The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis @][I] @J@l [E] rn m[E] rn rn m rom the rn:1 oardroom [§] pening a [E] e\N [§] ffice [E] ighlights of DJ[I][[J[fil @J irectors mm mm ~ he Federal Reserve Bank of San Francisco is one of 12 regional Reserve Banks which, together with the Board of Governors in \1\/ashington, D.C., comprise the nation's central bank. lL!J As the nation's central bank, the Federal Reserve is responsible for making and carrying out our nation's monetary policy. It also is a bank regulatory agency, a provider of wholesale priced banking services, and the fiscal agent for the United States Treasury. The Federal Reserve Bank of San Francisco serves the Twelfth Federal Reserve District, which includes the nine western states - Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and \1\/ashington Guam, American Samoa, and the Northern Mariana Islands. To serve this expansive region, the San Francisco Reserve Bank has five offices: the headquarters in San Francisco, and offices in Los Angeles, Portland, Salt Lake City, and Seattle. Each office provides financial services to the public and banking institutions in its locale. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m[fil @1 [0 [I)[E][[] [[)@] 0 [fil [[] [fil@]@] [0 From /efi-, James A . Vohs, I 996 Deputy Chairman; Robert T Parry, President; Judith M Runstad Chairman; John F Moore, First Vice President; and Cary C. Michael, I 991 Deputy Chairman. ~ his Report takes a look at one of the innovative ways we are using to serve our customers. We in the Twelfth Federal Reserve District have always felt a special challenge in finding efficient ways to serve constituents spread over 1.3 million square miles, 3 5 percent of the nation's area. In addition to covering these vast geographical expanses, we enjoy a diverse client base which ranges from rural to urban locations, small to large institutions, with varying needs and opportunities for interaction with the Federal Reserve. The World Wide Web gives us yet another vehicle for interacting with and providing timely information to many of these people. It is a medium which lets us, and our customers, react quickly to changing events. lL!.J https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The site can be continually evolving and changing, making it a more dynamic medium than traditional publishing. You will find it at http://www.frbsf.org. In a District as large and varied as this, we place a strong reliance on the input of our directors to keep us in tune with their areas and industries as we perform the important tasks of formulating monetary policy and managing the nation's financial system. We would like to thank all Twelfth District directors for their invaluable counsel and assessments of economic and financial conditions throughout the West during 1996. We want to express our sincere thanks and appreciation to those directors who completed their terms of service during 1996: on the San Francisco Head Office Board, 1996 Deputy Chairman and immediate past Chairman of the Board, James A. Vohs (Chairman, Retired, Kaiser Foundation Health Plan, Inc., and Kaiser Foundation Hospitals, Oakland, CA), and Richard L. Mount (Chairman, President and CEO, Saratoga Bancorp, Saratoga, CA); on the Los Angeles Branch Board, Chairman, Anita E. Landecker (Western Regional Vice President, Local Initiatives Support Corporation, Los Angeles, CA), William S. Randall (President, Retired, the former First Interstate Bancorp, Los Angeles, CA), and Thomas L. Stevens, Jr. (President, Retired, Los Angeles Trade-Technical College, Los Angeles, CA); on the Portland Branch Board, Chairman, Ross R. Runkel (Professor of Law, Willamette University, Salem, OR), Cecil W. Drinkward (President and CEO, Hoffman Corporation, Portland, OR), Elizabeth (Betsy) K. Johnson (President, TransWestern, Inc., Scappoose, OR), and Marvin R. O'Quinn (Chief Operating Officer, Providence Portland Medical Center, Portland, OR); on the Salt Lake City Branch Board, Constance G. Hogland (Executive Director, Boise Neighborhood Housing Services, Inc., Boise, Idaho); and, on the Seattle Branch Board, Chairman, George F. Russell, Jr. (Chairman, Frank Russell Company, Tacoma, WA), and Thomas E. Cleveland (Chairman and CEO, Access Business Finance, Bellevue, WA). We also note here, with much sadness, the untimely loss in 1996 of a good and gifted friend and counselor, Seattle Branch Director Dr. William R. Wiley (Senior Vice President, Science and Technology Policy, Battelle Memorial Institute, Richland, WA). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://www. frbsf. org ~T Judith M. Runstad Chairman 7 Robert T Parry President ~ 0 rnE]w1 @EEIIJiffiJ No wet painl no ribbon cutting no fanfare - just the click ofa computer keystroke and its open. By karen.flamme@sf.frb.org "Open 24 Hours!" ~ t wasn't long ago that a sign announcing round--the--clock service was a pretty good indication that a business was willing to go to extraordinary measures to meet its customers' needs. Since then, 24--hour, walk--in service has become commonplace in a number of industries. Today, to keep ahead of, or even abreast of the competition, many businesses are taking a leap into cyberspace and opening virtual offices that are accessible 24 hours a day, 365 days a year, to customers around the world. And the best part is that customers can access these offices from the comfort of their homes, offices, or neighborhood coffeehouses. In the spring of 1996, the Federal Reserve Bank of San Francisco opened just such an office on the World Wide Web. 1------------------------------ lL!..J I Our address - http://www.frbsf.org - leads customers to the entrance of the FedWest GateWay, a portal to information from and about the Federal Reserve Bank of San Francisco. It's as accessible to a banker in downtown Los Angeles as it is to a rancher in eastern Oregon, a teacher in Connecticut, or a student in Switzerland. In educating the public about the Federal Reserve System's purposes and functions and role as fiscal agent for the United States Treasury, the Web is proving to be an efficient and cost--effective way to reach constituents within our nine--state District and beyond. In an era in which it is increasingly difficult to know who wants and needs information about the economy, the Federal Reserve, and the services we provide, the Web gives us a way to publish various kinds of information quickly and inexpensively and let our customers choose what they need when they need it. It is easily accessible, educational, and engaging, allowing users to receive information nearly instantaneously, explore, select what they want, and communicate with us whenever convenient. In addition, interactive features which let users give us feedback allow us to learn from and about our public. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~hat's the magic that makes it possible? The World Wide Web is, basically, a system which allows easy access to, and sharing of information on, the Internet - a gigantic, free computer network. A site on the web, such as FedWest GateWay, is a place where you can call up and read, download, or interact with, documents and graphics with the click of a mouse. In addition, highlighted words or phrases within documents serve as links to web sites anywhere in the world. The number of web users grows exponentially. Suffice it to say they number in the millions and reside in virtually every country. li!!J ■----- Using the "build it and they will come" philosophy, we did, and you have. Visitors to FedWest GateWay now number about 4,000 a week - a number that is steadily growing - and come to us from around the world. We are proud to say that FedWest GateWay has been awarded a 4--star rating by the Magellan guide, a directory which rates and reviews Internet sites for depth of content, ease of exploration, and Internet appeal. It was featured in the Bay Area on KRON-TV as the Web Site of the Day, and was cited by a columnist in The Californian newspaper as "one of the best designed web sites I have ever come across." https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Information organization is one of the biggest challenges to web site developers. A common complaint about the Internet is that there is so much information available on it that it is difficult for users to find what they need quickly and efficiently. Our clients want to navigate easily to the information they need without becoming snared in a frustrating and time--consuming tangle of information overload. To avoid the snares and tangles, FedWest GateWay is organized in sections, grouping similar information together with similar usage patterns. Distinct graphics and easy--to-follow menus provide overviews of the contents and guide users to their destinations. FedWest GateWay is currently arranged into seven sections: Inside the FRBSF, Economic Research, Treasury Securities or Savings Bonds, Economics Education, Banking and Finance in the West, Federal Reserve System, and Community Affairs. Within each of these sections there are subsections which further define the available choices and offer links to other relevant sites. At every point it is easy to retrace your steps, back up to main menus, find out what's new on the site, access the glossary, perform searches, and give feedback. VVhat better than the Golden Gate Bridge and seal of the Twelfth Federal Reserve District to let you know graphically you are entering a world of information about the Federal Reserve Bank of San Francisco? Designed to entice the casual web browser, business person, student, or job seeker, this section is broken into five categories: News and \/2'ews- Press releases and speeches by Bank officials, information about our officers and directors, and a link to Fed Views, a monthly interview on current economic conditions About the 12th District - Key facts about the District, links to the home pages of the nine states within our District, telephone numbers of key contacts at this Bank, and bank holidays \/2'siting the FRBSF- Information about tours, the Bank's VVorld of Economics, and currency exhibitions, and also points of interest in our neighborhood Publications and Resources - An index of publications and other resources available from this Bank along with ordering information Employment Opportunities - Up--to--the minute job opportunities with the Federal Reserve Bank of San Francisco and application information rn~m0rn~~rn rnm~~~rnrnrnmrn ~~ rn0rnrn~~rn rn~~~rn The site's most popular area is introduced by a graphic of stately columns whose clickable buttons lead visitors to information about Treasury Securities or Savings Bonds. As fiscal agent of the United States Treasury, this Bank provides direct sales and service of marketable Treasury securities: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Treasury Securities - Lets you learn about Treasury securities, buy securities, and find out auction dates and rates Buying Securities - Describes types of securities and contains interactive instructions and purchase forms, information about interest and principal payments, and frequently asked questions Treasury Auction Rates and Dates - Provides information regarding Treasury bills, cash management bills, and notes and bonds Savings Bonds - Helps you understand United States Savings Bonds: how ~ and where to buy them; how to manage savings bonds; tools to help you s.0 of§>'u track your savings bonds; answers to frequently asked questions; plus a direct link to the U.S. Treasury for a complete guide to investing in savings bonds Charts and graphs about the economy visually lead you into the three subsections which comprise Economic Research: Publications and Resources- Full downloadable texts of periodicals, working papers, and reports on Western economic developments produced by this Bank's staff of economists Fed Vi'ews - A transcript of this monthly videotaped interview on current developments in the Western economy Economic and Rnancial Information - Links to statistical releases and national economic and financial data published by the Board of Governors and other Federal Reserve Banks https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I[(l[§][o][N][o][MJCTJ[§][s] l[)@][u][§]r;JGJCTJ[o][N] This gate opens onto a blackboard symbolizing resources designed especially for teachers and students. The next menu introduces four choices: Curriculum Materials- Descriptions of written materials, computer games, and video programs for teaching economic concepts, and order forms for these materials Publications and Resources - Downloadable text and information about teaching materials available throughout the Federal Reserve System Links for Economics Teachers - Direct connections to other sites containing aids for teaching economics Links to - Information about Bank tours, fun facts about money, the World of Economics exhibition, and for students, an interactive treasure hunt based on the World of Economics l[[lr;J[N][ICTJ[N]@J l[Al@@J l[lCTJ[N]r;J[N][§][) [E] [BJ ffil m rn m m rn rn Here a ranch--style gate opens to a bane card symbolizing the growing importance of electronic banking and finance. As the central bank for the geographically largest and most populated district in the Federal Reserve System, the San Francisco - - - - - Reserve Bank has plenty to keep track of in the way of banking and finance. Feedback features on the Web let us find out our customers' needs and wants and be responsive to them. This helps us fulfill our mission of keeping the nation's payments system operating efficiently and safely. From local banks in Alaskan outposts to multi--branch urban financial institutions, we are committed to providing information and services for and about our customers. Western banking data and resources are available in four locations on this site: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Banking D- .cl & R -ources Statistical reports and resources from this and other Federal Reserve Banks Bank· ,.., Applications and dockets Instructions, forms, and links to recent actions I2th District lnst:rutinns - Lists of District depository institutions divided into seven subcategories B,. nking Newslett .r - Community investment, customer products and services, and educational newsletters p==;==,t' s only fitting that giving good customer service in the West would include using the most advanced technology, and the entire Twelfth District is sure to benefit from currently emerging technologies. According to a recent study by the Bay Area Economic Forum, "The San Francisco Bay Area is clearly at the cutting edge of the emerging knowledge..-based economy in the U.S. It leads all other regions in key indicators: the largest share of college and advanced degrees; more and better research centers; more than double the average number of patents per employee; the largest share of high tech exports; and three times the commercial Internet domains. l.!..J "There are also many exciting new Internet companies," the report continues. "One company is pioneering methods for conducting cash transactions over the Internet in a secure way, and another is working with the larger banks to develop standards for bank payments over the Internet. ----- "The Bay Area is also the birthplace of many of the fastest growing financial services companies in the U.S .... due in part to the fact that unprecedented links have been formed between the traditional banking community and the region's cutting..-edge information and computing services companies. The close proximity between the Bay Area's financial institutions and information technology companies promotes partnering and cross..-industry learning." The Ba.y Area.: Lea.ding the Transition to a. Knowledge-Based Economy Published by the Bay Area Economic Forum, August 1996 http://netra1.abag.ca.gov/bayarea/commerce/baef.html https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Among its varied functions, the Federal Reserve produces newsletters, reports, seminars, workshops, and conferences and encourages banks to work with community organizations to promote local economic development: Mission Statement - Goals and mission of the program Profiles - Comprehensive studies of metropolitan communities in the District Publications - Community Affairs newsletters and publications from this Bank, as well as links to other Reserve Banks Resources - Helpful sources from this and other Reserve Banks Partners Home Mortgage Software of Atlanta 0 Links to the Federal Reserve Bank m@J m[[] 0 m rn m rn rn m [0 Basic information about what the Federal Reserve System is and what it does, as well as other governmental resources, can be found at this location on the site: Economic Information and Resources - Includes speeches by members of the Board of Governors, Federal Open Market Committee information, Monetary Policy testimony, the Beige Book, and links to economic data Publications and Resources - General publications by and about the Federal Reserve System, including Fed in Print, a comprehensive search engine to locate publications throughout the Federal Reserve System https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Other Federal Reserve Districts Bank sites Direct links to other Federal Reserve Government Data and Resources web sites Links to a database listing all Federal government Federal Financial Regulatory Agencies and Central Banking vVorldwide - Links to other Federal Financial Agency sites and to the central banks of numerous foreign countries By the time you exit FedWest GateWay - our virtual office - we trust you will feel your visit was rewarding. We hope that you found the information you came for; learned something new; communicated with us; were entertained; and will visit us at this office again soon - remember, it's open 24 hours. http://www.frbsf.org https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis [[] 0 [E] [[] @1 mmrn @1 m[E] rn ?4s a/December 3 I, Robert T Parry President and Chief Executive Officer John F. Moore First Vice President and Chief Operating Officer I 996) Robert D. Mulford Vice President, General Counsel and Ethics Officer Elizabeth R. Masten Vice President and Secretary of the Board Jack H. Beebe Senior Vice President and Director of Research Barbara J. Contini Vice President Elizabeth K. Christensen Senior Vice President Frederick T Furlong Vice President Sara K. Garrison Senior Vice President William K. Ginter Vice President Michael J. Murray Senior Vice President Reuven Glick Vice President Terry S. Schwakopf Senior Vice President John P. Judd Vice President and Associate Director of Research Laurence Washtien Senior Vice President D. Kerry Webb Senior Vice President S. Jean Hinrichs General Auditor Ronald E. Mitchell, Jr. Vice President Susan Porterfield Vice President Douglas R. Shaw Vice President and Counsel ..2..121- - - ~ a=r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis W. Gordon Smith Vice President Sallie H. Weissinger Vice President and Director of Public Information Patricia A. Welch Vice President James M. Barnes Director Kenneth R. Binning Director Harold H. Blum Director Nancy Emerson Director Eliot E. Giuili Director Donald R. Lieb Director John Y C. Lin Director Susan A. Sutherland Director e, ~ -~ Kenneth M. Kinoshita Craig B. Knudsen Associate General Counsel Assistant Vice President Beverley--Ann Hawkins Automation Resources Officer Beatrice K. Ashburn Assistant Vice President Ellsworth E. Lund, Jr. Assistant Vice President Paige Birdsall Assistant Vice President Bonnie R. Allen Assistant Vice President Sylvia A. Cunningham Assistant Vice President Elizabeth M. O'Shea Assistant Vice President Gail A. Garvey Assistant Vice President Philip M. Ryan Assistant Vice President Elaine Geller Assistant Vice President W. Starr Seegmiller Assistant Vice President Todd Glissman Assistant Vice President James J. Tenge Assistant Vice President John S. Hsiao Assistant Vice President Thomas R. Thaanum Assistant Vice President Darren S. Post Officer, ACH, Business Development and Electronic Product Support Peter K. C. Hsieh Assistant Vice President David W. Walker Assistant Vice President Glenn D. Rudebusch Research Officer Deborah S. Jackson--Duke Assistant Vice President Jim Callahan Audit Officer Bharat Trehan Research Officer Lelia M. Jones Assistant Vice President Angela D'Alessandro Examining Officer Elizabeth L. Wood Systems Officer https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Louis "Skip" George District Security Officer Michael E. Johnson Applications Officer Mark Levonian Research Officer Joy Hoffmann Molloy Community Affairs Officer Brian Motley Research Officer Gary P. Palmer Financial Analysis Officer [[] rnJ 0 Mark Mullinix Senior Vice President Sean J. Rodriguez Vice President and Assistant Branch Manager Nancy Olmstead Director Rachel A. Romero Assistant Vice President Robert C. Johnson Assistant Vice President Dale L. Vaughan Assistant Vice President Roger \N. Replogle Assistant Vice President Marla E. Borowski Officer, Custodies Services Darcy J. Coulter Director mJ @1 rnJ [E] [fil [E] Linda \Nesterschulte Officer, PersonneVFP&C rn [E] m rnJ mJ rnJ m @1 rn @1 mJ Gordon \Nerkema Executive Vice President 0[£]~mm0m1~ rn 0 mrn m0 0 m @J rn rn rn rn m 0 :rJ rn m :ID Raymond H. Laurence Senior Vice President Andrea P. \Nolcott Vice President Gale P. Ansell Assistant Vice President Mary E. Lee Assistant Vice President Jed \N. Bodily Assistant Vice President Jimmy F. Kamada Assistant Vice President Robert D. Long Assistant Vice President Gerald R. Dalling Assistant Vice President Kenneth L. Peterson Assistant Vice President Robin A. Rockwood Assistant Vice President Richard B. Hornsby Assistant Vice President Michael J. Stan Assistant Vice President https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Thomas P. McGrath Assistant Vice President rn rnJ 0 [El @l [E] @1 0 mrn1 0 rn rn @1 [El rn From lefi, Ma.rk Mullinix, Senior V!ce President, Los Angeles; Andrea P \1\,6/cott, V!ce President, Salt Lake City; Cordon R. C. \l\krkema, Executive Vice President, Northern Region; and Raymond H Laurence, Senior Vice President, Pon/and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis [E] rn @1 [E] mrn @1 [E] mrn rnmmm rrv=J eeping the nation's payments system operating smoothly and efficiently ~ continues to be a challenge to the regional Reserve Banks as the needs of our customers change and expand rapidly. We are developing new technologies and customized solutions to creatively tailor the banking services we offer to depository institutions and the federal government. There were several notable milestones in 1996. It's our job to make sure there is enough coin and currency in circulation to meet the public's demand. In fact, the warehousing, shipping, processing, and handling of currency are major functions of the Reserve Banks. This was an especially notable challenge in 1996 as we introduced the redesigned $100 bill to the public in March. The redesigned bills include new or modified features to· improve security and stay ahead of counterfeiters and advances in technology which make it easier to reproduce currency. A seamless introduction of the new currency into the money stream was essential. We began storing the new notes at all of our five offices as early as January to make sure we had enough on hand to release the end of March. But before that, in the third quarter of 1995, we held 20 customer education seminars in seven states throughout the Twelfth District. In addition to the seminars, we distributed information kits; circulated an informational video with reasons for the redesign, circulation plans, and recognizable features of the redesigned currency; and staffed an information desk to assist customers with any questions regarding the new currency. To facilitate the smooth rollover of $1 00s in foreign markets, Extended Custodial Inventories (ECls) were established and managed by the Federal Reserve Bank of New York in London, Frankfurt, and Zurich. These ECls strategically stockpiled inventories in key markets and geographic redistribution centers to minimize inventory limitations imposed by flight schedules and in--transit insurance ceilings. Were we successful? Currently, approximately 60 percent of all $1 00s flowing back to our Bank are the newly designed notes, and they now make up 32.7 percent of the 2.6 billion notes in circulation. But all transactions are not handled in cash. In fact, check volume, contrary to forecasters' predictions, continues to increase, and handling paper checks and the related movement of funds remain costly and labor intensive. Approximately 63 billion checks are written each year in the United States, a number which is expected to continue to grow over the next several years. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis . ,e::, •• Converting these paper checks to electronic data is one way to expedite check clearing. Electronic Check Presentment (ECP), for example, provides financial institutions with an electronic file of check data in advance of the delivery of the physical checks from the Federal Reserve, allowing earlier identification of fraud, decreased clearing times, and reduced reliance on transportation. During 1996, the Bank introduced check imaging as a complement to such electronic products as ECP. Check imaging takes a digital picture of a check and saves it in digital, computer---file form for retrieval when needed. This process, in essence, turns a paper check into an electronic "picture" which is easier to organize, distribute, store, and access. ECP, together with check images, allows banks and their cash management customers to address fraud and risk concerns up to 12 hours earlier than if they had to wait for the arrival of physical checks. Retrieving check images from computer storage systems also speeds response time in handling customer balance inquiries, requests for check clearing information, and requests for check copies, resulting in operational efficiencies and improved customer service. The Bank's check image product line is flexible and can be easily customized to meet a variety of needs. Electronic funds transfer is a faster and more secure method of payment than either cash or check. The automated clearing house (ACH) is an electronic funds transfer system. This nationwide network processes electronically originated credit and debit transfers such as direct deposit payroll payments and corporate payments to contractors and vendors. During 1996 the Federal Reserve System converted to a new centralized ACH application software, Fed ACH. This software enabled us to significantly reduce fees and provide depository institutions with greater control over how they access, process, and settle ACH transactions. Because ACH transactions are processed from one central computer site within the Federal Reserve System, items no longer have to be transmitted from one Federal Reserve district to another. In addition, customers have expanded file delivery options and enhanced on---line access. This means they can have greater processing flexibility and provide their customers with time---critical ACH payments more quickly. The Federal Reserve also holds U.S. government securities in safekeeping as book entries - electronic records rather than paper certificates - for depository institutions. During 1996, the Federal Reserve Bank of San Francisco also installed new software in this service. This software, which is referred to as NBES (New Book---Entry System), provides for centralized computer processing at a single site with standardized services to depository institutions. NBES offers an increased number of accounts available to users; improved contingency and disaster recovery capabilities; quick wire transfers for all transactions; and enhanced reporting features. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Operational controls in the Los Angeles Branch Cash area received an unusual amount of scrutiny in 1996. As a result of an internal compliance team's findings of errors in a Los Angeles Cash administrative report, the General Accounting Office reviewed the department's statistical reporting processes and noted possible concerns regarding the integrity of cash accounting and financial controls. By year--end, results of an internal audit, a Board of Governors examination, an unannounced vault count, and an independent, external accounting firm's review all pointed to the soundness of our operational controls and the integrity of our overall cash operation. ffil mrn mmffil @l [8] Research during 1996 addressed policy--related issues, including U.S. monetary policy, international topics, and the effects of banking industry restructuring. Staff published extensively both in Bank publications and outside academic journals. Monetary policy studies covered such topics as the effect of policy on the economy, indicators of future inflation, and the way in which the Fed sets the stance of monetary policy in response to economic developments. International topics included monetary policy targets in the United Kingdom, New Zealand, and Japan; exchange rate risk and trade flows; and exchange rate exposure and crises. Banking studies looked at efficiency, the pricing of financial services, and the availability of credit. This research formed the basis for extensive briefings of senior management on monetary and regulatory policy, as well as economic developments in the western United States and the Pacific Basin. Furthering the Bank's ongoing efforts to promote cooperation and share research among Pacific Basin countries, our Center for Pacific Basin Monetary and Economic Studies held a conference, "Managing Capital Flows and Exchange Rates: Lessons from the Pacific Basin." The department also co--hosted an academic conference with the Center for Economic Policy Research at Stanford University. Papers at that conference examined the measurement and management of monetary policy. rn0~~rn~~ rn~0mrnJ0rnrnru~~ m~~ ffilm~~mmmm~~ The supervision and regulation function in 1996 was significantly affected by rapid changes in the industry brought on by increased industry consolidation, interstate branching and banking, and the development of electronic banking products and services. Specific emphasis was placed on risk management, concentrating on increasing the value of the supervisory process and ensuring its efficiency and effectiveness for our customers. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 ,e-:,, •• To achieve delivery of a more effective, risk-focused, and seamless supervisory approach, the Consumer Compliance and Community Affairs and Bank Supervision and Regulation departments were merged into one division. At year--end there were 62 state member banks in the District. There were also 210 holding companies with assets totaling $522 billion, 120 branches and agencies of foreign banks, 8 Edge and Agreement corporation offices, and 40 representative offices. Overall applications activity declined as the total number of applications filed during 1996 reached 291 as compared to 310 in 1995. This level, while slightly reduced from the prior year's activity, continues to reflect the expansion and consolidation of the industry. Applications to form bank holding companies declined from 54 during 1995 to 26 in 1996, and merger applications by state member banks declined by half in 1996. The Twelfth District continued to provide guidance and direction on community reinvestment throughout the nine Western states. Community Affairs co--sponsored, with the American Bankers' Association and the Small Business Administration, the 1996 National Community Development Lending Conference. Later in the year, the unit sponsored its annual Community Reinvestment conference, entitled "The New CRA: Focus on the Future." It also sponsored two one--day small business lending conferences and a conference on electronic banking and its implications for consumers, and facilitated numerous other meetings. Staff also coordinated a series of seven public meetings on the proposed merger between First Interstate Bank of California and Wells Fargo Bank, with approximately 550 individuals providing their comments on CRA activity of these banks. In the area of community development, the Bank provided leadership to the Association of Reinvestment Consortia for Housing, and consulted with Seattle--based banks on the formation of the Seattle Small Business Lenders Association's "One Stop Capital Shop." To assist banks in identifying local investment opportunities, the unit held bi--monthly roundtables in Boise, Las Vegas, Los Angeles, Salt Lake City, San Francisco, and Seattle. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis on ~ From lefi, Elizabeth K Christensen, Senior Vice President; John F Moore, First VJce President and ChiefOperating Officer; Robert T Parry, President and ChierExecutive Officer; Jack H Beebe, Senior VJce President and DirectororResearch; Terry 5. Schwakopf, Senior Vice President; and Cordon R. C. \11krkema, Executive VJce President. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis re' •• Volume (in thousands) 11 ]] :fil :rJ ~ ]] :rJ Cash Services Currency notes paid into circulation Food stamp coupons processed Securities Services Other Treasury original issues Book-entry securities processed :cl ~ :yJ ~ ~ ~ :rJ 4,298,035 753,589 4,317,704 748,535 216 805 201 894 125 829 2,269,690 69,567 29,941 2,082,513 67,148 30,569 2,188,856 61,741 32,767 19,507 459,032 20,146 525,549 22,113 404,974 587 56 482 66 461 83 ~ Check Services Commercial checks collected Government checks processed Return items processed Electronic Payments Services Wire transfers processed Automated clearinghouse transactions processed Total discounts and advances* Number of financial institutions accommodated* * Whole number (not in thousands) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4,212,494 694,306 (in millions) m@HIJ [0 rn mrnJ rn rn □ mm~~ mm~m @J Gold certificates Special drawing rights certificates Coin Items in process of collection Loans to depository institutions U.S. government and federal agency securities, net Investments denominated in foreign currencies Accrued interest receivable lnterdistrict settlement account Bank premises and equipment, net Other assets Total assets m rn ~ :m ~ m m 21 ~ m $ 1,036 977 37 574 103 30,308 2,631 301 23,441 220 23 2,935 308 5,351 206 26 $63,995 $41,861 $ 56,905 $ 35,901 3,612 22 1,575 49 0 4,188 20 533 0 54 70 17 $ 62,250 69 12 $ 40,777 $ 880 865 1,745 $ 542 542 1,084 $ 63,995 $ 41,861 ~ Liabilities Federal Reserve notes outstanding, net Deposits Depository institutions Other deposits Deferred credit items Statutory surplus transfer due U.S. Treasury Interest on Federal Reserve notes due U.S. Treasury Accrued benefit cost Other liabilities Total liabilities Capital Capital paid--in Surplus Total capital Total liabilities and capital https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $ 1,067 957 74 1,873 15 33,393 ~ ~~ e, ~~----------.........::~:>_,,,,,,,,,,. ~ -~ rn [E] [§] @l ml m rn rn 0 rn mml m[E] rn (in millions) m[§] rn:J crum m mm0 rn:J m ~ ml @J m@l □ m[£] m[Bl mmrn:J rn rn □ rnmmrn rnmmm @J Interest income Interest on U.S. government securities Interest on foreign currencies Interest on loans to depository institutions Total interest income $1,967 61 1 $ 1,979 109 1 2,029 2,089 82 18 (228) 76 18 140 3 3 0 Other operating income Income from services Reimbursable services to government agencies Foreign currency gains (losses), net Government securities gains, net Other income Total other operating income (loss) (122) 5 239 Operating expenses Salaries and other benefits Occupancy expense Equipment expense Cost of unreimbursed Treasury services Assessments by Board of Governors Other expenses Total operating expenses Income before cumulative effect of accounting change Cumulative effect of change in accounting principle Net income prior to distribution 143 16 139 15 17 19 5 58 67 308 1,599 2,043 0 (7) $ 1,599 $2,036 $41 338 852 $31 30 1,975 6 52 56 285 Distribution of net income Dividends paid to member banks Transferred to surplus Payments to U.S. Treasury as interest on Federal Reserve notes Payments to U.S. Treasury as required by statute https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 368 $ 1,599 •• ~ e $ 2,036 rnrn0rnm~mrn1rn ~m ~~0~~~~ rn rn1 @l 0 wrn rn 0 w (in millions) ~~J1] ~ ~ ~ ii }cl JD ~ 1!J 2.l i[.J 21 }!] ~ 2d ~Li.J ~ ~ ~ .!:!L£l ~ ~ :J jj~~~ il .£J .~E£LiJ !cl ~ .!J ~ 2.1 J.LJ :£1 ~ :cl JJ 21 :cl JJ :cl ~ .1.l ~ ..J JJ 1:!J Balance at January 1, 1995 $ 512 2J ~ 2.) :cl JJ ~~J!JJ:.11.]~~ ~~.!:JJ..12.)~JJ $ 512 $ L024 30 30 (10,244,349 shares) Net income transferred to surplus Net change in capital stock issued (588,751 shares) Balance at December 31, 1995 $ 30 $ 542 $ 30 $ 542 $ L084 Net income transferred to surplus 338 338 Statutory surplus transfer to the U.S. Treasury (15) (15) (10,833,100 shares) Net change in capital stock issued (6,760,353 shares) Balance at December 31, 1996 $ 338 $ 880 $ 338 $ 865 $ L745 (17,593,453 shares) These statements are prepared by Bank management. Copies offull and final financial statements, complete with footnotes, are available by contacting the Banks Public Information Department at 415/ 914/2163 or on our web site at http://www.frbsr.org. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis m m @J m rn:J 0 ITl rn:J m rn m rn:J rn m rn0~~ ~m rn:10~ mrn:J0~~mrn~~ rn~0rn:J@J ~m @Jmrn:Jm~rn~rn:Jrn Deputy Chairman Chairman and Federal Reserve Agent Gary G. Michael Chairman and CEO Albertson's Inc. Boise, Idaho Judith M. Runstad Partner Foster, Pepper & Shefelman Seattle, \Nashington Gerry B. Cameron Chairman and CEO U.S. Bancorp Portland, Oregon Robert S. Attiyeh Senior Vice President and Chief Financial Officer Amgen, Inc. Thousand Oaks, California Krestine M. Corbin President and CEO Sierra Machinery, Inc. Sparks, Nevada E. Lynn Caswell Vice Chairman Monarch Bancorp Laguna Hills, California \Narren K. K. Luke Vice Chairman, President and CEO Hawaii National Bank Honolulu, Hawaii https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Stanley T Skinner Chairman and CEO Pacific Gas and Electric Co. San Francisco, California Cynthia A. Parker Executive Director Anchorage Neighborhood Housing Services, Inc. Anchorage, Alaska t-~- mmrn mrn1 0 m 0 rn rn mm@l rn1 rn ml ml [§] mm [0 m[0 rn mrn1 [§] @l \Nilliam F. Zuendt President and COO \Nells Fargo & Company San Francisco, California m~rn rn~~mmmrn rn~rn~~~ rn~rn~rn ~0 rnrn~m~rn~~rn Chairman of the Board Anne Ledford Evans Chairman Evans Hotels San Diego, California Stephen G. Carpenter Chairman of the Board and CEO California United Bank Encino, California ' I ' ..; Antonia Hernandez President and General Counsel Mexican American Legal Defense and Educational Fund (MALDEF) Los Angeles, California Vacant Position Lori R. Gay President Los Angeles Neighborhood Housing Services, Inc. Los Angeles, California Liam E. McGee Group Executive Vice President Bank of America Los Angeles, California David Lewis Moore President Western Growers Association Irvine, California ,e::, •• https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 @l [[] rn m 0 [E] @1 rn1 [[] 0 [E] [£1 [E) rnJ@lEJ[[)@J ~m @1rn[[)m[£lrn@l[[)rn https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Chairman of the Board Carol A. V\/hipple Proprietor Rocking C Ranch Elkton, Oregon Phyllis A. Bell President Oregon Coast Aquarium Newport, Oregon Martin Brantley President and General Manager KPTV-12, Oregon Television, Inc. Portland, Oregon Nancy V\/ilgenbusch President Marylhurst College Marylhurst, Oregon Patrick Borunda Executive Director Oregon Native American Business &- Entrepreneurial Network (ONABEN) Portland, Oregon John David Eskildsen President and CEO U.S. National Bank of Oregon Portland, Oregon 1 Thomas Cook Young Chairman, President and CEO Northwest National Bank Vancouver, VVashington m0 mrn m0 IBJ m @1 rn rn m rn rnJ 0 rn:J @1 [[] rn @1 0 rni [[[] @1 m [[[] rn @ m@1 rn @J mi m Chairman of the Board Gerald R. Sherratt President Southern Utah University Cedar City, Utah R. D. Cash Chairman, President and CEO Questar Corporation Salt Lake City, Utah Maria Garciaz Executive Director Salt Lake Neighborhood Housing Services, Inc. Salt Lake City, Utah Richard E. Davis President and CEO Salt Lake Convention and Visitors Bureau Salt Lake City, Utah J. Pat McMurray President First Security of Idaho Boise, Idaho Nancy Mortensen Vice President, Marketing Zions Cooperative Mercantile Institution Salt Lake City, Utah https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Roy C. Nelson President Bank of Utah Ogden, Utah re' rn m 0 rn rn [[] m rn @1 0 rn:J @l @1 m [[] [[) 0 [E] @] [E] @l rn rn:J m@l rn @1 rn:J rn Chairman of the Board Richard R. Sonstelie Chairman and CEO Puget Sound Energy, Inc. Bellevue, Washington Boyd E. Givan Senior Vice President and CFO The Boeing Company Seattle, Washington Tomio Moriguchi Chairman and CEO Uwajimaya, Inc. Seattle, Washington https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis John V Rindlaub Chairman Seafirst Bank Seattle, Washington Betsy Lawer Vice Chair and COO First National Bank of Anchorage Anchorage, Alaska Constance L. Proctor Partner Alston, Courtnage, MacAulay & Proctor Seattle, Washington Helen M. Rockey President and CEO Brooks Sports, Inc. Bothell, Washington @l [E] 0 [I] ml [0 0 ml Bailey S. Barnard Allied Capital San Francisco, California Jerry D. Caulder Chairman and CEO Mycogen Corporation San Diego, California Barry Baszile President Baszile Metals Service Los Angeles, California Paula R. Collins Chief Executive Officer VVDG Ventures, Inc. San Francisco, California Lawrence S. Okinaga Partner Carlsmith Ball V\/ichman Case & Ichiki Honolulu, Hawaii Don M. "Duff' V\/illey President V\/illey Motors, Inc. Bountiful, Utah :I):[)i: - - ~ - - -...a:::r:r::::s--.:lllo--c::-..:~ u.crl---IIIIC:lca....... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ~. ~ rn~0mm rn~rnrn~mrnrn 0 [[] 0 ffi1 ml rn @1 ~ mrn ~ ml m ~~ ~ Karla S. Chambers Vice President Stahlbush Island Farms, Inc. Corvallis, Oregon Peter H. Parra Board of Supervisors Fifth District, County of Kern Bakersfield, California Peter H. van Oppen Chairman and CEO Advanced Digital Information Corporation Redmond, Washington https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Richard S. Walden President Farmers Investment Co. Sahuarita, Arizona Walter F. Payne, Jr. President and CEO Blue Diamond Growers Sacramento, California Bob L. Vice President and CEO California Farm Bureau Federation Sacramento, California rn m m 0 rn ml [[) mrn m[[) rn m 0 ffi1 @1 m@1 m[[) 0 m rn rn rn [[) rn @1 rn San Francisco Office P.O. Box 7702 San Francisco, California 94120 Los Angeles Branch P.O. Box 2077, Terminal Annex Los Angeles, California 90051 Portland Branch P.O. Box 3436 Portland, Oregon 97208 Salt Lake City Branch P.O. Box 30780 Salt Lake City, Utah 84130 Seattle Branch P. 0. Box 3 567, Terminal Annex Seattle, Washington 98124 printed on recycled paper https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis This Report was written and produced by Karen.Flamme@sf.frb.org. Design and illustrations were created by Mark.Hendricks@sf.frb.org. Layout was completed by L. Dylan Frederick (dylan@creative.net). Color photography by Paul Schulz (somafoto@msn.com). Textile by Brenda Cooper (cooped 957@aol.com). https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis