserve maintenance period. Bank. 4. Was available until January 8, 2003, to help depository institutions meet temporary 2. Available in appropriate circumstances to depository institutions that do not qualify for needs for funds that could not be met through reasonable alternative sources. For earlier data, primary credit. see the following publications of the Board of Governors: Banking and Monetary Statistics, 3. Available to help relatively small depository institutions meet regular seasonal needs for 1914-1941, and 1941-1970; and the Statistical Digest, 1970-1979, 1980-1989, and funds that arise from a clear pattern of intrayearly movements in their deposits and loans and 1990-1995. See also the Board's Statistics: Releases and Historical Data web pages that cannot be met through special industry lenders. The discount rate on seasonal credit (http://www.federalreserve.gov/releases/H15/data.htm). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • November 2003 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement Type of deposit Net transaction accounts2 1 $0 million-$6.6 million3 12/25/03 2 More than $6.6 million-$45.4 million 12/25/03 3 More than $45.4 million5 12/25/03 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 25, 2003, 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 15, 2004, for institutions that report quarterly, the amount was increased foreign banks, and Edge Act corporations. from $42.1 million to $45.4 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 25. 2003, for depository institutions that report weekly, and with the period beginning January 15, 2004, for institutions that report quarterly, the exemption was raised from $6.0 million to $6.6 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 2003 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 22000000 22000011 22000022 Jan. Feb. Mar. Apr. May June July U.S. TREASURY SECURITIES2 Outright transactions Treasury bills 1 Gross purchases 8,676 15,503 21,421 0 4,161 1,863 3,543 1,684 1,032 808 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 477,904 542,736 657,931 71,075 53,860 47,424 51,834 76,354 60,706 68,544 4 For new bills 477,904 542,736 657,931 71,075 53,860 47,424 51,834 76,354 60,706 68,544 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 0 478 1,318 1,422 786 0 0 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 62,025 70,336 89,108 6,216 3,214 8,334 8,333 7,228 7,531 6,662 9 Exchanges -54,656 -72,004 -92,075 -6,834 -13,313 -8,211 -7,293 -6,999 -6,700 -4,996 10 Redemptions 3,779 16,802 0 0 0 0 0 0 0 0 One to five years 11 Gross purchases 14,482 22,814 12,748 0 2,127 710 733 1,057 0 0 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -52,068 -45,211 -73,093 -6,216 2,160 -8,334 -8,333 -1,513 -7,531 -6,662 14 Exchanges 46,177 64,519 88,276 6,834 11,817 8,211 7,293 6,747 6,700 4,996 Five to ten years 15 Gross purchases 5,871 6,003 5,074 0 769 522 0 234 0 0 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -6,801 -21,063 -11,588 0 -3,877 0 0 -5,463 0 0 18 Exchanges 6,585 6,063 3,800 0 1,497 0 0 252 0 0 More than ten years 19 Gross purchases 5,833 8,531 2,280 0 0 50 0 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 -1,497 0 0 -252 0 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 0 7,534 4,463 5,699 3,761 1,032 808 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 0 7,534 4,463 5,699 3,761 1,032 808 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 1,143,126 135,749 121,896 95,001 112,251 124,741 90,500 145,750 32 Gross sales 987,501 1,490,838 1,153,876 150,499 119,746 90,151 106,500 132,002 88,990 148,500 Matched sale-purchase agreements 33 Gross purchases 4,415,905 4,722,667 4,981,624 0 0 0 0 0 0 0 34 Gross sales 4,397,835 4,724,743 4,958,437 0 0 0 0 0 0 0 Reverse repurchase agreements4 35 Gross purchases 0 0 231,272 392,530 343,748 388,069 451,149 441,555 456,652 445,346 36 Gross sales 0 0 252,363 389,810 343,395 389,469 452,545 443,025 456,447 443,093 37 Net change in temporary transactions -79,195 4,800 -8,653 -12,029 2 2,200 2,104 -8,731 -6,535 -497 38 Total net change in System Open Market Account . . -63,877 46,295 45,589 -12,029 7,537 6,664 7,803 -4,971 -5,504 311 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 • November 2003 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 2003 2003 July 30 Aug. 6 Aug. 13 Aug. 20 Aug. 27 June July Aug. Consolidated condition statement ASSETS 1 Gold certificate account 11,039 11,039 11,039 11,039 11,039 11,040 11,039 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 869 870 888 897 887 942 878 881 4 Securities, repurchase agreements, and loans 679,257 671,427 672,451 693,288 682,842 684,646 682,057 689,066 5 Securities held outright 652,866 653,034 653.288 653,526 653,681 652,128 652,913 653,909 6 U.S. Treasury2 652,856 653,024 653,278 653,516 653,671 652,118 652,903 653,899 7 Bills3 239,726 239,892 240,142 240,376 240,528 238,965 239,773 240,754 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 1,463 1,465 1,469 1,472 1,476 1,485 1,462 1,478 11 Federal agency3 10 10 10 10 10 10 10 10 12 Repurchase agreements5 26,250 18,250 19.000 39,500 29,000 31,750 29,000 35,000 U Loans 141 143 164 262 161 768 145 158 14 Items in process of collection 7,843 9,337 9,284 7,556 7,586 2,330 6,558 5,997 15 Bank premises 1,586 1,586 1,587 1,590 1,590 1,580 1,586 1,590 16 38,377 38,431 38,805 35,154 35,389 37,195 38,004 35,729 17 Denominated in foreign currencies6 17,707 17,717 17,770 17,646 17,511 17,849 17,598 17,654 18 All other7 20.670 20,714 21,035 17,509 17,878 19,346 20,406 18,075 19 Total assets 741,172 734,891 736,255 751,724 741,534 739,932 742,321 746,503 LIABILITIES 20 Federal Reserve notes, net of F.R. Bank holdings 660,686 662,226 662,014 661,727 663,418 659,552 660,167 666,113 21 Reverse repurchase agreements* 19,316 19,062 19,138 20,344 19,119 22,080 19,827 20,190 22 Deposits 33,151 25,188 27,215 42,103 31,731 35,806 35,972 33,793 23 Depository institutions 25,879 18,340 20,690 35,188 25,927 27,720 29,041 28,898 24 U.S. Treasury, general account 6.174 6,400 5,720 6,533 5,441 6,939 6,356 4,589 25 Foreign official 852 141 525 81 81 898 318 81 26 Other 246 307 281 301 282 249 258 225 27 Deferred availability cash items 8,275 8,543 7,844 7,667 7,355 2,596 6,681 6,155 28 Other liabilities and accrued dividends9 2,151 2,125 2,159 2,162 2,204 2,227 2,143 2,195 29 Total liabilities 723,578 717,144 718,370 734,003 723,825 722,262 724,789 728,446 CAPITAL ACCOUNTS 30 Capital paid in 8,719 8,721 8,724 8,725 8,748 8,657 8,719 8,750 31 Surplus 8.363 8,380 8,380 8,380 8,380 8,356 8,327 8,380 32 Other capital accounts 513 646 780 617 580 657 486 927 33 Total capital 17,594 17,747 17,884 17,722 17,708 17,670 17,532 18,057 MEMO 34 Marketable securities held in custody for foreign official and international accounts310 930,019 935,715 937,857 945,863 949,401 945,930 936,251 951,036 35 U.S. Treasury 746,813 753,009 751,156 759,937 761,587 760,406 754,101 765,022 36 Federal agency 183,207 182,707 186,701 185,925 187,814 185,524 182,150 186,013 37 Securities lent to dealers 2,534 4,784 2,689 2,196 2,346 4,950 2,390 2,631 Federal Reserve notes and collateral statement 38 Federal Reserve notes outstanding 774,095 775,502 777,982 779,566 780,878 766,845 774,672 780,991 39 Less: Notes held by F.R. Banks not subject to collateralization 108,713 108,511 111,177 113,140 112,697 102,691 109,856 110,234 40 Federal Reserve notes to be collateralized 665.381 666,991 666,805 666,426 668,181 664,155 664,816 670,757 41 Collateral held against Federal Reserve notes 665.381 666,991 666,805 666,426 668,181 664,155 664,816 670,757 42 Gold certificate account 11.039 11,039 11.039 11,039 11,039 11,040 11,039 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 pledged1' 652,142 652,217 653,145 653,187 654,942 650,915 651,577 657,518 45 Other eligible assets 0 1,534 420 0 0 0 0 0 MEMO 46 Total U.S. Treasury and agency securities'1 679,116 671,284 672,288 693,026 682,681 683,878 681,913 688,909 47 Less: face value of securities under reverse repurchase agreements12 19.321 19,067 19,142 20,349 19,124 22,086 19,831 20,198 48 U.S. Treasury and agency securities eligible to be pledged 659,795 652,217 653,145 672,677 663,558 661,792 662,081 668,711 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 30 Aug. 6 Aug. 13 Aug. 20 Aug. 27 June July Aug. 1 Total loans 141 143 164 262 161 768 145 158 2 Within 15 days 116 37 40 261 138 752 99 109 3 16 days to 90 days 25 106 123 1 23 16 45 48 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities' 652,856 653,024 653,278 653,516 653,671 652,118 652,903 653,899 6 Within 15 days 46,048 51,281 52,151 49,409 50,191 27,419 36,979 35,599 7 16 days to 90 days 141,180 137,369 136,584 135,851 135,304 153,840 134,047 138,773 8 91 days to 1 year 159,660 161,900 162,065 160,914 160,830 157,337 172,745 172,179 9 Over 1 year to 5 years 179,349 177,684 177,685 180,032 180,033 186,886 184,345 180,033 10 Over 5 years to 10 years 46,654 44,824 44,825 50,383 50,384 46,661 44,823 50,384 11 Over 10 years 79,965 79,966 79,967 76,928 76,929 79,974 79,965 76,930 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 26,250 18,250 19,000 39,500 29,000 31,750 29,000 35,000 20 Within 15 days 24,250 15.250 14,000 32,500 24,000 23,750 24,000 26,000 21 16 days to 90 days 2,000 3,000 5,000 7,000 5,000 8,000 5,000 9,000 22 Total reverse repurchase agreements2 19,316 19,062 19,138 20,344 19,119 22,080 19,827 20,190 23 Within 15 days 19,316 19,062 19,138 20,344 19,119 22,080 19,827 20,190 24 16 days to 90 days 0 0 0 0 0 0 0 0 Note. Components may not sum to totals because of rounding. 2. Cash value of agreements classified by remaining maturity of the agreements. 1. Includes the original face value of inflation-indexed securities and compensation that adjusts for the effect of inflation on the original face value of such securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • November 2003 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2003 IItteemm D 19 e 9 c 9 . 2 D 0 e 0 c 0 . 2 D 0 e 0 c 1 . 2 D 0 e 0 c 2 . Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS 1 Total reserves3 41.81 38.54 41.24 40.22 40.73 40.82 40.97 40.81 40.99 42.80 43.93 46.29 2 Nonborrowed reserves4 41.49 38.33 41.18 40.14 40.70 40.80 40.95 40.78 40.93 42.63 43.80 45.97 3 Required reserves 40.51 37.11 39.60 38.21 39.02 38.86 39.34 39.27 39.37 40.94 42.00' 42.52 4 Monetary base5 593.16 584.77 635.62 681.90 685.72 691.31 695.14 698.23 701.18 703.17 703.53 709.21 Not seasonally adjusted 5 Total reserves6 41.89 38.53 41.20 40.13 42.85 41.94 40.60 41.16 41.79 41.86 43.58 46.07 6 Nonborrowed reserves 41.57 38.32 41.13 40.05 42.83 41.91 40.57 41.14 41.73 41.70 43.44r 45.74 7 Required reserves7 40.59 37.10 39.55 38.12 41.15 39.97 38.96 39.63 40.17 40.00 41.65' 42.30 8 Monetary base8 600.72 590.06 639.91 686.23 688.33 690.25 693.91 697.83 701.58 703.33 705.80 709.18 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS' 9 Total reserves10 41.65 38.47 41.08 40.27 42.87 41.94 40.60 41.17 41.80 41.87 43.59' 46.10 10 Nonborrowed reserves 41.33 38.26 41.01 40.19 42.84 41.91 40.58 41.14 41.75 41.71 43.46' 45.77 11 Required reserves 40.36 37.05 39.43 38.26 41.16 39.97 38.96 39.64 40.18 40.02 41.67' 42.32 12 Monetary base" 608.02 596.98 648.74 697.15 699.25 701.04 705.04 709.10 712.76 714.36 717.01 720.49 13 Excess reserves12 1.30 1.43 1.65 2.01 1.71 1.97 1.64 1.53 1.62 1.85 1.92 3.77 14 Borrowings from the Federal Reserve .32 .21 .07 .08 .03 .03 .02 .03 .06 .16 .13 .33 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 (I) 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 Dec. Dec. Dec. Dec. May June July Aug. Seasonally adjusted Measures2 1 Ml 1,121.4 1,084.7 1.172.9 1,210.4 1,258.3 1,272.2 1,277.8 1,285.3 2 M2 4,649.7 4,931.5 5,444.6 5,791.8 5,996.2 6,043.6 6,092.1 6,132.2 3 M3 6,534.9 7,099.4 8,004.5 8,522.7 8,706. r 8,772.1' 8,932.9' 8,956.7 MI components 4 Currency' 517.7 531.5 581.9 627.3 645.8 646.5 646.2 649.2 Travelers checks4 8.3 8.0 7.8 7.5 7.5 7.9 8.2 8.0 6 Demand deposits5 352.1 306.9 326.1 297.1 315.4 322.5 322.5 321.9 7 Other checkable deposits6 243.4 238.2 257.2 278.5 289.6 295.3 300.9 306.2 Nontransaction components 8 In M27 3,528.3 3,846.8 4,271.7 4,581.4 4,737.9 4.771.4 4,814.3 4,846.9 9 In M3 only8 1,885.1 2,167.9 2,559.9 2,730.9 2,709.9' 2,728.5' 2,840.9' 2,824.4 Commercial banks 10 Savings deposits, including MMDAs 1,288.8 1,422.9 1,734.6 2,047.9 2,188.4 2.227.6 2,279.8 2,315.8 11 Small time deposits9 634.6 699.5 634.2 591.0 571.6 566.4 557.4 549.6 12 Large time deposits10-11 652.2 718.3 671.1 676.6 691.1 687.3 775.0' 773.4 Thrift institutions 13 Savings deposits, including MMDAs 452.0 454.3 572.4 714.5 793.3 802.0 816.3 831.4 14 Small time deposits9 319.5 344.8 339.1 302.2 291.7 288.5 285.0 281.0 15 Large time deposits10 91.9 103.0 114.9 117.3 116.9 118.0 121.4 123.0 Monex market mutual funds l(S Retail 833.4 925.4 991.5 925.9 892.8 886.9 875.8 869.2 17 Institution-only 634.8 788.8 1,190.3 1,234.5 1,124.8 1,143.8 1,183.9 1,164.6 Repurchase agreements and eurodollars 18 Repurchase agreements12 335.7 363.5 375.0 474.6 517.5 520.2 495.1 491.6 19 Eurodollars12 170.5 194.3 208.6 227.9 259.5' 259.1' 265.4' 271.9 Not seasonally adjusted Measures2 20 Ml 1,147.8 1,112.1 1,202.9 1,240.3 1,251.8 1,269.4 1,274.2 1,279.2 21 M2 4,676.8 4,966.9 5,487.6 5,841.1 5,961.6 6,012.6 6.058.1 6,111.5 22 M3 6,577.5 7,154.0 8,076.3 8,600.3 8,681.8' 8,741.1' 8.874.3' 8,906.7 MI components 23 Currency1 521.7 535.6 585.4 630.6 646.5 647.7 648.7 650.4 24 Travelers checks4 8.4 8.1 7.9 7.7 7.5 7.7 7.8 7.8 25 Demand deposits5 371.7 326.7 348.1 317.5 308.0 318.8 319.9 320.9 26 Other checkable deposits6 246.0 241.6 261.5 284.5 289.7 295.2 297.8 300.0 Nontransaction components 27 In Mi 3,529.0 3,854.8 4,284.6 4,600.8 4,709.8 4,743.3 4,783.8 4,832.3 28 In M3 only8 1,900.7 2,187.1 2,588.7 2,759.2 2,720.3' 2,728.5' 2.816.2' 2,795.2 Commercial hanks 29 Savings deposits, including MMDAs 1,288.7 1,427.5 1,742.4 2,060.4 2,177.5 2,217.5 2,263.9 2,307.3 30 Small time deposits9 635.6 700.6 635.1 591.7 571.0 565.8 557.2 549.9 31 Large time deposits10 " 653.6 718.5 670.0 675.0 696.9 691.8' 774.9' 772.2 Thrift institutions 32 Savings deposits, including MMDAs 451.9 455.8 575.0 718.9 789.4 798.3 810.7 828.4 33 Small time deposits9 320.0 345.4 339.6 302.5 291.3 288.1 284.9 281.1 34 Large time deposits'" 92.1 103.0 114.7 117.0 117.9 118.8 121.4 122.8 Money market mutual funds 35 Retail 832.7 925.5 992.5 927.4 880.6 873.5 867.2 865.6 36 Institution-only 648.6 806.1 1,218.3 1,262.3 1,118.9 1,131.0 1,161.6 1,144.1 Repurchase agreements and eurodollars 37 Repurchase agreements'2 334.7 364.2 376.5 476.4 525.0 529.5 496.6 488.1 38 Eurodollars'2 171.7 195.2 209.1 228.5 261.5' 257.4' 261.8' 267.9 Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • November 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 US. 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 (ess than $100,000), and (3) 8. Sum of (I) 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 Liabilities' A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 2002 2003 2003 Aug. Feb.' Mar.' Apr.' May' June' July' Aug. Aug. 6 Aug. 13 Aug. 20 Aug. 27 Seasonally adjusted 1 Bank credit 5,661.4 5,962.1 5,992.5 6,027.0 6,134.1 6,195.8 6,237.1 6,223.3 6,252.8 6,230.4 6,203.3 6,208.0 7 Securities in bank credit 1,629.5 1,754.1 1,766.1 1,778.7 1,837.4 1,862.3 1,817.4 1,775.0 1,800.5 1,764.2 1,771.4 1,767.8 U.S. government securities 943.7 1.059.4 1,072.2 1,104.4 1,135.2 1,151.4 1,114.9 1,076.4 1,107.1 1,062.9 1,065.6 1,071.5 4 Other securities 685.8 694.7 693.9 674.3 702.2 710.9 702.5 698.5 693.5 701.3 705.8 696.4 5 Loans and leases in bank credit2 .... 4,031.9 4,208.0 4,226.4 4,248.3 4,296.7 4,333.5 4,419.7 4,448.3 4,452.3 4,466.2 4,431.9 4,440.2 6 Commercial and industrial 978.4' 953.4 947.8 946.9 938.8 927.0 930.3 922.4 923.7 921.7 921.6 923.9 7 Real estate 1,903.7' 2,079.9 2,095.0 2,111.1 2,133.9 2,156.7 2,194.6 2,239.8 2,242.0 2,237.6 2,234.3 2,234.7 8 Revolving home equity 197.3 222.7 230.5 234.7 238.2 244.5 248.7 253.1 251.3 252.2 253.3 254.1 9 Other 1,706.4' 1,857.2 1,864.5 1,876.4 1,895.7 1,912.2 1,945.9 1,986.7 1,990.7 1,985.4 1,981.0 1,980.6 10 Consumer 574.3 591.8 586.9 584.6 589.9 595.8 596.2 596.9 594.5 595.7 597.7 597.9 11 Security3 176.9 181.3 193.6 190.6 210.3 212.2 214.8 207.0 210.7 226.2 194.9 201.3 17 Other loans and leases 398.5 401.6 403.1 415.1 423.8 441.9 483.8 482.2 481.5 485.1 483.2 482.5 n Interbank loans 304.1 304.2 313.1 304.4 316.3 319.7 321.1 326.1 333.1 334.4 325.7 323.2 14 Cash assets4 320.3 318.3 323.6 319.7 318.3 331.4 336.4 343.8 334.1 338.0 345.4 350.5 15 Other assets5 504.2 535.2 525.0 528.7 546.1 549.6 555.2 568.3 573.7 575.6 568.3 552.0 16 Total assets6 6,714.9 7,043.3 7,077.7 7,104.6 7,239.4 7,321.2 7,374.6 7,385.4 7,418.5 7,402.2 7,366.3 7,357.6 Liabilities 17 Deposits 4,462.5 4,535.3 4,585.6 4,612.6 4,643.4 4,702.4 4,748.0 4,799.6 4,797.1 4,828.0 4,779.2 4,784.2 18 Transaction 598.6 613.7 619.4 632.4 634.1 639.3 655.3 655.1 625.7 648.4 664.3 695.6 19 Nontransaction 3,863.9 3,921.6 3,966.3 3,980.2 4,009.3 4,063.1 4,092.7 4,144.5 4,171.4 4,179.6 4,114.9 4,088.6 70 Large time 1,046.6 995.2 1,001.6 985.5 999.2 1,003.3 1,020.9 1,031.6 1,040.9 1,034.8 1,027.4 1,023.8 21 Other 2,817.3 2,926.4 2,964.7 2,994.7 3,010.2 3,059.8 3,071.8 3,112.9 3,130.5 3,144.8 3,087.4 3,064.8 22 Borrowings 1,290.6 1,368.7 1,389.8 1,396.7 1,438.2 1,478.1 1,515.0 1,517.9 1,559.8 1,532.4 1,496.0 1,501.8 n From banks in the U.S 403.7 388.1 397.3 397.1 389.8 408.6 410.9 416.4 428.3 418.4 416.1 411.3 74 From others 886.8 980.6 992.6 999.6 1,048.4 1,069.5 1,104.0 1,101.5 1,131.4 1,114.0 1,079.8 1,090.5 75 Net due to related foreign offices 87.3' 144.3 135.8 139.3 146.5 126.4 143.0 126.8 120.5 99.5 144.2 143.1 26 Other liabilities 430.3 455.4 449.8 455.0 479.0 489.3 458.6 448.5 449.8 455.4 446.5 427.7 27 Total liabilities 6,270.7r 6,503.7 6,561.0 6,603.5 6,707.1 6,796.2 6,864.6 6,892.7 6,927.2 6,915.4 6,865.8 6,856.8 28 Residual (assets less liabilities)7 444.2' 539.6 516.7 501.2 532.3 524.9 510.1 492.7 491.3 486.8 500.5 500.8 Not seasonally adjusted Assets 79 Bank credit 5,642.6 5,965.5 5,981.3 6,021.6 6,128.8 6,192.3 6,212.2 6.203.3 6,235.0 6,210.2 6,180.5 6,181.0 30 Securities in bank credit 1,622.9 1,763.2 1,771.1 1,776.5 1,835.1 1,856.2 1,802.1 1,767.7 1,792.1 1,754.5 1,762.9 1,760.2 31 U.S. government securities 940.2 1,065.7 1,077.2 1,104.3 1,133.2 1,146.7 1,106.8 1,072.5 1,102.8 1,057.1 1,061.0 1,067.0 32 Other securities 682.7 697.5 693.9 672.2 702.0 709.5 695.3 695.2 689.3 697.4 701.8 693.3 33 Loans and leases in bank credit2 .... 4,019.7 4,202.2 4,210.2 4,245.1 4,293.7 4,336.2 4,410.1 4,435.6 4,442.9 4,455.7 4,417.7 4,420.8 34 Commercial and industrial 974.3' 951.5 949.2 950.7 942.5 931.0 931.4 918.6 922.7 918.4 917.8 917.2 35 Real estate 1,903.7' 2,075.7 2,086.0 2,107.5 2,137.7 2,158.0 2,193.0 2,239.8 2,240.5 2,240.0 2,233.5 2,234.4 36 Revolving home equity 197.4 223.0 228.4 234.4 239.4 245.4 248.7 253.2 251.0 252.3 253.5 254.5 37 Other 1,706.3' 1,852.6 1,857.6 1,873.1 1,898.3 1,912.6 1,944.3 1,986.6 1,989.5 1,987.8 1,980.1 1,979.9 38 Consumer 571.0 595.0 584.7 581.8 588.7 592.4 590.6 593.2 588.0 591.0 594.7 596.1 39 Credit cards and related plans . . 224.1 225.8 219.6 215.6 221.5 223.2 219.9 220.0 217.0 218.3 221.2 221.2 40 Other 346.9 369.2 365.0 366.2 367.2 369.3 370.7 373.3 371.0 372.7 373.5 375.0 41 Security3 172.4 183.0 189.2 189.8 202.6 210.8 208.7 201.7 207.9 222.2 188.5 194.7 47 Other loans and leases 398.4' 397.2 401.2 415.3 422.1 444.0 486.3 482.2 483.7 484.1 483.2 478.4 43 Interbank loans 298.2 301.4 319.5 315.5 312.0 320.9 316.6 320.2 332.4 329.7 320.9 305.3 44 Cash assets4 304.6 318.8 312.8 318.0 314.7 322.2 325.7 327.2 319.0 315.7 325.9 323.8 45 Other assets5 501.1 532.6 524.1 528.1 544.0 544.2 553.4 564.7 572.7 572.9 562.5 544.2 46 Total assets6 6,671.3 7,041.4 7,061.0 7,108.0 7,223.9 7,304.1 7,333.0 7,339.3 7,383.6 7,352.2 7,313.4 7,278.1 Liabilities 47 Deposits 4,413.8 4,556.2 4,592.8 4,637.7 4,636.4 4,691.4 4,718.6 4,749.6 4,771.6 4,779.6 4,720.4 4,698.3 48 Transaction 583.8 606.1 611.0 638.3 623.9 633.9 646.6 638.7 614.8 630.4 644.2 663.4 49 Nontransaction 3,830.0 3,950.2 3,981.8 3,999.4 4,012.5 4,057.6 4,072.0 4,110.9 4,156.8 4,149.2 4,076.2 4,034.9 50 Large time 1,028.8 1,005.8 1,004.3 989.9 1,002.8 1,001.4 1,009.8 1,015.5 1,027.5 1,018.2 1,010.4 1,008.1 51 Other 2,801.2 2,944.3 2,977.4 3,009.5 3,009.6 3,056.2 3,062.2 3,095.4 3,129.3 3,131.1 3,065.8 3,026.8 52 Borrowings 1,273.5 1,370.9 1,386.2 1,400.8 1,443.9 1,477.2 1,507.9 1,497.9 1,542.7 1,508.7 1,477.7 1,476.5 53 From banks in the U.S 399.4 391.6 400.7 401.2 392.2 406.8 407.6 411.9 425.7 413.7 412.9 404.3 54 From others 874.1 979.3 985.5 999.6 1,051.8 1,070.4 1,100.4 1,086.1 1,117.0 1,095.0 1,064.8 1,072.2 55 Net due to related foreign offices 85.4' 149.6 133.9 130.2 146.0 123.5 133.6 125.1 111.9 95.3 142.5 148.8 56 Other liabilities 428.8 461.7 446.0 442.5 478.2 486.1 448.7 446.7 441.2 450.7 444.9 433.3 57 Total liabilities 6,201.4 6,538.4 6,558.9 6,611.2 6,704.5 6,778.3 6,808.9 6,819.4 6,867.5 6,834.3 6,785.4 6,756.9 58 Residual (assets less liabilities)7 469.8' 503.0 502.1 496.8 519.3 525.8 524.1 519.9 516.1 517.8 528.0 521.2 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • November 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2002 2003 2003 Aug. Feb. Mar. Apr.' May' June' July' Aug. Aug. 6 Aug. 13 Aug. 20 Aug. 27 Seasonally adjusted Assets 1 Bank credit 5,041.4' 5,315.2' 5,329.0 5,372.0 5,464.6 5,523.6 5,587.2 5,592.8 5,618.9 5,594.8 5,583.8 5,573.6 2 Securities in bank credit 1,381.4 1,474.8 1,482.3' 1,501.4 1,548.8 1,573.9 1,549.7 1,507.5 1,541.2 1,495.6 1,502.8 1,498.4 i U.S. government securities 862.0 942.7 949.7 980.2 1,007.8 1,027.1 1,000.4 969.0 998.3 953.6 959.9 965.8 4 Other securities 519.4 532.0' 532.6 521.1 541.0 546.8 549.3 538.5 542.9 542.0 543.0 532.6 5 Loans and leases in bank credit2 .... 3,660.0' 3,840.4' 3,846.7 3,870.6 3,915.7 3,949.7 4,037.5 4,085.2 4,077.7 4,099.2 4,081.0 4,075.2 6 Commercial and industrial 789.3' 779.3' 776.2' 774.7 768.4 763.7 767.6 766.1 765.3 764.6 766.4 768.1 7 Real estate 1,884.8' 2,060.1' 2,075.1' 2,092.1 2,114.6 2,137.3 2,175.2 2,220.7 2,222.7 2,218.3 2,215.4 2,215.8 8 Revolving home equity 197.3 222.7 230.5 234.7 238.2 244.5 248.7 253.1 251.3 252.2 253.3 254.1 9 Other 1,687.6' 1,837.4' 1,844.6' 1.857.4 1,876.4 1,892.8 1,926.5 1,967.6 1.971.4 1,966.2 1,962.1 1,961.7 10 Consumer 574.3 591.8' 586.9 584.6 589.9 595.8 596.2 596.9 594.5 595.7 597.7 597.9 11 Security3 85.4 73.1' 72.2 72.4 91.4 90.3 95.9 95.4 95.2 110.3 92.3 87.7 12 Other loans and leases 326.1 336.0' 336.3' 346.8 351.4 362.6 402.6 406.1 400.1 410.3 409.1 405.7 13 Interbank loans 286.2 277.2 285.8 282.0 291.7 289.0 288.0 293.7 300.2 306.6 290.7 290.0 14 Cash assets4 272.5 279.6 279.7 270.0 267.3 277.1 282.4 289.4 280.3 283.7 291.4 296.0 15 Other assets5 476.5' 500.7' 495.0' 496.2 509.5 512.9 522.0 532.0 536.4 535.9 529.6 518.9 16 Total assets6 6,001.9 6,296.6' 6,313.6r 6,345.4 6,458.0 6,527.6 6,605.0 6,632.3 6,661.0 6,645.2 6,619.7 6,602.7 Liabilities 17 Deposits 3,964.8 4,092.5 4,137.2 4,178.0 4,210.0 4,259.8 4,294.6 4,344.4 4,337.2 4,366.9 4,325.1 4,334.0 18 Transaction 588.5 603.5 607.9 621.2 623.3 627.9 643.8 643.3 614.6 636.9 652.5 682.7 19 Nontransaction 3,376.3 3,489.0 3,529.4 3,556.8 3,586.7 3,631.9 3,650.8 3,701.1 3,722.6 3,730.0 3,672.6 3,651.4 20 Large time 565.0 583.5 583.6 582.2 595.7 590.5 586.4 600.3 601.8 600.4 598.0 598.5 21 Other 2,811.3 2,905.5 2,945.8 2,974.5 2,991.0 3,041.4 3,064.4 3,100.8 3,120.8 3,129.6 3,074.5 3,052.9 22 Borrowings 1,076.7 1,093.8 1,096.7 1,098.9 1.133.1 1,162.4 1,217.9 1,224.3 1,251.5 1,224.9 1,218.1 1,217.9 23 From banks in the U.S 382.4 357.0 363.6 369.7 358.5 373.9 374.2 382.5 394.7 382.1 383.8 379.1 24 From others 694.3 736.7 733.1' 729.2 774.6 788.5 843.8 841.7 856.8 842.8 834.3 838.8 25 Net due to related foreign offices 173.5' 222.7 219.6' 212.2 224.3 208.3 229.0 230.3 225.2 221.6 240.7 235.7 26 Other liabilities 332.7 355.8 355.0 364.4 372.2 375.8 349.8 332.4 342.9 335.6 325.4 312.3 27 Total liabilities 5,547.7 5,764.8r 5,808.5 5,853.5 5,939.7 6,006.2 6,091.3 6,131.4 6,156.7 6,149.0 6,109.2 6,100.0 28 Residual (assets less liabilities)7 454.2' 531.8' 505.1' 492.0 518.4 521.4 513.6 500.9 504.3 496.2 510.6 502.7 Not seasonally adjusted Assets 29 Bank credit 5,028.8 5,314.1' 5,319.6 5,366.7 5,464.0 5,523.5 5,569.8 5,579.3 5,605.8 5,579.6 5,567.9 5,554.4 30 Securities in bank credit 1,374.8 1,483.9' 1,487.3 1,499.2 1.546.6 1,567.8 1,534.5 1,500.2 1,532.8 1,485.9 1,494.3 1,490.8 31 U.S. government securities 858.5 949.1 954.7 980.1 1,005.8 1,022.4 992.3 965.1 994.0 947.9 955.3 961.3 32 Other securities 516.4 534.9 532.6 519.1 540.8 545.4 542.2 535.2 538.8 538.0 539.0 529.5 33 Loans and leases in bank credit2 .... 3,653.9' 3,830.2' 3,832.3 3,867.5 3,917.4 3,955.8 4,035.3 4,079.0 4,073.0 4,093.6 4,073.5 4,063.6 34 Commercial and industrial 786.6' 775.9' 776.0' 779.4 774.0 768.2 769.6 763.5 765.6 762.4 763.5 763.1 35 Real estate 1,884.8' 2.055.9' 2,066.1' 2,088.5 2,118.4 2,138.5 2,173.6 2,220.8 2,221.2 2,220.8 2,214.6 2,215.5 36 Revolving home equity 197.4 223.0 228.4 234.4 239.4 245.4 248.7 253.2 251.0 252.3 253.5 254.5 37 Other 1,687.5' 1,832.9' 1,837.7' 1,854.0 1,879.0 1,893.2 1,924.9 1,967.5 1,970.2 1,968.5 1,961.1 1,961.0 38 Consumer 571.0 595.0' 584.7' 581.8 588.7 592.4 590.6 593.2 588.0 591.0 594.7 596.1 39 Credit cards and related plans . . 224.1 225.8 219.6 215.6 221.5 223.2 219.9 220.0 217.0 218.3 221.2 221.2 40 Other 346.9 369.2' 365.0 366.2 367.2 369.3 370.7 373.3 371.0 372.7 373.5 375.0 41 Security3 84.3 72.0 71.9 71.3 86.0 91.4 94.6 94.2 94.1 108.6 90.6 86.1 42 Other loans and leases 327.2' 331.4' 333.6' 346.5 350.3 365.1 406.8 407.3 404.1 410.8 410.2 402.7 43 Interbank loans 280.4 274.4 292.3 293.0 287.5 290.3 283.4 287.9 299.5 301.9 285.9 272.1 44 Cash assets4 258.8 279.1 270.1 270.4 265.3 270.5 274.6 275.0 267.7 263.9 274.1 271.3 45 Other assets5 473.7 497.6' 493.4' 495.8 507.3 508.9 521.4 528.9 536.1 534.1 524.6 511.2 46 Total assets6 5,966.8 6,288.7r 6,299.2r 6,351.3 6,448.8 6,518.0 6,574.7 6,595.4 6,634.1 6,603.5 6,576.5 6,533.2 Liabilities 47 Deposits 3,933.1 4,103.3 4,140.3 4.197.1 4,197.6 4,250.7 4,275.0 4,309.9 4.324.9 4,334.5 4,282.8 4,262.4 48 Transaction 574.0 595.8 599.8 627.7 613.5 622.8 635.3 627.3 604.0 619.2 632.7 650.9 49 Nontransaction 3,359.1 3,507.4 3,540.5 3.569.4 3,584.1 3,627.9 3,639.7 3,682.6 3,720.9 3,715.3 3,650.1 3,611.5 50 Large time 563.7 584.4 582.1 580.4 593.9 590.0 584.7 598.9 601.1 598.9 596.7 596.2 51 Other 2,795.4 2,923.0 2,958.4 2,989.1 2,990.2 3,037.8 3,055.0 3,083.7 3,119.9 3,116.4 3,053.4 3,015.2 52 Borrowings 1,059.7 1,095.9' 1,093.0 1,103.1 1,138.9 1,161.4 1,210.9 1,204.3 1.234.5 1,201.2 1,199.8 1,192.6 53 From banks in the U.S 378.1 360.5 367.0 373.8 360.8 372.1 370.8 378.0 392.1 377.4 380.6 372.1 54 From others 681.6 735.4 726.0 729.3 778.0 789.4 840.1 826.3 842.4 823.9 819.2 820.5 55 Net due to related foreign offices 173.3 226.9' 215.5' 203.5 223.5 207.3 222.9 230.0 221.1 218.6 240.9 240.5 56 Other liabilities 332.2 361.2 349.7 352.2 371.1 374.2 342.4 331.9 338.1 332.0 325.5 317.1 57 Total liabilities 5,498.3 5,787.3 5,798.5 5,855.9 5,931.0 5,993.5 6,051.2 6,076.1 6,118.6 6,086.3 6,049.1 6,012.6 58 Residual (assets less liabilities)7 468.4' 501.4' 500.6' 495.4 517.7 524.5 523.5 519.3 515.5 517.2 527.4 520.6 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities 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 Aug.r Feb/ Mar.1" Apr/ May' June' July' Aug. Aug. 6 Aug. 13 Aug. 20 Aug. 27 Seasonally adjusted Assets 1 Bank credit 2,762.9 2,931.7 2,929.1 2,949.3 3,024.5 3,059.6 3,096.3 3,082.8 3,112.9 3,089.5 3,070.1 3,060.2 7 Securities in bank credit 738.1 805.5 803.2 810.1 856.6 880.6 847.4 801.7 836.1 789.4 796.7 791.8 3 U.S. government securities 428.0 479.8 476.6 493.3 520.0 536.0 503.0 467.6 495.7 451.0 457.7 466.7 4 Trading account 47.8 54.5 41.8 40.7 43.6 38.7 37.6 33.5 32.7 29.1 29.4 36.8 Investment account 380.1 425.3 434.7 452.6 476.4 497.4 465.3 434.1 463.0 422.0 428.3 429.9 6 Other securities 310.1 325.7 326.6 316.8 336.6 344.6 344.4 334.1 340.4 338.4 339.0 325.1 7 Trading account 174.9 172.6 171.6 161.5 183.4 188.1 173.2 162.2 167.8 165.6 165.3 155.7 8 Investment account 135.3 153.1 155.0 155.3 153.2 156.5 171.2 171.9 172.6 172.7 173.7 169.4 9 State and local government . . 28.1 29.6 30.1 30.9 31.3 32.2 32.3 31.4 31.5 31.5 31.3 31.4 10 Other 107.2 123.5 124.9 124.4 121.9 124.3 138.9 140.5 141.2 141.2 142.4 138.0 11 Loans and leases in bank credit2 .... 2,024.7 2,126.2 2,125.9 2,139.2 2,167.9 2,179.0 2,248.9 2,281.1 2,276.8 2,300.1 2,273.5 2,268.4 12. Commercial and industrial 499.8 482.0 478.2 476.0 468.2 461.6 464.1 458.9 459.3 458.4 458.7 459.7 13 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 14 Other 499.8 482.0 478.2 476.0 468.2 461.6 464.1 458.9 459.3 458.4 458.7 459.7 IS Real estate 908.7 1,030.6 1,037.9 1,043.6 1,058.3 1,065.9 1,089.9 1,123.4 1,126.1 1,124.7 1,116.6 1,116.3 16 Revolving home equity 125.2 142.4 147.8 150.4 152.7 156.1 159.8 163.6 162.2 163.0 163.8 164.4 17 Other 783.5 888.2 890.1 893.3 905.6 909.7 930.1 959.7 963.9 961.7 952.8 951.9 18 Consumer 311.4 317.5 313.8 312.3 312.5 314.2 311.7 312.7 311.3 311.9 311.6 315.1 19 Security3 78.4 65.0 64.1 64.3 82.6 80.9 86.6 86.0 85.8 100.9 83.0 78.1 20 Federal funds sold to and repurchase agreements with broker-dealers 67.1 54.3 52.6 52.4 63.0 63.5 68.7 66.8 67.5 78.8 64.0 60.0 21 Other 11.3 10.7 11.4 11.8 19.5 17.4 17.9 19.2 18.3 22.1 19.0 18.2 22 State and local government 13.0 12.3 12.5 12.4 12.4 12.7 13.0 13.3 12.8 13.7 13.2 13.4 23 Agricultural 8.3 7.9 7.9 7.7 7.5 7.4 7.3 7.4 7.3 7.4 7.4 7.5 24 Federal funds sold to and repurchase agreements with others 17.6 24.5 24.0 25.2 27.1 28.5 25.8 24.2 22.2 24.9 24.2 24.9 75 All other loans 67.3 75.6 77.1 88.2 89.5 97.2 140.5 145.8 142.4 148.7 149.5 144.1 26 Lease-financing receivables 120.3 110.8 110.5 109.4 109.8 110.7 109.9 109.4 109.6 109.5 109.2 109.3 7,1 Interbank loans 191.0 162.2 171.8 171.1 171.0 165.1 168.8 178.5 186.6 192.3 175.4 171.1 28 Federal funds sold to and repurchase agreements with commercial banks 98.8 91.2 100.3 99.1 100.8 97.7 97.7 9999..00 108.1 115.4 95.9 8800..55 79 Other 92.2 71.0 71.5 72.0 70.2 67.4 71.1 79.5 78.5 76.9 79.5 90.6 30 Cash assets4 151.3 151.1 148.3 135.8 132.9 140.4 142.1 146.7 139.4 141.2 150.2 149.1 31 Other assets5 333.0 355.2 347.6 347.2 356.5 359.2 364.2 367.7 367.6 369.1 367.7 361.6 32 Total assets6 3,394.3 3,555.4 3,551.8 3,559.4 3,640.6 3,680.2 3,727.9 3,731.6 3,763.0 3,747.7 3,719.2 3,697.6 Liabilities 33 Deposits 1,919.1 1,996.4 2,015.3 2,039.8 2,046.6 2,075.9 2,093.6 2,128.0 2,120.8 2,142.1 2,117.0 2,122.6 34 Transaction 288.2 290.8 291.0 296.2 297.3 300.2 307.2 304.1 286.5 303.8 309.5 325.4 35 Nontransaction 1,630.8 1,705.5 1,724.3 1,743.6 1,749.2 1,775.7 1,786.5 1,823.9 1,834.2 1,838.4 1,807.5 1,797.2 36 Large time 265.5 273.7 269.1 267.2 279.1 271.1 268.9 283.2 284.0 281.2 282.5 282.3 37 Other 1,365.3 1,431.9 1,455.2 1,476.4 1,470.2 1,504.6 1,517.5 1,540.7 1,550.2 1,557.2 1,525.0 1,514.8 38 Borrowings 738.0 693.4 699.6 697.4 722.9 746.7 794.2 785.9 821.5 793.6 773.5 767.8 39 From banks in the U.S 261.7 199.6 208.0 212.3 203.6 216.7 213.9 213.4 228.7 218.2 209.4 199.6 40 From others 476.4 493.9 491.6 485.1 519.3 530.0 580.3 572.6 592.8 575.4 564.1 568.2 41 Net due to related foreign offices 165.0 210.2 208.9 199.3 211.9 196.3 217.2 218.3 214.1 212.8 228.9 220.4 42 Other liabilities 268.2 280.1 275.4 284.9 292.2 296.5 269.2 251.2 261.4 255.0 243.4 231.9 43 Total liabilities 3,090.3 3,180.1 3,199.2 3,221.4 3,273.5 3,315.3 3,374.2 3,383.4 3,417.7 3,403.5 3,362.8 3,342.7 44 Residual (assets less liabilities)7 303.9 375.4 352.6 338.0 367.1 364.9 353.6 348.1 345.3 344.1 356.4 354.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • November 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued C. Large domestically chartered commercial banks—Continued Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2002 2003 2003 Aug.r Feb.' Mar.' Apr.' May' June' July' Aug. Aug. 6 Aug. 13 Aug. 20 Aug. 27 Not seasonally adjusted Assets 45 Bank credit 2,753.0 2,933.8 2,923.0 2,945.8 3,025.4 3,061.9 3,084.0 3,072.5 3,106.4 3,077.4 3,057.8 3,042.3 46 Securities in bank credit 733.0 813.8 805.5 806.4 855.1 874.9 834.0 796.2 830.4 781.7 790.7 784.6 47 U.S. government securities 426.0 485.3 478.8 491.7 518.8 531.8 496.7 465.4 494.1 447.2 455.7 462.6 48 Trading account 47.6 55.1 42.1 40.6 43.5 38.4 37.2 33.3 32.6 28.8 29.2 36.4 49 Investment account 378.4 430.2 436.8 451.1 475.3 493.3 459.5 432.1 461.5 418.4 426.5 426.1 50 Mortgage-backed securities . 306.7 331.3 334.7 354.4 380.2 389.4 364.1 335.5 366.2 321.9 329.9 329.1 51 Other 71.7 98.8 102.0 96.7 95.0 103.9 95.4 96.6 95.3 96.5 96.5 97.0 52 One year or less 17.3 22.9 24.4 24.6 23.2 24.3 24.1 24.4 24.0 24.5 24.7 24.2 53 One to five years 42.5 57.4 57.3 55.2 55.2 57.3 51.2 52.5 52.3 51.1 52.7 53.2 54 More than five years .... 11.9 18.6 20.3 16.9 16.7 22.3 20.1 19.7 19.0 21.0 19.1 19.6 55 Other securities 307.1 328.5 326.7 314.7 336.3 343.1 337.3 330.8 336.2 334.4 335.1 322.0 56 Trading account 173.1 174.1 171.7 160.5 183.2 187.3 169.6 160.6 165.7 163.7 163.4 154.2 57 Investment account 133.9 154.4 155.0 154.3 153.1 155.8 167.7 170.2 170.5 170.7 171.7 167.8 58 State and local government . 27.8 29.8 30.1 30.7 31.3 32.1 31.6 31.1 31.1 31.2 30.9 31.1 59 Other 106.1 124.6 124.9 123.6 121.8 123.8 136.1 139.1 139.4 139.6 140.8 136.7 60 Loans and leases in bank credit2 . . . 2,019.9 2,120.0 2.117.5 2,139.4 2,170.3 2,187.0 2,250.0 2,276.3 2,276.1 2,295.7 2,267.0 2,257.7 61 Commercial and industrial 498.4 480.0 478.1 478.6 471.2 463.9 465.3 457.5 460.2 457.1 456.9 456.5 62 Bankers acceptances .0 .0 .0 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 63 Other 498.4 480.0 478.1 478.6 471.2 463.9 465.3 457.5 460.2 457.1 456.9 456.5 64 Real estate 909.3 1,026.4 1,031.1 1,041.8 1,062.7 1,068.3 1,090.0 1,124.2 1,127.0 1,127.4 1,116.6 1,115.8 65 Revolving home equity 125.6 142.7 146.1 150.3 153.8 157.1 160.3 164.2 162.4 163.4 164.3 165.1 66 Other 465.6 560.3 561.2 569.8 588.3 591.6 613.2 643.5 648.3 647.5 635.2 634.2 67 Commercial 318.1 323.4 323.8 321.7 320.5 319.7 316.5 316.6 316.3 316.5 317.1 316.6 68 Consumer 309.2 320.7 314.3 312.9 313.4 314.3 309.7 310.2 308.3 309.1 309.3 313.0 69 Credit cards and related plans . 114.9 109.8 105.9 103.5 103.9 104.9 100.0 99.7 98.7 98.7 99.0 101.9 70 Other 194.3 210.9 208.4 209.4 209.6 209.4 209.8 210.5 209.6 210.5 210.2 211.0 71 Security3 77.3 63.9 63.5 62.9 77.3 82.1 85.4 84.8 84.5 99.2 81.4 76.9 72 Federal funds sold to and repurchase agreements with broker-dealers 66.2 53.4 52.2 51.4 59.0 64.5 67.8 65.9 66.5 77.5 62.7 59.0 73 Other 11.1 10.6 11.3 11.6 18.3 17.6 17.6 18.9 18.0 21.7 18.6 17.9 74 State and local government 13.0 12.3 12.5 12.4 12.4 12.7 13.0 13.3 12.8 13.7 13.2 13.4 75 Agricultural 8.4 7.8 7.8 7.7 7.6 7.5 7.4 7.5 7.4 7.5 7.5 7.5 76 Federal funds sold to and repurchase agreements with others 17.6 24.5 24.0 25.2 27.1 28.5 25.8 24.2 22.2 24.9 24.2 24.9 77 All other loans 67.5 72.3 74.9 88.0 88.9 99.3 143.9 146.2 144.7 148.1 149.8 141.6 78 Lease-financing receivables 119.2 112.1 111.2 109.8 109.8 110.3 109.4 108.4 108.9 108.7 108.2 108.1 79 Interbank loans 186.0 160.4 171.9 174.4 171.7 169.3 168.9 173.3 182.0 187.8 172.3 161.0 80 Federal funds sold to and repurchase agreements with commercial banks 96.4 90.3 100.4 101.0 101.2 100.2 97.8 96.2 105.4 112.7 94.2 75.8 81 Other 89.6 70.2 71.5 73.4 70.5 69.1 71.1 77.1 76.5 75.1 78.1 85.2 82 Cash assets4 141.6 151.0 143.3 138.5 1.32.0 136.0 136.6 137.1 130.6 128.5 139.3 133.9 83 Other assets5 330.3 352.1 345.9 346.8 354.3 355.2 363.6 364.7 367.3 367.2 362.7 353.9 84 Total assets6 3,366.8 3,552.2 3,538.9 3,561.5 3,639.0 3,678.1 3,709.7 3,703.3 3,742.4 3,716.4 3,687.6 3,646.7 Liabilities 85 Deposits 1,904.3 2,000.4 2,013.4 2,047.2 2,042.2 2,076.3 2,087.7 2,111.6 2,117.6 2,127.7 2,096.4 2,083.0 86 Transaction 277.2 286.5 286.6 302.4 293.0 297.4 301.3 291.9 277.1 291.3 295.8 303.4 87 Nontransaction 1,627.2 1,713.9 1,726.7 1,744.9 1,749.2 1,778.9 1,786.4 1,819.7 1,840.5 1,836.4 1,800.6 1,779.6 88 Large time 264.2 274.6 267.6 265.3 277.3 270.7 267.3 281.8 283.3 279.7 281.2 280.1 89 Other 1,362.9 1,439.3 1,459.1 1,479.5 1,471.9 1,508.3 1,519.1 1,537.9 1,557.3 1,556.7 1,519.4 1,499.5 90 Borrowings 721.0 695.6 696.0 701.6 728.7 745.7 787.1 765.9 804.5 769.9 755.2 742.5 91 From banks in the U.S 257.3 203.1 211.4 216.4 205.9 214.8 210.5 208.8 226.1 213.4 206.2 192.6 92 From nonbanks in the U.S 463.7 492.5 484.6 485.1 522.7 530.9 576.6 557.1 578.4 556.5 549.0 549.9 93 Net due to related foreign offices 164.9 214.3 204.8 190.7 211.0 195.2 211.1 218.0 210.0 209.7 229.2 225.2 94 Other liabilities 267.7 285.6 270.1 272.7 291.0 294.8 261.9 250.7 256.6 251.5 243.6 236.7 95 Total liabilities 3,057.9 3,195.9 3,184.3 3,212.1 3,273.0 3,312.2 3,347.8 3,346.2 3,388.7 3,358.7 3,324.4 3,287.3 96 Residual (assets less liabilities)7 308.9 356.3 354.6 349.4 366.1 365.9 361.9 357.0 353.8 357.6 363.2 359.4 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 Aug.r Feb.' Mar.r Apr.' May' June' July' Aug. Aug. 6 Aug. 13 Aug. 20 Aug. 27 Seasonally adjusted Assets 1 Bank credit 2,278.6 2,383.5 2,399.9 2.422.7 2,440.1 2,463.9 2,490.9 2,509.9 2,506.0 2,505.2 2,513.7 2,513.5 2 Securities in bank credit 643.3 669.3 679.1 691.3 692.3 693.3 702.3 705.8 705.1 706.2 706.2 706.6 3 U.S. government securities 434.0 463.0 473.1 486.9 487.8 491.1 497.5 501.4 502.5 502.6 502.2 499.1 4 Other securities 209.3 206.3 206.0 204.3 204.4 202.3 204.9 204.4 202.5 203.6 204.0 207.5 5 Loans and leases in bank credit2 .... 1,635.3 1.714.2 1,720.8 1,731.4 1,747.9 1,770.6 1,788.6 1,804.1 1,800.9 1,799.1 1,807.5 1,806.8 6 Commercial and industrial 289.4 297.3 298.0 298.7 300.2 302.1 303.4 307.3 306.0 306.2 307.7 308.4 7 Real estate 976.2 1,029.5 1,037.2 1,048.5 1,056.3 1,071.4 1,085.2 1,097.3 1,096.6 1,093.6 1,098.8 1,099.5 8 Revolving home equity 72.1 80.3 82.7 84.3 85.5 88.4 88.9 89.4 89.1 89.2 89.5 89.7 9 Other 904.1 949.2 954.5 964.1 970.7 983.0 996.4 1,007.9 1,007.5 1,004.4 1,009.3 1.009.8 10 Consumer 262.9 274.3 273.2 272.3 277.4 281.6 284.6 284.2 283.2 283.8 286.1 282.8 11 Security1 7.1 8.2 8.1 8.2 8.9 9.4 9.3 9.4 9.4 9.4 9.3 9.6 12 Other loans and leases 99.7 104.9 104.3 103.8 105.1 106.1 106.0 105.9 105.8 106.0 105.6 106.6 13 Interbank loans 95.1 115.0 114.0 110.9 120.7 123.9 119.2 115.3 113.6 114.3 115.2 118.9 14 Cash assets4 121.2 128.5 131.4 134.2 134.4 136.7 140.3 142.7 140.9 142.5 141.3 147.0 15 Other assets5 143.5 145.5 147.4 149.0 152.9 153.7 157.8 164.3 168.8 166.9 161.9 157.3 16 Total assets6 2,607.7 2,741.2 2,761.8 2,786.0 2,817.4 2,847.5 2,877.1 2,900.7 2,898.0 2,897.6 2,900.6 2,905.1 Liabilities 17 Deposits 2,045.7 2,096.2 2,122.0 2,138.2 2,163.4 2,183.9 2,201.0 2,216.4 2,216.4 2,224.8 2,208.1 2,211.5 18 Transaction 300.3 312.7 316.9 325.0 326.0 327.7 336.7 339.2 328.0 333.2 343.0 357.3 19 Nontransaction 1,745.5 1,783.5 1,805.1 1,813.2 1,837.5 1,856.2 1,864.3 1,877.2 1,888.4 1,891.6 1,865.1 1,854.2 20 Large time 299.5 309.8 314.5 315.1 316.6 319.4 317.4 317.1 317.8 319.2 315.5 316.1 21 Other 1,446.0 1,473.7 1,490.6 1,498.1 1,520.8 1,536.8 1,546.9 1,560.1 1,570.6 1,572.4 1,549.5 1,538.1 22 Borrowings 338.7 400.3 397.0 401.5 410.2 415.7 423.8 438.4 430.0 431.3 444.6 450.1 23 From banks in the U.S 120.7 157.4 155.6 157.4 154.9 157.3 160.3 169.2 166.0 163.9 174.4 179.5 24 From others 218.0 242.9 241.5 244.2 255.3 258.4 263.5 269.2 264.0 267.4 270.2 270.6 25 Net due to related foreign offices 8.5 12.6 10.7 12.8 12.4 12.0 11.8 12.0 11.1 8.9 11.8 15.3 26 Other liabilities 64.5 75.7 79.6 79.5 80.1 79.3 80.5 81.2 81.5 80.5 81.9 80.4 27 Total liabilities 2,457.4 2,584.7 2,609.3 2,632.0 2,666.2 2,690.9 2,717.1 2,747.9 2,739.0 2,745.5 2,746.4 2,757.3 28 Residual (assets less liabilities)7 150.3 156.4 152.5 154.0 151.2 156.5 160.0 152.8 159.0 152.1 154.2 147.8 Not seasonally adjusted Assets 29 Bank credit 2,275.8 2,380.3 2,396.6 2,420.9 2,438,5 2,461.6 2,485.8 2,506.7 2,499.4 2,502.1 2,510.1 2,512.1 30 Securities in bank credit 641.8 670.1 681.8 692.8 691.4 692.9 700.5 704.0 702.5 704.2 703.6 706.2 31 U.S. government securities 432.5 463.8 475.8 488.4 487.0 490.7 495.6 499.7 499.9 500.7 499.6 498.7 32 Other securities 209.3 206.3 206.0 204.3 204.4 202.3 204.9 204.4 202.5 203.6 204.0 207.5 33 Loans and leases in bank credit2 .... 1,634.0 1,710.2 1,714.8 1.728.1 1,747.1 1,768.7 1,785.3 1,802.7 1,797.0 1,797.9 1,806.5 1,805.9 34 Commercial and industrial 288.2 295.8 297.9 300.9 302.7 304.3 304.3 306.0 305.4 305.4 306.5 306.6 35 Real estate 975.5 1,029.6 1,035.0 1,046.7 1,055.7 1,070.2 1,083.6 1,096.5 1,094.2 1,093.4 1,097.9 1,099.7 36 Revolving home equity 71.8 80.4 82.3 84.1 85.6 88.3 88.4 89.1 88.6 88.9 89.1 89.4 37 Other 903.7 949.2 952.8 962.6 970.2 981.9 995.1 1,007.5 1,005.6 1,004.5 1,008.8 1,010.3 38 Consumer 261.7 274.3 270.3 268.8 275.3 278.1 280.9 283.1 279.7 281.8 285.4 283.2 39 Credit cards and related plans . . 109.2 116.0 113.7 112.1 117.7 118.3 120.0 120.3 118.3 119.7 122.1 119.2 40 Other 152.5 158.2 156.6 156.8 157.6 159.8 160.9 162.8 161.4 162.2 163.3 164.0 41 Security1 7.1 8.0 8.4 8.4 8.7 9.3 9.2 9.4 9.6 9.4 9.2 9.1 42 Other loans and leases 101.5 102.5 103.2 103.3 104.6 106.8 107.3 107.7 108.1 107.9 107.4 107.3 43 Interbank loans 94.4 1 14.0 120.5 118.6 115.7 120.9 114.5 114.5 117.6 114.1 113.6 111.1 44 Cash assets4 117.1 128.1 126.8 131.9 133.3 134.5 138.0 138.0 137.1 135.4 134.8 137.5 45 Other assets5 143.5 145.5 147.4 149.0 152.9 153.7 157.8 164.3 168.8 166.9 161.9 157.3 46 Total assets6 2,600.0 2,736.6 2,760.3 2,789.7 2,809.7 2,840.0 2,865.0 2,892.1 2,891.6 2,887.2 2,888.8 2,886.5 Liabilities 47 Deposits 2,028.8 2,102.9 2,127.0 2.149.9 2,155.4 2,174.3 2,187.3 2,198.3 2,207.3 2,206.8 2,186.4 2,179.4 48 Transaction 296.8 309.3 313.2 325.3 320.5 325.4 334.0 335.3 326.9 327.9 336.9 347.6 49 Nontransaction 1,732.0 1,793.6 1,813.8 1,824.6 1.834.9 1,848.9 1,853.3 1,863.0 1,880.4 1,878.9 1,849.5 1,831.9 50 Large time 299.5 309.8 314.5 315.1 316.6 319.4 317.4 317.1 317.8 319.2 315.5 316.1 51 Other 1,432.5 1.483.8 1,499.2 1,509.5 1,518.2 1,529.6 1,535.9 1,545.8 1,562.6 1,559.7 1,533.9 1,515.8 52 Borrowings 338.7 400.3 397.0 401.5 410.2 415.7 423.8 438.4 430.0 431.3 444.6 450.1 53 From banks in the U.S 120.7 157.4 155.6 157.4 154.9 157.3 160.3 169.2 166.0 163.9 174.4 179.5 54 From others 218.0 242.9 241.5 244.2 255.3 258.4 263.5 269.2 264.0 267.4 270.2 270.6 55 Net due to related foreign offices 8.5 12.6 10.7 12.8 12.4 12.0 11.8 12.0 11.1 8.9 11.8 15.3 56 Other liabilities 64.5 75.7 79.6 79.5 80.1 79.3 80.5 81.2 81.5 80.5 81.9 80.4 57 Total liabilities 2,440.4 2,591.5 2,614.3 2,643.7 2,658.1 2,681.4 2,703.4 2,729.9 2,729.9 2,727.5 2,724.7 2,725.3 58 Residual (assets less liabilities)7 159.6 145.1 146.0 146.0 151.6 158.6 161.6 162.2 161.7 159.6 164.2 161.2 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • November 2003 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 2002 2003 2003 Aug. Feb. Mar.' Apr.' May' June' July' Aug. Aug. 6 Aug. 13 Aug. 20 Aug. 27 Seasonally adjusted Assets 1 Bank credit 619.9 646.9r 663.5 655.0 669.6 672.3 649.9 630.6 633.9 635.6 619.4 634.4 2 Securities in bank credit 248.1 279.3r 283.8 277.3 288.5 288.4 267.7 267.5 259.3 268.6 268.6 269.4 3 U.S. government securities 81.8 116.7r 122.5 124.2 127.4 124.3 114.5 107.4 108.8 109.2 105.7 105.7 4 Other securities 166.3 162.7 161.3 153.1 161.2 164.1 153.2 160.0 150.5 159.4 162.8 163.7 5 Loans and leases in bank credit2 .... 371.9 367.6 379.7 377.7 381.0 383.9 382.2 363.1 374.6 367.0 350.9 365.0 6 Commercial and industrial 189.1 174.1 171.7 172.2 170.4 163.3 162.7 156.3 158.4 157.1 155.2 155.8 7 Real estate 18.9 19.7 19.8 19.0 19.3 19.4 19.4 19.1 19.3 19.3 18.9 18.9 8 Security1 91.5 108.2r 121.4 118.1 118.9 121.8 118.9 111.6 115.5 115.9 102.6 113.5 9 Other loans and leases 72.4 65.6 66.7 68.3 72.4 79.3 81.2 76.2 81.4 74.7 74.1 76.8 10 Interbank loans 17.9 27.0 27.2 22.4 24.6 30.7 33.1 32.4 32.9 27.8 35.0 33.2 11 Cash assets4 47.8 38.7 43.9 49.7 51.1 54.3 54.0 54.3 53.8 54.3 54.0 54.5 12 Other assets5 27.7 34.5r 30.0 32.5 36.6 36.7 33.2 36.3 37.3 39.6 38.6 33.2 13 Total assets6 712.9 746.7r 764.1 759.2 781.4 793.5 769.7 753.2 757.5 756.9 746.6 754.8 Liabilities 14 Deposits 497.6 442.8' 448.4 434.6 433.4 442.6 453.4 455.2 459.9 461.1 454.1 450.1 15 Transaction 10.1 10.3 11.5 11.2 10.8 11.4 11.4 11.8 11.1 11.5 11.8 12.9 16 Nontransaction 487.5 432.6 436.9 423.4 422.6 431.2 442.0 443.4 448.8 449.6 442.3 437.2 17 Borrowings 213.8 275.0' 293.2 297.7 305.1 315.8 297.0 293.6 308.3 307.5 277.9 283.9 18 From banks in the U.S 21.3 31.1 33.7 27.4 31.3 34.7 36.8 33.8 33.7 36.3 32.4 32.2 19 From others 192.5 243.9' 259.5 270.3 273.7 281.1 260.3 259.8 274.6 271.2 245.5 251.7 20 Net due to related foreign offices -86.2 -78.4 -83.8 -72.9 -77.9 -81.9 -86.0 -103.5 -104.6 -122.1 -96.5 -92.7 21 Other liabilities 97.6 99.6' 94.7 90.6 106.8 113.5 108.9 116.1 106.9 119.9 121.2 115.4 22 Total liabilities 722.9 738.9' 752.5 750.0 767.4 790.0 773.3 761.4 770.4 766.3 756.6 756.7 23 Residual (assets less liabilities)7 -10.0 7.8' 11.6 9.2 13.9 3.5 -3.6 -8.2 -13.0 -9.4 -10.0 -1.9 Not seasonally adjusted Assets 24 Bank credit 613.9r 651.4' 661.7 654.9 664.8 668.8 642.4 624.0 629.2 630.7 612.7 626.6 25 Securities in bank credit 248.1 279.3' 283.8 277.3 288.5 288.4 267.7 267.5 259.3 268.6 268.6 269.4 26 U.S. government securities 81.8 116.7' 122.5 124.2 127.4 124.3 114.5 107.4 108.8 109.2 105.7 105.7 27 Trading account 13.0 36.4 37.2 39.8 43.1 43.2 40.5 39.6 38.9 40.7 38.8 38.7 28 Investment account 68.7 80.3' 85.4 84.4 84.3 81.1 74.0 67.9 69.9 68.5 66.9 67.0 29 Other securities 166.3 162.7 161.3 153.1 161.2 164.1 153.2 160.0 150.5 159.4 162.8 163.7 30 Trading account 110.6 101.9' 101.6 97.9 105.2 105.8 95.8 99.8 92.2 99.1 101.8 103.0 31 Investment account 55.8 60.7 59.7 55.2 56.0 58.3 57.3 60.2 58.4 60.3 61.0 60.8 32 Loans and leases in bank credit2 .... 365.8 372.0 377.9 377.6 376.3 380.4 374.8 356.6 369.8 362.0 344.1 357.2 33 Commercial and industrial 187.7 175.6 173.2 171.3 168.6 162.8 161.8 155.0 157.1 156.0 154.4 154.1 34 Real estate 18.9 19.7 19.8 19.0 19.3 19.4 19.4 19.1 19.3 19.3 18.9 18.9 35 Security1 88.1 111.0 117.3 118.5 116.6 119.3 114.1 107.5 113.8 113.5 97.9 108.6 36 Other loans and leases 71.2 65.7 67.6 68.8 71.8 78.9 79.5 74.9 79.6 73.3 72.9 75.7 37 Interbank loans 17.9 27.0 27.2 22.4 24.6 30.7 33.1 32.4 32.9 27.8 35.0 33.2 38 Cash assets4 45.8 39.7 42.7 47.5 49.4 51.8 51.1 52.1 51.3 51.8 51.9 52.4 39 Other assets5 27.4 35.0' 30.7 32.4 36.7 35.3 32.1 35.8 36.6 38.8 37.9 33.1 40 Total assets6 704.5 752.7r 761.8 756.7 775.1 786.1 758.2 743.9 749.5 748.6 737.0 744.9 Liabilities 41 Deposits 480.7 453.0 452.4 440.6 438.8 440.8 443.7 439.7 446.6 445.1 437.6 435.9 42 Transaction 9.8 10.3 11.1 10.6 10.4 11.0 11.4 11.5 10.8 11.2 11.5 12.5 43 Nontransaction 470.8 442.7' 441.3 430.0 428.4 429.7 432.3 428.3 435.8 433.9 426.1 423.4 44 Borrowings 213.8 275.0' 293.2 297.7 305.1 315.8 297.0 293.6 308.3 307.5 277.9 283.9 45 From banks in the U.S 21.3 31.1 33.7 27.4 31.3 34.7 36.8 33.8 33.7 36.3 32.4 32.2 46 From others 192.5 243.9' 259.5 270.3 273.7 281.1 260.3 259.8 274.6 271.2 245.5 251.7 47 Net due to related foreign offices -87.9 -77.3 -81.6 -73.3 -77.5 -83.7 -89.3 -104.9 -109.1 -123.3 -98.5 -91.7 48 Other liabilities 96.5 100.4' 96.3 90.3 107.1 111.9 106.3 114.9 103.1 118.8 119.4 116.3 49 Total liabilities 703.1 751.1 760.3 755.3 773.5 784.8 757.6 743.3 748.9 748.0 736.4 744.3 50 Residual (assets less liabilities)7 1.4 1.6' 1.5 1.5 1.6 1.3 .6 .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 Liabilities1—Continued F. Memo items Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2002 2003 2003 Aug. Feb. Mar. Apr. May' June' July' Aug. Aug. 6 Aug. 13 Aug. 20 Aug. 27 Not seasonally adjusted MEMO Large domestically chartered banks. adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 112.3 116.8 115.1 105.7 128.1 135.0 112.5 96.5 98.6 97.0 96.4 92.3 2 Revaluation losses on off-balancesheet items8 94.2 94.9 91.3 81.4 105.1 110.0 85.3 79.4 80.5 79.8 80.7 76.7 3 Mortgage-backed securities' 340.4 377.0' 381.4 400.8 427.1 436.7 412.7 387.6 417.3 374.6 382.8 379.9 4 Pass-through 254.2' 276.9 276.2 288.6' 314.3 324.8 301.5 274.1 299.8 258.6 269.6 271.9 5 CMO, REMIC, and other 86.3 100.0 105.1 112.2 112.9 111.9 111.1 113.5 117.5 116.0 113.2 108.0 6 Net unrealized gains (losses) on available-for-sale securities10 9.1 11.7 11.7 10.1' 11.2 12.8 6.8 -.3 .7 -.1 .4 -.6 7 Off-shore credit to U.S. residents" .... 19.0 18.2 18.2 17.5 17.3 16.6 15.5 14.7 15.3 14.6 14.0 15.5 8 Securitized consumer loans12 143.3' 151.0' 152.9' 154.6' 155.3 157.3 161.6 162.5 162.6 162.5 162.8 162.3 9 Credit cards and related plans 125.5 134.8 136.7 138.7 139.4 140.6 144.0 144.5 144.3 144.3 144.8 144.5 10 Other 17.8' 16.2' 16.1' 15.9' 15.9 16.6 17.5 18.0 18.3 18.2 18.0 17.9 11 Securitized business loans12 17.8' 17.2' 15.8' 10.0 10.2 9.9 8.4 7.2 7.8 7.8 6.8 6.8 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities' 297.2 314.4' 325.5' 336.1' 337.1 336.8 332.0 330.3 329.6 332.0 330.1 329.0 13 Securitized consumer loans12 201.7' 203.8' 202.4' 204.6' 204.3 204.0 200.6 201.8 201.8 201.7 200.5 202.8 14 Credit cards and related plans 199.0 195.8 194.3 196.7' 196.5 196.3 193.0 194.2 194.2 194.1 192.9 195.2 15 Other 2.7' 8.0' 8.1' 7.9' 7.8 7.7 7.6 7.6 7.6 7.6 7.6 7.6 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 65.0 67.1 65.4 64.9 73.6 72.6 65.3 65.9 62.5 65.4 66.3 67.9 17 Revaluation losses on off-balancesheet items8 64.6 64.9 63.6 62.4 72.6 72.6 64.9 64.9 61.2 64.2 65.6 66.9 18 Securitized business loans12 9.1 4.6 4.1 3.3 3.0 2.5 1.5 1.4 1.5 1.4 1.4 1.4 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-I9 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 DomesticN onfinancialS tatistics • November 2003 1.32 COMMERCIAL PAPER OUTSTANDING Millions of dollars, seasonally adjusted, end of period Year ending December 2003 IItteemm 1998 1999 2000 2001 2002 Feb. Mar. Apr. May June July 1 All issuers 1,163,303 1,403,023 1,619,274 1,458,870 1,347,997 1,346,782 1,341,270 1,342,147 1,365,704 1,324,911 1,347,286 Financial companies' 2 Dealer-placed paper, total2 614,142 786,643 963,070 967,748 976,163 952,868 946,773 961,002 1,003,088 974,116 994,384 3 Directly placed paper, total3 322,030 337,240 312,771 266,276 217,787 239,037 244,504 232,879 222,597 219,960 218,311 4 Nonfinancial companies4 227,132 279,140 343,433 224,847 154,047 154,876 149,993 148,266 140,020 130,835 134,591 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Average Average Average Date of change Rate Period rate rate rate 2000—Jan. 1 8.50 2000 9.23 2001—Jan. 9.05 2002—Jan. 4.75 Feb. 3 8.75 2001 6.91 Feb. 8.50 Feb. 4.75 Mar. 22 9.00 2002 4.67 Mar. 8.32 Mar. 4.75 May 17 9.50 Apr. 7.80 Apr. 4.75 2000—Jan 8.50 May 7.24 May 4.75 2001—Jan. 4 9.00 Feb 8.73 June 6.98 June 4.75 Feb. 1 8.50 Mar. 8.83 July 6.75 July 4.75 Mar. 21 8.00 Apr 9.00 Aug. 6.67 Aug. 4.75 Apr. 19 7.50 May 9.24 Sept. 6.28 Sept, 4.75 May 16 7.00 June 9.50 Oct. 5.53 Oct. 4.75 June 28 6.75 July 9.50 Nov. 5.10 Nov. 4.35 Aug. 22 6.50 Aug 9.50 Dec. 4.84 Dec. 4.25 Sept. 18 6.00 Sept 9.50 Oct. 3 5.50 Oct 9.50 2003—Jan. 4.25 Nov. 7 5.00 Nov 9.50 Feb. 4.25 Dec. 12 4.75 Dec 9.50 Mar. 4.25 Apr. 4.25 2002—Nov. 7 4.25 May 4.25 June 4.22 2003—June 27 4.00 July 4.00 Aug. 4.00 Sept, 4.00 1. The prime rate is one of several base rates that banks use to price short-term business Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) loans. The table shows the date on which a new rate came to be the predominant one quoted monthly statistical releases. For ordering address, see inside front cover. by a majority of the twenty-five largest banks by asset size, based on the most recent Call Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.35 INTEREST RATES Money and Capital Markets Percent per year; figures are averages of business day data unless otherwise noted 2003 2003, week ending IItteemm 22000000 22000011 22000022 May June July Aug. Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 MONEY MARKET INSTRUMENTS 1 Federal funds1'2-1 6.24 3.88 1.67 1.26 1.22 1.01 1.03 1.04 0.97 0.98 1.18 1.00 2 Discount window primary credit2-4 n.a. n.a. n.a. 2.25 2.20 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Commercial paper3 5 6 Nonfinancial 3 I-month 6.27 3.78 1.67 1.21 1.06 1.01 1.03 1.02 1.03 1.03 1.04 1.02 4 2-month 6.29 3.68 1.67 1.20 1.03 1.02 1.03 1.04 1.03 1.03 1.03 1.03 5 3-month 6.31 3.65 1.69 1.19 1.01 1.01 1.04 1.03 1.03 1.04 1.05 1.04 Financial 6 1-month 6.28 3.80 1.68 1.24 1.08 1.02 1.04 1.04 1.04 1.04 1.05 1.04 7 2-month 6.30 3.71 1.69 1.22 1.04 1.03 1.05 1.04 1.05 1.05 1.06 1.05 8 3-month 6.33 3.65 1.70 1.20 1.02 1.03 1.06 1.04 1.05 1.06 1.07 1.07 Certificates of deposit, secondary market3-7 9 1-month 6.35 3.84 1.72 1.26 1.10 1.05 1.07 1.07 1.07 1.07 1.06 1.07 10 3-month 6.46 3.71 1.73 1.22 1.04 1.05 1.08 1.07 1.08 1.08 1.08 1.09 11 6-month 6.59 3.66 1.81 1.19 1.02 1.06 1.13 1.10 1.13 1.13 1.13 1.14 12 Eurodollar deposits, 3-month3,8 6.45 3.70 1.73 1.21 1.03 1.04 1.07 1.05 1.06 1.07 1.07 1.07 U.S. Treasury bills Secondary market3-5 13 4-week n.a. 2.43 1.60 1.06 0.96 0.88 0.93 0.92 0.90 0.92 0.94 0.97 14 3-month 5.82 3.40 1.61 1.07 0.92 0.90 0.95 0.95 0.94 0.94 0.95 0.98 15 6-month 5.90 3.34 1.68 1.08 0.92 0.95 1.03 1.00 1.02 1.03 1.03 1.04 U.S. TREASURY NOTES AND BONDS Constant maturities9 16 1-year 6.11 3.49 2.00 1.18 1.01 1.12 1.31 1.22 1.26 1.29 1.33 1.35 17 2-year 6.26 3.83 2.64 1.42 1.23 1.47 1.86 1.71 1.77 1.82 1.89 1.98 18 3-year 6.22 4.09 3.10 1.75 1.51 1.93 2.44 2.27 2.32 2.41 2.47 2.55 19 5-year 6.16 4.56 3.82 2.52 2.27 2.87 3.37 3.31 3.24 3.35 3.39 3.49 20 7-year 6.20 4.88 4.30 3.07 2.84 3.45 3.96 3.91 3.84 3.97 3.99 4.04 21 10-year 6.03 5.02 4.61 3.57 3.33 3.98 4.45 4.40 4.34 4.49 4.47 4.49 22 20-year 6.23 5.63 5.43 4.52 4.34 4.92 5.39 5.34 5.34 5.45 5.39 5.38 Treasury long-term average'0 " 23 25 years and above n.a. n.a. 5.41 4.61 4.45 5.00 5.41 5.38 5.38 5.48 5.41 5.37 STATE AND LOCAL NOTES AND BONDS Moody's series'2 24 5.58 5.01 4.87 4.16 4.07 4.59 4.82 4.91 4.85 4.97 4.67 4.80 75 Baa 6.19 5.75 5.64 4.91 4.68 5.17 5.42 5.47 5.45 5.57 5.27 5.40 26 Bond Buyer series'-' 5.71 5.15 5.04 4.41 4.33 4.74 5.10 5.07 5.06 5.18 5.10 5.07 CORPORATE BONDS 27 Seasoned issues, all industries14 7.98 7.49 7.10 5.88 5.70 6.13 6.46 6.44 6.44 6.52 6.46 6.43 Rating group 28 Aaa15 7.62 7.08 6.49 5.22 4.97 5.49 5.88 5.84 5.83 55..9933 5.89 55..8877 29 Aa 7.83 7.26 6.93 5.85 5.72 6.07 6.31 6.33 6.31 6.36 6.29 6.28 30 A 8.11 7.67 7.18 6.08 5.92 6.35 6.64 6.62 6.62 6.69 6.63 6.61 31 Baa 8.37 7.95 7.80 6.38 6.19 6.62 7.01 6.97 6.98 7.07 7.02 6.97 MEMO Dividend-price ratio'6 32 Common stocks 1.15 1.32 1.61 1.72 1.64 1.64 1.67 1.67 1.69 1.69 1.66 1.65 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly 8. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for statistical release. For ordering address, see inside front cover. indication purposes only. 1. The daily effective federal funds rate is a weighted average of rates on trades through 9. Yields on actively traded issues adjusted to constant maturities. New York brokers. 10. Based on the unweighted average of the bid yields for all Treasury fixed-coupon 2. Weekly figures are averages of seven calendar days, ending on Wednesday of the securities with remaining terms to maturity of 25 years and over. current week; monthly figures include each calendar day in the month. 11. A factor for adjusting the daily long-term average in order to estimate a 30-year rate 3. Annualized using a 360-day year or bank interest. can be found at http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/ 4. The rate charged for discounts made and advances extended under the Federal Re- ltcompositeindex.html. serve's primary credit discount window program, which became effective January 9, 2003. 12. General obligation bonds based on Thursday figures; Moody's Investors Service. This rate replaces that for adjustment credit, which was discontinued after January 8, 2003. 13. State and local government general obligation bonds maturing in twenty years are used For further information, see http://www.federalreserve.gov/boarddocs/press/bcreg/2002/ in compiling this index. The twenty-bond index has a rating roughly equivalent to Moody's 200210312/default.htm. The rate reported is that for the Federal Reserve Bank of New York. A1 rating. Based on Thursday figures. Historical series for the rate on adjustment credit is available at: hup:// 14. Daily figures are averages of Aaa, Aa, A, and Baa yields from Moody's Investors www.federalreserve.gov/releases/h 15/data.htm. Service. Based on yields to maturity on selected long-term bonds. 5. Quoted on a discount basis. 15. Effective December 7, 2001, the Moody's Aaa yield includes yields only for industrial 6. Interest rates interpolated from data on certain commercial paper trades settled by the firms. Prior to December 7, 2001, the Aaa yield represented both utilities and industrial. Depository Trust Company. The trades represent sales of commercial paper by dealers or 16. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in direct issuers to investors (that is, the offer side). See the Board's Commercial Paper web the price index. pages (http://www.federalreserve.gov/releases/cp) for more information. SOURCE: U.S. Department of the Treasury. 7. An average of dealer offering rates on nationally traded certificates of deposit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • November 2003 1.36 STOCK MARKET Selected Statistics 2002 2003 IInnddiiccaattoorr 22000000 22000011 22000022 Dec. Jan. Feb. Mar. Apr. May June July Aug. 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 5,075.76 5,055.78 4,738.56 4,724.22 4,977.45 5,269.96 5,583.60 5,567.94 5,580.87 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 809.40 749.46 656.44 593.15 587.78 553.90 558.10 583.74 613.26 649.25 648.00 651.19 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 414.73 444.45 430.63 401.39 394.60 367.55 366.90 395.85 425.12 441.81 445.29 451.31 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 478.99 377.72 260.50 236.71 236.42 214.64 211.45 221.06 238.33 254.16 244.67 238.06 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 552.48 596.61 554.88 519.72 522.51 485.72 486.71 522.05 549.91 579.48 588.81 582.20 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111-------44444443333333 ======= 11111110000000)))))))''''''' 1,427.22 1,194.18 993.94 899.18 895.84 837.62 846.62 890.03 935.96 988.00 992.54 989.53 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,, 1111111999999977777773333333 ======= 55555550000000)))))))======= 922.22 879.08 860.11 823.77 824.64 818.84 822.34 837.92 894.74 962.46 959.26 960.50 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 1,026,867 1,216,529 1,411,689 1.210,332 1,441,846 1,302,011 1,403,742 1,381,580 1,455,858 1,472,560 1,412,818 1,175,615 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 198,790 150,450 134,380 134,380 134,910 134,030 135,910 140,450 146,380 148,550 148,450 149,660 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss4444444 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss5555555 100,680 101,640 95.690 95.690 96.430 95,400 90.830 88,770 88,540 87,920 91,210 88,040 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 84,400 78,040 73,340 73,340 66,200 67,260 68,860 70,080 71,270 74,350 76,170 72,000 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 al broker-dealers has 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971. included credit extended against stocks, convertible bonds, stocks acquired through the On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the exercise of subscription rights, corporate bonds, and government securities. Separate report- initial margin required for writing options on securities, setting it at 30 percent of the current ing of data for margin stocks, convertible bonds, and subscription issues was discontinued in market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the April 1984. required initial margin, allowing it to be the same as the option maintenance margin required 4. Free credit balances are amounts in accounts with no unfulfilled commitments to by the appropriate exchange or self-regulatory organization; such maintenance margin rules brokers and are subject to withdrawal by customers on demand. must be approved by the Securities and Exchange Commission. 5. Series initiated in June 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 2001 2002 2003 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 5,753.9 5,834.5 5,970.3 6,032.4 6,153.3 6,255.4 6,433.0 6,487.7 6,697.1 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 5 Agency securities 27.1 27.0 26.8 26.4 26.8 27.2 27.3 26.9 27.0 6 Held by public 27.1 27.0 26.8 26.4 26.8 27.2 27.3 26.9 27.0 7 Held by agencies .0 .0 .0 .0 .0 .0 .0 .0 .0 8 Debt subject to statutory limit 5,645.0 5,732.6 5,871.4 5,935.1 6,058.3 6,161.4 6,359.4 6,400.0 6,625.5 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 By type 2 Interest-bearing 5,766.1 5,618.1 5,930.8 6,391.4 6,216.3 6,391.4 6,474.0 6,656.5 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 holder' 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 Banks'' 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 70 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 2.3 Savings bonds 186.4 184.8 190.3 194.9 193.3 194.9 196.9 199.1 74 Pension funds 321.0 304.1 281.6 289.9 284.9 289.9 244.2 254.5 75 Private 109.8 108.4 104.2 113.6 110.9 113.6 66.9 69.1 76 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 Stales 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 NonfinancialS tatistics • November 2003 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages 2003 2003, week ending IItteemm May June July July 2 July 9 July 16 July 23 July 30 Aug. 6 Aug. 13 Aug. 20 Aug. 27 By type of security 1 U.S. Treasury bills 48,474 50,058 38,948 55,708 45,238 34,925 29,761 40,126 40,435 34,249 3344,,881155 4444,,775599 Treasury coupon securities by maturity 2 Three years or less 167,853 152.654 143,806 165,529 122,801 123,842 138,491 164,430 220077,,665522 113377,,227799 110055,,771188 113300,,555533 3 More than three but less than or equal to six years 139,291 131,546 137,381 153,869 130,356 118,553 125,366 155,688 195,179 140,241 9922,,772266 111144,,881155 4 More than six but less than or equal to eleven years 117,206 106,432 131,663 111.966 122,596 125,941 120,954 152,760 183,990 156,274 94,188 93,774 5 More than eleven 36,907 31,439 31,296 32,948 29,077 28,365 26,363 36,986 47,739 28,541 22,577 20,017 6 Inflation-indexed2 4,303 2.949 6,157 2,666 11,622 7,639 4,498 3,707 4,420 3,029 3,318 2,843 Federal agency and governmentsponsored enterprises 7 Discount notes 60,395 62,416 52.616' 64.852 50,285 52,219 48,328 52,289 62,536 6600,,442222 5566,,669966 4477,,997799 Coupon securities by maturity 8 Three years or less 11,262 13.029 11,854' 12,786 9,687 11,484 12,064 13,121 13,116 1111,,779999 1111,,448899 1111,,229999 9 More than three years but less than or equal to six years 10,180 10,171 8.078' 11,133 5,060 5,751 12,237 7,761 6,465 5,548 33,,776688 33,,664422 10 More than six years but less than or equal to eleven years .... 7,723 9,211 6,822 5,889 5,598 8,417 6,383 6,657 8,628 6,174 3,564 4,190 11 More than eleven years 1,078 1,486 1,048 1,311 911 1,042 981 1,039 1,478 897 625 469 12 Mortgage-backed 255,830 228,360 242,916 216,071 327,320 271,103 202,235 199,351 239,283 311,505 167,495 104,888 Corporate securities 13 One year or less 121,358 140,708 129,914 165,464 126,939 134,641 124,979 118,830 127,184 130,215 148,655 129,006 14 More than one year 23,053 21,940 20,616 22,144 16,891 21,652 22,150 20,597 19,707 16,832 15,134 14,020 By type of counterparty With interdealer broker 15 U.S. Treasury 236,729 219,499 222,140 230,978 208,710 201,354 204,364 251,770 302,845 227,331 116622,,445566 118866,,550033 16 Federal agency and governmentsponsored enterprises 10,429 11,148 8,211 9,131 6,695 7,829 9,099 8,357 9,182 7,809 6,301 5,980 17 Mortgage-backed 71,749 62,176 64,153 61,368 77,196 66,859 61,978 55,577 57,774 75,236 51,455 27,525 18 Corporate 532 581 587 595 372 505 630 776 676 592 601 466 With other 19 U.S. Treasury 277,305 255,580 267,111 291,708 252,981 237.910 241,070 301,927 376,570 272,282 119900,,888866 222200,,225588 20 Federal agency and governmentsponsored enterprises 80,208 85,166 72,207' 86,838 64,846 71,084 70,895 72,511 83,039 77,031 69,841 61,598 21 Mortgage-backed 184,080 166,185 178,763 154,703 250,124 204,244 140,257 143,774 181,508 236,269 116,041 77,363 22 Corporate 143,879 162,067 149,944 187,012 143,458 155,789 146,500 138,652 146,214 146,455 163,188 142,561 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 All 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2003 2003, week ending IItteemm,, bbyy ttyyppee ooff sseeccuurriittyy May June July July 2 July 9 July 16 July 23 July 30 Aug. 6 Aug. 13 Aug. 20 Net outright positions2 1 U.S. Treasury bills 10,092 9,882 10,596 -721 7,986 6,445 17,917 11,936 19,935 21,752 21,314 Treasury coupon securities by maturity 2 Three years or less -12,954 -11,958 -18,548 -12,044 -20,746 -26,386 -13,692 -17,454 -2,969 -9,011 -12,258 3 More than three years but less than or equal to six years -42,497 -45,702 -54,366 -52,478 -50,779 -53,573 -58,291 -56,769 -44,503 -39,039 -42,893 4 More than six but less than or equal to eleven years -8,149 -11,295 -18,655 -21,939 -18,959 -18,430 -18,715 -17,893 -16,455 -13,698 -10,152 5 More than eleven 3,180 680 4,869 2,551 4,440 4,797 4,738 6,455 2,835 1,742 3,593 6 Inflation-indexed -127 854 911 848 1,524 1,134 -93 1,085 988 622 -30 Federal agency and governmentsponsored enterprises 7 Discount notes 62,728 61,088 59,856 64,831 67,610 66,300 57,106 49,592 41,628 53,754 42,795 Coupon securities, by maturity 8 Three years or less 20,165 17,246 15,782 17,688 17,293 17,562 13,110 15,413 10,228 12,736 14,789 9 More than three years but less than or equal to six years 4,807 2,400 4,399 2,104 3,842 4,364 4,727 5,704 1,714 806 588 10 More than six but less than or equal to eleven years 3,875 4,057 5,336 4,516 4,648 7,256 5,834 4,137 3,262 3,304 2,470 11 More than eleven 2,366 2,748 2,204 2,898 2,454 2,340 2,143 1,771 1,569 1,635 1,545 12 Mortgage-backed 42,381 55,930 57,244 65,442 61,991 62,210 61,753 45,610 22,725 19,517 19,391 Corporate securities 13 One year or less 25,518 33,054 32,644r 32,457 22,859 36,888 38,722 32,083 33,190 40,351 29,484 14 More than one year 58,309 58,821 65,577r 56,260 52,296 55,365 75,715 79,440 80,653 81,434 80,703 Financing1 Securities in, U.S. Treasury 15 Overnight and continuing 694,287 739,231 726,387 745,495 734,326 734,833 711,835 714,798 756,459 688,920 724,763 16 Term 881,597 944,185 937,832 831,069 871,586 922,611 978,365 997,897 1,017,424 1,021,876 849,260 Federal agency and governmentsponsored enterprises 17 Overnight and continuing 152,445 151,751 147,727 144,996 152,938 151,908 145,151 140,723 154,493 162,483 158,073 18 Term 243,263 254,853 245,668 239,480 244,501 248,488 248,088 244,102 240,508 244,190 230,255 Mortgage-backed securities 19 Overnight and continuing 42,935 36,223 37,704 31,989 41,047 35,677 38,519 37,599 34,959 41,193 44,250 20 Term 247,674 249,278 253,576 247,109 250,192 247,779 261,280 256,505 256,354 250,742 242,453 Corporate securities 21 Overnight and continuing 68,094 71,329 76,154 73,975 75,059 76,486 76,948 76,580 77,312 76,186 75,442 22 Term 27,031 28,474 30,092 29,879 30,474 30,264 29,930 29,804 29,791 29,847 30,339 MEMO Reverse repurchase agreements 23 Overnight and continuing 482,620 510,880 472,181 482,902 483,051 476,612 457,947 465,221 491,999 448,293 471,250 24 Term 1,220,752 1,297,890 1,288,014 1,177,830 1,226,445 1,271,003 1,332,263 1,343,545 1,359,981 1,364,600 1,179,112 Securities out, U.S. Treasury 25 Overnight and continuing 674,535 711,222 686,520 690,942 688,981 695,254 673,657 683,907 707,630 647,169 685,678 26 Term 801,453 849,957 832,743 739,089 771,753 813,745 868,056 889,446 935,844 939,314 762,225 Federal agency and governmentsponsored enterprises 27 Overnight and continuing 297,432 295,952 286,946 287,582 298,345 289,818 283,984 277,779 270,689 285,503 273,716 28 Term 186,301 195,981 190,018 185,252 192,686 195,836 188,841 184,957 183,815 190,915 178,610 Mortgage-backed securities 29 Overnight and continuing 357,464 356,571 372,739 352,456 348,669 390,005 391,859 368,093 359,630 382,491 360,126 30 Term 147,596 141,975 160,896 138,058 146,109 158,812 173,779 171,387 161,045 171,184 175,097 Corporate securities 31 Overnight and continuing 146,125 156,474 159,712 163,253 154,736 163,731 158,566 160.971 158,525 163,204 152,417 32 Term 25,505 26,437 27,191 23,959 25,444 27,989 28,007 27,500 32,432 31,792 31,862 MEMO Repurchase agreements 33 Overnight and continuing 1,262,067 1,305,120 1,276,928 1,264,178 1,261,107 1,318,921 1,275,855 1,257,702 1,261,321 1,248,439 1.237,390 34 Term 1,106,335 1,163,284 1,164,237 1,045,353 1,090,292 1,149,272 1,210,387 1,226,689 1,264,172 1,282,554 1,104,971 NOTE. Major changes in the report form tiled 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 (T1IS) 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 • November 2003 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2003 AAggeennccyy 11999999 22000000 22000011 22000022 Feb. Mar. Apr. May June 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 26,408 26,886 26,450 26,500 27,015 3 Defense Department1 6 6 6 6 6 6 6 6 6 4 Export-Import Bank2-1 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 26,828 152 166 195 218 227 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 26,402 26,880 26,444 26,494 27,009 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 529,005 594,404 623,740 674,841 684.495 687,573 706,215 717,900 712,447 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 547,619 642,700 763,500 851,000 871,000 873,900 871,500 876,200 884,100 14 Farm Credit Banks8 68,883 74,181 76,673 85,088 86,045 86,802 87,591 89,007 89,130 15 Student Loan Marketing Association' 41,988 45,375 48,350 47,900 50,900 49,100 51,200 54,200 52,700 16 Financing Corporation 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation" 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation'2 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt11 42,152 40,575 39,096 37,017 35,794 35,780 35,808 36,383 36,361 Lending to federal and federally sponsored agencies 20 Export-Import Bank1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2.1 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 14,750 14,750 14,760 14,793 15,383 27 Other 21,402 22,174 25,220 22,528 21,044 21,030 21,048 21,590 20,978 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 2003 TTyyppee ooff iissssuuee oorr iissssuueerr,, 22000000 22000011 22000022 oorr uussee Jan. Feb.1 Mar.r Apr.1 May' June' July' Aug. 1 All issues, new and refunding1 180,403 292,027 364,073r 27,138 30,171 28,096 34,911 36,029 48,346 33,146 25,711 By type of issue 2 General obligation 64,475 118,554 145,323 8,112 12,772 9,794 14,815 13,073 23.789 12,595 7.142 3 Revenue 115,928 170,047 214,788 17,049 17,399 18,303 20,095 22,956 24,557 20,551 18.569 By type of issuer 4 State 19,944 30,099 33,931 1,927 3,604 1,277 5,521 2,808 14,411 2,924 2,185 5 Special district or statutory authority2 121,185 197,462 259,070 17,979 20,893 19,777 23,911 22,879 26,458 22,008 17,074 6 Municipality, county, or township 39,273 61,040 67,121 5,290 5,674 7,043 5,478 10,342 7,477 8,215 6,452 7 Issues for new capital 154,257 200,363 243,212r 18,809r 20,339 15,944 24,708 21,243 36,037 22,142 18,421 By use of proceeds 8 Education 38,665 50,054 57,894 4,823 7,067 5,354 7,591 7,128 6,111 4,967 6,696 9 Transportation 19,730 21,411 22,093 1,417 1,625 1,233 3,479 1.891 2,049 2,637 3,089 10 Utilities and conservation 11,917 21,917 33,404 2,196 183 599 842 1,008 2,021 361 746 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 7,227 422 1,118 1,602 1,828 3,209 1,787 2,462 1,776 13 Other purposes 47,309 55,733 73,033 7,400 7,189 3,724 8,396 5,603 19,880 6,864 3,718 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 Dec. Jan. Feb. Mar. Apr. May June July 1 All issues' 1,079,727 1,541,821 1,429,298 127,061 127,304 134,957 155,821 125,223 170,003 179,615 126,114 2 Bonds2 944,810 1,413,267 1,318,863 120,183 120,177 127,818 149,928 116,861 161,265 163,726 116,806 By type of offering 3 Sold in the United States 822,012 1,356,879 1,232,618 114,332 113,951 118,567 144.315 114,277 149,437 147,835 104.875 4 Sold abroad 122,798 56,389 86,246 5,851 6,226 9,250 5,613 2,585 11,828 15,890 11,931 MEMO 5 Private placements, domestic 19,442' 24,415' 18,870' 2,064' 4,553' 1,087' 1,760' 1,189' 1,804' 4,140' n.a. By industry group 6 Nonfinancial 258,804 459,560 282,484 20,751 28,461 26,991 27,514 22,153 48,353 52,139 28,425 7 Financial 686,006 953,707 1.036,379 99,433 91,716 100,826 122,414 94,708 112,912 111,587 88,381 8 Stocks1 311,941 230,632 170,673 6,878 7,127 7,139 5,893 8,362 8,738 15,889 9,308 By type of offering 9 Public 134,917 128,554 110,435 6,878 7,127 7,139 5,893 8,362 8.738 15,889 9,308 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 4,154 3,793 2,679 1,053 1,592 3,075 4,727 3,333 12 Financial 16,548 50,977 48,320 2,724 3,334 4,460 4,840 6.770 5,663 11,162 5,975 I. 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 • November 2003 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2003 IItteemm 22000011 22000022'' Jan. Feb. Mar. Apr. May June July' Aug. 1 Sales of own shares2 1,806,474 1,825,840 152,647 122,321 140,643 141,465 142,688 157,773 153,832 138,802 2 Redemptions of own shares 1,677,266 1,702,676 138,951 113,643 129,337 112,109 118,794 130,024 139,690 125,177 3 Net sales3 129,208 123,164 13,696 8,678 11,306 29,356 23,894 27,749 14,142 13,625 4 Assets4 4,689,624 4,119,322 4,060,568 4,031,818 4,059,934 4,327,560 4,563,023 4,653,085 4,714,516 4,828,207 5 Cash5 219,620 208,479 212,792 199,546 214,146 230,032 232,836 236,547 220,372 227,507 6 Other 4,470,004 3,910,843 3,847,776 3,832,272 3,845,788 4,097,528 4,330,187 4,416,538 4,494,144 4,600,700 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 Receivables' Billions of dollars, amounts outstanding 2003 TTyyppee ooff ccrreeddiitt Feb.' Mar.' Apr.' May June' July Seasonally adjusted 1 Total l,186.3r l,248.1r l,275.9r 1,275.7 1,283.1 1,290.3 l,297.1r 1,286.0 1,291.5 2 Consumer 465.0' 514.8' 518.6' 518.3 521.7 525.3 523.6' 516.8 516.2 3 Real estate 198.9 207.7 216.5 215.6 215.4 220.4 224.6 224.1 231.9 4 Business 522.3 525.6 540.9 541.8 546.0 544.6 548.9 545.1 543.5 Not seasonally adjusted 5 Total l,192.8r l,255.3r l,283.4r 1,276.0 1,286.3 1,293.4 l,297.4r 1,293.1 1,288.0 6 Consumer 469.0' 519.7' 523.9' 518.6 518.2 521.7 519.1' 516.2 516.2 7 Motor vehicle loans 141.6 173.9 160.2 162.4 156.2 160.9 162.8' 166.6 172.7 8 Motor vehicle leases 108.2 103.5 83.3 80.3 81.8 81.2 79.0 76.7 74.8 9 Revolving2 37.6 31.5 38.9 37.9 36.3 37.6 34.5' 34.6 35.0 10 Other3 41.3r 32.7' 38.7' 39.8 40.9 42.4 42.5' 43.1 42.0 Securitized assets4 11 Motor vehicle loans 97.1 131.9 151.9' 148.6 152.1 149.4 150.3' 146.5 143.6 12 Motor vehicle leases 6.6r 6.8 5.7' 5.6 6.2 6.1 6.0' 6.0 5.9 13 Revolving 19.6 25.0 31.1' 30.1 30.7 30.6 30.7 29.5 29.2 14 Other 17.1 14.3 14.0' 13.8 13.9 13.6 13.2' 13.2 12.9 15 Real estate 198.9 207.7 216.5 215.6 215.4 220.4 224.6 224.1 231.9 16 One- to four-family 130.6 120.1 135.0 134.3 133.9 138.8 143.0 142.5 150.7 17 Other 41.7 41.2 39.5 39.9 40.1 40.4 40.7 40.9 40.8 Securitized real estate assets4 18 One- to four-family 24.7' 40.7 39.7' 39.1 39.2 38.9 38.6' 38.4 38.1 19 Other 1.9' 5.7 2.2 2.2 2.2 2.2 2.2 2.2 2.2 20 Business 525.0 527.9 543.0 541.9 552.8 551.4 553.7 552.9 539.9 21 Motor vehicles 75.5 54.0 60.7 60.3 65.3 64.1 68.0 69.9 61.9 22 Retail loans 18.3 16.1 15.4 14.8 16.3 16.8 17.1 17.2 17.7 2.3 Wholesale loans5 39.7 20.3 29.3 30.5 34.0 34.5 36.1 38.4 30.0 24 Leases 17.6 17.6 16.0 15.0 15.0 12.8 14.8 14.2 14.2 25 Equipment 283.5 289.4 292.1 288.9 287.5 286.0 284.5 283.4 281.0 26 Loans 70.2 77.8 83.3 80.3 78.0 79.0 77.6 77.5 76.3 27 Leases 213.3 211.6 208.8 208.6 209.5 207.0 207.0 205.9 204.7 28 Other business receivables6 99.4 103.5 102.5 104.4 101.1 103.0 103.1 102.6 102.9 Securitized assets4 29 Motor vehicles 37.8 50.1 50.2 50.9 53.1 53.1 52.2 50.0 46.7 30 Retail loans 3.2' 5.1 2.4' 2.3 2.2 2.2 2.2' 2.2 2.2 31 Wholesale loans 32.5' 42.5 45.9' 46.8 48.6 48.6 47.8' 45.6 42.3 32 Leases 2.2' 2.5 1.9' 1.8 2.2 2.2 2.2' 2.1 2.1 33 Equipment 23.1 23.2 20.2 19.4 21.9 21.4 21.6 23.5 23.7 34 Loans 15.5' 16.4 13.0' 12.3 12.2 11.8 12.0' 12.9 13.1 35 Leases 7.6' 6.8 7.2 7.1 9.7 9.6 9.6' 10.6 10.6 36 Other business receivables6 5.6' 7.7 17.4' 18.0 23.9 23.9 24.2' 23.6 23.8 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 DomesticN onfinancialS tatistics • November 2003 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2003 Feb. Mar. Apr. May June July Aug. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 234.5 245.0 261.1 235.1 252.9 266.0 275.3 283.3 283.4 280.1 7 Amount of loan (thousands of dollars) 177.0 184.2 197.0 179.3 184.2 205.0 210.7 213.7 214.4 212.1 3 Loan-to-price ratio (percent) 77.4 77.3 77.8 78.0 76.2 78.8 78.7 78.0 78.2 78.0 4 Maturity (years) 29.2 28.8 28.9 28.3 28.2 29.0 28.8 28.8 28.7 28.5 5 Fees and charges (percent of loan amount)2 .70 .67 .62 .37 .40 .62 .61 .64 .62 .66 Yield (percent per year) 6 Contract rate1 7.41 6.90 6.35 5.76 5.69 5.83 5.66 5.42 5.44 5.68 7 Effective rate1-' 7.52 7.00 6.44 5.82 5.75 5.92 5.75 5.51 5.53 5.77 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 5.03 4.94 4.97 4.55 4.27 5.02 5.48 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 1 1T otal 610,122 707.015 790,800 816,747 815,964 817,894 815,560 812,467 836,104 863,170 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 40,420 34,304 43,028 43,749 41,182 72,447 82,656 Mortgage commitments (during period) 15 Issued7 163.689 304,084 400,327 52,479 42,005 42,906 75,569 79,172 n.a. n.a. 16 To sell8 11,786 7,586 12,268 1,241 2,457 1,479 1,785 3,657 n.a. n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period / 17 Total 385,693 491,719 568,173 561,534 569,522 568,975 572,801 586,361 595,202 615,986 18 FHA/VA insured 3,332 3,506 4,573 3,796 3,540 n.a. n.a. n.a. n.a. n.a. 19 Conventional 382,361 488,213 563,600 557,738 565,982 n.a. n.a. n.a. n.a. n.a. Mortgage transactions (during period) 70 174,043 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 166,901 389,611 547,046 41,831 59,065 51,737 66,175 58,124 70,269 91,198 22 Mortgage commitments contracted (during period)9 169,231 417,434 620,981 48,446 69,200 n.a. 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 A33 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 2002 2003 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999999 22000000 22000011 Ql Q2 Q3 04 Ql 1 All holders 6,315,447 6,884,942 7,585,319 7,752,374 7,967,494 8,201,739 8,459,605 8,671,432 By type of property 7 One- to tour-family residences 4,787,225 5,205,428 5,738,1 11 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 1.056,516 1,166,933 1,281,168 1,299,634 1,329,097 1,353,685 1,387,110 1,407,138 5 Farm 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 10 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 17 Savings institutions' 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 73 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 76 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 28 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 30 Farm 4,268 4,148 3,952 3,855 3,817 3,766 3,700 3,590 31 Federal Housing Admin, and Dept. of Veterans Affairs 3,712 3,507 3,290 3,361 3,473 2,973 3,854 3,824 37 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 Domestic NonfinancialS tatistics • November 2003 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2003 Feb/ Mar.r Apr/ Mayr June' July Seasonally adjusted 1 Total 1,559,532 1,666,816 1,726,120 1,743,989 1,746,797 1,757,537 1,768,250 1,768,401 1,774,431 2 Revolving 667,395 701,285 712,002 718,771 720,594 723,272 727,892 726,620 726,947 3 Nonrevolving2 892,137 965,531 1.014,118 1,025,219 1,026,203 1,034,264 1,040,358 1.041.781 1,047,484 Not seasonally adjusted 4 Total 1,593,116 1,701,856 1,761,968 1,742,983 1,736,533 1,746,056 1,756,349 1,759,279 1,763,092 By major holder Commercial banks 541,470 558,421 587.165 581,501 575,275 576,936 582,413 584,294 582,383 6 Finance companies 219,848 236,559 232,269 232,890 225,229 231,262 228,853 231,939 237,173 7 Credit unions 184,434 189.570 195,744 195,003 196,441 198,237 200,321 202,012 204,060 8 Savings institutions 64,557 69.070 68,494 68,444 68,418 70,116 71,871 73,570 73,452 9 Nonfinancial business 82,662 67,955 56.894 49,564 48,479 47,715 48,132 47,599 47,165 10 Pools of securitized assets3 500,145 580.281 621,402 615,581 622,692 621,790 624,759 619,866 618,858 By major type of credit4 1 1 Revolving 693,020 727,297 737,993 718,991 713,465 719,469 723,449 723,462 721,107 12 Commercial banks 218,063 224,878 230.990 218,844 212,452 213,069 217,685 217.453 214,712 13 Finance companies 37,627 31,538 38.948 37,947 36,334 37,609 34,498 34,608 35,047 14 Credit unions 22.226 22.265 22,228 21,096 20,722 20,883 20,964 21,076 21,196 15 Savings institutions 16,560 17,767 16,225 16.064 15,980 17,022 18,099 19,141 18,919 16 Nonfinancial business 42,430 29.790 19.221 14,203 13,666 13,112 13,293 12,908 12,657 17 Pools of securitized assets3 356,114 401,059 410,381 410,837 414.311 417,773 418,910 418,276 418,575 18 Nonrevolving 900,096 974,559 1.023,975 1,023,992 1.023,069 1,026,587 1,032,900 1,035,817 1,041,986 19 Commercial banks 323,407 333,543 356.175 362.657 362,823 363,866 364,728 366,841 367,672 20 Finance companies 182,221 205.021 193,321 194,944 188,895 193,653 194,355 197,331 202,125 21 Credit unions 162,208 167,305 173.516 173,907 175,719 177,354 179,357 180,936 182.864 22 Savings institutions 47,997 51,303 52,269 52,380 52,438 53,094 53,773 54,429 54,533 23 Nonfinancial business 40,232 38,165 37,673 35,361 34,813 34,603 34,839 34,691 34,508 24 Pools of securitized assets3 144,031 179,222 211.021 204.744 208,381 204,017 205,849 201,590 200,283 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 2003 IItteemm 22000000 22000011 22000022 Jan. Feb. Mar. Apr. May June July INTEREST RATES Commercial banks2 1 48-month new car 9.34 8.50 7.54 n.a. 7.11 n.a. n.a. 7.05 n.a. n.a. 2 24-month personal 13.90 13.22 12.25 n.a. 11.70 n.a. n.a. 12.19 n.a. n.a. Credit card plan 3 All accounts 15.71 14.89 13.42 n.a. 13.20 n.a. n.a. 12.90 n.a. n.a. 4 Accounts assessed interest 14.91 14.44 13.09 n.a. 12.85 n.a. n.a. 12.82 n.a. n.a. Auto finance companies 5 New car 6.61 5.65 4.29 3.13 3.99 3.83 2.51 2.40 2.93 3.28 6 Used car 13.55 12.18 10.74 10.37 10.43 10.16 9.91 9.82 9.81 9.77 OTHER TERMS3 Maturity (months) 7 New car 54.9 55.1 56.8 58.5 59.2 59.5 60.1 60.7 62.4 62.7 8 Used car 57.0 57.5 57.5 57.5 57.7 57.8 57.7 57.7 57.8 57.8 Loan-to-value ratio 9 New car 92 91 94 96 97 96 97 97 97 95 10 Used car 99 100 100 100 99 99 99 99 100 100 Amount financed (dollars) 11 New car 20.923 22,822 24,747 26,443 24,864 25,152 27,540 27,920 26,945 26,129 12 Used car 14,058 14,416 14,532 14,499 14,231 14.253 14,475 14,568 14,567 14,632 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 A35 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 2003 Q4 Q! Q2 Q3 Q4 QI Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors . . 788.1 1,041.9 1,030.9 853.5 1,114.4 1,163.5 992.5 1,628.8 1,338.3 1,539.0 1,243.4 2,523.8 By sector and instrument 2 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 -87.3 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 -38.0 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 12 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 13 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 1 16.5 95.2 130.8 83.2 127.8 15 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 72.0 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 1,000.2 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 21 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 I.I 18.4 -48.4 24 Commercial paper 3.7 7.8 16.3 31.7 -14.2 5.9 66.8 36.5 3.9 37.3 52.6 73.5 25 Bonds 61.4 22.8 1.9 15.2 -24.5 17.0 -14.5 -54.0 -35.3 -30.1 -29.4 -93.5 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 -4.0 -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 859.9 1,073.1 1,043.9 910.5 1,064.6 1,166.9 1,057.5 1,630.9 1,294.2 1,540.0 1,261.8 2,475.4 Financial sectors 29 Total net borrowing by financial sectors 662.2 1,085.6 1,073.5 821.8 934.0 964.4 866.1 867.2 858.5 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 85.1 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 NonfinancialS tatistics • November 2003 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS'—Continued Billions of dollars; quarterly data at seasonally adjusted annual rates 2001 2002 2003 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999977 11999988 11999999 22000000 22000011 Q4 Ql Q2 Q3 Q4 Ql Q2 All sectors 5522 TToottaall nneett bboorrrroowwiinngg,, aallll sseeccttoorrss 1,522.2 2,158.7 2,117.4 1,732.3 1,998.7 2,131.2 1,923.6 2,498.1 2,152.7 2,642.7 2,264.4 3.347.2 5533 OOppeenn mmaarrkkeett ppaappeerr 184.1 193.1 229.9 207.6 -164.4 37.8 -255.9 -154.3 70.8 -53.3 96.3 -107.5 5544 UU..SS.. ggoovveerrnnmmeenntt sseeccuurriittiieess 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 5555 MMuunniicciippaall sseeccuurriittiieess 56.9 84.2 54.4 23.6 122.9 174.6 76.8 196.1 154.2 216.1 90.3 189.4 5566 CCoorrppoorraattee aanndd ffoorreeiiggnn bboonnddss 430.8 568.2 427.3 388.7 633.3 703.2 590.2 572.0 130.0 768.6 581.7 713.7 5577 BBaannkk llooaannss nn..ee..cc 128.2 145.0 69.0 112.8 -76.2 -164.0 -3.0 -139.0 -54.4 -126.1 -102.0 -74.3 5588 OOtthheerr llooaannss aanndd aaddvvaanncceess 76.9 152.7 127.5 125.6 32.9 -114.2 -43.0 78.6 132.2 -20.9 90.1 66.7 5599 MMoorrttggaaggeess 337.3 510.6 568.5 570.1 700.4 724.1 709.4 832.8 925.7 1,050.6 883.2 1.144.3 6600 CCoonnssuummeerr ccrreeddiitt 72.0 86.7 120.2 166.2 126.0 134.5 118.1 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.l (780) quarterly statistical release, tables F.2 through F4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A37 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 2001 2002 2003 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999977 11999988 11999999 22000000 22000011 Q4 Ql Q2 Q3 Q4 Ql Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,522.2 2,158.7 2,117.4 1,732.3 1,998.7 2,131.2 1,923.6 2,498.1 2,152.7 2,642.7 2,264.4 3,347.2 7 Domestic nonfederal nonfinancial sectors 15.5 250.9 257.1 -13.7 27.1 172.6 100.4 292.0 -116.4 132.6 -353.9 20.1 3 Household 25.5 119.1 247.1 -33.6 -.7 145.3 48.9 257.6 -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 5 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 3.2 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 96.6 129.5 234.6 274.7 248.0 458.0 393.9 351.0 359.5 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 12 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 13 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 IS 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 20 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 23 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 24 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 2.5 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 26 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 28 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 29 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 32 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 -13.3 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,522.2 2,158.7 2,117.4 1,732.3 1,998.7 2,131.2 1,923.6 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 4.9 4.9 .6 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 42 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 ^441.4 186.0 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 -46.5 -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 496.9 953.3 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 3,304.2 4,320.6 4,811.9 4,972.6 4,142.8 3,362.7 2,815.1 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 -*6.9 -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 3,397.9 4,452.4 4,955.0 5,192.2 4,414.1 3,749.3 2,987.9 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.l (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 • November 2003 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 2001 2002 2003 Q4 Ql Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total credit market debt owed bv domestic nonfinancial sectors 16,240.8 17,306.5 18,171.0 19,286.0 19,286.0 19,530.4 19,842.6 20,182.9 20,655.2 20,953.2 21,486.6 Bv 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 12,488.7 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 y 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 826.1 852.4 936.9 938.7 938.7 934.7 948.1 955.0 960.7 962.3 979.8 II Mortgages 5,640.4 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 307.9 343.4 376.4 421.9 421.9 429.1 439.5 447.4 458.7 467.1 479.7 14 Commercial 873.0 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 lb 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 By borrowing sector IV Households 6,012.0 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 639.3 652.5 709.5 659.7 659.7 675.9 674.1 665.7 665.8 669.8 656.9 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 16,880.1 17,958.9 18,880.5 19,945.7 19,945.7 20,206.3 20,516.6 20,848.6 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 9,565.8 9,778.0 9,982.6 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 3'/ 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 4V 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 . 23,423.8 25,576.1 27,319.4 29,316.0 29,316.0 29,772.1 30,294.7 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 I. Data in this table appear in the Board's Z. I (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A39 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 2001 2002 2003 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999988 11999999 22000000 22000011 Q4 Qi Q2 Q3 Q4 QI Q2 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 23,423.8 25,576.1 27,319.4 29,316.0 29,316.0 29,772.1 30,294.7 30,831.2 31,614.9 32,143.9 32,877.5 2 Domestic nonfederal nonfinancial sectors 3,304.8 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 2,256.3 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 12 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 71 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 73 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 74 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 75 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 78 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 79 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 23,423.8 25,576.1 27,319.4 29,316.0 29,316.0 29,772.1 30,294.7 30,831.2 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 55,993.9 62,332.2 66,477.2 69,356.5 69,356.5 70,183.9 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 55 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 76,110.3 86,905.3 90,179.0 90,988.8 90,988.8 91,677.9 89,795.0 87,418.1 89,717.7 90,106.5 94,422.0 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L.l and L.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • November 2003 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 2002 2003 2002 2003 2002 2003 Q3 Q4 Qi 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 111.4 110.4 110.5 109.4 146.2 146.6 147.0 147.4 76.2 75.3 75.2 74.2 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 122.3 121.4 121.2 120.2 173.4 174.2 175.0 176.0 70.5 69.7 69.3 68.3 Primary metal 85.9 86.0 83.9 80.1 111.4 110.8 110.7 110.8 77.1 77.6 75.8 72.2 6 Fabricated metal products 99.5 98.9 97.1 95.3 139.4 139.6 139.8 139.9 71.3 70.8 69.4 68.1 7 Machinery 88.7 86.7 87.2 87.8 129.9 129.9 129.8 129.6 68.3 66.7 67.2 67.7 8 Computer and electronic products 222.6 224.4 227.8 231.9 355.4 360.3 365.9 372.1 62.6 62.3 62.3 62.3 9 Electrical equipment, appliances. and components 97.7 96.8 95.7 94.8 128.6 128.2 128.0 127.8 75.9 75.5 74.7 74.2 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 11 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 97.7 127.5 127.3 127.2 127.1 78.5 77.6 77.4 76.9 13 Food, beverage, and tobacco products .... 100.1 98.8 98.3 98.3 125.7 125.6 125.5 125.2 79.7 78.7 78.3 78.5 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 93.6 114.0 113.8 113.5 113.2 84.0 84.2 82.4 82.7 16 Petroleum and coal products 102.3 102.8 102.5 102.4 115.2 115.7 116.1 116.5 88.7 88.9 88.3 87.8 1 / Chemical 106.4 104.1 105.4 105.0 141.2 141.3 141.5 141.7 75.3 73.7 74.5 74.1 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-NAlCS) 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 92.9 110.1 110.2 110.3 110.4 84.9 85.1 84.4 84.1 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 295.5 300.4 306.4 316.1 475.3 483.3 493.3 504.9 62.2 62.2 62.1 62.6 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 75.6 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 74.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A41 2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1—Continued Seasonally adjusted 1973 1975 Previous cycle1 Latest cycle4 2002 2003 High Low High Low High Low Aug. Mar. Apr. May' June' July' Aug.p Capacity utilization rate (percent)2 1 Total industry 88.8 74.0 86.6 70.8 85.1 78.6 76.1 74.8 74.3 74.3 74.1 74.6 74.6 2 Manufacturing 88.0 71.6 86.3 68.6 85.5 77.2 74.3 73.1 72.5 72.5 72.6 72.9 72.7 3 Manufacturing (NAICS) 88.1 71.4 86.3 67.9 85.5 77.0 73.9 72.4 71.8 71.9 71.9 72.2 72.1 4 Durable manufacturing 88.9 69.6 87.0 63.1 84.5 73.4 70.8 68.7 68.2 68.3 68.4 69.0 68.8 5 Primary metal 100.9 68.9 91.3 47.2 95.3 75.2 78.7 73.5 72.1 72.0 72.7 73.3 70.9 6 Fabricated metal products .... 91.8 69.6 83.1 61.7 80.1 71.0 71.2 68.8 68.4 68.1 67.8 68.3 68.1 7 Machinery 94.2 74.2 92.8 58.3 84.7 72.9 68.8 67.4 67.3 67.8 68.0 67.3 67.7 8 Computer and electronic products 87.0 66.9 89.8 77.3 81.5 76.4 62.7 62.3 62.1 62.4 62.5 63.1 64.0 9 Electrical equipment, appliances, and components 99.3 68.5 91.9 64.4 87.5 75.0 76.2 74.4 73.4 74.7 74.5 75.0 75.2 10 Motor vehicles and parts 95.3 55.3 96.2 45.2 90.0 56.6 82.9 78.7 77.4 76.3 77.3 79.6 77.3 11 Aerospace and miscellaneous transportation equipment . 75.0 66.3 84.6 69.8 88.9 81.9 59.4 59.1 59.2 59.8 59.5 59.8 60.1 12 Nondurable manufacturing 87.5 72.5 85.7 75.6 86.9 81.8 78.4 77.6 76.9 77.0 76.9 76.9 76.9 13 Food, beverage, and tobacco products 85.9 78.0 84.3 80.2 85.5 81.3 79.6 78.3 78.1 78.5 78.8 78.6 78.6 14 Textile and product mills .... 89.8 62.8 90.1 72.3 91.1 77.1 73.9 72.2 70.7 70.0 69.6 68.7 68.0 15 Paper 97.4 74.7 95.6 81.3 94.0 85.4 84.0 83.4 82.1 83.0 83.1 83.6 83.9 16 Petroleum and coal products .. 93.2 81.0 92.3 71.1 88.9 82.5 89.2 89.3 87.9 89.2 86.3 87.4 88.5 17 Chemical 85.0 68.9 83.0 67.9 85.6 80.8 75.2 74.8 74.7 73.7 73.9 74.0 73.9 18 Plastics and rubber products . . 96.3 61.6 90.5 70.5 91.2 77.1 80.3 79.9 78.5 79.6 79.3 80.0 80.0 19 Other manufacturing (non-NAICS). 85.7 75.7 88.1 85.7 90.2 79.1 81.7 84.5 83.9 84.0 85.0 83.8 83.5 20 Mining 93.6 87.6 94.2 78.6 85.6 83.3 85.3 84.1 84.2 83.9 84.3 84.5 84.6 21 Electric and gas utilities 96.2 82.7 87.9 77.2 92.6 84.2 86.5 84.6 84.5 83.4 80.4 83.2 84.4 MEMOS 22 Computers, communications equipment, and semiconductors . 84.5 63.1 89.9 75.6 80.4 74.6 62.4 62.4 62.4 62.5 62.9 63.4 64.3 23 Total excluding computers, communications equipment, and semiconductors 89.1 74.3 86.6 70.5 85.5 78.8 77.6 76.2 75.7 75.6 75.4 75.9 75.8 24 Manufacturing excluding computers communications equipment, and semiconductors . 88.3 71.9 86.3 68.1 86.1 77.3 75.9 74.5 73.9 74.0 74.1 74.3 74.1 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 • November 2003 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 2002 2002 2003 G „ roup p p r o o r - - 2 a 0 v 0 g 2 . tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May' June' July' Aug.p Index(1997= 100) MAJOR MARKETS 1 Total IP 100.0 110.5 111.3 111.2 110.6 110.8 109.9 110.7 110.7 110.1 109.5 109.5 109.3 110.1 110.2 Market groups 2 Final products and nonindustrial supplies 59,8 109.3 109.8 109.8 109.1 109.3 108.2 109.1 109.3 108.7 108.2 108.4 108.3 108.8 108.9 3 Consumer goods 30.5 107.5 107.8 107.9 107.0 107.8 106.6 107.7 107.8 107.2 106.8 106.7 106.6 107.2 107.1 4 Durable 7.5 117.3 119.3 118.7 117.0 121.0 117.8 120.5 118.5 117.9 116.9 116.6 117.7 120.3 118.7 5 Automotive products 4.3 125.4 130.6 129.3 125.9 132.4 125.9 131.3 128.8 127.4 125.9 124.3 126.9 131.8 129.1 6 Home electronics 0.3 142.9 135.4 142.6 140.1 142.1 145.3 152.7 145.9 152.0 154.7 152.5 153.8 153.3 156.7 7 Appliances, furniture, carpeting 1.3 106.9 104.5 104.6 104.9 107.1 107.7 105.4 105.5 105.7 106.0 108.6 107.5 108.1 108.1 8 Miscellaneous goods 1.6 98.5 98.3 97.8 98.2 98.3 98.7 98.7 96.9 96.2 94.9 95.4 95.2 94.3 93.5 y Nondurable 22.9 104.1 103.8 104.2 103.6 103.3 102.8 103.4 104.1 103.6 103.3 103.2 102.9 102.9 103.1 10 Non-energy 19.0 102.6 102.4 102.6 102.0 101.3 100.8 101.1 101.6 101.7 101.3 101.3 101.7 101.0 100.8 n Foods and tobacco 10.3 99.5 99.2 99.1 98.7 97.9 97.4 97.6 97.2 97.2 97.0 97.4 97.6 97.2 97.0 12 Clothing 1.0 72.4 71.3 72.1 70.2 70.6 69.9 69.7 69.1 68.0 66.1 65.9 64.1 62.8 61.5 13 Chemical products 4.8 119.1 119.0 119.5 118.3 118.0 116.9 117.9 120.2 120.6 120.8 119.8 121.5 120.2 120.2 14 Paper products 2.3 108.1 108.4 109.8 110.0 108.8 109.0 108.3 110.2 111.0 110.0 110.3 111.6 110.1 109.8 15 Energy 4.0 112.0 111.6 112.8 111.8 114.0 113.3 115.7 117.2 113.8 113.9 113.4 109.1 113.1 115.5 16 Business equipment 9.7 107.3 108.1 106.9 106.0 106.1 104.6 105.6 105.9 105.5 104.8 105.1 105.4 105.7 106.3 1/ Transit 1.7 81.2 81.1 79.7 77.3 77.9 75.4 75.7 74.5 73.9 73.9 73.5 73.1 73.5 72.2 18 Information processing 3.1 153.8 153.7 152.1 153.1 152.8 152.7 155.1 156.3 158.0 156.6 157.7 158.2 159.2 162.4 iy Industrial and other 4.9 91.5 92.9 92.0 91.2 91.1 89.7 90.4 90.8 89.9 89.2 89.4 90.0 90.0 90.3 20 Defense and space equipment 2.2 101.2 101.9 102.0 102.5 101.7 102.3 104.1 104.8 105.2 104.7 106.3 106.7 107.2 108.6 21 Construction supplies 6.8 104.0 104.8 104.5 104.2 103.8 102.4 102.3 101.8 101.4 101.0 101.5 101.4 101.6 101.9 22 Business supplies 10.3 121.9 122.6 123.6 123.1 122.5 121.9 122.8 123.7 122.5 121.3 121.8 120.9 121.7 122.2 23 Materials 40.2 112.2 113.6 113.4 112.8 113.1 112.4 113.0 112.8 112.1 111.4 111.1 110.9 112.1 112.1 24 Non-energy 30.5 115.8 117.4 117.2 116.7 116.7 115.6 116.0 115.9 115.4 114.5 114.4 114.5 115.3 115.0 25 Durable 18.6 128.0 130.0 129.5 129.5 129.7 128.1 129.1 128.6 127.6 126.6 127.0 127.3 128.8 128.2 26 Consumer parts 4.2 110.8 112.3 112.4 111.7 114.6 111.1 113.8 111.9 110.9 110.5 109.5 110.0 112.4 110.4 27 Equipment parts 5.9 182.6 186.3 185.7 185.7 185.3 184.4 186.0 186.2 186.2 186.3 188.1 189.3 191.6 193.2 28 Other 8.4 97.1 98.3 97.7 98.0 97.2 96.4 96.3 96.3 95.0 93.6 93.9 93.8 94.4 93.7 2y Nondurable 11.9 97.0 98.2 98.3 97.1 97.0 96.5 96.2 96.4 96.7 95.9 95.3 95.0 95.0 95.1 30 Textile 0.8 77.6 77.8 78.4 77.2 77.0 75.3 74.1 74.2 73.8 72.2 70.7 70.1 68.2 67.7 31 Paper 3.0 94.8 96.1 96.7 96.8 96.9 95.8 94.4 93.6 94.8 92.8 93.5 92.9 93.5 93.7 32 Chemical 4.2 99.1 100.7 100.2 98.2 97.9 97.3 98.3 99.2 99.3 99.3 96.7 95.9 96.9 96.9 33 Energy 9.7 98.7 99.3 99.1 98.4 99.4 99.7 100.9 100.8 99.2 99.2 98.6 97.7 99.8 100.4 SPECIAL AGGREGATES 34 Total excluding computers, communication equipment, and semiconductors 94.7 100.5 101.2 101.2 100.5 100.6 99.8 100.5 100.5 99.8 99.2 99.1 98.9 99.6 99.5 35 Total excluding motor vehicles and parts 92.9 110.0 110.5 110.5 110.0 109.8 109.3 109.8 110.1 109.5 108.9 109.0 108.7 109.3 109.6 Gross value (billions of 1996 dollars, annual rates) 36 Final products and nonindustrial supplies 59.8 2,801.4 2,822.7 2,818.9 2,794.7 2,817.8 2,783.5 2,808.6 2,807.2 2,791.9 2,777.2 2,780.7 2,773.3 2,799.3 2,801.2 37 Final products 42.7 2,022.5 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 2,010.8 2,009.9 2,030.1 2,028.6 38 Consumer goods 30.5 1,386.5 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 1,380.3 1,377.7 1,394.4 1,391.5 3y Equipment total 12.2 626.9 634.6 628.7 623.5 624.4 615.8 620.9 622.5 620.9 618.4 621.1 623.6 625.8 628.1 40 Nonindustrial supplies 17.1 778.9 783.6 786.7 783.3 780.5 772.8 776.4 778.3 772.0 765.7 769.8 763.1 768.8 772.4 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 Group N c A od IC e2 S p p r o o r - - 2 a 0 v 0 g 2 . tion Aug. Sept. Oct. Nov. Dec Apr. Mayr June' July' Aug Index (1997=100) INDUSTRY GROUPS 41 Manufacturing 84.6 111.4 112.4 112.1 111.4 111.6 110.6 111.1 111.1 110.9 110.1 110.2 110.4 110.9 110.7 42 Manufacturing (NAICS) 79.3 111.7 112.8 112.4 111.7 112.0 110.8 111.5 111.3 111.0 110.2 110.4 110.5 111.1 111.0 43 Durable manufacturing 43.4 121.1 122.7 122.0 121.5 122.2 120.5 121.9 121.3 120.5 119.8 120.2 120.6 121.8 121.6 44 Wood products ' ' 321 1.4 100.5 102.5 100.7 99.2 98.3 96.9 97.4 96.5 95.9 95.7 95.7 96.5 98.2 98.2 45 Nonmetallic mineral products 327 2.5 107.9 108.5 109.8 109.3 110.2 108.0 109.7 108.0 108.1 108.5 109.0 109.0 109.2 110.3 46 Primary metal 331 2.5 85.6 87.6 85.0 87.6 86.2 84.1 85.0 85.2 81.3 79.8 79.8 80.6 81.4 78.9 47 Fabricated metal products . 332 6.1 99.0 99.3 99.4 99.8 98.7 98.3 97.9 97.1 96.1 95.7 95.2 94.9 95.6 95.3 48 Machinery 333 5.3 87.9 89.4 88.2 86.8 87.4 85.8 86.7 87.4 87.5 87.2 87.9 88.1 87.2 87.6 49 Computer and electronic products 334 8.1 220.4 223.0 223.2 224.2 224.5 224.5 226.6 227.5 229.3 229.6 232.3 233.9 237.4 242.3 50 Electrical equipment, appliances, and components 335 2.4 97.7 98.0 96.5 96.6 97.0 96.9 95.7 96.1 95.2 93.9 95.4 95.1 95.7 95.9 51 Motor vehicles and parts . . 3361-3 7.1 117.3 122.0 121.1 118.3 123.9 117.8 122.9 120.0 118.4 116.9 115.6 117.5 121.5 118.4 52 Aerospace and miscellaneous transportation equipment 3364-9 3.3 87.6 86.3 85.7 85.5 84.8 85.2 86.0 85.6 85.7 85.9 86.7 86.4 86.7 87.2 53 Furniture and related products 337 1.7 101.3 100.5 101.4 100.7 100.6 98.9 98.8 98.6 97.3 97.0 97.4 97.2 98.5 97.9 54 Miscellaneous 339 3.1 109.5 110.2 109.1 109.3 108.6 110.0 109.5 109.4 108.4 106.7 106.7 106.3 105.6 105.0 55 Nondurable manufacturing .. 35.9 99.5 100.0 100.0 99.1 98.9 98.3 98.2 98.5 98.6 97.8 97.8 97.6 97.6 97.6 56 Food, beverage, and tobacco products .... 311,2 11.7 100.2 100.0 99.9 99.5 98.6 98.3 98.5 98.2 98.2 97.9 98.3 98.6 98.3 98.2 57 Textile and product mills . . 313,4 1.3 82.5 82.5 82.3 81.3 81.7 80.8 78.4 79.2 79.7 77.9 77.0 76.5 75.4 74.4 58 Apparel and leather 315,6 1.1 72.2 71.2 71.8 70.2 70.5 69.7 69.7 69.0 68.0 66.1 65.9 64.1 63.0 61.7 59 Paper 322 3.1 94.4 95.8 96.1 95.7 96.8 95.0 93.0 93.0 94.6 93.0 93.9 93.9 94.4 94.6 60 Printing and support 323 2.7 97.8 98.6 99.9 99.5 98.4 98.9 99.1 97.7 96.3 94.8 94.5 94.2 93.6 93.4 61 Petroleum and coal products 324 1.9 102.9 102.7 101.0 99.4 103.9 105.0 102.0 101.8 103.8 102.4 104.0 100.7 102.1 103.6 62 Chemical 325 10.2 105.1 106.2 106.1 104.6 104.2 103.4 104.4 106.0 105.8 105.7 104.4 104.8 105.0 104.8 63 Plastics and rubber products 326 3.9 106.0 107.3 107.2 106.4 105.8 104.6 104.9 105.3 105.6 103.5 104.7 104.1 104.8 104.7 64 Other manufacturing (non-NAICS) 1133,5111 5.3 105.5 105.8 107.1 106.7 105.4 105.9 105.3 107.5 108.1 107.3 107.3 108.5 106.8 106.4 65 Mining 21 6.0 93.8 93.9 92.2 92.3 93.6 95.2 93.6 92.8 92.8 93.0 92.7 93.1 93.4 93.5 66 Utilities 2211,2 9.3 110.2 110.4 113.3 112.1 112.1 110.5 115.0 116.3 111.7 112.1 111.1 107.4 111.5 113.6 67 Electric 2211 8.1 111.8 112.2 115.8 113.7 113.3 112.2 116.8 118.0 113.6 113.7 112.7 108.7 113.9 116.1 68 Natural gas 2212 1.3 97.5 100.8 99.9 103.6 105.8 101.6 105.4 107.5 101.2 103.3 102.3 100.1 99.0 100.0 69 Manufacturing excluding computers, communications equipment, and semiconductors 79.3 99.8 100.6 100.4 99.7 99.8 98.8 99.3 99.2 98.9 98.1 98.2 98.3 98.6 98.3 70 Manufacturing excluding motor vehicles and parts 77.5 110.9 111.5 111.3 110.8 110.5 109.9 110.1 110.3 110.2 109.5 109.8 109.8 110.0 110.1 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 • November 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 Q2 Q3 Q4 Ql' Q2P 1 Balance on current account -411,458 -393.745 -480,861 -122,827 -122,724 -128,586 -138,707 -138,671 2 Balance on goods and services -375,384 -357,819 -418,038 -104,888 -106,980 -116,116 -121,629 -123,408 3 Exports 1,070.054 1,007,580 974,107 243,696 247,815 246,151 247,377 247,991 4 Imports -1,445,438 -1,365,399 -1.392,145 -348,584 -354,795 -362,267 -369,006 -371,399 5 Income, net 19.605 10,689 -3,970 -4,458 -1.747 2,966 191 1,679 6 Investment, net 24,191 15,701 1,271 -3,106 -481 4,306 1,567 2,984 7 Direct 94,929 106,485 93,475 21,410 21,914 26,225 22,077 22,823 8 Portfolio -70,738 -90,784 -92,204 -24,516 -22,395 -21,919 -20,510 -19,839 9 Compensation of employees -4,586 -5,012 -5,241 -1,352 -1,266 -1,340 -1,376 -1,305 10 Unilateral current transfers, net -55.679 -46,615 -58,853 -13,481 -13,997 -15,436 -17,269 -16,942 11 Change in U.S. government assets other than official reserve assets, net (increase, -) -941 -486 -32 42 -27 -180 -70 -323 12 Change in U.S. official reserve assets (increase. —) -290 -4,911 -3,681 -1,843 -1,416 -812 83 -170 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -722 -630 -475 -107 -132 -127 897 -102 15 Reserve position in International Monetary Fund 2,308 -3,600 -2,632 -1,607 -1,136 -541 -644 86 16 Foreign currencies -1,876 -681 -574 -129 -148 -144 -170 -154 17 Change in U.S. private assets abroad (increase, -) -568,567 -344,542 -175,272 -126,766 31,155 -43,910 -101,344 -106,172 18 Bank-reported claims2 -148.657 -134,945 -21,357 -69,254 52,999 -4,954 -27,795 -60,603 19 Nonbank-reported claims -138,790 -4,997 -.31.880 -16,210 -11,862 -1,922 -11,998 -22,789 20 U.S. purchase of foreign securities, net -121,908 -84,637 15,801 -5,843 21,641 -5,364 -27,146 9,240 21 U.S. direct investments abroad, net -159,212 -119,963 -137,836 -35,459 -31,623 -31,670 -34,405 -32,020 22 Change in foreign official assets in United States (increase, +) 37,724 5,104 94,860 47,552 8,992 32,210 40,978 57,580 23 U.S. Treasury securities -10.233 10,745 43,144 15,138 1,415 27,630 22,288 33,232 24 Other U.S. government obligations 40.909 20,920 30,377 6,568 10,885 5,628 9,480 3,290 25 Other U.S. government liabilities2 -1.825 -2,309 137 365 464 -95 -437 -32 26 Other U.S. liabilities reported by U.S. banks2 5.746 -29,978 17,594 24,575 -4,607 -2,094 8,321 20,385 27 Other foreign official assets' 3.127 5,726 3,608 906 835 1,141 1,326 705 28 Change in foreign private assets in United States (increase, +) 988,415 760,427 612,123 173,690 132,486 165.238 201,026 197,693 29 U.S. bank-reported liabilities4 116.971 118.379 91,126 23,948 20,448 54.176 16,723 33,245 30 U.S. nonbank-reported liabilities 170.672 67,489 72,142 24,610 -8,102 8,863 74,848 3,189 31 Foreign private purchases of U.S. Treasury securities, net -76.949 -7,438 96,217 14,218 57,505 12,705 14.568 61,139 32 U.S. currency flows 1.129 23,783 21,513 7,183 2,556 7,249 4,927 1,458 33 Foreign purchases of other U.S. securities, net 455,318 406,633 291,492 104,187 45,880 66,964 55,574 86,525 34 Foreign direct investments in United States, net 321,274 151,581 39,633 -456 14.199 15,281 34,386 12,137 35 Capital account transactions, net5 -799 -1,062 -1,285 -286 -364 -358 -388 -325 36 Discrepancy -44,084 -20,785 -45,852 30,438 -48,102 -23,602 -1,578 -9,612 37 Due to seasonal adjustment 2,091 -12,409 1,744 9,479 702 38 Before seasonal adjustment -44,084 -20,785 -45,852 28,347 -35,693 -25,346 -11,057 -10,314 MEMO Changes in official assets 39 U.S. official reserve assets (increase, -) -290 -4,911 -3,681 -1,843 -1,416 -812 83 -170 40 Foreign official assets in United States, excluding line 25 (increase, +) 39.549 7,413 94,723 47,187 8,528 32,305 41,415 57,612 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 12,000 -1,725 -8,132 838 -1,289 851 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38—41. 5. Consists of capital transfers (such as those of accompanying migrants entering or 2. Associated primarily with military sales contracts and other transactions arranged with leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced or through foreign official agencies. nonfinancial assets. 3. Consists of investments in U.S. corporate stocks and in debt securities of private SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current corporations and state and local governments. Business. 4. Reporting banks included all types of depository institutions as well as some brokers and dealers. 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 2003 AAsssseett 22000000 22000011 22000022 Feb. Mar. Apr. May June July Aug. Sept.P 1 Total 67,647 68,654 79,006 78,579 80,049 80,405 82,287 81,660 80,620 80,422 84,431 2 Gold stock1 11,046 11,045 11.043 11,043 11,043 11,043 11,044 11,044 11,043 11,043 11,043 3 Special drawing rights2' 10,539 10,774 12.166 11,368 11,392 11,476 11,880 11,720 11,646 11,619 12,062 4 Reserve position in International Monetary Fund2 14,824 17,854 21.979 21,686 22,858 22,738 23,214 23,210 22,746 22,463 24,067 5 Foreign currencies4 31,238 28,981 33.818 34,482 34,756 35,148 36,149 35,686 35,185 35,297 37,259 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 Feb. Mar. Apr. May June July Aug. Sept.'' 1 Deposits 215 61 136 224 254 313 79 898 318 81 803 Held in custody 2 U.S. Treasury securities2 594,094 592,630 678,106 700,341 710,955 702,041 727,142 747,089 743,308 754,469 765,940 3 Earmarked gold3 9,451 9,099 9,045 9,045 9,045 9,040 9,031 9,004 9.004 8,977 8,971 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 2003 IItteemm 22000011 22000022 Jan. Feb. Mar. Apr. May June July? 1 Total1 984,713r 1,078,219 1,083,965 1,107,987 l,116,675r 1,114,979' 1,165,946 1,173,997' 1,183,814 By type 2 Liabilities reported by banks in the United States2 120,571' 144,080 140.071 151,605 149,443' 150,701' 174,748 169,538' 170,061 3 U.S. Treasury bills and certificates3 161,719 190,375 194,762 196,344 206,153' 200.462' 210,033 209,957 205,809 U.S. Treasury bonds and notes 4 Marketable 454,306 464,1 15 464,427 469,250 470,572' 470,151' 484,900 499,945 513,030 5 Nonmarketable4 3,411 2,769 2,786 2,803 2,821' 2,839' 2,857 2,876 • 2,894 6 U.S. securities other than U.S. Treasury securities5 244,706 276,880 281,919 287,985 287,686' 290,826' 293,408 291,681 292,020 By area 7 Europe1 243,307' 271,250 269,290 281,471 276,924' 273.557' 288,567 279,405 280,628 8 Canada 13,440 11,120 10,496 9,837 10,154' 9.746' 9,942 9.998 9,791 9 Latin America and Caribbean 71.103 63,022 61,794 62,998 62.743' 62,909' 65,355 71,097' 73.228 10 Asia 632,466' 704,126 715,996 725,120 740,799' 740,298' 774.801 782,656' 790.345 11 Africa 15,167 15,338 14,589 15,939 15,215' 15,834' 15,656 15,829 15,788 12 Other countries 9,228 13.361 11,798 12,620 10,838' 12,633' 11,623 15,010 14.032 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. SOURCK. Based on U.S. Department of the Treasury data and on data reported to the 3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official Treasury by banks (including Federal Reserve Banks) and securities dealers in the United institutions of foreign countries. States, and in periodic benchmark surveys of foreign portfolio investment in the United 4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of States. zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning March 1990, 30-year maturity issue; Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April 1993, 30-year maturity issue. 3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS Reported by Banks in the United States' Payable in Foreign Currencies Millions of dollars, end of period 2002 2003 IItteemm 11999999 22000000 22000011 Sept. Dec. Mar.' June 1 Banks' own liabilities 88,537 77,779 79,363 81,719 80,543 88,566 74,441 2 Deposits n.a. n.a. n.a. n.a. n.a. 50,582 43,505 3 Other liabilities n.a. n.a. n.a. n.a. n.a. 37,984 30,936 4 Banks' own claims 67,365 56,912 74,640 82,647 71,724 81,239 90,927 5 Deposits 34,426 23,315 44,094 47,779 34.287 36,710 42,129 6 Other claims 32,939 33,597 30,546 34,868 37.437 44,529 48.798 7 Claims of banks' domestic customers2 20,826 24,411 17,631 20,475 35.923' 27,706 33,984 8 Deposits n.a. n.a. n.a. n.a. n.a. 5,065 4.742 9 Other claims n.a. n.a. n.a. n.a. n.a. 22,641 29,242 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 • November 2003 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States' Payable in U.S. dollars Millions of dollars, end of period 2003 IItteemm 22000000 22000011 22000022 Jan. Feb.' Mar.' Apr. May June' JulyP BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,511,410 1,630,417' 1,832,746 1,782,342 2,046,103 2,111,858 2,176,528r 2,201,176r 2,204,628 2,272,846 2 Banks' own liabilities 1,077,636 1,174,976' 1,288,991 1,239,613 1,489,690 1,556,084 1,610,113' 1,612,078' 1,599,273 1,677,669 By type of liability 3 Deposits2 221,248 188,005' 175,220 169,503 793,540 812,983 828,057' 812,186' 853,125 867,369 4 Other 171,401 194,680' 246,568 267,627 696.150 743,101 782,056' 799,892' 746,148 810,300 5 Of which: repurchase agreements3 0 151,071' 190,134 208,959 306,051 339,673 378,842 390,974 362,515 410,221 6 Banks' custody liabilities4 433,774 455,441 543,755 542,729 556,413 555,774 566,415' 589,098' 605,355 595,177 By type of liability 7 U.S. Treasury bills and certificates5 177,846 186,115 229,827 231,872 234,657 245,932 242,661' 252,088' 251,555 249,347 8 Other negotiable and readily transferable instruments'' 145,840 139,807 163,091 160,148 172,475 170,054 180,034' 195,085' 206,514 205,129 9 Of which: negotiable time certificates of deposit held in custody for foreigners 34,217 20,440 25,821 25,448 28,328 28,780 31,450 33,543 43,272 43,854 10 Of which: short-term agency securities7 0 59,781 72,731 67,427 75,354 73,988 77,063' 85,337' 82,404 81,069 11 Other 110,088 129,519 150,837 150,709 149,281 139,788 143,720 141,925 147,286 140,701 12 Nonmonetary international and regional organizations8 12,543 10,830 13,467 14,624 12,085 9,377 9,003 8,962 11,781 15,127 13 Banks' own liabilities 12,140 10,169 12,362 13,921 11,439 9,331 8,950 8,946 11,678 15,079 14 Deposits2 6,287 3,791 5,769 5,298 3,844 2,640 3,086 3,197 4,524 4,798 15 Other 5,853 6,378 6,593 8,623 7,595 6,691 5,864 5,749 7,154 10,281 16 Banks' custody liabilities4 403 661 1,105 703 646 46 53 16 103 48 17 US. Treasury bills and certificates5 252 600 1,089 687 621 4 33 3 13 13 18 Other negotiable and readily transferable instruments6 149 61 16 16 25 30 20 13 70 35 19 Other 2 0 0 0 0 12 0 0 20 0 20 Official institutions9 297,603 282,290' 334,455 334,833 347,949 355,596 351,163 384,781 379,495 375,870 21 Banks' own liabilities 96,989 80,970' 93,884 93,790 100,320 95,943 95,358 110,867 104,923 110,075 22 Deposits2 39,525 21,987' 20,733 17,378 25,762 22,532 24,026 22,586 23,046 22,390 23 Other 57,464 58,983' 73,151 76,412 74,558 73,411 71,332 88,281 81,877 87,685 24 Banks' custody liabilities4 200,614 201,320 240,571 241,043 247,629 259,653 255,805 273,914 274,572 265,795 25 U.S. Treasury bills and certificates5 153.010 161,719 190,375 194,762 196,344 206,153 200,462 210,033 209,957 205,809 26 Other negotiable and readily transferable instruments6 47,366 38,531 50,132 45,285 50,763 52,615 55,189 63,217 59,535 57,770 27 Other 238 1,070 64 996 522 885 154 664 5,080 2,216 7.8 Banks10 972,932 1,052,626' 1,176,534 1,116,543 1,240,818 1,275,229 1,320,808' 1,313,038' 1,327,614 1,372,439 79 Banks' own liabilities 821,306 914,034' 981,645 921,792 1,046,855 1,092,972 1,129,310' 1,119,652' 1,124,178 1,168,599 30 Deposits2 82,426 68,218' 56,020 53,156 654,965 678,722 690,506' 677,685' 712,724 726,956 31 Other 53,893 53,525' 58,422 66,153 391,890 414,250 438,804' 441,967' 411,454 441,643 32 Banks' custody liabilities4 151,626 138,592 194,889 194,751 193,963 182,257 191,498 193,386 203,436 203,840 33 US. Treasury bills and certificates5 16,023 11,541 21,311 20.244 18,171 20,715 21,989 20,269 20,342 22,917 34 Other negotiable and readily transferable instruments6 36,036 24,059 46,770 48,614 52,390 48,295 51,753 57,564 65,799 67,179 35 Other 99,567 102,992 126,808 125,893 123,402 113,247 117,756 115,553 117,295 113,744 36 Other foreigners" 228,332 284,671' 308,290 316,342 445,251 471,656 495,554' 494,395' 485,738 509,410 37 Banks' own liabilities 147,201 169,803' 201,100 210,110 331,076 357,838 376,495' 372,613' 358,494 383,916 38 Deposits2 93,010 94,009' 92,698 93,671 108,969 109,089 110,439' 108,718' 112,831 113,225 39 Other 54,191 75.794' 108,402 116,439 222,107 248,749 266,056 263,895' 245,663 270,691 40 Banks' custodial liabilities 81,131 114,868 107,190 106,232 114,175 113,818 119,059' 121,782' 127,244 125,494 41 US. Treasury bills and certificates5 8,561 12.255 17,052 16,179 19,521 19,060 20,177' 21,783' 21,243 20,608 42 Other negotiable and readily transferable instruments6 62,289 77,156 66,173 66,233 69,297 69,114 73,072' 74,291' 81,110 80,145 43 Other 10,281 25,457 23,965 23,820 25,357 25,644 25,810 25,708 24,891 24,741 MEMO 44 Own foreign offices12 684,987 792,291 867,203 802,483 1,010,614 1,049,774 1,106,286' 1,096,156' 1,093,643 1,154,618 1. Reporting banks include all types of depository institutions as well as some banks/ 9. Foreign central banks, foreign central governments, and the Bank for International financial holding companies and brokers and dealers. Excludes bonds and notes of maturities Settlements. longer than one year. Effective February 2003, coverage is expanded to include liabilities of 10. Excludes central banks, which are included in "Official institutions." Includes posibrokers and dealers to affiliated foreign offices. tions with affiliated banking offices also included in memo line (44) below. 2. Non-negotiable deposits and brokerage balances. 11. As of February 2003, includes positions with affiliated non-banking offices also 3. Data available beginning January 2001. included in memo line (44) below. 4. Financial claims on residents of the United States, other than long-term securities, held 12. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiby or through reporting banks for foreign customers. Effective February 2003, also includes aries consolidated in the quarterly Consolidated Reports of Condition filed with bank loans to U.S. residents in managed foreign offices of U.S. reporting institutions. regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official banks, consists principally of amounts owed to the head office or parent foreign office, and to institutions of foreign countries. foreign branches, agencies, or wholly owned subsidiaries of the head office or parent foreign 6. Principally bankers acceptances, commercial paper, negotiable time certificates of bank. Effective February 2003, includes amounts owed to affiliated foreign offices of U.S. deposit, and short-term agency securities. brokers and dealers. 7. Data available beginning January 2001. 8. Principally the International Bank for Reconstruction and Development, the Inter- American Development Bank, and the Asian Development Bank. Excludes "holdings of dollars" of the International Monetary Fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A47 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued Payable in U.S. dollars Millions of dollars, end of period 2003 IItteemm 22000000 22000011 22000022 Jan. Feb.' Mar.' Apr.' May' June July1' AREA OR COUNTRY 45 Total, all foreigners 1,511,410 l,630,417r 1,832,746 1,782,342 2,046,103 2,111,858 2,176,528 2,201,176 2,204,628r 2,272,846 46 Foreign countries 1,498,867 l,619,587r 1,819,279 1,767,718 4,068,036 4,204,962 4,335,050 4,384,428 4,385,694r 4,515,438 47 Europe 446,788 520,438' 627,537 560,622 709,950 730,110 723,739 762,373 733,119' 786,550 48 Austria 2,692 2,922 2,473 2,186 2,330 2,125 2,110 2,472 4,427 4,330 49 Belgium13 33,399 6,546' 8,610 4,668 5,454 7,743 6,669 4,100 4,082 4,999 50 Denmark 3,000 3,618' 4,880 6,497 6,603 6.751 5.088 7,091 5,040 2,727 51 Finland 1,411 1,446 1,693 2,583 1,861 845 1,007 2.291 2,159 3,315 52 France 37,833 49,056 39,636 36,731 39,682 39,886 41,281 46,728 44,871 45,400 53 Germany 35,519 22,318' 34,394 31,977 39,695 43,698 42,498 44,155 45,825 51,694 54 Greece 2,011 2,307 2,975 3,205 2,925 2,019 1,397 1,634 2,096 1,961 55 Italy 5,072 6.215' 4,826 4,421 4,814 4,984 6,435 5,940 6,766 6,894 56 Luxembourg13 0 16,667' 28.623 30,538 36,005 32,933 36,774 38,558 37,615 37,979 57 Netherlands 7,047 12,363' 10,705 10,550 16,259 13,710 15,207 16,066 15,522 13.238 58 Norway 2,305 3,727 18,867 17,723 10,936 14,163 13,866 15,479 14,985 20,939 59 Portugal 2,403 4,033 3,574 3,448 2,889 2,802 2,906 2,735 2,168 2,145 60 Russia 19,018 20,800 23.147 24,378 27,648 28,918 30,656 35,062 34.316 33,504 61 Spain 7,787 8,811 14,030 14,849 16,066 13,923 14,180 15,853 11,973 8,873 6? Sweden 6,497 3,375 4,654 3,767 4,006 4,611 6,816 6,309 5,731 4,086 63 Switzerland 74,635 66,382' 131,489 105,350 119,474 114,471 100,341 1 13,568 119,598' 135,420 64 Turkey 7,548 7,474 12,130 12,754 11,973 10,996 11,214 12,253 12,540 13,933 65 United Kingdom 167,757 204,107' 181,840 168,426 280,193 305,077 305,229 310,581 275,430' 316,444 66 Channel Islands and Isle of Man14 0 36,024' 45,728 26,327 23,068 21,772 21,475 23,487 21,740' 21,633 67 Yugoslavia15 276 309 301 353 337 332 237 183 183 157 68 Other Europe and other former U.S.S.R.lf> 30,578 41,938' 52,962 49,891 57,732 58,351 58,353 57,828 66,052' 56,879 69 Canada 30,982 27,240' 24,955 27,880 28,618 32,059 29,209 31,867 36,031 37,044 70 Latin America 120,041 118,025 107,042 106,106 104,360 105,098 107,168 105,979 107,722' 106,803 71 Argentina 19,451 10,704 11,218 11,253 10,611 10,711 10,002 9,769 9,884' 10,406 77 Brazil 10,852 14,169 10,037 10,586 11,004 12,168 11,256 12,695 16,253' 15,805 73 Chile 5,892 4,939 6,064 5,591 5,808 5,714 5,063 5,535 4,725 4,682 74 Colombia 4,542 4,695 4,158 4,147 4,897 4,458 4,726 4,653 4,617 4,517 75 Ecuador 2,112 2,390 2,299 2,397 2,247 2.377 2,256 2,296 2,217 2,373 76 Guatemala 1,601 1,882 1,381 1,436 1,485 1,411 1,543 1,504 1.546' 1,399 77 Mexico 32,166 39,871 36,149 36,888 35,000 36.376 38,823 35,139 33,738' 32,719 78 Panama 4,240 3,610 3.845 3,972 4,172 3.735 3,713 3,690 4.234' 4,139 79 Peru 1,427 1,359 1,363 1,364 1,368 1.340 1,382 1,618 1,512 1,532 80 Uruguay 3,003 3,172 2,806 2,681 2,480 2,772 2,905 2,905 3,150' 3,139 81 Venezuela 24,730 24,974 21,883 19,951 19,634 18,250 19,147 20,156 19,761' 20,436 82 Other Latin America17 10,025 6,260 5,839 5,840 5,654 5,786 6,352 6,019 6,085' 5,656 83 Caribbean 573,337 194,744' 194,158 206,063 210,983 223,186 211,602 222,491 228,737' 210,503 84 Bahamas 189,298 178,472 163,052 169.978 165,869 175,738 161,240 169.514 174,207' 156,214 85 Bermuda 9,636 10,469' 23,780 27.421 38,133 40,552 43,422 45,774 43,954 43,584 86 British West Indies18 367,197 0 0 0 0 0 0 0 0 0 87 Cayman Islands18 0 439,190' 512,570 516,117 622,246 651,323 738,272 689,027 703,610' 738,596 88 Cuba 90 88 91 93 207 91 91 92 93 88 89 Jamaica 794 1,182 829 883 855 1,000 929 837 790 707 90 Netherlands Antilles 5,428 3,264 5,001 6,329 4,535 4,432 4,600 5,071 8.289 8,949 91 Trinidad and Tobago 894 1,269 1,405 1,359 1,384 1,373 1,320 1,203 1,404 961 92 Other Caribbean17 0 12,113' 11,341 11,057 11,814 11,913 12,377 13,014 15,806' 16,520 93 305,554 290,923' 318,048 318,865 320,107 326,222 319,078 342,178 336,985' 333,114 China 94 Mainland 16,531 10,486' 15,504 13,544 13,705 17,620 14,998 15,622 17,389' 19,373 95 Taiwan 17,352 17,561' 18,625 22,147 24,171 20,229 21,428 23,214 20,785' 20,836 96 Hong Kong 26,462 26,003' 33,032 36,777 35,816 32,991 34,496 34,034 35,193' 35,781 97 India 4,530 3,676' 7,951 8,074 8,844 8,683 9,279 9,394 7,942' 8,343 98 Indonesia 8,514 12,383 14,109 12,858 12,419 11,943 12,039 11,891 10,478 8,857 99 Israel 8,053 7,870 7,231 9,638 10,226 11,807 10,902 10,269 9,706' 10,026 100 Japan 150,415 154,887' 161,329 162,110 166,425 175,245 166,063 179,918 175.120' 173,526 101 Korea (South) 7,955 8,997' 8,932 7,410 7,062 6,950 6,873 7,935 9.152' 9,393 102 Philippines 2,316 1,772 1.793 1,364 1,536 1,774 1,560 1,869 1.575' 1,980 103 Thailand 3,117 4,743 7,605 6,666 5,035 5,289 5,741 5,293 5.534' 4,729 104 Middle Eastern oil-exporting countries™ 23,763 18,095' 16,364 15,176 12,198 9,858 10,370 14,447 15,784' 13,771 105 Other 36,546 24,450' 25,573 23,101 22,670 23,833 25,329 28,292 28,327' 26,499 106 10,824 11,233' 12,240 11,177 14,404 12,994 13,605 13,184 13,063' 12,839 107 Egypt 2,621 2,778 2,652 2,494 3,624 3,549 3,607 3,536 3,295 2,958 108 Morocco 139 274 306 259 346 283 210 281 234 350 109 South Africa 1,010 711' 1,114 725 2,406 1,807 2,019 2,172 2,028 2,067 110 Congo (formerly Zaire) 4 4 2 3 5 3 4 4 6 7 111 Oil-exporting countries20 4,052 4,377 4,370 4,126 4,552 3,987 4,146 3,701 3,581 3,579 112 Other 2,998 3,089' 3,796 3.570 3,471 3,365 3,619 3,490 3,919' 3,878 113 Other countries 11,341 5,681' 11.388 9,831 11,536 9,576 12,475 12,101 17,774' 15,750 114 Australia 10,070 5,037' 9,332 8,237 9,120 6,842 9,854 9,497 14.351 13,198 115 New Zealand21 0 232' 1,796 1.320 1,940 2,175 2,123 2.039 2,959' 2,252 116 All other 1,271 412 260 274 476 559 498 565 464' 300 117 Nonmonetary international and regional organizations 12,543 10,830 13,467 14,624 12,085 9,377 9.003 8,962 11,781 15,127 118 International22 11,270 9,331 11,282 12,859 10,217 7,955 7,919 7.782 10.726 12,908 119 Latin American regional23 740 480 507 372 547 686 296 339 373 1,616 120 Other regional24 533 935 1,611 1,299 1,216 633 614 693 621 553 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 Internationa] Settlements, which is included in "Other Europe." 18. Beginning January 2001, data for the Cayman Islands replaced data for the British West Indies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 International Statistics • November 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 2003 AArreeaa oorr ccoouunnttrryy 22000000 22000011 22000022 Jan. Feb.' Mar.' Apr.' May' June' July? 1 Total, all foreigners 904,642 l,052,066r 1,088,165 1,083,390 1,225,960 1,307,012 1,332,093 1,328,441 1,359,795 1,380,362 2 Foreign countries 899,956 l,047,120r 1,084,488 1,080,231 2,445,198 2,605,964 2,654,934 2,649,522 2,708,728 2,753,684 3 Europe 378,115 462,418r 484,047 446,105 521,896 542,014 540,062 570,450 588,835 611,431 4 Austria 2,926 5,280r 3,603 4,334 4,142 4,538 4,875 4,165 4,339 5,898 Belgium2 5.399 6,49 lr 6,044 6,273 6,286 7,653 8,120 4,722 6,741 6,987 6 Denmark 3,272 1,105 1,109 1,563 428 748 648 495 1,737 1,314 7 Finland 7,382 10,350 8,518 9,832 9,191 9,462 11,893 8,130 9,191 7,447 8 France 40,035 60,866r 47,705 45,914 48,395 46,458 54,726 52,852 55,435 56,055 9 Germany 36,834 30,044r 22,481 23,395 22,526 22.260 19,908 20,453 22,996 27,264 10 Greece 646 367r 477 296 295 314 234 214 207 190 II Italy 7.629 4,205 3,753 3,177 3,011 4,022 4,536 4,133 6,251 6,101 12 Luxembourg2 0 l,323r 3,407 3,901 4,360 3,149 4,472 6,436 6,214 5,955 13 Netherlands 17,043 16,039r 23,133 19,188 16,031 21,169 18,128 19,769 18,731 20,280 14 Norway 5,012 6,236 13,885 18,606 9,809 11,091 11,672 11,039 15,866 21,058 15 Portugal 1,382 1,603 2,226 2,356 2,342 1,929 2,260 2,457 2,406 2,331 lb Russia 517 594 877 1,025 729 1,107 699 755 815 863 17 Spain 2,603 3,260 5,371 4,154 3,258 2,485 2,916 2,374 2,117 1,626 18 Sweden 9,226 12,756r 15,889 15,329 15,458 16,310 16,860 16,184 15,615 14,721 19 Switzerland 82,085 87,350' 126,958 87,562 101,204 106,937 81,562 98,530 103,425 103,083 20 Turkey 3,059 2,124 2,112 2,021 2,069 2,280 2,441 2,531 2,196 2,379 21 United Kingdom 144,938 201,185' 173.996 167,820 238,510 238,279 247,496 262.408 262,936 273,284 22 Channel Islands and Isle of Man1 0 4,478 17,457 24,393 27,785 35,018 38,641 44,454 44,692 45,857 23 Yugoslavia4 50 0 0 0 0 0 0 0 0 0 24 Other Europe and other former U.S.S.R.5 8,077 6,762 5,046 4,966 6,067 6,805 7,974 8,349 6,925 8,738 25 Canada 39,837 54,421 60,521 65,085 65,990 57,348 58,995 53,892 49,774 53,729 26 Latin America 76,561 69,762 56,642 54,482 55,547 56,089 54,765 56,179 55,634 54,815 21 Argentina 11,519 10,763 6,783 6,663 6,625 6,152 6,080 5,923 6,005 5,493 28 Brazil 20.567 19,434 15,419 14,520 15,358 15,921 15,341 16,392 16,548 16,620 29 Chile 5,815 5,317 5,250 5,077 5,290 5,299 5,342 5,301 5,276 5,751 30 Colombia 4,370 3,602 2,614 2,406 2,712 2,650 2,587 2,480 2,422 2,309 31 Ecuador 635 495 457 439 434 491 482 485 479 441 32 Guatemala 1,244 1,495 892 896 831 970 841 799 773 770 33 Mexico 17,415 16,522 15,658 15,268 14,994 14,792 14,629 15,416 14,640 14,331 34 Panama 2,933 3,061 1,915 1,730 1,861 1,887 1,964 1,903 1,986 1,696 35 Peru 2,807 2,185 1,411 1,403 1,438 1,400 1,448 1,493 1,541 1,479 36 Uruguay 673 447 255 255 308 324 322 313 335 328 37 Venezuela 3,518 3,077 3,254 3,202 3,175 3,301 3,196 3,127 3,201 3,052 38 Other Latin America6 5,065 3,364 2,734 2,623 2,521 2,902 2,533 2,547 2,428 2,545 39 Caribbean 319,403 366,319' 381,637 402,454 470.012 524,385 547,902 521,751 541,396 537,759 40 Bahamas 114.090 101,034 95,584 97,456 86,312 92.186 86,031 91,506 96,660 89,217 41 Bermuda 9.260 7,900 9,902 12,511 17,034 23,343 21,351 21,552 21,965 23,973 42 British West Indies7 189,289 0 0 0 0 0 0 0 0 0 43 Cayman Islands7 0 245,750' 265,000 281,641 354,238 397,575 429,181 396,974 410,091 411,299 44 Cuba 0 0 0 0 0 0 0 0 0 0 45 Jamaica 355 418 321 304 349 381 376 309 327 377 46 Netherlands Antilles 5,801 6,729 6,690 6,445 7,658 6,751 7,009 7,104 7,134 6,736 47 Trinidad and Tobago 608 931 889 865 966 884 848 852 837 796 48 Other Caribbean6 0 3,557 3,251 3,232 3,455 3,265 3,106 3,454 4,382 5,361 49 77,829 85,990' 93,487 103,096 101,607 114,350 117,240 115,304 109,509 111100,,776611 China 50 Mainland 1.606 2.073 1,057 4,799 1,884 9,419 7,819 4,731 6,988 10,860 51 Taiwan 2,247 4.433' 3,772 6,563 5,703 8,272 5,349 5,689 5,395 6,452 52 Hong Kong 6,669 10,035' 7,258 6,490 5,683 5,020 4,788 5,549 7,056 5,070 53 India 2,178 1,348 1,235 1,128 1,194 974 1,077 1,187 1,375 1,432 54 Indonesia 1,914 1,752 1,270 1,223 1,064 1,028 997 993 935 970 55 Israel 2,729 4,396 4,660 5,182 3,328 3,110 4,014 3,971 4,333 4,722 56 Japan 34,974 34,136' 47,600 48,818 56,269 58,395 63,247 62,399 62,048 54,784 57 Korea (South) 7,776 10.653' 11,118 14,473 13,938 13,047 14,841 13,237 7,058 12,988 58 Philippines 1,784 2,587 2.137 2,424 1,536 2,040 1,862 1,651 1,502 1,343 59 Thailand 1,381 2,499 1.167 830 707 1,393 1,263 1,658 1,222 1,317 60 Middle Eastern oil-exporting countries8 9,346 7,882 7,952 8,004 6,405 7,110 6,871 7,271 6,019 5,551 61 Other 5,225 4,196 4,261 3,162 3,896 4,542 5,112 6,968 5,578 5,272 62 2,094 2,146' 1,977 1,945 1,992 2,051 1,850 1,777 1,743 1,565 63 Egypt 201 416 487 511 544 558 551 446 412 411 64 Morocco 204 106 53 53 45 49 42 41 43 43 65 South Africa 309 761' 617 545 577 565 468 546 526 381 66 Congo (formerly Zaire) 0 0 0 0 0 0 0 0 0 0 67 Oil-exporting countries9 471 167 222 240 224 257 215 129 218 182 68 Other 909 696 598 596 602 622 574 558 544 548 69 Other countries 6,117 6.064' 6,177 7,064 5,555 6,745 6,653 5,408 7,473 6,782 70 Australia 5,868 5,677' 5.566 6,212 5,033 5,944 5,892 4,594 6,583 6,023 71 New Zealand10 0 349 569 833 507 705 640 668 794 641 72 All other 249 38 42 19 15 96 121 146 96 118 73 Nonmonetary international and regional organizations" . . 4,686 4.946 3,677 3,159 3,361 4,030 4,626 3,680 5,431 3,520 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 2003 Jan. Feb.r Mar.r Apr.' Mayr Juner Julyp 1 Total claims reported by banks 1,095,869 1,259,328 1,306,306 1,574,897 1,656,804 2 Banks' own claims on foreigners 904,642 1,052,066 1,088,165 1,083,390 1,225,960 1,307,012 1,332,093 1,328,441 1,359,795 1,380,362 3 Foreign official institutions- 37,907 50,618 52,198 62,004 39,635 48,472 47,620 48,816 44,242 52,078 4 Foreign banks-1 725,380 844,865 873,077 854,787 923,129 964,407 987,276 977,851 1,004,189 1,023,183 5 Other foreigners4 141,355 156,583 162,890 166,599 263,196 294,133 297,197 301,774 311,364 305,101 Claims on banks' domestic customers5 191,227 207,262 218,141 267,885 297,009 7 Non-negotiable deposits 100,352 82,566 80,269 107,789 121,784 8 Negotiable CDs 83,845 88,511 9 Other short-term negotiable instruments6 . . 78,147 114,287 131,780 58,025 71,454 10 Other claims 12,728 10,409 6,092 18,226 15,260 MEMO 11 Non-negotiable deposits7 447,703 465,861 497,268 463,085 476.342 482,956 12 Negotiable CDs7 2,221 2,621 1,741 2,198 771 1,456 13 Other short-term negotiable instruments7 9,791 13,513 13,853 13,210 15,562 11,427 14 Other claims7 n.a. n.a. n.a. n.a. 766,245 825,017 819,231 849,948 867,120 884,523 15 Own foreign offices8 630,137 744,498 795,060 768,492 898,051 940,502 956,935 951,671 972,181 975,331 16 Loans collateralized by repurchase agreements9 137,979 161,585 185,804 245,798 287,043 311,728 319,597 310,598 345,043 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are 6. Primarily bankers acceptances and commercial paper. Prior to February 2003, also for the quarter ending with the month indicated. includes negotiable certificates of deposit. Reporting banks include all types of depository institutions as well as banks/financial 7. Data available beginning February 2003. holding companies and brokers and dealers. Effective February 2003, coverage is expanded to 8. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiinclude claims of brokers and dealers on affiliated foreign offices and cross-border balances, aries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory dealers. agencies. For agencies, branches, and minority-owned subsidiaries of foreign banks, consists 2. Prior to February 2003, reflects claims on all foreign public borrowers. principally of amounts due from the head office or parent foreign bank, and from foreign 3. Includes positions with affiliated banking offices also included in memo line (15) below. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. 4. As of February 2003, includes positions with affiliated non-banking offices also included Effective February 2003, includes amounts due from affiliated foreign offices of U.S. brokers in memo line (15) below. and dealers. 5. Assets held by reporting banks in the accounts of their domestic customers. Effective 9. Data available beginning January 2001. March 2003, includes balances in off-shore sweep accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • November 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.p 1 Total 53,020 73,904 66,679 66,679 74,887 70,431 68,225 67,664 73,558 By type 2 Financial liabilities 27,980 47,419 41,034 41,034 46,408 42,826 41,311 39,561 45,119 3 Short-term negotiable securities' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21,415 4 Other liabilities' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2233,,770044 Of which: 5 Borrowinas' 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 currency- n.a. 22,173 22.271 n.a. 25,954 20,776 22,398 20,717 26,756 9 Canadian dollars n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 527 10 Euros n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12,336 I 1 United Kingdom pounds sterling n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7,209 12 Japanese yen n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2,880 13 All other currencies n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3,804 By area or country Financial liabilities 14 Europe 23,241 34,172 31,806 31,806 39,379 35,004 34,809 34,335 35,800 15 Belgium-Luxembourg 31 147 154 154 119 120 232 144 1,164 16 France 1,659 1.480 2.841 2,841 3,531 4.071 3,517 5,243 2,782 17 Germany 1.974 2,168 2,344 2,344 2,982 2.622 2,865 2,923 3,343 18 Netherlands 1.996 2,016 1,954 1,954 1,946 1,935 1,915 1,825 1,797 19 Switerzerland 147 104 94 94 84 61 61 61 19 20 United Kingdom 16,521 26.362 22,852 22,852 28,694 24,338 24.303 22,531 25,539 MEMO: 21 Euro area1 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 countries3 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 Bv 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 area1 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 • November 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 45.964 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 4455,,995599 4444..006644 3322,,449999 Of which: / Loans' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12,674 8 Repurchase agreements' n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5,669 By currency 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 it 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 area3 n.a. 5,580 8.626 n.a. 16,903 18,689 18,542 17,281 20,251 24 Canada 2,553 4,576 6.193 6,193 5,471 5,537 5,485 5,013 5,060 25 Latin America and Caribbean 18,206 19,317 41,201 41,201 34,979 37,489 38,800 29,612 31,802 2b Bahamas 1,593 1,353 976 976 1,197 1,332 715 1,038 757 2/ 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 countries5 23 80 135 135 79 78 88 79 68 36 Africa 286 411 414 414 390 431 379 395 358 37 Oil-exporting countries6 15 57 49 49 51 64 29 25 26 38 All other7 706 894 931 931 2,073 1,117 1,194 1,993 2,272 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A53 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States—Continued Millions of dollars, end of period 2001 2002 2003 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999999 22000000 22000011 Dec. Mar. June Sept. Dec. Mar.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 5?. 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 Allother7 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 • November 2003 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2003 2003 TTrraannssaaccttiioonn,, aanndd aarreeaa oorr ccoouunnttrryy 22000011 22000022 Jan.- July Jan. Feb. Mar. Apr. May June JulyP U.S. corporate securities STOCKS 1 Foreign purchases 3,051,332 3,203,259 1,740,365 216,731 201,408 236,668 233,275 273,263 311,954 267,066 2 Foreign sales 2,934,942 3,153,816 1,729,004 219,527 203,486 233,828 228,918 266,670 301,646 274,929 3 Net purchases, or sales (-) 116,390 49,443 11,361 -2,796 -2,078 2,840 4,357 6,593 10,308 -7,863 4 Foreign countries 116,187 49,496 11,416 -2,773 -2,080 2,860 4,360 6,597 10,325 -7,873 5 Europe 88,099 33,004 5,462 -2,186 1,900 1,360 250 1,526 8,129 -5,517 6 France 5,914 2,127 1,960 206 270 1,816 -1,647 642 -882 1,555 / Germany 8,415 -129 2,333 -63 -65 -780 -118 -260 4,452 -833 8 Netherlands 10,919 4,535 1,004 366 -75 651 -1,090 262 921 -31 y Switzerland 3,456 2,655 -2,863 -724 -990 -22 98 -901 -562 238 10 United Kingdom 38,493 15,173 -7,433 -2,761 1,938 -258 111 -1,181 1,928 -7,876 li Channel Islands and Isle of Man' -698 -255 -145 -2 -17 -42 46 -30 -65 -35 12 Canada 10,984 7,432 2,320 1,481 -1,594 2,376 2,540 -435 2,385 -4,433 13 Latin America and Caribbean -5,154 -15,422 -1,418 -3,104 -2,253 -1,538 1,230 4,575 -1,198 870 14 Middle East2 1,789 -1,293 -340 -72 -21 -51 -7 29 -68 -150 15 Other Asia 20,726 22,672 6,649 1,287 2,774 478 -73 612 770 801 16 Japan 6,788 12,337 -630 561 1,008 -60 -1,093 -677 -597 228 17 Africa -366 -72 97 38 -9 -29 68 -37 101 -35 18 Other countries 109 3,175 -1,354 -217 -2,877 264 352 327 206 591 19 Nonmonetary international and regional organizations 203 -53 -55 -23 2 -20 -3 -4 -17 10 BONDS3 20 Foreign purchases 1,942,690 2,549,132 2,107,274 228,232 207,404 307,241 306,305 381,880' 352,299 323,913 21 Foreign sales 1,556,745 2,171,786 1,822,373 180,540 184,293 263,003 264,370 322,432 322,074 285,661 22 Net purchases, or sales (-) 385,945 377,346 284,901 47,692 23,111 44,238 41,935 59,448r 30,225 38,252 23 Foreign countries 385,379 377,083 285,336 47,836 23,276 44,307 41,525 59,684r 30,720 37,988 24 Europe 195,412 167,140 133,893 27,938 16,528 20,639 25,295 21,452' 5,072 16,969 25 France 5,028 3,771 1,754 1,092 63 142 116 112 -77 306 26 Germany 12,362 5,149 1,071 545 999 -180 -68 143 -631 263 27 Netherlands 1,538 -406 1,637 118 611 -2 -614 317 74 1,133 28 Switzerland 5,721 8,521 5,824 1,154 859 1,034 1,263 366 346 802 29 United Kingdom 152,772 109,836 84,448 15,960 6,826 14,772 16,951 13,911 5,040 1100,,998888 30 Channel Islands and Isle of Man' 2,000 11,173 18,395 5,420 1,533 4,138 3,091 3,320 9 888844 31 Canada 4,595 -1,037 1,112 -892 193 1,169 -894 1,428 -236 344 32 Latin America and Caribbean 77,019 82,837 67,772 6,564 -6,379 10,217 1,978 25,924' 12,604 16,864 33 Middle East2 2,337 2,315 1,104 591 42 37 31 -277' 170 510 34 Other Asia 106,400 121,470 79,668 13,593 12,767 11,038 15,586 10,929' 12,314 3,441 35 Japan 33,687 48,482 25,925 4,025 4,566 1,456 8,549 3,885' 4,712 -1,268 36 Africa 760 860 1,553 53 80 779 147 110 241 143 37 Other countries -1,144 3,498 234 -11 45 428 -618 118 555 -283 38 Nonmonetary international and regional organizations 566 263 -435 -144 -165 -69 410 -236 -495 264 Foreign securities 39 Stocks, net purchases, or sales (-) -50,113 -1,629 -34,955 -6,893 ^1,474 -5,363 2,073 -10,800 -5,231' -4,267 40 Foreign purchases 1,397,664 1,260,278 716,148 94,622 83,683 91,096 100,054 99,777 116,975' 129,941 41 Foreign sales 1,447.777 1,261,907 751,103 101,515 88,157 96,459 97,981 110,577 122,206' 134,208 42 Bonds, net purchases, or sales (-) 30,502 28,406 36,277 -1,915 4,493 7,315 -2,416 14,049 11,738 3,013 43 Foreign purchases 1,160,102 1,377,020 1,213,840 140,513 122,893 166,837 135,970 230,256 209,730 207,641 44 Foreign sales 1,129,600 1,348,614 1,177,563 142,428 118,400 159,522 138,386 216,207 197,992 204,628 45 Net purchases, or sales (-), of stocks and bonds -19,611 26,777 1,322 -8,808 19 1,952 -343 3,249 6,507' -1,254 46 Foreign countries -19,024 26,814 1,346 -8,829 -77 1,971 -256 3,270 6,485r -1,218 47 Europe -12,108 15,407 4,824 -5,090 -1,592 6,270 4,409 1,593 3,575' -4,341 48 Canada 2,943 4,849 9,660 3,890 603 -302 -600 2,106 651' 3,312 49 Latin America and Caribbean 4,315 4,562 -16.465 -7,886 862 -3,381 -7,450 1,289 4,438 -4,337 50 Asia -11,869 1,591 3,611 -261 194 -971 3,456 -649 -1,456' 3,298 51 Japan -20,116 -9,119 -4,181 -1,233 -1,447 1,557 2,218 1,509 -4,009' -2,776 52 Africa -558 -379 224 -55 -34 27 -11 5 139' 153 53 Other countries -1,747 784 -508 573 -110 328 -60 -1,074 -862' 697 54 Nonmonetary international and regional organizations -587 -37 -24 21 96 -19 -87 -21 22 -36 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 2003 Area or country 2001 2002 JJ JJ aa uu nn llyy ..-- Jan. Feb. Mar. Apr. May June Julyp 1 Total estimated 18,514 120,537 166,483 2,819 -2,421 26,390 9,792 41,109 44,108 44,686 2 Foreign countries 19,200 118,526 167,168 2,436 -2,177 26,441 9,844 40,793 44,205 45,626 3 Europe -20,604 43,008 53,836 1,958 -5,238 649 7,739 6,132 20,710 21,886 4 Belgium2 -598 2,046 -250 3,371 -1,379 -2,722 218 77 -82 267 5 Germany -1,668 -3,910 6,885 -1,183 -257 -270 1,148 3,449 874 3,124 6 Luxembourg2 462 -1,609 1,156 75 358 83 33 -2 127 482 7 Netherlands -6,728 -17,020 5,898 -4,085 1,360 959 4,425 2,216 659 364 8 Sweden -1,190 2,923 1,821 422 190 522 -240 482 608 -163 9 Switzerland 1,412 -508 2,978 -86 -1,050 1,067 -784 749 1,700 1,382 10 United Kingdom -7,279 60,995 29,698 1,313 -2,912 3,256 571 -523 8,439 19,554 11 Channel Islands and Isle of Man3 -179 714 1,822 -11 9 37 140 550 973 124 12 Other Europe and former U.S.S.R -4,836 -623 3.828 2,142 -1,557 -2,283 2,228 -866 7,412 -3,248 13 Canada -1,634 -5,198 6.829 -698 -1,871 1,782 820 -1,317 4,102 4,011 14 Latin America and Caribbean 4,272 21,116 23,549 -1,891 3,384 11,179 -6,109 10,705 -1,690 7,971 15 Venezuela 290 -59 233 20 97 23 13 37 9 34 16 Other Latin America and Caribbean 14,726 21,955 23,204 2,676 2,323 8,550 -4,809 7,234 1,219 6,011 17 Netherlands Antilles -10,744 -780 112 -4,587 964 2,606 -1,313 3,434 -2,918 1,926 18 Asia 36,332 55,850 77,860 2,630 2,287 12,246 7,178 25,236 18,693 9,590 19 Japan 16,114 30,730 51,642 3,512 5,580 -1,221 5,532 25,097 11,698 1,444 20 Africa -880 841 259 84 -43 -16 127 -59 86 80 21 Other 1,714 2,909 4,835 353 -696 601 89 96 2,304 2,088 22 Nonmonetary international and regional organizations -686 2,011 -685 383 -244 -51 -52 316 -97 -940 23 International -290 1,642 -554 170 -130 -109 85 381 177 -1,128 24 Latin American Caribbean regional 41 -3 -123 -15 -38 -28 -37 -6 -3 4 MEMO 25 Foreign countries 19,200 118,526 167,168 2,436 -2,177 26,441 9,844 40,793 44,205 45,626 26 Official institutions 3,474 9,809 48,915 312 4,823 1,322 14,749 15,045 13,085 27 Other foreign 15,726 108,717 118,253 2,124 -7,000 25,119 10,265 26,044 29,160 32,541 Oil-exporting countries 28 Middle East4 865 -3,918 -6,955 509 -4,252 128 -2,772 -1,018 55 395 29 Africa5 -2 29 1 0 0 0 0 0 1 0 1. Official and private transactions in marketable U.S. Treasury securities having an 3. Before January 2001, these data were included in the data reported for the United original maturity of more than one year. Data are based on monthly transactions reports. Kingdom. Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab countries. Emirates (Trucial States). 2. Before January 2001, combined data reported for Belgium and Luxembourg. 5. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • November 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 Apr. May June July Aug. Sept. Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 58.15 51.69 54.37 61.00 64.68 66.52 66.07 65.18 66.35 2 Brazil/real 1.8301 2.3527 2.9213 3.1090 2.9517 2.8887 2.8833 3.0053 2.9204 3 Canada/dollar 1.4855 1.5487 1.5704 1.4582 1.3840 1.3525 1.3821 1.3963 1.3634 4 China. P.R./yuan 8.2784 8.2770 8.2770 8.2772 8.2769 8.2771 8.2773 8.2770 8.2772 5 Denmark/krone 8.0953 8.3323 7.8862 6.8381 6.4268 6.3620 6.5425 6.6653 6.5953 6 European Monetary Union/euro3 0.9232 0.8952 0.9454 1.0862 1.1556 1.1674 1.1365 1.1155 1.1267 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 7.7996 7.7991 7.7988 7.7990 7.7990 7.7850 9 India/rupee 45.00 47.22 48.63 47.39 47.11 46.70 46.22 45.96 45.85 10 Japan/yen 107.80 121.57 125.22 119.90 117.37 118.33 118.70 118.66 114.80 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 10.589 10.253 10.503 10.458 10.783 10.923 13 New Zealand/dollar2 45.68 42.02 46.45 55.18 57.56 58.15 58.64 58.29 58.43 14 Norway/krone 8.8131 8.9964 7.9839 7.2032 6.8145 7.0093 7.2924 7.4096 7.2782 15 Singapore/dollar 1.7250 1.7930 1.7908 1.7771 1.7357 1.7351 1.7551 1.7533 1.7466 16 South Africa/rand 6.9468 8.6093 10.5176 7.6634 7.6604 7.8588 7.5458 7.3945 7.3060 17 South Korea/won 1,130.90 1,292.01 1,250.31 1,231.10 1,201.23 1,194.14 1,181.16 1,178.60 1,165.40 18 Sri Lanka/rupee 76.964 89.602 95.773 97.004 97.231 97.236 97.153 96.975 95.284 19 Sweden/krona 9.1735 10.3425 9.7233 8.4314 7.9213 7.8116 8.0929 8.2821 8.0426 20 Switzerland/franc 1.6904 1.6891 1.5567 1.3783 1.3111 1.3196 1.3611 1.3811 1.3743 21 Taiwan/dollar 31.260 33.824 34.536 34.824 34.697 34.633 34.396 34.318 33.995 21 Thailand/baht 40.210 44.532 43.019 42.929 42.217 41.675 41.808 41.656 40.483 23 United Kingdom/pound2 151.56 143.96 150.25 157.39 162.24 166.09 162.21 159.39 161.55 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)5 119.68 126.08 127.19 122.54 118.54 117.93 119.11 120.43 119.03 26 Major currencies (March 1973=100)6 98.31 104.28 102.85 93.98 89.67 88.68 90.42 91.48 89.68 27 Other important trading partners (January 1997=100)' 130.34 136.36 141.42 145.15 142.75 143.07 142.84 144.32 144.06 REAL 28 Broad (March 1973=100)5 104.47r 110.50r 110.88r 106.63r 103.11' 102.84' 104.05' 105.35' 103.98 29 Major currencies (March 1973—100)6 103.29r 110.73 109.36 100.381" 95.60' 94.64' 96.73' 98.02' 96.10 30 Other important trading partners (March 1973-100! 114.81r 119.47' 122.29r 124.32' 122.43' 123.21' 123.15' 124.57' 123.93 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 4. Starting with the March 2003 Bulletin, revised index values resulting from the periodic table also appear in the Board's G.5 (405) monthly statistical release. For ordering address, revision of data that underlie the calculated trade weights are reported. For more information see inside front cover. on the indexes of the foreign exchange value of the dollar, see Federal Reserve Bulletin, vol. 2. U.S. cents per currency unit. 84 (October 1998), pp. 811-818. 3. The euro is reported in place of the individual euro area currencies. By convention, the 5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies rate is reported in U.S. dollars per euro. The bilateral currency rates can be derived from the of a broad group of U.S. trading partners. The weight for each currency is computed as an euro rate by using the fixed conversion rates (in currencies per euro) as shown below: average of U.S. bilateral import shares from and export shares to the issuing country and of a measure of the importance to U.S. exporters of that country's trade in third country markets. Euro equals 6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 13.7603 Austrian schillings 1,936.27 Italian lire broad index currencies that circulate widely outside the country of issue. The weight for each 40.3399 Belgian francs 40.3399 Luxembourg francs currency is its broad index weight scaled so that the weights of the subset of currencies in the 5.94573 Finnish markkas 2.20371 Netherlands guilders index sum to one. 6.55957 French francs 200.482 Portuguese escudos 7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 1.95583 German marks 166.386 Spanish pesetas broad index currencies that do not circulate widely outside the country of issue. The weight .787564 Irish pounds 340.750 Greek drachmas for each currency is its broad index weight scaled so that the weights of the subset of currencies in the index sum to one. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A57 Guide to Special Tables and Statistical Releases SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks September 30, 2002 February 2003 A58 December 31, 2002 May 2003 A58 March 31,2003 August 2003 A58 June 30, 2003 November 2003 A58 Terms of lending at commercial banks November 2002 February 2003 A60 February 2003 May 2003 A60 May 2003 August 2003 A60 August 2003 November 2003 A60 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 2002 February 2003 A66 December 31, 2002 May 2003 A66 March 31, 2003 August 2003 A66 June 30, 2003 November 2003 A66 Pro forma financial statements for Federal Reserve priced services March 31,2001 August 2001 A76 June 30,2001 October 2001 A64 September 30,2001 January 2002 A64 Residential lending reported under the Home Mortgage Disclosure Act 1989-2001 September 2002 A58 1990-2002 September 2003 A58 Disposition of applications for private mortgage insurance 1998-2001 September 2002 A67 1999-2002 September 2003 A67 Small loans to businesses and farms 1996-2001 September 2002 A70 1996-2002 September 2003 A70 Community development lending reported under the Community Reinvestment Act 2001 September 2002 A73 2002 September 2003 A73 STATISTICAL RELEASES—A List of Statistical Releases Published by the Federal Reserve is Printed Semiannually in the Bulletin Issue Page Schedule of anticipated release dates for periodic releases June 2003 A66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 Special Tables • November 2003 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, June 30, 2003 Millions of dollars except as noted Banks with Banks with foreign offices' domestic Domestic offices only2 IItteemm TToottaall Total Domestic Total 1 Total assets 7,365,122 6,560,705 4,961,742 4,157,326 2,403,380 2 Cash and balances due from depository institutions 415,309 301,318 307,488 193,497 107,821 3 Cash items in process of collection, unposted debits, and currency and coin n.a. n.a. 138,708 136,093 n.a. 4 Cash items in process of collection and unposted debits n.a. n.a. n.a. 114,356 n.a. 5 Currency and coin n.a. n.a. n.a. 21,736 n.a. 6 Balances due from depository institutions in the United States n.a. n.a. 44,544 36,484 n.a. 7 Balances due from banks in foreign countries and foreign central banks n.a. n.a. 109,356 6,129 n.a. 8 Balances due from Federal Reserve Banks n.a. n.a. 14,880 14,792 n.a. 9 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 1,415,414 n.a. 855,480 n.a. 559,934 10 U.S. Treasury securities 60,756 n.a. 38,030 n.a. 22,726 11 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 228,549 n.a. 92,620 n.a. 113355,,992299 12 Issued by U.S. government agencies 8,344 n.a. 5,447 n.a. 2,896 13 Issued by U.S. government-sponsored agencies 220,206 n.a. 87,173 n.a. 133,033 14 Securities issued by states and political subdivisions in the United States 108,332 n.a. 36,906 n.a. 71,427 15 Mortgage-backed securities (MBS) 804,511 n.a. 552,137 n.a. 252,374 16 Pass-through securities 542,156 n.a. 397,689 n.a. 144,468 17 Guaranteed by GNMA 81,323 n.a. 58,970 n.a. 22,353 18 Issued by FNMA and FHLMC 453,986 n.a. 333,048 n.a. 120,938 19 Other pass-through securities 6,848 n.a. 5,671 n.a. 1,177 20 Other mortgage-backed securities (includes CMOs, REMlCs, and stripped MBS) 262,355 n.a. 154,449 n.a. 107,906 21 Issued or guaranteed by FNMA, FHLMC or GNMA 179,796 n.a. 99,912 n.a. 79,883 22 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 5,064 n.a. 3,905 n.a. 1,159 23 All other mortgage-backed securities 77,495 n.a. 50,632 n.a. 26,864 24 Asset-backed securities 91,773 n.a. 52,252 n.a. 39,521 25 Credit card receivables 38,010 n.a. 23,286 n.a. 14,724 26 Home equity lines 27,747 n.a. 17,672 n.a. 10,075 77 Automobile loans 11,647 n.a. 5,296 n.a. 6,351 28 Other consumer loans 1,561 n.a. 1,146 n.a. 415 79 Commercial and industrial loans 4,231 n.a. 1,423 n.a. 2,808 30 8,578 n.a. 3,428 n.a. 5,149 31 Other debt securities 103,437 n.a. 73,986 n.a. 29,451 37 Other domestic debt securities 36,806 n.a. 13,170 n.a. 23,636 33 Foreign debt securities 66,631 n.a. 60,817 n.a. 5,814 34 Investments in mutual funds and other equity securities with readily determinable fair value 18,056 n.a. 9,549 n.a. 8,507 35 Federal funds sold and securities purchased under agreements to resell 371,429 315,529 272,596 216,696 98,833 36 Federal funds sold in domestic offices 191,456 191,456 102,573 102,573 88,883 37 Securities purchased under agreements to resell 179,973 124,073 170,023 114,123 9,950 38 Total loans and leases (gross) and lease-financing receivables (net) 4,216,839 3,919,500 2,697,380 2,400,041 1,519,459 39 LESS: Unearned income on loans 3,415 2,322 2,355 1,262 1,060 40 LESS: Loans and leases held for sale 275,613 n.a. 219,389 n.a. 56,224 41 Total loans and leases (net of unearned income) 3,937,811 n.a. 2,475,636 n.a. 1,462,175 47 LESS: Allowance for loan and lease losses 74,761 n.a. 51,146 n.a. 23,615 43 Loans and leases, net of unearned income and allowance 3,863,050 n.a. 2,424,490 n.a. 1,438,560 Total loans and leases, gross, by category 44 Loans secured by real estate 2,184,220 2,150,821 1,244,555 1,211,157 993399,,666644 45 Construction and land development n.a. 216,338 n.a. 102,520 113,818 46 Farmland n.a. 39,660 n.a. 6,800 32,860 47 One- to four-family residential properties n.a. 1,245,666 n.a. 818,981 426,685 48 Revolving, open-end loans, extended under lines of credit n.a. 246,193 n.a. 169,627 76,565 Closed-end loans secured by one- to four-family residential properties 49 Secured by first liens n.a. 916,946 n.a. 602,382 314,564 50 Secured by junior liens n.a. 82,527 n.a. 46,971 35,555 51 Multifamily (five or more) residential properties n.a. 76,453 n.a. 38,095 38,358 57 Nonfarm nonresidential properties n.a. 572,704 n.a. 244,761 327,943 53 Loans to depository institutions and acceptances of other banks 146,521 118,364 133,212 105,054 13,309 54 Commercial banks in the United States n.a. n.a. 82,982 69,310 n.a. 55 Other depository institutions in the United States n.a. n.a. 31,159 31,092 n.a. 56 n.a. n.a. 19,071 4,652 n.a. 57 Loans to finance agricultural production and other loans to farmers 45,484 44,970 9,714 9,200 35,770 58 882,981 755,360 641,956 514,335 241,024 59 n.a. n.a. 518,462 505,833 n.a. 60 Non-U.S. addressees (domicile) n.a. n.a. 123,494 8,502 n.a. 61 Loans to individuals for household, family, and other personal expenditures (includes 648,428 584,295 393,183 329,050 225555,,224455 67 214,084 192,712 135,722 114,351 78,362 63 36,824 24,741 31,977 19,893 4,848 64 Other consumer loans (including single-payment, installment, and all student loans) 397,519 366,841 225,484 194,806 172,035 65 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 22,390 22,390 1133,,449944 1133,,449944 88,,889966 66 132,757 103,934 120,265 91,441 12,492 67 Loans to foreign governments and official institutions 6,083 2,310 6,043 2,269 41 68 126,674 101.623 114,222 89,172 12,452 69 Loans for purchasing and carrying securities n.a. n.a. n.a. 22,753 n.a. 70 All other loans (excludes consumer loans) n.a. n.a. n.a. 66,419 n.a. 71 154,058 139,368 141,000 126,310 13,058 77 408,258 n.a. 403,979 n.a. 4,278 73 Premises and fixed assets (including capitalized leases) 79,928 n.a. 45,899 n.a. 34,029 74 Other real estate owned 4,628 n.a. 1,879 n.a. 2,749 75 Investments in unconsolidated subsidiaries and associated companies 9,067 n.a. 8,592 n.a. 475 76 Customers' liability on acceptances outstanding 5,869 n.a. 5,641 n.a. 228 77 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 30,137 n.a. 78 128,559 n.a. 103,737 n.a. 24,822 79 89,810 n.a. 72,049 n.a. 17,761 80 Other intangible assets 38,748 n.a. 31,688 n.a. 7,061 81 387.997 n.a. 312,571 n.a. 75,426 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A59 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, June 30, 2003 Millions of dollars except as noted Banks with Banks with foreign offices' domestic IItteemm TToottaall DDoo tt mm oott ee aa ss ll ttiicc offices only2 Total Domestic Total 82 Total liabilities, minority interest, and equity capital 7,365,122 n.a. 4,961,742 n.a. 2,403,380 83 Total liabilities 6,693,648 5,889,231 4,529,565 3,725,149 2,164,083 84 Total deposits 4,884,358 4,206,743 3,128,274 2,450,659 1,756,085 85 Individuals, partnerships, and corporations (include all certified and official checks) 4,388,345 3,899,375 2,767,962 2,278,991 1,620,384 86 U.S. government n.a. 31,372 n.a. 30,046 1,325 87 States and political subdivisions in the United States n.a. 207,045 n.a. 95,416 111,630 88 Commercial banks and other depository institutions in the United States 104,890 55,990 82,517 33,616 22,373 89 Banks in foreign countries 125,741 11,933 125,382 11,575 358 90 Foreign governments and official institutions (including foreign central banks) 26,684 1,029 26,669 1,015 14 91 Total transaction accounts n.a. 726,253 n.a. 388,319 337,934 92 Individuals, partnerships, and corporations (include all certified and official checks) n.a. 621,037 n.a. 323,731 297,306 93 U.S. government n.a. 3,578 n.a. 2,728 850 94 States and political subdivisions in the United States n.a. 59,632 n.a. 28,284 31,348 95 Commercial banks and other depository institutions in the United States n.a. 35,043 n.a. 26,815 8,229 96 Banks in foreign countries n.a. 6,354 n.a. 6,163 190 97 Foreign governments and official institutions (including foreign central banks) n.a. 609 n.a. 598 11 98 Total demand deposits n.a. 549,025 n.a. 337,891 211,134 99 Total nontransaction accounts n.a. 3,480,490 n.a. 2,062,340 1,418,150 100 Individuals, partnerships, and corporations (include all certified and official checks) n.a. 3,278,338 n.a. 1,955,261 1,323,077 101 U.S. government n.a. 27,794 n.a. 27,318 476 102 States and political subdivisions in the United States n.a. 147,413 n.a. 67,131 80,282 103 Commercial banks and other depository institutions in the United States n.a. 20,946 n.a. 6,802 14,144 104 Banks in foreign countries n.a. 5,579 n.a. 5,411 168 105 Foreign governments and official institutions (including foreign central banks) n.a. 420 n.a. 416 4 106 Federal funds purchased and securities sold under agreements to repurchase 603,750 563,669 468,306 428,225 135,444 107 Federal funds purchased in domestic offices 240,255 240,255 173,020 173,020 67,235 108 Securities sold under agreements to repurchase 363,495 323,413 295,286 255,205 68,208 109 Trading liabilities 253,765 n.a. 252,829 n.a. 935 110 Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases) 575,318 532,792 353,560 311,034 221,758 111 Banks' liability on acceptances executed and outstanding 5,876 4,119 5,648 3,891 228 112 Subordinated notes and debentures to deposits 96,629 n.a. 88,098 n.a. 8,531 113 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 137,855 n.a. 114 All other liabilities 273,952 n.a. 232,850 n.a. 41,102 115 Minority interest in consolidated subsidiaries 13,049 n.a. 11,071 n.a. 1,978 116 Total equity capital 658,425 n.a. 421,106 n.a. 237,319 MEMO 117 Trading assets at large banks2 407,964 205,524 403,741 201,301 4,223 118 U.S. Treasury securities (domestic offices) n.a. 19,661 n.a. 19,446 215 119 U.S. government agency obligations (excluding MBS) n.a. 10,156 n.a. 9,796 360 120 Securities issued by states and political subdivisions in the United States n.a. 1,251 n.a. 987 264 121 Mortgage-backed securities n.a. 8,151 n.a. 5,615 2,535 122 Other debt securities n.a. 36,318 n.a. 36,042 276 123 Other trading assets n.a. 21,118 n.a. 20,875 243 124 Trading assets in foreign offices 107,485 0 107,485 0 0 125 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 203,826 108,870 203,496 108,540 330 126 Total individual retirement (IRA) and Keogh plan accounts n.a. 167,958 n.a. 74,194 93,764 127 Total brokered deposits n.a. 249,650 n.a. 120,979 128,671 128 Fully insured brokered deposits n.a. 166,380 n.a. 67,435 98,945 129 Issued in denominations of less than $100,000 n.a. 91,759 n.a. 31,915 59,844 130 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. 74,621 n.a. 35,520 39,101 131 Money market deposit accounts (MMDAs) n.a. 1,592,902 n.a. 1,085,851 507,051 132 Other savings deposits (excluding MMDAs) n.a. 615,485 n.a. 362,129 253,355 133 Total time deposits of less than $100,000 n.a. 678,587 n.a. 277,083 401,504 134 Total time deposits of $ 100,000 or more n.a. 593,517 n.a. 337,276 256,240 135 Number of banks 7,812 7,812 122 n.a. 7,690 NOTE. The notation "n.a." indicates the lesser detail available from banks that do not have Foreign offices include branches in foreign countries, Puerto Rico, and US.-affiliated foreign offices, the inapplicability of certain items to banks that have only domestic offices, or insular areas; subsidiaries in foreign countries; all offices of Edge Act and agreement the absence of detail on a fully consolidated basis for banks that have foreign offices. corporations wherever located; and international banking facility (IBF). 1. All transactions between domestic and foreign offices of a bank are reported in "net due 2. Components of "Trading Assets at Large Banks" are reported only by banks that from" and "net due to" lines. All other lines represent transactions with parties other than the reported trading assets of $2 million or more any quarter of the preceding calendar year. domestic and foreign offices of each bank. Because these intra-office transactions are nullified by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets and liabilities, respectively, of the domestic and foreign offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 Special Tables • November 2003 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 4-8, 2003 A. Commercial and industrial loans made by all commercial banks' Weighted- Weighted- Percent of amount of loans (percent) Commitment status Ma r i t i n u s t k r e i r t o y v f / a r l l e 2 o p a a r n n ic s d 3 i ng ( e l p a o f e v a f r e e n c r c e a r t n i g a v t t e e ) e 4 A o ( f m m l d o o il o a u l l i n n l o s a t n r s o s ) f (th l A o d o u o a v s n l e l a r a n a s r i d g s z ) s e e of m a a v D t e u a r r y a i s g t y e 5 S c e o c l u la re te d r a b l y p S re u p p e b a n je y a c l m t t y e t o n t P c e o r m c u e m n n d i t t e m m r e a n d t e LOAN RISK 1 All commercial and industrial loans 3.15 58,650 422 567 37.5 22.4 34.8 2 Minimal risk 2.22 1,456 369 428 26.9 20.5 16.4 3 Low risk 2.63 12,925 1.222 582 14.1 23.3 21.4 81.1 4 Moderate risk 3.22 20,322 508 747 40.3 21.5 35.3 86.0 5 Other 3.60 14,729 315 399 51.4 23.5 38.1 76.0 By maturity/repricing interval 6 Zero interval 4.40 15,484 253 841 41.1 11.5 66.9 86.1 7 Minimal risk 3.39 223 153 563 58.9 3.3 50.7 96.2 8 Low risk 4.39 3,894 1,096 1153 5.7 1.8 53.3 59.3 9 Moderate risk 4.27 6,199 282 936 40.5 13.1 71.3 96.0 10 Other 4.59 4,634 184 480 65.6 19.0 74.1 94.3 11 Daily 2.29 20,863 646 231 28.0 26.4 26.9 72.6 12 Minimal risk ).43 537 2.178 51 3.6 33.9 14.9 94.4 13 Low risk 1.30 5,218 4,423 167 5.5 35.5 3.4 88.8 14 Moderate risk 2.26 4,963 1,051 390 27.9 22.2 18.6 83.5 15 Other 2.76 4,794 468 128 42.9 21.6 26.4 51.5 16 2 to 30 days 2.64 9,139 644 416 34.3 29.0 18.3 75.9 17 Minimal risk 1.58 331 2,105 158 14.7 17.1 3.6 82.9 18 Low risk 2.11 1,529 852 380 20.3 36.2 12.6 95.3 19 Moderate risk 2.73 3,396 1,103 559 37.3 28.2 18.3 83.3 20 Other 3.04 2,285 376 211 39.0 36.0 10.7 73.1 21 31 to 365 days 3.01 10,077 627 608 45.2 27.6 14.9 84.0 22 Minimal risk 2.33 229 186 663 60.7 8.8 7.4 70.9 23 Low risk 2.61 1,900 941 524 36.8 25.3 9.6 93.8 24 Moderate risk 2.84 4,392 801 695 51.3 29.6 16.6 82.8 25 Other 3.67 2,500 1.047 622 49.6 25.9 17.7 93.2 26 More than 365 days 4.84 2.889 210 66.9 15.7 38.6 59.2 27 Minimal risk 4.85 134 160 38.9 24.2 10.8 48.5 28 Low risk 5.04 384 189 78.1 14.2 36.3 77.6 28 Moderate risk . . . 4.49 1,275 298 58.3 14.9 34.0 64.2 30 Other 4.84 452 215 66.3 17.4 39.7 66.2 Weighted- Weighted- average average risk maturity/ rating3 repricing interval2 Days SIZE OF LOAN (thousands of dollars) 31 1-99 5.03 2,501 3.4 184 82.4 4.1 75.1 86.2 32 100-999 4.28 8,379 3.4 159 71.6 8.1 71.6 87.3 33 1,000-9,999 3.15 18,315 3.2 126 36.9 30.5 30.2 79.0 34 10,000 or more 2.67 29,455 2.9 59 24.2 23.1 23.7 74.1 Average size (thousands of dollars) BASE RATE OF LOAN7 35 Prime8 4.59 20,385 3.2 92 56.6 4.0 206.0 89.9 36 Other 2.39 38,265 3.0 104 27.3 32.3 958.0 71.8 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A61 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 4-8, 2003—Continued B. Commercial and industrial loans made by all domestic banks' Ma r i t i n u s t k r e i r t o y v f / a r l l e 2 o p a a r n n ic s d 3 i ng W ( e l p a o f e e v a f i r e e n g c r c h e a t r t n i g a e v t e t d ) e e 4 - A o ( f m m l d o o il o u a l l i n n l o a s t n r s o s ) f (th l o d o u o an s ll a a n s r i d s z ) s e of W m a e a v D i t e g u a r h r y a i t s g t e y e d 5 - S c e o c l u P la r e e t r e d c r e a b n l y t of am p S o re p u u p e b n a n j t e y a o c m l t f t y e t l n o o t a ns (percent) P c e o r m c u e m C n n i d t o t e m m m r e m a n d i t e t m en m t l o o A s n a t v n a th t e u s t r s e a s r g m i e n s c e LOAN RISK 1 All commercial and industrial loans 44,558 330 42.7 12.3 43.6 81.6 2 Minimal risk 896 236 30.6 25.0 26.2 89.7 3 Low risk 11,305 1,118 596 13.9 19.9 23.8 79.4 4 Moderate risk 15,926 409 906 45.9 13.1 43.3 84.5 5 Other 9,023 201 590 67.0 4.8 58.1 88.6 By maturity/repricing interval 6 Zero interval 13,608 226 936 46.0 2.0 73.3 84.2 7 Minimal risk 219 151 563 59.8 3.3 49.9 96.1 8 Low risk 3,836 1,103 1,158 5.7 1.4 53.0 58.6 9 Moderate risk 5,419 249 1,059 45.7 2.7 79.4 95.4 10 Other 3,605 146 576 82.3 1.8 89.3 92.7 11 Daily 14,375 462 328 30.8 20.9 37.8 80.5 12 Minimal risk 310 1,806 95 6.3 58.8 25.9 90.2 13 Low risk 4,669 4,371 166 2.2 31.9 3.9 87.5 14 Moderate risk 3,155 702 599 39.2 31.5 28.1 74.3 15 Other 1,950 200 334 51.0 2.8 60.9 77.6 16 2 to 30 days 6,401 487 535 40.0 11.8 22.7 79.9 17 Minimal risk 205 1,587 226 20.9 .1 5.9 100.0 18 Low risk 1,119 682 384 25.1 25.2 17.2 97.7 19 Moderate risk 2,650 959 670 38.4 13.2 20.7 83.7 20 Other 1,164 206 399 61.4 4.3 16.5 90.5 21 31 to 365 days 7,179 477 624 51.8 14.6 18.8 88.1 22 Minimal risk 68 57 205 39.1 3.0 25.1 62.6 23 Low risk 1,298 387 51.5 28.6 10.9 96.2 24 Moderate risk 3,371 649 763 53.5 13.5 20.5 83.4 25 Other 1,792 907 598 56.7 10.1 23.2 96.8 Months 26 More than 365 days 4.89 2,800 203 14.5 39.8 60.8 27 Minimal risk 5.54 93 111 56.2 34.9 15.6 70.0 28 Low risk 5.04 384 189 78.1 14.2 36.3 77.6 28 Moderate risk 4.52 1,234 289 60.3 12.0 35.2 66.4 30 Other 4.84 452 215 66.3 17.4 39.7 66.2 Weighted- Weighted- average average risk maturity/ rating3 repricing interval- Days SIZE OF LOAN (thousands of dollars) 31 1-99 5.04 2,476 3.4 185 3.9 75.2 86.1 16.5 32 100-999 4.33 7,830 3.4 169 75.0 5.5 74.0 87.2 19.1 33 1,000-9,999 3.52 11,733 3.2 175 49.9 13.2 42.0 85.7 16.5 34 10,000 or more 2.83 22,519 2.6 72 23.3 15.1 30.5 77.0 8.0 Average size (thousands of dollars) BASE RATE OF LOAN7 35 Prime8 . 4.57 19,445 3.2 95 57.5 3.1 198.0 89.6 14.2 36 Other . 2.48 25,113 2.8 143 31.2 19.4 681.0 75.4 11.7 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 Special Tables • November 2003 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 4-8, 2003—Continued C. Commercial and industrial loans made by large domestic banks' Maturity/repricing W a e v i e g r h a t g e e d - Amount of Average W a e v i e g r h a t g e e d - Percent of amount of loans (percent) Commitment status r i i n s t k e r o v f a l l 2 o a a n n s d 3 ( e l p o f e f a r e n c c e t r n i a v t te ) e 4 o ( f m l d i o l o a l l i n l o a s n r s s ) (th l o d o u o a s n ll a a n s r i d s z ) s e of ma D tu a r y i s t y5 S c e o c l u la re te d r a b l y p S re u p p b e a n je y a c m l t t y e t o n t P c e o r m c u e m n n d t i t e m m r e a n d t e LOAN RISK 1 All commercial and industrial loans 3.12 38,506 549 632 36.0 13.2 39.8 82.5 2 Minimal risk 1.75 656 1,035 308 26.1 29.1 22.4 94.2 3 Low risk 2.51 10,464 3,818 563 9.9 21.1 21.6 79.4 4 Moderate risk 3.28 13,762 811 39.4 13.6 38.9 87.7 5 Other 4.06 7,655 528 63.0 4.7 56.4 89.0 By maturity/repricing interval 6 Zero interval 4.52 10,982 403 1,015 37.0 1.9 70.0 82.3 7 Minimal risk 2.87 118 302 696 80.0 5.5 58.6 93.5 8 Low risk 4.31 3,559 5,703 1,147 2.3 .5 50.3 56.8 9 Moderate risk 4.56 4,407 417 1,166 37.0 2.8 76.8 96.6 10 Other 4.82 2,741 208 603 78.5 1.9 87.3 92.3 11 Daily 2.24 13,549 480 326 27.1 22.0 34.1 79.9 12 Minimal risk 1.21 303 3,381 70 6.4 60.0 24.4 90.0 13 Low risk 1.25 4,652 6,103 164 1.9 32.0 3.5 87.6 14 Moderate risk 2.57 3,025 910 568 38.2 32.9 25.0 74.1 15 Other 3.43 1,918 204 317 50.5 2.8 60.3 78.3 1 1 6 7 2 to M 3 in 0 i m da a y l s r isk 2 1 . . 5 3 8 5 5,6 1 1 9 6 0 2, 6 7 6 8 0 6 5 22 0 5 6 3 1 5 6 . . 6 4 13. . 3 1 20..22 1 8 0 1 0 . . 1 0 18 Low risk 2.20 938 1,041 422 25.2 30.0 17.1 97.5 19 Moderate risk 2.54 2,379 1,653 563 31.6 14.6 13.1 91.1 20 Other 3.56 248 432 58.2 5.6 19.4 87.7 21 31 to 365 days 2.90 6,590 2,315 577 49.4 14.5 16.0 89.7 22 Minimal risk 2.96 28 392 136 33.2 7.3 5.8 100.0 23 Low risk 2.20 1,179 3,300 392 48.9 31.4 8.5 98.7 24 Moderate risk 2.72 3,126 4,016 657 50.8 11.6 17.0 83.7 25 Other 3.80 1,743 1,481 573 56.1 10.3 22.3 97.2 26 More than 365 days 1,577 27 Minimal risk 28 Low risk 3.03 136 1,417 38.2 33.5 35.0 98.7 28 Moderate risk . . 3.30 730 1,220 35.0 6.3 46.1 94.4 30 Other 4.37 306 438 50.7 6.5 51.4 82.9 Weighted- Weighted- average average risk maturity/ rating3 repricing interval Days SIZE OF LOAN (thousands of dollars) 31 1-99 4.34 1,316 3.7 5.6 79.4 91.8 32 100-999 3.98 5,418 3.5 5.5 74.9 93.5 33 1,000-9,999 3.32 10,082 3.2 45.9 13.7 40.9 89.2 34 10,000 or more 2.74 21.689 2.6 20.7 15.4 28.2 76.1 Average size (thousands of dollars) BASE RATE OF LOAN7 35 Prime8 . 4.44 15,341 3.2 49.2 2.7 279.0 91.9 36 Other . 2.25 23.165 2.7 27.3 20.2 1,530.0 76.3 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A63 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 4-8, 2003—Continued D. Commercial and industrial loans made by small domestic banks' Ma r i t i n u sk t r e i r t o y v f a / r l l e 2 o p a a r n n ic d s3 i ng W ( e l p a o f e e v a f i r e e n g c r c h e a t r t n i g a e v t e t d ) e e 4 - A o ( f m m l d o o i o l a u l l i n n l o a s t n r s o s ) f (th l A o d o u o a v n s l e l a r a n s a r i g d s z ) e s e of W m a e a v D i t e g u a r h r y a i t s g t e y e d 5 - S c e o c l u P la r e e t r e d c r e a b n l y t of am p S o re p u u p e b n a n j t e y a o c m l t f t y e t l n o o t a ns (percent) P c e o r m c u e m n C n d i t o t e m m m r e m a n d i t e t m ent status LOAN RISK 1 All commercial and industrial loans 5.14 6,052 94 1,080 6.5 67.8 75.7 2 Minimal risk 4.44 240 76 1,021 42.7 13.8 36.7 77.5 3 Low risk 5.06 841 114 1,022 63.5 5.5 50.5 79.2 4 Moderate risk 5.19 2,164 99 1,538 87.8 10.0 71.3 64.1 5 Other 4.90 1,368 921 89.4 5.3 67.9 86.6 By maturity/repricing interval 6 Zero interval 4.77 2,626 575 83.7 87.3 92.0 7 Minimal risk 3.97 101 268 36.2 39.8 99.2 8 Low risk 5.41 277 1,334 49.0 13.0 81.9 9 Moderate risk 4.55 1,012 527 83.5 2.2 90.9 90.0 10 Other 4.81 863 490 94.4 1.5 95.9 93.9 11 Daily 5.06 826 361 92.0 91.4 12 Minimal risk * 13 Low risk 5.22 17 769 84.9 .0 88.7 71.9 14 Moderate risk 4.66 130 1,262 64.4 .0 99.9 78.4 15 Other 5.17 32 1,295 80.9 .0 99.3 36.7 16 2 to 30 days 4.21 785 170 727 71.5 1.2 40.4 71.1 1 1 7 8 M Lo i w ni m ris a k l risk 3 2. . 1 5 9 3 18 15 0 2 24 4 4 8 2 2 0 41 0 7 24 7 . . 2 9 . . 0 0 7 1 7 8 . . 6 3 1 9 0 9 0 . . 2 0 19 Moderate risk 5.38 271 205 1,603 97.9 .6 87.8 18.7 20 Other 4.53 277 133 314 72.0 .0 7.1 99.6 2 2 1 2 31 M to i n 3 i 6 m 5 a d l a r y is s k 5 3. . 9 7 9 5 5 4 8 0 9 1, 2 1 5 5 1 8 4 7 3 8 . . 1 6 15. . 6 0 4 3 9 8 . . 9 4 7 3 0 6 . . 5 6 23 Low risk 6.30 119 336 77.4 .8 35.3 70.8 24 Moderate risk 5.61 245 2,113 88.5 36.5 64.3 79.3 25 Other 5.78 49 1,506 76.6 3.2 55.5 81.6 26 More than 365 days 6.27 1,223 104 94.0 16.6 30.9 35.8 2 2 8 7 L M o i w ni m ri a sk l risk 5 6 . . 4 1 4 4 24 7 8 7 1 9 2 4 8 54 1 4 0 7 0 . . 3 0 42 3 . . 0 7 3 1 7 8 . . 0 7 6 6 4 6 . . 0 0 28 Moderate risk . . 6.29 504 137 98 96.8 20.3 19.3 25.7 30 Other 5.82 146 104 133 99.0 40.2 15.2 31.2 Weighted- Weighted- average average risk maturity/ rating3 repricing interval- Days SIZE OF LOAN (thousands of dollars) 31 1-99 5.83 1,160 3.2 327 87.4 2.0 70.5 79.7 32 100-999 5.12 2,412 3.1 403 89.1 5.3 72.0 73.1 33 1,000-9,999 4.77 1,651 3.0 703 74.1 10.2 48.5 64.6 34 10,000 or more Average size of dollars) BASE RATE OF LOAN7 35 Prime8 5.08 4,104 3.1 161 88.5 4.7 96.0 80.8 36 Other 5.26 1,948 3.0 1,002 77.0 10.3 90.0 64.9 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Special Tables • November 2003 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 4-8, 2003—Continued E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks1 Ma r i t i n u s t k r e i r t o v y f a / r l l e 2 o p a a r n n ic s d 3 i ng W ( e l p a o f e e v a f i r e e n g c c r h e a t r n t i g a e v t t e d ) e e 4 - A o ( f m m l d o i o l o a u l l i n n l o a s t n r s s o ) f (th l o A d o u o a v s n l e l a r a n s a r i d g s z s ) e e of W m a e a v D i t e g u a r h r y a i t s g t e y e d 5 - S c e o c l u P la r e e t r e d c r e a b n l y t of am p S r o e u p u p b e n a n j t e y a c o m l t t f y e t l o n o t a ns (percent) P c e o r m c u e m n C n d t i o t e m m m r m e a n d i t e t m ent status LOAN RISK 1 All commercial and industrial loans 2.38 14,092 3,417 184 21.0 54.5 6.7 66.9 2 Minimal risk 1.83 560 3,717 351 21.1 13.3 .6 75.2 4 3 M Lo o w d e r r i a s t k e risk 2 2 . . 1 0 5 7 4 1 , , 3 6 9 2 6 0 4 3 , , 0 4 0 2 0 8 4 1 8 8 4 0 2 1 0 5 . . 0 3 4 5 6 1 . . 7 7 5 6 . . 2 1 9 91 2 . . 5 9 5 Other 2.67 5,707 3,091 122 26.9 53.2 6.5 56.2 By maturity/repricing interval 6 Zero interval 1,876 2,164 151 7 Minimal risk 8 Low risk 4.09 58 776 786 4.4 23.5 74.2 100.0 9 Moderate risk 2.29 780 2,958 85 4.2 85.4 15.0 100.0 10 Other 3.79 1,029 2,023 163 7.1 79.2 20.8 99.9 1 1 1 2 Da M ily i nimal risk 2 1 . . 0 6 3 3 6,4 2 8 2 8 8 5 3 , , 6 0 8 2 4 3 30 1 21. . 9 0 38. . 7 0 2. . 8 0 1 5 0 5 0 . . 0 0 13 Low risk 1.54 549 4.926 170 33.7 66.0 .0 99.9 14 Moderate risk 1.56 1,808 7,995 51 8.2 6.0 2.1 99.5 15 Other 2.29 2,844 5,609 3 37.3 34.5 2.7 33.8 16 2 to 30 days 2.33 2,738 2,576 21.1 69.2 66.8 17 Minimal risk 18 Low risk 1.87 411 2,643 370 7.4 66.2 .0 88.6 19 Moderate risk 2.36 746 2.364 136 33.2 81.6 9.7 82.1 20 Other 2.27 1,121 2.716 40 15.6 68.9 4.6 55.1 21 31 to 365 days 22 Minimal risk 23 Low risk 2.70 602 4,618 827 5.0 18.0 6.7 88.6 24 Moderate risk 2.53 1.021 3,535 466 44.1 82.8 3.9 81.2 25 Other 3.21 708 1,715 683 31.7 65.8 3.8 84.0 26 More than 365 days 27 Minimal risk 28 Low risk 28 Moderate risk . . 30 Other Weighted- Weighted- average average risk maturity/ rating3 repricing interval- Days SIZE OF LOAN (thousands of dollars) 31 1-99 4.30 25 3.6 40.9 25.6 65.1 91.8 32 100-999 3.59 549 3.6 22.5 45.3 37.1 88.0 33 1,000-9,999 2.49 6,582 3.3 13.9 61.4 9.3 67.2 34 10,000 or more 2.18 6,937 3.6 27.5 48.7 1.6 64.8 Average size (thousands of dollars) BASE RATE OF LOAN7 35 Prime8 941 3.6 38.3 21.0 96.0 36 Other 13,152 3.5 19.7 56.9 4,287 64.8 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A65 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 4-8, 2003—Continued F. Commercial and industrial loans by date pricing terms were set and commitment status Weightedaverage DDaa aa tt nn ee dd pp cc rrii oo cc mm iinn mm gg ii tt tt ee mm rrmm eenn ss tt ww sstt ee aa rr tt ee uu ss ss eett WW ll ee oo aa ff ee aa vv ff ii nn ee ee gg rr cc hh aa rr tt tt aa ii gg ee vv tt ee ee dd ee 44 -- AA oo (( ff mm mm ll dd oo oo iill oo aa uu ll ll ii nn nn ll oo ss aa tt nn rr oo ss ss )) ff (( AA tthh vv oo dd ee uu rr oo ss aa ss ll ii gg ll aa zz aa ee nn ee rr dd ss ll )) ss oo aa oo nn ff rr WW iiss aa kk ee vv ii ee gg rr rr aa hh aa tt tt gg ii ee nn ee dd gg -- 33 r m i e n p a te r tu i r c v r i i a n t l y g - Percent of amount of loans ((ppeerrcceenntt)) Secured by Subject to Prime Days prepayment collateral penalty based All commercial banks 1 During survey week 3.21 31,604 686 3.0 125 33.8 29.8 28.5 2 Not under commitment 2.88 12,867 611 3.3 203 33.0 29.3 16.0 3 Informal commitment 3.00 12,527 683 2.7 42 24.4 41.8 25.1 4 Formal commitment 4.32 6,210 927 3.2 130 54.8 6.8 61.3 Prior to survey week' 5 Up to 90 days 2.62 6,774 340 2.6 85 35.7 9.0 35.4 6 91 to 365 days 3.57 5,109 190 3.2 50 62.4 9.7 49.0 7 More than 365 days 3.09 14.586 356 3.4 70 35.4 18.1 41.5 Domestic banks 8 During survey week 3.66 22,173 508 2.8 165 38.9 21.0 38.8 9 Not under commitment 3.26 8,198 407 2.8 297 37.2 3.1 24.7 10 Informal commitment 3.55 8,250 486 2.6 56 31.5 52.6 34.7 11 Formal commitment 4.38 5,726 868 3.2 134 52.2 1.0 64.6 Prior to survey week9 12 Up to 90 days 2.63 6,333 321 2.6 88 34.8 3.4 36.8 13 91 to 365 days 3.65 4,345 164 3.3 52 62.5 4.9 54.4 14 More than 365 days 3.17 11,129 280 3.3 88 44.4 3.7 51.6 Lari>e domestic banks 15 During survey week 3.30 18,313 2,045 2.8 71 29.3 23.9 34.2 16 Not under commitment 2.67 6,728 1,181 2.7 83 25.3 .9 18.4 17 Informal commitment 3.28 6,840 3,799 2.5 18 23.8 62.4 32.6 18 Formal commitment 4.21 4,745 3,253 3.2 131 43.1 1.1 59.0 Prior to survey week9 19 Up to 90 days 2.27 5,477 545 2.6 63 27.6 2.7 29.8 20 91 to 365 days 3.47 3,769 260 3.3 56 58.7 5.0 49.4 21 More than 365 days 3.14 10,856 299 3.3 89 43.7 3.5 50.6 Small domestic banks 22 During survey week 5.37 3,860 111 3.0 612 84.5 7.1 60.2 23 Not under commitment 5.95 1,469 102 2.9 1,278 91.5 13.1 53.5 24 Informal commitment 4.88 1,410 93 3.1 240 68.7 5.5 45.2 25 Formal commitment 5.19 981 191 3.1 151 96.7 .4 91.9 Prior to survey week9 26 Up to 90 days 4.91 856 88 2.9 246 80.9 8.0 81.9 27 91 to 365 days 4.84 575 48 3.2 21 88.0 4.1 86.6 28 More than 365 days 4.36 273 78 3.3 44 74.0 10.0 90.2 Foreign banks 29 During survey week 2.16 9,430 3,939 3.5 30 21.8 50.6 4.4 30 Not under commitment 2.22 4,669 5,049 4.3 38 25.6 75.3 .8 31 Informal commitment 1.93 4,277 3,121 2.9 16 10.6 20.8 6.4 32 Formal commitment 3.54 484 4.891 3.2 76 84.8 75.2 21.7 Prior to survey week9 33 Up to 90 days 2.46 441 2.322 2.8 52 48.2 90.1 14.7 34 91 to 365 days 3.10 764 2.223 2.9 43 61.5 36.9 18.8 35 More than 365 days 2.83 3,457 2.889 3.7 14 6.2 64.5 9.1 NOTE. The Survey of Terms of Business Lending collects data on gross loan extensions well as special mention or classified loans. The weighted-average risk rating published for made during the first full business week in the mid-month of each quarter. The authorized loans in rows 31-36 are calculated by assigning a value of "1" to minimal risk loans; "2" to panel size for the survey is 348 domestically chartered commercial banks and 50 U.S. low risk loans; "3" to moderate risk loans, "4" to acceptable risk loans; and "5" to special branches and agencies of foreign banks. The sample data are used to estimate the terms of mention and classified loans. These values are weighted by loan amount and exclude loans loans extended during that week at all domestic commercial banks and all U.S. branches and with no risk rating. Some of the loans in table rows 1,6, 11, 16, 21, 26, and 31-36 are not agencies of foreign banks. Note that the terms on loans extended during the survey week may rated for risk. differ from those extended during other weeks of the quarter. The estimates reported here are 4. Effective (compounded) annual interest rates are calculated from the stated rate and not intended to measure the average terms on all business loans in bank portfolios. other terms of the loans and weighted by loan amount. The standard error of the loan rate for 1. As of March 31, 2001, assets of the large banks were at least $4 billion. Median total all commercial and industrial loans in the current survey (line 1, column 1) is 0.10 percentage assets for all insured banks were roughly $80 million. Assets at all U.S. branches and agencies point. The chances are about two out of three that the average rate shown would differ by less averaged $2.7 billion. than this amount from the average rate that would be found by a complete survey of the 2. The •'maturity/repricing" interval measures the period from the date the loan is made universe of all banks. until it first may be repriced or matures. For floating-rate loans that are subject to repricing at 5. Average maturities are weighted by loan amount and exclude loans with no stated any time—such as many prime-based loans—the maturity/repricing interval is zero. For maturities. floating-rate loans that have a scheduled repricing interval, the maturity/repricing interval 6. For loans made under formal commitments, the average time interval between the date measures the number of days between the date the loan is made and the date on which it is on which the loan pricing was set and the date on which the loan was made, weighted by the next scheduled to reprice. For loans having rates that remain fixed until the loan matures loan amount. For loans under informal commitment, the time interval is zero. (fixed-rate loans), the "maturity/repricing" interval measures the number of days between the 7. Prime-based loans are based on the lending bank's own prime rate, any other lender's date the loan is made and the date on which it matures. Loans that reprice daily mature or prime rate, a combination of prime rates, or a publicly reported prime rate. Loans with reprice on the business day after they are made. Owing to weekends and holidays, such loans "other" base rates include loan rates expressed in terms of any other base rate (e.g.. the may have "maturity/repricing" intervals in excess of one day; such loans are not included in federal funds rate or LIBOR) and loans for which no base rate is used to determine the loan the 2 to 30 day category. rate. 3. A complete description of these risk categories is available at "http:// 8. See the summary statistics table for the average reported prime rate weighted by dollar www. federal reserve.gov/boarddocs/reportforms/ReportDetail.cfm?WhichFormId=FR_2028a/ value of loans priced relative to a prime rate. s." The category "Moderate risk" includes the average loan, under average economic 9. For loans made under formal commitments. conditions, at the typical lender. The "Other" category includes loans rated "Acceptable" as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • November 2003 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 20031 Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 1 n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s 1 Total assets4 1,069,594 129,275 949,972 104,439 15,504 4,864 32,791 3,995 2 Claims on nonrelated parties 806,562 56,003 725,307 53,933 14,958 965 31,127 33 Cash and balances due from depository institutions 70,328 22,416 64,244 21,730 1,144 539 649 10 4 Cash items in process of collection and unposted debits 2,379 0 2,327 0 4 0 33 0 Currency and coin (U.S. and foreign) 11 n.a. 8 n.a. 1 n.a. 0 n.a. 6 Balances with depository institutions in United States 44,998 9,682 39,684 9,328 830 250 581 10 7 U.S. branches and agencies of other foreign banks (including their IBFs) 39,155 9,233 34,707 8,943 655 200 515 10 S Other depository institutions in United States (including their IBFs) 5,842 448 4,977 385 175 50 66 0 9 Balances with banks in foreign countries and with foreign central banks 21,933 12,734 21,355 12,402 292 289 23 0 10 Foreign branches of U.S. banks 367 176 346 156 21 20 0 0 II Banks in home country and home-country central banks 4,061 2,180 3,848 2,155 25 25 2 0 12 All other banks in foreign countries and foreign central banks 17,504 10,378 17,160 10,091 246 244 21 0 13 Balances with Federal Reserve Banks 1,007 n.a. 870 n.a. 17 n.a. 11 n.a. 14 Total securities and loans 409,111 24,987 355,152 23,717 13,532 407 23,192 23 15 Total securities, book value 133,245 5,086 125,626 4,789 1,545 251 4,121 1 16 U.S. Treasury 18,113 n.a. 16,534 n.a. 60 n.a. 1,484 n.a. 17 Obligations of U.S. government agencies and corporations 27,911 n.a. 27,216 n.a. 153 n.a. 427 n.a. 18 Other bonds, notes, debentures, and corporate stock (including state and local securities) 87,222 5,086 81,876 4,789 1,333 251 2,211 1 19 Securities of foreign governmental units 10,155 3,556 9,724 3,509 59 37 347 1 20 Mortgage-backed securities 29,326 0 27,999 0 280 0 594 0 21 Issued or guaranteed by U.S. government agencies 26,715 0 25,840 0 280 0 594 0 22 Other 2,611 0 2,159 0 0 0 0 0 23 Other asset-backed securities 10,045 59 9,009 59 0 0 0 0 24 All other 37,696 1,472 35,144 1,222 993 214 1,270 0 25 Federal funds sold 27,237 7,728 24,794 7,621 107 16 1,477 0 26 With depository institutions in the U.S 18,645 2,623 16,269 2,582 107 16 1,477 0 27 With others 8,591 5,105 8,525 5,038 0 0 0 0 28 Securities purchased under agreements to resell 109,207 0 109,034 0 0 0 173 0 29 With depository institutions in the U.S 18,774 0 18,774 0 0 0 0 0 30 With others 90,433 0 90,260 0 0 0 173 0 31 Total loans, gross 276,269 19,912 229,863 18,938 12,008 157 19,077 21 32 LESS: Unearned income on loans 403 11 336 9 21 1 6 0 33 EQUALS: Loans, net 275,866 19,901 229,526 18,928 11,987 156 19,071 21 Total loans, gross, by category 34 Real estate loans 19,318 51 15,188 51 3,230 0 50 0 35 Loans to depository institutions and acceptances of other banks 74,346 7,800 64,319 7,259 1,690 63 5,968 21 36 Commercial banks in United States (including their IBFs) 3,167 1,244 2,492 1,155 323 0 30 0 37 U.S. branches and agencies of other foreign banks 2,328 949 1,744 860 318 0 25 0 38 Other commercial banks in United States 840 295 747 295 5 0 5 0 39 Other depository institutions in United States (including their IBFs) .. . 0 0 0 0 0 0 0 0 40 Banks in foreign countries 10,383 6,311 8,769 5,864 155 63 850 21 41 Foreign branches of U.S. banks 13 13 13 13 0 0 0 0 42 Other banks in foreign countries 10,370 6,298 8,756 5,852 155 63 850 21 43 Loans to other financial institutions 60,796 245 53,059 240 1,212 0 5,089 0 44 Commercial and industrial loans 163,279 10,555 133,260 10,155 6,935 81 11,906 0 45 U.S. addressees (domicile) 130,024 191 104,462 191 6,496 0 10,731 0 46 Non-U.S. addressees (domicile) 33,255 10,364 28.798 9,964 439 81 1,175 0 47 Loans to foreign governments and official institutions (including foreign central banks) 3,798 1,422 3,111 1,402 13 13 275 0 48 Loans for purchasing or carrying securities (secured and unsecured) .... 9,587 5 8,986 0 0 0 417 0 49 All other loans 5,214 79 4,646 72 139 0 87 0 50 Lease financing receivables (net of unearned income) 727 0 353 0 0 0 373 0 51 U.S. addressees (domicile) 686 0 353 0 0 0 333 0 52 Non-U.S. addressees (domicile) 40 0 0 0 0 0 40 0 53 Trading assets 145,290 170 129,103 170 24 0 4,535 0 54 U.S. Treasury and agency securities 33,525 0 33,496 0 2 0 0 0 55 Other trading assets 111,765 170 95,607 170 22 0 4,535 0 56 All other assets 45,390 701 42,981 694 152 3 1,100 0 57 Customers' liabilities on acceptances outstanding 408 n.a. 323 n.a. 42 n.a. 23 n.a. 58 U.S. addressees (domicile) 278 n.a. 215 n.a. 41 n.a. 20 n.a. 59 Non-U.S. addressees (domicile) 130 n.a. 108 n.a. 0 n.a. 2 n.a. 60 Other assets including other claims on nonrelated parties 44,982 701 42,658 694 110 3 1,077 0 61 Net due from related depository institutions5 263.032 73,273 224,664 50,507 546 3,899 1,665 3,962 62 Net due from head office and other related depository institutions5 .... 263,032 n.a. 224,664 n.a. 546 n.a. 1,665 n.a. 63 Net due from establishing entity, head office, and other related depository institutions5 n.a. 73,273 n.a. 50,507 n.a. 3,899 n.a. 3,962 64 Total liabilities4 1,069,594 129,275 949,972 104,439 15,504 4,864 32,791 3,995 65 Liabilities to nonrelated parties 957.177 110,823 858,832 86,342 8,603 4,733 28,075 3,972 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A67 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 2003 '—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l ' n g o IB nl F y s 3 exc T IB l o u t F d a s i l n g I o B n F ly s exc T I l B o u t F d a s i l n g I o B n F ly s exc T I l B o u t F d a s i l n g I o B n F ly s 66 Total deposits and credit balances 422,849 76,227 380,167 60,068 2,665 2,509 9,270 2,272 67 Individuals, partnerships, and corporations (including certified and official checks) 330,893 7,514 291,519 3,840 2,167 110088 99..118877 9 68 U.S. addressees (domicile) 315,065 167 281,486 167 1,178 0 9,054 0 69 Non U.S. addressees (domicile) 15,827 7,347 10,033 3.673 989 108 133 9 70 Commercial banks in United States (including their IBFs) 59,065 8,428 56,859 7,605 447 134 0 340 71 U.S. branches and agencies of other foreign banks 17.931 7,220 17,523 6,499 37 134 0 340 7? Other commercial banks in United States 41.134 1,207 39,336 1,107 410 0 0 0 73 Banks in foreign countries 6,896 30,362 6,700 23,337 32 1,518 35 905 74 Foreign branches of U.S. banks 1,304 2,620 1.304 2,256 0 154 0 9 75 Other banks in foreign countries 5,592 27,742 5.397 21,082 32 1,364 35 896 76 Foreign governments and official institutions (including foreign central banks) 5,974 29,921 5,891 2255,,228844 1111 775500 11 11,,001188 77 All other deposits and credit balances 20,022 3 19,198 0 8 0 4477 0 78 Transaction accounts and credit balances (excluding IBFs) 11,786 n.a. 9,879 n.a. 157 n.a. 207 n.a. 79 Individuals, partnerships, and corporations (including certified and official checks) 9,353 n.a. 7,605 n.a. 111133 n.a. 220066 n.a. 80 U.S. addressees (domicile) 6,399 n.a. 6,001 n.a. 78 n.a. 199 n.a. 81 Non U.S. addressees (domicile) 2,954 n.a. 1,604 n.a. 36 n.a. 7 n.a. 82 Commercial banks in United States (including their IBFs) 659 n.a. 658 n.a. 0 n.a. 0 n.a. 83 U.S. branches and agencies of other foreign banks 413 n.a. 413 n.a. 0 n.a. 0 n.a. 84 Other commercial banks in United States 245 n.a. 245 n.a. 0 n.a. 0 n.a. 85 Banks in foreign countries 1.123 n.a. 1,020 n.a. 32 n.a. 0 n.a. 86 Foreign branches of U.S. banks 0 n.a. 0 n.a. 0 n.a. 0 n.a. 87 Other banks in foreign countries 1,123 n.a. 1,020 n.a. 32 n.a. 0 n.a. 88 Foreign governments and official institutions (including foreign central banks) 228822 n.a. 223377 n.a. 7 n.a. 1 n.a. 89 All other deposits and credit balances 369 n.a. 359 n.a. 5 n.a. 0 n.a. 90 Nontransaction accounts (including MMDAs, excluding IBFs) 411,063 n.a. 370,288 n.a. 2.508 n.a. 9,063 n.a. 91 Individuals, partnerships, and corporations (including certified and official checks) 321,540 n.a. 283,914 n.a. 22,,005533 n.a. 88,,998811 n.a. 92 U.S. addressees (domicile) 308,667 n.a. 275,485 n.a. 1.100 n.a. 8,855 n.a. 93 Non-U.S. addressees (domicile) 12,873 n.a. 8,428 n.a. 953 n.a. 126 n.a. 94 Commercial banks in United States (including their IBFs) 58,406 n.a. 56,200 n.a. 447 n.a. 0 n.a. 95 U.S. branches and agencies of other foreign banks 17,518 n.a. 17,110 n.a. 37 n.a. 0 n.a. 96 Other commercial banks in United States 40,889 n.a. 39,091 n.a. 410 n.a. 0 n.a. 97 Banks in foreign countries 5,773 n.a. 5,680 n.a. 0 n.a. 35 n.a. 98 Foreign branches of U.S. banks 1,304 n.a. 1,304 n.a. 0 n.a. 0 n.a. 99 Other banks in foreign countries 4,469 n.a. 4,377 n.a. 0 n.a. 35 n.a. 100 Foreign governments and official institutions (including foreign central banks) 5,691 n.a, 5,654 n.a. 4 n.a. 00 n.a. 101 All other deposits and credit balances 19,653 n.a. 18,839 n.a. 3 n.a. 47 n.a. 102 IBF deposit liabilities n.a. 76,227 n.a. 60,068 n.a. 2,509 n.a. 2,272 103 Individuals, partnerships, and corporations (including certified and official checks) n.a. 7,514 n.a. 33,,884400 n.a. 110088 n.a. 9 104 U.S. addressees (domicile) n.a. 167 n.a. 167 n.a. 0 n.a. 0 105 Non-U.S. addressees (domicile) n.a. 7,347 n.a. 3,673 n.a. 108 n.a. 9 106 Commercial banks in United States (including their IBFs) n.a. 8,428 n.a. 7,605 n.a. 134 n.a. 340 107 U.S. branches and agencies of other foreign banks n.a. 7,220 n.a. 6,499 n.a. 134 n.a. 340 108 Other commercial banks in United States n.a. 1,207 n.a. 1,107 n.a. 0 n.a. 0 109 Banks in foreign countries n.a. 30,362 n.a. 23,337 n.a. 1,518 n.a. 905 110 Foreign branches of U.S. banks n.a. 2,620 n.a. 2,256 n.a. 154 n.a. 9 111 Other banks in foreign countries n.a. 27,742 n.a. 21,082 n.a. 1,364 n.a. 896 112 Foreign governments and official institutions (including foreign central banks) n.a. 29.921 n.a. 25,284 n.a. 750 n.a. 11,,001188 113 All other deposits and credit balances n.a. 3 n.a. 0 n.a. 0 n.a. 0 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • November 2003 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 2003'—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm inc I T B l o u F t d a s i l n ' g o IB nl F y s 1 inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 114 Federal funds purchased 63.228 17.841 42.913 11,511 1,235 560 5.950 1,440 115 With depository institutions in the U.S 28,657 4,323 17,075 1,815 1,006 453 2,631 305 116 With others 34,570 13,518 25,838 9,696 229 106 3,320 1,135 117 Securities sold under agreements to repurchase 189.699 2,325 188,786 2,325 238 0 582 0 1 K With depository institutions in the U.S 11.374 0 11,364 0 10 0 0 0 1 19 With others 178,324 2,325 177,421 2,325 228 0 582 0 120 Other borrowed money 66,595 13,786 57,868 11.821 1,789 1,656 4,664 259 171 Owed to nonrelated commercial banks in United States (including their IBFs) 9,847 2.209 9,267 1,965 298 196 216 38 122 Owed to U.S. offices of nonrelated U.S. banks 5.054 448 4,912 440 38 8 93 0 123 Owed to U.S. branches and agencies of nonrelated foreign banks 4,793 1,761 4,355 1,525 261 188 123 38 124 Owed to nonrelated banks in foreign countries 10,620 9,307 9,404 8,240 836 806 236 221 125 Owed to foreign branches of nonrelated U.S. banks 1,267 1,010 1.140 982 59 29 0 0 126 Owed to foreign offices of nonrelated foreign banks 9,353 8,297 8,264 7,258 777 777 236 221 127 Owed to others 46,128 2,270 39,197 1,616 655 653 4,213 0 128 All other liabilities 138.579 644 129.031 618 167 8 5,336 2 129 Branch or agency liability on acceptances executed and outstanding 445 n.a. 357 n.a. 42 n.a. 2222 n.a. 130 Trading liabilities 98.501 46 91,554 45 9 0 3,890 1 131 Other liabilities to nonrelated parties 39.632 598 37,121 572 115 8 1,424 2 132 Net due to related depository institutions5 112.417 18,452 91,139 18,097 6,901 131 4.717 22 133 Net due to head office and other related depository institutions5 112.417 n.a. 91,139 n.a. 6,901 n.a. 4,717 n.a. 134 Net due to establishing entity, head office, and other related depository institutions5 n.a. 18,452 n.a. 18,097 n.a. 131 n.a. 2222 MEMO 135 Holdings of own acceptances included in commercial and industrial loans 513 n.a. 348 n.a. 2 n.a. 9999 n.a. 136 Commercial and industrial loans with remaining maturity of one year or less (excluding those in nonaccrual status) 69.198 n.a. 52.158 n.a. 3.821 n.a. 66,,888833 n.a. 137 Predetermined interest rates 28,772 0 18,590 0 1,752 0 5,331 0 138 Floating interest rates 40,426 n.a. 33,568 n.a. 2,068 n.a. 1,552 n.a. 139 Commercial and industrial loans with remaining maturity of more than one year (excluding those in nonaccrual status) 85,937 n.a. 74,098 n.a. 3,020 n.a. 4,509 n.a. 140 Predetermined interest rates 14,712 n.a. 13,124 n.a. 338 n.a. 419 n.a. 141 Floating interest rates 71.225 n.a. 60,974 n.a. 2,682 n.a. 4,090 n.a. Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A69 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 2003'—Continued Millions of dollars except as noted All states- New York California Illinois IItteemm ex I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u t F d a s i l n g I o B n F ly s 111144442222 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss 443,841 n.a. 400,439 n.a. 2,374 n.a. 10,254 n.a. 111144443333 TTTTiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss ooooffff $$$$ 111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 404,433 n.a. 364,785 n.a. 2,374 n.a. 9,019 n.a. 111144444444 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$ 111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss 39,408 n.a. 35,654 n.a. 0 n.a. 1,235 n.a. All states2 New York California Illinois Total Total Total Total including IBFs including IBFs including IBFs including IBFs IBFs3 only3 IBFs only IBFs only IBFs only 111144445555 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 28,955 n.a. 27,068 n.a. 1.188 n.a. 514 n.a. 111144446666 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 282 0 150 0 55 0 17 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of either because the item is not an eligible IBF asset or liability or because that level of detail is Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The form was first not reported for IBFs. From December 1981 through September 1985, IBF data were used for reporting data as of June 30, 1980, and was revised as of December 31, 1985. From included in all applicable items reported. November 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a 4. Total assets and total liabilities include net balances, if any, due from or owed to related monthly FR 886a report. Aggregate data from that report were available through the Federal banking institutions in the United States and in foreign countries (see note 5). On the former Reserve monthly statistical release G. 11, last issued on July 10, 1980. Data in this table and in monthly branch and agency report, available through the G. 11 monthly statistical release, the G. 11 tables are not strictly comparable because of differences in reporting panels and in gross balances were included in total assets and total liabilities. Therefore, total asset and total definitions of balance sheet items. liability figures in this table are not comparable to those in the G.l 1 tables. 2. Includes the District of Columbia. 5. Related depository institutions includes the foreign head office and other U.S. and 3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to foreign branches and agencies of a bank, a bank's parent holding company, and majoritypermit banking offices located in the United States to operate international banking facilities owned banking subsidiaries of the bank and of its parent holding company (including (IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column. subsidiaries owned both directly and indirectly). These data are either included in or excluded from the total columns as indicated in the 6. In some cases, two or more offices of a foreign bank within the same metropolitan area headings. The notation "n.a." indicates that no IBF data have been reported for that item, file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

99 Federal Reserve Bulletin • November 2003 Index to Statistical Tables References are to pages A3-A69, 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, 58-59 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 banks, U.S. branches and agencies, 66-9 Federal Reserve credit, 5, 6, 10, 12 Foreign-related institutions, 20 Federal Reserve notes, 10 Automobiles Federally sponsored credit agencies, 28 Consumer credit, 34 Finance companies Production, 42, 43 Assets and liabilities, 30 Business credit, 31 BANKERS acceptances, 5, 10 Loans, 34 Bankers balances, 15-21, 66-9 (See also Foreigners) Paper, 22, 23 Bonds (See also U.S. government securities) Float, 5 New issues, 29 Flow of funds, 35-9 Rates, 23 Foreign banks, U.S. branches and agencies, 66-9 Business loans (See Commercial and industrial loans) Foreign currency operations, 10 Foreign deposits in U.S. banks, 5 CAPACITY utilization, 40, 41 Foreign exchange rates, 56 Capital accounts Foreign-related institutions, 20 Commercial banks, 15-21, 58-59 Foreigners Federal Reserve Banks, 10 Claims on, 45, 48-49, 52-53 Certificates of deposit, 23 Liabilities to, 45-7, 50-51, 54, 55 Commercial and industrial loans Commercial banks, 15-21, 58-59, 66-9 GOLD Weekly reporting banks, 17, 18 Certificate account, 10 Commercial banks Stock, 5, 45 Assets and liabilities, 15-21, 58-59 Government National Mortgage Association, 28, 32, 33 Commercial and industrial loans, 15-21, 58-59, 60-5 Consumer loans held, by type and terms, 34, 60-5 INDUSTRIAL production, 42, 43 Real estate mortgages held, by holder and property, 33 Insurance companies, 25, 33 Terms of lending, 60-5 Interest rates Time and savings deposits, 4 Bonds, 23 Commercial paper, 22, 23, 30 Commercial banks, 60-5 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, 60-5 Currency in circulation, 5, 13 International capital transactions of United States, 44-55 Customer credit, stock market, 24 International organizations, 45, 46, 48, 50-3 Investment companies, issues and assets, 30 DEBT (See specific types of debt or securities) Investments (See also specific types) Demand deposits, 15-21 Commercial banks, 4, 15-21, 60-5 Depository institutions Federal Reserve Banks, 10, 11 Reserve requirements, 8 Financial institutions, 33 Reserves and related items, 4-6, 12 Deposits (See also specific types) Commercial banks, 4, 15-21, 58-59 LIFE insurance companies (See Insurance companies) Federal Reserve Banks, 5, 10 Loans (See also specific types) Discount rates at Reserve Banks and at foreign central banks and Commercial banks, 15-21, 58-59, 60-5 foreign countries (See Interest rates) Federal Reserve Banks, 5-7, 10, 11 Discounts and advances by Reserve Banks (See Loans) Financial institutions, 33 Foreign banks, U.S. branches and agencies, 66-9 EURO, 56 Insured or guaranteed by United States, 32, 33 FARM mortgage loans, 33 MANUFACTURING Federal agency obligations, 5, 9-11, 26, 27 Capacity utilization, 40, 41 Federal credit agencies, 28 Production, 42, 43 Federal finance Margin requirements, 24 Debt subject to statutory limitation, and types and ownership of Member banks, reserve requirements, 8 gross debt, 25 Mining production, 43 Federal Financing Bank, 28 Monetary and credit aggregates, 4, 12 Federal funds, 23 Money and capital market rates, 23 Federal Home Loan Banks, 28 Money stock measures and components, 4, 13 Federal Home Loan Mortgage Corporation, 28, 32, 33 Mortgages (See Real estate loans) Federal Housing Administration, 28, 32, 33 Mutual funds, 13, 30 Federal Land Banks, 33 Mutual savings banks (See Thrift institutions) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 OPEN market transactions, 9 Stock market, selected statistics, 24 Stocks (See also Securities) PRICES New issues, 29 Stock market, 24 Prices, 24 Prime rate, 22, 60-5 Student Loan Marketing Association, 28 Production, 42, 43 THRIFT institutions, 4 (See also Credit unions and Savings REAL estate loans institutions) Banks, 15-21, 33 Time and savings deposits, 4, 13, 15-21, 58-59 Terms, yields, and activity, 32 Treasury cash, Treasury currency, 5 Type and holder and property mortgaged, 33 Treasury deposits, 5, 10 Reserve requirements, 8 Reserves U.S. GOVERNMENT balances Commercial banks, 15-21 Commercial bank holdings, 15-21 Depository institutions, 4-6 Treasury deposits at Reserve Banks, 5, 10 Federal Reserve Banks, 10 U.S. government securities U.S. reserve assets, 45 Bank holdings, 15-21, 25 Residential mortgage loans, 32, 33 Dealer transactions, positions, and financing, 27 Retail credit and retail sales, 34 Federal Reserve Bank holdings, 5, 10, 11, 25 Foreign and international holdings and transactions, 10, 25, 55 SAVING Open market transactions, 9 Flow of funds, 33, 34, 35-9 Outstanding, by type and holder, 25, 26 Saving deposits (See Time and savings deposits) Rates, 23 Savings institutions, 33, 34, 35-9 U.S. international transactions, 44-55 Securities (See also specific types) Utilities, production, 43 Federal and federally sponsored credit agencies, 28 Foreign transactions, 54 VETERANS Affairs, Department of, 32, 33 New issues, 29 Prices, 24 WEEKLY reporting banks, 17, 18 Special drawing rights, 5, 10, 44 State and local governments YIELDS (See Interest rates) Holdings of U.S. government securities, 25 New security issues, 29 Rates on securities, 23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

101 Federal Reserve Bulletin • November 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 M. HOFFMAN, JR., 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 DEBORAH P. BAILEY, Associate Director ALICE PATRICIA WHITE, Assistant Director NORAH M. BARGER, Associate Director GLENN B. CANNER, Senior Adviser BETSY CROSS, Associate Director DAVID S. JONES, Senior Adviser GERALD A. EDWARDS, JR., Associate Director THOMAS D. SIMPSON, Senior Adviser JAMES V. HOUPT, Associate Director JACK P. JENNINGS, Associate Director DIVISION OF MONETARY AFFAIRS MOLLY S. WASSOM, Associate Director VINCENT R. REINHART, Director DAVID M. WRIGHT, Associate Director HOWARD A. AMER, Deputy Associate Director BRIAN F. MADIGAN, Deputy Director BARBARA J. BOUCHARD, Deputy Associate Director JAMES A. CLOUSE, Deputy Associate Director ANGELA DESMOND, Deputy Associate Director WILLIAM C. WHITESELL, Deputy Associate Director JAMES A. EMBERSIT, Deputy Associate Director CHERYL L. EDWARDS, Assistant Director CHARLES H. HOLM, Deputy Associate Director WILLIAM B. ENGLISH, Assistant Director WILLIAM G. SPANIEL, Deputy Associate Director RICHARD D. PORTER, Senior Adviser JON D. GREENLEE, Assistant Director ATHANASIOS ORPHANIDES, Adviser WALT H. MILES, Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM F. TREACY, Assistant Director WILLIAM C. SCHNEIDER, JR., Project Director, National Information Center MICHAEL G. MARTINSON, Senior Adviser STEPHEN C. SCHEMERING, Senior Adviser Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 OFFICE OF THE INSPECTOR GENERAL LYNN S. FOX, Senior Adviser BARRY R. SNYDER, Inspector General MANAGEMENT DIVISION DONALD L. ROBINSON, Deputy Inspector General H. FAY PETERS, Acting Director STEPHEN J. CLARK, Associate Director DARRELL R. PAULEY, Associate Director CHRISTINE M. FIELDS, Assistant Director BILLY J. SAULS, Assistant Director DONALD A. SPICER, Assistant Director DIVISION OF INFORMATION TECHNOLOGY MARIANNE M. EMERSON, Director MAUREEN T. HANNAN, Deputy Director TILLENA G. CLARK, Assistant Director GEARY L. CUNNINGHAM, Assistant Director WAYNE A. EDMONDSON, Assistant Director Po KYUNG KIM, Assistant Director SUSAN F. MARYCZ, Assistant Director SHARON L. MOWRY, Assistant Director RAYMOND ROMERO, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

103 Federal Reserve Bulletin • November 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 ROBERT A. EISENBEIS, Associate Economist NORMAND R.V. BERNARD, Deputy 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 CHRISTINE M. CUMMING, 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

A75 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 CONSTANCE K. CHAMBERLIN, Richmond, Virginia PATRICIA MCCOY, Hartford, Connecticut ROBIN COFFEY, Chicago, Illinois MARK PINSKY, Philadelphia, Pennsylvania DAN DIXON, Washington, District of Columbia ELIZABETH RENUART, Boston, Massachusetts THOMAS FITZGIBBON, Chicago, Illinois DEBRA S. REYES, Tampa, Florida JAMES GARNER, Baltimore, Maryland BENSON ROBERTS, Washington, District of Columbia CHARLES GATSON, Kansas City, Missouri BENJAMIN ROBINSON III, Charlotte, North Carolina LARRY HAWKINS, Houston, Texas DIANE THOMPSON, East St. Louis, Illinois W. JAMES KING, Cincinnati, Ohio HUBERT VAN TOL, Sparta, Wisconsin EARL JAROLIMEK, Fargo, North Dakota CLINT WALKER, Wilmington, Delaware THRIFT INSTITUTIONS ADVISORY COUNCIL KAREN L. MCCORMICK, Port Angeles, Washington, President WILLIAM J. SMALL, Defiance, Ohio, Vice President MICHAEL J. BROWN, SR., Ft. Pierce, Florida KIRK KORDELESKI, Bethpage, New York JOHN B. DICUS, Topeka, Kansas D. TAD LOWREY, Brea, California RICHARD J. DRISCOLL, Arlington, Texas GEORGE W. NISE, Philadelphia, Pennsylvania CURTIS L. HAGE, Sioux Falls, South Dakota KEVIN E. PIETRINI, Virginia, Minnesota OLAN O. JONES, JR., Kingsport, Tennessee ROBERT F. STOICO, Swansea, Massachusetts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

105 Federal Reserve Bulletin • November 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. / (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. Putting Your Home on the Loan Line Is Risky Business 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

A77 STAFF STUDIES: Only Summaries Printed in the 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- BULLETIN ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING Studies and papers on economic and financial subjects that are of PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, by Stephen A. Rhoades. July 1994. 37 pp. general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- 169 are out of print, but photocopies of them are available. Staff LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH Studies 165-174 are available on line at www.federalreserve.gov/ IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. pubs/staffstudies. Requests to obtain single copies of any paper or Lowrey. December 1997. 17 pp. to be added to the mailing list for the series may be sent to 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- Publications. DENCE, by Gregory Elliehausen. April 1998. 35 pp. 172. USING SUBORDINATED DEBT AS AN INSTRUMENT OF MAR- 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- KET DISCIPLINE, by Study Group on Subordinated Notes ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and and Debentures, Federal Reserve System. December 1999. Donald Savage. February 1990. 12 pp. 69 pp. 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- 173. IMPROVING PUBLIC DISCLOSURE IN BANKING, by Study VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Group on Disclosure, Federal Reserve System. March 2000. Gregory E. Elliehausen and John D. Wolken. September 35 pp. 1990. 35 pp. 174. BANK MERGERS AND BANKING STRUCTURE IN THE UNITED 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- STATES, 1980-98, by Stephen Rhoades. August 2000. 33 pp. GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. 175. THE FUTURE OF RETAIL ELECTRONIC PAYMENTS SYSTEMS: Rhoades. February 1992. 11 pp. INDUSTRY INTERVIEWS AND ANALYSIS, Federal Reserve 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by Staff, for the Payments System Development Committee, James T. Fergus and John L. Goodman, Jr. July 1993. Federal Reserve System. December 2002. 27 pp. 20 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

107 Federal Reserve Bulletin • November 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

A79 1—A 2-B 3-C 4-D 5-E Pittsburgh Baltimore MD Y' PA ^ ^ ! VT \ ( 7 • on wv NC NH Cincinnati ' Charlotte Buffalo , ®f / MA ^ NY NJ SI- " ^RI BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G S-H KY Ml , / W1 IL J I.V Louisville Detroit* - TN Jaeksom iile •Memphis 1L Now Orleans y FL Rock ( MS ATLANTA CHICAGO ST. LOUIS 9-1 • Helena MI MINNEAPOLIS 10-J 12-L WY CO . Omaha* ^ MO KS p Seattle NM ^ Oklahoma Cit> OK KANSAS CITY 11-K TX NM Salt Lake City • " LA 1 1 Paso R^—R1 Y Houston *Los Angeles San Antonio HAWAII DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

109 Federal Reserve Bulletin • November 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 Timothy F. Geithner 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 Jeffrey S. Kane1 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. Gilmer 3 Houston 77252 Lupe Fraga Robert Smith III' San Antonio 78295 Ron R. Harris James L. Stull1 SAN FRANCISCO 94120 George M. Scalise Robert T. Parry Sheila D. Harris John F. Moore Los Angeles 90051 William D. Jones Mark L. Mullinix2 Portland 97208 Karla S. Chambers Richard B. Hornsby Salt Lake City 84125 H. Roger Boyer Andrea P. Wolcott Seattle 98124 Mic R. Dinsmore Mark Gould * Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee, Wisconsin 53202; and Peoria, Illinois 61607. 1. Senior Vice President. 2. Executive Vice President 3. Acting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory func- The Payment System Handbook deals with expedited tions, the Board publishes the Federal Reserve Regu- funds availability, check collection, wire transfers, and latory Service, a four-volume loose-leaf service con- risk-reduction policy. It includes Regulations CC, J, and taining all Board regulations as well as related statutes, EE, related statutes and commentaries, and policy interpretations, policy statements, rulings, and staff statements on risk reduction in the payment system. opinions. For those with a more specialized interest in For domestic subscribers, the annual rate is $200 for the Board's regulations, parts of this service are pub- the Federal Reserve Regulatory Service and $75 for lished separately as handbooks pertaining to monetary each handbook. For subscribers outside the United policy, securities credit, consumer affairs, and the pay- States, the price including additional air mail costs is ment system. $250 for the service and $90 for each handbook. These publications are designed to help those who The Federal Reserve Regulatory Service is also availmust frequently refer to the Board's regulatory materi- able on CD-ROM for use on personal computers. For a als. They are updated monthly, and each contains cita- standalone PC, the annual subscription fee is $300. For tion indexes and a subject index. network subscriptions, the annual fee is $300 for 1 con- The Monetary Policy and Reserve Requirements current user, $750 for a maximum of 10 concurrent Handbook contains Regulations A, D, and Q, plus users, $2,000 for a maximum of 50 concurrent users, related materials. and $3,000 for a maximum of 100 concurrent users. The Securities Credit Transactions Handbook con- Subscribers outside the United States should add $50 tains Regulations T, U, and X, dealing with exten- to cover additional airmail costs. For further informasions of credit for the purchase of securities, together tion, call (202) 452-3244. with related statutes, Board interpretations, rulings, All subscription requests must be accompanied by a and staff opinions. Also included is the Board's list of check or money order payable to the Board of Goverforeign margin stocks. nors of the Federal Reserve System. Orders should be The Consumer and Community Affairs Handbook addressed to Publications, mail stop 127, Board of Govcontains Regulations B, C, E, G, M, P, Z, AA, BB, and ernors of the Federal Reserve System, Washington, DC DD, and associated materials. 20551. GUIDE TO THE FLOW OF FUNDS ACCOUNTS A new edition of Guide to the Flow of Funds Accounts and describes how the series is derived from source is now available from the Board of Governors. The new data. The Guide also explains the relationship between edition incorporates changes to the accounts since the the flow of funds accounts and the national income and initial edition was published in 1993. Like the earlier product accounts and discusses the analytical uses of publication, it explains the principles underlying the flow of funds data. The publication can be purchased, flow of funds accounts and describes how the accounts for $20.00, from Publications, Mail Stop 127, Board are constructed. It lists each flow series in the Board's of Governors of the Federal Reserve System, Washingflow of funds publication, "Flow of Funds Accounts of ton, DC 20551. the United States" (the Z.l quarterly statistical release), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

111 Federal Reserve Bulletin • November 2003 Federal Reserve Statistical Releases Available on the Commerce Department's Economic Bulletin Board The Board of Governors of the Federal Reserve Sys- For further information regarding a subscription to tem makes some of its statistical releases available to the economic bulletin board, please call (202) 482the public through the U.S. Department of Com- 1986. The releases transmitted to the economic bullemerce's economic bulletin board. Computer access tin board, on a regular basis, are the following: to the releases can be obtained by subscription. Reference Number Statistical release Frequency of release H.3 Aggregate Reserves Weekly/Thursday H.4.1 Factors Affecting Reserve Balances Weekly/Thursday H.6 Money Stock Weekly/Thursday H.8 Assets and Liabilities of Insured Domestically Chartered Weekly/Monday and Foreign Related Banking Institutions H.10 Foreign Exchange Rates Weekly/Monday H.15 Selected Interest Rates Weekly/Monday G.5 Foreign Exchange Rates Monthly/end of month G.17 Industrial Production and Capacity Utilization Monthly/midmonth G.19 Consumer Installment Credit Monthly/fifth business day Z. 1 Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis