Full text of Federal Reserve Bulletin : August 1991
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VOLUME 77 •
NUMBER 8 •
AUGUST 1991
FEDERAL RESERVE
BULLETIN
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE
Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood
• Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman
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 Economic Editing Section headed by S. Ellen Dykes, the Graphics
Center under the direction of Peter G. Thomas, and Publications Services supervised by Linda C. Kyles.
Table of Contents
625 A METHOD FOR EVALUATING
INTEREST RATE RISK IN U.S.
COMMERCIAL BANKS
Staff members of the Federal Reserve are
investigating a possible supervisory approach to assessing the interest rate risk of
commercial banks. Once fully developed
and field tested, the approach under consideration could supplement existing examination procedures and provide an additional
off-site monitoring tool for understanding
potential exposures to interest rate changes.
Institutions identified as having high exposures to interest rate risk would be more
likely to receive detailed reviews concerning
such risk, and examiners would continue to
apply significant flexibility in their consideration of the conditions at each bank.
638 INDUSTRIAL PRODUCTION AND
CAPACITY UTILIZATION
Industrial production increased 0.5 percent
in May, after an upward revised gain of 0.3
percent in April. Total industrial capacity
utilization in May increased 0.2 percentage
point to 78.7 percent after a revised increase of 0.1 percent in April.
641 STATEMENTS
TO THE CONGRESS
The Board of Governors submits testimony
discussing the issues of lender liability under the Comprehensive Environmental Response, Compensation, and Liability Act of
1980 (CERCLA) in connection with proposed legislation, H.R. 14550 and S.651, to
deal with the issues, and says that it believes that the environmental goals of
CERCLA will be furthered by the provisions of these bills, before the House Committee on Banking, Finance and Urban
Affairs, June 6, 1991.
644 Alan Greenspan, Chairman, Board of Governors, testifies in support of the Foreign
Bank Supervision Enhancement Act, which
is designed to strengthen the supervision
and regulation of foreign banks operating in
the United States, and on section 231 of the
Financial Institutions Safety and Consumer
Choice Act of 1991 (H.R. 15015), which
deals with proposed restrictions on activities of foreign banks in the United States,
and says that the Foreign Bank Supervision
Enhancement Act would achieve an appropriate level of supervision of foreign banks
without the negative side effects of some of
the requirements of section 231, before the
House Committee on Banking, Finance and
Urban Affairs, June 11, 1991.
651 Edward W. Kelley, Jr., Member, Board of
Governors, discusses lender liability under
CERCLA and the solutions to this problem
proposed by S.651, and says that it is in the
interests of the financial and environmental
communities to find a balanced solution to
the lender liability issue and that the environmental goals of CERCLA will be furthered by S.651, before the Senate Committee on Banking, Housing, and Urban
Affairs, June 12, 1991.
654 John P. LaWare, Member, Board of Governors, gives the views of the Board regarding possible amendments to the Government Securities Act of 1986 and says that
the Treasury's current authority to write
the rules in the market for government
securities should be extended beyond the
sunset date, before the Subcommittee on
Securities of the Senate Committee on
Banking, Housing, and Urban Affairs,
June 12, 1991.
657 Alan Greenspan, Chairman, Board of Governors, discusses U.S. international com-
petitiveness and says that the ultimate test
of the country's competitiveness is what is
happening to the standard of living of U.S.
citizens over time, before the House Committee on Ways and Means, June 18, 1991.
660 David W. Mullins, Jr., Member, Board of
Governors, and nominee to serve as Vice
Chairman, reviews the basic goals of the
Federal Reserve in its two major areas of
activity, monetary policy and financial regulation, before the Senate Committee on
Banking, Housing, and Urban Affairs,
June 18, 1991.
663
ANNOUNCEMENTS
Adoption of new procedures for state banks
to follow regarding the public's access to
Community Reinvestment Act Performance
Evaluations and ratings.
Requirement that all depository institutions
that originate or receive commercial automated clearinghouse (ACH) transactions
through the Federal Reserve Banks establish electronic access to the Reserve Banks
for ACH services.
Change in Board staff.
Admission of four state banks to membership in the Federal Reserve System.
665 LEGAL
DEVELOPMENTS
Various bank holding company, bank service corporation, and bank merger orders;
and pending cases.
Ai FINANCIAL AND BUSINESS
STATISTICS
These tables reflect data available as of
June 26, 1991.
A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A55 International Statistics
A71 GUIDE TO TABULAR
PRESENTATION,
STATISTICAL RELEASES, AND SPECIAL
TABLES
A84 BOARD OF GOVERNORS AND STAFF
A86 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A88 FEDERAL RESERVE
PUBLICATIONS
BOARD
A90 INDEX TO STATISTICAL
TABLES
A92 FEDERAL RESERVE
BANKS,
BRANCHES, AND OFFICES
A93 MAP OF FEDERAL RESERVE
SYSTEM
A Method for Evaluating Interest Rate Risk
in U.S. Commercial Banks
James V. Houpt and James A. Ember sit, of the
Board's Division of Banking Supervision and
Regulation, prepared this article.
When interest rates change, the economic values
of the loans, securities, and deposits at banks
also change, but not necessarily in offsetting
ways. The net effect of these changes is reflected
in a bank's earnings and net worth. The risk that
changes in rates might adversely affect a bank's
financial condition is referred to as interest rate
risk.
As financial intermediaries, banks and other
depository institutions accept interest rate risk as
a normal part of their business. They assume the
risk whenever the interest rates paid on their
liabilities do not adjust in unison with the rates
earned on their assets. Such mismatches often
present institutions with opportunities to profit
from favorable changes in interest rates, but they
also expose a bank's capital and earnings to
adverse changes. Effective management of interest rate risk is a fundamental element of the
banking business.
Banks have many ways of managing their risk.
Most banks change their exposures by altering
the rates (or prices) and maturities at which they
are willing to originate loans, buy or sell securities, and accept deposits. With the emergence of
many new financial products and markets during
the 1980s, banks have acquired even more alternatives for managing interest rate risk while
meeting customer preferences on the terms of
loans and deposits. Interest rate swaps and financial futures, forwards, and options are some of
the growing number of tools banks now use to
adjust their exposures.
In the United States, the combination of a
volatile interest rate environment, deregulation,
and the growing array of new on- and offbalance-sheet products has made the manage-
ment of interest rate risk a growing challenge.
Accordingly, bank supervisors are placing increased emphasis on evaluating the interest rate
risk of banks. This focus has become particularly sharp in light of the current implementation of risk-based capital charges. The 1988
international agreement on capital standards
known as the Basle Accord represents an important milestone in supervisory policy by making a bank's minimum capital requirements
sensitive to the credit risk of its assets and
off-balance-sheet positions. 1 The agreement,
however, focuses primarily on credit risk; it
does not impose an explicit capital charge tied
to interest rate risk.
One possible effect of this focus is that banks
may have an incentive to substitute interest rate
risk for credit risk in structuring their balance
sheets. Indeed, this may already be happening.
The emergence of large positions in mortgagebacked securities is particularly noticeable. At
the end of 1988, these securities accounted for 17
percent of the aggregate securities portfolio of
the commercial banking industry and less than 3
percent of its total assets; by early 1991 these
shares had doubled, to 35 percent of all bank
securities and 6.5 percent of total banking assets.
Although the share of mortgage-backed securities in total assets is still small, the rapid growth
1. The Basle Accord, reached on July 11, 1988, covers the
twelve industrial countries participating in the Basle Committee on Banking Regulations and Supervisory Practices under
the auspices of the Bank for International Settlements, in
Basle, Switzerland (Belgium, Canada, France, Germany,
Italy, Japan, Luxembourg, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States). In the
United States, the Federal Reserve Board on January 19,
1989, adopted requirements implementing the Basle Accord
for state banks that are members of the Federal Reserve
System and for bank holding companies. Interim requirements became effective at the end of 1990, and final requirements will take effect at the end of 1992.
626
Federal Reserve Bulletin • August 1991
within such a short period may be an indication
of increasing interest rate risk exposure among
banks. Regardless of whether banks are increasing their exposure, interest rate risk is a fundamental element of the business and should be
considered in assessing the adequacy of bank
capital.
CURRENT RISK
GUIDELINES
The Basle Accord tailors a bank's minimum
capital requirement to the credit risk embodied in
the institution's assets and off-balance-sheet instruments. Under the agreement, those balances
perceived to carry greater credit risk must be
backed by levels of capital higher than those
required for lower-risk positions. Overall, the
standard requires internationally active banks to
have total capital (including equity, reserves, and
subordinated debt) equal to at least 8 percent of
their risk-weighted assets by the end of 1992.2
The capital treatment of interest rate risk was
deferred in the construction of the existing agreement and is now being addressed by another
international committee working, once again,
under the aegis of the Bank for International
Settlements (BIS).
The Federal Reserve System is actively participating in the work of the BIS committee. However, several reasons suggest the need for simultaneous steps to supplement the current
"domestic" approach to the supervision of interest rate risk. One reason is that the time required
to develop and implement an international standard is uncertain. Moreover, the international
approach under development is aimed primarily
at the largest and most internationally active
banks, which conduct activities in a variety of
currencies (each with its own interest rate exposure) often involving complex transactions. An
approach for incorporating interest rate risk into
the risk-based capital standard developed for
them may have to be modified for application to
many of the 12,000 small and medium-size U.S.
2. As defined, risk-weighted assets include credit exposures contained in off-balance-sheet instruments.
banks. Indeed, once an international framework
emerges for the assessment of interest rate risk,
every country may need to tailor that framework
to the specific characteristics and structure of its
own banking system.
In view of these considerations, staff members
at the Federal Reserve are investigating a possible supervisory approach to assessing interest
rate risk that would supplement existing examination procedures and provide an additional offsite monitoring tool for understanding potential
exposures to interest rate changes. The approach, which would be further developed and
field tested before its formal incorporation in the
examination process, is consistent with that being pursued internationally and would therefore
be adaptable to any international agreement that
is likely to emerge.
CURRENT TECHNIQUES FOR MEASURING
AND MANAGING INTEREST RATE RISK
Depending on their objectives and the complexity of their operations, banks use a variety of
techniques to manage interest rate risk, ranging
from relatively simple maturity " g a p " calculations to more sophisticated duration or simulation analyses. Maturity gap analysis begins with
a report that categorizes assets and liabilities by
their repricing dates to identify mismatches
within specific time periods. Those reports are
typically used by banks to estimate the effect of
interest rate changes on their near-term reported
earnings. By focusing on reported earnings to
judge rate sensitivity, this accounting approach
to evaluating interest rate risk tends to ignore or
downplay the effect of mismatches among medium- or long-term positions.
Contrasting with techniques that take an accounting perspective are those that focus on
estimating the interest rate sensitivity of the
economic value of a bank's on- and off-balancesheet positions. Duration analysis is one such
technique. The duration of a financial instrument
is the weighted average maturity of the instrument's total cash flows in present value terms.
When modified to reflect an instrument's discrete
compounding of interest, duration provides a
concise measure of the sensitivity of the present
A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks
value of the instrument to changing interest
rates. Specifically, modified duration can be
viewed as an elasticity that estimates the percentage change in the value of an instrument for
each percentage point change in market interest
rates. The greater the modified duration of the
instrument, the more sensitive is its value to
changing rates. (Hereafter, modified duration
will be referred to simply as duration. See the
appendix for details.)
By estimating the durations of assets, liabilities, and off-balance-sheet positions, a bank can
estimate the net duration of its portfolio and the
interest sensitivity of the present value of its net
worth. In this sense, duration analysis offers a
more comprehensive approach to measuring interest rate risk by incorporating the entire spectrum of a bank's repricing mismatches. It expands the basic maturity gap approach to assess
the effects of changes in rates on the present
value of all future earnings, not just on next
year's book earnings.
Duration analysis has several disadvantages,
however. Its accuracy as a measure of interest
rate sensitivity declines as the size of the rate
change increases. In addition, its use typically
assumes instantaneous parallel shifts in the yield
curve. Duration analysis also requires a number
of assumptions and complexities in order to
incorporate the effects of options embedded in
many bank assets, liabilities, and off-balancesheet positions. Finally, many managers have
difficulty translating duration measures into reported net interest income and other accounting
measures on which they have traditionally focused.
To overcome the limitations of both maturity
gap and duration analyses, some banks turn to
computer simulation. Sophisticated computer
models are used to simulate the effects of a wide
array of interest rate scenarios on a bank's
financial condition. Simulation models can generate measures that address both the accounting
and economic perspectives of an institution's
interest rate risk exposure. However, as with
many computer modeling techniques, simulations are highly data intensive, and the results
rely heavily on assumptions. Moreover, the effects of these assumptions on the target variable
a model assesses (for example, net interest in-
627
come) make it difficult to isolate objectively the
influence of changing interest rates. The chief
benefit of simulation models resides, to a large
degree, in revealing the sensitivity of results to
the assumptions used.
For their part, bank examiners assess an institution's approach to managing both the accounting and economic aspects of interest rate risk
during their overall review of a bank's funds
management process. Traditionally, examiners
have evaluated the stability of net interest margins and net interest income as well as the
underlying nature and apparent riskiness of the
positions a bank holds. Their review places much
importance on the adequacy of internal reporting, auditing, and information systems and on the
bank's policies and procedures for measuring
and controlling its risk. If the exposure is considered excessive given the bank's capital and expertise, the supervisor reviews the matter with
the bank's senior management and directors and
requests corrective action. If necessary, the bank
will be required to develop and implement a
formal plan for reducing the risk and for restructuring the bank's risk management and control
systems.
To date, this supervisory process has been
generally satisfactory. However, with the rising
importance of interest rate risk management, the
process is increasingly hampered by the absence
of a systematic method to monitor interest rate
risk and by the lack of quantitative standards for
adjusting capital to cover that risk. More specific
procedures for quantifying and assessing a
bank's risk, if proven valid and effective, would
supplement and strengthen the supervision of
interest rate risk. To be effective, any quantification of risk must consider the entire spectrum
of mismatches. An approach that incorporates a
monitoring system and related guidelines based
on the economic perspective is consistent with
this principle.
A SUPERVISORY APPROACH
FOR ASSESSING INTEREST RATE
RISK
Several considerations are relevant in the development of a supervisory framework for measur-
628
Federal Reserve Bulletin • August 1991
ing and evaluating interest rate risk. First, the
more than 1,200 bank failures in the past decade
demonstrate that the principal risk to commercial
banks is credit risk. Although other risks—such
as operating risk, foreign exchange risk, and
interest rate risk—can prove costly and must be
controlled, they are dominated in most cases by
the threat of credit losses on loans. This situation
could change, of course, as the nature of banking
evolves. Indeed, even in the past, interest rate
movements have produced significant losses at
some banks and have caused others to increase
risk in other areas to offset problems caused by
rate movements. Nevertheless, interest rate risk
by itself has rarely caused a commercial bank to
fail when it was in otherwise sound condition.
Credit risk, therefore, should account for most of
the industry's capital requirement.
Second, the complexity of a model's algorithms and the precision of the data collected are
often dominated by the underlying assumptions
used to derive a measure of interest rate risk.
Even the most sophisticated measures of interest
rate risk require certain assumptions that can
materially affect the results. Many of these assumptions relate to assets and liabilities with
embedded options that make their cash flows
especially difficult to predict. The interest rate
sensitivity of core deposits is just one example.
The overriding influence of such assumptions
suggests the need for caution in trying to estimate
levels of interest rate risk across the entire industry.
Third, information requirements of any supervisory or regulatory system should be held to a
necessary minimum. The dominance of credit
risk, combined with the considerable difficulties
in measuring interest rate risk, creates a tradeoff: gains in the accuracy of interest rate risk
measures must be balanced against the associated increase in costs and reporting burdens and
the degree to which the overall precision of a
capital standard that included interest rate risk
would be improved. Moreover, supervisory
agencies do not need the same level of precision
that bank management may need. Regulators are
concerned principally with identifying significant
threats to a bank's solvency; they are less concerned with small changes to the bank's reported
earnings.
These factors argue for a comparatively simple
supervisory approach to evaluating interest rate
risk. One way to achieve that simplification
would be to interpret the current risk-based
capital standard as covering "normal" levels of a
bank's interest rate risk. The assumption avoids
the need for an absolute measure of interest rate
risk and requires only a relative measure. Banks
that have more risk than the majority of banks
could be identified through an off-site screening
process, and a subsequent on-site review would
consider the specific circumstances of the identified "outlier" banks.
The measure to be used in this screening
process would need to identify only relative
orders of magnitude of interest rate risk among
commercial banks. Some underlying assumptions may be imprecise, but if used consistently,
they are not likely to mask the exposures of
banks facing the highest risk or cause truly
low-risk institutions to appear as outliers.
AN INTEREST RATE RISK
AND ITS INFORMATIONAL
MEASURE
REQUIREMENTS
A measure of interest rate risk under consideration for use in the screening process applies the
principles of duration analysis to the familiar
maturity gap report. An advantage of duration
analysis over the use of simulation is its relative
simplicity in reflecting the economic effects of
changes in rates. It has the attractive attribute of
summarizing the interest rate risk exposure of an
institution in a single number.
In brief, the risk measure under consideration
is calculated by first classifying a bank's assets,
liabilities, and off-balance-sheet positions on the
basis of their contractual maturity or repricing
dates and their cash flow characteristics. These
positions would then be weighted by risk factors
that approximate their modified durations. The
sum of these weighted positions would be the
measure of interest rate risk to be used in comparing exposures among banks.
Spread among eight maturity/repricing periods
("time bands"), the information used to derive
this measure fits on a single page (table 1 is a
sample report for a hypothetical bank). In the
interest of simplicity, only maturity/repricing
A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks
1.
629
Sample report of a hypothetical bank's positions by repricing period1
Millions of dollars
Months
Item
0-3
Assets
Interest-bearing balances due
Securities (including trading)
Amortizing
Nonamortizing
Deep-discount
Federal funds sold and securities
purchased for resale
Loans, leases, and acceptances
Amortizing
Nonamortizing
Deep-discount
Total interest-bearing assets . . .
Non-interest-bearing assets
Total assets
Liabilities
Interest-bearing deposits
NOW accounts
MMDAs
Savings
Time
Federal funds purchased and
securities sold for repurchase . . .
Other borrowed funds
Total interest-bearing liabilities ..
Non-interest-bearing liabilities
Demand deposits
Other liabilities
Total liabilities
Net worth
Years
Total
3-12
1-2
2-3
3-5
5-10
10-20
More than
20
3
15
5
115
5
2
120
75
35
10
143
338
151
10
29
81
5
25
40
2
27
5
3
45
5
107
5
5
85
8
149
149
553
1,459
50
900
83
311
60
94
60
92
120
57
5
2,913
1,294
499
198
205
289
103
23
302
3,293
1,294
499
198
205
289
103
23
302
200
358
194
1,355
60
106
58
700
30
54
29
611
30
54
29
10
30
54
29
15
20
36
19
16
10
18
10
3
10
18
10
10
18
10
259
162
2,528
259
100
1,283
40
764
3
126
3
131
4
95
12
53
38
38
464
91
139
70
70
70
46
23
23
23
3,083
1,422
834
196
201
141
76
61
61
180
380
210
Net off-balance-sheet positions
Amortizing
Nonamortizing
0
0
High-risk instruments2
2
20
5
-20
-5
2
1. Repricing period is time remaining before maturity or interest rate
adjustment.
2. Included above in nonamortizing and deep-discount securities. See discussion in text.
data are recorded; assumptions regarding coupon
rates on assets and liabilities and other features
of financial contracts are made in developing the
risk weights.
The characteristics of duration heavily influenced the structure of the repricing schedule
portrayed in table 1. One feature of duration is
that, other things equal, it is positively related to
the maturity of the underlying instrument. As
maturity extends, however, the duration of most
instruments increases at a decreasing rate so that
the durations of the longest-term instruments are
generally less than ten years (chart 1). This
pattern suggests that perhaps eight to ten time
bands with equally spaced durations could capture the interest rate sensitivity of most loan or
investment portfolios. At the same time, how-
ever, one must consider the actual repricing
periods of bank assets and liabilities; most are
heavily concentrated in the short-term. Taking
both points into account, the illustrated repricing
schedule employs eight time bands that incorporate more precision in the shorter time periods.
The nature of duration also influenced the
choice of the specific line items in table 1. The
duration of a financial instrument depends upon
the timing of its cash flows, which are a function
of maturity, coupon rate, amortization, and other
factors. The cash flows of most bonds and commercial loans consist of periodic payments of
interest only, and repayment of all principal at
maturity. Mortgages and consumer loans, in contrast, generally amortize; that is, their periodic
payments include both principal and interest.
630
Federal Reserve Bulletin • August 1991
1. Modified duration of a 10 percent semiannual
coupon instrument yielding 10 percent, by maturity
of the instrument
Modified duration
0
5
10
15
20
25
30
Maturity, years
Still other instruments, such as deep-discount
and zero coupon bonds, have most or all of their
payments of both principal and interest occur at
maturity. These distinctions alone can cause the
durations of instruments with similar maturities
to be significantly different.
For example (chart 2), a 30-year, 10 percent
coupon Treasury bond yielding 10 percent has a
duration of about 9.5 years. However, the duration of a 30-year, 10 percent amortizing mortgage
yielding 10 percent with no prepayment is about
8 years but could be as short as 4 - 6 years if
common levels of prepayment are assumed. The
duration of a 30-year zero coupon bond yielding
2. Modified duration of three instruments, each
yielding 10 percent, by maturity of instruments
Modified duration
—
Zero coupon
— 20
Coupon 1
—
Amortizing 2
rTui
0
5
i i i i i i i i i i t t 1 1 1 1 1 11
20
25
10
15
Maturity, years
II 1 1 1
30
1. Ten percent semiannual coupon.
2. Ten percent monthly amortizing instrument, assuming no prepayments.
10 percent is 28.6 years. 3 To capture the effect of
these distinctly different payment streams, the
repricing schedule categorizes all securities,
loans, and off-balance-sheet items into one of
three groups according to their inherent cash
flow structures: amortizing, nonamortizing, and
deep-discount. In the interest of simplicity and of
minimizing the burdens of collecting data, the
balances of loans and securities are generally
distributed across the time bands of table 1 using
the contractual maturity or repricing date of the
instrument. Anticipated prepayments on amortizing instruments are incorporated in the calculation of the interest rate risk weights using
standardized assumptions. The only exception to
this distribution procedure is the treatment of
tranches of collaterized mortgage obligations
(CMOs) and real estate mortgage investment
conduits (REMICs). Because of their wide diversity, such tranches are slotted according to their
current average life as calculated by bank management. 4
Core
Deposits
Time deposits and other liabilities with welldefined maturities are easily distributed across
the time bands of table 1. However, the indefinite
maturities of core deposits (demand deposits,
NOW accounts, money market deposit accounts,
and savings deposits) pose significant problems.
These deposits are usually stable but can be
withdrawn at any time. In addition, their repricing tends to lag changes in market rates and can
vary from bank to bank according to each institution's geographic location, pricing strategies,
and depositor base.
Because of their uncertain maturities, core
deposits could be placed into a single time band
or spread among several bands. If a single band is
3. The Macaulay duration of a thirty-year zero coupon
bond is indeed thirty years. Because zero coupon yields are
quoted as semiannual equivalents, their modified duration is
slightly less than maturity (see the appendix for the calculation of modified duration).
4. Most off-balance-sheet items are recorded on the repricing schedule with a double-entry system of offsetting long and
short positions. The two offsetting entries result in an aggregate net position that changes the repricing structure of the
portfolio without changing its face value.
A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks
chosen, the shortest one would be a logical
choice because the deposits are all subject to
immediate withdrawal. However, the experience
of most banks indicates that these deposits could
have longer effective maturities or repricing periods. A standard industry practice is to distribute deposits among several periods to reflect the
fact that they tend to run off over time. 5 Table 1
illustrates a possible distribution of core deposits
among the time bands, which produces an average maturity of 2.5 years. Some such standardized distribution for all banks would be used in
practice.
High-Risk Assets
The repricing schedule gives special treatment to
certain positions in highly volatile and complex
derivative instruments, such as interest-only and
principal-only stripped mortgage-backed securities and CMO residuals (shown in table 1 as
high-risk instruments). 6 Examiners would also
give them special attention during on-site examinations and would closely assess the risk they
present to an individual institution.
Derivation of Risk Weights
In the measurement system under consideration,
each recorded position is multiplied by a risk
weight that approximates its duration to produce
a risk-weighted value. Table 2 illustrates the
calculation. The top panel summarizes the positions reported in table 1. The middle panel displays the risk weights. The system employs four
sets of risk weights: one set for each of the three
types of assets (amortizing, nonamortizing, and
deep-discount) and one set for all liabilities. The
weights are calculated as the duration of an
instrument with a remaining maturity equal to the
midpoint of each time band and an assumed
coupon and market yield. For simplicity, a single
coupon is assumed for each of the three sets of
assets and another coupon is assumed for all
liabilities; these coupons are assumed to equal
market yields. For illustrative purposes, the
weights presented here are based on a 10 percent
coupon for assets and an 8 percent semiannual
coupon for liabilities.
To handle the problem posed by the prepayment options embedded in amortizing assets,
prepayment adjustments are made to the weights
for the amortizing assets. Intermediate- and longterm amortizing assets are assumed to be primarily mortgages and mortgage securities. For those
instruments, a market consensus of the rate at
which mortgages with the assumed coupon are
expected to prepay is used to construct their
weights. For example, a weight of 4.6 is used for
amortizing assets with maturities of more than
twenty years. This weight is the duration of a 10
percent, thirty-year mortgage with a remaining
term to maturity of twenty-five years and an
assumed 9 percent constant annual prepayment
rate. That rate was the average prepayment
estimate of eight U.S. securities firms as of June
1, 1991, for a Government National Mortgage
Association pass-through security with a gross
coupon of 10 percent. For amortizing assets with
remaining maturities of less than five years, a
prepayment rate of 1 percent is assumed. In
implementing the proposed measurement system, the weights for these assets can be updated
periodically to reflect changes both in coupon
assumptions and in the market consensus of
prepayment rates.
CALCULATING
5. Note that with careful selection of the time bands,
spreading the liabilities among many repricing periods will
produce the same result as putting them in one period.
6. In January 1991 the Federal Financial Institutions Examination Council (FFIEC) issued for public comment a
proposed supervisory policy statement that would, in part,
designate certain types of securities with volatile price or
other high-risk characteristics as generally unsuitable investments for depository institutions. Such securities include
stripped mortgage-backed securities, high-risk CMO
tranches, and CMO residuals. The FFIEC is expected to
announce a policy statement on this issue in the near future.
631
THE RISK
MEASURE
In the construction of the risk weights, the
estimated durations are multiplied by 0.01 to
convert them into percentages. As a result, the
weights estimate the percentage decrease in the
present value of a position that results from a 1
percentage point increase in market rates (or
the increase in value that results from a decrease in rates).
632
Federal Reserve Bulletin • August 1991
Calculation of interest rate risk for positions of a hypothetical bank 1
Millions of dollars except as noted
2.
Months
Item
Years
Total
0-3
3-12
1-2
2-3
3-5
5-10
10-20
More than
20
2,913
696
2,066
151
1,294
60
1,153
81
499
88
371
40
198
62
131
5
205
63
137
5
289
120
164
5
103
5
90
8
23
3
15
5
302
295
5
2
5 Liabilities (interest-bearing and
demand-deposit)
-2,992
-1,424
-834
-196
-201
-141
-76
-61
-61
Net off-balance-sheet positions
6 Amortizing
7 Nonamortizing
0
0
20
5
8 High-risk instruments
2
1 Interest-bearing assets
2 Amortizing
3 Nonamortizing
4 Deep-discount
-20
-5
2
Risk weights (percent)
9
10
11
Assets
Amortizing
Nonamortizing
Deep-discount
.10
.15
.15
.60
1.35
1.45
1.00
2.15
2.40
1.50
3.20
3.80
2.60
5.20
7.10
3.90
7.70
14.30
4.60
9.10
23.80
.15
12 Liabilities
.30
.60
.60
.60
1.40
2.20
3.40
5.60
8.70
10.70
Weighted positions
13 Assets
14 Liabilities
15 Off-balance-sheet positions
16
Subtotal (initial estimate
of exposure)
17 Adjustment for high-risk
instruments
18 Weighted net position
19 Duration of net worth (weighted
net position as a percent of
net worth x 100)
20 Sensitivity index (weighted net
position as a percent of
assets)
39.66
-35.14
-.20
1.91
-2.14
.03
2.73
-5.00
2.21
-2.74
-.12
3.70
-4.41
-.11
7.24
-4.81
5.38
-4.24
1.99
-5.29
14.50
-6.51
4.32
-.20
-2.27
-.64
-.82
2.42
1.13
-3.30
7.99
.48
4.80
.48
-.20
-2.27
-.64
-.82
2.42
1.13
-3.30
8.47
2.28
.15
1. See table 1. Components may not sum to totals because of rounding.
Multiplying a position by a risk weight estimates the dollar change in the present value of the
position for a 1 percentage point change in market
rates. For example, in line 1 of table 2, the $1,294
million position in interest-bearing assets maturing or repricing in less than three months is
weighted by multiplying each of its three components (lines 2-4) by their respective weights (lines
9-11) and summing. The result is a weighted value
of $1.91 million (line 13). Assuming that current
balances yield market rates, this weighted value
can be interpreted as the decline in the present
value of the recorded positions for a 1 percentage
point increase in rates (or the increase in value
that results from a decline in rates).
The summation of all weighted values for assets, liabilities, and off-balance-sheet items (lines
13-16, first column) shows that the bank's net
worth is vulnerable to rising interest rates. Overall, a 1 percentage point increase in market rates
would reduce the present value of the bank's
assets an estimated $39.66 million (line 13) and
lower the present value of its liabilities $35.14
million (line 14). The illustrated off-balance-sheet
positions offset the decline in the value of assets
by $0.2 million (line 15), producing an initial
estimate of exposure of $4.32 million (line 16) for
a 1 percentage point increase in rates.
At this point, an adjustment to the exposure is
made for the presence of high-risk instruments
(line 8) in the portfolio. The complexity of these
instruments makes them difficult to incorporate
into the proposed screening measure. To maintain a practical level of simplicity in the assess-
A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks
ment process, high-risk instruments are given the
same weight as that of deep-discount assets (line
11) in the corresponding time band and the same
sign as that of the initial estimate of exposure
(line 16). In this way, the process draws the
attention of the examiner to the high-risk position
because that position is always portrayed as
increasing the absolute value of the initial estimate of exposure. The actual interest rate risk
profile of these instruments, as well as their
appropriateness for a particular institution,
would be assessed on-site by the examiner.
In the example, the $2 million high-risk position (line 8, last column) is multiplied by the risk
weight of 23.8 percent (line 11); because the
initial estimate of exposure (line 16) is positive,
the product—$0.48 million—is added to the $4.32
million subtotal to derive the overall weighted
net position of the institution of $4.80 million
(line 18). Had the initial estimate of exposure
been negative, a negative sign would have been
assigned to the high-risk position to increase the
negative exposure of the institution. Recognition
of the potential macro- or micro-hedging capabilities of these instruments is left to the discretion
of the examiner.
The weighted net position (line 18) is a key
statistic. When divided by net worth and multiplied by 100, it represents the implied risk weight
for the bank's net worth and gives a summary
measure of interest rate risk exposure. In the
example, the estimated exposure of net worth to
a 1 percent increase in rates is 2.28 percent of the
bank's total net worth. When multiplied by 100,
this implied risk weight can be used as an estimate of the bank's duration of net worth and as a
measure of the vulnerability of the institution to
insolvency as a result of interest rate changes.
This measure of the duration of net worth is of
central importance in the screening process and
can play an important role in an examiner's
assessment of interest rate risk. 7
Considered alone, however, this estimate of the
duration of net worth might not detect those
banks that have significant mismatches but high
capital ratios. Apart from the risk to the solvency
of the bank that any asset-liability mismatch may
present, the degree of interest rate sensitivity is
also important to know. That knowledge provides
insights into the nature of the bank's business and
its managerial approach. Moreover, some banks
need relatively strong capital ratios to support
greater-than-average exposure to asset quality
problems or other banking risks. Viewing those
institutions as having low interest rate risk simply
because they have high capital ratios could be
inappropriate. Expressing the weighted net position as a percent of total assets (line 20) provides
a second measure, called the "sensitivity index,"
which focuses directly on the degree of sensitivity
of the bank's positions to changing interest rates
(0.15 percent in the example).
Both risk measures have a parallel in the
analysis of bank profitability. That is, using both
the duration of net worth and the sensitivity
index to evaluate a bank's interest rate risk could
be compared to using return on equity (ROE) and
return on assets (ROA) to evaluate its profitability. The ROE and ROA compare reported earnings with their respective denominators. The two
interest rate risk measures compare estimates of
the expected change in the present value of
future earnings (which is the change in net worth)
with those same denominators: The duration of
net worth indicates the interest rate sensitivity
relative to equity; the sensitivity index indicates
the interest rate sensitivity relative to the asset
base. Combined, the two interest rate risk measures enable examiners to quantify the rate sensitivity of a bank's on- and off-balance-sheet
positions and assess its ability to absorb losses
that the mismatches might produce.
IDENTIFYING
7. The use of this measure in screening banks may identify
some institutions as having high interest rate risk simply
because their capital ratios were low; although that assessment would not be incorrect, interest rate risk is most likely
to be overwhelmed by other problems that already are the
focus of supervisory attention.
633
OUTLIERS
As described above, this approach recognizes
that a certain amount of interest rate risk is
inherent in banking. Consequently supervisory
attention would be directed at those banks identified as having relatively high risk—outliers.
Using an outlier approach, however, requires
634
Federal Reserve Bulletin • August 1991
information about the distributions of both the
sensitivity index and duration of net worth for
the industry.
The data to develop these distributions as accurately as would be required are not available
from financial reports currently filed with regulatory agencies. Maturity and repricing data, for
example, are reported for only four time bands,
and the longest period contains all positions repricing in more than five years. These constraints,
and similar ones regarding information about the
cash-flow structure of assets, require a number of
assumptions in order to use existing data. To
construct an estimate, we have used existing call
report data to illustrate how the distributions
might look, subject to the above caveats, and how
outliers could be identified.
Outliers would be defined on the basis of both
their sensitivity index and their durations of net
worth. For both measures, outliers would be
taken from both tails of an industry distribution
curve to recognize exposures to rising and declining rates. The riskiest 25 percent, for example, could be considered outliers.
In constructing a distribution of the industry's
exposure to changing interest rates, the placement
of core deposits is of primary importance. When
core deposits are spread to produce a weighted
average maturity of 2.5 years, the median institution appears to be virtually balanced in terms of its
sensitivity index (chart 3, middle curve).
Placing core deposits at an average maturity of
either 1.5 months or 5 years yields significantly
different results and illustrates the sensitivity of
the measure to changes in the selected maturity
of deposits. A short-term placement sharply increases the apparent exposure of the industry to
rising interest rates; placing the deposits at 5
years would indicate that the industry is highly
exposed to declining rates. These distributions,
while only illustrative, suggest that viewing core
deposits as having a maturity of two to three
years is not only operationally useful in constructing a measurement system but is also consistent with a perception that the large majority
of commercial banks do not have high exposures
to interest rate risk.
In the middle distribution of chart 3, the median bank has an estimated sensitivity index of
0.02 percent. A cut-off point around 0.6-0.7
3. S e n s i t i v i t y i n d e x o f interest rate risk, e s t i m a t e d
distributions for the U . S . banking industry, by
assumed maturity of core deposits,
D e c e m b e r 3 1 , 1990 1
Percent of banks
Sensitivity index (percent)
1. Sensitivity index is the weighted net position as a percent of assets
(see table 2). Measurement covers 12,127 commercial banks. Shaded
areas represent the roughly 25 percent of banks most vulnerable to
rising or falling rates assuming an average maturity for core deposits
of 2.5 years. Preliminary measure using existing call report data
and simplifying assumptions.
percent on each tail of the distribution would
capture approximately 25 percent of the banks:
about 16 percent that are exposed to rising interest rates (those on the right side in chart 3) plus
another 9 percent that are exposed to declining
rates (those on the left).
A similar approach could be used to identify
outliers on the basis of their durations of net
worth. Once again, the median bank appears to
be almost balanced, with 0.23 percent of its
equity at risk from a 1 percentage point increase
in rates (chart 4). Outliers could be defined, for
example, as those institutions with roughly 7-8
percent or more of their net worth at risk. That
cut-off would capture approximately 25 percent
of the industry: about 15 percent from the banks
with relatively high exposure to rising rates and
another 10 percent from those with a large exposure to declining rates. These 25 percent would
then be compared with the outliers identified
with the sensitivity index to determine which
institutions appear to warrant the most concern.
As with many elements of the measure, the
identification of outliers must be carefully monitored and updated as conditions change. If the
industry became much more cautious, for example, fewer institutions would be identified as outliers. Conversely, more banks would become outliers if the overall exposure of the industry grew.
A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks
4. Duration of net worth, estimated distribution for
the U.S. banking industry, December 31, 1990 1
Percent of banks
Exposure to falling interest rates
Exposure to rising interest rates
I
—
—
/
—50
\
—40
\
—
—
—
30
y
20
10
]
—30
\
—20
V
- 0+
— 10
10
20
30
Duration of net worth
1. Duration of net worth is the weighted net position as a percent
of net worth x 100 (see table 2). Measurement covers 12,127 commercial
banks. Shaded areas represent the roughly 25 percent of banks most
vulnerable to rising or falling rates assuming an average maturity for
core deposits of 2.5 years. Preliminary measure using existing call report
data and simplifying assumptions.
The distributions illustrated in charts 3 and 4
are estimates based on the limited data currently
reported by the banking industry and are shown
here not as empirical evidence but only for heuristic purposes. No information is available about
the repricing periods of the industry's off-balancesheet positions; much of the placement of balances among time bands was estimated; and core
deposits were distributed uniformly, and thus
somewhat arbitrarily, for all banks.
APPLYING THE RISK
No firm conclusions would be based on these
measures alone. Examiners would need to confirm or reject the measure based on their assessment of many of the elements they currently
review: the bank's own policies, controls, information systems, and risk-measurement techniques. Examiners would continue to apply significant flexibility in their consideration of the
conditions at each bank. In particular, nothing in
the approach described here would preclude examiners from employing other relevant techniques based on the bank's own internal reports,
systems, and controls regarding interest rate risk.
Nevertheless, the approach can provide examiners with a reference point for evaluating the
riskiness of a bank's positions and guidelines for
evaluating the adequacy of its capital. Also,
bankers may find the comparison of their banks
with the industry useful. The measurements require no more than simple spreadsheet calculations and thus can be performed on-site to test
the effect of different assumptions, such as those
regarding the maturity of core deposits.
The more sophisticated simulation analyses
conducted by some banks could offer further
insights into the likely losses (or gains) under a
variety of scenarios. Combined, these measures
and techniques could lead to reasonably firm
conclusions about the bank's overall exposure to
interest rate risk and what corrective steps may be
needed.
MEASURE
Bank supervision entails both off-site surveillance
and on-site examinations. If implemented, the
procedure described here for measuring interest
rate risk would be another tool to help bank
supervisors screen banks off-site to identify those
with relatively high levels of measured interest
rate risk. Supervisors could then take appropriate
follow-up actions, such as requesting additional
information from the bank or considering the
apparent risk when planning future examinations.
Once on-site, examiners could use the interest
rate risk measures as an indicator of how they
might allocate their time and resources. Institutions with apparently high interest rate risk would
be more likely to receive more detailed reviews of
their asset and liability management procedures
than would those exhibiting lower risk.
635
CONCLUSION
The measurement approach described above represents the first phase of a supervisory program
for evaluating interest rate risk in commercial
banks. These guidelines and principles will be
further developed and field-tested before their
formal incorporation in examination procedures.
Limited field testing to date indicates that this
approach can be used to identify institutions that
may be exposed to high levels of interest rate risk
and to establish an initial reference point for
examiners in evaluating a bank's management of
its investment and funding activities. At the same
time, it allows examiners significant flexibility to
consider many other factors that are important to
assessing this aspect of the bank's business, such
636
Federal Reserve Bulletin • August 1991
as its policies, procedures, controls, and operating systems.
The measurement and management of interest rate risk is a complex topic but one that may
be of growing importance to banks and bank
supervisors. Fundamentally, the management
of interest rate risk and the allocation of capital
to support that risk is a bank function that, like
others, must be conducted in a reasoned and
prudent manner. In its consideration of this
risk, the approach described here recognizes
the limits to precision and the reporting cost to
banks. A measurement system based on relative levels of exposure that gives examiners
sufficient flexibility appears to avoid many of
the disadvantages of other techniques.
APPENDIX:
DURATION
Duration is a widely accepted measure of a
financial instrument's interest rate risk. In its
most basic form, "Macaulay duration," it is a
measure of the effective maturity of an instrument. Specifically, duration is the weighted
average maturity of an instrument's cash flows,
where the present values of the cash flows serve
as the weights. The Macaulay duration of an
instrument can be calculated by first multiplying the time until the receipt of each cash flow
by the ratio of the present value of that cash
flow to the instrument's total present value. The
sum of these weighted time periods is the
Macaulay duration of the instrument. Mathematically,
n
Macaulay duration = ^
t= 1
PV(CF)
- x t,
TPV
TPV = The total present value of all future
cash flows (including accrued interest)
n = The number of periods remaining until
maturity.
Because a zero coupon instrument has only
one cash flow, its Macaulay duration is equal to
its maturity. In contrast, instruments with periodic cash flows, such as coupon bonds and
amortizing mortgages, have durations smaller
than their maturity.
Duration is measured in units of time. Relative
to the more traditional measure of term to maturity, duration represents a significantly more sophisticated measure of the effective life of a financial instrument. Moreover, when modified to
reflect an instrument's discrete compounding of
interest, duration measures the instrument's price
volatility relative to changes in market yields.
Modified duration is calculated as follows:
Modified duration
=
Macaulay
CFt = The cash flow received in period t
PV = The present value function 1/(1 + R)',
where R is the per-period internal rate
of return of the instrument
1 +R/c
where
R = Per-period internal rate of return of the
instrument
c = Number of times per period that interest
is compounded (for example, 2 for a semiannual coupon bond when R is an annual
rate).
Modified duration is the price elasticity of an
instrument with respect to changes in rates. It
represents the percentage change in the present
value of a financial instrument for a given percentage point change in market yields; this relationship is defined as follows:
where
t = The number of periods remaining until
the receipt of cash flow CFt
duration
Percentage
change =
in price
Modified
duration
basis point
change
in yield
100
For example, with a modified duration of 10, a bond
changes 10 percent in price for every 100 basis point
change in the market yield of that bond.
In the above equation, the inverse relationship
between the price of a bond and its market yield
A Method for Evaluating Interest Rate Risk in U.S. Commercial Banks
is established by the minus sign preceding the
term for modified duration. Modified duration
acts as a multiplier in translating the effect of
changing interest rates on the present value of an
instrument: The larger the duration, the greater
the effect for a given change in interest rates; and
for a given duration, large changes in market
rates lead to large percentage changes in price.
Therefore, to the extent that the riskiness of an
instrument is equated with its price sensitivity,
modified duration acts as a measure of interest
rate risk.
Modified duration provides a standard measure of price sensitivity for different types of
instruments. The standardization allows the duration of a portfolio to be calculated as the
weighted average of the durations of its individual components. Because a financial institution
can be thought of as a portfolio of assets and
liabilities, the duration of an institution's net
637
worth is simply a weighted average of the durations of assets and liabilities. Therefore, by
weighting assets, liabilities, and off-balancesheet positions by their estimated durations, a
single measure of interest rate risk exposure can
be derived.
Modified duration is a powerful concept for
measuring interest rate risk, but it does have
several limitations. The most noteworthy is that
the accuracy of duration depends on the assumption of small, instantaneous, parallel shifts in the
yield curve. Errors in its use as a measure of
interest rate risk increase as actual changes in
market yields diverge from these assumptions. 8 •
8. Further information on duration is available in Living-
ston G. Douglas, Bond Risk Analysis: A Guide to Duration
and Convexity (New York: New York Institute of Finance,
1990); and Gerald O. Bierwag, Duration Analysis: Managing
Interest Rate Risk (Cambridge, Mass.: Ballinger, 1987).
638
Industrial Production and Capacity Utilization
Released for publication on June 14
Industrial production increased 0.5 percent in May
after an upward revised gain of 0.3 percent in April.
Output of motor vehicles and parts continued to rise
in May, and utilities production, boosted by unusually warm weather in May, also contributed to the
overall gain. Excluding motor vehicles and parts
and utilities, industrial production was little changed
in both May and April. Total industrial capacity
utilization in May increased 0.2 percentage point to
78.7 percent, after a revised increase of 0.1 percent
in April. At 105.8 percent of its 1987 annual average,
total industrial production in May was 3.3 percent
below its year-ago level.
In market groups, output of consumer goods
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
5
+
0
5
+
0
5
|
J
1986
1987
1988
1989
1990
1986
1991
1987
L
1988
1989
1990
1991
Capacity and industrial production
Ratio scale, 1987 production = 100
Ratio scale, 1987 production = 100
_
— Manufacturing
Capacity
-—
~
-
/
i
i
i
Production
i
i
i
i
i
—
i
i
i
i
Percent of capacity
Manufacturing
Total industry
—
—
90
Utilization
Utilization
\ -
V . - 80
—
70
i
1979
i
i
1981
i
1
1983
1985
1987
All series are seasonally adjusted. Latest series, May.
1989
1
1991
1
1979
1
1981
1
1
1983
1
1
1985
1
1
1987
1
1
1989
1
1
1991
639
1987 = 100
Percentage change from preceding month
1991
1991
Industrial production
Feb.
r
Mar.
Percentage
change,
May 1990
to
May 1991
r
Apr.'
May
Feb.'
Mar.'
Apr.r
Mayp
105.8
-.9
-.6
.3
.5
-3.3
-.8
-.6
-.1
Total index
105.7
105.0
105.3
Previous estimates
105.7
105.0
105.1
Major market groups
Products, total
106.9
106.6
106.9
107.3
-.8
-.3
-.3
.4
-3.0
Consumer goods
Business equipment
Construction supplies
Materials
104.7
120.6
96.4
103.9
104.9
120.3
94.2
102.6
105.5
121.0
95.3
103.0
106.3
120.6
95.8
103.6
-.8
-.9
-1.3
-.9
.1
-.2
-2.3
-1.2
.6
.6
1.2
-.4
.8
-.3
.5
.6
-1.1
-2.4
-9.2
-3.8
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
106.1
106.1
106.0
102.9
104.6
105.2
105.0
105.4
101.6
106.3
105.7
105.9
105.5
100.1
106.4
105.9
106.1
105.7
100.0
110.6
-.9
-1.0
-.8
1.1
-2.8
-.8
-1.1
-.6
-1.3
1.7
.5
.8
.1
-1.5
.1
.2
.2
.2
-.1
3.9
-4.0
-5.8
-1.6
-2.2
3.3
MayF
Capacity
growth,
May 1990
to
May 1991
Percent of capacity
Capacity utilization
Average,
1967-90
Low,
1982
High,
1988-89
Total industry
82.2
71.8
Manufacturing
Advanced processing
Primary processing .
Mining
Utilities
81.5
81.1
82.4
87.4
86.8
70.0
71.4
66.8
80.6
76.2
1991
Mar.
May
Feb.'
85.0
83.4
79.1
78.4
78.5
78.7
2.6
85.1
83.6
89.0
87.2
92.3
82.9
82.1
85.0
88.9
84.6
78.0
77.4
79.5
90.4
81.6
77.2
76.8
77.9
89.1
82.9
77.4
77.1
78.1
87.7
82.9
77.3
76.9
78.3
87.5
86.1
2.9
3.2
2.2
-.6
1.5
r Revised,
p Preliminary.
excluding motor vehicles and electricity for residential use edged up in April and May, owing mainly to
gains in production of durable goods such as
appliances, carpeting, and furniture; production of
most other consumer goods has changed little in
recent months. Output of business equipment other
than autos and trucks declined 0.6 percent in May
and has fallen more than 3 percent since its peak last
September; declines over the past eight months have
been most significant in industrial equipment.
Production of construction supplies increased
0.5 percent in May after a rise of 1.2 percent in April
but was still more than 9 percent below its level of a
year earlier. Among materials, output of durables
increased 0.5 percent further in May, reflecting
increases in output of parts for consumer goods,
particularly those used by the motor vehicle industry.
Production of basic metals, mainly steel, and
equipment parts remained weak. Output of nondurable goods materials was little changed for the
second month, as gains in textiles were about offset
by decreases in paper. Output of energy materials
rose 1.4 percent in May, as electricity generation
1990
Apr.
NOTE. Indexes are seasonally adjusted.
surged in response to increased demand for air
conditioning.
In industry groups, output in manufacturing
increased 0.2 percent in May; excluding motor
vehicles and parts, manufacturing output was
unchanged from April. Utilization for manufacturing as a whole edged down 0.1 percentage point in
May. The operating rate for primary processing
industries picked up a bit in May, while the rate for
advanced processing declined. Output at utilities
increased 3.9 percent in May, and production at
mines was little changed.
Among producers of nondurable goods, production of both textiles and apparel rose notably in April
and May. Textile output ha s now increased for four
consecutive months. An increase of 2 percent in
petroleum refining in May also helped boost production of nondurables. In contrast, paper production
fell 0.9 percent in May, continuing the decline that
began last fall.
Output of durable goods: increased in both April
and May, with significant gains in motor vehicles
and parts and industries that produce construction
640
Federal Reserve Bulletin • August 1991
materials, mainly lumber, and stone, clay, and glass
products; in addition, industries associated with
these materials, such as appliances, furniture, and
fabricated metals, also have increased during the
past two months. Production of primary metals was
little changed in April and May, after having fallen
sharply during the fall and winter. On the negative
side, output of both nonelectrical machinery and
instruments continue to decline, falling more than
Vi percent in May.
641
Statements to the Congress
Statement submitted by the Board of Governors
of the Federal Reserve System to the Subcommittee on Policy Research and Insurance of the
Committee on Banking, Finance and Urban Affairs, U.S. House of Representatives, June 6,
1991.
I would like to thank you for the opportunity to
discuss the issues of lender liability under the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA)
as well as the solutions to this problem proposed
by H.R. 14550 and S.651. The issues presented in
this legislation are complex, and I commend the
committee for undertaking to explore them fully
at this time.
As an initial matter, we strongly support the
purposes of CERCLA. We all wish to live in a
clean and healthy environment; however, the
costs of achieving this goal are substantial. The
Environmental Protection Agency has estimated
that the cleanup of the 1,200 priority sites alone
may exceed $30 billion. The General Accounting
Office has estimated that as many as 425,000 sites
may need investigation and possibly cleanup. In
light of these potential costs, we have become
concerned over the effect of recent court interpretations of CERCLA that have held lenders
liable for the cost of the cleanup of hazardous
substances found on a borrower's property. Despite an exemption in CERCLA designed to
shield lenders from CERCLA liability, these
decisions, in effect, place lenders in the role of
policing the hazardous substance disposal activities of their borrowers. Lenders are often ill
equipped to perform this function, and imposition of unlimited liability can be expected to
reduce their willingness to provide credit to
prospective borrowers in any business or area
when there is a risk of CERCLA liability. A
reduction in the availability of credit threatens
the viability of these businesses and their ability
to contribute to the cleanup of the environment.
Consequently, we believe that the imposition of
cleanup liability on lenders is counterproductive to long-term environmental goals and we
support the objectives of H.R. 1450 and S.651 to
limit lender liability for cleanup costs under
CERCLA.
Under CERCLA, the owner or operator of a
property may be held liable for the entire cost of
cleaning up hazardous substances found on a
site, regardless of whether the owner or operator
is responsible for the release of the hazardous
substance. By its terms, CERCLA generally
excludes secured lenders from this liability; however, recent court decisions have largely eroded
the protection furnished by this exclusion.
Courts have imposed lender liability under
CERCLA when a lender secured by property
forecloses on property or has "participated in the
management" of its borrowers by virtue of the
rights reserved by the lender under its lending
and security agreements with the borrower. With
the average projected cost of remedying contamination at sites on the National Priority List
climbing to more than $25 million dollars, liability in CERCLA cases may far exceed the amount
of the lender's original loan.
Because of the erosion of the secured lender
exemption, lenders to borrowers in businesses
that use or produce hazardous substances are
faced with a dilemma. Lenders can actively
attempt to police hazardous substance disposal
by their borrowers, risking being found to have
"participated in the management" of the borrower and therefore liable for potential cleanup
costs, or they can ignore the borrowers's activities and risk nonpayment of the loan. Further,
these court decisions may discourage even normal loan collection practices out of concern that
they will be found to constitute management.
Lenders already have adequate incentives to
encourage their borrowers to engage in environmentally safe practices so that these borrowers
will avoid CERCLA liability. However, lenders
642
Federal Reserve Bulletin • August 1991
do not generally have the technical expertise to
police the environmental aspects of a borrower's
operations. Covenants in borrowing agreements
that give lenders a voice in their borrower's
activities are designed to ensure that the borrower acts prudently in financial matters and
places a high priority on the repayment of the
debt, not to permit the lender to substitute its
judgment for the borrower's in technical aspects
of the borrower's business.
Imposing affirmative liability for environmental cleanup costs on lenders because of the
exercise of such covenants is likely to do little to
prevent the pollution of the environment but is
likely to interfere with the availability of credit to
even prudent businesses that use hazardous substances, such as farmers, dry cleaners, service
stations, and chemical and fertilizer producers.
Credit is a necessity for the operation of commercial enterprises. Lenders already reluctant to
extend credit to borrowers that are subject to a
high risk of CERCLA liability will only be further
deterred by the prospect of affirmative lender
liability under CERCLA. Increased lender reluctance to provide funds to industries or areas that
present a risk of CERCLA liability is likely to
have a significant adverse effect on these industries or areas.
Lack of credit in these cases may also frustrate
environmental interests. Companies that are unable to continue operating because they cannot
obtain credit will not be able to make any contribution to the environmental cleanup costs.
Consequently, the current thrust of court decisions imposing lender liability under CERCLA
may actually frustrate the environmental goals of
CERCLA and increase the cleanup costs that
must be borne by the government.
While the Board does not have comprehensive
data on lender losses due to CERCLA liability to
date, clearly significant losses have already occurred. More important to the future is that data
from the Federal Reserve Banks suggest that
CERCLA liability is, in fact, affecting the availability of credit. Banks are developing environmental guidelines that often indicate that the
lender should decline to make loans collateralized by real property when past uses may have
resulted in contamination of the property or to
make loans to businesses that may use or pro-
duce hazardous substances in their operations.
In some cases it appears that banks are declining
to make loans regardless of the safety of a
borrower's handling of hazardous substances.
In addition, banks are examining property
carefully before they foreclose on it and are
sometimes walking away from their collateral to
avoid environmental liability. This problem appears to be widespread and is not confined to
industrial areas of the country or to particular
types of businesses. Virtually every Federal Reserve Bank reported instances when lenders had
walked away from collateral, even when the
collateral was the only source of repayment for
the loan. The experience of walking away from
collateral to avoid CERCLA liability is likely to
cause lenders to become increasingly cautious
about loans to many businesses or areas, even if
no actual liability has been incurred under
CERCLA.
In carrying out its examination and supervisory activities, the Federal Reserve expects
banking organizations to have policies and procedures in place to monitor and control the risks
to which banking organizations are exposed.
However, banks have experienced difficulty in
determining the appropriate protective practices
to minimize the potential for CERCLA liability.
Lending institutions are at risk for hazardous
waste liability whether they have ignored hazardous waste issues altogether or have actively
attempted to monitor the safety of their borrowers' operations. The Board currently is developing guidelines for bank examiners to follow in
determining whether a lending institution has
adopted appropriate procedures and safeguards
to recognize potential hazardous substance problems. Unfortunately, given the current state of
the law, there is no clear guidance that we can
provide as to how an institution can extend credit
and still avoid liability.
Besides private sector liability, CERCLA
raises significant issues concerning the funding of
government operations. Many lending institutions that are potentially subject to CERCLA
liability are federally insured through the bank
and thrift insurance funds. Unlimited liability
under CERCLA poses a potential threat to the
capital and solvency of these institutions and in
some cases could result in the costs of hazardous
Statements to the Congress
substance removal being borne by the bank and
thrift insurance funds. We understand that the
Federal Deposit Insurance Corporation (FDIC)
has already incurred losses as a result of
CERCLA.
Further, many agencies and instrumentalities
of the federal government, such as Federal Reserve Banks, Federal Home Loan Banks, the
Farm Credit System, and the Small Business
Administration, are also lenders. Lender liability
presents a threat to the ability of these organizations to carry out the missions assigned to them
by the Congress. The Federal Reserve Banks
fulfill important functions in providing adjustment credit and acting as a lender of last resort
for depository institutions. In acting as lender of
last resort, a Federal Reserve Bank may advance
funds to a depository institution collateralized by
the institution's loans, which may, in turn, be
secured by real property. Should the institution
fail, the FDIC, as receiver, would likely acquire
the loans from the Reserve Bank and would be
left holding the loans. In these cases, the FDIC
would be exposed to lender liability to the same
extent as the original lender.
It is not appropriate to shift the risks and
expenses of environmental cleanup costs from
the funds allocated by the Congress for this
purpose to the bank and thrift insurance funds or
to governmental instrumentalities such as the
Federal Reserve Banks. Federal agencies and
instrumentalities have been charged by the Congress with particular responsibilities. Their funds
are intended to be used to fulfill these responsibilities, not to cover the costs of hazardous
substance removal.
Any legislation to limit the application of
CERCLA liability should apply to all lenders and
should strive to delineate clearly those activities
that will lead to CERCLA liability. H.R. 1450 and
S.651 present different approaches for reducing
potential lender liability problems under
CERCLA for both the private and public sectors.
While each bill has strong points, both bills leave
unanswered questions as to what duties, if any, a
lender must perform to preserve the limitation on
its liability.
H.R. 1450 would amend CERCLA to require
that a lender exercise "actual, direct, and continual or recurrent exercise of managerial con-
643
trol" that "materially divests the borrower,
debtor, or obligor of such control" to be held
liable for cleanup costs. Lenders with a security
interest in property or lenders that had acquired
title to the property through foreclosure or other
means primarily for the purpose of protecting a
security interest would not be subject to liability.
These limitations on liability would be available
broadly to all lenders and would protect governmental as well as private lenders. However,
under H.R. 1450 it is not clear whether lenders,
either private or public, would be required to
perform an environmental evaluation to avoid
liability. Lenders that caused or exacerbated the
release of hazardous substances would continue
to be liable for costs resulting from their actions.
In addition, lenders would still run the risk of
nonpayment from borrowers that incurred
CERCLA liability.
Rather than amend CERCLA directly, S.651
would amend the Federal Deposit Insurance Act
to limit the liability of mortgage lenders and
federally insured depository institutions for the
cost of hazardous substance removal. It appears
that the liability of these lenders would be limited
to the amount of the loan made by the lender or
the actual benefit received by the lender from the
cleanup of the property, up to the amount of the
loan. S.651 also provides that mortgage lenders
or insured depository institutions will not be
liable for cleanup costs based on their unexercised capacity to influence the operations of a
borrower. Under S.651, however, a lender would
lose all benefit of the exemption if it caused or
contributed to the release of hazardous wastes,
and it is not clear under what circumstances a
lender would be considered to have caused or
contributed to a release or what actions a lender
must take to prevent a release. This stringent
standard, juxtaposed against the severe implications of being found responsible, could be a
serious inhibition to a lender's willingness to
lend.
S.651 addresses the concerns of public sector
lenders directly and provides protection for public sector lenders by excluding them from liability
for hazardous substance removal, by extending
that immunity to the next purchaser of the property, and by exempting property acquired from
CERCLA liens. These provisions would improve
644
Federal Reserve Bulletin • August 1991
the ability of public sector lenders to obtain
repayment of their loans and would limit the
extent to which the funds of these lenders are
diverted to pay for hazardous substance cleanup
costs.
In closing, it is in the interests of the financial
and environmental communities to find a balanced solution to the lender liability issue. If this
issue is not resolved, we risk a reduction in the
availability of credit to any industry, area, or
borrower that appears to present a risk of liability
for hazardous substance removal. We also risk
imposing additional costs on the bank and thrift
insurance funds to pay for environmental
cleanup costs that would otherwise be met from
the funds allocated by the Congress for that
purpose. In light of these considerations, we
believe that the environmental goals of CERCLA
will be furthered rather than hampered by the
provisions of H.R. 1450 or S.651.
•
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Committee on Banking, Finance and
Urban Affairs, U.S. House of Representatives,
June 11, 1991.
conducted in branches and agencies, which alone
had aggregate assets of $626 billion, or 18 percent
of total banking assets in this country, as of the
end of 1990.
The Board is concerned that the framework for
supervising the U.S. operations of foreign banks
is not as strong as it could be. The discovery of
fraud and other criminal activity at a small number of foreign banks has convinced us of the need
to direct greater attention to these operations on
a coordinated basis. For this reason and because
we have a strong interest in ensuring the soundness and integrity of the U.S. banking system,
the Board has proposed the legislation being
considered here today.
To this end, the legislative proposal would
establish uniform federal standards for entry and
expansion of foreign banks in the United States,
including, importantly, a requirement of consolidated home country supervision as a prerequisite for entry into the United States and the
application of the comparable financial, managerial, and operational standards that govern U.S.
banks. The proposal would also grant regulators
the power to terminate the activities of a foreign
bank that is engaging in illegal, unsafe, or unsound practices and provide regulators with the
information-gathering tools necessary to carry
out their supervisory responsibilities. The proposal would clarify the Board's examination authority over foreign banks by providing that it
may coordinate examinations of all U.S. offices
of a foreign bank.
At the same time, my colleagues and I believe
that, with proper supervision and subject to
appropriate regulatory standards, foreign banks
should be able to continue to participate in the
I am pleased to have the opportunity to appear
before this committee today in support of the
Foreign Bank Supervision Enhancement Act,
which is designed to strengthen the supervision
and regulation of foreign banks operating in the
United States. As you have requested, I will also
comment on section 231 of the Financial Institutions Safety and Consumer Choice Act of 1991
(H.R. 15015), the banking reform proposal, which
deals with proposed restrictions on activities of
foreign banks in the United States.
Each of these legislative proposals has farreaching significance for the U.S. financial system. The liquidity and depth of the U.S. banking
environment have, to a great extent, been made
possible by the participation of foreign banks.
The active presence of foreign banks in this
country has helped to assure the continued importance of the United States in international
financial markets and has contributed to the
growth of banking, including international banking, in several U.S. cities. Of equal significance,
foreign banks have been a substantial source of
credit for all types of American businesses in all
parts of this country.
It is clear that foreign banks occupy an important and growing place among banking institutions in the United States. At the end of 1990,
there were 290 foreign banks with operations in
the United States having aggregate assets of $800
billion. The great bulk of these operations are
Statements to the Congress
U.S. market through branch operations. Consequently, the Board has serious concerns about
section 231 of the banking reform legislation,
which requires that such branches be closed as a
prerequisite to conducting new financial activities.
I shall first discuss the Foreign Bank Supervision Enhancement Act and then turn to section
231 of the banking reform legislation, H.R. 1505.
FOREIGN BANK
ENHANCEMENT
SUPERVISION
ACT
As I have already stated, foreign bank operations
in this country are large and growing, accounting
now for approximately 21 percent of U.S. banking assets. The criminal activity that was discovered in several foreign banks over the past several years has convinced the Board that there
needs to be greater, more comprehensive, and
better-coordinated attention paid by state and
federal regulators to the U.S. offices of these
institutions. There is no evidence at this time that
the problems are widespread in relation to the
overall presence of foreign banks in the United
States; nevertheless, recent experience in other
areas of the financial services industry demonstrates that early warning signs of trouble should
not be ignored.
As a result of these recent supervisory problems, the Board conducted a review to determine
whether the existing statutory framework governing foreign bank operations in this country is
adequate. From that review, we have developed
and recommended for enactment the Foreign
Bank Supervision Enhancement Act.
The legislation is not intended to impose
sweeping new requirements or to alter radically
the framework governing foreign bank operations in the United States. Rather, its purpose is
to build upon and complement the existing supervisory structure to fill those regulatory and
supervisory gaps that experience has demonstrated exist.
The Board has proposed this legislation not
only to provide better tools to deal with potential
illegal activity but also because of our continuing
strong interest in ensuring that all banking institutions in the United States observe the same regulatory and supervisory standards and operate in a
645
safe and sound manner. The proposal is also
intended to ensure that the banking policies established by the Congress are implemented in a fair
and uniform manner with respect to all entities
conducting a banking business in the United
States. It is important to note at this point that the
legislative proposal will not foreclose every problem that could arise with a foreign bank. Fraud is
extremely hard for any regulatory authority to
detect, especially when bank employees actively
conspire to prevent official scrutiny or when all
relevant information relating to the fraudulent
activity is maintained outside the United States.
The legislative proposal is intended to minimize
the potential for illegal activities by creating a bar
to entry by questionable organizations and to
provide as many regulatory and supervisory tools
as possible to investigate and enforce compliance
with U.S. laws and regulations.
UNIFORM STANDARDS FOR FINANCIAL
AND MANAGERIAL
STRENGTH
The Board recommends that the law establish
clear and definite standards that would apply to
any foreign institution seeking entry into the
United States. Under the current system, a state
may allow entry by a foreign bank based on its
own criteria, which could differ substantially from
the criteria applied by another state. There should
be a common set of minimum standards that all
applicants must meet to be participants in the
U.S. banking market. These standards must be
designed to continue to permit strong international banks to do business in the United States
but to deny entry to weakly capitalized, poorly
managed, or inadequately supervised institutions.
The proposal would not in any way replace or
substitute for state regulatory approval of foreign
bank branches and agencies. A state must still
license a branch or agency of a foreign bank and
must apply its own standards to the establishment
and ongoing operation of the office, including
standards that may be more stringent or rigorous
than those proposed here. The proposal establishes a minimum standard that all foreign banks
operating in the United States must meet because
of the significance and impact of these institutions
on our nation's banking system. For these rea-
646
Federal Reserve Bulletin • August 1991
sons, the Board believes that foreign banks should
meet the standards of financial responsibility comparable to those applied to U.S. banks, including
the standards that would be applied to a U.S.
bank operating internationally.
CONSOLIDATED
SUPERVISION
My colleagues and I believe that it is critical that
any foreign bank entrant be subject to comprehensive supervision on a consolidated basis by a
home country regulator. When an institution
operates internationally in separate jurisdictions
with differing laws and regulations, consolidated
review and supervision is the only means of
determining its financial condition and the extent
and lawfulness of its operations. Comprehensive,
consolidated regulation has in recent years become a necessary response to the globalization of
financial markets.
This standard of comprehensive and consolidated supervision was not a generally accepted
principle of international bank supervision at the
time the International Banking Act was adopted,
as it is today, and became so only after experience demonstrated the problems associated with
fragmented review of an international bank's
operations. The Board recommends incorporation of this standard into the laws governing
foreign banks operating in the United States.
ACCESS TO INFORMATION
The Board also recommends that the uniform
standards include a requirement that a foreign
bank agree to supply information on its activities
and operations that a regulatory agency finds to
be necessary to determine whether the bank is in
compliance with U.S. banking requirements. Recent experience has demonstrated the critical
importance of agency access to this type of
information. Without this type of agreement, it is
difficult for the agency to detect and enforce
compliance with the banking laws. The agency is
in the position of having to use its enforcement
authority to attempt to gain access to information
that the bank may be trying deliberately to shield
by holding it offshore.
The provision is not intended to grant authority to the banking agencies for "fishing expeditions" or to allow the exercise of extraterritorial
jurisdiction over the non-U.S. operations of the
foreign bank or to provide access to the records
of customers unrelated to the bank's compliance
with U.S. banking laws. Rather, the provision
seeks to confirm that a foreign bank that chooses
to participate in the U.S. market, with all attendant privileges and responsibilities, will also
make available to banking regulators information
that is directly relevant to determining and enforcing the bank's compliance with U.S. banking
requirements.
REQUIREMENT FOR PRIOR
REVIEW
As a means of implementing these standards, we
recommend that the Congress adopt a requirement of prior federal review that applies these
standards to the proposed entry by a foreign bank
through any form of banking office, whether a
state or federally licensed office or a commercial
lending company. The International Banking Act
gave the Board certain responsibilities for the
supervision of foreign banks in the United States,
but no federal agency has a voice in deciding
whether individual institutions seeking to enter
U.S. markets through state branches, agencies, or
commercial lending companies meet the standards generally applicable to banking organizations in this country. As the Board is the agency
charged with responsibility for the overall supervision of foreign banks in this country, it is our
view that the Board should have a role in deciding
whether the foreign bank may establish or maintain a U.S. banking presence. This practice applies in other areas of federal bank regulation,
and, given the size and importance of foreign bank
offices in the U.S. banking market, the practice
should be applied to these institutions as well.
SUPERVISION OF
OFFICES
REPRESENTATIVE
Foreign banks also participate in the U.S. market
through representative offices. These offices are
ones at which a foreign bank may promote the
Statements to the Congress
services offered by the foreign bank but may not
engage directly in a banking business with customers. Representative offices may not make
credit or other business decisions but must refer
such decisions to the home office. Because their
activities are intended to be limited, there is a
lesser degree of regulation of these offices.
There have, however, been instances in which
foreign banks have used representative offices
to conduct banking activities without licenses.
To prevent such instances in the future, we
believe that it would be appropriate to require
federal review of the establishment by foreign
banks of representative offices in the United
States and to make these offices subject to
examination.
TERMINATION OF ACTIVITIES
Besides the adoption of standards for the establishment of a new foreign bank office that would
require federal approval, the Board has recommended that federal authority be provided to
terminate the activities of a state branch,
agency, representative office, or commercial
lending company of a foreign bank. The
grounds for such termination would be violations of law or the conduct of unsafe or unsound
practices when the continuation of the activities
would not be consistent with the public interest
or the applicable statutory standards.
COORDINATION OF
EXAMINATIONS
Our experience has demonstrated the need to
strengthen and coordinate federal and state
examinations of the various branches and agencies of a foreign bank. Many foreign banks
operate extensive interstate networks of
branches and agencies licensed under the authority of the various states or the Office of the
Comptroller of the Currency (OCC). As a result, the timing of the examinations of the
various office and the elements of the various
examination processes may differ widely. Our
experience has also demonstrated that comprehensive supervision requires that the branch
647
offices of a bank should be regulated and examined in a consistent manner.
While the International Banking Act gives the
Board the residual responsibility for supervising
all of a foreign bank's U.S. operations, it also
requires that the Board use the reports of examination of other regulators to the extent possible.
The Board believes that the statute should be
amended to remove this requirement and to
authorize the Board to call for coordinated or
simultaneous examinations. Because such coordinated examinations would require the close
cooperation of several different regulators, the
Board believes that it is preferable that there be
clear congressional authorization for such coordination, including authority to coordinate simultaneous examinations when appropriate.
The proposal is not intended to interfere with
state efforts to examine and supervise state-licensed branches and agencies. In implementing a
coordinated examination program, the Board
would anticipate that examinations of state
branches and agencies be conducted in a manner
similar to those of state member banks. The
Federal Reserve has a long record in coordinating
examinations of state member banks with the
states. The Board applies a flexible approach
designed to use resources efficiently while obtaining the necessary information from the examination. The Board may conduct its own examination
of the branch, participate in a joint examination,
or alternate examinations with the supervisor every other year. Examination of branches and
agencies may require greater coordination with
the states and the OCC because of the interstate
aspect of the foreign bank's operations and the
number of different regulators that are involved,
but we hope that the end result will provide a
more comprehensive picture of a foreign bank's
U.S. operations than is currently available. We
hope to enhance existing communications and
cooperation with federal and state bank regulators
in conjunction with the program of coordinated
examinations.
COOPERATION WITH FOREIGN
SUPERVISORS
In terms of supervising banks that operate
internationally, a crucial aspect is cooperation
648
Federal Reserve Bulletin • August 1991
and coordination with the home country regulators of such banks. Consequently, the Board
recommends that the International Banking Act
be amended to clarify that the federal banking
agencies are authorized to share supervisory
information with their foreign counterparts,
subject to adequate assurances of confidentiality, when such sharing is appropriate in carrying out the agency's supervisory responsibilities.
OTHER PROPOSALS
There are several other areas in which we have
recommended either enhancing current requirements in the law or extending to foreign banks
in the United States the same legal requirements as apply to U.S. banking organizations.
These areas include requiring reports by foreign
banks with U.S. operations of loans secured by
25 percent or more of the voting shares of any
insured depository institution; requiring that a
foreign bank with a branch, agency, or commercial lending company in the United States obtain prior approval before acquiring more than 5
percent of the shares of a U.S. bank or bank
holding company; clarifying the managerial
standards applicable to bank acquisitions in the
Bank Holding Company Act; and confirming
the authority to impose civil money penalties
for violation of the International Banking Act or
its implementing regulations. In addition, the
proposal calls for designating the relevant federal banking agency to enforce the consumer
lending statutes for foreign bank branches and
agencies rather than the approach under some
existing laws that would leave residual enforcement authority for foreign bank offices with the
Federal Trade Commission or in one case the
Department of Housing and Urban Development.
I would also note that, as part of the Treasury's proposed legislation on banking reform,
state-chartered banks would be limited in their
activities to those of a national bank, absent
agency approval. If that portion of the banking
reform legislation were to be enacted, a similar
limitation should be applied to the activities of
state branches and agencies of foreign banks.
FOREIGN BANK ACTIVITIES
IN THE UNITED STATES UNDER THE
BANKING REFORM PROPOSAL
Section 231 of H.R.1505, the Treasury's banking
reform legislation, would require a foreign bank
that desires to engage in newly authorized financial activities, such as securities, establish a
financial services holding company in the United
States through which such activities would have
to be conducted by subsidiaries. The provision
would also require any foreign bank that chooses
to engage in the new financial activities to conduct all of its U.S. banking business through a
U.S. subsidiary bank and to close and "roll u p "
its U.S. branches and agencies into that bank.
Finally, under the provision, foreign banks
would lose their grandfather rights for U.S. securities affiliates after three years and would be
required to obtain approval from appropriate
authorities to engage in underwriting and dealing
in securities activities in the United States in the
same way that a U.S. banking organization
would.
The supervisory standards that would be the
basis for authorizing affiliates of U.S. banks to
engage in newly authorized financial activities
and in interstate banking would apply also to
affiliates of foreign banks. Such a policy appears
appropriate and equitable. However, in implementing that policy, we question the need for the
requirement that foreign banks close their U.S.
branches and agencies and conduct their U.S.
banking business in a separately capitalized
U.S. subsidiary bank of the financial services
holding company to take advantage of the expanded powers for new activities.
It has been the policy of the United States, at
least since the adoption of the International
Banking Act of 1978, to apply the principle of
national treatment to the regulation of foreign
banks in the United States. The Congress in that
act recognized that foreign banks operating in
this country come from jurisdictions with differing and varied banking structures. The Congress
determined that national treatment required adaptation of U.S. legal requirements to provide
foreign banks, not with identical treatment, but
rather with equivalent, or parity of, treatment.
Within the context of applying the principle of
Statements to the Congress
national treatment, an effort has been made to
limit the extraterritorial effect of regulation in the
United States while assuring both that appropriate supervisory safeguards are in place and that
no competitive advantages accrue to foreign institutions as a result of the form or structure of
regulation in this country.
In the International Banking Act the Congress
balanced these concerns by treating foreign banks
as bank holding companies for purposes of the
nonbanking restrictions of the Bank Holding
Company Act but without specifically requiring
foreign banks to establish separate holding companies. That approach has worked well for the
past thirteen years. In our view, the imposition of
the additional legal requirement that foreign banks
transfer their banking business in the United
States to separate subsidiaries, as a precondition
to new activities, imposes additional costs on the
U.S. operations of foreign banks but does not
enhance the safety and soundness of those operations.
We believe that the principle of national treatment does not require that foreign banks operate
their U.S. banking business through subsidiary
banks in the United States to engage in new
financial activities. Moreover, if identity of treatment is a prerequisite for national treatment, the
question arises as to whether section 231 may be
viewed as denying national treatment because it
prohibits foreign banks from branching in the
United States from their head offices when U.S.
banks would have that authority.
Moreover, the capital and other supervisory
standards that are the basis for authorizing affiliates of foreign banks to engage in newly authorized financial activities can be applied without
requiring the termination of the branches and
agencies of foreign banks in the United States and
without requiring that foreign banks establish an
intervening U.S. holding company between the
parent foreign bank and U.S. activities. The Federal Reserve has for several years taken into
account the capital strength of the entire foreign
banking organization for purposes of determining
whether the organization may commence new
U.S. activities under the Bank Holding Company
Act. A similar assessment could be made for
purposes of the banking reform legislation. Indeed, an assessment of the strength of the entire
649
banking organization would be a better basis for
judging a foreign bank's fitness for new powers
than would an assessment of only the capital of
the U.S. subsidiary bank, and would meet the
standards of national treatment and equality of
competitive opportunity for U.S. and foreign
banks in this country.
There are also other reasons to question the
approach of section 231 in its current form. As the
Treasury proposal recognizes in advocating domestic interstate branching, a requirement that a
banking business be conducted through separately incorporated subsidiaries rather than
branches imposes additional costs by not permitting a banking organization to use its capital and
managerial resources efficiently. In many of the
important banking markets, U.S. banks have been
permitted to conduct banking operations through
branches on an equal basis with local banks. In
bilateral and multilateral discussions, U.S. authorities have correctly argued that a restriction
against branching discourages the involvement of
U.S. banks in foreign markets. It would be inconsistent not to acknowledge that foreign banks
could also be discouraged from involvement in
U.S. banking markets by requiring foreign banks
to operate only through subsidiaries to engage in
new activities.
Foreign banks have made a substantial contribution to the competitive environment of U.S.
financial markets and the availability of credit to
U.S. borrowers. To the extent the proposal may
cause a retreat from the commitment of foreign
banks to the U.S. market, it may reduce the
availability of credit to American businesses and
local governments. Currently, legal lending limits
for U.S. branches and agencies of foreign banks
are based on the consolidated capital of their
parent banks. By contrast, requiring a "roll up"
of branches and agencies of a foreign bank into a
U.S. subsidiary bank, whose capital is measured
separately from the parent, might limit the extent
to which foreign banks contribute to the depth and
efficiency of markets in the United States and
continue to lend to individual borrowers.
Moreover, by compelling a switch from
branches, whose deposits now are largely uninsured, to U.S. subsidiaries, whose deposits would
be covered by U.S. deposit insurance, we would
be increasing the extent to which depositors
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Federal Reserve Bulletin • August 1991
would look to the U.S. safety net instead of to the
foreign parent in the event of problems.
We also have reservations about the purpose
that would be served by requiring a foreign bank
to establish a holding company in the United
States to conduct new financial activities. In particular, requiring a foreign bank to operate
through a holding company is not necessary to
assure competitive equity for U.S. financial services holding companies or independent U.S.
nonbank firms. A foreign bank's U.S. operating
company, whether a securities firm or the bank
itself, would have to meet at least the same
standards required for any other U.S. firm engaged in that business. The question then is
whether the requirement of a financial services
holding company removes some other potential
competitive advantages for foreign banks. We
think not. The foreign bank itself would have to be
well capitalized. Moreover, any cost advantage a
foreign bank may have in its own home market
would be available regardless of the structure of
its U.S. operations.
Requiring the termination of U.S. branches and
agencies of foreign banks and a holding company
structure could create inducements for foreign
banks to conduct banking operations in less costly
environments outside the United States. Such
requirements could also encourage foreign authorities to enact similar restrictions on branching
activities by foreign banks, including U.S. financial firms, possibly setting off a mutually destructive spiral of escalating restrictions.
Finally, we support the policy reflected in
section 231 that would allow a termination of the
grandfathered securities activities of foreign
banks if foreign as well as domestic institutions
are given the power to engage in securities activities under the new structure for financial reform.
CONCLUSION
In sum, the Foreign Bank Supervision Enhancement Act is designed to be consistent with
the policy established in the International Banking Act of national treatment for foreign banks
and to provide federal regulators with the same
authority over the U.S. operations of foreign
banks as they have with respect to domestic
banks. The proposed legislation does not establish a new scheme of bank regulation; it applies
to foreign banks the same structure of regulation as currently applies to domestic banks. The
dual banking system is served in the same way
as with domestic banks, and the proposed legislation recognizes that states have an important roll in determining whether to permit foreign banks to enter their states under a scheme
of state regulation. The proposed legislation
also recognizes, however, that the presence of
an international bank in the U.S. market has
implications that go beyond the boundaries of
any one state and that the national policies
established by the Congress with respect to
banking must also be served.
This legislative proposal will enhance the
ability of U.S. regulatory authorities to assess
the ability of a foreign banking organization as a
whole to support its U.S. operations. The comments I have made on section 231 of the committee print of H.R.1505 also emphasize that
such an assessment is a more reliable basis
for determining whether a foreign bank should
be given new financial powers in the United
States. The "roll u p " and the holding company
requirement run counter to that interest. It
would appear that the underlying intent of
section 231 is to provide a firm basis for U.S.
regulation of foreign banks. We believe that
there are other ways to achieve an appropriate
level of supervision of foreign banks. The
provisions of the Foreign Bank Supervision
Enhancement Act would serve that goal without the negative side effects of the "roll u p "
and the holding company requirements of section 231.
I appreciate having the opportunity to testify
on these important issues and would be pleased
to answer any questions.
•
Statements to the Congress
Statement by Edward W. Kelley, Jr., Member,
Board of Governors of the Federal Reserve System, before the Committee on Banking, Housing,
and Urban Affairs, U.S. Senate, June 12, 1991.
I would like to thank you for the opportunity to
discuss the issues of lender liability under the
Comprehensive Environmental Response,Compensation, and Liability Act of 1980 (CERCLA),
as well as the solutions to this problem proposed
by S.651. The issues presented in this legislation
are complex, and I commend the committee for
undertaking to explore them fully at this time.
As an initial matter, we strongly support the
purposes of CERCLA. We all wish to live in a
clean and healthy environment; however, the
costs of achieving this goal are substantial. The
Environmental Protection Agency has estimated
that the cleanup of the 1,200 priority sites alone
may exceed $30 billion. The General Accounting
Office has estimated that as many as 425,000 sites
may need investigation and possibly cleanup.
In light of these potential costs, we have
become concerned over the effect of recent court
interpretations of CERCLA that have held lenders liable for the cost of the cleanup of hazardous
substances found on a borrower's property. Despite an exemption in CERCLA designed to
shield lenders from CERCLA liability, these
decisions, in effect, place lenders in the role of
policing the hazardous substance disposal activities of their borrowers. Lenders are often ill
equipped to perform this function, and imposition of unlimited liability can be expected to
reduce their willingness to provide credit to
prospective borrowers in any business or area
where there is a risk of CERCLA liability. A
reduction in the availability of credit threatens
the viability of these businesses and their ability
to contribute to the cleanup of the environment.
Consequently, we believe that the imposition of
cleanup liability on lenders is counterproductive
to long-term environmental goals and is contributing to an unnecessary and unwarranted constriction of credit availability to a wide range of
otherwise creditworthy borrowers. We support
the objectives of S.651 to limit lender liability for
cleanup costs under CERCLA.
Under CERCLA, the owner or operator of a
property may be held liable for the entire cost of
651
cleaning up hazardous substances found on a
site, regardless of whether they are responsible
for the release of the hazardous substance. By its
terms, CERCLA generally excludes secured
lenders from this liability; however, recent court
decisions have largely eroded the protection furnished by this exclusion. Courts have imposed
lender liability under CERCLA when a lender
secured by property forecloses on property or
has "participated in the management" of its
borrower by virtue of the rights reserved by the
lender under its lending and security agreements
with the borrower. With the average projected
cost of remedying contamination at sites on the
National Priority List climbing to more than $25
million dollars, liability in CERCLA cases may
far exceed the amount of the lender's original
loan.
Because of the erosion of the secured lender
exemption, lenders to borrowers in businesses
that are used or produce hazardous substances
are faced with a dilemma. Lenders can actively
attempt to police hazardous substance disposal
by their borrowers, risking being found to have
"participated in the management" of the borrower and therefore liable for potential cleanup
costs, or they can ignore the borrower's activities and risk nonpayment of the loan. Further,
these court decisions may discourage even normal loan collection practices out of concern that
they will be found to constitute management.
Lenders already have adequate incentives to
encourage their borrowers to engage in environmentally safe practices so that these borrowers
will avoid CERCLA liability. However, lenders
do not generally have the technical expertise to
police the environmental aspects of a borrower's
operations. Covenants in borrowing agreements
that give lenders a voice in their borrower's
activities are designed to ensure that the borrower acts prudently in financial matters and
places a high priority on the repayment of the
debt, not to permit the lender to substitute its
judgment for that of the borrower's in technical
aspects of the borrower's business.
Imposing affirmative liability for environmental cleanup costs on lenders because of the
exercise of such covenants is likely to do little to
prevent the pollution of the environment but is
likely to interfere with the availability of credit to
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Federal Reserve Bulletin • August 1991
even prudent businesses that use hazardous substances, such as farmers, dry cleaners, service
stations, and chemical and fertilizer producers.
Credit is a necessity for the operation of commercial enterprises. Lenders, already reluctant
to extend credit to borrowers that are subject to
a high risk of CERCLA liability, will only be
deterred further by the prospect of affirmative
lender liability under CERCLA. Increased lender
reluctance to provide funds to industries or areas
that present a risk of CERCLA liability is likely
to have a significant adverse effect on these
industries or areas.
Lack of credit in these cases may also frustrate
environmental interests. Companies that are unable to continue operating because they cannot
obtain credit will not be able to make any contribution to the environmental cleanup costs.
Consequently, the current thrust of court decisions imposing lender liability under CERCLA
may actually frustrate the environmental goals of
CERCLA and increase the cleanup costs that
must be borne by the government.
While the Board does not have comprehensive
data on lender losses because of CERCLA liability to date, clearly significant losses have already
occurred. More important to the future is that
data from the Federal Reserve Banks suggest
that CERCLA liability is, in fact, affecting the
availability of credit. Banks are developing environmental guidelines that often indicate that the
lender should decline to make loans collateralized by real property when past uses may have
resulted in contamination of the property or to
make loans to businesses that may use or produce hazardous substances in their operations.
In some cases it appears that banks are declining
to make loans regardless of the safety of a
borrower's handling of hazardous substances.
In addition, banks are examining property
carefully before they foreclose on it and are
sometimes walking away from their collateral to
avoid environmental liability. This problem appears to be widespread and is not confined to
industrial areas of the country or to particular
types of businesses. Virtually every Federal Reserve Bank reported instances in which lenders
had walked away from collateral, even when the
collateral was the only source of repayment for
the loan. The experience of walking away from
collateral to avoid CERCLA liability is likely to
cause lenders to become increasingly cautious
about loans to many businesses or areas, even if
no actual liability has been incurred under
CERCLA.
In carrying out its examination and supervisory activities, the Federal Reserve expects
banking organizations to have policies and procedures in place to monitor and control the risks
to which banking organizations are exposed.
However, banks have experienced difficulty in
determining the appropriate protective practices
to minimize the potential for CERCLA liability.
Lending institutions are at risk for hazardous
waste liability whether they have ignored hazardous waste issues altogether or have actively
attempted to monitor the safety of their borrowers' operations. The Board currently is developing guidelines for bank examiners to follow in
determining whether a lending institution has
adopted appropriate procedures and safeguards
to recognize potential hazardous substance problems. Unfortunately, given the current state of
the law, there is no clear guidance that we can
provide as to how an institution can extend credit
and still avoid liability.
Besides private sector liability, CERCLA
raises significant issues concerning the funding of
government operations. Many lending institutions that are potentially subject to CERCLA
liability are federally insured through the bank
and thrift insurance funds. Unlimited liability
under CERCLA poses a potential threat to the
capital and solvency of these institutions and in
some cases could result in the costs of hazardous
substance removal being borne by the bank and
thrift insurance funds. We understand that the
Federal Deposit Insurance Corporation (FDIC)
has already incurred losses as a result of
CERCLA.
Further, many agencies and instrumentalities
of the federal government, such as Federal Reserve Banks, Federal Home Loan Banks, the
Farm Credit System, and the Small Business
Administration, are also lenders. Lender liability
presents a threat to the ability of these organizations to carry out the missions assigned to them
by the Congress. The Federal Reserve Banks
fulfill important functions in providing adjustment credit and acting as a lender of last resort
Statements to the Congress
for depository institutions. In acting as lender of
last resort, a Federal Reserve Bank may advance
funds to a depository institution collateralized by
the institution's loans, which may in turn be
secured by real property. Should the institution
fail, the FDIC, as receiver, would likely acquire
the loans from the Reserve Bank and would be
left holding the loans. In these cases, the FDIC
would be exposed to lender liability to the same
extent as the original lender. If the FDIC chose
not to acquire the loans, however, the Reserve
Bank would be subject to this exposure.
It is not appropriate to shift the risks and
expenses of environmental clean-up costs from
the funds allocated by the Congress for this
purpose to the bank and thrift insurance funds or
to governmental instrumentalities such as the
Federal Reserve Banks. Federal agencies and
instrumentalities have been charged by the Congress with particular responsibilities. Their funds
are intended to be used to fulfill these responsibilities, not to cover the costs of hazardous
substance removal.
We believe that the appropriate avenue for
remedying these problems is legislation. While we
commend the Environmental Protection Agency
for its efforts to provide regulations to clarify the
secured lender exemption, its efforts are necessarily limited by the current statutory provisions. We
believe that greater certainty and protection for
both public and private sector lenders will be
provided by statutory amendments.
Any legislation to limit the application of
CERCLA liability should apply to all lenders and
should strive to delineate clearly those activities
that will lead to CERCLA liability. S.651 presents a viable approach to reducing potential
lender liability problems under CERCLA for
both the private and public sectors. While this
bill has several strong points, it does not cover all
lenders and leaves unanswered questions as to
what duties, if any, those lenders that are covered must perform to preserve the limitation on
liability.
S.651 amends the Federal Deposit Insurance
Act to limit the liability of mortgage lenders and
federally insured depository institutions for the
cost of hazardous substance removal. It appears
that the liability of these lenders would be limited
to the amount of the loan made by the lender or
653
the actual benefit received by the lender from the
cleanup of the property. S.651 also provides that
mortgage lenders or insured depository institutions will not be liable for cleanup costs based on
their unexercised capacity to influence the operations of a borrower.
However, under S.651 a lender would lose all
benefit of the exemption if it caused or contributed to the release of hazardous wastes or failed to
take reasonable steps to prevent continued release. It is not clear under what circumstances a
lender would be considered to have caused or
contributed to a release or what actions a lender
must take to prevent a release. This stringent
standard juxtaposed against the severe implications of being found responsible could be a serious
inhibition to a lender's willingness to lend.
S.651 also specifically addresses the concerns
of federal banking and lending agencies by providing protection for these entities and the next
purchaser of the property by excluding them
from liability for hazardous substance removal
and exempting property held or sold by these
agencies from certain CERCLA liens. The federal banking and lending agencies would also be
exempted from CERCLA provisions requiring
federal government entities that are owners or
operators of facilities to provide warranties concerning the cleanup of any property before it can
be sold.
These provisions would improve the ability of
the federal banking and lending agencies to obtain repayment of their loans or to realize the
value of real property and would limit the extent
to which their funds are diverted to pay for
hazardous substance cleanup costs. The extension of the broader agency immunity to subsequent purchasers should be particularly helpful
in this regard by encouraging prospective purchasers to invest in properties that carry a risk of
CERCLA liability.
S.651 also requires the federal bank regulatory
agencies to promulgate regulations to require the
institutions they supervise to adopt procedures
for evaluating environmental risks associated
with lending secured by property. We believe
that the incentives arising from the risk that the
borrower will be unable to repay its loan because
of its own CERCLA liability are adequate to
encourage lenders to evaluate environmental
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Federal Reserve Bulletin • August 1991
risks related to their borrower's property. Banks
are already beginning to undertake these evaluations. Accordingly, we do not believe that it is
necessary to add additional regulatory requirements in this area.
In closing, it is in the interests of the financial
and environmental communities to find a balanced
solution to the lender liability issue. If this issue is
not resolved, we risk a reduction in the availability of credit to any industry, area, or borrower
that appears to present a risk of liability for
hazardous substance removal. We also risk imposing additional costs on the bank and thrift
insurance funds to pay for environmental cleanup
costs that would otherwise be met from the funds
allocated by the Congress for that purpose. In
light of these considerations, we believe that the
environmental goals of CERCLA will be furthered rather than hampered by the provisions of
S.651.
•
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Securities of the
Committee on Banking, Housing, and Urban
Affairs, U.S. Senate, June 12, 1991.
through open market operations and allows the
Treasury to issue federal debt at the lowest
possible cost to the taxpayers. Investors accept a
lower rate of return on government securities, in
part, because they know that this market is deep
and broad and liquid—large transactions can be
made quickly with relatively little effect on prices
and can be, if necessary, reversed just as quickly
with relatively low transactions costs. While we
view market liquidity as essential, this is not to
say that investor protection is not also a legitimate concern. It is an important concern in its
own right, and, if not adequately addressed, a
loss of investor confidence in the fairness and
functioning of the government securities market
could itself impair liquidity.
But any securities regulation involves costs—
directly to the issuer, customer, or dealer, as well
as indirectly by potentially diminishing the general liquidity of the market. Consequently, in
weighing the advisability of new legislation to
add regulation, the Congress will, of course,
want to assure itself that the expected benefits of
any new regulation exceed the associated expected costs. Several years ago, when drafting
the Government Securities Act, the Congress
explicitly considered the case for broader regulation of sales practices and some other areas but
chose not to make it part of the act. In the
Board's view, a convincing case for calling this
decision into question has not yet been made.
In the area of sales practice rules, the General
Accounting Office's (GAO's) report in September 1990 recommended that the Congress amend
the Securities Exchange Act to authorize a federal agency to adopt rules of fair practice applicable to all government securities brokers and
Thank you for this opportunity to give our views
regarding possible amendments to the Government Securities Act of 1986. At the outset, let me
note that the Federal Reserve Board continues to
support the recommendations of the joint Treasury-Securities and Exchange Commission
(SEC)-Federal Reserve Board study—most important, that the Congress extend the Treasury's
rulemaking authority over the market beyond the
current sunset date. The experience of the past
several years can, in our view, be read as ratifying the importance and usefulness of the Government Securities Act and of the rules that the
Treasury has promulgated under the authority
that the act granted it. In its capacity as rulemaker, the Treasury has effectively addressed
the concerns about the maintenance of a fair,
honest, and liquid market that motivated the
original legislation. Thus, in light of both its
experience and its special expertise in this market, the Department of the Treasury should retain its current authority to write the rules in the
market for government securities.
Before getting into the specifics of other suggested amendments, I would like to lay out the
Board's frame of reference in approaching this
issue. Specifically, we begin from the premise
that it is absolutely essential to preserve the
extraordinary liquidity and efficiency of the government securities market. This liquidity both
facilitates the implementation of monetary policy
Statements to the Congress
dealers, addressing, at a minimum, dealer markups and investor suitability requirements. The
Treasury's proposed legislation would do just
that and would designate the Treasury itself as
the federal agency in charge, with quite broad
powers in this area.
In taking a closer look at these proposals, our
experience in applying markup rules elsewhere
suggests that there are significant difficulties and
ambiguities in administering such rules fairly.
Even if judgments about the reasonableness of
markups in this fast-paced market could be made
on an ex-post basis, it could be difficult to formulate meaningful criteria for use in making ex-ante
judgments and providing guidance to dealers.
The government securities market spans a wide
range of securities, from the extremely liquid,
so-called on-the-run Treasury securities, for
which bid-asked spreads are razor-thin, to the
more exotic and sometimes tailor-made hybrids
and derivatives, for which a fair markup could be
sizable.
In the same vein, the Board is concerned that
suitability rules could impose a burden on the
government securities market by adding to costs,
delaying the execution of transactions and potentially limiting the range of legitimate investments
available to a dealer's customers. Moreover,
many of the losses in the government securities
market cited by the GAO and others in support of
sales practice rules have involved large investors, whom one would expect to have the sophistication to judge the appropriateness of various
investments themselves. It is doubtful that any
suitability rules should apply to those best described as institutional investors.
There are, nevertheless, concerns that smaller
and perhaps less sophisticated investors may, at
times, have been subjected to high-pressure sales
tactics and sold inappropriate investments. As
the regulator of state-chartered member banks,
some of whom have been the targets of such
practices, the Board is aware of this possibility,
and in 1988 the Board, along with the other bank
regulatory agencies, adopted a policy statement
regarding the selection of securities dealers and
unsuitable investment practices. The policy
statement lists standards that an institution
should apply when selecting a dealer and describes the interest rate risk characteristics of
655
several extremely volatile instruments, such as
stripped mortgage-backed securities, noting that
such instruments "cannot be considered as suitable investments for the vast majority of depository institutions." The adoption of the policy
statement, together with an effort to educate
banks to the risks involved, has virtually eliminated the problem for the banks we regulate.
There are other investors for whom this would
not be a practical or a complete solution, however, and the Board recognizes that the Congress
may conclude that additional sales practice rules
are desirable to help curb existing or potential
abuses. In that case, perhaps the least costly
measure would be a simple removal of the prohibition on the National Association of Securities
Dealers, Inc. (NASD) applying its sales practice
rules to government securities transactions. Allowing the NASD to apply its existing rules to
government securities sales by its members
would parallel what is already the case for New
York Stock Exchange (NYSE) member firms,
and it would extend coverage to all nonbank
brokers and dealers. In this process, which
would in essence take place with oversight by the
SEC, we would favor substantive consultation
and cooperation with the Department of the
Treasury as the primary regulator of this market.
In our view, going further than this—to cover
bank dealers—is unnecessary, given the lack of
allegations of sales practice abuses involving
these dealers. Bank examiners routinely go
through customer complaint files, and this is an
area in which they simply have not been seeing
complaints. We believe that the bank supervisory agencies, through the use of frequent and
detailed examinations and other tools at their
disposal, have the ability to identify any abuses
quickly, should they develop.
The issue of whether legislation is needed to
expand access to information about securities
trading through interdealer brokers appears at
present to be very nearly moot. An independent
corporation sponsored by the Public Securities
Association and owned by the brokers and dealers is moving toward implementation of its plan
to disseminate price and volume information on a
fee basis in just a few days. We recognize that
this initiative may have been motivated strongly
by the possibility of legislative action. But we
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Federal Reserve Bulletin • August 1991
believe that so long as it is going forward, actual
legislation and associated regulatory oversight
are unnecessary and could actually constrain
rapidly changing market practices. Should this
latest private sector initiative falter, however, or
should the information prove inadequate, our
view of the desirability of a legislative response
likely would change.
With respect to the GAO recommendation that
Securities Investor Protection Corporation
(SIPC) insurance be extended to customer accounts at registered government securities brokers and dealers, there could be some marginal
benefits in terms of customer protection, but
other regulatory changes might be necessary in
connection with the adoption of this proposal.
For example, the SIPC has pointed out that the
proposal raises major questions about regulatory
oversight because all current members of the
SIPC are subject to the full rulemaking authority
of the SEC. A range of related questions warrants further study before a definitive conclusion
can emerge about the desirability of expanding
SIPC coverage.
On a minor note, we question the Treasury's
recommendation that the act be amended to
provide for information to be furnished to the
Treasury directly by the Federal Reserve Banks,
rather than through the Board of Governors as it
is now. Any information that the Treasury might
need from the Federal Reserve to carry out its
responsibilities under the Government Securities
Act likely would be obtained through our supervisory authority, and the Board has detailed,
well-established procedures concerning the release of such information. The proposed rule
change would be inconsistent with those procedures. Accordingly, in the absence of a clear
need for such a change, we would oppose it.
Finally, committee staff has requested that we
also address a recent episode in the Treasury
coupon market, in which strong demands by a
few participants apparently "squeezed" others
in the market who had committed to deliver last
month's two-year Treasury note. As a result,
prices were distorted for a time in the market for
the security and for its financing. In the wake of
that incident, questions have arisen about
whether current regulations provide adequate
protection against the potential for manipulative
practices in this market. As is the case for the
other concerns being addressed here today, equitable and nondistorting regulations are not easy
to design, and we would counsel caution in
expanding regulation lest the cost to the taxpayer
be excessive. Certainly, we do not want to
interfere with strong bidding for securities that
lowers the cost to the taxpayer of servicing the
public debt. But if that strong bidding results in
the perception that prices of Treasury securities
are arbitrary and subject to manipulation, marketmakers and investors could turn away from
these instruments, impairing liquidity and ultimately lowering demand in the market with adverse effect on the cost to the government. Both
the facts and the outlook in this area are worth
studying further, and it may be that additional
rules or reporting requirements will be found to
be in order. At this point, however, no new
legislation appears to be needed, and a range of
possible responses could be implemented under
the Treasury's existing authority.
In sum, by instituting an effective and comprehensive regulatory structure, the Government
Securities Act of 1986 appears to have largely
accomplished its goals. It is the Board's position
that the need for additional legislation, beyond
that already proposed in the joint TreasurySEC-Federal Reserve Board study, has not been
decisively demonstrated. Nevertheless, we
would not stand in opposition to a modest broadening of the scope of regulation over this market
through the removal of the prohibition on the
NASD's applying its existing sales practice rules
to the government securities activities of its
members. However, we would view substantial
additional regulation as not only unnecessary but
detrimental. The creation of a whole new panoply of rules and regulations likely would prove an
inefficient and potentially very costly way of
dealing with the relatively few abuses that have
occurred in this area.
•
Statements to the Congress
Statement by Alan Greenspan, Chairman, Board
of Governors of the Federal Reserve System,
before the Committee on Ways and Means, U.S.
House of Representatives, June 18, 1991.
I am pleased to appear before this committee to
discuss U.S. international competitiveness. This
topic has received much attention over the past
two decades as the U.S. economy has become
increasingly more open.
The concept of competitiveness can mean different things to different people, depending on
their particular perspective; so let me begin by
defining terms. At the level of the individual firm,
competitiveness is, of course, gauged by bottomline performance in the market. Competitive
firms are those firms whose costs of production
lie sufficiently below the market price of the
output they sell so that they earn a rate of return
on equity at or above the market cost of capital.
Competitive firms survive, increase their market
share, and prosper; uncompetitive firms do not.
A similar concept of competitiveness is often
applied at the national level as well. The country's international performance is frequently
monitored by such measures as the shares of its
exports in world markets, movements in its trade
balance, and movements in its aggregate price
level and production costs relative to those of
other countries.
At the national level, however, such conventional measures of competitiveness lose much of
their meaning or at best are difficult to interpret.
In today's open world trading system, exchange
rates tend to adjust over time to ensure that the
country's international accounts return to balance. For example, if overall production costs
rose in the United States, everything else equal,
the dollar would depreciate against other currencies, restoring the price and profit competitiveness of U.S. firms, thereby enabling them to
maintain their sales abroad.
However, a gain in price competitiveness associated with a depreciation of the dollar, while
good for U.S. firms that compete internationally,
could actually worsen overall economic wellbeing in the United States. A lower dollar means
that we must sell more of our output to buy a
given amount of foreign-produced goods and
services.
657
Our competitiveness as a nation, therefore,
goes beyond movements in the shares of our
exports in world markets and the international
price competitiveness of our firms and industries.
The ultimate test of the country's competitiveness is what is happening to the standard of living
of our citizens over time.
Over the past four decades, U.S. real—or
inflation-adjusted—per capita national income
has more than doubled. The United States continues to enjoy the highest standard of living
among major industrial countries. In 1990, U.S.
real per capita income was about 30 percent more
than that in both Japan and Germany, our major
competitors among industrial countries. We enjoy a similar advantage in total manufacturing
productivity.
It is also clear, however, that the gap between
the United States and other major industrial
countries has narrowed substantially over the
postwar period as per capita income and productivity have grown substantially faster abroad. In
some areas, individual firms and even entire
industries in other countries may well have
caught up to and passed their U.S. counterparts.
Does this narrowing of the productivity gap mean
that we are a nation in decline? Not in and of
itself.
To a considerable extent, the narrowing of the
gap has been inevitable, reflecting economic
forces that are shrinking the globe, providing a
strong stimulus to international trade, and making countries better informed about each others'
products and production techniques. It is clearly
easier to grow fast by catching up, using techniques and processes that have already been
developed, than by breaking new ground through
technological innovation.
One important factor that has contributed to
this process of economic convergence as well as
to the rapid expansion of world trade in the
post-World-War-II period is what I have broadly
referred to elsewhere as the "downsizing of
economic output." Goods now derive a smaller
proportion of their value from the volume of
physical matter embodied in them. Advances in
design and engineering, the use of lighter but
stronger materials, and the availability of smaller
but more reliable electronic components all have
contributed to the downsizing of output. The
658
Federal Reserve Bulletin • August 1991
increasing importance of conceptual content in
output reflects, in part, the explosive growth of
information gathering and processing, which has
greatly extended our analytical capabilities of
substituting ideas for physical volume.
The downsizing of output, combined with significant advances in intercontinental transportation and communication, has facilitated the rapid
growth in international trade that we have seen in
recent decades. Moreover, information about
new products and new technologies spreads further and much more rapidly today than it did just
a few years ago. As information-processing capabilities increase in all countries, technological
and productivity gaps likely will continue to
narrow further.
While other countries have benefited greatly
from technology that has been developed first in
the United States, U.S. residents, too, have
benefited significantly from the rapid growth of
productivity abroad. As goods and services produced abroad improve in quality or decline in
price, opportunities for international trade are
enhanced and U.S. consumers who import foreign goods and services benefit directly.
The rapid growth of international trade over
the past four decades has enhanced our standard
of living more generally in several respects. One
way is the well-known gains from specialization
and exchange, commonly referred to as the law
of comparative advantage. Just as individuals
within a country gain by devoting their energies
to what they do relatively well and exchanging
their output for the output of others, so do entire
countries gain through specialization and exchange. By specializing in industries in which
they are relatively efficient producers and trading
for products in which they are relatively inefficient, the citizens of all countries increase the
total amount of goods and services available for
their own consumption.
Another source of gains from trade is the
stimulus to the efficiency of domestic production
that is provided by international competition.
For example, increases in the quality of U.S.
automotive products since the early 1970s were
stimulated, in part, by the competition of Japanese and European automakers. Although the
implications for workers in the domestic automobile industry were not always positive, those
implications for consumers and their standard of
living were definitely so. In addition, the rapid
expansion of U.S. exports over the past several
years owes much to a period of capacity enhancements and productivity improvements by
U.S. manufacturing firms earlier in the 1980s
when the dollar was strong and foreign competition was intense.
In a dynamic competitive world economy,
with new products, technologies, and production
processes continually coming on stream, some
firms and industries will always be on the decline
as others are on the rise. Protectionist pressures
often arise when foreign competition intensifies
for a domestic industry that is in decline. The
ailing industry has a strong incentive to seek
protection from foreign competition; the losses
of those put out of business and out of jobs are
real. However, the appropriate policy response
to an industry that is losing ground to foreign
competition is not to erect barriers to imports but
rather to facilitate the redirection of workers who
do lose their jobs to more productive employment opportunities elsewhere. If the protectionist route is followed, newer, more efficient industries will have less scope to expand, and overall
output and economic welfare will suffer.
It is noteworthy that despite the alleged weakening of our international competitive position
during the 1980s, it can scarcely be argued that
jobs have been lost, on balance. In fact, the
unemployment rate by the latter part of the
1980s, at below 5V2 percent, was the lowest level
since the early 1970s. Moreover, the view that
employment growth has been concentrated in
less productive areas more recently is not supported by the data. Indeed, real wages and
salaries per worker grew almost as fast during the
1980s as they did during the 1970s.
It is, of course, prudent to be vigilant against
unfair trade practices or excessive concentration
of market power on the part of foreign firms.
Nevertheless, the current level of protection in
the United States seems well in excess of the
response that would be warranted by the actual
existence of unfair trade practices abroad. By
some plausible estimates, the unilateral removal
of quantitative restrictions now placed on U.S.
imports of textiles, apparel, and various agricultural products would result in net gains to U.S.
Statements to the Congress
consumers amounting to the tens of billions of
dollars. Moreover, the complete removal of existing foreign restrictions on U.S. exports probably would reduce our trade deficit by only
modest amounts.
While the traditional impetus for protection
has been the loss of domestic market share and
jobs to foreign competition, a new school of
thought argues that a case can be made for
government intervention in the form of promotion of technological change and innovation in
particular industries. Certain industries promise
the possibility of high profits or above-average
wages to employees because of increasing returns to scale in production, spillover benefits to
related industries, and barriers to market entry
associated with high initial research and development costs. As the argument goes, other countries are beating us to the punch in such high
value-added areas because their governments
have heavily subsidized initial expenditures for
research and development.
This argument has some appeal, but I would
caution against adopting a policy of targeting
particular industries for special support from the
government for several reasons. First, if the
potential returns to specific industries are really
as high as promised, in many cases private
investment could be expected to respond. Second, it is not at all clear that the government is in
any better position than the private market to
identify those particular firms or industries that
are most deserving of support for research and
development. Third, even if the spillovers were
significant and obvious enough in a given case to
warrant government subsidies, making an exception in one case would risk the spread of government intervention to less clear-cut cases.
I have suggested that the narrowing of the gap
between U.S. productivity and that of our major
trading partners, to a considerable extent, has
been both inevitable and beneficial. Nevertheless, more could be done to promote productivity
growth in the United States.
Some observers have suggested that a case can
be made for government support for basic research and development, that is, support not
directed at specific products or industries. However, it is important that government involvement in this area be implemented in such a way
659
that it reinforces but does not supplant private
market decisions. Much the same could be said
for additional government expenditures on education and training.
More could be done to remove outmoded or
unnecessary government restrictions on U.S.
private industry. In areas where high value added
and spillovers are present, the gains in terms of
our standard of living could be significant. To
take an example, legislation is now pending to
put U.S. banks on a more equal footing with
foreign banks by allowing them to provide a more
complete range of financial services to their
customers. In the absence of such banking reform, we could see a decline in the prominence of
the United States as an international financial
center, and a potential loss of highly skilled jobs
in financial services and allied industries.
Because the arguments for free trade are so
compelling, one sure way to enhance the prospects for our national standard of living is to
continue to work to remove existing barriers to
trade globally. Indeed, the primary thrust of U.S.
trade policy has been, and must continue to be,
to strive for multilateral reduction of trade restrictions under the auspices of the General
Agreement on Tariffs and Trade (GATT). I attach great importance to bringing the current
Uruguay round negotiations to a successful conclusion. Much progress has been made already in
the talks, and prospects may have improved for
ironing out remaining nettlesome areas, particularly in agriculture. Any significant step that
could be taken toward tearing down the extremely inefficient and costly worldwide system
of government subsidies to agriculture would be
a breakthrough that would have many benefits.
The recent extension of the fast-track authority was an important step both for the GATT
talks and for the establishment of a North American Free Trade Agreement. With respect to our
impending negotiations with Mexico, predictably, some U.S. industries may be hurt by increased competition from that country. But all of
the comprehensive studies that I have seen on
the subject indicate that the increase in trade
with Mexico that will follow a removal of existing
trade barriers, on the whole, will result in a net
gain in both jobs and incomes for U.S. residents
as well as for the residents of Mexico.
660
Federal Reserve Bulletin • August 1991
Perhaps the most important means at the government's disposal to improve U.S. international
competitiveness and our standard of living in the
long run is to pursue sound macroeconomic
policies. It goes without saying that a stable
financial system and steady progress toward
price stability will tend to minimize risk and
enhance the attractiveness of investing in the
United States—both by U.S. investors and by
investors from abroad. Policies that contribute to
low inflation among our major trading partners at
the same time will lead to more stable exchange
rates and contribute to further sustained growth
of international trade and, accordingly, domestic
real incomes.
On the fiscal side, the connection between
movements in our budget deficits and our external performance, within the equation between
national saving and investment, was confirmed
by events during the 1980s. The widening of the
federal budget deficit, along with a downtrend in
the U.S. private saving rate, contributed to an
increase in both real interest rates and the dollar's exchange rate during the first half of the
1980s. The stronger dollar and associated decline
in the price competitiveness of U.S. firms, in
turn, contributed to a sharp widening of the trade
deficit and declines in the world market shares of
U.S. exports. In the second half of the 1980s, the
budget deficit turned around, interest rates and
the dollar fell, the U.S. trade deficit began to
narrow, and the world market shares of U.S.
exports recovered strongly.
Despite the swing in the U.S. external position during the 1980s, U.S. investment continued to show reasonably strong growth, and
productivity in manufacturing advanced at an
above-average annual rate of 3V2 percent. However, given the low and declining U.S. saving
rate, the growth in investment was necessarily
at the expense of future consumption by U.S.
residents. The shortfall of U.S. domestic saving
was made up by a substantial net inflow of
capital from abroad. All told, the increase in our
net debt to foreigners over the past ten years
amounted to about $750 billion. Servicing that
increased net debt over the years ahead will
mean that the rate of consumption in the United
States relative to our output will be lower than
it would otherwise have been.
There is no question that the decline in the
U.S. national saving rate has been costly and that
the recovery of that saving rate should be a
national priority. At a minimum, we should ensure that progress toward eliminating the federal
budget deficit over the next five years, as envisioned in last year's budget agreement, is
achieved.
•
Statement by David W. Mullins, Jr., confirmation hearing on nomination to become Vice
Chairman, Board of Governors of the Federal
Reserve System, Committee on Banking, Housing and Urban Affairs, U.S. Senate, June 18,
1991.
tary policy and financial regulation. The last year
has indeed been a challenging one on both fronts.
With your indulgence, I would like to revisit
these topics from the perspective of a year later.
MONETARY
Chairman Riegle, Senator Garn, and members of
the committee, it is a privilege to appear before
you today as President Bush's nominee to serve
as Vice Chairman of the Federal Reserve Board.
I am deeply honored that the President has asked
me to assume this additional responsibility.
When I appeared before you seeking confirmation of my appointment to the Board last year, I
spoke briefly in my opening remarks on what I
thought should be the basic goals in the two
major areas of Federal Reserve activity: mone-
POLICY
On the first topic, monetary policy, I believe that
the Federal Reserve should seek to maximize
sustainable economic growth. Inflation is detrimental to this objective. Steady, credible policies
with respect to the growth of money and credit
should contribute to fostering sustainable economic growth with progress toward price stability. Of course, fiscal policy, international influences, and economic shocks play important roles
in affecting the path of the economy as well.
Statements to the Congress
On a conceptual level, monetary policy is
straightforward. However, the past year demonstrates the practical complexities encountered in
conducting monetary policy. Not long after I
arrived at the Board, we were confronted by a
series of extraordinary events that presented a
challenging mix of risks for the economy and
financial markets. In short order, we were confronted with the conflict in the Persian Gulf, the
associated spike in world oil prices and collapse
of consumer confidence; the fiscal policy debate
in the Congress that presented markets with the
prospect of budgetary paralysis; and, of course,
the stresses in our financial system, which led to
what is commonly referred to as the credit
crunch. This environment was indeed a complex
financial and economic one that faced the Federal Reserve as the economy moved into recession in the second half of 1990.
In response, the Federal Reserve has sought to
counteract the contractionary forces in the economy, utilizing open market operations, along
with cuts in the discount rate and reduced reserve requirements, to bolster growth in money
and credit. As you know, the economy responds
with a lag to monetary policy actions, and the
stimulative effects of these actions are working
their way through the economy and will continue
to do so in the months ahead. While inflationary
pressures appear to have diminished in recent
months, we must continue to be sensitive to the
risks that inflation poses to the objective of
fostering economic growth in both the long run
and the near term.
Although the past year has been marked by
economic shocks and recession, recent developments have been encouraging and suggest that
the economy may well have bottomed. The prospects now seem favorable for a recovery that
leads into a longer-term period of economic
expansion and progress toward price stability. I
believe, as my colleagues do, that we must
continue to assess developments carefully and
stand prepared to take appropriate action to
foster such an outcome.
FINANCIAL
SERVICES
REFORM
When I was last before this committee, I spoke of
the need for comprehensive modernization of the
661
regulation of our financial services system. In the
past year, the need for such reform has been
underscored by stresses within the financial system and pressures on the Federal Deposit Insurance Corporation's (FDIC's) bank insurance
fund. Because constraints in credit availability
within the banking system have a potentially
contractionary influence on the economy, they
have been an important consideration in making
monetary policy. Stresses in the financial system
have also been a focal point of our work in the
field of banking supervision and regulation.
I believe that these difficulties are symptomatic
of a more fundamental problem—outmoded financial services regulation created more than
half a century ago. Technology and innovation
have radically altered the financial landscape,
resulting in increased competition for banks and
diminished competitive opportunity in traditional
banking markets. The expansion of the federal
safety net has shielded banks from the remedial
effects of competition for funds in the financial
marketplace, and regulatory discipline has often
not been timely and efficient.
We, at the Board, have devoted considerable
time to analyzing and debating the causes and
potential remedies for the problems facing the
banking system. I, like my colleagues, strongly
support the thrust of the Administration's proposal for comprehensive financial services reform. The Administration's proposal is designed
to deal with each of the components of the
problem—to limit the expansion of the federal
safety net, to enhance supervision and establish a
system in which regulators will implement
prompt, progressively more aggressive, corrective action as institutions weaken, and most
important, to broaden competitive opportunity
for banks. Within the context of strict protections designed to contain the spread of the federal safety net, to limit potential taxpayer exposure, and to enforce essential standards of safety
and soundness; the proposal allows banking institutions to apply their resources and expertise
over the full range of financial activities without
artificial geographical constraints.
In my view such reform is long overdue. To be
effective, reform must address the fundamental
causes of the difficulties facing the banking industry. I believe that the root cause of these
662
Federal Reserve Bulletin • August 1991
difficulties is diminished competitive opportunity. Broadened competitive opportunity, both in
terms of activities and geographical scope, is
needed to enhance the long-term competitiveness of the U.S. banking industry and ensure its
long-term stability. A strong, competitive banking industry is the best protection for taxpayers
exposed through the federal safety net. As our
recent experience with the credit crunch illustrates, a strong and vital financial services industry is also an important contributor to economic
stability and growth.
Therefore, it is encouraging to see comprehensive financial services reform on the Congress's
agenda this year. I believe that the Administration and the Congress deserve credit for their
willingness to confront this complex and difficult
legislative task. I, as well as my colleagues,
support this effort and will seek to be helpful in
advancing the enactment of comprehensive reform.
CONCLUSION
There is clearly no shortage of work for the
Federal Reserve and the Congress, as we seek to
create a vibrant economy and a vital, world-class
financial system. I have found my experience on
the Board over the past year both challenging
and personally rewarding. I hope that I have
made some positive contribution to policy formation as well. I appreciate the opportunity to serve
the public in this position of responsibility. If I
am confirmed as Vice Chairman, I shall devote
my energy and abilities to this additional responsibility and shall look forward to working with
my colleagues on the Board and with this committee on the important and difficult financial and
economic issues facing our nation.
I know that I have only skimmed the surface of
the issues confronting us today, and I shall be
happy to answer any questions the committee
may have.
•
663
Announcements
NEW PROCEDURES REGARDING ACCESS
TO CRA PERFORMANCE
EVALUATIONS
The Federal Reserve Board announced on
June 12, 1991, new procedures for state member
banks to follow regarding the public's access to
Community Reinvestment Act (CRA) Performance Evaluations and ratings. The Board established these new procedures by amending its
Regulation BB (Community Reinvestment). The
new procedures became effective July 11, 1991.
Currently, state member banks are required to
place their CRA Performance Evaluation, which
contains the rating, in a public file within thirty
business days of its receipt. The new procedures
call for only minor modifications to this rule.
The evaluations must be made available for
public inspection, and copies must be provided
to interested parties for a fee not to exceed the
cost of reproduction and mailing. The state member banks' CRA Public Notices must be amended
to reflect availability of the evaluation and rating.
The final rule clarifies the point that a state
member bank may, at its option, prepare a response to the evaluation and make it available in
the public comment file.
ing magnetic tapes or paper, will be increased
significantly, beginning January 1,1992, to reflect
the higher cost of providing those aspects of the
ACH service in an increasingly electronic environment.
The Board has determined that the anticipated
increases in nonelectronic input and output fees
should provide sufficient encouragement for depository institutions to convert to electronic access. Therefore, the Board has not adopted a
proposed per-transaction surcharge to nonelectronic endpoints to be implemented in January
1993.
An all-electronic ACH will improve the efficiency of the ACH mechanism by promoting
timely posting of ACH payments to customer
accounts and will enhance the attractiveness of
the ACH system by allowing greater processing
flexibility.
Also, an all-electronic ACH will enhance the
integrity of the ACH mechanism by reducing
credit and fraud risk, providing a higher level of
security, and improving contingency and disaster
recovery capabilities.
CHANGE IN BOARD
ELECTRONIC ACCESS TO THE FEDERAL
RESERVE BANKS FOR ACH SERVICES
The Federal Reserve Board approved on June
13, 1991, a requirement that all depository institutions that originate or receive commercial automated clearinghouse (ACH) transactions
through the Federal Reserve Banks establish
electronic access to the Reserve Banks for ACH
services by July 1, 1993. The requirement is the
result of a proposal that was issued for public
comment in December 1990.
The Board anticipates that ACH service fees
for nonelectronic input or output media, includ-
STAFF
The Board of Governors has announced the
appointment of Jeffrey C. Marquardt to the official staff as Assistant Director for Payment Systems Studies in the Division of Reserve Bank
Operations and Payment Systems, effective
July 1, 1991.
Mr. Marquardt joined the Board's staff in 1981
as an economist in the Division of International
Finance. He was promoted to senior economist
in October 1988. Mr. Marquardt received his
B.A. from Michigan State University and his
M.A. and Ph.D. in economics from the University of Wisconsin. He also received a J.D. in law
from the same university.
664
Federal Reserve Bulletin • August 1991
SYSTEM MEMBERSHIP: ADMISSION OF
STATE BANKS
Colorado
Aurora
Omnibank Iliff
The following state banks were admitted to membership in the Federal Reserve System during the
period December 1, 1990, through May 31, 1991:
Illinois
Aledo
Bank of Aledo
Arizona
Trumann
Kentucky
Alexandria
First State Bank Arizona
Provident Bank Kentucky
665
Legal Developments
FINAL RULE—AMENDMENT
REINVESTMENT ACT
TO COMMUNITY
The Board of Governors is amending 12 C.F.R. Part
228, its regulation to implement changes in the Community Reinvestment Act of 1977 (CRA) contained in
Title XII of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). This final
rule establishes procedures applicable to state member
banks governing public access to CRA Performance
Evaluations and CRA ratings assigned by the Federal
Reserve during the examination process.
This final rule requires state member banks to
place their CRA Performance Evaluation and CRA
rating in their public comment file (which they are
already required to maintain under existing regulations) within 30 business days of receipt. State member banks must make the evaluation and rating
available for public inspection and provide copies of
the evaluation, upon request, to interested parties.
Banks may charge a reasonable fee for reproduction
of the evaluation and mailing costs, if applicable.
State member banks must also amend their CRA
Public Notices to reflect the public availability of the
evaluation and rating.
Effective July 11, 1991, 12 C.F.R. Part 228 is
amended as follows:
Part
228—(Amended)
Accordingly, the interim rule amending 12 C.F.R. Part
228 which was published at 55 Federal Register
26,624-26,628 on June 28, 1990, is adopted as a final
rule with the following changes:
1. The authority citation for Part 228 continues to read
as follows:
Authority: Community Reinvestment Act of 1977 [title
VIII, Pub. L. 95-128, 91 Stat. 1147 (12 U.S.C. 2901
et seq.)}\ 12 U.S.C. 321, 325, 1814, 1816, 1828, 1842.
2. In section 228.5, paragraphs (a)(3) and (c)(3) are
revised to read as follows:
Section 228.5—Files of public comments and
recent CRA statements.
(a) * * *
(3) Any response to the comments under paragraph
(a)(1) of this section that the bank wishes to make;
and
(c) * * *
(3) The most recent CRA Performance Evaluation
shall, at a minimum, be available at the head office
and at an office in each local community so designated under paragraph (c)(2) of this section. The
bank may respond to the CRA Performance Evaluation and may make the response available in the
same manner as the CRA Performance Evaluation.
FINAL RULE—AMENDMENT TO RULES
REGARDING AVAILABILITY OF INFORMATION
The Board of Governors has adopted as a final rule,
without change, the amendment to 12 C.F.R. Part 261,
its Rules Regarding Availability of Information that
was adopted by interim rule effective January 2, 1991
(55 Federal Register 49,875, December 3, 1990). The
interim rule reflected changes in the direct costs to the
Board to conduct searches, review documents, and
copy documents in response to requests made under
the Freedom of Information Act ("FOIA") by adding
an "appendix A" to 12 C.F.R. 261.10—Freedom of
Information Fee Schedule. "Appendix A" amended
the Board's previous fee schedule established in 1987.
Appendix A will remain the same as that adopted in
the interim rule.
Effective June 27, 1991, for the reasons set forth in
this document, and pursuant to the Board's authority
under the Freedom of Information Reform Act of
1986 (Pub. L. 99-570, 5 U.S.C. 552(a)(4)(A)(i)) to
promulgate rules implementing the FOI Reform Act,
the Board confirms its amendment of 12 C.F.R. Part
261.
666
Federal Reserve Bulletin • August 1991
Part 261—Rules Regarding Availability of
Information
Accordingly, the interim rule amending 12 C.F.R. Part
261 which was published at 55 Federal Register 49,876
on December 3,1990, is adopted as a final rule without
change.
ORDERS ISSUED UNDER BANK
COMPANY ACT
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Boatmen's Bancshares, Inc.
St. Louis, Missouri
Order Approving Acquisition of a Bank
Boatmen's Bancshares, St. Louis, Missouri ("Boatmen's"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"),
has applied for the Board's approval under section
3(a)(3) of the BHC Act (12 U.S.C. § 1842(a)(3)) to
acquire all of the voting shares of First Interstate
Bank of Oklahoma, N.A., Oklahoma City, Oklahoma
("Bank").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (56 Federal Register 13,153 (1991)). The
time for filing comments has expired, and the Board
has considered the applications and all comments
received in light of the factors set forth in section 3(c)
of the BHC Act.
Section 3(d) of the BHC Act, the Douglas Amendment, prohibits the Board from approving an application by a bank holding company to acquire control of
any bank located outside of the bank holding company's home state, unless such acquisition is "specifically authorized by the statute laws of the State in
which [the] bank is located, by language to that effect
and not merely by implication."1 The home state of
Boatmen's is Missouri, while Bank is located in Oklahoma. 2
The statute laws of Oklahoma specifically authorize
any out-of-state bank holding company to acquire a
bank in Oklahoma under the following conditions:
1. 12 U.S.C. § 1842(d).
2. A bank holding company's home state is that state in which the
operations of the bank holding company's banking subsidiaries were
principally conducted on July 1, 1966, or the date on which the
company became a bank holding company, whichever is later.
(12 U.S.C. § 1842).
(1) the Oklahoma bank to be acquired has been in
existence and continuous operation for more than
five years or was chartered before May 7, 1986;
(2) the Oklahoma bank would meet applicable capital adequacy standards immediately after the acquisition; and
(3) the acquirer has complied with certain procedural requirements.3
Upon consummation, Bank will have been chartered
and in existence and continuous operation for more
than five years and will meet all capital requirements.
In addition, the record indicates that Boatmen's has
complied with all applicable procedural requirements.
Accordingly, the proposed acquisition is specifically
authorized by the statute laws of Oklahoma, and
approval of this application is not barred by the
Douglas Amendment.4
Boatmen's is a multi-bank holding company operating banking subsidiaries located in Missouri, Illinois, and Tennessee, and a limited purpose consumer
credit bank in Delaware. Boatmen's is the largest
banking organization in Missouri, controlling total
deposits of approximately $12.2 billion, representing
22.5 percent of the total deposits in commercial
banking organizations in the state. 5 Bank is the third
largest banking institution in Oklahoma, with total
deposits of approximately $648.0 million, representing 2.7 percent of the total deposits in commercial
banking organizations in the state. Consummation of
this proposal would not result in any significant
adverse effect on the concentration of banking resources in Oklahoma.
Boatmen's does not compete directly with Bank in
any banking market. Accordingly, consummation of
this proposal would not result in a significantly
adverse effect on competition in any relevant banking
market.
The financial and managerial resources and future
prospects of Boatmen's, its subsidiary banks, and
Bank are consistent with approval. The Board also
finds that considerations relating to the convenience
3. Okla. Stat. Ann. tit. 6, § 506D. (West Supp. 1991). Oklahoma's
interstate banking law also subjects an out-of-state bank holding
company to any conditions, restrictions and requirements imposed by
the foreign state on acquisitions by Oklahoma banking organizations
that are more restrictive than the conditions imposed by the foreign
state on acquisitions by in-state banking organizations. § 506D(3).
Missouri's interstate statute does not impose any such conditions on
Oklahoma banking organizations. Mo. Ann. Stat. § 362.925 (Vernon
Supp. 1991). In addition, the Missouri and Oklahoma banking departments determined in a 1987 Reciprocal Agreement that the banking
laws of Missouri and Oklahoma permit interstate acquisitions of banks
and bank holding companies between the two states.
4. The office of the Oklahoma Bank Commissioner has indicated
that the proposed acquisition is authorized under Oklahoma law.
5. All banking data are as of December 31, 1990.
Legal Developments
and needs of the communities to be served are consistent with approval.
Based on the foregoing and other facts of record,
the Board has determined that the application should
be, and hereby is, approved. The transaction shall
not be consummated before the thirtieth calendar day
following the effective date of this Order, or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of St.
Louis, pursuant to delegated authority.
By order of the Board of Governors, effective
June 17, 1991.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, and Mullins.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
First Commercial Holding Corporation
Asheville, North Carolina
Order Approving Acquisition of a Bank
First Commercial Holding Corporation, Asheville,
North Carolina ("First Commercial"), a bank holding
company within the meaning of the Bank Holding
Company Act ("BHC Act"), has applied under section 3(a)(3) of the BHC Act to acquire all of the voting
shares of The Bank of Iredell, Statesville, North
Carolina ("Iredell").
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (55 Federal Register 29,895 (1990)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
First Commercial, a one bank holding company, is
the 30th largest commercial banking organization in
North Carolina, controlling deposits of $95.0 million,
representing less than 1 percent of total deposits in
commercial banking organizations in the state. Iredell is the 45th largest commercial banking organization in North Carolina, controlling deposits of $54.6
million, representing less than 1 percent of total
deposits in commercial banking organizations in the
state.1 Upon consummation of this proposal, First
Commercial would become the 24th largest banking
organization in North Carolina, controlling deposits
1. Data are as of December 31, 1990.
661
of $149.7 million, representing less than 1 percent of
total deposits in commercial banks in the state.
Consummation of this proposal would not increase
significantly the concentration of banking resources
in North Carolina.
First Commercial and Iredell do not compete directly in any banking market. Accordingly, consummation of the proposal would not have any significant
adverse effect on existing competition in any relevant
banking market. Consummation also would not have
any significant adverse effect on probable future
competition in any relevant banking market. The
financial and managerial resources and future prospects of First Commercial and Iredell also are consistent with approval.
In considering the convenience and needs of the
communities to be served, the Board is required,
under
the
Community
Reinvestment
Act
(12 U.S.C. § 2901 et seq.) ("CRA"), to consider an
institution's record of serving the credit needs of the
community, including low- and moderate-income
neighborhoods. The CRA requires the federal financial supervisory agencies to encourage financial institutions to help meet the credit needs of the local
communities in which they operate consistent with
the safe and sound operation of such institutions. To
accomplish this end, the CRA requires the appropriate federal supervisory authority to "assess an institution's record of meeting the credit needs of its
entire community, including low- and moderate-income neighborhoods, consistent with the safe and
sound operation of the institution." 2
In this regard, the Board has considered comments
filed by the Asheville Reinvestment Alliance ("Protestant"). Protestant alleges that components of
Bank's CRA program are ineffective, including its
outreach programs to ascertain the credit needs of its
entire community, particularly low- and moderateincome areas, call program for minority-owned and
small businesses, and advertising and marketing
techniques to target minority and low- and moderateincome communities. In addition, the Protestant
notes the following deficiencies relating to specific
parts of Bank's service area:
(1) lack of sufficient involvement in the development
of low-income housing and minority-owned businesses in the City of Asheville, North Carolina;
(2) failure to develop a policy on branch closings and
placement of the Asheville branches in locations
more accessible to persons in affluent neighborhoods than persons in low- and moderate-income
neighborhoods of Asheville; and
2. 12 U.S.C. § 2901.
668
Federal Reserve Bulletin • August 1991
(3) exclusion of Madison County, North Carolina,
from its service community, thereby inaccurately
describing its service community.3
The Board has carefully reviewed the CRA performance record of First Commercial's subsidiary bank,
First Commercial Bank, Asheville, North Carolina
("Bank"), as well as comments received from Protestant and First Commercial's responses to those comments in light of the CRA, the Board's regulations, and
the Statement of the Federal Financial Supervisory
Agencies Regarding the Community Reinvestment Act
("Agency CRA Statement").4 The Agency CRA
Statement provides guidance regarding the types of
policies and procedures that supervisory agencies believe financial institutions should have in place in order
to fulfill their responsibilities under the CRA on an
ongoing basis and the procedures that the supervisory
agencies will use during the application process to
review an institution's CRA compliance and performance. The Agency CRA Statement also suggests that
decisions by agencies to allow financial institutions to
expand will be made pursuant to an analysis of the
institution's overall CRA performance and will be
based on the actual record of performance of the
institution.5
Initially, the Board notes that Bank received a
satisfactory rating from its primary regulator in the
most recent examination of its CRA performance
("the CRA examination").6 The Agency CRA Statement provides that a CRA examination is an important
and often controlling factor where, as in this case,
specific issues raised by Protestant were incorporated
in the review of Bank. Accordingly, the Board has
considered the allegations of Protestants discussed
below in light of this satisfactory rating.
Components of CRA Program
Bank has initiated an outreach program whereby officers meet with individuals and groups representing
civic, governmental, and business interests located in
3. Protestant also alleges that Bank has an insufficient number of
minority full-time employees. Although the Board fully supports
affirmative action programs designed to promote equal opportunity in
every aspect of a bank's personnel policies and practices in the
employment, development, advancement, and treatment of employees and applicants for employment, the Board believes that the alleged
deficiencies in Bank's general personnel practices are beyond the
scope of the factors assessed under the CRA and under the convenience and needs requirement of the BHC Act. See Fifth Third Bank,
77 Federal Reserve Bulletin 347, 348 n.7 (1991).
4. 54 Federal Register 13,742 (1989).
5. Id.
6. The Federal Deposit Insurance Corporation ("FDIC") conducted an examination of Bank's performance under the CRA as of
May 13, 1991.
its delineated community. For example, Bank's CRA
officer has met with the Neighborhood Housing Services of Asheville, North Carolina, Inc. ("NHS"), an
agency funded by the Department of Housing and
Urban Development Community Development Block
Grant Program and designed to operate a revolving
loan program for low- and moderate-income residents
in the Montford neighborhood of Asheville, North
Carolina.7 In addition, each officer is responsible for
making a minimum of three contacts per calendar
quarter with community leaders, civic and community
groups, and forums to discuss community credit needs
and services.8
Bank's calling program also includes visits to small
and medium-sized companies and individual business
leaders throughout its delineated area.9 These calls are
documented and reviewed monthly, and the results of
this program indicate that the calls reach a broad
segment of the business community, including minority businesses. 10 In addition, Bank is a member of the
Small Business and Women and Minority Committees
of the Asheville Chamber of Commerce, and a variety
of other business-oriented organizations.11
Bank also has increased the involvement of its board
of directors in its CRA policies and credit ascertainment efforts. Bank's board has approved a CRA policy
that outlines goals and objectives to improve Bank's
CRA program and specifies the oversight responsibilities of the board. In addition, the board has appointed
a senior Bank official to serve as a CRA officer, and
has created a CRA committee that meets monthly,
oversees all CRA activities, and ensures that information is obtained from sources throughout the community. Board members are regularly briefed on CRA
matters, and submit quarterly reports detailing the
7. This program is designed to provide credit assistance to residents
in low- and moderate-income census tracts 2 and 3 of the Asheville
MSA.
8. Bank has established contacts with several civic organizations,
including the Asheville Community Relations Office, the AshevilleBuncombe Community Relations Council, and the Western North
Carolina Habitat for Humanity.
9. Bank is a participating bank in the Small Business Administration
Guaranteed Loan Program.
10. Calls are summarized and reviewed monthly by Bank's CRA
Compliance Officer, Business Development Officer, and board of
directors. In addition, calls made to assist low- and moderate-income
individuals and to discuss government-assisted programs are listed
separately.
11. These organizations include: the Asheville-Buncombe Development Corporation, the Downtown Development Corporation, the
Small Business Council of the Asheville Chamber of Commerce, the
Small Business Administration Service Corporation of Retired Executives Small Business Workshop, the Asheville Board of Realtors, the
Home Builders of Asheville, and the Mortgage Lenders of Western
North Carolina. Bank is also involved with the Asheville Downtown
Development Commission and Industrial Development Board, two
organizations designed to generate business and economic growth,
and foster community redevelopment.
Legal Developments
activities and contacts that they have made during the
reported quarter. Minutes from board meetings reflect
the directors' discussion of Bank's CRA program and
the board's emphasis on Bank's efforts in low- and
moderate-income areas.
In addition, Bank has taken steps to improve the
marketing and advertising of its services to target all
areas of its community. Bank has begun to advertise in
the Asheville Advocate, a local minority-owned newspaper designed to reach the minority population, and
in The Black Pages, a directory of local minorityowned businesses. Bank also has increased its advertising to include commercials that promote specific
credit products of Bank, including deposit services,
home improvement loans, and residential mortgages.12
Mortgage rate and service information is promoted in
local papers and through Bank's contacts with all of
the realty firms in the area, including Asheville's only
minority-owned realty firm. Bank has also initiated
plans to conduct a direct mail campaign focusing on
persons who live in low- to moderate-income areas
based on zip codes.
Finally, Bank has improved its documentation and
analysis of the geographic distribution of its credit
extensions. Bank has provided detailed information
separated by county showing the number of loans
approved and denied in the following five categories:
retail/construction loans, commercial loans, commercial real estate loans, wholesale mortgage loans, and
consumer real estate loans. This analysis shows that
Bank approved approximately 86.2 percent of these
types of loan applications for the period 1988 to 1990.
Specific Portions of Service Area
The record indicates that Bank has undertaken a
number of steps to address the credit needs of low- and
moderate-income neighborhoods, including the portions of Bank's service area identified in Protestant's
comments. Bank has provided a geographic survey of
all its lending activities in Buncombe County which
constitutes all of the Asheville MSA. 13 The survey
demonstrates that for 1990, approximately 10 percent
of all outstanding loans by Bank in Buncombe County
were made within low- and moderate-income census
tracts. This loan volume compares favorably with the
12. In response to suggestions from community groups, Bank now
uses a variety of models of different ethnic backgrounds in its
television commercials.
13. The CRA examination found as a general matter that Bank's
extensions of credit and denials demonstrated a reasonable penetration of all segments of Bank's delineated community. In addition,
geocoding of Bank's loans indicated a reasonable distribution of loans,
including loans in low- and moderate-income areas. The CRA examination also found no evidence of prohibited discriminatory or other
illegal credit practices.
661
fact that approximately 12 percent of Buncombe
County's population resides in low- and moderateincome census tracts.14 In addition, Bank approved all
applications in Buncombe County for mortgages from
minority applicants in 1990. Bank is also a member of
the Community Investment Corporation of North
Carolina, an organization that provides financing services for low- to moderate-income housing projects in
the Asheville area.15
Bank's small business activities include government
lending programs such as SB A. 16 In addition, Bank is
a participant in the Community Loan Pool, an organization of financial institutions in the Asheville area
established to provide a funding source for minority
businesses that do not qualify for conventional bank
financing or SB A programs. Bank's president and
CEO is also a director of the Asheville Downtown
Development Commission, an organization that has
administered $67 million in reinvestment funds over
the last nine years. Bank has co-sponsored a workshop
on small business financing and has arranged to sponsor membership of a minority business in the Asheville
Chamber of Commerce's Member Share Program.
First Commercial has adopted a specific written
policy with regard to branch closings, which provides
for the board of directors both to analyze the impact of
any proposed office closing on the local community
and to consider alternative courses of action.17 In the
Asheville area, Bank is the only bank that operates on
Saturday and has extended hours of operation
throughout the week in order to improve its service to
Bank's entire community.18 Bank's North and South
branch offices in Asheville are located on public bus
routes and offer full services and extended hours of
operation. The CRA examination also concluded that
Bank's definition of its community was reasonable and
did not unreasonably exclude a portion of Bank's
service area as alleged by Protestant.19
14. Bank makes $1,500 consumer loans, which are considered the
lowest minimum loan in its market. Bank also offers senior citizen and
low-cost checking accounts.
15. Bank also participates in both FHA and VA lending programs.
In the last quarter of 1990, Bank's mortgage loan division originated
and sold 57 VA and FHA type home mortgages in the aggregate
amount of approximately $3.6 million.
16. Bank participates in the SBA 504 guaranteed loan program
through the Asheville-Buncombe Development program, a certified
development company.
17. The policy also requires notices of at least 90 days prior to
changes in service and must include Bank's rationale for the decision.
18. All of Bank's branches are open until at least 5:00 p.m., and two
of its Asheville branches close at 7:00 p.m. Bank's mortgage loan
officers also accept mortgage applications at an applicant's home or
place of work.
19. Bank received only 58 loan applications from residents in
Madison County for the two-year period from 1988 to 1990. Bank's
total lending in Madison County represents less than 1 percent of its
total lending in its entire service community over this same period. In
670
Federal Reserve Bulletin • August 1991
For the reasons discussed above, and on the basis of
all facts of record, the Board believes that Bank's
CRA record is consistent with approval of this application. 20 The Board expects Bank to continue in its
efforts to strengthen its CRA performance.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The acquisition shall not be
consummated before the thirtieth calendar day following the effective date of this Order; or later than three
months following the effective date of this Order
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Richmond,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 17, 1991.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, and Mullins.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
Orders Issued Under Section 4 of the Bank
Holding Company Act
The Dai-Ichi Kangyo Bank, Limited
Tokyo,Japan
Order Approving Application to Engage in Various
Interest Rate and Currency Swap Activities
The Dai-Ichi Kangyo Bank, Limited, Tokyo, Japan
("Dai-Ichi"), a bank holding company within the
meaning of the Bank Holding Company Act ("BHC
Act"), has applied under section 4(c)(8) of the BHC
Act (12 U.S.C. § 1843(c)(8)), and section 225.23(a)(3)
of the Board's Regulation Y (12 C.F.R. 225.23(a)(3))
to engage de novo through its subsidiary, DKB Credit
addition, in 1989 Bank included within its community a portion of
Madison County within a ten-mile radius of Bank's Weaverville
Branch.
20. Protestant has also requested that the Board hold a public
hearing or meeting to assess further facts surrounding Bank's CRA
performance. Generally, under the Board's rules, the Board may, in
its discretion, hold a public hearing or meeting on an application to
clarify factual issues related to the application and to provide an
opportunity for testimony, if appropriate. 12 C.F.R. 262.3(e) and
262.25(d).
The Board has carefully considered this request. In the Board's
view, the parties have had ample opportunity to present submissions,
and Protestant has submitted substantial written comments that have
been considered by the Board. In light of these facts, the Board has
determined that a public meeting or hearing is not necessary to clarify
the factual record in this application, or otherwise warranted in this
case. Accordingly, the request for a public meeting or hearing on this
application is hereby denied.
Corporation, New York, New York ("Company"), in
the following activities:
(1) Intermediating in the international swap markets
by acting as an originator and principal in interest
rate swap and currency swap transactions;
(2) Acting as an originator and principal with respect
to certain interest rate and currency risk-management products such as caps, floors and collars, as
well as options on swaps, caps, floors and collars
("swap derivative products");
(3) Acting as a broker or agent with respect to the
foregoing transactions or instruments; and
(4) Acting as adviser to institutional customers regarding financial strategies involving interest rate
and currency swaps and swap derivative products.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (56 Federal Register 19,854 (1991)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 4 of the
BHC Act.
With total consolidated assets equivalent to approximately $457 billion, Dai-Ichi is the largest banking
organization in the world.1 In the United States,
Dai-Ichi owns a bank subsidiary in Los Angeles,
California; agencies in Atlanta, Georgia; San Francisco, California; and Los Angeles, California; and
branches in New York, New York; and Chicago,
Illinois. It engages in various nonbanking activities
through a number of subsidiaries, including Company.
The Board previously has determined by order that
the proposed activities are closely related to banking
and permissible for bank holding companies within the
meaning of section 4(c)(8) of the BHC Act. 2 Dai-Ichi
proposes to engage in these swap activities in accordance with all of the provisions and conditions set
forth in those orders.
In order to approve this application, the Board is
required to determine that the performance of the
proposed activities by Dai-Ichi "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8).
Company appears to be capable of managing the
risks associated with the proposed activities. Dai-Ichi,
1. Data are as of March 31, 1991.
2. See, e.g., The Sanwa Bank, Limited, 11 Federal Reserve Bulletin
64 (1991); The Fuji Bank, Limited, 76 Federal Reserve Bulletin 768
(1990); The Sumitomo Bank, Limited, 75 Federal Reserve Bulletin 582
(1989).
Legal Developments
which has extensive experience in lending and financing services worldwide, has undertaken to provide
credit screening for all potential counterparties of
Company through its credit desk services in Tokyo,
Japan. In appropriate cases, Company will obtain a
letter of credit on behalf of, or collateral from, a
counterparty. In addition, Company will establish
separate credit risk exposure limits for each swap
counterparty. Company will monitor this exposure on
an ongoing basis, in the aggregate and with respect to
each counterparty. Senior management will be periodically informed of the potential risk to which Company
is exposed.
In order to manage the risk associated with adverse
changes in interest or currency exchange rates ("price
risk"), Company will seek to match all the swaps and
related instruments in which it is principal and will
hedge any unmatched positions pending a suitable
match. Company will not enter into unmatched or
unhedged swaps for its own account for speculative
purposes. Company's management will set absolute
limits on the level of risk to which its swap portfolio
may be exposed. Company's exposure to price risk
will be monitored by both business management and
internal auditing personnel to guarantee compliance
with the risk limitations imposed by management.
Auditing personnel will report directly to senior management to ensure that any violations of portfolio risk
limitations are reported and corrected.
With respect to the risk associated with the potential
for differences between the floating rate indices on two
matched or hedged swaps ("basis risk"), Company's
management will impose absolute limits on the aggregate basis risk to which Company's swaps portfolio
may be exposed. If the level of risk threatens to
exceed the limits at any time, Company will actively
seek to enter into matching transactions for its unmatched, hedged positions. Company's internal auditing staff, together with management, will monitor
compliance with the management-imposed basis risk
limits.3
In addition, Company intends to minimize operations risk through the recruitment and training of an
experienced back-office support staff and the use of a
separate operational and data processing structure for
processing swap and hedging transactions.
In order to minimize any possible conflicts of interests between Company's role as a principal or broker
in swap transactions and its role as advisor to potential
3. In addition to price and basis risk, the value of a swap option is
subject to market expectations of the future direction and rate of
change in interest rates, or volatility risk. Company's management
will impose absolute limits on the level of volatility risk to which
Company's swap portfolio may be exposed.
661
counterparties, Company will disclose to each customer the fact that Company may have an interest as a
counterparty principal or broker in the course of
action ultimately chosen by the customer. Also, in any
case in which Company has an interest in a specific
transaction as an intermediary or principal, Company
will advise its customer of that fact before recommending participation in that transaction.4 In addition,
Company's advisory services will be offered only to
sophisticated institutional customers who would be
unlikely to place undue reliance on investment advice
received and better able to detect investment advice
motivated by self-interest.5
The Board has expressed its concerns regarding
conflicts of interests and related adverse effects that,
absent certain limitations, may be associated with
financial advisory activities. In order to address these
potential adverse effects, Dai-Ichi has committed that:
(1) Company's financial advisory activities will not
encompass the performance of routine tasks or
operations for a client on a daily or continuous
basis;
(2) Disclosure will be made to each potential client
of Company that Company is an affiliate of Dai-Ichi;
(3) Company will not make available to Dai-Ichi or
any of Dai-Ichi's subsidiaries confidential information received from Company's clients, except with
the client's consent; and
(4) Advice rendered by Company on an explicit fee
basis will be without regard to correspondent balances maintained by a client of Company at Dai-Ichi
or any of Dai-Ichi's depository subsidiaries.
In every case involving a nonbanking acquisition by
a bank holding company under section 4 of the BHC
Act, the Board considers the financial condition and
4. In any transaction in which Company arranges a swap transaction
between an affiliate and a third party, the third party will be informed
that Company is acting on behalf of an affiliate.
5. Dai-Ichi defines an institutional customer as:
(A) a bank (acting in an individual or fiduciary capacity); an
insurance company; a registered investment company under the
Investment Company Act of 1940; or a corporation, partnership,
trust, proprietorship, organization or institutional entity with
assets exceeding $1 million that regularly engages in transactions
in securities;
(B) an employee benefit plan with assets exceeding $1 million or
whose investment decisions are made by a bank, insurance
company or investment advisor registered under the Investment
Advisers Act of 1940;
(C) a natural person whose individual net worth (or joint net
worth with his or her spouse) at the time of receipt of Company's
services exceeds $1 million;
(D) a broker-dealer or options trader registered under the Securities Exchange Act of 1934; or other securities, investment or
banking professional;
(E) any government or government entity; or
(F) an entity all of the equity owners of which are institutional
customers.
672
Federal Reserve Bulletin • August 1991
resources of the applicant and its subsidiaries and the
effect of the transaction on these resources.6 After
making adjustments to reflect Japanese banking and
accounting principles, including consideration of a
portion of unrealized appreciation in Dai-Ichi's portfolio of equity securities the Board concludes that
financial considerations are consistent with approval
of this application. The managerial resources of DaiIchi also are consistent with approval.
Consummation of the proposal would provide added
convenience to Dai-Ichi's customers. In addition, the
Board expects that the de novo entry of Dai-Ichi into
the market for these activities would increase the level
of competition among providers of these services. Under the framework established in this and prior decisions, consummation of this proposal is not likely to
result in any significant adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices. Accordingly, the Board has determined that the
performance of the proposed activities by Dai-Ichi can
reasonably be expected to produce benefits to the
public.
Based on the foregoing and other facts of record, the
Board has determined to, and hereby does, approve the
application subject to the commitments made by DaiIchi, as well as all of the terms and conditions set forth
in this order and in the above-noted Board orders that
relate to these activities. The Board's determination is
also subject to all of the conditions set forth in Regulation Y, including those in sections 225.4(d) and
225.23(b), and to the Board's authority to require
modification or termination of the activities of a bank
holding company or any of its subsidiaries as the Board
finds necessary to assure compliance with, and to
prevent evasion of, the provisions of the BHC Act and
the Board's regulations and orders issued thereunder.
This transaction shall not be consummated later
than three months after the effective date of this order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of San Francisco, pursuant to delegated authority.
By order of the Board of Governors, effective
June 10, 1991.
Voting for this action: Chairman Greenspan and Governors
Kelley, La Ware, and Mullins. Absent and not voting: Governor Angell.
J E N N I F E R J . JOHNSON
Associate Secretary of the Board
6. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal
Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal
Bulletin 155, 156 (1987).
Reserve
Reserve
Dauphin Deposit Corporation
Harrisburg, Pennsylvania
Order Approving Application to Acquire a
Broker-Dealer and Thereby Underwrite and Deal in
All Types of Securities, Engage in Other Securities
Related Activities, and Engage in Other Nonbanking
Activities
Dauphin Deposit Corporation, Harrisburg, Pennsylvania ("Applicant"), a bank holding company subject to
the Bank Holding Company Act (12 U.S.C. § 1841,
et seq.) (the "BHC Act") has applied, pursuant to
section 4(c)(8) of the BHC Act, and section
225.23(a)(3) of the Board's Regulation Y (12 C.F.R.
225.23(a)(3)), for approval to acquire Hopper, Soliday
& Co., Inc., Lancaster, Pennsylvania ("Company"),
and thereby engage, through Company, in the following activities:
(1) underwriting and dealing in securities that state
member banks are permitted to underwrite and deal
in under Section 16 of the Banking Act of 1933,
12 U.S.C. § 24(Seventh), (the "Glass-Steagall
Act"), (hereinafter "bank-eligible securities"), as
permitted by section 225.25(b)(16) of Regulation Y,
12 C.F.R. 225.25(b)(16);
(2) underwriting and dealing in, on a limited basis,
all other types of debt securities, including without
limitation, municipal revenue bonds, mortgagerelated securities, consumer-receivable-related securities, commercial paper, sovereign debt securities, corporate debt, debt securities convertible into
equity securities, and securities issued by a trust or
other vehicle secured by or representing interests in
debt obligations ("bank-ineligible debt securities");
(3) underwriting and dealing in, on a limited basis,
equity securities, including without limitation, common stock, preferred stock, American Depositary
Receipts, options, limited partnership units, warrants, and securities issued by closed-end investment companies but not securities issued by openend investment companies ("bank-ineligible equity
securities");
(4) acting as agent in the private placement of all
types of securities, including providing related advisory services, and buying and selling securities on
the order of investors as a "riskless" principal;
(5) providing "full-service brokerage" (i.e., investment advisory and brokerage services separately
and on a combined basis) to both institutional and
retail customers;
(6) providing financial advice to state and local
governments, including advice with respect to the
issuance of their securities, pursuant to section
Legal Developments
225.25(b)(4)(v) of Regulation Y, 12 C.F.R.
225.25(b)(4)(v); and
(7) providing advice in connection with merger,
acquisition, divestiture, recapitalization and financing transactions, and structuring and arranging loan
syndications for financial and non-financial institutions; performing valuations for financial and nonfinancial institutions; providing fairness opinions in
connection with mergers, acquisitions and similar
transactions for financial and non-financial institutions, and conducting feasibility studies for corporations (collectively, "financial advisory services").
Notice of the application, affording interested persons an opportunity to submit comments on the proposal, has been published (56 Federal Register 19,855
(1991)). The time for filing comments has expired, and
the Board has considered the application and all
comments received in light of the public interest
factors set forth in section 4(c)(8) of the BHC Act.
Applicant, with total consolidated assets of $3.4
billion, is the sixth largest banking organization in
Pennsylvania.1 It operates one banking subsidiary in
Pennsylvania and engages in community development
and insurance agency and underwriting activities pursuant to 12 C.F.R. 225.25(b)(6) and (8), through nonbanking subsidiaries.
Underwriting and Dealing in Bank-Ineligible
Securities
The Board has determined that, subject to the prudential framework of limitations established in previous
decisions to address the potential for conflicts of
interests, unsound banking practices, or other adverse
effects, the proposed underwriting and dealing activities are so closely related to banking as to be proper
incidents thereto within the meaning of section 4(c)(8)
of the BHC Act. 2 The Board also has determined that
the conduct of these securities underwriting and dealing activities is consistent with section 20 of the
1. Data are as of December 31, 1990.
2. J.P. Morgan & Company Incorporated, The Chase Manhattan
Corporation, Bankers Trust New York Corporation, Citicorp, and
Security Pacific Corporation, 75 Federal Reserve Bulletin 192 (1989)
("J.P. Morgan & Company Incorporated, et a/."), 75 Federal Reserve Bulletin 192 (1989); Chemical New York Corporation, et al., 73
Federal Reserve Bulletin 731 (1987); Citicorp, et al., 73 Federal
Reserve Bulletin 473 (1987), ajfd sub nom., Securities Industry
Association v. Board of Governors of the Federal Reserve System, 839
F.2d 47 (2d Cir. 1988), cert, denied, 486 U.S. 1059 (1988); as modified
by Order, dated September 21, 1989, 75 Federal Reserve Bulletin 751
(1989) ("Modification Order"), a f f d sub nom., Securities Industry
Association v. Board of Governors of the Federal Reserve System, 900
F.2d 360 (D.C. Cir. 1990) (collectively, "section 20 orders"). The
Board hereby adopts and incorporates herein by reference the reasoning and analysis from the section 20 orders.
661
Glass-Steagall Act, provided that the underwriting
and dealing subsidiary derives no more than 10 percent
of its total gross revenue from underwriting and dealing in bank-ineligible securities over any two-year
period.3 Applicant has committed that Company will
conduct its underwriting and dealing activities with
respect to bank-ineligible securities subject to the 10
percent revenue test established by the Board in its
previous orders, and to the prudential limitations
established by the Board in its J.P. Morgan & Company Incorporated, et al. order as modified by the
Modification Order.4
Applicant's proposal is broad enough to include
underwriting and dealing in shares of closed-end investment companies and unit investment trusts (but
not open-end investment companies, i.e., mutual
funds). Underwriting or dealing activities involving
investment company securities under this Order must
be conducted in accordance with the limitations contained in the existing provisions of Regulation Y
authorizing bank holding companies to provide advisory activities to investment companies. In particular,
Regulation Y provides that a bank holding company
and its subsidiaries may not purchase for their own
account, or engage directly or indirectly in the sale or
distribution of, the securities of any investment company that the holding company advises or sponsors.
12 C.F.R. 225.125(g)(1)(h). This regulation applies to
all types of investment companies, including unit
investment trusts.
Private Placement and "Riskless Principal"
Activities
The Board previously has determined that, subject to
certain prudential limitations established to address
the potential for conflicts of interests, unsound banking practices or other adverse effects, the proposed
private placement and riskless principal activities are
so closely related to banking as to be proper incidents
thereto within the meaning of section 4(c)(8) of the
BHC Act. 5 The Board also has determined that acting
3. Modification Order; and J.P. Morgan & Company Incorporated,
et al.
4. Compliance with the revenue limits shall be calculated in the
manner set forth in J.P. Morgan & Company Incorporated, et al., at
196-97. In light of the fact that Applicant is acquiring a going concern
with outstanding underwriting commitments, the Board believes that
allowing Company to calculate compliance with the revenue limitation
on an annualized basis during the first year following consummation of
the acquisition and thereafter on a quarterly basis would be consistent
with J.P. Morgan & Company Incorporated, et al.
5. J.P. Morgan & Company Incorporated, 76 Federal Reserve
Bulletin 26 (1990) ("J.P. Morgan"); Bankers Trust New York Corporation, 75 Federal Reserve Bulletin 829 (1989) ("Bankers Trust").
Applicant has not proposed that its nonbank subsidiaries purchase
securities privately placed by Company nor proposed that Applicant
674
Federal Reserve Bulletin • August 1991
as agent in the private placement of securities and
purchasing and selling securities on the order of investors as a "riskless principal" do not constitute underwriting and dealing in securities for purposes of section 20 of the Glass-Steagall Act, and that revenue
derived from these activities is not subject to the 10
percent revenue limitation on ineligible securities underwriting and dealing.6 Applicant has committed that
Company will conduct its private placement and "riskless principal" activities using the same methods and
procedures, and subject to the same prudential limitations established by the Board in the Bankers Trust
and the J.P. Morgan orders.7
Securities Brokerage
Activities
The Board previously has determined by order that
full-service brokerage activities are permissible for
bank holding companies under section 4(c)(8) of the
BHC Act. 8 Applicant proposes that Company engage
in these activities in accordance with all of the conditions set forth in those orders.9 In addition, Company
will provide discretionary investment management services for institutional customers only, subject to the
same terms and conditions as previously approved by
the Board.10
or its subsidiaries lend to an issuer for the purpose of repaying
securities placed by Company.
6 .Id.
7. In previous orders approving riskless principal activities, the
Board has relied on commitments by bank holding companies to
refrain from entering quotes for specific securities in the NASDAQ or
any other dealer quotation system in connection with riskless principal transactions. Bankers Trust, at 832. Applicant proposes that
Company, in acting as a riskless principal, may (i) enter bid or ask
quotations; or publish "offering wanted" or "bid wanted" notices on
trading systems other than an exchange or the NASDAQ. In order to
ensure that Company would not hold itself out as a market maker with
respect to securities for which it acts as riskless principal, Applicant
has committed that Company would not enter price quotations on
different sides of the market for a particular security for two business
days. In other words, after entering a " b i d " quote with respect to the
same security, and vice versa. In view of the fact that Company would
otherwise conduct its riskless principal activities in a manner consistent with Bankers Trust and J.P. Morgan, the Board believes that
Company's proposal is consistent with a determination that these
activities do not constitute underwriting and dealing in securities for
purposes of the Glass-Steagall Act.
8. PNC Financial Corporation, 75 Federal Reserve Bulletin 396
(1989); Bank of New England Corporation, 74 Federal Reserve
Bulletin 700 (1988). See also The Sanwa Bank, Limited, 76 Federal
Reserve Bulletin 568 (1990).
9. Applicant has committed that Company will not provide investment advice with respect to shares of investment companies that are
advised by Applicant or any of its affiliates. Company may broker
shares of investment companies that are advised by banking affiliates
of Company but, in accordance with the requirements of the Board's
order in Norwest Corporation, 76 Federal Reserve Bulletin 79 (1990),
Company may not broker shares of investment companies that are
advised by Company or any nonbank affiliates.
10. See J.P. Morgan & Co. Incorporated, 73 Federal Reserve
Bulletin 810 (1987).
Financial Advisory
Activities
Applicant proposes that Company provide advice in
connection with merger, acquisition, divestiture, recapitalization and financing transactions, and structuring and arranging loan syndications for financial and
non-financial institutions; perform valuations for financial and non-financial institutions; provide fairness
opinions in connection with mergers, acquisitions and
similar transactions for financial and non-financial
institutions, and conduct feasibility studies for corporations (collectively, "financial advisory services").
The Board previously has approved these activities for
bank holding companies. See Signet Banking Corporation, 73 Federal Reserve Bulletin 59 (1987), and
Banc One Corporation, 76 Federal Reserve Bulletin
756 (1990). Applicant proposes to conduct these activities in accordance with the commitments listed in the
Board's previous orders.
Financial Factors, Managerial Resources and Other
Considerations
The Board has reviewed the capitalization of both
Applicant and Company in accordance with the standards set forth in the J.P. Morgan & Company,
Incorporated order, and finds the capitalization of
each to be consistent with approval of the proposal.
With respect to the capitalization of Company, approval of the requested activities is limited to a level
consistent with the projections of position size and
types of securities contained in the application. Accordingly, the Board concludes that financial considerations are consistent with approval of the application. The managerial resources of Applicant also are
consistent with approval.
In order to approve this application, the Board is
required to determine that the performance of the
proposed activities by Applicant "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8).
Under the framework established in this and prior
decisions, consummation of this proposal is not likely
to result in any significant adverse effects, such as
undue concentration of resources, decreased or unfair
competition, conflicts of interest, or unsound banking
practices. Based on the foregoing and other facts of
record, and subject to the commitments made by
Applicant, the Board has determined that the performance of the proposed activities by Applicant can
reasonably be expected to produce public benefits
which would outweigh possible adverse effects under
Legal Developments
the proper incident to banking standard of section
4(c)(8) of the BHC Act."
Accordingly, and for the reasons set forth in the
section 20 orders, the Board concludes that Applicant's proposal to engage through Company in the
requested activities is consistent with the
Glass-Steagall Act and is so closely related to banking
as to be a proper incident thereto within the meaning
of section 4(c)(8) of the BHC Act, provided Applicant
limits Company's activities as provided in the section
20 orders.
The application is hereby approved subject to all the
terms and conditions of those orders and this order.
The Board's approval of this proposal extends only to
activities conducted within the conditions of those
orders and this order, including the Board's reservation of authority to establish additional limitations to
ensure that Company's activities are consistent with
safety and soundness, conflict of interest, and other
relevant considerations under the BHC Act. Underwriting and dealing in any manner other than as
approved in the section 20 orders is not within the
scope of the Board's approval and is not authorized for
Company.
Included among these conditions is that Company
may not commence the proposed debt or equity securities underwriting and dealing activities until the
Board has determined that Applicant and Company
have established policies and procedures to ensure
compliance with the requirements of this order, including computer, audit and accounting systems, internal risk management controls and the necessary
operational and managerial infrastructure. In this regard, the Board has reviewed the report of the Federal
Reserve Bank of Philadelphia relating to the operational and managerial infrastructure of Company. On
the basis of this review, the Board has determined that
Company has in place the managerial and operational
infrastructure and other policies and procedures necessary to comply with the requirements of this order,
and that Company may commence underwriting and
dealing in debt or equity securities as permitted by,
and subject to, the conditions of this order.
The Board's determination is subject to all of the
conditions set forth in the Board's Regulation Y,
11. Company may also purchase and sell for its own account
futures, forwards, options, and options on futures contracts on
ineligible securities, as incidents to the proposed ineligible securities
underwriting and dealing activities. Any activity conducted as a
necessary incident to the ineligible securities underwriting and dealing
activities must be treated as part of the ineligible securities activity
unless Company has received specific approval under section 4(c)(8)
of the BHC Act to conduct the activity independently. Until such
approval is obtained, any revenues from the incidental activity must
be counted as ineligible revenue subject to the 10 percent gross
revenue limitation set forth in the Modification Order.
661
including those in sections 225.4(d) and 225.23(b), and
to the Board's authority to require modification or
termination of the activities of a bank holding company or any of its subsidiaries as the Board finds
necessary to assure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the
Board's regulations and orders issued thereunder.
This transaction shall not be consummated later
than three months after the effective date of this order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Philadelphia,
pursuant to delegated authority.
By order of the Board of Governors, effective
June 24, 1991.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, La Ware, and Mullins.
JENNIFER J . JOHNSON
Associate Secretary of the Board
Orders Issued Under Bank Merger Act
Central Fidelity Bank
Richmond, Virginia
Order Approving the Establishment of a Branch
Central Fidelity Bank, Richmond, Virginia ("Central
Fidelity"), a state member bank, has applied for the
Board's approval, pursuant to section 9 of the Federal
Reserve Act (12 U.S.C. § 321), to establish a fullservice branch within the Westminster Canterbury
retirement community, 501 V.E.S. Road, Lynchburg,
Virginia.
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published. The time for filing comments has
expired and the Board has considered the application
and all comments received in light of the factors
contained in section 9 of the Federal Reserve Act.
Central Fidelity is one of two wholly owned banking
subsidiaries of Central Fidelity Banks, Inc., Richmond, Virginia, which operates subsidiary banks in
Virginia. Central Fidelity has its main office in Richmond, Virginia, and operates its branches throughout
the state.
In reviewing an application for a deposit facility,
including the establishment of a domestic branch or
other facility with the ability to accept deposits, the
Board is required, under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.)("CRA"), to
consider the institution's record of serving the credit
needs of the community, including low- and moderateincome neighborhoods. The CRA requires the federal
676
Federal Reserve Bulletin • August 1991
financial supervisory agencies to encourage financial
institutions to help meet the credit needs of the local
communities in which they operate, consistent with
the safe and sound operation of such institutions. To
accomplish this end, the CRA requires the appropriate
federal supervisory authority to "assess the institution's record of meeting the credit needs of its entire
community, including low- and moderate-income
neighborhoods, consistent with the safe and sound
operation of such institution."1
In this regard, the Board has received comments
filed by the Women's Center for Social Change ("Protestant") critical of the CRA performance of Central
Fidelity.2 Protestant contends that Central Fidelity
discriminated against minorities and low-income communities in Lynchburg, Virginia, as a participant in the
Department of Housing and Urban Development's
("HUD") Enterprise Zone Loan Pool, a community
block grant program administered by the City of
Lynchburg.3 Protestant also alleges that Central Fidelity's branch offices do not adequately serve the needs
of low- and moderate-income communities of the City
of Lynchburg.
The Board has carefully reviewed the CRA performance of Central Fidelity, as well as Protestant's
comments and Central Fidelity's response to those
comments, in light of the CRA, the Board's regulations and the Statement of the Federal Financial
Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement").4 The
Agency CRA Statement provides guidance regarding
the types of policies and procedures that the supervisory agencies believe financial institutions should have
in place in order to fulfill their responsibilities under
the CRA on an ongoing basis and the procedures that
the supervisory agencies will use during the application process to review an institution's CRA compliance and performance. The Agency CRA Statement
also suggests that decisions by agencies to allow
financial institutions to expand will be based on the
actual record of performance of the institution.5
Initially, the Board notes that Central Fidelity has
received satisfactory ratings in the most recent report
1. 12 U.S.C. § 2903.
2. The Board also has considered additional comments filed by the
Hamler Development Company, Inc. after the close of the comment
period, critical of the CRA performance of Central Fidelity. Under the
Board's rules, the Board may in its discretion take into consideration
the substance of such comments. 12 C.F.R. 262.3(e).
3. Protestant's Director also alleges that Central Fidelity did not
comply with proper procedures when repossessing her automobile in
1975. Protestant's complaint has been investigated by the Federal
Reserve Bank of Richmond and no evidence of wrongdoing by the
bank has been discovered.
4. 54 Federal Register 13,742 (1989).
5. Id.
of examination of its CRA performance. The Agency
CRA Statement provides that, although CRA examination reports do not provide conclusive evidence of
an institution's CRA record, these reports will be
given great weight in the applications process. In
addition, Central Fidelity has developed and implemented a corporate CRA program that contains the
elements of an effective CRA policy as outlined in the
Agency CRA Statement. In particular, Central Fidelity has developed a comprehensive program thit establishes standards that the bank must meet in ascertaining community credit needs, responding to those
needs through the development and delivery of products and services, and monitoring and evaluating the
bank's success in meeting those needs and its responsibilities under the CRA.
Protestant contends that Central Fidelity's branch
offices do not adequately serve the needs of low- and
moderate-income and minority communities of the
City of Lynchburg. The bank currently operates
eleven branches in the City of Lynchburg. While
Protestant has criticized the number of branches in
low- and moderate-income and minority neighborhoods, the record reflects that three of Central Fidelity's full-service branches are located in low- and
moderate-income census tracts; two of these branches
are located in census tracts where the minority population is greater than the percentage of minorities in
the Lynchburg Metropolitan Statistical Area.6 In addition, five of Central Fidelity's other branch offices,
while not located in low- and moderate-income census
tracts, appear to be reasonably accessible to low- and
moderate-income residents. Central Fidelity has in
place a formal policy concerning branch closings
which is consistent with CRA requirements.7
The record does not indicate that the locations of
Central Fidelity's branches serve as an impediment to
the bank's ability to meet the credit needs of low- and
moderate-income and minority persons. As a general
matter, Central Fidelity has implemented measures to
6. In the Lynchburg Metropolitan Statistical Area, minorities represent 21 percent of the population.
7. Pursuant to its branch closing policy, Central Fidelity's Market
Research and Cost Accounting Divisions periodically review the
bank's branch locations and recommend to senior management any
branches that require attention due to changes in the profitability,
market share, market trends or other factors affecting those branches.
Regional management will review the recommendations and develop
strategies to correct the identified deficiencies. Such strategies include
rearranging staff assignments to reduce expenses, changing the branch
hours to accommodate more of the local population, or reworking the
facility's configuration to serve the community. If regional management determines such strategies are insufficient to correct the performance of the branch, Central Fidelity officials will meet with neighborhood representatives to discuss alternatives to keep the branch
open, or in the event of a decision to close, to discuss measures to
minimize the impact of that closing on the local community.
Legal Developments
ensure that the bank adequately serves the needs of
residents of low- and moderate-income areas of the
City of Lynchburg. For example, Central Fidelity's
board of directors has created a Public Policy Committee, which is charged with monitoring the bank's
CRA compliance in the low- and moderate-income
communities it serves. The bank also has developed a
mortgage loan product which offers liberalized loan
underwriting standards specifically appropriate for
low- and moderate-income borrowers. Central Fidelity's CRA efforts also are enhanced by the activities of
its Community Investment Division, which makes
housing loans that benefit low- and moderate-income
neighborhoods throughout the state of Virginia. Central Fidelity is actively marketing this program
throughout the state, including contacting various officials in the Lynchburg community. In addition, Central Fidelity has committed to invest in the Virginia
Housing Foundation, Inc., a non-profit foundation
which promotes investment in low-income housing
throughout Virginia.8
On the basis of all of the facts of record in this case,
8. Protestant's allegation that Central Fidelity misused funds under
the HUD Enterprise Zone Loan Pool Program is not supported by the
record. The record indicates that the City of Lynchburg awarded the
block grant loan funds to Central Fidelity in 1988, and, with the
approval of the City, Central Fidelity applied the proceeds of the
funding to a loan request from a small business seeking to rehabilitate
a building within the eligible zone. The entire amount of the block
grant funds was applied to the loan request. In 1990, Protestant filed a
complaint with HUD alleging that the City of Lynchburg and several
participating financial institutions, including Central Fidelity, engaged
in illegal discrimination in administering the HUD-sponsored community block grant program. The evidence available to the Board at this
661
the Board believes that the record of Central Fidelity
in meeting the convenience and needs of the communities it serves is consistent with approval of this
application. The Board also concludes that the financial condition of Central Fidelity and its future prospects, the general character of its management, and
the proposed exercise of corporate powers are consistent with approval and the purposes of section 9 of the
Federal Reserve Act.
Based on all the foregoing and other facts of record,
the Board has determined that the application should
be, and hereby is, approved.
By order of the Board of Governors, effective
June 17, 1991.
Voting for this action: Chairman Greenspan and Governors
Angell, Kelley, LaWare, and Mullins.
JENNIFER J . JOHNSON
Associate Secretary of the Board
time does not indicate that Central Fidelity discriminated against lowand moderate-income communities in administering the program, and
also indicates that Central Fidelity fulfilled all requirements outlined
by the City of Lynchburg in its bid proposal and loan agreement. HUD
is reviewing the Lynchburg program and the participation of these
financial institutions, including Central Fidelity, in the block grant
program.
Protestant's Director alleges that she personally attempted to apply
for a loan under the program and was misinformed regarding the
availability of funds under the program because she is a minority.
Central Fidelity has stated that the bank was not participating in the
Enterprise Zone Loan Pool Program at the time of the Director's
application and that, in any event, this loan request did not qualify for
funding under the program because it requested funds to be used at a
location outside of the eligible zone.
ORDERS ISSUED UNDER THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT
ACT CTIRREA
ORDERS")
Recent orders have been issued by the Staff Director of the Division of Banking Supervision and Regulation and
the General Counsel of the Board as listed below. Copies are available upon request to the Freedom of
Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
Bank Holding
Company
First Interstate Bancorp,
Los Angeles, California
Acquired
Thrift
Commonwealth Federal
Savings Association,
Houston, Texas
Surviving
Bank(s)
First Interstate Bank
of Texas, N.A.,
Houston, Texas
Approval
Date
June 21, 1991
678
Federal Reserve Bulletin • August 1991
APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Section 4
Applicant(s)
First Interstate Bancorp,
Los Angeles, California
Effective
^
Bank(s)
First Common Federal Savings
Association,
Houston, Texas
June 21, 1991
APPLICATIONS APPROVED UNDER BANK MERGER ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon
request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
Bank Merger Act
Applicant(s)
United Jersey Bank,
Hackensack, New Jersey
Bank(s)
Effective
Date
The Howard Savings Bank,
Livingston, New Jersey
June 28, 1991
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)
Absarokee Bancorporation, Inc.,
Absarokee, Montana
Adamsville Bancshares, Inc.,
Adamsville, Tennessee
Bank(s)
U-Banc, Incorporated,
Red Lodge, Montana
Citizens State Bank,
Parsons, Tennessee
Reserve
Bank
Effective
Date
Minneapolis
May 31, 1991
St. Louis
May 30, 1991
Legal Developments
661
Section 3—Continued
Applicant(s)
Agri Bancorporation,
Webster City, Iowa
Big Sandy Holding Company,
Limon, Colorado
Cedar Valley Bankshares, Ltd.,
Charles City, Iowa
Central Arkansas Bancshares,
Inc.,
Malvern, Arkansas
Chadwick Bancshares, Inc.,
Chad wick, Illinois
Citizens Financial Corporation
Employee Stock Ownership
Plan,
Belzoni, Mississippi
CNB Bancshares, Inc.,
Evansville, Indiana
Colony Bankcorp, Inc.,
Fitzgerald, Georgia
Commercial Bancorporation,
Inc.,
Orlando, Florida
Community First Bankshares,
Inc.,
Fargo, North Dakota
Dakota Company, Inc.,
Minneapolis, Minnesota
South Dakota Bancorp, Inc.,
Minneapolis, Minnesota
Decatur Corporation,
Leon, Iowa
Desert Southwest Community
Bancorp,
Las Vegas, Nevada
DNB Financial Corporation,
Mullins, South Carolina
Four County Bancshares, Inc.,
Allentown, Georgia
Great Southern Capital
Corporation Employee Stock
Ownership Trust,
Meridian, Mississippi
Mansfield Bancorp, Inc.,
Mansfield, Illinois
Reserve
Bank
Bank(s)
Agri-Bank Corporation,
Webster City, Iowa
The First National Bank of
Limon,
Limon, Colorado
Nora Springs Investment
Company,
Nora Springs, Iowa
One National Bank of Hot
Springs,
Hot Springs, Arkansas
Preston Bancshares, Inc.,
Preston, Iowa
Citizens Financial
Corporation,
Belzoni, Mississippi
Effective
Date
Chicago
June 7, 1991
Kansas City
June 27, 1991
Chicago
June 26, 1991
St. Louis
June 11, 1991
Chicago
June 11, 1991
St. Louis
June 7, 1991
St. Louis
June 13, 1991
Atlanta
June 21, 1991
Atlanta
June 7, 1991
Minneapolis
May 24, 1991
South Dakota Financial
Bancorporation, Inc.,
Minneapolis, Minnesota
Minneapolis
June 12, 1991
Citizens Bank of Princeton,
Princeton, Missouri
Nevada Community Bank,
Las Vegas, Nevada
Chicago
June 6, 1991
San Francisco
May 23, 1991
Davis National Bank,
Mullins, South Carolina
Peoples State Bank,
Jefifersonville, Georgia
Great Southern Capital
Corporation,
Quitman, Mississippi
Richmond
June 4, 1991
Atlanta
June 11, 1991
Atlanta
June 17, 1991
Chicago
May 31, 1991
JSB Bancorp,
Jasper, Indiana
Worth Federal Savings and
Loan Association,
Sylvester, Georgia
Commercial State Bank of
Orlando,
Orlando, Florida
Adams Investment Company,
Fergus Falls, Minnesota
Peoples State Bank of
Mansfield,
Mansfield, Illinois
680
Federal Reserve Bulletin • August 1991
Section 3—Continued
Reserve
Bank
Effective
Date
Applicant(s)
Bank(s)
Meridian Mutual Holding
Company,
East Boston, Massachusetts
Monona Bankshares, Inc.,
Monona, Wisconsin
National Penn Bancshares, Inc.,
Boyertown, Pennsylvania
Northern California Community
Bancorporation, Inc.,
Alameda, California
Otoe County Bancorporation,
Inc.,
Nebraska City, Nebraska
Plato Bancshares, Inc.,
Plato, Missouri
Second Mid America Bancorp,
Inc.,
Davenport, Iowa
South Dakota Financial
Bancorporation, Inc.,
Minneapolis, Minnesota
East Boston Savings Bank,
East Boston, Massachusetts
Boston
June 7, 1991
Monona State Bank,
Monona, Wisconsin
Sellersville Savings Bank,
Perkasie, Pennsylvania
Mission-Valley Bancorp,
Pleasanton, California
Chicago
May 30, 1991
Philadelphia
May 28, 1991
San Francisco
May 28, 1991
Otoe County Bank & Trust
Company,
Nebraska City, Nebraska
Bank of Plato,
Plato, Missouri
FINB Holding Company,
Savanna, Illinois
Kansas City
May 31, 1991
St. Louis
June 7, 1991
Chicago
May 23, 1991
Tri-County State Bank,
Chamberlain, South Dakota
Farmers and Merchants Bank,
Huron, South Dakota
Dakota State Bank,
Milbank, South Dakota
Marquette Bank, N.A.,
Sioux Falls, South Dakota
Otoe County Bancorporation,
Inc.,
Lincoln, Nebraska
Minneapolis
June 12, 1991
Chicago
May 31, 1991
Kentucky Bancorporation,
Covington, Kentucky
The Parker Banking Company,
Parker City, Indiana
Summit Bank,
Holts Summit, Missouri
Cleveland
May 31, 1991
Chicago
May 24, 1991
St. Louis
June 5, 1991
Southwest Company,
Sidney, Iowa
Oakland Financial Services, Inc.
Oakland, Iowa
Star Banc Corporation,
Cincinnati, Ohio
Summcorp,
Fort Wayne, Indiana
Sun Financial Corporation,
Earth City, Missouri
Section 4
Applicant(s)
Empire Banc Corporation,
Traverse City, Michigan
Indiana United Bancorp,
Greensburg, Indiana
Nonbanking
Activity/Company
Great Lakes Bancorp,
Ann Arbor, Michigan
Regional Federal Bancorp,
Inc.,
New Albany, Indiana
Reserve
Bank
Effective
Date
Chicago
May 24, 1991
Chicago
June 20, 1991
Legal Developments
661
Section 4—Continued
Applicant(s)
Fayette County Bancshares, Inc.,
Peachtree City, Georgia
FEO Investments, Inc.,
Hoskins, Nebraska
First Bank System, Inc.,
Minneapolis, Minnesota
First Financial Bancorp,
Monroe, Ohio
National City Corporation,
Cleveland, Ohio
Northern States Financial
Corporation,
Waukegan, Illinois
Norwest Corporation,
Minneapolis , Minnesota
The Summit Bancorporation,
Chatham, New Jersey
Union Bank of Switzerland,
Zurich, Switzerland
Nonbanking
Activity/Company
Fayette County Interim
Savings and Loan
Association,
Peachtree City, Georgia
Hoskins Insurance Agency,
Hoskins, Nebraska
A1 Hektner Insurance, Inc.,
Fargo, North Dakota
Home Federal Bank, A
Federal Savings Bank,
Hamilton, Ohio
Consolidated Data-Tech Inc.,
La Palma, California
First Federal Bank, FSB,
Waukegan, Illinois
National Security Insurance
Underwriters of Litchfield,
Litchfield, Minnesota
O&T Interim Federal Savings
Bank,
Chatham, New Jersey
Chase Investors Management
Corporation New York,
New York, New York
Reserve
Bank
Effective
Date
Atlanta
May 24, 1991
Kansas City
May 24, 1991
Minneapolis
June 21, 1991
Cleveland
May 24, 1991
Cleveland
June 19, 1991
Chicago
May 29, 1991
Minneapolis
June 4, 1991
New York
June 26, 1991
New York
June 27, 1991
APPLICATIONS APPROVED UNDER BANK MERGER ACT
..
x
A
Apphcant(s)
Chemical Bank Michigan,
Clare, Michigan
r. w \
Bank(s)
Mutual Savings Bank, F.S.B.,
Bay City, Michigan
Reserve
Effective
Bank
Date
Chicago
June 14, 1991
682
Federal Reserve Bulletin • August 1991
PENDING CASES INVOLVING THE BOARD OF
GOVERNORS
Access to Justice Act. The petition for review was
denied on April 12, 1991.
This list of pending cases does not include suits
against the Federal Reserve Banks in which the Board
of Governors is not named a party.
May v. Board of Governors, No. 90-1316 (D.C. Cir.,
filed July 27, 1990). Appeal of District Court order
dismissing plaintiffs action under Freedom of
Information and Privacy Acts. The Board's motion
for summary affirmance was granted on May 16,
1991.
Fields v. Board of Governors, No. 3:91CV069 (N.D.
Ohio, filed February 5, 1991). Appeal of denial of
request for information under the Freedom of Information Act.
State of Illinois v. Board of Governors, No. 90-3824
(7th Circuit, appeal filed December 19, 1990). Appeal
of injunction restraining the Board from providing
state examination materials in response to a Congressional subpoena. On November 30, 1990, the U.S.
District Court for the Northern District of Illinois
issued a preliminary injunction preventing the Board
and the Chicago Reserve Bank from providing
documents relating to the state examination in response to the subpoena. The House Committee on
Banking, Finance and Urban Affairs has appealed the
injunction. Argument in the case took place May 10,
1991.
Citicorp v. Board of Governors, No. 90-4124 (2d
Circuit, filed October 4, 1990). Petition for review of
Board order requiring Citicorp to terminate certain
insurance activities conducted pursuant to Delaware
law by an indirect nonbank subsidiary. On June 10,
1991, the Court of Appeals granted the petition and
vacated the Board's order.
Stanley v. Board of Governors, No. 90-3183 (7th
Circuit, filed October 3, 1990). Petition for review of
Board order imposing civil money penalties on five
former bank holding company directors. Oral argument was held May 16, 1991.
Sibille v. Federal Reserve Bank of New York and
Board of Governors, No. 90-CIV-5898 (S.D. New
York, filed September 12, 1990). Appeal of denial of
Freedom of Information Act request. On May 13,
1991, the court heard argument on the plaintiffs motion for a Vaugn index and the Board's motion to
dismiss. Awaiting decision.
Kuhns v. Board of Governors, No. 90-1398 (D.C. Cir.,
filed July 30, 1990). Petition for review of Board order
denying request for attorney's fees pursuant to Equal
Burke v. Board of Governors, No. 90-9509 (10th
Circuit, filed February 27, 1990). Petition for review of
Board orders assessing civil money penalties and
issuing orders of prohibition. Oral argument took place
May 7, 1991.
Kaimowitz v. Board of Governors, No. 90-3067 (11th
Cir., filed January 23, 1990). Petition for review of
Board order dated December 22, 1989, approving
application by First Union Corporation to acquire
Florida National Banks. Petitioner objects to approval on Community Reinvestment Act grounds.
Babcock and Brown Holdings, Inc. v. Board of
Governors, No. 89-70518 (9th Cir., filed November
22, 1989). Petition for review of Board determination that a company would control a proposed
insured bank for purposes of the Bank Holding
Company Act. Oral argument was held on April 9,
and on April 17 the Court of Appeals dismissed the
case as moot.
Consumers Union of U.S., Inc. v. Board of Governors, No. 90-5186 (D.C. Cir., filed June 29, 1990).
Appeal of District Court decision upholding amendments to Regulation Z implementing the Home Equity Loan Consumer Protection Act. Awaiting decision.
Synovus Financial Corp. v. Board of Governors, No.
89-1394 (D.C. Cir., filed June 21, 1989). Petition for
review of Board order permitting relocation of a bank
holding company's national bank subsidiary from
Alabama to Georgia. Awaiting decision.
MCorp v. Board of Governors, No. 89-2816 (5th
Cir., filed May 2, 1989). Appeal of preliminary injunction against the Board enjoining pending and
future enforcement actions against a bank holding
company now in bankruptcy. On May 15, 1990, the
Fifth Circuit vacated the district court's order enjoining the Board from proceeding with enforcement
Legal Developments
actions based on section 23A of the Federal Reserve
Act, but upheld the district court's order enjoining
such actions based on the Board's source-of-strength
doctrine. 900 F.2d 852 (5th Cir. 1990). On March 4,
1991, the Supreme Court granted the parties' crosspetitions for certiorari, Nos. 90-913, 90-914. The
Board's brief was filed on April 18, and MCorp's
brief was filed on June 10, 1991.
MCorp v. Board of Governors, No. CA3-88-2693
(N.D. Tex., filed October 10, 1988). Application
for injunction to set aside temporary cease and
desist orders. Stayed pending outcome of
MCorp v. Board of Governors, 900 F.2d 852 (5th Cir.
1990).
White v. Board of Governors, No. CU-S-88-623RDF (D. Nev., filed July 29, 1988). Age discrimination complaint. Board's motion to dismiss or for
summary judgment was denied on January 3, 1991.
Awaiting trial date.
661
WRITTEN AGREEMENTS APPROVED BY FEDERAL
RESERVE BANKS
Community Bank & Trust Company
Sterling, Virginia
The Federal Reserve Board announced on June 24,
1991, the execution of a Written Agreement between
the Federal Reserve Bank of Richmond, the Commissioner of Financial Institutions of the Commonwealth
of Virginia, Richmond, Virginia, and the Community
Bank & Trust Company, Sterling, Virginia.
South Texas Bancshares, Inc.
Beeville, Texas
The Federal Reserve Board announced on June 11,
1991, the execution of a Written Agreement between
the Federal Reserve Bank of Dallas, the Banking Commissioner of Texas, Austin, Texas, South Texas Bancshares, Inc., Beeville, Texas, and First State Bank of
Mathis, Mathis, Texas.
A1
Financial and Business Statistics
CONTENTS
Domestic Financial
WEEKLY REPORTING COMMERCIAL BANKS
Statistics
Assets and liabilities
A19 All reporting banks
A21 Branches and agencies of foreign banks
MONEY STOCK AND BANK CREDIT
A3
A4
A5
A6
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve I
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks
FINANCIAL MARKETS
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates-money and capital markets
A24 Stock market - Selected statistics
A25 Selected financial institutions—Selected assets
and liabilities
POUCY INSTRUMENTS
A7
A8
A9
Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions
FEDERAL RESERVE BANKS
A10 Condition and Federal Reserve note statements
A11 Maturity distribution of loan and security
holdings
FEDERAL FINANCE
All
A28
A29
A29
Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U. S. Treasury - Types
and ownership
A30 U.S. government securities
dealers—Transactions
A31 U.S. government securities dealers—Positions
and financing
A32 Federal and federally sponsored credit
agencies-Debt outstanding
MONETARY AND CREDIT AGGREGATES
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock, liquid assets, and debt measures
A15 Bank debits and deposit turnover
A16 Loans and securities—All commercial banks
COMMERCIAL BANKING INSTITUTIONS
A17 Major nondeposit funds
A18 Assets and liabilities, last-Wednesday-of-month
series
SECURITIES MARKETS AND
CORPORATE FINANCE
A33 New security issues - State and local
governments and corporations
A34 Open-end investment companies-Net sales
and asset position
A34 Corporate profits and their distribution
A34 Total nonfarm business expenditures on new
plant and equipment
A35 Domestic finance companies-Assets and
liabilities and business credit
A64 Federal Reserve Bulletin • August 1991
A36 Mortgage markets
A37 Mortgage debt outstanding
A55 Foreign official assets held at Federal Reserve
Banks
A56 Foreign branches of U.S. banks—Balance
sheet data
A58 Selected U.S. liabilities to foreign official
institutions
CONSUMER INSTALLMENT CREDIT
REPORTED BY BANKS
Domestic Financial
Statistics—Continued
REAL ESTATE
IN THE UNITED STATES
A38 Total outstanding and net change
A39 Terms
FLOW OF FUNDS
A40 Funds raised in U.S. credit markets
A42 Direct and indirect sources of funds to credit
markets
A43 Summary of credit market debt outstanding
A44 Summary of credit market claims, by holder
A58
A59
A61
A62
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A62 Banks' own claims on unaffiliated foreigners
A63 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BYNONBANKING
Domestic Nonfinancial
SELECTED
Statistics
MEASURES
A45 Nonfinancial business activity—Selected
measures
A46 Labor force, employment, and unemployment
A47 Output, capacity, and capacity utilization
A48 Industrial production-Indexes and gross value
A50 Housing and construction
A51 Consumer and producer prices
A52 Gross national product and income
A53 Personal income and saving
International
Statistics
BUSINESS
ENTERPRISES IN THE UNITED STATES
A64 Liabilities to unaffiliated foreigners
A65 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND TRANSACTIONS
A66 Foreign transactions in securities
A67 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE
RATES
SUMMARY STATISTICS
A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A69 Foreign exchange rates
A54 U.S. international transactions-Summary
A55 U.S. foreign trade
A55 U.S. reserve assets
A71 Guide to Tabular Presentation,
Statistical Releases, and Special
Tables
Money Stock and Bank Credit
1.10
A3
R E S E R V E S , M O N E Y STOCK, L I Q U I D A S S E T S , A N D D E B T M E A S U R E S
A n n u a l rates of c h a n g e , seasonally a d j u s t e d in p e r c e n t 1
1990
1991
1991
Monetary and credit aggregates
Q2
Reserves of depository institutions2
1 Total
5
6
7
8
9
MMDAs
Apr.'
3.5
12.8
10.5
16.9
-1.1
14.7
-.8
6.0
-4.1
-.6
-3.9
-1.5
16.3
16.7
14.6
3.4
4.2
3.9
1.3
.9
7.1'
3.7
3.0
1.6
2.0
7.1
3.4
2.(K
1.4'
5.5'
5.9
3.4'
4.C
3.5'
4.8'
1.9
1.2'
3.8'
4.4
3.6r
14.1r
8.4
10.4"
7.9'
6.7'
9.5
7.4'
2.4'
.8'
4.3'
-1.1
2.8
.4
-8.9
1.7
13.8
4.7
.9
n.a.
n.a.
3.8
-9.1
2.7
-3.8
1.5'
-3.5
2.6r
6.6'
ISf
14.5r
6.5'
18.8'
6.7'
-18.2'
4.2
-10.1
1.7
-15.6
^
4.1
9.6
12.7
-2.9
5.9
8.2
15.5
-2.2
5.2
3.5
11.5
-8.5
10.2
6.1
8.9
12.C
12.0
-2.2
7.0
24.6'
10.7
17.5
8.0
21.6r
15.4
17.8
4.4
-3.6
18.1
14.8
-7.3
-5.7
14.9
18.9
-4.6
.3
^
2.2
.4
-7.4
-28.7
-3.3
-7.7
-11.0
-27.3
-7.3
-7.2
-8.6
-26.3
-4.5
-.9
-8.r
-29.8
9.1
7.5
-10.9'
-31.5
14.1
18.7
-14.4'
-34.5
20.7
23.9
-9.4
-31.2
18.1
30.7
-15.2
-46.4
4.7
14.8
10.0
21.6
9.8'
30.4
18.2r
49.9
29.5r
42.0
14.6r
84.9
17.8'
23.3
2.3
30.4
3.0
4.9
9.7
6.3'
14.4
4.8'
11.6r
3.7'
12.2
2.4r
10.4'
1.5'
15.2'
3.9'
5.1'
4.1'
-4.1
3.6
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.
2. Figures incorporate adjustments for discontinuities associated with regulatory changes in reserve requirements. (See also table 1.20.)
3. Seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
Cash" and for all those weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions, less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCD), consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, money market
deposit accounts (MMDAs), savings and small-denomination time deposits
(time deposits—including retail RPs—in amounts of less than $100,000), and
balances in both taxable and tax-exempt general purpose and broker-dealer
money market mutual funds. Excludes individual retirement accounts (IRA)
and Keogh balances at depository institutions and money market funds. Also
excludes all balances held by U.S. commercial banks, money market funds
(general purpose and broker-dealer), foreign governments and commercial
banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by all depository institutions, term Eurodollars held by U.S. residents at foreign branches of U.S. banks worldwide and at all
Mar.
8.8
-3.6
3.8
21.5
Money market mutual funds
Debt components
22 Federal
May
Feb.
9.2
4.7
9.1
14.5
Thrift institutions
17
Jan.
3.9
1.7
7.8
9.9
components
MMDAs
Ql
-.5
-.5
3.8
9.1
Time and savings deposits
Commercial banks
13
Q4
.2
.9
.7
7.9
Concepts of money, liquid assets, and debt
Ml
M2
M3
L
Debt
Nontransaction
10 In M2
11 In M3 only6
Q3
-.4
-.9
-9.1'
-31.9
n.a.
banking offices in the United Kingdom and Canada, and balances in both taxable
and tax-exempt, institution-only money market mutual funds. Excludes amounts
held by depository institutions, the U.S. government, money market funds, and
foreign banks and official institutions. Also subtracted is the estimated amount of
overnight RPs and Eurodollars held by institution-only money market mutual
funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
Growth rates for debt reflect adjustments for discontinuities over time in the levels
of debt presented in other tables.
5. Sum of overnight RPs and Eurodollars, money market fund balances
(general purpose and broker-dealer), MMDAs, and savings and small time
deposits.
6. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents,
and money market fund balances (institution-only), less a consolidation adjustment that represents the estimated amount of overnight RPs and Eurodollars held
by institution-only money market mutual funds.
7. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All IRA and Keogh accounts at commercial
banks and thrifts are subtracted from small time deposits.
8. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
9. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
A4
DomesticNonfinancialStatistics • August 1991
1.11
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE B A N K CREDIT
Millions of dollars
Monthly averages of
daily figures
Weekly averages of daily figures for week ending
1991
1991
Mar.
Apr.
May
Apr. 17
Apr. 24
May 1
May 8
May 15
May 22
May 29
285,011
285,272
286,418
284,787
284,199
286,031
284,839
287,157
285,118
286,542
238,299
1,019
240,832
608
243,104
298
240,092
617
240,451
0
241,306
180
240,929
0
242,872
663
243,428
0
243,829
477
6,342
87
0
6,314
21
0
6,246
29
0
6,342
0
0
6,302
0
0
6,250
22
0
6,250
0
0
6,250
28
0
6,250
0
0
6,240
76
0
143
53
51
557
38,459
11,058
10,018
20,546
69
79
85
541
36,722
11,058
10,018
20,599
60
151
89
492
35,949
11,058
10,018
20,670
124
69
79
760
36,704
11,058
10,018
20,597
41
83
90
464
36,767
11,058
10,018
20,607
57
101
115
1,015
36,984
11,058
10,018
20,644
46
138
123
603
36,750
11,058
10,018
20,654
52
137
132
278
36,746
11,058
10,018
20,664
44
156
95
177
34,967
11,058
10,018
20,674
107
174
22
326
35,290
11,057
10,018
20,684
286,408
616
287,527
640
288,789
641
288,303
640
287,196
646
286,435
652
287,770
656
288,692
653
288,623
626
289,767
628
6,406
247
4,931
246
5,275
227
3,780
247
5,509
251
5,746
266
5,222
250
4,931
206
5,583
218
4,644
244
2,849
220
3,089
239
3,504
222
3,292
242
3,168
232
3,174
267
3,157
223
3,231
216
3,397
223
3,160
223
SUPPLYING RESERVE FUNDS
1 Reserve Bank credit
2
3
4
5
6
7
8
9
10
11
12
13
14
U.S. government securities1, 2
Bought outright-system account
Held under repurchase agreements . . .
Federal agency obligations r
Bought outright
Held under repurchase agreements . . .
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE FUNDS
15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17 Treasury
18 Foreign
19 Service-related balances and
adjustments
20 Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks 3
8,087
6,556
7,415
6,543
6,780
7,189
6,980
7,462
7,463
7,640
21,800
23,720
22,091
23,413
22,100
24,022
22,312
23,506
20,734
21,997
End-of-month figures
Wednesday figures
1991
1991
Mar.
Apr.
May
Apr. 17
Apr. 24
May 1
May 8
May 15
May 22
May 29
286,706
288,432
291,168
288,492
282,652
291,736
285,133
288,690
285,005
290,722
240,965
0
244,493
0
248,111
0
242,925
2,072
239,000
0
242,764
1,261
240,918
0
241,778
4,638
243,581
0
244,293
3,342
6,342
0
0
6,250
0
0
6,213
0
0
6,342
0
0
6,250
0
0
6,250
155
0
6,250
0
0
6,250
196
0
6,250
0
0
6,213
534
0
135
62
48
2,582
36,573
11,058
10,018
20,577
55
105
131
913
36,484
11,058
10,018
20,617
20
163
23
457
36,181
11,057
10,018
20,694
55
72
75
377
36,574
11,058
10,018
20,597
32
93
92
170
37,015
11,058
10,018
20,607
70
118
110
4,429
36,579
11,058
10,018
20,644
46
135
135
720
36,930
11,058
10,018
20,654
228
140
58
369
35,032
11,058
10,018
20,664
141
158
101
-334
35,108
11,057
10,018
20,674
58
174
24
618
35,466
11,057
10,018
20,684
286,685
623
286,766
652
290,507
629
288,087
645
286,823
652
287,078
656
288,444
658
288,859
626
288,995
628
290,666
629
10,922
228
13,682
292
6,619
1%
3,384
196
4,411
186
8,826
151
4,725
290
3,835
222
5,319
241
3,945
266
2,827
188
3,174
276
3,185
225
3,292
225
3,168
208
3,174
242
3,157
215
3,231
240
3,397
205
3,160
242
SUPPLYING RESERVE FUNDS
23 Reserve Bank credit
24
25
26
27
28
29
30
31
32
33
34
35
36
U.S. government securities1, 2
Bought outright-system account
Held under repurchase agreements . . .
Federal agency obligations2^
Bought outright
Held under repurchase agreements . . .
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
Gold stock
Special drawing rights certificate account .
Treasury currency outstanding
ABSORBING RESERVE FUNDS
37 Currency in circulation
38 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
39 Treasury
40 Foreign
41 Service-related balances and
adjustments
42 Other
43 Other Federal Reserve liabilities and
capital
44 Reserve balances with Federal
Reserve Banks 3
5,670
6,826
8,570
6,512
6,939
6,749
7,079
7,302
7,425
7,575
21,214
18,457
23,008
27,823
21,948
25,581
22,2%
26,115
20,545
25,998
1. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.
2. Beginning with the May 1990 Bulletin, this table has been revised to
correspond with the H.4.1 statistical release.
3. Excludes required clearing balances and adjustments to compensate for
float.
NOTE. For amounts of currency and coin held as reserves, see table 1.12.
Components may not add to totals because of rounding.
Money Stock and Bank Credit
1.12 RESERVES AND BORROWINGS
A5
Depository Institutions1
Millions of dollars
Monthly averages 9
Reserve classification
1988
Dec.
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks
Total vault cash 3
Applied vault cash ,
Surplus vault cash 5
Total reserves 6
Required reserves
i
Excess reserve balances at Reserve Banks'
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks . .
Extended credit at Reserve Banks
1991
1990
37,837
28,204
25,909
2,295
63,746
62,699
1,047
1,716
130
1,244
35,436
29,822
27,374
2,448
62,810
61,888
922
265
84
20
Feb.
Dec.
30,237
31,777
28,884
2,893
59,120
57,456
1,665
326
76
23
33,382
31,086
28,663
2,423
62,045
61,099
947
230
162
24
30,237
31,777
28,884
2,893
59,120
57,456
1,665
326
76
23
22,023
33,220
28,969
4,250
50,992
48,824
2,168
534
33
27
Mar.
Apr.
May
19,827
33,477
28,724
4,753
48,551
46,743
1,809
252
37
34
21,734
30,896
26,853
4,043
48,586
47,408
1,179
241
55
53
23,508
30,558
26,793
3,765'
50,301
49,271 r
1,030^
231
79
86
22,286
30,724
26,775
3,949
49,061
48,033
1,028
303
151
Biweekly averages of daily figures for weeks ending
1991
Feb. 6
11
12
13
14
15
16
17
18
19
20
Reserve balances with Reserve Banks
Total vault cash 3
Applied vault cash
Surplus vault cash 5
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings at Reserve Banks
Extended credit at Reserve Banks
Feb. 20
Mar. 6
Mar. 20
Apr. 3
Apr. 17
May l r
May 15
May 29
June 12
18,776
35,759
30,384
5,375
49,160
46,439
2,721
191
35
30
20,049
33,341
28,638
4,703
48,687
46,934
1,753
179
37
27
20,228
32,005
27,629
4,376
47,857
46,637
1,221
426
41
50
22,209
30,286
26,413
3,873
48,622
47,616
1,007
185
51
47
21,949
31,067
26,989
4,078
48,938
47,564
1,374
212
68
62
24,257
30,309
26,762
3,547
51,019
50,218
801
224
70
76
23,061
30,709
26,781
3,928
49,842
48,645
1,198
244
92
103
22,907
30,344
26,532
3,813
49,438
48,469
970
314
138
128
21,363
31,239
27,113
4,125
48,477
47,358
1,119
299
165
59
24,007
29,791
26,113
3,678
50,121
49,406
714
283
176
9
1. These data also appear in the Board's H.3 (502) release. For address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance sheet " a s - o f ' adjustments.
3. Total "lagged" vault cash held by those depository institutions currently
subject to reserve requirements. Dates refer to the maintenance periods in which
the vault cash can be used to satisfy reserve requirements. Under contemporaneous reserve requirements, maintenance periods end 30 days after the lagged
computation periods in which the balances are held.
4. All vault cash held during the lagged computation period by " b o u n d "
institutions (i.e., those whose required reserves exceed their vault cash) plus the
amount of vault cash applied during the maintenance period by " n o n b o u n d "
institutions (i.e., those whose vault cash exceeds their required reserves) to
satisfy current reserve requirements.
5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Extended credit consists of borrowing at the discount window under the
terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
9. Data are prorated monthly averages of biweekly averages.
A6
DomesticNonfinancialStatistics • August 1991
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Large Banks1
Averages of daily figures, in millions of dollars
1991, week ending Monday 2
1990
Maturity and source
Dec. 31
1
2
3
4
Federal funds purchased, repurchase agreements, and
other selected borrowing in immediately available
funds
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
foreign official institutions, and U.S. government
agencies
For one day or under continuing contract
For all other maturities
Jan. 7
Jan. 14
Jan. 21
Jan. 28
Feb. 4
Feb.11
Feb. 18
Feb. 25
74,416
19,020
82,002
16,548
78,600
16,797
74,840
17,810
74,301
16,906
81,956
16,423
77,369
16,373
77,708
16,890
74,061
15,830
28,065
21,031
29,672
20,037
30,986
20,563
28,746
21,015
32,895
21,157
33,366
20,974
31,641
20,923
32,389
20,465
30,568
20,124
Repurchase agreements on U.S. government and federal
agency securities in immediately available funds
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities
8,891
17,577
8,718
18,874
9,219
19,605
9,343
21,917
9,645
20,821
10,466
21,622
8,867
21,241
9,251
18,651
10,175
17,298
27,064
13,624
27,549
11,629
26,103
11,636
24,749
11,350
24,779
12,119
25,808
12,145
25,119
11,855
26,218
11,635
25,408
11,292
MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers
43,753
15,935
49,537
17,786
41,777
18,798
40,215
20,612
44,641
18,073
48,386
21,528
42,209
19,334
42,099
19,820
40,092
18,528
5
6
7
8
1. Banks with assets of $1 billion or more as of Dec. 31, 1977.
These data also appear in the Board's H.5 (507) release. For address, see inside
front cover.
2. Beginning with the August Bulletin data appearing are the most current
available. To obtain data from May 1, 1989, through April 16, 1990, contact the
Division of Applications Development and Statistical Services, Financial Statement Reports Section, (202) 452-3349.
3. Brokers and nonbank dealers in securities; other depository institutions;
foreign banks and official institutions; and United States government agencies.
Policy Instruments
1.14
A7
FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Extended credit 2
Adjustment credit
and
Seasonal credit 1
Federal Reserve
Bank
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .
Effective
date
Previous
rate
On
6/28/91
Effective
date
5Vi
4/30/91
4/30/91
4/30/91
5/1/91
4/30/91
4/30/91
6
5W
On
6/28/91
Previous
rate
Effective
date
Previous
rate
6.40
On
6/28/91
Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta
After 30 days of borrowing 3
First 30 days of borrowing
6/27/91
6/27/91
6/27/91
6/27/91
6/27/91
6/27/91
6.45
4/30/91
4/30/91
4/30/91
5/1/91
4/30/91
4/30/91
5V2
4/30/91
5/2/91
4/30/91
4/30/91
4/30/91
4/30/91
6
4/30/91
5/2/91
4/30/91
4/30/91
4/30/91
4/30/91
5Vl
6
6.40
6/27/91
6/27/91
6/27/91
6/27/91
6/27/91
6/27/91
Effective date
6/13/91
6/13/91
6/13/91
6/13/91
6/13/91
6/13/91
6/13/91
6/13/91
6/13/91
6/13/91
6/13/91
6/13/91
6.45
Range of rates for adjustment credit in recent years 4
Effective date
In effect Dec. 31, 1977
1978—Jan.
9
20
May 11
12
July
3
10
Aug. 21
Sept. 22
Oct. 16
20
Nov. 1
3
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
6
6
6V2
6V2
7
7
7V4
6-6 V
i
i
6V
m-i
7
I-1 Vi
m
75/4
8
8 - 8 V2
8 Vi
81/2-9 W
9Vl
10
10-10V5;
10W
10Vi-l 1
11
II-12
12
IV4
m
8
m
m
9V2
m
1
0
WVi
10V5
11
11
12
Effective date
1981—May
Nov.
Dec.
1982—July
Aug.
Oct.
Nov.
Dec.
5
8
2
6
4
20
23
2
3
16
27
30
12
13
22
26
14
15
17
12
1984—Apr.
1980—Feb. 15
19
May 29
30
June 13
16
July 28
29
Sept. 26
Nov. 17
Dec. 5
12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13
13
13
12
11
9
13
Nov. 21
26
Dec. 24
13-14
14
13-14
13
12
F.R.
Bank
of
N.Y.
14
14
13
13
12
im-12
im
W/2
11V4
11-11 Vl 11
11
11
\m
low
10-10V4
10
9W-10
9W
9-9Vl
9
SVi-9
10
10
9 Vi
9Vi
9
9
9
m
8 Vi
81/2-9
9
9
m
iVi
Range (or
level)—
All F.R.
Banks
1985—May 20
24
7W-8
m
1986—Mar.
1-lVi
1
7
10
Apr. 21
July 11
Aug. 21
22
61/2-7
6
5«/2-6
5 Vi
IV)
m
1
7
evi
6
5V%
5W
11
5V2-6
6
6
6
9
11
6-6V2
6V2
(ML
1989—Feb. 24
6'/2-7
1
7
1987—Sept. 4
1988—Aug.
m
iVl-9
9
SV2-9
8V2
Effective date
27
1990—Dec. 19
1991—Feb.
1
4
Apr. 30
May 2
In effect June 28, 1991
7
6 Vi
6V2
6V2
6 - 6 Vl
6
SVl— 6
5Vi
6
6
5W
5W
5Vi
5W
11
10
10
11
12
13
1. Adjustment credit is available on a short-term basis to help depository
institutions meet temporary needs for funds that cannot be met through reasonable alternative sources. After May 19,1986, the highest rate established for loans
to depository institutions may be charged on adjustment credit loans of unusual
size that result from a major operating problem at the borrower's facility.
Seasonal credit is available to help smaller depository institutions meet regular,
seasonal needs for funds that cannot be met through special industry lenders and
that arise from a combination of expected patterns of movement in their deposits
and loans. A temporary simplified seasonal program was established on Mar. 8,
1985, and the interest rate was a fixed rate Vi percent above the rate on adjustment
credit. The program was reestablished for 1986 and 1987 but was not renewed for
1988.
2. Extended credit is available to depository institutions, when similar assistance is not reasonably available from other sources, when exceptional circumstances or practices involve only a particular institution or when an institution is
experiencing difficulties adjusting to changing market conditions over a longer
period of time.
3. For extended-credit loans outstanding more than 30 days, a flexible rate
somewhat above rates on market sources of funds ordinarily will be charged, but
Range (or
level)—
All F.R.
Banks
in no case will the rate charged be less than the basic discount rate plus 50 basis
points. The flexible rate is reestablished on the first business day of each
two-week reserve maintenance period. At the discretion of the Federal Reserve
Bank, the time period for which the basic discount rate is applied may be
shortened.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970', Annual
Statistical
Digest, 1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980 through May 7,
1980. There was no surcharge until Nov. 17,1980, when a 2 percent surcharge was
adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and
to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective
Sept. 22, 1981, and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981 the
formula for applying the surcharge was changed from a calendar quarter to a
moving 13-week period. The surcharge was eliminated on Nov. 17, 1981.
A8
DomesticNonfinancialStatistics • August 1991
1.15
RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Percent of deposits
Type of deposit, and
deposit interval 2
Depository institution requirements
after implementation of the
Monetary Control Act
Percent of
deposits
3
12
Net transaction accounts3,
Effective date
12/18/90
12/18/90
4
0
1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with
a Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary
Control Act, depository institutions include commercial banks, mutual savings
banks, savings and loan associations, credit unions, agencies and branches of
foreign banks, and Edge corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. No corresponding adjustment is to be made in
the event of a decrease. On Dec. 20, 1988, the exemption was raised from $3.2
million to $3.4 million. In determining the reserve requirements of depository
institutions, the exemption shall apply in the following order: (1) net NOW
accounts (NOW accounts less allowable deductions); and (2) net other transaction
accounts. The exemption applies only to accounts that would be subject to a 3
percent reserve requirement.
3. Transaction accounts include all deposits on which the account holder is
permitted to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of
12/27/90
0
12/27/90
three per month for the purpose of making payments to third persons or others.
However, MMDAs and similar accounts subject to the rules that permit no more
than six preauthorized, automatic, or other transfers per month, of which no more
than three can be checks, are not transaction accounts (such accounts are savings
deposits).
4. The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 18,
1990 for institutions reporting quarterly and Dec. 25, 1990 for institutions
reporting weekly, the amount was increased from $40.4 million to $41.1 million.
5. The reserve requirements on nonpersonal time deposits with an original
maturity of less than 1-1/2 years were reduced from 3 percent to 1-1/2 percent on
the maintenance period that began December 13, 1990, and to zero for the
maintenance period that began December 27, 1990, for institutions that report
weekly. The reserve requirement on nonpersonal time deposits with an original
maturity of 1-1/2 years or more has been zero since October 6, 1983.
6. For institutions that report quarterly, the reserves on nonpersonal time
deposits with an original maturity of less than 1-1/2 years were reduced from 3
percent to zero on January 17, 1991.
7. The reserve requirements on Euroccurrency liabilities were reduced from 3
percent to zero in the same manner and on the same dates as were the reserves on
nonpersonal time deposits with an original maturity of less than 1-1/2 years (see
notes 5 and 6).
Policy Instruments
1.17
A9
FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1991
1990
Type of transaction
1990
1988
Oct.
Dec.
Nov.
Jan.
Feb.
Mar.
Apr
0
2,350
16,939
3,000
0
120
19,747
1,000
1,967
0
21,381
0
18,808
0
0
1,991
0
0
100
700
-1,326
0
0
2,292
-3,045
0
413
-1,877
U . S . TREASURY SECURITIES
Outright transactions (excluding matched
transactions)
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchange
Redemptions
5
6
7
8
9
Others within 1 year
Gross purchases
Gross sales
Maturity shift
Exchange
Redemptions
8,223
587
241,876
2,200
14,284
12,818
231,211
12,730
24,739
7,291
241,086
4,400
933
6,658
19,271
25,981
0
0
0
0
313
0
0
2,176
327
425
23,854
-24,588
25,638
-27,424
1,934
0
28,848
-25,783
500
0
0
0
0
0
10
11
12
13
1 to 5 years
Gross purchases
Gross sales
Maturity shift
Exchange
5,485
800
-17,720
22,515
1,436
490
-25,534
23,250
250
200
-21,770
25,410
0
0
-1,677
0
0
0
-3,258
3,915
0
200
-1,991
0
0
0
-778
929
0
0
-1,909
2,545
14
15
16
17
5 to 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,579
175
-5,946
1,797
287
29
-2,231
1,934
100
-2,186
789
0
0
0
-256
0
0
0
127
0
0
100
0
0
0
0
-212
397
350
0
-23
400
18
19
20
21
Over 10 years
Gross purchases
Gross sales
Maturity shift
Exchange
1,398
284
-188
275
-1,086
All maturities
22 Gross purchases
23 Gross sales
24 Redemptions
18,863
1,562
2,200
16,617
13,337
13,230
25,414
7,591
4,400
933
0
0
6,983
0
0
0
2,650
3,000
0
120
1,000
2,417
0
0
4,013
1,168,484
1,168,142
1,323,480
1,326,542
1,369,052
1,363,434
127,265
129,722
116,601
114,488
125,844
123,442
130,751
126,141
127,589
127,502
151,096
151,412
152,613
151,497
129,518
132,688
219,632
202,551
19,844
19,844
36,457
34,105
45,684
31,022
36,337
38,462
44,688
44,809
23,821
38,589
15,872
-10,055
24,886
3,390
7,222
6,608
-7,855
2,209
-10,439
2,774
2,504
2,091
4,416
3,571
3,546
4,466
2,518
3,784
-920
-1,266
1,290
-11,705
Matched transactions
25 Gross sales
26 Gross purchases
Repurchase agreements2
27 Gross purchases
28 Gross sales
29 Net change in U.S. government securities
0
0
0
0
0
0
0
0
0
1,226
0
0
2,950
0
-213
1,877
50
0
0
-200
0
0
-361
100
0
0
-400
400
-1,681
600
325
3,531
-4,315
0
0
FEDERAL AGENCY OBLIGATIONS
Outright transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase agreements2
33 Gross purchases
34 Gross sales
35 Net change in federal agency obligations .
36 Total net change in System Open Market
Account
0
0
0
0
442
183
57,259
56,471
38,835
40,411
41,836
40,461
5,913
5,913
198
-2,018
1,192
-34
16,070
-12,073
26,078
3,356
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings. Details may not add to
totals because of rounding.
0
0
587
1,021
1,070
7,492
7,678
-7,010
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements.
A10
DomesticNonfinancialStatistics • August 1991
1.18 FEDERAL RESERVE BANKS
Condition and Federal Reserve Note Statements1
Millions of dollars
Wednesday
1991
Account
May 1
May 8
End of month
1991
May 15
May 22
May 29
Mar. 29
Apr. 30
May 31
Consolidated condition statement
ASSETS
11,058
10,018
642
11,058
10,018
644
11,058
10,018
629
11,057
10,018
609
11,057
10,018
577
11,058
10,018
659
11,058
10,018
643
11,057
10,018
577
297
0
0
316
0
0
426
0
0
400
0
0
255
0
0
244
0
0
291
0
0
206
0
0
6,250
155
6,250
0
6,250
1%
6,250
0
6,213
534
6,342
0
6,250
0
6,213
0
114,795
96,707
31,263
242,764
1,261
244,025
112,948
96,707
31,263
240,918
0
240,918
113,808
96,507
31,463
241,778
4,638
246,416
115,611
96,507
31,463
243,581
0
243,581
116,323
96,507
31,463
244,293
3,342
247,635
114,245
95,457
31,163
240,965
0
240,965
116,523
%,707
31,263
244,493
0
244,493
119,942
%,707
31,463
248,111
0
248,111
250,728
247,484
253,288
250,231
254,638
247,551
251,035
254,530
10,708
906
5,543
905
5,771
915
4,983
915
7,625
915
9,381
8%
9,640
906
5,531
915
29,817
5,870
29,867
6,152
29,868
4,005
29,975
4,246
30,002
4,606
30,0%
5,647
29,816
5,862
30,835
4,416
319,747
311,670
315,551
312,035
319,439
315,305
318,978
317,879
267,732
269,091
269,449
269,557
271,188
267,391
267,445
271,019
29,861
8,826
151
242
25,322
4,725
290
215
29,338
3,835
222
240
24,655
5,319
241
205
29,704
3,945
266
242
24,067
10,922
228
188
22,081
13,682
292
276
26,223
6,619
1%
225
39,079
30,551
33,634
30,420
34,156
35,405
36,330
33,263
6,186
2,270
4,949
2,266
5,165
2,327
4,633
2,295
6,519
2,373
6,839
2,552
8,377
2,277
5,028
2,614
315,267
306,857
310,575
306,905
314,236
312,187
314,429
311,923
2,513
1,822
145
2,522
1,984
307
2,544
2,076
356
2,547
2,148
435
2,548
2,198
457
2,501
751
-133
2,513
1,808
228
2,545
2,216
1,195
33 Total liabilities and capital accounts
319,747
311,670
315,551
312,035
319,439
315,305
318,978
317,879
34 MEMO: Marketable U.S. Treasury securities held in
custody for foreign and international accounts
239,499
240,203
244,836
244,420
243,789
245,789
241,334
249,523
1 Gold certificate account
2 Special drawing rights certificate account
3
Loans
4 To depository institutions
5
Other
6 Acceptances held under repurchase agreements
Federal agency obligations
7
Bought outright
8
Held under repurchase agreements
U.S. Treasury securities
Bought outright
9
Bills
10
Notes
11
Bonds
Total bought outright 2
12
13 Held under repurchase agreements
14 Total U.S. Treasury securities
15 Total loans and securities
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies
19
All o t h e r
20 Total assets
LIABILITIES
21 Federal Reserve notes
Deposits
22
To depository institutions
23
U.S. Treasury—General account
Foreign—Official accounts
24
25
Other
26 Total deposits
27 Deferred credit items
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL ACCOUNTS
30 Capital paid in
31 Surplus
32 Other capital accounts
Federal Reserve note statement
35 Federal Reserve notes outstanding issued to bank
36
LESS: Held by bank
37
Federal Reserve notes, net
Collateral held against notes net:
38
Gold certificate account
39
Special drawing rights certificate account
Other eligible assets
40
41
U.S. Treasury and agency securities
312,281
44,549
267,732
313,136
44,045
269,091
314,438
44,989
269,449
315,330
45,773
269,557
315,767
44,579
271,188
311,042
43,651
267,391
312,160
44,716
267,445
315,843
44,824
271,019
11,058
10,018
0
246,656
11,058
10,018
847
247,168
11,058
10,018
0
248,374
11,057
10,018
0
248,482
11,057
10,018
0
250,113
11,058
10,018
0
246,315
11,058
10,018
0
246,369
11,057
10,018
0
249,944
42 Total collateral
267,732
269,091
269,449
269,557
271,188
267,391
267,445
271,018
1. Some of these data also appear in the Board's H.4.1 (503) release. For
address, see inside front cover. Components may not add to totals because of
rounding.
2. Includes securities loaned—fully guaranteed by U.S. Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.
3. Valued monthly at market exchange rates.
4. Includes special investment account at the Federal Reserve Bank of Chicago
in Treasury bills maturing within 90 days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign-exchange commitments.
Federal Reserve Banks
1.19 FEDERAL RESERVE BANKS
All
Maturity Distribution of Loan and Security Holding
Millions of dollars
Wednesday
1991
Type and maturity groupings
May 1
End of month
1991
May 8
May 15
May 22
May 29
Mar. 29
Apr. 30
May 31
1 Loans—Total
Within 15 days
2
3
16 days to 90 days
91 days to 1 year
4
298
214
84
0
316
227
89
0
426
333
93
0
400
383
17
0
255
227
29
0
173
166
6
0
291
254
38
0
206
106
100
0
5 Acceptances—Total
Within 15 days
6
7
16 days to 90 days
8
91 days to 1 year
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
244,025
15,297
54,288
74,599
61,376
13,789
24,676
240,918
14,386
55,355
71,334
61,376
13,789
24,676
246,416
11,716
57,163
78,248
61,989
12,584
24,716
243,581
12,327
56,161
75,805
61,989
12,584
24,716
247,635
15,009
57,228
76,110
61,989
12,584
24,716
240,965
6,881
62,204
71,133
62,387
13,684
24,676
244,493
10,648
59,405
74,599
61,376
13,789
24,676
248,111
6,562
65,504
76,293
62,453
12,584
24,716
6,405
155
732
1,862
2,442
1,026
188
6,250
0
842
1,752
2,442
1,026
188
6,250
338
564
1,692
2,442
1,026
188
6,250
338
564
1,692
2,442
1,026
188
6,747
836
748
1,507
2,458
1,010
188
6,342
275
653
1,808
2,393
1,026
188
6,250
99
732
1,763
2,442
1,026
188
6,213
302
748
1,507
2,458
1,010
188
9 U.S. Treasury securities—Total
10 Within 15 days 1
11
16 days to 90 days
12 91 days to 1 year
13 Over 1 year to 5 years
14 Over 5 years to 10 years
15
Over 10 years
16 Federal agency obligations—Total
17 Within 15 days 1
18
16 days to 90 days
19 91 days to 1 year
20 Over 1 year to 5 years
21
Over 5 years to 10 years
22
Over 10 years
1. Holdings under repurchase agreements are classified as maturing within 15
days in accordance with maximum maturity of the agreements.
NOTE: Components may not sum to totals because of rounding,
A12
DomesticNonfinancialStatistics • August 1991
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1990
J
item
1987
Dec.
1988
Dec.
1989
Dec.
Oct.
Dec.
Jan.
Feb.
Mar.
Apr.
May
45.81
1 Total reserves'
4
Nonborrowed reserves
^
Nonborrowed reserves plus extended credit
Required reserves
Monetary base
47.60
47.73
49.10
47.94
48.24
49.10
49.47
49.61
49.57
49.39 r
50.07
45.03
45.52
44.77
246.28
45.88
47.12
46.55
263.46
47.46
47.48
46.81
274.17
48.78
48.80
47.44
299.79
47.53
47.55
47.10
295.94
48.01
48.04
47.30
297.55
48.78
48.80
47.44
299.79
48.93
48.96
47.30
305.15
49.36
49.39
47.80
309.44
49.32
49.38
48.39
310.98
49.16
49.25
48.36
310.6C
49.76
49.85
49.04
311.48
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
6 Total reserves 7
7
8
9
10
Nov.
Seasonally adjusted
ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 2
2
3
4
5
1991
1990
Dec.
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves 8
Monetary base
Not seasonally adjusted
47.04
49.00
49.18
50.58
47.55
48.42
50.58
50.76
48.55
48.59
50.30
49.06
46.26
46.75
46.00
249.93
47.29
48.53
47.96
267.46
48.91
48.93
48.26
278.30
50.25
50.28
48.91
304.04
47.14
47.16
46.71
294.43
48.19
48.21
47.47
298.44
50.25
50.28
48.91
304.04
50.22
50.25
48.59
306.03
48.30
48.33
46.74
305.74
48.34
48.40
47.41
308.19
50.07
50.16
49.27
310.86
48.76
48.85
48.03
311.02
N O T ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS 1 0
11 Total reserves 11
12
13
14
15
16
17
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base
Excess reserves
Borrowings from the Federal Reserve
62.14
63.75
62.81
59.12
61.05
62.05
59.12
50.99
48.55
48.59
50.30
49.06
61.36
61.85
61.09
266.06
1.05
.78
62.03
63.27
62.70
283.00
1.05
1.72
62.54
62.56
61.89
292.55
.92
.27
58.79
58.82
57.46
313.70
1.66
.33
60.64
60.66
60.21
308.85
.85
.41
61.82
61.84
61.10
312.69
.95
.23
58.79
58.82
57.46
313.70
1.66
.33
50.46
50.48
48.82
309.30
2.17
.53
48.30
48.33
46.74
308.53
1.81
.25
48.35
48.40
47.41
311.04
1.18
.24
50.07
50.16
49.27
313.95
1.03
.23
48.76
48.85
48.03
314.25
1.03
.30
1. Latest monthly and biweekly figures are available from the Board's H.3(502)
statistical release. Historical data and estimates of the impact on required reserves
of changes in reserve requirements are available from the Monetary and Reserves
Projections Section. Division of Monetary Affairs. Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
2. Figures reflect adjustments for discontinuities or " b r e a k s " associated with
regulatory changes in reserve requirements.
3. Seasonally adjusted, break adjusted total reserves equal seasonally adjusted,
break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
C a s h " and for all those weekly reporters whose vault cash exceeds their required
reserves, the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
7. Break-adjusted total reserves equal break-adjusted required reserves (line 9)
plus excess reserves (line 16).
8. To adjust required reserves for discontinuities because of regulatory changes
in reserve requirements, a multiplicative procedure is used to estimate what
required reserves would have been in past periods had current reserve requirements been in effect. Break-adjusted required reserves are equal to break-adjusted
required reserves held against transactions deposits.
9. The break-adjusted monetary base equals (1) break-adjusted total reserves
(line 6), plus (2) the (unadjusted) currency component of the money stock, plus (3)
(for all quarterly reporters on the "Report of Transaction Accounts, Other
Deposits and Vault C a s h " and for all those weekly reporters whose vault cash
exceeds their required reserves) the break-adjusted difference between current
vault cash and the amount applied to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault C a s h " and for all
those weekly reporters whose vault cash exceeds their required reserves) the
difference between current vault cash and the amount applied to satisfy current
reserve requirements. After the introduction of CRR, currency and vault cash
figures are measured over the computation periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
Monetary and Credit Aggregates
A13
1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES 1
Billions of dollars, averages of daily figures
1991
1987
Dec.
Item 2
1988
Dec.
1989
Dec.
1990
Dec.
Feb.
Mar.
Apr/
May
843.0
3,375.0'
4,169.0'
5,013.5'
10,563.9'
842.2
3,382.9
4,170.8
4,976.7
10,578.2
851.8
3,395.8
4,173.6
n.a.
n.a.
Seasonally adjusted
749.7
2,910.1
3,677.4
4.337.0
8.345.1
6
7
8
9
Ml
components
Currency 3
.
Travelers checks 4
Demand deposits 5
Other checkable deposits 6
Nontransactions
10 In M2 . . . .„
11 In M3 only
793.6
3.223.1
4.055.2
4,889.9
9,790.4
825.4
3,327.6'
4,111.7 r
4,958.8'
10,436.r
196.8
7.0
286.5
259.3
Ml
M2
M3
L
Debt
786.4
3,069.9
3,919.1
4,676.0
9,107.6
212.0
7.5
286.3
280.7
222.2
7.4
278.7
285.2
2,283.5
849.3
2,429.5
832.1
836.4
3,354.3'
4,160.4'
5,010 .<r
10,525.9'
246.4
8.4
276.9
293.8
2,160.4
767.3
1
2
3
4
5
components
255.1
8.2
276.2
296.9
256.7
8.1
277.1
301.0
256.6
7.9
275.8
302.0
256.8
8.0
278.7
308.3
2,502.2'
784.1
2,517.9'
806.0'
2,531.9'
794.0'
2,540.7
787.9
2,544.0
777.8
12
13
14
15
Time and Savings accounts
Commercial banks
Savings deposits
Money market deposit accounts ,
Small time deposits®....
Large time deposits 10 '
178.3
356.4
388.0
326.6
192.1
350.2
447.5
368.0
187.7
353.0
531.4
401.9
199.4
378.4
598.1
386.1
203.2
383.2
605.6
401.1
205.8
388.9
607.8
399.9
208.9
393.7
604.1
398.0
211.5
399.8
601.6
398.2
16
17
18
19
Thrift institutions
Savings deposits
Money market deposit accounts .
Small time deposits'
Large time deposits
233.7
168.5
529.7
162.6
232.3
151.2
584.3
174.3
216.4
133.1
614.5
161.6
211.4
127.6
566.1
121.0
212.2
128.3
557.2'
114.9
214.7
130.3
550.5'
111.6
218.4
132.9
546.2
108.7
221.8
136.3
539.4
104.5
Money market mutual funds
20 General purpose and broker-dealer.
21 Institution-only
221.7
88.9
241.1
86.9
313.6
101.9
345.4'
125.7
358.2'
139.3
363.5'
142.0
364.2
145.6
365.1
146.2
1,957.9
6,387.2
2,114.2
6,993.4
2,268.1
7,522.3
2,534.3 r
7,901.8'
2,588.6'
7,937.4'
2,599.7'
7,964.2'
2,590.8
7,987.3
n.a.
n.a.
835.0
3,374.2'
4,168.3'
5,011.6'
10,518.6'
852.9
3,396.4
4,179.9
4,988.0
10,533.6
841.7
3,375.2
4,154.8
n.a.
n.a.
256.0
7.5
277.6
311.8
257.4
7.8
271.5
305.0
Debt
components
22 Federal debt
23 Nonfederal debt
Not seasonally adjusted
844.3
3,341.6'
4,123.8 r
823.4
3,345.1'
4,148.5'
5,000.5'
10,490.8'
766.2
2.923.0
3,690.3
4,352.8
8.329.1
24
25
26
27
28
29
30
31
32
Nontransactions
33 In M2 .
34 In M3 only 8
components
811.9
3,236.6
4,067.0
4,907.4
9,775.9
10,423.3'
214.8
6.9
298.9
283.5
225.3
6.9
291.5
288.2
249.6
7.8
289.9
297.0
252.7
7.8
268.1
294.9
255.6
7.8
270.1
301.6
2,156.8
767.3
Ml
components
Currency 3
Travelers checks 4
Demand deposits 5
Other checkable deposits 6
804.2
3,083.3
3,931.5
4,691.8
9,093.2
199.3
6.5
298.6
261.8
Ml
M2
M3
L
Debt
2,279.1
848.2
2,424.7
830.4
2,497.3'
782.2
2,521.6'
803.4'
2,539.1'
794.1'
2,543.6
783.5
2,533.6
779.5
A,911.2'
35
36
37
38
Time and Savings
accounts
Commercial banks
Savings deposits
Money market deposit accounts
Small time deposits®....
Large time deposits 1 0 ,
176.8
359.0
387.2
325.8
190.6
353.2
446.0
366.8
186.4
356.5
529.2
400.4
197.7
381.6
596.1
386.1
201.5
384.7
606.1
399.6
205.8
391.1
607.4
399.4
209.5
394.0
604.2
395.7
212.0
395.8
601.4
397.8
39
40
41
42
Thrift institutions
Savings deposits
Money market deposit accounts
Small time deposits®.
Large time deposits
231.4
168.6
529.5
163.3
229.9
151.6
583.8
175.2
214.2
133.7
613.8
162.6
209.6
128.7
564.1
121.1
210.4
128.8
557.7'
114.5
214.7
131.0
550.1'
111.5
219.0
133.0
546.2
108.1
222.3
134.9
539.2
104.4
Money market mutual funds
43 General purpose and broker-dealer
44 Institution-only
221.1
89.6
240.7
87.6
313.5
102.8
345.5'
127.0
362.3'
144.0
370.C
143.9
368.5
144.1
360.5
145.2
Repurchase
45 Overnight
46 Term
83.2
197.1
83.4
227.7
77.3
179.8
74.0'
161.5
70.1'
159.4'
69.1'
154.3'
69.1
150.7
67.6
147.6
1,955.6
6,373.5
2,111.8
6,981.4
2,265.9
7,509.9
2,532.1
7,891.2'
2,590.7'
7,900.1'
2,602.8'
7,915.8'
2,593.0
7,940.6
agreements
and
Debt
components
47 Federal debt
48 Nonfederal debt
For notes see following page.
Eurodollars
n.a.
n.a.
A14
DomesticNonfinancialStatistics • August 1991
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
release. Historical data are available from the Money and Reserves Projection
Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at ail commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions less cash items in
the process of collection and Federal Reserve float; and (4), other checkable
deposits (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions.
M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs)
issued by all depository institutions and overnight Eurodollars issued to U.S.
residents by foreign branches of U.S. banks worldwide, money market deposit
accounts (MMDAs), savings and small-denomination time deposits (time deposits—including retail RPs—in amounts of less than $100,000), and balances in both
taxable and tax-exempt general purpose and broker-dealer money market mutual
funds. Excludes individual retirement accounts (IRA) and Keogh balances at
depository institutions and money market funds. Also excludes all balances held
by U.S. commercial banks, money market funds (general purpose and brokerdealer), foreign governments and commercial banks, and the U.S. government.
M3: M2 plus large-denomination time deposits and term RP liabilities (in
amounts of $100,000 or more) issued by all depository institutions, term Eurodollars held by U.S. residents at foreign branches of U.S. banks worldwide and at all
banking offices in the United Kingdom and Canada, and balances in both taxable
and tax-exempt, institution-only money market mutual funds. Excludes amounts
held by depository institutions, the U.S. government, money market funds, and
foreign banks and official institutions. Also subtracted is the estimated amount of
overnight RPs and Eurodollars held by institution-only money market mutual
funds.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper and bankers acceptances, net of money
market mutual fund holdings of these assets.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Debt data are based on monthly
averages.
3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due to depository institutions, the U.S. government, and foreign banks
and official institutions, less cash items in the process of collection and Federal
Reserve float.
6. Consists of NOW and ATS balances at all depository institutions, credit
union share draft balances, and demand deposits at thrift institutions.
7. Sum of overnight RPs and overnight Eurodollars, money market fund
balances (general purpose and broker-dealer), MMDAs, and savings and small
time deposits.
8. Sum of large time deposits, term RPs, term Eurodollars of U.S. residents,
and money market fund balances (institution-only), less a consolidation adjustment that represents the estimated amount of overnight RPs and Eurodollars held
by institution-only money market funds.
9. Small-denomination time deposits—including retail RPs—are those issued
in amounts of less than $100,000. All individual retirement accounts (IRA) and
Keogh accounts at commercial banks and thrifts are subtracted from small time
deposits.
10. Large-denomination time deposits are those issued in amounts of $100,000
or more, excluding those booked at international banking facilities.
11. Large-denomination time deposits at commercial banks less those held by
money market mutual funds, depository institutions, and foreign banks and
official institutions.
Monetary and Credit Aggregates
1.22
A15
B A N K DEBITS A N D DEPOSIT TURNOVER1
Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates.
1991
1990
Bank group, or type of customer
1988
1989
1990
Oct.
3
Demand deposits
All insured banks
Major New York City banks
Other banks
4 ATS-NOW accounts"
5 Savings deposits'
Jan.
Feb.
Mar.
Seasonally adjusted
DEBITS TO
1
2
Dec.
Nov.
219,795.7
115,475.6
104,320.2
2,478.1
537.0
256.150.4
129,319.9
126.830.5
2,910.5
547.5
277,916.3
131,784.0
146,132.3
3,349.6
558.8
295,490.0
136,082.4
159,407.6
3,449.3
573.7
294,468.6
140,531.5
153,937.1
3,479.2
565.8
267,479.9
130,154.6
137,325.3
3,368.4
527.2
279,437.8
138,638.1
140,799.7
3,559.1
572.9
280,494. l r
138,037.7'"
142,456.4r
3,533.7r
551.4r
271,546.1
132.697.5
138.848.6
3,245.9
525.5
622.9
2,897.2
333.3
13.2
2.9
735.1
3,421.5
408.3
15.2
3.0
800.6
3,804.1
467.7
16.5
2.9
865.9
4,280.5
515.1
16.8
2.9
857.1
4,320.4
494.9
16.8
2.9
779.5
3,949.1
442.7
16.2
2.7
828.3
4,259.7
461.9
17.0
2.9
817.8r
4,125.7r
460.2'
16.7'
2.7'
792.4
4,095.8
447.5
15.1
2.6
DEPOSIT TURNOVER
6
7
8
9
10
Demand deposits 3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts*
Savings deposits 5
Not seasonally adjusted
Demand deposits
11 All insured banks
12 Major New York City banks
13 Other banks
14 ATS-NOW accounts*
15 MMDA
16 Savings deposits
219,790.4
115,460.7
104,329.7
2,477.3
2,342.7
536.3
256,133.2
129,400.1
126,733.0
2,910.7
2,677.1
546.9
277,400.0
131,784.7
145,615.3
3,342.2
2,923.8
557.9
298,947.2
142,664.0
156,283.2
3,462.0
3,095.5
616.3
277,536.6
133,220.6
144,316.0
3,259.5
2,805.0
505.1
275.664.8
133.491.9
142,172.9
3,430.2
2,938.6
530.1
283,545.5
136,578.8
146,966.7
3,923.1
3,106.8
589.2
259,372.9
127,287.3
132,085.5
3,237.8
2,512.7
494.9
278,280.4
134,974.7
143,305.7
3,310.7
2,771.6
524.5
622.8
2,896.7
333.2
13.2
6.6
2.9
735.4
3,426.2
408.0
15.2
7.9
2.9
799.6
3,810.0
466.3
16.4
8.0
2.9
870.9
4,376.5
503.1
17.1
8.3
3.1
800.0
4,067.4
459.3
15.8
7.4
2.6
765.8
3,760.0
438.2
16.2
7.8
2.7
820.3
3,993.4
471.9
18.4
8.2
3.0
778.7
3,899.0
439.7
15.3
6.6
2.5
835.8
4,378.5
474.3
15.3
7.1
2.6
DEPOSIT TURNOVER
17
18
19
20
21
22
Demand deposits 3
All insured banks
Major New York City banks
Other banks
ATS-NOW accounts*
MMDA 6
Savings deposits 3
1. Historical tables containing revised data for earlier periods may be obtained
from the Banking and Money Market Statistics Section, Division of Monetary
Affairs, Board o f Governors of the Federal Reserve System, Washington, D.C.
20551.
These data also appear on the Board's G.6 (406) release. For address, see inside
front cover.
2. Annual averages of monthly figures.
3. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts authorized for automatic transfer to demand deposits (ATS). ATS data are
available beginning December 1978.
5. Excludes MMDA, ATS and NOW accounts.
6. Money market deposit accounts.
A16
DomesticNonfinancialStatistics • August 1991
1.23 LOANS AND SECURITIES
All Commercial Banks
Billions of dollars; averages of Wednesday figures
1990
June
July
Aug.
Sept.
1991
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Seasonally adjusted
1 Total loans and securities1
2 U.S. government securities
3 Other securities
4 Total loans and leases'
5 Commercial and industrial . . . . .
6
Bankers acceptances h e l d 2 . . .
7
Other commercial and
industrial
8
U.S. addressees 3
9
Non-U.S. addressees 3
10 Real estate
11 Individual
12 Security
13 Nonbank financial
institutions
14 Agricultural
15 State and political
subdivisions
16 Foreign banks
17 Foreign official institutions
18 Lease financing receivables
19 All other loans
2,670.1
2,683.0
2,704.9
2,708.0
2,713.6
2,716.6
2,723.6
2,721.2
2,735.1
2,750.9
2,751.6
2,750.0
438.4
177.5
2,054.2
645.3
7.8
442.8
177.3
2,062.9
644.4
7.6
445.7
178.8
2,080.4
645.1
7.4
450.1
178.8
2,079.0
644.7
7.5
453.1
177.8
2,082.7
643.7
7.3
454.0
175.9
2,086.7
646.5
7.4
454.2
175.6
2,093.8
648.1
7.5
454.1
177.7
2,089.4
644.3
7.7
458.0
177.6
2,099.5
643.9
6.9
471.4
177.6
2,102.0
646.0
6.7
479.2
175.7
2,096.7
640.0
6.6
484.9
174.0
2,091.1
633.2
6.7
637.4
633.2
4.3
805.9
377.6
35.0
636.7
632.5
4.3
814.5
376.4
38.7
637.7
633.4
4.3
818.0
378.2
44.6
637.1
632.6
4.5
822.5
378.6
41.3
636.4
631.7
4.7
827.7
379.7
40.5
639.1
634.0
5.1
832.0
378.7
39.6
640.5
635.3
5.3
836.5
378.9
40.6
636.6
631.1
5.5
837.3
375.9
43.1
637.1
631.5
5.5
842.6
377.7
43.2
639.4
633.7
5.7
846.3
375.5
38.8
633.4
627.9
5.5
850.7
374.1
39.8'
626.5
620.7
5.8
854.7
373.5
39.8
34.4
31.1
34.7
31.3
35.0
31.5
35.2
31.8
34.8
32.2
34.6
32.5
34.7
33.0
34.2
33.5
35.3
33.5
36.1
34.0
35.2'
33.9
36.1
33.6
37.3
7.4
3.2
32.4
44.5
36.4
7.0
3.2
32.6
43.6
35.8
7.9
3.2
32.7
48.2
35.2
8.1
3.3
32.8
45.5
35.1
9.0
3.2
33.3
43.6
34.8
8.2
3.2
32.9
43.6
34.3
7.4
3.2
32.7
44.6
33.2'
6.5
3.0
32.4
46.C
33.1'
6.8
3.1
32.8
47.5'
32.7'
7.4'
3.2
33.0
48.9'
32.2'
6.¥
3.0
32.7
48.2
31.8
6.4
3.0
32.7
46.4
Not seasonally adjusted
20 Total loans and securities'
2,670.8
2,677.5
2,700.1
2,707.0
2,715.5
2,720.1
2,730.5
2,721.0
2,737.3
2,748.3
2,751.3
2,749.2
21 U.S. government securities
22 Other securities
23 Total loans and leases'
24
Commercial and industrial . . . . .
25
Bankers acceptances held . . .
26
Other commercial and
industrial
27
U.S. addressees 3
28
Non-U.S. addressees 3
29 Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33 Agricultural
34
State and political
subdivisions
35
Foreign banks
36 Foreign official institutions
37
Lease financing receivables
38
All other loans
437.1
177.5
2,056.3
647.7
8.0
439.9
176.4
2,061.1
644.6
7.3
444.0
179.1
2,077.1
643.5
7.2
448.2
179.0
2,079.8
640.9
7.5
450.8
178.0
2,086.7
641.2
7.4
454.1
176.6
2,089.3
644.5
7.6
451.5
176.3
2,102.7
648.0
7.7
455.8
177.9
2,087.3
641.1
7.6
463.9
177.3
2,096.1
643.0
7.0
475.8
176.9
2,095.7
648.3
6.6
480.5
175.1
2,095.7
644.7
6.5
485.1
173.8
2,090.2
637.1
6.6
639.7
635.5
4.3
806.0
375.6
37.1
637.3
632.9
4.4
814.9
374.1
38.6
636.3
631.8
4.5
819.9
377.4
43.9
633.4
628.8
4.6
824.2
380.4
40.3
633.8
629.1
4.7
830.3
380.6
39.5
636.9
631.9
5.0
834.0
379.8
38.5
640.3
635.1
5.2
837.9
383.8
40.0
633.4
628.2
5.3
837.1
380.1
40.9
636.1
630.6
5.5
839.5
377.1
44.7
641.6
636.2
5.4
842.6
372.8
40.1
638.2
632.3
5.9
848.1
371.5
41.3'
630.5
624.6
5.9
853.8
371.8
39.0
34.5
31.4
34.6
32.1
35.0
32.5
34.9
32.9
34.7
33.1
35.0
32.9
36.1
32.9
34.7
32.8
34.9
32.5
35.4
32.6
34.9
32.8
35.7
33.1
37.2
7.5
3.2
32.2
43.9
36.2
7.1
3.2
32.4
43.3
35.7
8.0
3.2
32.6
45.4
35.2
8.2
3.3
32.8
46.8
35.1
9.3
3.2
33.3
46.3
34.7
8.4
3.2
33.1
45.3
34.0
7.6
3.2
32.8
46.5
33.8'
6.5
3.0
32.8
44.3'
33.2'
6.7
3.1
32.9
48.3'
32.7'
7.0'
3.2
32.9
48.1'
32.1'
6.7'
3.0
32.7
47^
31.8
6.4
3.0
32.6
46.1
1. Excludes loans to commercial banks in the United States.
2. Includes nonfinancial commercial paper held.
3. United States includes the 50 states and the District of Columbia.
Commercial Banking Institutions
A17
1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Monthly averages, billions of dollars
1991
Source
June
Seasonally adjusted
1 Total nondeposit funds
—
2 Net balances due to related foreign offices 3 —
3 Borrowings from other than commercial banks
in United States 4
4
Domestically chartered banks
5
Foreign-related banks
Not seasonally adjusted
ftinds
—
6 Total nondeposit
7 Net balances due to related foreign offices —
8
Domestically chartered banks
Foreign-related banks
9
10 Borrowings from other than commercial banks
in United States 4
11 Domestically chartered banks
12
Federal funds and security RP
borrowings 5
13
Other 6
14
Foreign-related banks 6
July
Aug.
Sept.
Oct.
Nov.
Dec.'
Jan.'
Feb.
Mar.'
Apr.'
May
272.3
17.2
281.1
19.1
283.8
19.0
283.0
21.5
291.8
29.9
292.4
30.1
287.9
34.6
277.1
33.5
265.0'
24.8
264.0
30.1
262.6
30.7
258.0
26.0
255.1
196.8
58.3
262.0
201.6
60.4
264.8
202.2
62.6
261.5
198.8
62.7
261.9'
196.9
65.0
262.2'
195.0'
67.3
253.2
187.1
66.2
243.6
182.2
61.5
240.2'
177.1'
63.1
233.8
171.5
62.3
231.9
170.7
61.2
232.0
168.8
63.2
275.1
17.4
-6.1
23.5
277.2
16.6
-5.8
22.4
282.5
18.5
-3.4
21.9
278.6
21.5
-4.2
25.8
288.7
29.6
-1.0
30.6
293.5'
30.8
.6
30.2
282.3
37.2
-4.1
41.3
272.5
33.1
-15.2
48.4
268.1'
24.8'
-15.2
40.0
269.2
29.6
-6.0
35.6
263.3
28.8
-3.5
32.4
265.9
28.5
-.7
29.2
257.7
197.7
260.6
199.1
264.0
201.7
257.0
195.6
259.2
195.0
262.7'
197.6
245.1
182.8
239.4
177.7
243.3'
179.4'
239.6
175.9
234.5
171.4
237.4
173.5
194.6
3.2
60.0
196.2
2.9
61.5
198.1
3.6
62.3
191.6
4.0
61.5
191.7
3.2
64.2
194.7'
2.9
65.1
180.0
2.8
62.3
174.4
3.2
61.7
176.6'
2.8
63.9
172.6
3.2
63.7
168.6
2.9
63.0
170.7
2.8
63.9
451.5
451.0
451.9
450.5
449.2
450.1
443.6
445.4
438.0
440.4
435.2
437.8
431.8
431.8
441.0
439.3
450.6
449.1
450.9
450.5
450.9
448.6
452.1
451.7
20.6
20.9
15.0
15.2
32.7
23.5
26.0
31.0
22.3
20.9
25.2
19.2
24.4
23.0
25.7
29.4
33.4
39.3
33.8
28.4
21.7
20.4
15.1
19.8
MEMO
15
16
17
18
Gross large time deposits 7
Seasonally adjusted
Not seasonally adjusted
U.S. Treasury demand balances at commercial
banks 8
Seasonally adjusted
Not seasonally adjusted
1. Commercial banks are those in the 50 states and the District of Columbia
with national or state charters plus agencies and branches of foreign banks, New
York investment companies majority owned by foreign banks, and Edge Act
corporations owned by domestically chartered and foreign banks.
These data also appear in the Board's G.10 (411) release. For address, see
inside front cover.
2. Includes federal funds, RPs, and other borrowing from nonbanks and net
balances due to related foreign offices.
3. Reflects net positions of U.S. chartered banks, Edge Act corporations, and
U.S. branches and agencies of foreign banks with related foreign offices plus net
positions with own IBFs.
4. Other borrowings are borrowings through any instrument, such as a
romissory note or due bill, given for the purpose of borrowing money for the
anking business. This includes borrowings from Federal Reserve Banks and
from foreign banks, term federal funds, loan RPs, and sales of participations in
pooled loans.
5. Based on daily average data reported weekly by approximately 120 large
banks and quarterly or annual data reported by other banks.
6. Figures are partly daily averages and partly averages of Wednesday data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at commercial banks. Averages of daily data.
A18
DomesticNonfinancialStatistics • August 1991
Last-Wednesday-of-Month Series1
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS
Billions of dollars
1990
1991
Account
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
2,878.8
588.3
421.7
166.6
27.7
2,262.8
204.8
2,057.9
641.5
816.0
374.8
225.6
2,896.8
597.2
429.1
168.0
29.3
2,270.4
200.1
2,070.3
639.7
820.1
379.4
231.1
2,887.1
601.7
434.5
167.2
21.4
2,264.0
191.0
2,073.0
639.7
825.0
381.2
227.1
2,931.3
604.9
438.0
166.8
27.4
2,299.0
207.9
2,091.2
643.4
831.5
380.8
235.5
2,925.1
603.3
437.6
165.7
25.0
2,296.9
207.0
2,089.8
644.4
833.7
380.5
231.2
2,936.9
605.6
439.6
166.0
22.0
2,309.3
204.0
2,105.3
650.8
838.3
384.7
231.5
2,908.7
612.8
447.6
165.2
24.1
2,271.8
193.3
2,078.6
637.2
836.9
378.6
225.9
2,924.9
614.0
449.5
164.5
26.9
2,283.9
185.0
2,099.0
645.1
840.1
376.4
237.4
2,910.9
628.3
463.3
165.1
23.5
2,259.1
171.8
2,087.3
648.5
842.5
371.5
224.8
2,907.1
628.5
465.1
163.4
24.9
2,253.6
160.7
2,092.9
643.6
849.0
372.0
228.3
2,921.5
634.1
471.8
162.2
24.3
2,263.2
172.5
2,090.6
635.1
855.2
370.7
229.6
210.7
29.8
28.8
79.6
207.7
30.0
30.3
77.5
213.7
33.6
29.3
81.1
220.8
29.7
29.4
85.4
216.7
33.0
32.8
78.4
217.9
23.4
32.0
86.0
199.2
16.5
30.4
74.7
204.5
18.1
29.8
79.9
206.1
25.0
28.9
76.9
201.0
23.1
29.1
74.3
224.3
26.2
31.1
87.2
27.3
45.2
27.3
42.5
27.0
42.8
28.5
47.8
28.4
44.2
29.6
46.8
28.1
49.6
27.7
49.0
27.6
47.7
26.4
48.1
30.8
49.0
A L L COMMERCIAL BANKING
INSTITUTIONS 2
1
?
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
Total cash assets
Reserves with Federal Reserve Banks.
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
19
Other assets
205.3
220.8
226.6
230.1
226.6
245.1
249.9
259.6
263.1
260.4
264.4
20
Total assets/total liabilities and capital
3,294.8
3,325.3
3,327.4
3,382.2
3,368.5
3,399.9
3,357.8
3,388.9
3,380.1
3,368.5
3,410.3
21
22
23
24
25
26
27
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
2,290.9
590.1
561.3
1,139.5
562.1
220.5
221.2
2,296.5
589.1
565.6
1,141.8
579.9
226.2
222.8
2,300.1
595.3
563.5
1,141.3
570.9
233.1
223.4
2,332.0
612.1
570.5
1,149.4
591.0
236.0
223.3
2,319.9
598.1
573.1
1,148.8
570.6
255.3
222.7
2,363.4
637.1
573.3
1,152.9
548.7
264.4
223.5
2,334.6
587.9
573.9
1,172.8
529.8
268.8
224.6
2,365.0
594.1
583.5
1,187.3
515.4
282.3
226.2
2,382.5
602.8
594.1
1,185.6
492.3
278.2
227.0
2,381.9
601.3
595.4
1,185.3
494.6
263.9
228.1
2,413.3
617.6
606.2
1,189.5
499.8
267.6
229.6
440.4
446.3
445.1
454.2
451.9
451.1
459.4
463.7
475.9
479.0
485.0
175.6
180.2
178.0
178.1
176.4
176.5
177.5
177.2
176.0
174.5
173.4
2,614.4
557.3
406.5
150.8
27.7
2,029.4
153.7
1,875.7
517.3
776.7
374.8
206.9
2,631.8
566.1
414.1
152.0
29.3
2,036.4
153.7
1,882.6
514.0
779.5
379.4
209.8
2,620.5
569.0
417.9
151.2
21.4
2,030.0
146.0
1,884.0
513.2
784.0
381.2
205.7
2,658.4
571.5
420.9
150.6
27.4
2.059.5
164.0
1,895.5
515.4
789.8
380.8
209.5
2,645.1
569.8
420.8
149.1
25.0
2,050.3
157.4
1,892.9
513.4
791.6
380.5
207.4
2,654.2
570.5
421.7
148.8
22.0
2,061.7
160.0
1,901.7
512.7
796.4
384.7
207.9
2,628.0
575.3
426.5
148.7
24.1
2,028.6
151.7
1,876:9
504.2
794.0
378.6
200.2
2,642.3
577.4
429.3
148.2
26.9
2,038.0
150.9
1,887.0
508.4
797.1
376.4
205.1
2,635.6
588.6
440.2
148.5
23.5
2,023.5
148.3
1,875.2
506.3
799.7
371.5
197.7
2,628.9
592.3
445.5
146.8
24.9
2,011.7
134.2
1,877.5
502.4
804.7
372.0
198.4
2,637.8
595.7
449.2
146.5
24.3
2,017.8
144.5
1,873.3
495.0
808.7
370.7
198.8
184.7
28.9
28.8
78.1
181.7
28.0
30.3
75.9
187.0
32.1
29.2
79.0
189.3
28.5
29.4
83.6
187.7
31.5
32.8
76.4
188.3
23.0
32.0
83.9
166.6
15.3
30.3
72.9
172.7
17.0
29.8
78.2
177.0
24.0
28.8
74.9
171.6
21.9
29.1
72.6
193.6
25.8
31.1
85.5
25.6
23.4
25.0
22.5
25.1
21.5
26.6
21.2
26.2
20.9
27.6
21.8
26.2
22.0
25.8
21.9
25.8
23.4
24.8
23.2
28.8
22.4
MEMO
28
29
U.S. government securities (including
trading account)
Other securities (including trading
account)
DOMESTICALLY CHARTERED
COMMERCIAL BANKS 3
30
31
32
33
34
35
36
37
38
39
40
41
Loans and securities
Investment securities
U.S. government securities
Other
Trading account assets
Total loans
Interbank loans
Loans excluding interbank
Commercial and industrial
Real estate
Individual
All other
42
43
44
45
46
Total cash assets
Reserves with Federal Reserve Banks.
Cash in vault
Cash items in process of collection . . .
Demand balances at U.S. depository
institutions
Other cash assets
47
48
Other assets
139.1
145.6
152.3
153.6
155.0
167.8
166.9
171.3
167.9
161.9
162.3
49
Total assets/liabilities and capital
2,938.2
2,959.1
2,959.7
3,001.3
2,987.8
3,010.3
2,961.4
2,986.3
2,980.4
2,962.4
2,993.7
50
51
52
53
54
55
56
Deposits
Transaction deposits
Savings deposits
Time deposits
Borrowings
Other liabilities
Residual (assets less liabilities)
2,209.2
580.2
558.3
1,070.7
396.0
115.3
217.7
2,214.9
578.8
562.6
1,073.5
404.3
120.7
219.2
2,220.1
584.4
560.4
1,075.3
395.8
124.1
219.7
2,253.8
601.5
567.4
1,085.0
400.4
127.5
219.6
2,243.3
587.7
569.8
1,085.8
394.1
131.5
219.0
2,283.5
626.1
570.0
1,087.4
375.6
131.4
219.8
2,236.2
577.4
570.6
1,088.1
380.1
124.2
220.9
2,255.2
583.8
580.2
1,091.2
371.8
136.8
222.6
2,266.2
592.2
590.6
1,083.4
354.9
136.0
223.4
2,258.8
591.4
591.9
1,075.6
346.5
132.6
224.5
2,280.8
607.5
602.5
1,070.8
355.1
131.9
226.0
57
58
Real estate loans, revolving
Real estate loans, other
56.3
720.4
57.7
721.7
58.6
725.4
60.6
729.2
61.1
730.5
61.7
734.7
62.9
731.1
63.3
733.8
63.6
736.1
64.4
740.3
65.7
743.0
MEMO
1. Back data are available from the Banking and Monetary Statistics section,
Board of Governors of the Federal Reserve System, Washington, D.C., 20551.
These data also appear in the Board's weekly H.8 (510) release.
Figures are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries. Loan and securities data
for domestically chartered commercial banks are estimates for the last Wednesday of the month based on a sample of weekly reporting banks and quarter-end
condition report data. Data for other banking institutions are estimates made for
the last Wednesday of the month based on a weekly reporting sample of
foreign-related institutions and quarter-end condition reports.
2. Commercial banking institutions include insured domestically chartered
commercial banks, branches and agencies of foreign banks, Edge Act and
Agreement corporations, and New York State foreign investment corporations.
3. Insured domestically chartered commercial banks include all member banks
and insured nonmember banks.
Weekly Reporting Commercial Banks
1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
Apr. 3 '
Apr. 10
Apr. 17'
Apr. 24
May 1
May 8
May 15
May 22
ASSETS
1 Cash and balances due from depository institutions .
2 U.S. Treasury and government securities
3
Trading account
4
Investment account
5
Mortgage-backed securities
All other maturing in
6
One year or less
7
Over one through five years
8
Over five years
9 Other securities
10
Trading account
11
Investment account
12
State and political subdivisions, by maturity . . .
13
One year or less
14
Over one year
15
Other bonds, corporate stocks, and securities . .
16 Other trading account assets
17 Federal funds sold 2
18
To commercial banks in the U.S
19
To nonbank brokers and dealers
20
To others 3
21 Other loans and leases, gross
22
Commercial and industrial
23
Bankers' acceptances and commercial paper
24
Mother
25
U.S. addressees
26
Non-U.S. addressees
106,445
195,895
17,101
178,793
84,414
99,294'
194,450
15,974
178,476
84,359'
108,173
195,635
16,103
179,532
85,171
97,612'
191,835
13,906
177,928
83,315'
125,621
194,691
15,432
179,259
83,309
97,575
193,915
14,577
179,338
83,299
113,446
196,201
179,391
82,505
94,631
193,597
14,692
178,905
81,747
19,546
41,151
33,682
59,217
1,353
57,864
28,009
3,781
24,228
29,855
10,997
19,359
41,001
33,758'
58,896
1,221
57,674
27,869'
3,738
24,131'
29,805'
9,631
19,240
41,401
33,721
58,516
1,132
57,385
27,585
3,685
23,900
29,800
9,720
19,058
41,718
33,837'
58,589
1,392
57,197
27,418
3,660
23,757
29,779
9,717
18,929
42.517
34,505
58,580
1,365
57,215
27,229
3,711
23.518
29,986
9,456
19,027
43,706
33,306
58,547
1,241
57,306
27,242
3,703
23,539
30,064
9,506
18,649
45,139
33,098
57,844
1,346
56,498
27,187
3,680
23,508
29,310
10,225
19,464
44,426
33,268
57,663
1,360
56,303
27,091
3,656
23,435
29,212
9,542
79,788
59,095
17,250
3,443
1,049,326
319,905
1,697
318,207
316,820
1,387
79,521
53,921
21,772
3,828
1,044,567'
316,932'
1,671
315,262'
313,913'
1,349
85,332
59,427
21,895
4,010
1,048,747
318,300
1,736
316,565
315,249
1,316
68,905
45,186
20,548
3,172
1,044,641'
316,372'
68,178
47,446
17,906
2,826
1,045,695
315,839
1,668
314,172
312,791
1,381
78,327
55,417
19,689
3,221
1,045,722
314,425
314,772'
313,329'
1,443
86,089
57,489
25,298
3,303
1,051,794
317,840
1,639
316,201
314,828
1,373
63,099
43,621
17,329
2,149
1,041,095
313,289
1,556
311,733
310,323
1,410
402,852
36,445
366,407
190,292
49,144
22,387
3,500
23,257
11,848
5,754
20,115
403,534'
36,516
367,017'
190,318'
47,811
404,529
37,036
367,493
190,833
47,140
21,137
3,020
22,983
14,462
5,967
19,905
1,146
22,898
27,075
4,039
38,294
1,009,462
156,758
404,806
37,102
367,703
190,411
47,037
1,182
404,152
36,738
367,414
190,714
46,309
21,401
2,352
22,556
13,001
5,916
19,913
1,152
27,017
4,038
38,124
1,003,533
154,538
404,480
37,210
367,270
190,456
47,776
22,235
2,454
23,088
12,703
6,055
19,713
1,166
21,970
26,978
4,033
37,520
1,004,169
154,295
22,362
12,708
6,079
19,631
1,120
21,019
26,953
4,038
37,349
999,709
151,149
1,640,659
1,585,792
1,614,506
1,569,389
1,601
27
Real estate loans
28
Revolving, home equity
29
All other
30
To individuals for personal expenditures
31
To depository and financial institutions
32
Commercial banks in the United States
33
Banks in foreign countries
34
Nonbank depository and other financial institutions
35
For purchasing and carrying securities
36
To finance agricultural production
37
To states and political subdivisions
38
To foreign governments and official institutions . .
39
All other loans 4
40
Lease financing receivables
41 LESS: Unearned income
42
Loan and lease reserve
43 Other loans and leases, net
44 Other assets
21,000
27,234
4,079
37,638
1,007,610
162,309
1,182
20,381'
27,149
4,086
37,856
1,002,625'
159,322'
27,106
4,107
37,897
1,006,743
157,864
404,24C
36,953
367,287'
190,623'
45,489'
21,122'
2,435'
21,933
12,995'
5,876'
19,912
1,187
20,862'
27,085'
4,101'
37,892'
1,002,648'
153,296'
45 Total assets
1,622,262
1,603,738'
1,621,983
1,582,604'
Footnotes appear on the following page.
21,861'
2,922
23,028'
11,415'
5,825'
20,021'
22,182
21,622
2,342
23,073
12,613
5,985
19,711
1,193
21,081
16,810
1,621
312,804
311,384
1,420
404,0%
37,204
366,892
189,990
46,211
21,727
2,122
A19
A20
DomesticNonfinancialStatistics • August 1991
1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1991
Account
Apr. 10
Apr. 17'
Apr. 24
May 1
May 8
May 15
May 22
May 29
46 Deposits
1,120,375
Demand deposits
47
228,523
Individuals, partnerships, and corporations
48
183,749
Other holders
49
44,773
States and political subdivisions
50
6,620
51
U.S. government
1,795
Depository institutions in the United States
52
20,396
Banks in foreign countries
53
6,336
Foreign governments and official institutions
54
582
55
Certified and officers' checks
9,045
56 Transaction balances other than demand deposits
91,982
Nontransaction balances
57
799,870
Individuals, partnerships, and corporations
58
763,178
Other holders
59
36,693
States and political subdivisions
60
30,432
U.S. government
61
874
Depository institutions in the United States
62
4,911
Foreign governments, official institutions, and banks . . . .
63
476
5
64 Liabilities for borrowed money
282,831
Borrowings from Federal Reserve Banks
65
80
,
66 Treasury tax and loan notes
13,997
67 Other liabilities for borrowed money 6
268,754
68 Other liabilities (including subordinated notes and
debentures)
106,740
1,116,136r
223,406'
181,073'
42,334
6,652
1,975
18,243
4,854
612
9,998
91,697
801,033'
764,247'
36,786
30,818
871
4,630
467
266,262'
0
3,779'
262,483'
1,123,117
232,125
184,830
47,295
6,929
4,107
20,050
5,486
612
10,111
94,683
796,309
759,500
36,810
30,826
899
4,614
471
279,937
0
22,701
257,236
1,094,514'
214,356'
170,110'
44,246
7,121
3,387
18,299
5,118
686
9,635
88,294
791,863'
755,073'
36,790
30,730
900
4,669
491
268,168'
0
27,030'
241,137'
1,129,448
249,036
194,887
54,149
7,996
3,660
24,792
5,689
690
11,323
88,717
791,695
755,230
36,465
30,376
1,037
4,558
494
293,609
0
29,172
264,436
1,098,115
215,815
175,034
40,781
6,033
1,323
17,880
4,987
694
9,864
88,366
793,934
756,201
37,734
31,527
1,030
4,686
490
268,006
0
16,165
251,842
1,121,993
238,592
190,794
47,798
7,114
3,060
23,712
5,086
621
8,205
88,108
795,292
757,458
37,834
31,588
1,051
4,688
507
273,137
200
4,430
268,507
1,089,457
211,392
170,494
40,898
6,864
1,249
18,528
5,186
658
8,414
86,695
791,369
753,467
37,902
31,738
1,065
4,581
518
261,054
0
2,868
258,185
1,104,702
225,294
178,844
46,451
6,398
1,425
22,888
5,374
564
9,802
86,705
792,703
754,688
38,015
31,822
1,059
4,603
532
276,948
0
16,654
260,294
108,585'
106,352
106,888'
105,492
106,403
105,941
104,969
104,852
69 Total liabilities
1,509,947
1,490,983'
1,509,406
1,469,569'
1,528,548
1,472,524
1,501,071
1,455,479
1,486,501
112,315
112,755'
112,577
113,034'
112,110
113,267
113,435
113,910
114,412
Total loans and leases, gross, adjusted, plus securities . . 1,313,742
Time deposits in amounts of $100,000 or more
201,439
Loans sold outright to affiliates, total 9
1,180
Commercial and industrial
678
Other
502
Foreign branch credit extended to U.S. residents 1 "
25,195
Net due to related institutions abroad
-8,671
1,311,283'
201,589'
1,184
682
502
25,311
-4,196'
1,317,123
200,394
1,197
694
503
25,242
-4,431
1,307,379'
198,799'
1,196
664
532
24,745
1,784'
1,321,986
198,020
1,164
657
507
24,650
-1,867
1,306,773
198,249
1,152
639
513
24,324
-253
1,310,667
197,639
1,149
590
559
24,397
-586
1,299,649
196,960
1,123
554
568
24,406
2,925
1,301,787
196,710
1,032
536
495
24,115
1,570
Apr. 3'
LIABILITIES
7
70 Residual (Total assets minus total liabilities)
MEMO
71
72
73
74
75
76
77
8
1. Includes certificates of participation, issued or guaranteed by agencies of the
U.S. government, in pools of residential mortgages.
2. Includes securities purchased under agreements to resell.
3. Includes allocated transfer risk reserve.
4. Includes NOW, ATS, and telephone and pre-authorized transfer savings
deposits.
5. Includes borrowings only from other than directly related institutions.
6. Includes federal funds purchased and securities sold under agreements to
repurchase.
7. This balancing item is not intended as a measure of equity capital for use in
capital adequacy analysis.
8. Excludes loans to and federal funds transactions with commercial banks in
the United States.
9. Affiliates include a bank's own foreign branches, nonconsolidated nonbank
affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company.
10. Credit extended by foreign branches of domestically chartered weekly
reporting banks to nonbank U.S. residents. Consists mainly of commercial and
industrial loans, but includes an unknown amount of credit extended to other than
nonfinancial businesses.
NOTE. Data that formerly appeared on table 1.28 Asset and Liabilities of Large
Weekly Reporting Commercial Banks in New York City may be obtained from the
Board's H.4.2 (504) statistical release. For address see inside front cover.
Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS
Liabilities
Millions of dollars, W e d n e s d a y
A21
Assets and
figures
1991
Account
May 8
May 15
May 22
17,553
15,791
16,052
16,409
16,793
13,656
7,279
9,624
5,128
4,496
135,469
82,028
13,366
7,260
7,479
3,316
4,163
134,192
81,552
14,289
7,213
8,563
3,789
4,774
135,361
82,074
15,338
7,185
7,393
2,814
4,578
134,330
82,090
14,671
7,227
10,206
5,207
4,999
135,905
82,480
1,763
80.40C
78,168'
2,231
30,314'
18,683
11,213
1,889
5,581
1,895'
1,919
80,109
77,981
2,128
30,742
18,212
10,771
1,594
5,847
2,105
2,031
79,521
77,317
2,204
30,971
17,627
10,222
1,648
5,756
2,029
2,165
79,909
77,729
2,180
31,014
18,094
10,212
1,633
6,250
2,178
2,049
80,042
77,848
2,194
30,911
17,093
9,519
1,662
5,912
2,208
2,025
80,455
78,247
2,209
31,110
17,556
9,588
1,630
6,338
2,684
220
2,358'
29,093
225
2,391'
29,321
222
2,159
28,776
228
1,786
28,723
235
1,767
28,663
206
1,820
28,214
250
1,826
27,830
240,704
244,478
240,669
244,776
244,063
250,730
244,469
247,282
77,392
4,051
78,356
4,173
80,698
4,166
82,268
4,137
82,701
4,214
83,042
3,947
84,621
3,849
86,873
4,172
88,376
3,809
2,590
1,460
73,341
2,495
1,678
74,183
2,647
1,519
76,532
2,649
1,488
78,131
2,789
1,426
78,487
2,325
1,622
79,095
2,540
1,309
80,771
2,464
1,708
82,701
2,428
1,381
84,567
54,394
18,947
54,804
19,380
55,684
20,848
56,812
21,319
58,983
19,504
59,377
19,718
60,666
20,105
61,805
20,8%
63,004
21,563
97,663
48,371
95,427
44,888
93,253
46,813
90,610
41,999
91,350
44,880
91,916
44,109
94,896
47,925
89,514
42,552
88,404
44,305
24,516
23,855
49,292
20,018
24,870
50,539
25,507
21,306
46,439
14,221
27,778
48,611
21,537
23,343
46,470
17,988
26,121
47,807
22,660
25,265
46,971
15,391
27,161
46,962
21,508
22,797
44,099
20,058
29,234
28,374
19,372
31,166
28,133
18,570
27,869
28,134
19,091
29,520
28,452
18,278
28,193
28,076
18,151
29,656
28,309
17,902
29,070
28,247
16,650
30,312
27,876
15,815
28,284
28,178
246,216
240,704
244,478
240,669
244,776
244,063
250,730
244,469
247,282
151,082
9,141
149,636
7,925
149,863
9,270
150,002
8,119
150,129
10,227
148,760
3,545
151,425
2,376
151,912
4,606
153,214
7,674
Apr. 3
1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities
4 Federal funds sold1
5 To commercial banks in the United States ..
6 To others 2
7 Other loans and leases, gross
8
Commercial and industrial
Bankers acceptances and commercial
9
paper
10
All other
11
U.S. addressees
12
Non-U.S. addressees
13 Loans secured by real estate
14 To financial institutions
15
Commercial banks in the United States.
16
Banks in foreign countries
17
Nonbank financial institutions
18 For purchasing and carrying securities . . .
19 To foreign governments and official
institutions
20 All other
21 Other assets (claims on nonrelated parties) ,
22 Total assets3
23 Deposits or credit balances due to other
than directly related institutions
24 Demand deposits
25 Individuals, partnerships, and
corporations
26 Other
27 Nontransaction accounts
28 Individuals, partnerships, and
corporations
29 Other
30 Borrowings from other than directly
related institutions
31 Federal funds purchased 5
32 From commercial banks in the
United States
33 From others
34 Other liabilities for borrowed money
35 To commercial banks in the
United States
36 To others
37 Other liabilities to nonrelated parties
38 Total liabilities6
MEMO
39 Total loans (gross) and securities adjusted .
40 Net due to related institutions abroad
Apr. 10
Apr. 17
Apr. 24
May 1
15,516
15,741
16,708
15,605
14,628'
7,49c
9,449
5,290
4,159
136,154
82,614'
13,795'
7,453'
8,320
3,976
4,345
135,057
si.soc
12,829'
7,26c
9,844
4,903
4,941
135,622
82,194'
13,089'
7,278'
8,484
3,307
5,177
135,671
82,163'
2,266
80,348'
77,913'
2,435
30,281'
18,940
11,350
1,784
5,806
1,771'
2,085
79,716'
77,348'
2,367
30,606'
18,421
11,013
1,496
5,912
1,773'
1,871
80,323'
77,937'
2,386
30,566'
18,368
10,789
1,890
5,689
1,915'
188
2,360'
29,333
214
2,243'
29,474
246,216
1. Includes securities purchased under agreements to resell.
2. Includes transactions with nonbank brokers and dealers in securities.
3. Includes net due from related institutions abroad for U.S. branches and
agencies of foreign banks having a net due from position.
4. Includes other transaction deposits.
May 29
5. Includes securities sold under agreements to repurchase.
6. Includes net due to related institutions abroad for U.S. branches and
agencies of foreign banks having a net due to position.
7. Excludes loans to and federal funds transactions with commercial banks in
the U.S.
A22
DomesticNonfinancialStatistics • August 1991
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1990
1987
Dec.
1986
Dec.
I
1988
Dec.
1989
Dec.
1991
1990
Dec.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers
2
3
4
5
6
331,316
358,997
458,464
530,123
566,688
564,482
566,688
569,378
561,597
566,069
541,648
101,707
102,742
159,777
186,343
218,953
211,986
218,953
216,148
217,812
224,865
212,337
2,265
1,428
1,248
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
151,897
174,332
194,931
212,640
201,862
204,191
201,862
202,997
197,990
190,620
184,703
40,860
77,712
Financial companies 1
Dealer-placed paper1
Total
Bank-related (not seasonally
adjusted) 3
Directly placed paperA
Total
Bank-related (not seasonally
adjusted) 3
Nonfinancial companies 3
43,173
81,923
43,155
103,756
n.a.
131,140
n.a.
145,873
n.a.
148,305
n.a.
145,873
n.a.
150,233
n.a.
145,795
n.a.
150,584
n.a.
144,608
Bankers dollar acceptances (not seasonally adjusted) 6
7 Total
64,974
11
12
13
66,631
62,972
54,771
53,968
54,771
56,498
52,831
48,795
47,086
10,943
9,464
1,479
9,086
8,022
1,064
9,433
8,510
924
9,017
7,930
1,087
8,751
7,535
1,217
9,017
7,930
1,087
10,029
8,539
1,490
10,240
8,391
1,849
9,237
7,569
1,668
8,593
7,599
994
0
1,317
50,234
0
965
58,658
0
1,493
56,052
0
1,066
52,473
0
918
44,836
0
880
44,337
0
918
44,836
0
927
45,542
0
892
41,699
0
872
38,686
0
934
37,559
14,670
12,960
37,344
Basis
14 Imports into United States
15 Exports from United States
16 All other
8
9
10
70,565
13,423
11,707
1,716
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others
16,483
15,227
38,855
14,984
14,410
37,237
15,651
13,683
33,638
13,096
12,703
28,973
12,758
13,865
27,345
13,096
12,703
28,973
14,284
12,870
29,344
13,799
12,082
26,950
12,509
11,500
24,786
12,511
11,219
23,356
1. Institutions engaged primarily in activities such as, but not limited to,
commercial savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other business lending; insurance underwriting; and other investment activities.
2. Includes all financial company paper sold by dealers in the open market.
3. Beginning January 1989, bank-related series have been discontinued.
4. As reported by financial companies that place their paper directly with
investors.
5. Includes public utilities and firms engaged primarily in such activities as
communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Beginning January 1988, the number of respondents in the bankers acceptance survey were reduced from 155 to 111 institutions—those with $100 million
or more in total acceptances. The panel is revised every January and currently has
about 100 respondents. The current reporting group accounts for over 90 percent
of total acceptances activity.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans
Percent per year
Period
8.75
8.50
9.00
9.50
10.00
10.50
11.00
11.50
11.00
10.50
10.00
9.50
9.00
8.50
1988
1989
1990
1988— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Average
rate
9.32
10.87
10.01
8.75
8.51
8.50
8.50
8.84
9.00
9.29
9.84
10.00
10.00
10.05
10.50
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
Period
1989— Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Average
rate
10.50
10.93
11.50
11.50
11.50
11.07
10.98
10.50
10.50
10.50
10.50
10.50
Period
1990—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. .,
1991—Jan. .
Feb.
Mar.
Apr.
May .
June
Financial Markets
1.35
A23
I N T E R E S T R A T E S M o n e y and Capital Markets
Averages, percent per year; weekly, monthly and annual figures are averages of business day data unless otherwise noted.
1991, week ending
1991
Instrument
1988
1989
1990
Feb.
Mar.
Apr.
May
May 3
May 10
May 17
May 24
May 31
MONEY MARKET RATES
1
2
3
4
5
6
7
8
9
10
Federal funds 1 ' 2,3
i .
Discount window borrowing^
Commercial paper 3 ' 5,6
1-month
3-month
6-month
Finance paper, directly placed 3, •
1-month
3-month
6-month
Bankers acceptances 3, •
3-month
6-month
Certificates of deposit, secondary
7.57
6.20
16
17
18
19
20
6.25
6.00
6.12
6.00
5.91
5.98
5.78
5.50
5.92
5.86
5.79
5.50
5.78
5.50
5.79
5.50
5.72
5.50
9.11
8.99
8.80
8.15
8.06
7.95
6.53
6.49
6.41
6.48
6.41
6.36
6.08
6.07
6.07
5.91
5.92
5.94
5.93
5.93
5.94
5.92
5.92
5.93
5.93
5.94
5.95
5.91
5.93
5.94
5.91
5.94
5.95
7.44
7.38
7.14
8.99
8.72
8.16
8.00
7.87
7.53
6.31
6.38
6.14
6.31
6.28
6.20
5.95
5.94
5.91
5.76
5.81
5.72
5.80
5.82
5.75
5.79
5.81
5.72
5.80
5.84
5.72
5.76
5.81
5.73
5.69
5.80
5.72
7.56
7.60
8.87
8.67
7.93
7.80
6.36
6.22
6.24
6.21
5.92
5.92
5.75
5.77
5.75
5.75
5.75
5.75
5.76
5.77
5.76
5.78
5.76
5.80
7.59
7.73
7.91
7.85
1-month
3-month
6-month
Eurodollar deposits, 3-month 3,10
U.S. Treasury bills
Secondary market 3,5
15
3-month
8.10
6.98
7.58
7.66
7.68
11
1?
13
14
9.21
6.93
9.11
9.09
9.08
9.16
8.15
8.15
8.17
8.16
6.45
6.52
6.47
6.45
6.50
6.60
6.44
6.03
6.06
6.16
6.11
5.86
5.91
6.51
5.94
5.87
5.91
6.01
6.04
5.87
5.91
6.01
5.93
5.88
5.93
6.06
5.94
5.86
5.91
6.04
5.94
5.85
5.90
6.04
5.94
8.11
7.50
8.03
7.92
5.94
5.93
5.91
5.46
5.61
5.76
5.44
5.63
5.73
5.48
5.63
5.76
5.59
6.00
5.71
5.85
5.51
5.60
7.35
5.76
5.77
5.46
5.63
5.76
5.95
5.93
5.85
5.67
5.51
5.60
5.68
5.50
5.50
5.50
5.73
5.88
5.65
5.61
5.63
5.66
5.46
5.65
6.06
5.71
n.a.
5.71
n.a.
n.a.
n.a.
6.24
6.95
6.13
6.78
6.13
6.85
6.15
6.78
6.13
6.64
7.12
7.13
7.13
7.70
6.11
6.81
7.16
7.64
6.13
6.84
7.23
7.70
7.92
8.04
8.21
7.69
7.76
7.12
7.73
7.66
7.94
8.07
8.27
7.89
8.02
8.19
7.93
7.96
7.92
8.25
7.99
8.11
8.32
8.08
8.29
8.06
8.26
8.29
8.33
8.26
8.31
8.39
8.36
8.33
6.67
6.91
7.13
1-year
Auction average 3,
3-month
6-month
1-year
7.46
8.12
8.04
7.91
7.51
7.47
7.89
8.96
8.53
8.57
8.55
8.50
8.52
8.49
8.45
8.98
7.36
6.68
6.92
7.17
7.36
5.91
5.92
5.91
5.91
5.65
6.03
5.44
CAPITAL MARKET RATES
21
22
23
24
25
26
27
28
29
30
31
32
34
34
35
36
3/
38
39
U.S. Treasury notes and bonds
Constant maturities 12
1-year
2-year
3-year
5-year
7-year
10-year
30-year
Composite 13
Over 10 years (long-term)
State and local notes and bonds
Moody's series 1
Aaa
Baa
Bona Buyer series' J
Corporate bonds
Seasoned issues
All industries
Aaa
Aa
A
Baa
A-rated, recently offered utility bonds 1
MEMO; Dividend/price ratio
Preferred stocks
Common stocks
7.65
8.10
8.26
8.47
8.71
8.85
7.83
7.68
..
10.18
9.71
9.94
10.24
10.83
10.20
9.23
3.64
6.27
6.87
8.61
7.10
7.35
7.77
8.00
8.11
8.29
8.58
8.74
8.12
8.38
7.00
7.40
7.23
6.%
6.41
6.76
6.70
6.70
7.29
7.27
7.03
7.29
7.10
7.18
7.02
7.10
7.11
7.10
7.05
7.11
7.14
6.91
6.95
6.95
6.93
6.94
6.98
6.97
9.32
9.28
8.83
9.08
9.29
8.83
9.12
9.38
9.83
9.34
9.51
9.35
8.89
9.17
9.44
9.91
9.43
9.18
9.42
9.89
9.47
9.33
8.87
9.17
9.42
9.85
9.39
8.15
3.22
8.25
3.31
8.22
3.24
8.12
3.19
8.37
8.52
8.55
9.66
9.26
9.46
9.77
9.32
8.83
9.56
9.16
9.74
10.18
9.79
9.82
10.36
10.01
9.38
10.07
9.54
9.43
8.93
9.21
9.50
10.09
9.58
9.05
3.45
n.a.
n.a.
8.46
3.35
8.56
3.26
9.36
1. The daily effective federal funds rate is a weighted average of rates on
trades through N.Y. brokers.
2. Weekly figures are averages of 7 calendar days ending on Wednesday of the
current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. An average of offering rates on commercial paper placed by several leading
dealers for firms whose bond rating is AA or the equivalent.
7. An average of offering rates on paper directly placed by finance companies.
8. Representative closing yields for acceptances of the highest rated money
center banks.
9. An average of dealer offering rates on nationally traded certificates of
deposit.
10. Bid rates for Eurodollar deposits at 11 a.m. London time.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
6.40
7.08
7.47
7.73
7.85
8.03
8.16
8.26
9.33
6.63
8.86
8.86
9.12
9.39
9.94
9.15
9.41
9.46
9.45
9.83
9.42
8.43
3.19
8.21
3.23
8.31
3.20
9.86
9.36
8.06
6.68
6.66
6.75
8.86
7.07
6.77
12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. Unweighted average of rates on all outstanding bonds neither due nor
callable in less than 10 years, including one very low yielding "flower"bond.
14. General obligation based on Thursday figures; Moody's Investors Service.
15. General obligations only, with 20 years to maturity, issued by 20 state and
local governmental units of mixed quality. Based on figures for Thursday.
16. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
17. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of
call protection. Weekly data are based on Friday quotations.
18. Standard and Poor's corporate series. Preferred stock ratio based on a
sample o f t e n issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For address, see inside front cover.
A24
DomesticNonfinancialStatistics • August 1991
1.36 STOCK MARKET
Selected Statistics
1990
Indicator
1988
1989
1991
1990
Oct.
Sept.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
Finance
5
6 Standard & Poor's Corporation
(1941-43 = 10)1
149.96
180.83
134.07
72.22
127.41
180.13
228.04
174.90
94.33
162.01
183.48
225.81
158.64
90.61
133.23
173.22
216.81
136.95
83.30
118.59
168.05
208.58
131.99
87.27
108.01
172.21
212.81
132.96
89.69
113.76
179.57
221.86
141.31
91.56
122.18
177.95
220.69
145.89
88.59
121.39
197.75
246.74
166.06
92.08
141.03
203.56
255.36
166.26
92.29
145.41
207.71
260.16
166.90
92.92
152.64
206.93
260.13
170.77
90.73
151.32
265.86
323.05
334.63
315.41
307.12
315.29
328.75
325.49
362.26
372.28
379.68
377.99
7 American Stock Exchange
(Aug. 31, 1973 = 50?
295.06
356.67
338.36
318.53
296.67
294.88
305.54
304.08
338.11
353.98
365.02
362.67
161,509
9,955
165,568
13,124
156,842
13,155
142,054
11,668
159,590
11,294
149,916
10,368
155,836
11,620
166,323
10,870
226,635
16,649
196,343
15,326
182,510
13,140
170,337
10,995
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (end-of-period balances, in millions of dollars)
10 Margin credit at broker-dealers 3
32,740
34,320
28,210
29,640
28,650
27,820
28,210
27,390
28,860
29,660
30,020
n.a.
Free credit balances at brokers4
11 Margin-account 5
12 Cash-account
5,660
16,595
7,040
18,505
8,050
19,285
7,285
16,185
7,245
15,820
7,300
17,025
8,050
19,285
7,435
18,825
7,190
19,435
7,320
19,555
6,975
17,830
n.a.
n.a.
Margin requirements (percent of market value and effective date) 6
Mar. 11, 1968
13 Margin stocks
14 Convertible bonds
15 Short sales
June 8 , 1968
May 6, 1970
Dec. 6, 1971
Nov. 24, 1972
Jan. 3, 1974
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
50
50
50
1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. Beginning July 5, 1983, the American Stock Exchange rebased its index
effectively cutting previous readings in half.
3. Beginning July 1983, under the revised Regulation T, margin credit at
broker-dealers includes credit extended against stocks, convertible bonds, stocks
acquired through exercise of subscription rights, corporate bonds, and government securities. Separate reporting of data for margin stocks, convertible bonds,
and subscription issues was discontinued in April 1984.
4. Free credit balances are in accounts with no unfulfilled commitments to the
brokers and are subject to withdrawal by customers on demand.
5. New series beginning June 1984.
6. These regulations, adopted by the Board of Governors pursuant to the
Securities Exchange Act of 1934, limit the amount of credit to purchase and carry
"margin securities" (as defined in the regulations) when such credit is collateralized by securities. Margin requirements on securities other than options are the
difference between the market value (100 percent) and the maximum loan value of
collateral as prescribed by the Board. Regulation T was adopted effective Oct. 15,
1934; Regulation U, effective May 1, 1936; Regulation G, effective Mar. 11, 1968;
and Regulation X, effective Nov. 1, 1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market-value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
Financial Markets
1.37 SELECTED FINANCIAL INSTITUTIONS
A25
Selected Assets and Liabilities
Millions of dollars, end of period
1990
Account
1988
1991
1989
June
Aug.
July
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
SAIF-insured institutions
1 Assets
2 Mortgages
3 Mortgage-backed
securities
4
Contra-assets to
mortgage assets 1 .
Commercial loans
6 Consumer loans
7
Contra-assets to nonmortgage loans .
8 Cash and investment
securities
9 Other 3
1,350,500
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
l,162,297
1,156,789' 1,125,653' 1,116,641' 1,109,032' 1,084,90C 1,066,116' 1,054,897' 1,042,169
764,513
733,729
691,239
689,079
684,936'
665,655'
662,309'
653,472'
633,567'
624,783'
619,725'
610,674
214,587
170,532
159,173
158,146
156,398
154,197
153,469
155,616
155,32C
151,522'
149,433
147,479
37,950
33,889
61,922
25,457
32,150
58,685
20,337
28,753
55,171
19,552
28,483
54,666'
19,453'
27,868
53,387
18,550'
26,762'
51,874
17,139'
26,052
50,746'
17,038
25,262
50,177'
16,918'
24,139'
48,756'
15,169'
23,668'
48,137'
14,636'
23,194'
47,707'
14,495
22,305
47,636
2,034'
1,982'
1,769'
1,692'
1,936'
150,399
103,226'
153,061
102,627'
148,058'
99,64c
145,286
97,686'
145,998'
97,237'
146,534'
95,439'
3,056
3,592
1,980
186,986
129,610
166,053
116,955
155,674
106,922
10 Liabilities and net worth . 1,350,500
11
12
n
14
15
16
1,249,055 1,174,615
r
971,700
299,400
134,168
165,232
24,216
n.a.
1,249,055 1,174,615
945,656
252,230
124,577
127,653
27,556
23,612
890,497
230,169
109,733
120,436
25,151
28,803'
l ^
140,451'
94,417'
1,846'
1,797
138,819'
92,501'
139,059
91,309
1,162,297' 1,156,789' 1,125,653' 1,116,641' 1,109,032' 1,084,90c 1,066,116' 1,054,897' 1,042,169
885,286
222,439'
106,127
116,312'
26,798'
27,775'
878,736
221,872
105,882
115,990
28,293'
27,889'
857,688
213,563'
101,731
111,832'
23,874'
30,526'
851,81C
208,105'
100,574
107,531'
25,559'
31,188'
846,822'
203,855'
100,493
103,362'
26,127'
32,228'
835,496'
197,353'
100,391
96,962'
21,305'
30,747'
823,499'
188,937'
95,842'
93,095'
22,154'
31,526'
816,50C
183,672'
94,658
89,014'
23,319'
31,407'
817,010
169,428
90,555
78,873
20,286
35,446
SAIF-insured federal savings banks
17 Assets
425,966
498,522
583,392
580,847
584,632
591,136
588,880
585,847
576,531
567,373
556,708
552,520
18 Mortgages
19 Mortgage-backed
securities
20 Contra-assets to
mortgage assets .
21 Commercial loans
22 Consumer loans
23
Contra-assets to nonmortgage loans •
24 Finance leases plus
interest
25 Cash and investment . . .
26 Other
230,734
283,844
323,516
328,236
328,895
332,927
332,431
328,122
320,233
316,889
313,880
309,618
64,957
70,499
78,001
80,474
80,994
82,418
82,219
84,190
81,205
79,451
78,290
77,684
13,140
16,731
24,222
13,548
18,143
28,212
10,200
19,683
32,745
9,227
18,810
31,003
9,339
18,662
31,183
9,964
18,767
30,750
9,578
18,458
30,682
9,305
18,197
30,421
9,591
17,674
29,933
8,222
17,299
31,179
7,777
17,008
29,292
7,975
16,556
30,586
889
1,193
970
870
813
980
572
809
990
770
895
966
880
61,029
35,412
1,101
64,538
39,981
n.a.
75,081
47,723
n.a.
71,354
44,150
n.a.
73,756
44,129
n.a.
73,602
46,043
n.a.
75,117
45,287
n.a.
72,454
45,319
n.a.
75,940
45,008
n.a.
71,066
44,768
n.a.
67,721
44,210
n.a.
68,157
43,714
27 Liabilities and net worth .
425,966
498,522
583,392
580,847
584,632
591,136
588,880
585,847
576,531
567,373
556,708
552,520
28
29
30
31
32
33
298,197
99,286
46,265
53,021
8,075
20,218
360,547
108,448
57,032
51,416
9,041
22,716
427,379
121,721
60,666
61,055
8,889
21,944
423,472
118,393
61,287
57,106
9,245
26,424
424,260
120,592
62,209
58,383
10,128
26,420
434,705
119,991
61,605
58,386
8,253
24,859
436,080
115,472
60,256
55,216
9,063
24,837
436,903
111,270
60,265
51,005
9,824
24,931
434,297
107,270
59,949
47,321
8,193
24,172
428,822
102,313
57,703
44,610
8,356
25,285
422,745
97,089
56,078
41,011
8,721
25,432
425,720
90,692
53,134
37,558
7,700
25,494
Savings capital
Borrowed money
FHLBB
Other
Other
Net worth
A26
Domestic Financial Statistics • August 1991
1.37—Continued
1990
Account
1988
1991
1989
June
July
Aug.
Sept.
Oct.
Credit unions
34 Total assets/liabilities
and capital
174,593
183,688
195,302
194,523
196,625
114,566
60,027
120,666
63,022
128,142
67,160
127,564
66,959
128,715
67,910
122,608
123,968
81,063
42,905
178,127
116,717
61,408
124,343
81,063
43,280
176,360
115,305
61,056
126,156
82,040
44,116
178,081
116,411
61,670
Jan.
Feb.
n.a.
Mar.
n.a.
129,086
68,186
113,191
73,766
39,425
159,010
104,431
54,579
Dec.
4
197,272
35
36
Nov.
127,341
82,823
44,518
177,532
115,469
62,063
Federal
State
37 Loans outstanding..
38
Federal
39
State
40 Savings
41
Federal
42
State
80,272
42,336
167,371
109,653
57,718
Life insurance companies 5
43 Assets
44
45
46
47
48
49
50
51
52
53
54
Securities
Government....
United States 6
State and local
Foreign
Business
Bonds
Stocks
Mortgages
Real estate
Policy loans
Other assets
1,299,756
1,376,660
1,387,463
1,411,881
178,141
153,361
9,028
15,752
663,677
538,063
125,614
254,215
39,908
57,439
106,376
195,287
202,962
175,156
11,818
15,988
709,470
588,251
121,219
266,063
44,544
60,641
103,783
208,782
180,200
12,038
16,544
724,603
596,053
128,550
267,922
44,718
61,562
104,294
10,963
16,589
705,070
570,245
134,825
264,865
44,188
63,144
104,106
n.a.
n.a.
1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage loans, contracts, and pass-through securities include loans in process,
unearned discounts and deferred loan fees, valuation allowances for mortgages
"held for sale," and specific reserves and other valuation allowances.
2. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
nonmortgage loans include loans in process, unearned discounts and deferred loan
fees, and specific reserves and valuation allowances.
3. Holding of stock in Federal Home Loan Bank and Finance leases plus
interest are included in " O t h e r " (line 9).
4. Data include all federally insured credit unions, both federal and state
chartered, serving natural persons.
5. Data are no longer available on a monthly basis for life insurance companies.
6. Direct and guaranteed obligations. Excludes federal agency issues not
guaranteed, which are shown in the table under "Business" securities.
n.a.
n.a.
7. Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
NOTE. SAIF-insured institutions: Estimates by the OTS for all institutions
insured by the SAIF and based on the OTS thrift Financial Report.
SAIF-insured federal savings banks: Estimates by the OTS for federal savings
banks insured by the SAIF and based on the OTS thrift Financial Report.
Credit unions: Estimates by the National Credit Union Administration for
federally chartered and federally insured state-chartered credit unions serving
natural persons.
Life insurance companies: Estimates of the American Council of Life Insurance
for all life insurance companies in the United States. Annual figures are annualstatement asset values, with bonds carried on an amortized basis and stocks at
year-end market value. Adjustments for interest due and accrued and for
differences between market and book values are not made on each item separately
but are included, in total, in " o t h e r assets."
Financial Markets
All
1.38 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars
Calendar year
Type of account or operation
Fiscal
year
1988
Fiscal
year
1989
Fiscal
year
1990
1991
1990
Dec.
Jan.
Feb.
Mar.
Apr.
May
1
U.S. budget
1 Receipts, total
2
On-budget
3 Off-budget
4 Outlays, total
5
On-budget
6
Off-budget
7 Surplus, or deficit ( - ) , total
8
On-budget
9
Off-budget
10
11
12
Source of financing (total)
Borrowing from the public
Operating cash (decrease, or increase ( - ) ) .
Other
908,166
666,675
241,491
1,063,318
860,627
202,691
-155,151
-193,952
38,800
990,701
727,035
263,666
1,144,020
933,107
210,911
-153,319
-206,072
52,753
1,031,308
749,654
281,654
1,251,766
1,026,701
225,065
-220,458
-277,047
56,590
101,900
82,059
19,841
109,212
94,679
14,532
-7,311
-12,620
5,309
100,713
70,023
30,690
99,023
79,105
19,918
1,690
-9,082
10,772
67,657
45,594
22,063
93,834
72,667
21,167
-26,177
-27,073
896
64,805
39,011
25,794
105,876
83,340
22,536
-41,071
-44,329
3,258
140,380
108,746
31,634
110,249
90,362
19,887
30,131
18,384
11,747
63,560
41,958
21,602
116,906
95,903
21,003
-53,346
-53,945
599
166,139
-7,962
-3,026
141,806
3,425
8,088
264,453
818
-44,813
19,700
-9,286
-3,103
31,764
-30,627
-2,827
34,611
2,341
-10,775
-9,913
28,473
22,511
-9,399
-16,214
-4,518
41,742
20,362
-8,758
44,398
13,023
31,375
40,973
13,452
27,521
40,155
7,638
32,517
32,188
8,960
23,228
62,815
27,810
35,006
60,474
23,898
36,577
32,001
10,922
21,078
48,215
13,682
34,533
27,853
6,619
21,234
MEMO
13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15 Tax and loan accounts
1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former off-budget entries are now presented on-budget. The Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act has also moved two
social security trust funds (Federal old-age survivors insurance and Federal
disability insurance trust funds) off-budget.
2. Includes SDRs; reserve position on the U.S. quota in the IMF; loans to
international monetary fund; other cash and monetary assets; accrued interest
payable to the public; allocations of special drawing rights; deposit funds;
miscellaneous liability (including checks outstanding) and asset accounts;
seigniorage; increment on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on the sale of gold.
SOURCE. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government and the Budget of the U.S. Government.
A28
1.39
DomesticNonfinancialStatistics • August 1991
U . S . B U D G E T RECEIPTS A N D O U T L A Y S 1
Millions of dollars
Calendar year
Source or type
Fiscal
year
1989
Fiscal
year
1990
1989
1991
1990
HI
H2
HI
H2
Mar.
Apr.
May
RECEIPTS
1 All sources
990,701
2 Individual income taxes, net
3 Withheld
4
Presidential Election Campaign Fund
5 Nonwithheld
6
Refunds
Corporation income taxes
7 Gross receipts
8
Refunds
9 Social insurance taxes and contributions,
net
10 Employment taxes and
contributions
Self-employment taxes and
11
contributions
12 Unemployment insurance
13 Other net receipts 4
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts
1,031,308
527,574
470,276
548,861
503,123
64,805
140,380
63,560
445,690
361,386
32
154,839
70,567
466,884
390,480
32
149,189
72,817
233,572
174,230
28
121,563
62,251
218,706
193,296
3
33,303
7,898
243,087
190,219
30
117,675
64,838
230,745
207,469
3
31,728
8,455
11,288
30,478
9
4,426
23,625
77,768
36,428
6
60,246
18,912
20,005
36,958
6
3,067
20,026
117,015
13,723
110,017
16,510
61,585
7,259
52,269
6,842
58,830
8,326
54,044
7,603
14,338
1,531
15,526
2,229
2,931
899
359,416
380,047
200,127
162,574
210,476
178,468
33,045
42,478
34,546
332,859
353,891
184,569
152,407
195,269
167,224
32,416
39,671
27,192
18,504
22,011
4,546
21,795
21,635
4,522
16,371
13,279
2,277
1,947
7,909
2,260
19,017
12,929
2,278
2,638
8,9%
2,249
1,463
226
402
12,707
2,435
372
1,604
6,928
426
34,386
16,334
8,745
22,839
35,345
16,707
11,500
27,316
16,814
7,918
4,583
10,235
16,799
8,667
4,451
13,651
18,153
8,0%
6,442
12,106
17,535
8,568
5,333
16,032
4,149
1,271
864
1,381
3,842
1,219
1,546
231
3,653
1,244
835
1,245
1,144,020
1,251,766
565,425
587,394
640,867
647,218
105,876
110,249
116,906
303,559
9,574
12,838
3,702
16,182
16,948
299,335
13,760
14,420
2,470
17,009
11,998
148,098
6,567
6,238
2,221
7,022
9,619
149,613
5,971
7,091
1,449
9,183
4,132
152,733
6,770
6,974
1,216
7,343
7,450
149,497
8,943
8,081
979
9,933
6,878
15,743
2,001
1,317
61
1,283
1,240
21,651
1,513
1,369
-40
1,385
2,115
25,069
1,862
1,410
513
1,557
1,638
29,091
27,608
5,361
67,495
29,495
8,466
4,129
12,953
1,833
22,295
14,982
4,879
38,672
13,754
3,987
37,491
16,218
3,939
6,154
2,139
497
4,700
2,624
697
3,115
2,631
698
OUTLAYS
18 All types
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services
36,694
37,479
18,083
18,663
19,537
18,988
3,782
3,319
3,404
29 Health
30 Social security and medicare
31 Income security
48,390
317,506
136,031
58,101
346,383
148,299
24,078
162,195
70,937
25,339
162,322
67,950
29,488
175,997
78,475
31,424
176,353
75,948
5,623
30,643
16,836
5,882
31,975
16,034
6,059
32,620
16,307
32
33
34
35
36
30,066
9,422
9,124
169,317
-37,212
29,112
10,076
10,822
183,790
-36,615
14,891
4,801
3,858
86,009
-18,131
14,864
4,909
4,760
87,927
-18,935
15,217
4,868
4,916
91,155
-17,688
15,479
5,265
6,976
94,650
-19,829
2,731
941
717
17,120
-2,952
3,200
1,136
419
15,802
-3,531
3,674
1,219
1,266
17,042
-3,180
Veterans benefits and services
Administration of justice
General government
Net interest 6
^
Undistributed offsetting receipts
1. Functional details do not add to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fiscal year
total for outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Net interest function includes interest received by trust funds.
7. Consists of rents and royalties on the outer continental shelf, U.S. government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1990.
Federal Finance
A29
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1989
1991
1990
Item
Sept. 30
Dec. 31
Mar. 31
Mar. 31
June 30
1 Federal debt outstanding
2,763.6
2,824.0
2,881.1
2,975.5
3,081.9
2 Public debt securities
3
Held by public
4
Held by agencies
2,740.9
2,133.4
607.5
2,799.9
2,142.1
657.8
2,857.4
2,180.7
676.7
2,953.0
2,245.2
707.8
3,052.0
2,329.3
722.7
22.7
22.3
.4
24.0
23.6
.5
23.7
23.5
.1
22.5
22.4
.1
29.9
29.8
.2
5 Agency securities
Held by public
6
Held by agencies
7
June 30
Sept. 30
Dec. 31
3,175.5
3,266.1
3,397.3
3,491.7
3,143.8
2,368.8
775.0
3,233.3
2,437.6
795.8
3,364.8
2,536.6
828.3
3,465.2
n.a.
n.a.
31.7
31.6
.2
32.8
32.6
.2
32.5
32.4
.1
Mar. 31
n.a.
n.a.
n.a.
2,725.6
2,784.6
2,829.8
2,921.7
2,988.9
3,077.0
3,161.2
3,281.7
3,377.1
9 Public debt securities
10 Other debt 1
2,725.5
.2
2,784.3
.2
2,829.5
.3
2,921.4
.3
2,988.6
.3
3,076.6
.4
3,160.9
.4
3,281.3
.4
3,376.7
.4
11 MEMO: Statutory debt limit
2,800.0
2,800.0
2,870.0
3,122.7
3,122.7
3,122.7
3,195.0
4,145.0
4,145.0
8 Debt subject to statutory limit
1. Includes guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
1.41 GROSS PUBLIC DEBT OF U.S. TREASURY
SOURCES. Treasury Bulletin and Monthly Statement
United States.
of the Public Debt of the
Types and Ownership
Billions of dollars, end of period
1990
Type and holder
1987
1989
1991
1990
Q2
1 Total gross public debt
By type
2 Interest-bearing debt
3 Marketable
4
Bills
5
Notes
6
Bonds
7 Nonmarketable 1
8
State and local government series
9
Foreign issues
10
Government
11
Public
12
Savings bonds and notes
13
Government account series 3
14 Non-interest-bearing debt
15
16
17
18
19
20
21
22
23
24
25
26
By holder4
U.S. government agencies and trust funds
Federal Reserve Banks
Private investors
Commercial banks
Money market funds
Insurance companies
Other companies
State and local Treasurys
Individuals
Savings bonds
Other securities
Foreign and international 3
Other miscellaneous investors 6
Q4
Q1
2,431.7
2,684.4
2,953.0
3,364.8
3,143.8
3,233.3
3,364.8
3,465.2
2,428.9
1,724.7
389.5
1,037.9
282.5
704.2
139.3
4.0
4.0
2,931.8
1.945.4
430.6
1.151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
43.5
43.5
.0
124.1
813.8
3,121.5
2,028.0
453.5
1,192.7
366.8
1,093.5
164.3
36.4
36.4
.0
120.1
758.7
3,210.9
2,092.8
482.5
122.2
779.4
43.5
43.5
.0
124.1
813.8
3,441.4
2,227.9
533.3
1.280.4
399.3
1.213.5
159.4
42.8
42.8
99.2
461.3
2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
2.8
21.3
21.2
2.8
22.3
22.4
2.8
477.6
222.6
1,731.4
201.5
14.6
104.9
84.6
284.6
589.2
238.4
1,858.5
193.8
828.3
259.8
2,288.3
n.a.
n.a.
n.a.
n.a.
n.a.
775.0
231.4
2,141.8
189.2
795.8
232.5
2,207.3
28.1
107.3
87.1
313.6
707.8
228.4
2,015.8
174.8
14.9
130.1
98.8
338.7
33.6
138.9
114.6
344.0
828.3
259.8
2,288.3
n.a.
n.a.
n.a.
n.a.
n.a.
101.1
109.6
79.2
362.2
593.4
117.7
98.8
392.9
672.5
126.2
n.a.
n.a.
n.a.
123.9
114.6
404.9
n.a.
n.a.
n.a.
n.a.
.0
71.3
299.7
569.1
1. Includes (not shown separately): Securities issued to the Rural Electrification Administration; depository bonds, retirement plan bonds, and individual
retirement bonds.
2. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners.
3. Held almost entirely by U.S. Treasury agencies and trust funds.
4. Data for Federal Reserve Banks and U.S. Treasury agencies and trust funds
are actual holdings; data for other groups are Treasury estimates.
Q3
11.8
160.8
137.0
112.1
345.7
121.9
112.1
392.3
n.a.
1,218.1
377.2
1,118.2
161.3
36.0
36.0
.0
188.0
160.8
.0
127.7
853.1
23.8
126.2
5. Consists of investments of foreign and international accounts. Excludes
non-interest-bearing notes issued to the International Monetary Fund.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally-sponsored agencies.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly
Statement of the Public Debt of the United States; data by holder and the
Treasury Bulletin.
A30
1.42
DomesticNonfinancialStatistics • August 1991
U.S. G O V E R N M E N T SECURITIES DEALERS
Transactions 1
Millions of dollars, daily averages
1991
1991, week ending
Item
Feb.
Mar.
Apr.
Apr. 3
Apr. 10
Apr. 17
Apr. 24
May 1
May 8
May 15
May 22
May 29
IMMEDIATE TRANSACTIONS
By type of security
U.S. government securities
Bills
1
Coupon securities
2
Maturing in less than 3.5 years
Maturing in 3.5 to 7.5 y e a r s . . .
3
4
Maturing in 7.5 to 15 years
Maturing in 15 years or more..
5
Federal agency securities
Debt
6
Maturing in less than 3.5 years
Maturing in 3.5 to 7.5 y e a r s . . .
7
8
Maturing in 7.5 years or more
Mortgage-backed
Pass-throughs
9
10
All others
By type of counterparty
Primary dealers and brokers
11
U.S. government securities
Federal agency
12
Debt securities
13
Mortgage backed securities .
Customers
14
U.S. government securities
Federal agency
15
Debt securities
16
Mortgage-backed securities .
32,223
32,648
30,498
30,129
32,920
31,788
27,703
29,628
33,033
27,090
30,818
30,112
42,249
30,587
16,109
17,860
35,168
26,889
12,169
14,127
37,426'
30,113'
11,243'
12,905'
29,982
25,469
9,784
9,297
29,643
28,912
10,712
12,696
39,424
33,169
11,890
14,435
42,368
30,168
10,703
13,979
44,061
31,206
12,868
12,617
47,402
22,015
19,081
12,324
41,385
25,722
19,922
22,559
43,357
24,757
10,290
11,621
43,520
24,873
9,789
8,161
3,946
607
677
4,375
601
644
4,171
566
654
4,412
683
790
3,854
580
504
4,074
567
737
3,883
648
687
4,865
357
594
3,609
698
570
3,661
668
1,084
4,444
409
483
4,834
664
509
10,070
1,416
9,712
1,303
10,588
1,469
8,218
1,763
10,189
1,269
13,197
1,601
10,959
1,276
9,137
1,578
11,514
1,481
10,716
1,611
7,655
1,355
8,620
1,436
85,703
76,452
74,699'
63,350
70,667
79,505
78,334
77,699
80,762
83,695
73,008
70,085
1,439
5,627
1,559
5,650
1,601
5,762
1,758
4,623
1,412
5,091
1,777
7,497
1,354
6,058
1,807
4,915
1,434
6,216
1,553
5,690
1,450
3,932
1,825
4,220
53,326
44,549
47,486'
41,311
44,217
51,201
46,587
52,681
53,092
52,984
47,834
46,369
3,792
5,858
4,062
5,365
3,790
6,295
4,128
5,358
3,526
6,368
3,601
7,301
3,864
6,176
4,010
5,799
3,444
6,779
3,860
6,637
3,886
5,078
4,182
5,837
4,669
4,607
3,775
4,010
3,159
2,805
3,679
5,700
3,693
4,370
4,971
3,061
2,258
867
1,419
9,507
1,351
847
1,059
9,023
1,065
740
810
7,735
999
1,092
674
5,006
874
395
792
7,164
1,140
691
683
8,040
1,149
677
883
9,080
1,152
1,047
1,002
8,434
1,644
495
851
6,845
1,557
504
1,079
11,873
1,066
696
895
6,943
910
475
619
5,449
137
23
52
100
34
36
54
27
41
41
15
58
4
72
6
167
27
14
31
8
29
12
4
120
37
6
70
15
2
7
69
21
11
101
16
5
9,662
1,059
8,313
1,285
9,316
1,472
7,502
1,617
10,218
1,353
8,608
995
10,624
1,932
8,799
1,532
8,798
1,597
11,677
1,680
11,096
1,336
6,830
2,119
FUTURE AND FORWARD
TRANSACTIONS 4
By type of deliverable security
U.S. government securities
17 Bills
Coupon securities
18
Maturing in less than 3.5 years
19
Maturing in 3.5 to 7.5 y e a r s . . .
20
Maturing in 7.5 to 15 years . . .
21
Maturing in 15 years or more..
Federal agency securities
Debt
22
Maturing in less than 3.5 years
23
Maturing in 3.5 to 7.5 y e a r s . . .
24
Maturing in 7.5 years or more
Mortgage-backed
25
Pass-throughs
26
All others
OPTION TRANSACTIONS 5
By type of underlying securities
U.S. government securities
Bills
Coupon securities
28
Maturing in less than 3.5 years
29
Maturing in 3.5 to 7.5 years . . .
30
Maturing in 7.5 to 15 years
31
Maturing in 15 years or more..
Federal agency securities
Debt
32
Maturing in less than 3.5 years
33
Maturing in 3.5 to 7.5 y e a r s . . .
34
Maturing in 7.5 years or more
Mortgage-backed
35
Pass-throughs
36
All others
27
102
2
8
0
0
30
0
5
158
33
151
0
1,596
300
226
2,659
1,014
287
308
1,786
874
196
226
2,249
1,528
116
288
1,829
713
112
261
1,737
614
363
290
2,520
794
184
171
2,492
1,010
165
127
2,563
1,276
117
165
1,854
598
125
277
3,130
956
95
289
2,903
921
200
226
1,116
2
0
1
1
0
0
3
0
0
1
0
1
0
0
0
4
0
0
4
0
0
8
0
0
0
0
0
4
0
2
0
0
0
0
0
1
365
1
297
0
333
9
274
0
588
0
359
29
196
10
195
0
240
0
224
0
212
0
113
0
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Averages for transactions are based on the
number of trading days in the period. Immediate, forward, and future transactions
are reported at principal value, which does not include accrued interest; option
transactions are reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed securities
include purchases and sales for which delivery is scheduled in thirty days or less.
Stripped securities are reported at market value by maturity of coupon or corpus.
3. Includes securities such as CMOs, REMICs; IOs, and POs.
4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. government securities and federal agency
debt securities are included when the time to delivery is more than five days.
Forward contracts for mortgage-backed securities are included when the time to
delivery is more than thirty days.
5. Options transactions are purchases or sales of put and call options, whether
arranged on an organized exchange or in the over-the-counter market and include
options on futures contracts on U.S. government and federal agency securities.
Federal Finance
1.43 U.S. GOVERNMENT SECURITIES DEALERS
A31
Positions and Financing1
Millions of dollars
Item
Feb.
Mar.
Apr.
Mar. 27
Apr. 3
Apr. 10
Apr. 17
Apr. 24
May 1
May 8
May 15
May 22
Positions
N E T IMMEDIATE
1
2
3
4
5
6
7
8
9
10
11
12
13
By type of security
U.S. government securities
Bills
Coupon securities
Maturing in less than 3.5 years
Maturing in 3.5 to 7.5 y e a r s . . .
Maturing in 7.5 to 15 years
Maturing in 15 years or more..
Federal agency securities
Debt
Maturing in less than 3.5 years
Maturing in 3.5 to 7.5 y e a r s . . .
Maturing in 7.5 years or more.
Mortgage-backed
Pass-throughs
All others
Other money market instruments
Certificates of deposit
Commercial paper
Bankers' acceptances
-2,075
3,381
-5,655
559
811
2,606
-4,085
-4,544
-13,745 -12,787
-2,858
681
-4,438
-12,801
5,146
2,916
5,193
4,377
2,441
4,699
5,562
2,293
4,748
22,831
10,876
28,555
10,545
28,850
10,304
29,391
9,759
2,390
4,397
1,844
2,813
8,711
2,302
2,240
5,630
1,424
2,820
6,507
1,928
2,188
4,907
1,104
-11,739
-11,441
-15,348
-16,786
-19,543
-19,811
-1,476
-1,986
-479
-8,393
-898
-1,384
-398
-7,020
-515
-759
39
-5,967
743
-835
-241
-6,926
1,076
-1,053
-304
-3,483
607
-1,557
-538
-3,224
-31
189
-48
-235
297
-22
191
97
-86
292
104
95
344
19
-128
281
0
14
7
8
62
-7,401
1,696
-11,506
1,833
-11,270
1,120
-14,180
2,323
-8,853
939
-13,080
781
-18,049
1,092
-16,435
857
1,673
29
0
-3,127
0
0
1,315
0
0
16,821
121
0
-2,014
166
0
2,722
100
0
-11,121
215
0
-23,940
149
0
12,610
12,824
8,014
6,796
16,015
14,827
9,146
3,347
188
7,542
-3,914
-5,149
-12,599
1,564
882
-4,928
-16,065
3,892
3,735
-6,301
-12,982
3,231
2,940
-5,640
-16,007
3,090
3,191
-5,437
-15,326
4,031
5,765
-6,691
-13,437
4,246
3,869
-5,799
-12,880
3,770
2,574
-5,925
-11,700
3,859
2,835
-7,303
-12,892
5,128
2,212
7,153
4,743
2,620
6,267
3,547
2,466
5,324
4,022
2,509
5,936
3,512
2,763
5,946
3,035
2,584
5,593
4,044
2,267
5,441
4,048
2,354
4,908
2,995
2,543
5,047
24,668
10,599
23,988
9,000
24,655
9,373
23,211
8,281
21,600
8,865
24,628
9,150
25,288
9,433
26,922
8,465
2,821
6,020
1,020
2,404
5,769
908
2,336
6,315
1,509
2,256
5,174
739
2,364
6,166
1,155
2,170
5,811
744
2,027
6,746
1,412
-15,684
-9,921
-12,209
-9,479
-10,507
-11,485
-1,684
-2,095
-495
-4,531
-1,137
-1,194
-181
-3,726
-1,044
-1,688
-200
-6,577
-1,261
-1,590
-199
-5,126
-799
-1,746
-559
-4,731
-1,315
-2,467
227
-5,631
218
120
-38
80
123
-29
42
158
-20
214
54
-62
15
11
-26
-14,009
-674
-9,464
502
-11,134
1,588
-7,738
1,080
17,877
0
0
5,000
-19
0
3,267
64
0
6,653
-50
0
2,692
FUTURE AND FORWARD 5
By type of deliverable security
U.S. government securities
14 Bills
Coupon securities
15 Maturing in less than 3.5 years
16 Maturing in 3.5 to 7.5 y e a r s . . .
17 Maturing in 7.5 to 15 years
18 Maturing in 15 years or more..
Federal agency securities
Debt
19 Maturing in less than 3.5 years
20
Maturing in 3.5 to 7.5 y e a r s . . .
21
Maturing in 7.5 years or more.
Mortgage-backed
22
Pass-throughs
23
All others
Other money market instruments
24
Certificates of deposit
25
Commercial paper
26
Bankers' acceptances
Financing 6
Reverse repurchase agreements
Overnight and continuing
Term
166,419
238,768
179,145
224,668
184,273
230,965
176,475
206,381
172,254
221,417
181,215
232,991
188,286
231,902
175,030
236,166
199,952
226,216
186,945
238,628
213,524
218,712
183,406
232,609
273,462
206,983
280,236
195,158
280,196
201,866
272,972
183,270
274,768
182,319
279,230
199,820
286,232
209,260
277,160
205,428
280,539
201,243
257,643
219,019
285,047
205,488
272,492
220,630
50,385
23,369
52,701
23,796
51,440
20,621
57,827
23,426
54,215
21,236
52,139
20,588
49,855
20,600
49,416
21,075
53,447
19,848
53,893
19,441
53,279
18,777
66,698
18,817
6,497
931
6,833
982
6,538
874
7,734
1,335
6,660
780
6,348
645
6,442
860
6,504
1,477
6,851
499
7,038
699
6,979
815
7,516
736
5,109
1,599
4,198
1,605
4,122
1,967
3,919
1,600
3,965
1,619
3,939
1,976
4,293
2,002
3,974
2,014
4,386
2,036
3,903
2,080
4,515
1,781
4,227
2,160
MEMO: Matched book 7
Reverse repurchases
37 Overnight and continuing
38 Term
109,746
195,243
116,036
180,364
116,928
192,791
119,242
168,109
110,214
174,141
115,048
194,190
118,169
196,699
109,659
198,773
129,509
188,946
119,133
198,005
134,482
177,319
122,271
186,329
39
40
144,722
158,034
148,269
144,928
154,692
153,202
140,818
136,535
146,813
133,349
152,413
147,247
155,338
161,308
149,403
157,590
166,706
155,498
145,283
170,691
155,959
158,560
148,311
167,094
77
28
79
30
31
32
33
34
35
36
Overnight and continuing
Term
Securities borrowed
Overnight and continuing
Term
Securities lent
Overnight and continuing
Term
Collateralized loans
Overnight and continuing
Term
Overnight and continuing
Term
1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Weekly figures are close-of-business Wednesday data; monthly figures are averages of weekly data. Data for positions and
financing are averages of close-of-business Wednesday data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities settle on
the issue date of offering. Net immediate positions of mortgage-backed securities
include securities purchased or sold that have been delivered or are scheduled to
be delivered in thirty days or less.
4. Includes securities such as CMOs, REMICs, IOs, and POs.
5. Futures positions are standardized contracts arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
specify delayed delivery. All futures positions are included regardless of time to
delivery. Forward contracts for U.S. government securities and for federal
agency debt securities are included when the time to delivery is more than five
business days. Forward contracts for mortgage-backed securities are included
when the time to delivery is more than thirty days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without a requirement for advance notice by either party; term
agreements have a fixed maturity of more than one business day.
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns listed above. The reverse repurchase and repurchase
numbers are not always equal due to the "matching" of securities of different
values or types of collateralization.
A32
DomesticNonfinancialStatistics • August 1991
1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES
Millions of dollars, end of period
Debt Outstanding
1991
1990
1987
Agency
1990
1989
Nov.
19 Federal Financing Bank debt 1 3
381,498
411,805
434,668
430,842
434,668
445,430
441,440
437,847
35,668
8
11,033
150
35,664
7
10,985
328
42,159
7
11,376
393
42,191
7
11,346
387
42,159
7
11,376
393
42,141
7
11,376
329
42,191
7
11,376
361
41,149
7
11,186
370
1,615
6,103
18,089
6,142
18,335
6,445
17,899
6,948
23,435
6,948
23,510
6,948
23,435
6,948
23,481
6,948
23,499
6,948
22,638
345,830
135,836
22,797
105,459
53,127
22,073
5,850
690
0
375,407
136,108
26,148
116,064
54,864
28,705
8,170
847
4,522
392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055
388,651
116,627
30,035
122,257
53,469
33,777
8,170
1,261
23,055
392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055
403,289
115,402
33,157
125,849
53,717
35,736
8,170
1,261
29,996
399,249
112,874
32,640
125,974
52,480
35,854
8,170
1,261
29,996
396,698
113,311
31,425
124,885
51,890
35,761
8,170
1,261
29,996
142,850
134,873
179,083
177,620
179,083
181,062
181,714
181,907
11,972
5,853
4,940
16,709
11,027
5,892
4,910
16,955
10,979
6,195
4,880
16,519
11,370
6,698
4,850
14,055
11,340
6,698
4,850
14,130
11,370
6,698
4,850
14,055
11,370
6,698
4,850
14,101
11,370
6,698
4,850
14,119
11,180
6,698
4,850
13,258
59,674
21,191
32,078
58,496
19,246
26,324
53,311
19,265
23,724
52,324
18,890
70,896
52,324
18,968
69,310
52,324
18,890
70,896
52,169
18,906
72,968
52,544
18,906
73,227
52,669
18,904
74,348
0
0
303,405
115,727
17,645
97,057
55,275
16,503
1,200
0
0
0
agencies
0
1. Consists of mortgages assumed by the Defense Department between 1957
and 1963 under family housing and homeowners assistance programs.
2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976.
3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter.
4. Consists of debentures issued in payment of Federal Housing Administration
insurance claims. Once issued, these securities may be sold privately on the
securities market.
5. Certificates of participation issued before fiscal 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration; Department of Health, Education, and Welfare; Department of Housing
and Urban Development; Small Business Administration; and the Veterans
Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.
9. Before late 1981, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 22.
Mar.
37,981
13
11,978
183
MEMO
Other Lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other
Feb.
152,417
10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
13
Federal National Mortgage Association
14
Farm Credit Banks
15
Student Loan Marketing Association
16
Financing Corporation
17
Farm Credit Financial Assistance Corporation 1 1
18
Resolution Funding Corporation
Lending to federal and federally sponsored
Export-Import Bank 3
Postal Service"
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association
Jan.
341,386
1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department'
4
Export-Import Bank 2 ' 3
5
Federal Housing Administration
6
Government National Mortgage Association participation
certificates
7
Postal Service 6
8
Tennessee Valley Authority
9
United States Railway Association
20
21
22
23
24
Dec
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation (established in January
1988 to provide assistance to the Farm Credit System) undertook its first
borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, undertook its first
borrowing in October 1989.
13. The F F B , which began operations in 1974, is authorized to purchase or sell
obligations issued, sold, or guaranteed by other federal agencies. Since F F B
incurs debt solely for the purpose of lending to other agencies, its debt is not
included in the main portion of the table in order to avoid double counting.
14. Includes F F B purchases of agency assets and guaranteed loans; the latter
contain loans guaranteed by numerous agencies with the guarantees of any
particular agency being generally small. The Farmers Home Administration item
consists exclusively of agency assets, while the Rural Electrification Administration entry contains both agency assets and guaranteed loans.
Securities Market and Corporate Finance
1.45 NEW SECURITY ISSUES
A33
Tax-Exempt State and Local Governments
Millions of dollars
1991
1990
Type of issue or issuer,
or use
1988
1990
1989
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
114,522
113,646
120,339
8,512
9,961
12,250
7,230
11,335
10,864
10,916
13,383
30,312
84,210
35,774
77,873
39,610
81,295
3,530
4,982
3,024
6,937
3,536
8,714
2,343
4,887
4,838
6,497
4,219
6,645
3,771
7,145
4,541
8,735
5 Special district and statutory authority 2
6 Municipalities, counties, and townships
8,830
74,409
31,193
11,819
71,022
30,805
15,149
72,661
32,510
1,470
4,512
2,530
1,337
5,879
2,745
1,396
7,032
3,822
713
4,563
1,954
2,027
4,903
4,405
1,195
6,599
3,070
1,199
6,604
3,113
1,856
8,899
2,628
7 Issues for new capital, total
79,665
84,062
103,235
7,936
9,058
10,707
6,977
10,403
9,675
10,156
12,842
15,021
6,825
8,496
19,027
5,624
24,672
15,133
6,870
11,427
16,703
5,036
28,894
17,042
11,650
11,739
23,099
6,117
34,607
1,743
1,069
806
1,153
497
2,668
1,009
727
1,301
1,992
540
4,392
1,418
2,008
776
2,001
933
3,571
1,079
711
1,196
891
607
2,493
1,579
146
2,046
698'
768
4,775
2,583
421
1,886
2,140
554
2,091
2,001
1,305
2,171
921
319
3,439
2,082
1,496
1,566
3,100
667
3,931
1 All issues, new and refunding 1
Type of issue
Type of issuer
Use of proceeds
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts beginning 1986.
1.46 NEW SECURITY ISSUES
SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/
Bond Buyer Municipal Data Base beginning 1986. Public Securities Association
for earlier data.
U.S. Corporations
Millions of dollars
1991
1990
Type of issue or issuer,
or use
1988
1989
1990
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.'
Apr.
1 All issues1
410,894'
376,744'
235,461'
14,987
20,535'
25,058
21,044'
17,303'
30,373'
35,523
30,813
2 Bonds2
353,093'
318,873'
235,461'
14,561
19,573'
23,823
19,255'
16,407'
28,571'
31,574
25,500
202,215'
127,700
23,178
181,393'
114,629
22,851
188,969'
n.a.
23,054
12,652
n.a.
1,909
17,708'
n.a.
1,865
22,117
n.a.
1,706
18,579'
n.a.
676
15,753'
n.a.
654
25,510'
n.a.
3,061
29,274
n.a.
2,300
23,000
n.a.
2,500
70,306
62,790
10,275
19,579
5,593
184,548'
76,345
49,726
10,105
17,130
8,461
157,107'
38,248'
11,098
4,926
13,893
4,876'
138,987'
2,598
138
533
928
250
10,113
3,531
548
230
796
378
14,09c
6,593
821
457
2,209
693
13,050
2,831'
1,061
351
2,032
user
11,601
3,375'
1,408
711
689'
97
10,127'
7,960'
1,876'
563
l,39T
669'
16,105'
6,711
1,775
985
506
988
20,609
6,500
2,200
453
2,050
1,000
13,297
57,802
57,870
n.a.
426
962
1,235
1,789
896
1,802
3,949
5,313
6,544
35,911
15,346
6,194
26,030
25,647
3,998
19,443
n.a.
100
327
n.a.
550
412
n.a.
265
970
n.a.
175
1,614
n.a.
0
896
n.a.
150
1,652
n.a.
1,233
2,716
n.a.
543
4,771
n.a.
7,608
8,449
1,535
1,898
515
37,798
9,308
7,446
1,929
3,090
1,904
34,028
n.a.
5,026
126
4,229
416
11,055
0
172
0
39
0
215
60
194
7
297
0
400
154
42
0
462
0
574
46
110
5
288
6
1,327
60
18
242
218
n.a. r
359
183
546
0
335
0
737
564
1,096
249
354
0
1,686
1,796
1,521
416
71
0
1,510
Type of offering
4 Private placement, domestic 3
5. Sold abroad
Industry group
6 Manufacturing
8
9
10
11
Transportation
Public utility
Communication
Real estate and financial
12 Stocks2
Type
15 Private placement
3
Industry group
16 Manufacturing
18 Transportation
19 Public utility
21 Real estate and financial
1. Figures which represent gross proceeds of issues maturing in more than one
year, are principal amount or number of units multiplied by offering price.
Excludes secondary offerings, employee stock plans, investment companies other
than closed-end, intracorporate transactions, equities sold abroad, and Yankee
bonds. Stock data include ownership securities issued by limited partnerships.
2. Monthly data include only public offerings.
3. Data are not available on a monthly basis. Before 1987, annual totals include
underwritten issues only.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and before 1989, the U.S. Securities and Exchange
Commission.
A34
DomesticNonfinancialStatistics • August 1991
1.47 OPEN-END INVESTMENT COMPANIES
Net Sales and Asset Position
Millions of dollars
1990
1989
Item
1991
1990
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar/
Apr.
INVESTMENT COMPANIES 1
1 Sales of own shares2
306,445
345,780
23,387
27,511
25,583
34,553
38,012
30,605
31,597
40,329
2 Redemptions of own shares 3
3 Net sales
272,165
34,280
289,573
56,207
21,053
2,334
23,112
4,399
22,085
3,498
29,484
5,069
27,648
10,364
23,390
7,215
25,372
6,226
32,875
7,454
4 Assets4
553,871
570,744
535,787
538,306
557,676
570,744
590,296
616,472
632,052
646,703
6 Other
44,780
509,091
48,638
522,106
51,128
484,659
51,847
486,459
52,829
504,847
48,638
522,106
53,549
536,747
53,899
562,573
52,895
579,154
53,103
593,600
4. Market value at end of period, less current liabilities.
5. Also includes all U.S. government securities and other short-term debt
securities.
NOTE. Investment Company Institute data based on reports of members, which
comprise substantially all open-end investment companies registered with the
Securities and Exchange Commission. Data reflect newly formed companies after
their initial offering of securities.
1. Data on sales and redemptions exclude money market mutual funds but
include limited maturity municipal bond funds. Data on asset positions exclude
both money market mutual funds and limited maturity municipal bond funds.
2. Includes reinvestment of investment income dividends. Excludes reinvestment of capital gains distributions and share issue of conversions from one fund
to another in the same group.
3. Excludes share redemption resulting from conversions from one fund to
another in the same group.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1989
1988
Account
1989
1990
1991
1990
Q2
1 Corporate profits with inventory valuation and
capital consumption adjustment
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Undistributed profits
337.6
316.7
136.2
180.5
110.0
70.5
311.6
307.7
135.1
172.6
123.5
49.1
298.3
304.7
132.1
172.5
133.9
38.7
321.4
314.6
140.8
173.8
122.1
51.7
306.7
291.4
127.8
163.6
125.0
38.6
290.9
289.8
123.5
166.3
127.7
38.6
296.8
296.9
129.9
167.1
130.3
36.8
306.6
299.3
133.1
166.1
133.0
33.2
300.7
318.5
139.1
179.4
135.1
44.3
288.9
304.1
126.5
177.6
137.2
40.4
288.0
282.7
115.1
167.6
137.5
30.2
7 Inventory valuation
8 Capital consumption adjustment
-27.0
47.8
-21.7
25.5
-11.4
4.9
-23.1
29.9
-6.1
21.4
-14.5
15.6
-11.4
11.3
-.5
7.7
-19.8
2.0
-13.8
-1.4
8.3
-3.0
6
SOURCE. Survey of Current Business (Department of Commerce).
1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment •
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1989
Industry
1989
1990
1990
1991
1991
Q4
Ql
Q2
Q3
Q4
Ql
Q2
Q3
507.40
Manufacturing
Nonmanufacturing
Transportation
6
7
Air
Other
Public utilities
532.96
547.23'
519.58
532.45
535.49
534.86
529.02
535.32
544.16
553.52
82.56
101.24
82.99
109.79
80.06'
110.11'
83.41
108.47
86.35
105.02
84.34
110.82
82.67
111.81
78.62
111.52
81.53
108.58
81.53
109.58
79.71
111.74
9.21
9.87
9.88'
9.38
9.58
9.84
9.98
10.09
9.85
10.05
9.96
6.26
6.73
5.85
6.41
8.98
6.20
5.44'
11.43'
7.47'
6.80
5.75
5.69
6.45
9.35
6.33
6.66
9.36
5.84
5.60
10.05
5.76
6.90
7.17
6.88
5.60
11.27
6.71
5.15
12.60
7.50
5.81
12.14
7.45
44.81
21.47
229.28
43.98
23.02
241.72
45.92'
23.45'
253.48'
44.66
21.15
234.25
43.37
22.34
243.66
42.62
21.65
244.37
43.63
23.85
241.51
46.31
24.22
237.32
43.21
24.18
244.39
47.10
22.65
248.00
46.16
23.34
257.22
•Trade and services are no longer being reported separately. They are included
in Commercial and other, line 10.
1. Anticipated by business.
2. "Other" consists of construction; wholesale and retail trade; finance and
insurance; personal and business services; and communication.
SOURCE. Survey of Current Business (Department of Commerce).
Domestic Finance Companies
A35
Assets and Liabilities1
1.51 DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period; not seasonally adjusted
1990
1989
Account
1987
1989
1988
Q2
Q3
Q4
Ql
Q2
Q3
Q4
ASSETS
Accounts receivable, gross 2
141.1
207.4
39.5
388.1
146.2
236.5
43.5
426.2
140.8
256.0
48.9
445.8
143.9
250.9
47.1
441.9
146.3
246.8
48.7
441.8
140.8
256.0
48.9
445.8
137.9
262.9
52.1
452.8
138.6
274.8
55.4
468.8
140.9
275.4
57.7
474.0
137.4
288.5
59.9
485.9
45.3
6.8
50.0
7.3
52.0
7.7
52.2
7.5
52.9
7.7
52.0
7.7
51.9
7.9
54.3
8.2
55.1
8.6
56.6
8.9
336.0
58.3
368.9
72.4
386.1
91.6
382.2
81.4
381.3
85.2
386.1
91.6
393.0
92.5
406.3
95.5
410.3
102.8
420.4
104.4
394.2
441.3
477.6
463.6
466.4
477.6
485.5
501.9
513.1
524.8
16.4
128.4
15.4
142.0
14.5
149.5
12.1
149.0
12.2
147.2
14.5
149.5
13.9
152.9
15.8
152.4
15.6
148.6
18.6
152.7
28.0
137.1
52.8
31.5
n.a.
n.a.
50.6
137.9
59.8
35.6
n.a.
n.a.
63.8
147.8
62.6
39.4
n.a.
n.a.
59.8
140.5
63.5
38.8
n.a.
n.a.
60.3
145.1
61.8
39.8
n.a.
n.a.
63.8
147.8
62.6
39.4
n.a.
n.a.
70.5
145.7
61.7
40.7
n.a.
n.a.
72.8
153.0
66.1
41.8
n.a.
n.a.
82.0
156.6
68.7
41.6
n.a.
n.a.
77.3
157.4
78.7
40.2
394.2
441.3
477.6
463.6
466.4
477.6
485.5
501.9
513.1
524.8
Less:
LIABILITIES
Debt
1. Components may not sum to totals because of rounding.
1.52 DOMESTIC FINANCE COMPANIES
2. Excludes pools of securitized assets.
Business Credit Outstanding and Net Change1
Millions of dollars, seasonally adjusted
1991
1990
Type
1988
1989
1990
Nov.
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
Retail financing of installment sales
Automotive
Equipment
Pools of securitized assets 2
Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2
Leasing
Automotive
Equipment
Pools of securitized assets 2
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
Dec.
Jan.
Feb.
Mar.
Apr.
234,891
258,957
292,638
289,335
292,638
293,383
294,284
294,225
294,569
37,210
28,185
n.a.
39,479
29,627
698
38,110
31,784
951
38,475
30,908
927
38,110
31,784
951
38,016
31,956
911
37,548
32,058
879
36,649
32,332
828
36,652
32,034
777
32,953
5,971
9,357
n.a.
33,814
6,928
9,985
0
32,283
11,569
9,126
2,950
32,905
10,874
9,451
2,841
32,283
11,569
9,126
2,950
32,404
11,299
9,366
2,836
31,428
11,108
9,142
3,353
30,329
10,880
8,868
3,354
30,066
10,937
8,666
2,905
24,693
57,658
n.a.
26,804
68,240
1,247
39,129
75,626
1,849
31,833
80,818
1,884
39,129
75,626
1,849
38,921
76,841
1,854
38,922
79,052
1,810
39,279
80,969
1,868
39,707
82,750
1,765
17,687
21,176
18,511
23,623
22,475
26,784
21,553
26,866
22,475
26,784
21,891
27,089
22,084
26,899
21,666
27,204
21,265
27,045
Net change (during period)
14 Total
15
16
17
18
19
20
21
22
23
24
25
26
Retail financing of installment sales
Automotive
Equipment
Pools of securitized assets 2
Wholesale
Automotive
Equipment
All other
Pools of securitized assets 2
Leasing
Automotive
Equipment
Pools of securitized assets 2
Loans on commercial accounts receivable and factored
commercial accounts receivable
All other business credit
28,900
24,067
33,681
1,712
3,303
745
901
-59
345
1,070
3,108
n.a.
2,267
1,442
-26
-1,369
2,157
253
-690
241
25
-365
877
24
-94
171
-40
-468
103
-32
-900
274
-51
4
-298
-51
2,883
393
1,029
n.a.
862
958
628
0
-1,531
4,641
-860
2,95c
-1,238
122
-44
649
-622
695
-325
109
121
-270
240
-114
-975
-192
-224
517
-1,100
-228
-275
1
-263
57
-201
-449
2,596
14,166
n.a.
2,110
10,581
526
12,326
7,385
602
298
1,105
160
7,2%
-5,192
-35
-209
1,215
5
1
2,211
-44
358
1,917
58
428
1,781
-103
-484
4,134
826
3,163
3,964
3,163
793
291
922
-82
-585
305
194
-190
-418
305
-401
-158
1. These data also appear in the Board's G.20 (422) release. For address, see
inside front cover.
2. Data on pools of securitized assets are not seasonally adjusted.
A36
Domestic Financial Statistics • August 1991
1.53 MORTGAGE MARKETS
Millions of dollars; e x c e p t i o n s n o t e d .
1990
Nov.
1991
Dec.
Jan.
Feb.
Mar.
Apr.
May
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
6
Conventional mortgages on new homes
Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan/price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)2
Contract rate (percent per year)
Yield (percent per year)
7 OTS series3
8 HUD series4
150.0
110.5
75.5
28.0
2.19
8.81
159.6
117.0
74.5
28.1
2.06
9.76
153.2
112.4
74.8
27.3'
1.93
9.68
151.5
111.2
75.0
27.1
1.68
9.61
156.3
115.4
74.9
28.6
1.85
9.45
148.3
112.3
77.2
28.1
1.75
9.36
153.2
113.8
76.3
28.3
1.73
9.28
136.7
100.4
74.6
25.7
1.59
9.16
151.4
114.5
76.4
26.8
2.12
9.24
146.8
109.2
75.2
26.1
1.54
9.26
9.18
10.30
10.11
10.21
10.01
10.08
9.90
9.86
9.76
9.66
9.65
9.53
9.57
9.49
9.43
9.49
9.60
9.51
9.52
9.46
10.49
9.83
10.24
9.71
10.17
9.51
9.81
9.46
9.66
9.08
9.58
8.87
9.57
8.66
9.61
8.75
9.61
8.62
9.62
8.65
SECONDARY MARKETS
Yield (percent per year)
9 FHA mortgages (HUD series)5
10 GNMA securities6
Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
11 Total
12 FHA/V A-insured
13 Conventional
101,329
19,762
81,567
104,974
19,640
85,335
113,329
21,028
92,302
115,085
21,530
93,555
116,628
21,751
94,877
117,445
21,854
95,591
118,284
21,947
96,337
119,1%
21,976
97,220
120,074
21,972
98,102
121,798
21,609
100,189
Mortgage transactions (during period)
14 Purchases
23,110
22,518
23,959
2,078
2,410
1,781
1,792
1,987
2,942
4,450
Mortgage commitments7
15 Issued (during period)8
16 To sell (during period)9
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2,426
0
2,104
0
1,889
2
1,779
0
3,087
109
3,880
839
3,506
1,066
Mortgage holdings (end of period)9
17 Total
18 FHA/VA
19 Conventional
15,105
620
14,485
20,105
590
19,516
20,419
547
19,871
21,301
524
20,777
21,857
518
21,339
22,300
511
21,789
22,855
503
22,352
23,221
499
22,722
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Mortgage transactions (during period)
20 Purchases
21 Sales
44,077
39,780
78,588
73,446
75,517
73,817
6,981
6,314
10,637
9,918
5,018
4,438
5,217
4,549
4,549
6,183
n.a.
6,226
n.a.
7,694
Mortgage commitments10
22 Contracted (during period)
66,026
88,519
102,401
10,164
12,938
8,437
5,579
5,936
n.a.
n.a.
FEDERAL H O M E LOAN MORTGAGE CORPORATION
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Housing Finance
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at
the end of 10 years.
4. Average contract rates on new commitments for conventional first mortgages; from Department of Housing and Urban Development.
5. Average gross yields on 30-year, minimum-downpayment, Federal Housing
Administration-insured first mortgages for immediate delivery in the private
secondary market. Based on transactions on first day of subsequent month. Large
monthly movements in average yields may reflect market adjustments to changes
in maximum permissable contract rates.
6. Average net yields to investors on Government National Mortgage Asso-
ciation guaranteed, mortgage-backed, fully modified pass-through securities,
assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages
carrying the prevailing ceiling rate. Monthly figures are averages of Friday figures
from the Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to 1- to 4-family loan commitments accepted in FNMA's free market
auction system, and through the FNMA-GNMA tandem plans.
8. Does not include standby commitments issued, but includes standby
commitments converted.
9. Includes participation as well as whole loans.
10. Includes conventional and government-underwritten loans. FHLMC's
mortgage commitments and mortgage transactions include activity under mortgage/
securities swap programs, while the corresponding data for FNMA exclude swap
activity.
Real
Estate
A3 7
1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1991
1990
1989
Type of holder, and type of property
1990'
Ql
Q2
Q3
Q4'
1 AU holders
3,270,118 r
3,556,370'
3,856,205
3,696,882'
3,760,480'
3,815,220'
3,856,205
3,883,700
2
3
4
5
2,201,231'
r
291,405
692,236'
85,247'
2,429,689'
303,416'
739,240'
84,025'
2,708,951
304,004
759,306
83,943
2,554,496'
305,838'
752,688'
83,861'
2,619,522'
301,789'
755,212'
83,957'
2,669,613'
302,993'
758,362'
84,252'
2,708,951
304,004
759,306
83,943
2,740,122
303,543
756,349
83,686
1,831,472'
674,003'
334,367'
33,912'
290,254'
15.47C
1,931,537'
767,069'
389,632'
38,876'
321,906'
16,656'
1,912,099
843,136
454,851
37,116
333,943
17,225
1,939,005'
786,802'
405,009'
37,913'
327,110'
16,771'
1,940,366'
814,598'
431,115'
38,420'
327,930'
17,133'
1,932,978'
830,868'
445,218'
37,898'
330,426'
17,326'
1,912,099
843,136
454,851
37,116
333,943
17,225
1,890,344
855,256
462,975
38,021
336,803
17,457
924,606
671,722
110,775
141,433
676
232,863
11,164
24,560
187,549
9,590
37,846
910,254
669,220
106,014
134,370
650
254,214
12,231
26,907
205,472
9,604
45,476
600,154
91,806
109,168
500
267,335
12,052
29,406
215,121
10,756
48,777
891,921
658,405
103,841
129,056
619
260,282
12,525
27,555
210,422
9,780
45,808
860,903
642,110
97,359
120,866
568
264,865
12,740
28,027
214,024
10,075
47,104
836,047'
626,297'
94,79(f
114,430'
530
266,063
12,773
801,628
600,154
91,806
109,168
500
267,335
12,052
29,406
215,121
10,756
48,777
771,948
584,639
85,654
101,187
468
263,139
11,514
28,847
23 Federal and related agencies
24
Government National Mortgage Association..
25
1- to 4-family
26
Multifamily
27
Farmers Home Administration 5
28
1- to 4-family
29
Multifamily
30
Commercial
31
Farm
200,570
26
26
209,498
23
23
250,762
21
21
216,146
22
22
227,818
21
21
242,695
250,762
21
21
21
262,167
20
20
42,018
18,347
8,513
5,343
9,815
41,176
18,422
9,054
4,443
9,257
41,439
18,527
9,640
4,690
8,582
41,125
18,419
9,199
4,510
8,997
41,175
18,434
9,361
4,545
8,835
41,269
18,476
9,477
4,608
8,708
41,439
18,527
9,640
4,690
8,582
41,545
18,578
9,792
4,754
8,421
32
33
34
35
36
37
38
39
40
41
42
43
Federal Housing and Veterans Administration
1- to 4-family
Multifamily
Federal National Mortgage Association
1- to 4-family
Multifamily
Federal Land Banks
1- to 4-family
Farm
Federal Home Loan Mortgage Corporation . .
1- to 4-family
Multifamily
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348
6,087
2,875
3,212
110,721
102,295
8,426
29,640
8,801
3,593
5,208
6,355
3,027
3,328
112,353
103,300
9,053
29,325
1,197
6,792
3,054
3,738
112,855
103,431
9,424
29,595
1,741
27,854
19,979
17,316
2,663
7,938
3,248
4,690
113,718
103,722
9,996
29,441
1,766
27,675
20,508
17,810
2,697
8,801
9,492
3,600
5,891
118,210
107,053
11,157
29,253
1,884
27,368
21,947
19,460
2,487
44 Mortgage pools or trusts 6
45
Government National Mortgage Association..
46
1- to 4-family
47
Multifamily
48
Federal Home Loan Mortgage Corporation . .
49
1- to 4-family
50
Multifamily
51
Federal National Mortgage Association
52
1- to 4-family
53
Multifamily
,
54
Farmers Home Administration
55
1- to 4-family
56
Multifamily
57
Commercial
58
Farm
811,847
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
946,766
368,367
358,142
10,225
272,870
266,060
1,024,893
385,456
374,960
10,496
295,340
287,232
1,060,640
394,859
384,474
10,385
301,797
293,721
8,077
59 Individuals and others 7
60
1- to 4-family
61
Multifamily
62
Commercial
63
Farm
1- to 4-family
Multifamily
Commercial
Farm
6 Selected financial institutions
7
Commercial banks
8
1- to 4-family
9
Multifamily
10
Commercial
11
Farm
12
13
14
15
16
17
18
19
20
21
22
Savings institutions 3
1- to 4-family
Multifamily
Commercial
Farm
Life insurance companies
1- to 4-family
Multifamily
Commercial
Farm
Finance companies
0
1,210
28,430
21,851
18,248
3,603
0
116,628
106,081
10,547
29,416
1,838
27,577
21,857
19,185
2,672
0
28,128
19,823
16,772
3,051
1,103,950
403,613
391,505
984,811
376,962
366,300
228,232
219,577
8,655
80
21
316,359
308,369
7,990
299,833
291,194
8,639
66
17
281,736
274,084
7,652
246,391
237,916
8,475
76
20
38
40
26
33
24
26
426,229
259,971
79,209
67,618
19,431
468,569
294,517
81,634
73,023
19,395
589,395
401,685
80,808
87,624
19,278
0
1. Based on data from various institutional and governmental sources, with
some quarters estimated in part by the Federal Reserve. Multifamily debt refers
to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not bank trust
departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by FSLIC-insured institutions include loans in process and other
contra assets (credit balance accounts that must be subtracted from the corresponding gross asset categories to yield net asset levels).
4. Assumed to be entirely 1- to 4-family loans.
0
801,628
6,810
0
12,108
0
10,662
0
28,100
214,585
10,605
49,784
21
0
0
3,593
5,208
116,628
106,081
10,547
29,416
1,838
27,577
21,857
19,185
2,672
1,103,950
403,613
391,505
12,108
212,018
10,760
49,658
0
1,138,889
412,982
400,322
12,660
328,305
319,978
8,327
312,101
303,554
8,547
63
16
263,330
254,811
8,519
72
19
281,806
18
316,359
308,369
7,990
299,833
291,194
8,639
66
17
25
31
24
30
24
29
24
26
23
24
556,920
374,143
83,666
79,576
19,536
567,403
382,343
82,040
83,557
19,463
578,908
393,027
80,636
85,865
19,379
589,395
401,685
80,808
87,624
19,278
592,301
403,791
80,448
88,875
19,187
0
8,108
0
273,335
8,471
70
0
0
0
5. Farmers Home Administration-guaranteed securities sold to the Federal
Financing Bank were reallocated from F m H A mortgage pools to F m H A mortgage
holdings in 1986:4, because of accounting changes by the Fanners Home
Administration.
6. Outstanding principal balances of mortgage pools backing securities insured
or guaranteed by the agency indicated. Includes private pools which are not
shown as a separate line item.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.
A38
DomesticNonfinancialStatistics • August 1991
1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change, seasonally adjusted
Millions of dollars, amounts outstanding, end of period
1990
Holder, and type of credit
1989
1991
1990
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar/
Apr.
Seasonally adjusted
1 Total
718,863
735,102
733,844
735,547
735,433
736.411
735,102
732,962
732,762
732,442
734,140
2
3
4
5
290,676
199,082
22,471
206,633
284,585
220,110
20,919
209,487
286,818
217,024
21,191
208,811
285,627
219,090
21,073
209,758
285,024
220,031
20,680
209,698
284.412
221,690
20,492
209,817
284,585
220,110
20,919
209,487
283,746
219,588
20,459
209,170
282,626
221,556
20,200
208,379
280,689
224,817
20,123
206,813
280,518
226,082
20,171
207,369
Automobile
Revolving
Mobile home
Other
Not seasonally adjusted
6 Total
730,901
748,300
736,480
738,946
736,091
738,626
748,300
736,399
729,264
725,462
728,419
342,770
140,832
93,114
44,154
57,253
3,935
48,843
347,466
137,450
92,911
43,552
45,616
4,822
76,483
340,525
139,496
93,071
39,557
51,822
4,722
67,287
342,698
140,890
92,996
38,963
50,683
4,723
67,993
341,755
141,329
93,190
38,282
48,055
4,749
68,731
342,882
139,195
92,918
39,095
47,121
4,753
72,662
347,466
137,450
92,911
43,552
45,616
4,822
76,483
341,426
134,965
91,991
40,945
44,939
4,766
77,367
339,282
133,021
91,131
38,864
43,875
4,404
78,687
335,754
131,552
90,772
38,497
42,491
4,296
82,100
336,214
134,723
90,355
38,317
42,327
4,357
82,126
By major type of credit3
14 Automobile
15
Commercial banks
16 Finance companies
17 Pools of securitized assets
290,705
126,288
82,721
18,235
284,813
126,259
74,397
24,537
289,371
127,647
77,205
21,988
289,169
128,268
78,116
21,390
287,304
127,667
78,033
20,944
285,379
126,544
75,224
23,475
284,813
126,259
74,397
24,537
282,214
126,235
72,015
25,123
279,913
124,745
70,287
26,872
277,798
123,411
69,233
27,755
278,274
122,736
71,761
26,775
18 Revolving
19 Commercial banks
20
Retailers
21
Gasoline companies
22
Pools of securitized assets 2
210,310
130,811
39,583
3,935
23,477
232,370
132,433
39,029
4,822
44,335
216,633
126,683
35,101
4,722
38,194
218,279
127,415
34,528
4,723
39,606
218,337
127,108
33,867
4,749
40,798
222,643
129,117
34,657
4,753
42,297
232,370
132,433
39,029
4,822
44,335
223,606
125,814
36,510
4,766
44,773
220,714
125,673
34,509
4,404
44,451
221,400
124,619
34,179
4,296
46,722
222,713
126,059
34,013
4,357
46,616
22,240
9,112
4,716
20,666
9,763
5,252
21,185
9,338
5,358
21,195
9,263
5,423
20,773
9,274
5,400
20,472
9,199
5,364
20,666
9,763
5,252
20,614
9,748
5,367
20,362
9,730
5,330
20,030
9,632
5,328
20,125
9,565
5,574
207,646
76,559
53,395
4,571
7,131
210,451
79,011
57,801
4,523
7,611
209,291
76,857
56,933
4,456
7,105
210,303
77,752
57,351
4,435
6,997
209,677
77,706
57,896
4,415
6,989
210,132
78,022
58,607
4,438
6,890
210,451
79,011
57,801
4,523
7,611
209,965
79,629
57,583
4,435
7,471
208,275
79,134
57,404
4,355
7,364
206,234
78,092
56,991
4,318
7,603
207,307
77,854
57,388
4,304
8,735
7
8
9
10
11
12
13
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets 2 ..
23 Mobile home
24
Commercial banks
25
Finance companies
26 Other
27
Commercial banks
28
Finance companies
29
Retailers
30
Pools of securitized assets 2
1. The Board's series cover most short- and intermediate-term credit extended
to individuals that is scheduled to be repaid (or has the option of repayment) in
two or more installments.
These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.
Consumer Installment Credit
A39
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT1
Percent unless noted otherwise
1990
Item
1988
1989
1991
1990
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
INTEREST RATES
1
?
3
4
Commercial banks 2
Auto finance companies
5
6
10.85
14.68
13.54
17.78
12.07
15.44
14.11
18.02
11.78
15.46
14.02
18.17
n.a.
n.a.
n.a.
n.a.
11.62
15.69
13.99
18.23
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
11.60
15.42
13.88
18.28
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12.60
15.11
12.62
16.18
12.54
15.99
12.57
16.12
12.74
16.07
12.86
16.04
12.99
15.70
13.16
15.90
13.14
15.82
13.14
15.82
56.2
46.7
54.2
46.6
54.6
46.1
54.6
46.1
54.6
46.0
54.7
45.8
54.9
47.4
55.2
47.1
55.2
47.2
55.4
47.3
94
98
91
97
87
95
85
95
85
95
85
94
88
96
88
%
87
97
87
97
11,663
7,824
12,001
7,954
12,071
8,289
11,917
8,423
11,986
8,494
12,140
8,530
12,229
8,600
12,081
8,605
12,121
8,763
11,993
8,751
O T H E R TERMS 4
Maturity (months)
7
8
Loan-to-value ratio
<)
10
Amount financed (dollars)
11
12
1. These data also appear in the Board's G.19 (421) release. For address, see
inside front cover.
2. Data for midmonth of quarter only.
3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.
A40
1.57
DomesticNonfinancialStatistics • August 1991
F U N D S RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1989
Q3
199C
Q4
1991
Qi
Q2
Q3
Q4
Ql
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors..
836.9
687.0
760.8
678.2
641.2
678.8
620.2
808.9
617.6
655.7
482.6
474.7
By sector and instrument
2 U.S. government
3 Treasury securities
4
Agency issues and mortgages
215.0
214.7
.4
144.9
143.4
1.5
157.5
140.0
17.4
151.6
150.0
1.6
272.5
264.4
8.2
173.9
166.8
7.1
185.0
189.6
-4.6
247.3
217.8
29.6
228.2
222.9
5.4
286.1
287.5
-1.3
328.4
329.4
-1.0
204.7
228.7
-24.0
5 Private domestic nonfinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
8
Corporate bonds
9
Mortgages
10
Home mortgages
11
Multifamily residential
12
Commercial
13
Farm
621.9
465.8
22.7
126.8
316.3
218.7
33.5
73.6
-9.5
542.1
453.2
49.3
79.4
324.5
234.9
24.4
71.6
-6.4
603.3
459.2
49.8
102.9
306.5
231.0
16.7
60.8
-2.1
526.6
379.8
30.4
73.7
275.7
218.0
16.4
42.7
-1.5
368.7
309.3
18.5
64.5
226.4
211.6
3.0
11.9
-.1
504.9
369.2
34.1
62.7
272.4
221.0
11.8
40.9
-1.3
435.2
347.0
19.1
87.4
240.5
214.3
9.5
19.9
-3.2
561.6
391.6
12.4
45.2
334.0
283.5
22.9
27.1
.5
389.4
338.7
24.5
83.7
230.5
235.2
-15.7
13.0
-1.9
369.6
280.2
28.0
47.7
204.5
183.1
3.8
15.8
1.8
154.2
226.9
9.0
81.6
136.3
144.4
.8
-8.2
-.8
270.0
264.6
7.1
85.2
172.4
181.0
.2
-9.4
.5
14
15
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
156.1
58.0
66.9
-9.3
40.5
88.9
33.5
10.0
2.3
43.2
144.1
50.2
39.8
11.9
42.2
146.8
39.1
39.9
20.4
47.4
59.3
14.3
-5.0
9.7
40.3
135.6
37.1
50.8
16.9
30.9
88.2
44.1
7.7
-6.9
43.3
170.0
30.4
21.1
69.6
48.9
50.7
2.8
8.8
-6.2
45.3
89.3
21.3
-15.8
17.3
66.6
-72.7
2.5
-34.0
-41.7
.5
5.4
-23.6
38.7
5.1
-14.9
19
20
21
22
23
24
25
By borrowing sector
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
621.9
36.2
293.0
292.7
-16.3
99.2
209.7
542.1
48.8
302.2
191.0
-10.6
77.9
123.7
603.3
45.6
314.9
242.8
-7.5
65.7
184.6
526.6
29.6
285.0
211.9
1.6
50.8
159.5
368.7
14.6
254.3
99.8
2.5
11.1
86.2
504.9
28.6
290.8
185.4
-2.1
40.2
147.3
435.2
16.5
291.8
126.9
8.9
35.0
83.1
561.6
8.9
364.7
188.0
6.3
45.5
136.2
389.4
17.7
271.5
100.2
-10.8
3.5
107.5
369.6
28.5
221.7
119.4
11.6
18.3
89.4
154.2
3.1
159.4
-8.3
3.1
-23.0
11.6
270.0
7.1
192.6
70.3
5.0
-17.0
82.2
26 Foreign net borrowing in United States
27
Bonds
28
Bank loans n.e.c
29
Open market paper
30
U.S. government loans
9.7
3.1
-1.0
11.5
-3.9
4.5
7.4
-3.6
2.1
-1.4
6.3
6.9
-1.8
8.7
-7.5
10.9
5.3
-.1
13.3
-7.5
32.1
21.6
5.9
12.3
-7.6
30.4
8.1
3.7
20.7
-2.1
16.9
-1.0
-4.3
22.2
.1
2.3
32.7
-6.7
-16.4
-7.3
41.0
25.8
-2.0
23.1
-5.9
45.1
1.2
17.4
27.3
-.8
40.2
26.5
14.9
15.3
-16.5
11.7
8.9
-27.7
45.5
-15.0
31 Total domestic plus foreign
846.6
691.5
767.1
689.1
673.3
709.2
637.1
811.2
658.6
700.8
522.8
486.4
Financial sectors
32 Total net borrowing by financial sectors
285.1
300.2
247.6
205.5
203.0
123.9
187.3
191.4
177.5
175.4
267.5
115.1
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
154.1
15.2
139.2
-.4
171.8
30.2
142.3
-.8
119.8
44.9
74.9
.0
151.0
25.2
125.8
.0
167.4
17.0
150.3
.0
124.8
13.2
111.6
.0
156.4
-4.7
161.1
.0
171.7
9.7
162.0
.0
184.0
17.1
166.8
.0
139.2
22.3
116.9
.0
174.6
19.0
155.5
.0
168.0
14.5
153.5
.0
131.0
82.9
.1
4.0
24.2
19.8
128.4
78.9
.4
-3.2
27.9
24.4
127.8
51.7
.3
1.4
54.8
19.7
54.5
36.8
.0
1.8
26.9
-11.0
35.6
50.2
.8
.7
8.6
-24.7
-.9
26.7
.3
2.0
11.0
-41.0
30.9
39.6
-.4
4.2
36.3
-48.8
19.7
35.1
-.7
-2.2
9.5
-22.0
-6.5
68.8
.8
-.6
-44.6
-30.9
36.2
20.3
2.6
1.9
41.9
-30.5
93.0
76.7
.5
3.6
27.7
-15.5
-52.9
37.5
1.0
1.0
-64.5
-27.9
285.1
300.2
247.6
205.5
203.0
123.9
187.3
191.4
177.5
175.4
267.5
115.1
14.9
139.2
131.0
-3.6
15.2
20.9
4.2
54.7
.8
39.0
29.5
142.3
128.4
6.2
14.3
19.6
8.1
40.8
.3
39.1
44.9
74.9
127.8
-3.0
5.2
19.9
1.9
67.7
3.5
32.5
25.2
125.8
54.5
-1.4
6.2
-14.1
-1.4
46.3
-1.9
20.8
17.0
150.3
35.6
-1.1
-28.0
-31.2
-.5
56.7
-.4
40.1
13.2
111.6
-.9
3.5
16.5
-44.7
-2.3
23.5
-3.1
5.7
-4.7
161.1
30.9
-.7
-3.9
-56.2
.7
52.6
.1
38.2
9.7
162.0
19.7
-4.9
-8.0
-15.8
-8.3
25.3
-.6
32.1
17.1
166.8
-6.5
-7.9
-32.1
-53.5
6.5
27.7
-2.3
55.1
22.3
116.9
36.2
-12.5
-40.4
-31.9
-4.2
96.9
.9
27.5
19.0
155.5
93.0
21.0
-31.6
-23.4
4.0
76.9
.6
45.6
14.5
153.5
-52.9
-22.0
-27.4
-29.1
-2.2
-5.0
.4
32.3
33
34
35
36
37 Private financial sectors
38
Corporate bonds
39
Mortgages
40
Bank loans n.e.c
41
Open market paper
42
Loans from Federal Home Loan Banks
By sector
43
44
45
46
47
48
49
50
51
52
53
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
REITs
SCO Issuers
Flow of Funds
A41
1.57—Continued
1989
Transaction category, sector
1986
1987
1988
1989
199C
1991
1990'
Q3
Q4
Ql
Q2
Q3
Q4
Ql
All sectors
54
55
56
57
58
59
60
61
62
Total net borrowing
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
63
MEMO: U.S. government, cash balance
64
65
Totals net of changes in U.S. government cash balances
Net borrowing by domestic noniinancial
Net borrowing by U.S. government
1,131.7
991.7
1,014.7
894.5
876.3
833.0
824.4
1,002.5
836.1
876.2
790.3
601.5
369.5
22.7
212.8
316.4
58.0
69.9
26.4
56.1
317.5
49.3
165.7
324.9
33.5
3.2
32.3
65.5
277.2
49.8
161.5
306.7
50.2
39.4
75.4
54.4
302.6
30.4
115.8
275.7
39.1
41.5
60.6
28.9
439.9
18.5
136.3
227.1
14.3
1.6
30.7
8.0
298.7
34.1
97.6
272.7
37.1
56.5
48.5
-12.2
341.4
19.1
125.9
240.1
44.1
7.5
51.6
-5.4
419.0
12.4
112.9
333.3
30.4
12.2
62.6
19.6
412.2
24.5
178.3
231.3
2.8
6.2
-27.7
8.5
425.4
28.0
69.3
207.1
21.3
3.5
86.5
35.2
503.0
9.0
184.8
136.8
2.5
-15.6
1.2
-31.4
372.7
7.1
131.6
173.3
-23.6
12.1
-13.8
-57.9
.0
-7.9
10.4
-5.9
8.3
-22.7
-7.3
22.9
-38.1
21.1
27.4
51.8
836.9
215.0
694.9
152.8
750.4
147.1
684.1
157.5
632.9
264.2
701.6
196.7
627.6
192.4
786.0
224.4
655.7
266.3
634.7
265.1
455.2
301.0
422.9
152.9
External corporate equity funds raised in United States
66 Total net share issues
67
68
69
70
71
Mutual funds
All other
Noniinancial corporations
Financial corporations
Foreign shares purchased in United States
86.8
10.9
-124.2
-63.7
11.4
-61.0
14.9
-9.4
47.3
-15.9
23.6
101.3
159.0
-72.2
-85.0
11.6
1.2
73.9
-63.0
-75.5
14.6
-2.1
1.1
-125.3
-129.5
3.3
.9
41.3
-105.1
-124.2
2.4
16.7
61.4
-49.9
-63.0
6.1
6.9
57.9
-118.9
-146.3
-.1
27.5
72.4
-57.6
-79.3
4.5
17.2
47.8
-57.2
-69.0
10.1
1.7
71.0
-23.6
-48.0
.6
23.8
46.1
-62.0
-74.0
13.0
-1.0
80.6
-56.9
-61.0
.9
3.2
87.6
13.7
-17.0
1.9
28.8
A42
1.58
DomesticNonfinancialStatistics • August 1991
DIRECT A N D INDIRECT S O U R C E S O F F U N D S TO CREDIT M A R K E T S
Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates.
1989
Transaction category, or sector
1986
1987
1988
1989
1990'
Q3
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
2
3
4
5
6
By public agencies and foreign
Total net advances
U.S. government securities
Residential mortgages
FHLB advances to thrifts
Other loans and securities
1991
199C
Q4
Ql
Q2
Q3
Q4
Ql
836.9
687.0
760.8
678.2
641.2
678.8
620.2
808.9
617.6
655.7
482.6
474.7
280.2
69.4
136.3
19.8
54.7
248.8
70.1
139.1
24.4
15.1
210.7
85.2
86.3
19.7
19.4
187.6
30.7
137.9
-11.0
30.0
261.0
74.4
184.1
-24.7
27.1
218.3
115.7
127.7
-41.0
15.8
203.8
27.1
178.3
-48.8
47.1
218.6
16.4
182.3
-22.0
41.8
300.6
99.9
206.7
-30.9
24.8
324.8
139.1
160.8
-30.5
55.3
200.0
42.1
186.7
-15.5
-13.4
304.5
127.6
184.1
-27.9
20.7
Total advanced, by sector
U.S. government
Sponsored credit agencies
Monetary authorities
Foreign
Agency and foreign borrowing not in line 1
11 Sponsored credit agencies and mortgage pools
12 Foreign
9.7
153.3
19.4
97.8
-7.9
169.3
24.7
62.7
-9.4
112.0
10.5
97.6
-2.4
125.3
-7.3
72.1
32.9
166.7
8.1
53.2
-9.3
126.4
-31.2
132.4
5.7
158.4
-4.6
44.2
37.7
184.2
-6.3
3.0
34.2
166.3
40.4
59.8
62.5
165.6
24.4
72.3
-2.8
150.8
-25.9
77.9
31.6
172.3
53.3
47.3
154.1
9.7
171.8
4.5
119.8
6.3
151.0
10.9
167.4
32.1
124.8
30.4
156.4
16.9
171.7
2.3
184.0
41.0
139.2
45.1
174.6
40.2
168.0
11.7
Private domestic funds advanced
13 Total net advances
14 U.S. government securities
15 State and local obligations
16 Corporate and foreign bonds
17 Residential mortgages
18 Other mortgages and loans
19 LESS: Federal Home Loan Bank advances
720.5
300.1
22.7
89.7
115.9
212.0
19.8
614.5
247.4
49.3
66.9
120.2
155.2
24.4
676.2
192.1
49.8
91.3
161.3
201.4
19.7
652.5
271.9
30.4
66.1
96.5
176.6
-11.0
579.7
365.5
18.5
80.2
30.4
60.5
-24.7
615.7
183.0
34.1
65.6
105.1
186.9
-41.0
589.7
314.3
19.1
70.6
45.5
91.5
-48.8
764.2
402.6
12.4
68.4
124.1
134.9
-22.0
542.0
312.3
24.5
97.5
12.8
64.1
-30.9
515.2
286.2
28.0
46.7
26.1
97.7
-30.5
497.4
460.9
9.0
108.3
-41.5
-54.8
-15.5
350.0
245.0
7.1
69.8
-2.9
3.0
-27.9
Private financial intermediation
20 Credit market funds advanced by private financial
institutions
21 Commercial banking
22
Savings institutions
23 Insurance and pension funds
24 Other finance
730.0
198.1
107.6
160.1
264.2
528.4
135.4
136.8
179.7
76.6
562.3
156.3
120.4
198.7
86.9
511.1
421.6 3 5 3 . Y 561.9'
177.3
120.1 183.7
184.3
-90.9 -145.8 -135.8 -201.9
177.9
201.0 136.1
205.1
246.8
246.3 i7o.<r 374.5'
449.2
257.8
419.4
560.2
149.4
188.1
119.3
126.1
102.7
63.2
-56.6 -210.4 -168.6 -147.4 -154.2
112.6
160.8
226.8
228.3
188.2
71.7
156.8
115.3
257.0
456.1
25 Sources of funds
26 Private domestic deposits and RPs
27 Credit market borrowing
28 Other sources
29
Foreign funds
30
Treasury balances
31
Insurance and pension reserves
32
Other, net
730.0
277.1
131.0
321.8
12.9
1.7
119.9
187.3
528.4
162.8
128.4
237.1
43.7
-5.8
135.4
63.9
562.3
229.2
127.8
205.3
9.3
7.3
177.6
11.0
511.1
225.2
54.5
231.4
-9.9
-3.4
140.5
104.2
421.6
58.3
35.6
327.7
35.7
5.3
170.6
116.1
284.4
-.9
70.4'
30.4
-19.9
82.6
-22.7 r
561.9'
208.0
30.9
323.1'
-20.6
5.0
193.9
144.7'
449.2
125.0
19.7
304.5
46.4
13.1
137.9
107.1
257.8
20.4
-6.5
243.8
14.1
-13.4
211.9
31.2
419.4
77.8
36.2
305.4
121.2
18.2
162.2
3.8
560.2
149.4
231.4
10.1
93.0 -52.9
457.0 -29.1
38.6
-38.9
3.4
30.1
170.4
33.9
322.1 -131.6
Private domestic nonfinancial investors
33 Direct lending in credit markets
34 U.S. government securities
35 State and local obligations
36 Corporate and foreign bonds
37 Open market paper
38 Other
121.5
27.0
-19.9
52.9
9.9
51.7
214.6
86.0
61.8
23.3
15.8
27.6
241.7
129.0
53.5
-9.4
36.4
32.2
195.9
134.3
28.4
.7
5.4
27.1
193.7
144.0
-.5
9.9
18.4
21.9
260.8'
188.7'
39.0
-4.7
21.4
16.4
58.7'
65.8'
12.8
14.6
-64.6
30.1
334.7
185.6
-.2
54.8
61.0
33.5
277.8
170.4
12.8
29.0
42.5
23.0
132.0
159.9
15.6
-92.1
7.7
40.9
30.2
59.8
-30.0
48.0
-37.7
-9.8
147.7
121.1
-2.2
-24.6
16.6
36.7
39 Deposits and currency
40 Currency
41 Checkable deposits
42 Small time and savings accounts
43 Money market fund shares
44 Large time deposits
45
Security RPs
46 Deposits in foreign countries
297.5
14.4
96.4
120.6
43.2
-3.2
20.2
5.9
179.3
19.0
-.9
76.0
28.9
37.2
21.6
-2.5
232.8
14.7
12.9
122.4
20.2
40.8
32.9
-11.2
241.3
11.7
1.5
100.5
85.2
23.1
14.9
4.4
88.0
22.6
1.2
52.5
61.8
-42.7
-14.5
7.0
261.8
6.0
14.7
163.1
116.7
-23.8
13.7
-28.6
230.6
10.1
65.8
109.1
65.6
-13.4
-19.2
12.4
142.1
26.1
2.2
110.7
72.2
-25.2
-34.9
-8.9
56.3
23.1
-19.4
18.2
4.7
-5.5
22.3
12.8
113.6
32.2
15.1
59.7
110.9
-82.6
-25.2
3.6
39.8
9.1
7.0
21.4
59.3
-57.5
-20.1
20.6
243.0
46.0
27.9
103.2
128.5
13.9
-42.2
-34.4
47 Total of credit market instruments, deposits, and
currency
419.0
393.9
474.5
437.2
281.7
522.7'
289.3'
476.8
334.1
245.6
70.0
390.7
48
49
50
33.1
101.3
110.7
36.0
86.0
106.4
27.5
83.2
106.9
27.2
78.3
62.2
38.8
72.7
88.9
30.8
57.5'
162.8
32.0
95.3'
23.6
27.0
58.8
49.4
45.6
47.6
73.8
46.3
81.4
193.5
38.2
112.6
39.0
62.6
42.7
85.9
10.9 -124.2
-63.7
-61.0
14.9
-9.4
47.3
-15.9
23.6
101.3
61.4
57.9
-49.9 -118.9
21.4
6.1
-10.0 -67.1
72.4
-57.6
76.9
-62.1
47.8
-57.2
41.1
-50.5
71.0
-23.6
72.8
-25.5
46.1
-62.0
-66.2
50.3
80.6
-56.9
37.9
-14.2
87.6
13.7
43.1
58.2
7
8
9
10
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
51 Total net issues
52 Mutual fund shares
53 Other equities
54 Acquisitions by financial institutions
55 Other net purchases
86.8
159.0
-72.2
50.9
35.9
73.9
1.1
41.3
-63.0 -125.3 -105.1
32.0
-2.9
17.2
-21.2 -121.4 -80.9
NOTES BY LINE NUMBER.
1. Line 1 of table 1.57.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies, and net
issues of federally related mortgage pool securities.
13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33.
Also sum of lines 28 and 47 less lines 40 and 46.
18. Includes farm and commercial mortgages.
26. Line 39 less lines 40 and 46.
27. Excludes equity issues and investment company shares. Includes line 19.
29. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates, less
claims on foreign affiliates and deposits by banking in foreign banks.
30. Demand deposits and note balances at commercial banks.
11.4
31. Excludes net investment of these reserves in corporate equities.
32. Mainly retained earnings and net miscellaneous liabilities.
33. Line 13 less line 20 plus line 27.
34-38. Lines 14-18 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 38 includes mortgages.
40. Mainly an offset to line 9.
47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46.
48. Line 2/line 1.
49. Line 20/line 13.
50. Sum of lines 10 and 29.
51. 53. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Division of Research
and Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
Flow of Funds
A43
1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING
Billions of dollars; period-end levels.
1990r
1989
Transaction category, sector
1986
1987
1988
1991
1989
Q4
Q3
Ql
Q2
Q3
Q4
Ql
Nonfinancial sectors
1
7,646.3
8,343.9
9,096.0
9,805.2
9,605.1
9,805.2
10,075.7
10,234.4
10,393.9
10,560.2
10,634.2
1,815.4
1,811.7
3.6
1,960.3
1,955.2
5.2
2,117.8
2,095.2
22.6
2,269.4
2,245.2
24.2
2,206.1
2,180.7
25.4
2,269.4
2,245.2
24.2
2,360.9
2,329.3
31.6
2,401.7
2,368.8
32.9
2,470.2
2,437.6
32.6
2,568.9
2,536.5
32.4
2,624.7
2,598.4
26.4
5 Private domestic noniinancial sectors
6
Debt capital instruments
7
Tax-exempt obligations
Corporate bonds
8
9
Mortgages
Home mortgages
10
Multifamily residential
11
Commercial
17
13
Farm
5,831.0
3,962.7
679.1
669.4
2,614.2
1,720.8
246.2
551.4
95.8
6,383.6
4,427.9
728.4
748.8
2,950.7
1,943.1
270.0
648.7
88.9
6,978.2
4,886.4
790.8
851.7
3,243.8
2,173.9
286.7
696.4
86.8
7,535.8
5,283.3
821.2
925.4
3,536.6
2,404.3
304.4
742.6
85.3
7,399.0
5,189.9
816.4
903.5
3,470.0
2,347.6
301.2
734.9
86.3
7,535.8
5,283.3
821.2
925.4
3,536.6
2,404.3
304.4
742.6
85.3
7,714.8
5,453.0
822.2
937.1
3,693.6
2,554.5
304.8
750.5
83.9
7,832.6
5,542.3
827.2
958.1
3,757.0
2,619.5
300.6
752.9
84.0
7,923.7
5,618.5
837.4
970.0
3,811.1
2,669.6
301.6
755.6
84.3
7,991.3
5,682.1
839.7
990.4
3,852.0
2,709.0
302.6
756.5
83.9
8,009.5
5,730.5
839.6
1,011.7
3,879.2
2,740.1
302.1
753.4
83.7
14
IS
16
17
18
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other
1,868.2
659.8
666.0
62.9
479.6
1,955.7
693.2
673.3
73.8
515.3
2,091.9
743.5
713.1
85.7
549.6
2,252.6
790.6
763.0
107.1
591.9
2,209.1
771.0
750.7
113.3
574.1
2,252.6
790.6
763.0
107.1
591.9
2,261.8
782.3
749.7
126.0
603.8
2,290.3
789.4
755.7
128.7
616.6
2,305.3
798.7
749.8
131.8
625.0
2,309.2
808.9
751.2
116.9
632.3
2,279.0
782.3
748.9
119.9
628.0
19
70
71
??
73
74
25
By borrowing sector
State and local governments
Households
Nonfinancial business
5,831.0
510.1
2,596.1
2,724.8
156.6
997.6
1,570.6
6,383.6
558.9
2,879.1
2,945.6
145.5
1,075.4
1,724.6
6,978.2
604.5
3,191.5
3,182.2
137.6
1,145.1
1,899.5
7,535.8
634.1
3,501.8
3,400.0
139.2
1,195.9
2,064.8
7,399.0
629.9
3,411.4
3,357.6
139.2
1,183.0
2,035.5
7,535.8
634.1
3,501.8
3,400.0
139.2
1,195.9
2,064.8
7,714.8
634.3
3,650.7
3,429.9
137.3
1,208.3
2,084.3
7,832.6
637.6
3,725.8
3,469.3
138.7
1,208.7
2,121.9
7,923.7
647.8
3,788.2
3,487.7
141.6
1,208.7
2,137.4
7,991.3
648.7
3,846.4
3,496.1
140.5
1,207.0
2,148.7
8,009.5
648.6
3,860.0
3,500.8
139.4
1,203.7
2,157.8
238.3
74.9
26.9
37.4
99.1
244.6
82.3
23.3
41.2
97.7
253.9
89.2
21.5
49.9
93.2
261.5
94.5
21.4
63.0
82.6
257.7
94.2
22.6
57.5
83.4
261.5
94.5
21.4
63.0
82.6
261.8
103.3
19.0
59.3
80.3
273.1
108.4
19.3
65.1
80.3
283.4
108.9
23.7
71.5
79.4
293.7
116.1
27.3
75.3
75.0
296.3
118.9
19.6
87.0
70.7
7,884.7
8,588.5
9,349.9
10,066.8
9,862.8
10,066.8
10,337.5
10,507.5
10,677.3
10,853.8
10,930.5
domestic noniinancial sectors
By sector and instrument
? U.S. government
Treasury securities
4
Agency issues and mortgages
Nonfarm noncorporate
Corporate
76 Foreign credit market debt held in
United States
77
Bonds
78
Bank loans n.e.c
79
Open market paper
30
U.S. government loans
31 Total domestic plus foreign
Financial sectors
3? Total credit market debt owed by
financial sectors
33
34
35
36
V
38
39
40
41
42
By instrument
U.S. government related
Sponsored credit agency securities
Mortgage pool securities
Loans from U.S. government
Private financial sectors
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan B a n k s . . .
43 Total, by sector
44
45
46
47
48
49
50
51
5?
53
Sponsored credit agencies
Mortgage pools
Private financial sectors
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
REITs
SCO issuers
1,529.8
1,836.8
2,084.4
2,322.4
2,263.8
2,322.4
2,358.4
2,406.7
2,448.8
2,527.7
2,543.2
810.3
273.0
531.6
5.7
719.5
287.4
2.7
36.1
284.6
108.6
978.6
303.2
670.4
5.0
858.2
366.3
3.1
32.8
322.9
133.1
1,098.4
348.1
745.3
5.0
986.1
418.0
3.4
34.2
377.7
152.8
1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8
1,203.6
370.4
828.2
5.0
1,060.2
472.7
3.5
34.1
398.8
151.1
1,249.3
373.3
871.0
5.0
1,073.0
482.7
3.4
36.0
409.1
141.8
1,288.2
378.1
905.2
5.0
1,070.2
491.7
3.2
33.2
409.1
132.9
1,330.1
381.0
944.2
5.0
1,076.5
509.4
3.5
34.8
402.5
126.3
1,367.9
384.4
978.5
5.0
1,080.9
514.4
4.1
34.9
409.6
117.9
1,418.4
393.6
1,019.9
5.0
1,109.3
533.6
4.2
36.7
417.7
117.1
1,455.3
396.9
1,053.5
5.0
1,087.9
542.5
4.5
34.8
399.2
107.0
1,529.8
1,836.8
2,084.4
2,322.4
2,263.8
2,322.4
2,358.4
2,406.7
2,448.8
2,527.7
2,543.2
278.7
531.6
719.5
75.6
116.8
119.8
8.6
328.1
6.5
64.0
308.2
670.4
858.2
81.8
131.1
139.4
16.7
378.8
7.3
103.1
353.1
745.3
986.1
78.8
136.2
159.3
18.6
446.1
11.4
135.7
378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
496.2
10.1
184.4
375.4
828.2
1,060.2
77.0
144.0
155.7
17.5
481.2
10.0
174.9
378.3
871.0
1,073.0
77.4
142.5
145.2
17.2
496.2
10.1
184.4
383.0
905.2
1,070.2
73.4
142.0
137.1
15.4
499.1
10.1
193.1
385.9
944.2
1,076.5
73.3
134.3
125.6
16.7
509.8
9.8
206.9
389.4
978.5
1,080.9
70.7
122.9
116.2
16.2
530.9
10.2
213.8
398.5
1,019.9
1,109.3
76.3
114.4
114.0
16.7
552.1
10.6
225.2
401.8
1,053.5
1,087.9
68.1
109.2
102.9
16.4
547.2
10.9
233.2
All sectors
54 Total credit market debt
9,414.4
10,425.3
11,434.3
12,389.1
12,126.6
12,389.1
12,695.9
12,914.1
13,126.1
13,381.5
13,473.7
55
56
57
58
59
60
61
62
2,620.0
679.1
1,031.7
2,617.0
659.8
729.0
384.9
693.1
2,933.9
728.4
1,197.4
2,953.8
693.2
729.5
437.9
751.1
3,211.1
790.8
1,358.9
3,247.2
743.5
768.9
513.4
800.5
3,513.7
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.4
3,404.7
816.4
1,470.5
3,473.6
771.0
807.4
569.6
813.5
3,513.7
821.2
1,502.6
3,540.1
790.6
820.3
579.2
821.4
3,644.1
822.2
1,532.1
3,696.9
782.3
802.0
594.5
821.9
3,726.9
827.2
1,575.9
3,760.5
789.4
809.8
596.3
828.2
3,833.1
837.4
1,593.2
3,815.2
798.7
808.4
612.9
827.2
3,982.3
839.7
1,640.0
3,856.2
808.9
815.1
609.9
829.3
4,075.0
839.6
1,673.1
3,883.7
782.3
803.3
606.1
810.6
U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans
A44
DomesticNonfinancialStatistics • August 1991
1.60 SUMMARY OF CREDIT MARKET CLAIMS, BY HOLDER
Billions of dollars, e x c e p t as n o t e d ; period-end levels.
199V
1989
Transaction category, or sector
1986
1987
1988
Q3
1 Total funds advanced in credit markets to domestic
nonfinancial sectors
1991
1989
Q4
Qi
Q2
Q3
Q4
Ql
10,075.7 10,234.4 10,393.9 10,560.2 10,634.2
7,646.3
8,343.9
9,096.0
9,805.2
9,605.1
9,805.2
1,779.4
509.8
678.5
108.6
482.4
2,006.6
570.9
814.1
133.1
488.6
2,199.7
651.5
900.4
152.8
495.1
2,379.3
682.1
1,038.4
141.8
517.0
2,317.4
668.6
991.1
151.1
506.6
2,379.3
682.1
1,038.4
141.8
517.0
2,416.0
679.0
1,077.7
132.9
526.5
2,495.6
707.3
1,126.5
126.3
535.4
2,576.8
738.9
1,171.8
117.9
548.2
2,638.8
756.5
1,221.0
117.1
544.1
2,698.6
781.1
1,262.4
107.0
548.1
7 Total held, by type of lender
8 U.S. government
9 Sponsored credit agencies and mortgage pools . . .
10 Monetary authority
11 Foreign
1,779.4
255.3
835.9
205.5
482.8
2,006.6
240.0
1,001.0
230.1
535.5
2,199.7
217.6
1,113.0
240.6
628.5
2,379.3
207.1
1,238.2
233.3
700.6
2,317.4
207.8
1,193.5
227.6
688.5
2,379.3
207.1
1,238.2
233.3
700.6
2,416.0
217.3
1,274.0
224.4
700.2
2,495.6
227.0
1,315.0
237.8
715.8
2,576.8
242.1
1,360.5
240.8
733.5
2,638.8
240.0
1,403.4
241.4
753.9
2,698.6
248.6
1,438.2
247.3
764.4
Agency and foreign debt not in line 1
Sponsored credit agencies and mortgage pools . . .
Foreign
810.3
238.3
978.6
244.6
1,098.4
253.9
1,249.3
261.5
1,203.6
257.7
1,249.3
261.5
1,288.2
261.8
1,330.1
273.1
1,367.9
283.4
1,418.4
293.7
1,455.3
296.3
Private domestic holdings
14 Total private holdings
15 U.S. government securities
16 State and local obligations
17 Corporate and foreign bonds
18 Residential mortgages
19 Other mortgages and loans
20 LESS: Federal Home Loan Bank advances
6,915.6
2,110.1
679.1
606.6
1,288.5
2,339.8
108.6
7,560.4
2,363.0
728.4
674.3
1,399.0
2,528.7
133.1
8,248.5
2,559.7
790.8
765.6
1,560.2
2,724.9
152.8
8,936.8
2,831.6
821.2
831.6
1,670.4
2,923.8
141.8
8,749.0
2,736.1
816.4
814.5
1,657.7
2,875.3
151.1
8,936.8
2,831.6
821.2
831.6
1,670.4
2,923.8
141.8
9,209.8
2,965.1
822.2
850.9
1,781.6
2,922.8
132.9
9,342.0
3,019.5
827.2
873.4
1,793.7
2,954.5
126.3
9,468.5
3,094.2
837.4
885.6
1,799.5
2,969.7
117.9
9,633.5
3,225.8
839.7
912.3
1,790.5
2,982.3
117.1
9,687.2
3,293.9
839.6
931.7
1,779.8
2,949.2
107.0
Private financial intermediation
21 Credit market claims held by private financial
institutions
??
Commercial banking
23
Savings institutions
74
Insurance and pension funds
25 Other finance
6,018.0
2,187.6
1,297.9
1,525.4
1,007.1
6,564.5
2,323.0
1,445.5
1,705.1
1,091.0
7,128.6
2,479.3
1,567.7
1,903.8
1,177.9
7,662.7
2,656.6
1,480.7
2,081.6
1,443.8
7,507.8
2,599.6
1,530.3
2,031.6
1,346.2
7,662.7
2,656.6
1,480.7
2,081.6
1,443.8
7,853.1
2,680.4
1,461.3
2,150.5
1,561.0
7,912.3
2,720.7
1,409.5
2,193.4
1,588.8
7,999.3
2,750.6
1,371.2
2,236.8
1,640.7
8,151.7
2,776.6
1,335.0
2,282.6
1,757.5
8,178.6
2,783.0
1,291.0
2,317.0
1,787.6
76 Sources of funds
27
Private domestic deposits and RPs
28 Credit market debt
6,018.0
3,199.0
719.5
6,564.5
3,354.2
858.2
7,128.6
3,599.1
986.1
7,662.7
3,824.3
1,073.0
7,507.8
3,742.5
1,060.2
7,662.7
3,824.3
1,073.0
7,853.1
3,849.6
1,070.2
7,912.3
3,836.4
1,076.5
7,999.3
3,848.2
1,080.9
8,151.7
3,882.5
1,109.3
8,178.6
3,935.0
1,087.9
7,9
2,099.5
18.6
27.5
1,398.5
655.0
2,352.1
62.3
21.6
1,527.8
740.3
2,543.5
71.5
29.0
1,692.5
750.5
2,765.5
61.6
25.6
1,826.0
852.3
2,705.1
55.0
30.3
1,785.7
834.0
2,765.5
61.6
25.6
1,826.0
852.3
2,933.4
63.4
16.7
1,859.8
993.5
2,999.4
66.4
32.1
1,904.2
996.8
3,070.2
94.0
36.6
1,920.5
1,019.1
3,159.9
97.3
30.9
1,960.4
1,071.2
3,155.6
95.6
26.3
1,997.5
1,036.2
Private domestic nonfinancial investors
34 Credit market claims
U.S. government securities
36 Tax-exempt obligations
37 Corporate and foreign bonds
38 Open market paper
39 Other
1,617.0
848.7
212.6
90.5
145.1
320.1
1,854.1
936.7
274.4
114.0
178.5
350.4
2,106.0
1,072.2
340.9
100.4
218.0
374.4
2,347.1
1,206.4
369.3
130.5
228.7
412.1
2,301.5
1,171.3
363.1
131.1
239.3
396.8
2,347.1
1,206.4
369.3
130.5
228.7
412.1
2,426.8
1,258.5
362.3
157.4
234.0
414.5
2,506.2
1,287.8
368.3
175.6
251.9
422.6
2,550.1
1,329.3
372.1
168.8
251.0
428.9
2,591.1
1,363.2
368.8
176.1
247.1
435.9
2,596.5
1,388.6
360.6
170.3
240.7
436.2
40 Deposits and currency
41 Currency
4?
Checkable deposits
43 Small time and savings accounts
44 Money market fund shares
45 Large time deposits
46 Security RPs
47 Deposits in foreign countries
3,410.1
186.3
516.6
1,948.3
268.9
336.7
128.5
24.8
3,583.9
205.4
515.4
2,017.1
297.8
373.9
150.1
24.3
3,832.3
220.1
527.2
2,156.2
318.0
414.7
182.9
13.1
4,073.6
231.8
528.7
2,256.7
403.3
437.8
197.9
17.6
3,979.0
224.4
486.1
2,224.4
391.0
440.0
200.9
12.1
4,073.6
231.8
528.7
2,256.7
403.3
437.8
197.9
17.6
4,095.9
234.4
504.5
2,286.3
436.7
433.7
188.3
11.9
4,096.6
242.7
510.1
2,286.5
426.3
421.0
192.5
17.5
4,112.2
247.2
500.2
2,295.7
454.5
411.3
186.6
16.8
4,161.5
254.4
529.9
2,306.3
465.0
398.0
183.4
24.6
4,209.3
261.9
511.8
2,336.6
513.3
401.4
172.0
12.3
48 Total of credit market instruments, deposits, and
currency
5,027.2
5,438.0
5,938.2
6,420.7
6,280.5
6,420.7
6,522.7
6,602.8
6,662.2
6,752.6
6,805.8
22.6
87.0
501.3
23.4
86.8
597.8
23.5
86.4
700.1
23.6
85.7
762.3
23.5
85.8
743.5
23.6
85.7
762.3
23.4
85.3
763.6
23.8
84.7
782.2
24.1
84.5
827.5
24.3
84.6
851.2
24.7
84.4
860.0
?
3
4
5
6
12
13
30
31
37
33
By public agencies and foreign
Total held
U.S. government securities
Residential mortgages
FHLB advances to thrifts
Other loans and securities
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
35
49
50
51
Public holdings as percent of total
Private financial intermediation (in percent)
Total foreign funds
MEMO: Corporate equities not included above
52 Total market value
53
54
55
56
3,360.6
3,325.0
3,619.8
4,378.9
4,395.4
4,378.9
4,170.4
4,336.9
3,770.7
3,987.7
4,550.2
Mutual fund shares
Other equities
413.5
2,947.1
460.1
2,864.9
478.3
3,141.6
555.1
3,823.8
543.9
3,851.5
555.1
3,823.8
550.3
3,620.1
587.9
3,749.0
547.3
3,223.4
579.9
3,407.9
643.0
3,907.2
Holdings by financial institutions
Other holdings
974.6
2,385.9
1,039.5
2,285.5
1,176.1
2,443.7
1,492.3
2,886.6
1,478.5
2,917.0
1,492.3
2,886.6
1,434.8
2,735.6
1,542.1
2,794.8
1,297.2
2,473.5
1,406.6
2,581.1
1,636.9
2,913.4
NOTES BY LINE NUMBER.
1. Line 1 of table 1.59.
2. Sum of lines 3-6 or 8-11.
6. Includes farm and commercial mortgages.
12. Credit market debt of federally sponsored agencies, and net issues of
federally related mortgage pool securities.
14. Line 1 less line 2 plus line 12 and 13. Also line 21 less line 28 plus line 34.
Also sum of lines 29 and 48 less lines 41 and 47.
19. Includes farm and commercial mortgages.
27. Line 40 less lines 41 and 47.
28. Excludes equity issues and investment company shares. Includes line 20.
30. Foreign deposits at commercial banks plus bank borrowings from foreign
affiliates, less claims on foreign affiliates and deposits by banking in foreign banks.
31. Demand deposits and note balances at commercial banks.
32. Excludes net investment of these reserves in corporate equities.
33. Mainly retained earnings and net miscellaneous liabilities.
34. Line 14 less line 21 plus line 28.
35-39. Lines 15-19 less amounts acquired by private finance plus amounts
borrowed by private finance. Line 39 includes mortgages.
41. Mainly an offset to line 10.
48. Lines 34 plus 40, or line 14 less line 29 plus 41 and 47.
49. Line 2/line 1 and 13.
50. Line 21/line 14.
51. Sum of lines 11 and 30.
52-54. Includes issues by financial institutions.
NOTE. Full statements for sectors and transaction types in flows and in amounts
outstanding may be obtained from Flow of Funds Section, Stop 95, Division of
Research and Statistics, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Selected Measures
2.10 NONFINANCIAL BUSINESS ACTIVITY
A45
Selected Measures
1977 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.
1990
1989
Measure
Sept.
Mar.'
107.3
108.6
108.8
105.5
102.6
104.9
112.5
101.5
106.3
112.0
102.4
103.6
105.9
106.2
106.8
103.9
102.6
108.9
107.5
107.0
106.1
105.2
105.7
Market groupings
2 Products, total (1987 = 100)
3
Final, total (1987 = 100)
4
Consumer goods (1987 = 100)
5
Equipment (1987 = 100)
6
Intermediate (1987 = 100)
7 Materials (1987 = 100)
105.3
105.6
104.0
107.6
104.4
105.6
108.6
111.4
111.0
109.3
112.6
108.7
117.8
107.4
109.4
112.3
108.6
117.0
107.0
108.3
110.2
107.4
110.1
110.9
107.3
115.5
107.7
107.8
Industry
groupings
8 Manufacturing (1987 = 100)
105.8
108.9
109.9
111.2
110.7
106.5
115.1
112.6
83.9
83.9
82.3
82.8
82.2
79.4
78.9
78.0
77.2
77.4
77.3
166.7
172.9
154.0''
146.0
147.0
146.0
130.0
132.0
133.0
128.0
145.0
138.0
128.0
131.5
104.0
98.7
93.8
142.9
272.7
258.9
203.1
270.1
241.7
133.8
102.7
96.8
91.5
146.8
289.0
272.2
205.0
251.0 r
133.5'
102.(K
96.7'
91.4'
146.7'
292.2
276.4
207.0
288.7
254.0
133.4'
101.5'
96.4'
91.0'
146.7'
292.1
274.8
206.0
288.7
253.5
133.1'
100.6'
95.5'
89.9'
146.7'
293.4
274.8
202.9
290.1
254.3
132.9'
100.1'
95.2'
89.6'
146.7'
295.1
277.1
205.4
291.6
249.4
132.7'
99.3'
94.8'
89.1'
146.6'
293.9'
275.7
202.6
290.4'
246.2
132.4
98.7
94.1
88.3
146.4
294.5
275.7
200.9
291.2
251.6
132.1
98.1
93.7
87.9
146.3
295.6
276.0
200.3
292.3
252.3
131.8
97.7
93.5
87.7
146.1
295.8
276.6
201.1
292.4
251.3
131.9
97.8
93.5
87.8
146.2
n.a.
n.a.
n.a.
n.a.
253.9
124.0
113.6
130.7
119.2
132.7
120.4
133.5
122.3
133.8
122.9
133.8
122.0
134.6
122.3'
134.8
121.2
135.0
120.6
135.2
120.9
135.6
121.7
Manufacturing
Nonagricultural employment, total 4
Goods-producing, total
Manufacturing, total
Manufacturing, production- worker . . .
Service-producing
Personal income, total
Wages and salary disbursements
Manufacturing
Disposable personal income
Retail sales®
103.4
98.3
93.5
138.3
253.2
244.6
196.5
252.2
228.2
21 ^ C o n s u m e r (1982-84 = 100)
22
Producer finished goods (1982 = 100) . . .
118.3
108.0
286.1
1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision" in the Federal Reserve Bulletin, vol. 76
(April 1990), pp. 187-204.
2. Ratios of indexes of production to indexes of capacity. Based on data from
Federal Reserve, McGraw-Hill Economics Department, Department of Commerce, and other sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential and heavy engineering, from McGraw-Hill Information Systems
Company, F. W. Dodge Division.
4. Based on data in Employment and Earnings (U.S. Department of Labor).
Series covers employees only, excluding personnel in the Armed Forces.
5. Based on data in Survey of Current Business (U.S. Department of Commerce).
106.9
108.2
101.5
103.0
109.9
11
12
13
14
15
16
17
18
19
20
106.6
106.9
108.3
104.7
112.9
110.6
10 Construction contracts (1982 = 100)3
105.8
107.8
109.1
105.6
113.6
103.8
104.8
109.2
9
105.3
108.4
109.2
105.7
113.6
106.0
105.3
108.1
Capacity utilization (percent) 2
105.0
106.6
105.4
106.8
May
107.2
1 Industrial production (1987 = 100)'
109.1
106.7
112.3
Apr/
Oct.
6. Based on Bureau of Census data published in Survey of Current Business.
7. Data without seasonal adjustment, as published in Monthly Labor Review.
Seasonally adjusted data for changes in the price indexes may be obtained from
the Bureau of Labor Statistics, U.S. Department of Labor.
NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5,and 6,
and indexes for series mentioned in notes 3 and 7 may also be found in the Survey
of Current Business.
Figures for industrial production for the latest month are preliminary and the
prior three months have been revised. See "Recent Developments in Industrial
Capacity and Utilization," Federal Reserve Bulletin, vol. 76 (June 1990), pp.
411-35.
A46
2.11
Domestic Nonfinancial Statistics • August 1991
LABOR FORCE, EMPLOYMENT, A N D U N E M P L O Y M E N T
Thousands of persons; monthly data are seasonally adjusted. Exceptions noted.
1991
1990
Category
1988
1989
1990
Oct/
Nov/
Dec/
Jan/
Feb/
Mar/
Apr/
May
HOUSEHOLD SURVEY DATA
1
Noninstitutional population 1
? Labor force (including Armed Forces) 1
3
Civilian labor force
6
7
8
Nonagricultural industries 2
Agriculture
Unemployment
Number
Rate (percent of civilian labor force)
Not in labor force
9
Nonagricultural payroll employment 3
4
5
186,837
188,601
190,216
190,717
190,854
190,999
191,116
191,248
191,384
191,525
191,664
123,893
121,669
126,077
123,869
126,954
124,787
127,067
124,875
126,880
124,723
127,307
125,174
126,777
124,638
127,209
125,076
127,467
125,326
127,817
125,672
127,374
125,232
111,800
3,169
114,142
3,199
114,728
3,186
114,558
3,175
114,201
3,185
114,321
3,253
113,759
3,163
113,696
3,222
113,656
3,098
114,243
3,156
113,319
3,272
6,701
5.5
62,944
6,528
5.3
62,524
6,874
5.5
63,262
7,142
5.7
63,650
7,337
5.9
63,974
7,600
6.1
63,692
7,715
6.2
64,339
8,158
6.5
64,039
8,572
6.8
63,917
8,274
6.6
63,708
8,640
6.9
64,290
105,536
108,413
110,330
109,982
109,761
109,621
109,418
109,160
108,902
108,722
108,781
19,350
713
5,110
5,527
25,132
6,649
25,669
17,386
19,426
700
5,200
5,648
25,851
6,724
27,096
17,769
19,064
735
5,205
5,838
26,151
6,833
28,209
18,295
18,973
710
5,022
5,855
25,853
6,746
28,479
18,344
18,807
712
4,962
5,852
25,808
6,740
28,525
18,355
18,749
715
4,911
5,867
25,745
6,733
28,548
18,353
18,671
713
4,797
5,866
25,680
6,736
28,590
18,365
18,532
715
4,792
5,834
25,583
6,732
28,583
18,389
18,443
714
4,720
5,824
25,483
6,735
28,576
18,407
18,399
711
4,683
5,815
25,407
6,718
28,569
18,420
18,411
705
4,696
5,822
25,391
6,714
28,612
18,430
ESTABLISHMENT SURVEY DATA
10
11
1?
N
14
Transportation and public utilities
IS
16
17
Government
1. Persons 16 years of age and over. Monthly figures, which are based on
sample data, relate to the calendar week that contains the 12th day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures. Based on data from Employment and Earnings (U.S. Department of Labor).
2. Includes self-employed, unpaid family, and domestic service workers.
3. Data include all full- and part-time employees who worked during, or
received pay for, the pay period that includes the 12th day of the month, and
exclude proprietors, self-employed persons, domestic servants, unpaid family
workers, and members of the Armed Forces. Data are adjusted to the March 1984
benchmark and only seasonally adjusted data are available at this time. Based on
data from Employment and Earnings (U.S. Department of Labor).
Selected Measures
A47
2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1991
1990
1990
1991
1990
1991
Series
Q2
Q3
Q4
Ql'
Q3
Q2
Q4
Ql'
Q2
Q4
Ql'
Utilization rate (percent)
Capacity (percent of 1987 output)
Output (1987 = 100)
Q3
1 Total industry
109.4
110.5
108.5
105.8
131.1
131.9
132.8
133.6
83.5
83.7
81.7
2 Manufacturing
110.2
111.1
109.0
106.1
133.0
134.0
135.0
136.0
82.8
82.9
80.8
78.0
3
4
Primary processing
Advanced processing
106.3
112.1
107.6
112.8
104.7
111.0
100.6
108.6
124.8
136.9
125.5
138.0
126.1
139.1
126.8
140.2
85.2
81.9
85.8
81.7
83.0
79.8
79.3
77.5
Durable
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation e q u i p m e n t . . .
112.4
102.3
107.4
107.5
107.1
126.7
112.2
102.6
113.6
101.5
112.2
114.3
109.2
128.5
112.4
103.7
110.0
95.7
107.3
110.0
103.4
126.4
109.9
89.4
106.1
92.2
97.9
96.3
100.1
124.4
108.1
80.8
137.1
123.5
127.4
132.2
120.6
153.1
138.7
132.4
138.0
124.0
127.7
132.5
120.9
154.7
140.0
132.7
139.0
124.6
127.9
132.7
121.1
156.3
141.4
132.9
139.9
125.0
128.2
133.0
121.3
157.9
142.7
133.4
82.0
82.8
84.2
81.3
88.8
82.8
80.9
77.5
82.3
81.8
87.9
86.3
90.3
83.1
80.3
78.2
79.1
76.8
83.9
82.9
85.3
80.8
77.8
67.2
75.8
73.8
76.4
72.4
82.5
78.7
75.8
60.5
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
79.2
113.6
70 Mining
71 Utilities
22 Electric
113.3
109.9
134.3
135.2
136.1
137.0
84.6
84.7
83.3
80.2
108.1
101.3
107.2
110.8
117.2
110.0
107.8
98.2
105.8
110.2
118.1
107.4
106.1
94.3
102.6
109.1
113.2
107.4
127.9
116.3
114.5
134.6
128.4
121.2
128.9
116.6
115.1
135.9
130.6
121.3
129.9
117.0
115.7
137.1
132.9
121.4
130.9
117.3
116.4
138.4
135.7
121.4
84.0
88.1
91.3
81.6
90.6
87.4
83.8
86.9
93.2
81.5
89.7
90.7
83.0
84.0
91.4
80.4
88.9
88.5
81.0
80.4
88.2
78.8
83.4
88.4
102.5
107.8
111.0
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
114.5
107.5
102.4
104.5
109.9
116.3
106.0
103.4
110.5
112.9
103.1
108.3
111.2
102.1
106.2
109.3
115.0
126.6
121.9
114.5
127.1
122.6
114.0
127.6
123.2
113.8
128.1
123.8
89.1
85.2
91.1
90.3
86.9
92.1
90.4
84.8
90.2
89.7
82.9
88.3
Previoi is cycle
High
Low
High
Low
1991
1990
Latest cycle
May
Oct.
Nov.
Dec.
Jan.
Feb.'
Mar.'
Apr'
May"
78.7
Capacity utilization rate (percent)
23 Total industry
89.2
72.6
87.3
71.8
83.4
83.0
81.6
80.6
80.0
79.1
78.4
78.5
24 Manufacturing
88.9
70.8
87.3
70.0
82.9
82.2
80.7
79.4
78.9
78.0
77.2
77.4
77.3
75
26
Primary processing
Advanced processing
92.2
87.5
68.9
72.0
89.7
86.3
66.8
71.4
85.0
82.1
84.3
81.3
83.2
79.6
81.5
78.5
80.6
78.2
79.5
77.4
77.9
76.8
78.1
77.1
78.3
76.9
77
78
79
30
31
37
33
34
35
Durable
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts —
Aerospace and miscellaneous
transportation equipment..
88.8
90.1
100.6
105.8
92.9
96.4
87.8
93.4
68.5
62.2
66.2
66.6
61.3
74.5
63.8
51.1
86.9
87.6
102.4
110.4
90.5
92.1
89.4
93.0
65.0
60.9
46.8
38.3
62.2
64.9
71.1
44.5
82.2
82.3
83.3
79.8
88.8
82.9
81.0
78.6
81.2
78.9
85.0
83.2
87.7
82.2
78.6
78.1
79.1
76.6
85.3
84.8
85.9
80.8
78.1
64.5
77.2
74.9
81.4
80.8
82.3
79.5
76.6
59.0
76.8
75.4
77.8
74.5
83.0
79.8
75.7
62.3
75.8
73.2
77.6
73.7
83.7
78.8
75.8
59.5
74.9
72.8
73.7
69.1
80.8
77.6
75.9
59.7
75.3
74.2
73.6
68.7
81.0
77.3
76.4
64.4
75.3
74.2
73.7
68.5
81.6
76.5
76.3
66.9
77.0
66.6
81.1
66.9
84.5
84.0
83.1
82.8
81.1
80.3
79.3
77.9
77.2
36
37
38
39
40
41
Nondurable
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
87.9
92.0
96.9
87.9
102.0
96.7
71.8
60.4
69.0
69.9
50.6
81.1
87.0
91.7
94.2
85.1
90.9
89.5
76.9
73.8
82.0
70.1
63.4
68.2
84.0
88.3
90.9
81.1
90.9
86.3
83.6
86.6
92.5
81.0
90.0
89.5
82.9
83.3
90.9
80.2
90.2
88.9
82.4
82.1
91.0
79.9
86.5
87.0
81.8
80.2
89.8
79.8
86.2
86.2
81.0
80.4
87.9
78.8
85.0
89.6
80.3
80.6
86.8
77.9
79.0
89.4
80.2
81.6
86.5
78.0
79.3
87.7
80.1
82.4
85.6
77.7
79.1
89.5
94.4
95.6
99.0
88.4
82.5
82.7
96.6
88.3
88.3
80.6
76.2
78.7
88.9
84.6
90.5
89.9
85.6
91.2
90.6
83.8
88.9
90.8
85.1
90.6
89.5
84.1
89.3
90.4
81.6
87.0
89.1
82.9
88.5
87.7
82.9
88.4
87.5
86.1
92.4
47
43 Utilities
44
Electric
1 These data also appear in the Board's G.17 (419) release. For address, see
inside front cover. For a detailed description of the series, see "Recent Developments in Industrial Capacity and Utilization," Federal Reserve Bulletin, vol. 76
(June 1990), pages 411-35.
2. Monthly high 1973; monthly low 1975.
3. Monthly highs 1978 through 1980; monthly lows 1982.
A48
Domestic Nonfinancial Statistics • August 1991
2.13 INDUSTRIAL PRODUCTION
Indexes and Gross Value1
Monthly data are seasonally adjusted
Groups
1987
proportion
1991
1990
1990
avg.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar/
Apr/
May p
Index (1987 = 100)
MAJOR MARKET
100.0
109.2
109.4
110.1
110.4
110.5
110.6
109.9
108.3
107.2
106.6
105.7
105.0
105.3
105.8
2 Products
3
Final products
4
Consumer goods
5
Durable consumer goods
6
Automotive products
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied g o o d s . . .
11
Other
12
Appliances, A/C, and TV
13
Carpeting and furniture
14
Miscellaneous home goods . . .
15
Nondurable consumer goods
16
Foods and tobacco
17
Clothing
18
Chemical products
19
Paper products
20
Energy
21
Fuels
22
Residential utilities
60.8
46.0
26.0
5.6
2.5
1.5
.9
.6
1.0
3.1
.8
.9
1.4
20.4
9.1
2.6
3.5
2.5
2.7
.7
2.0
110.1
110.9
107.3
106.2
102.3
97.4
92.2
106.1
109.6
109.4
102.0
104.9
116.4
107.6
105.9
95.7
113.3
119.7
105.9
102.9
107.0
110.5
111.2
107.4
109.3
107.0
105.6
96.8
120.4
108.9
111.1
103.6
107.6
117.5
106.9
105.2
96.4
113.0
118.6
104.1
98.2
106.3
110.9
111.7
107.8
112.1
112.2
112.9
103.8
128.3
111.2
112.0
107.5
107.8
117.2
106.6
104.4
95.7
112.8
118.3
105.3
102.6
106.3
110.9
111.7
107.5
108.3
106.7
104.8
98.0
116.1
109.5
109.5
100.2
106.0
116.9
107.3
105.1
95.6
112.4
120.3
106.7
104.6
107.5
110.9
111.9
107.8
107.4
104.6
101.5
97.2
108.8
109.3
109.6
101.9
104.9
116.8
107.9
105.7
94.6
114.3
119.3
109.0
106.0
110.0
111.4
112.6
108.7
110.4
111.8
113.0
111.5
115.4
110.0
109.3
101.0
106.0
116.1
108.2
105.3
95.3
115.1
121.9
108.0
105.6
108.9
111.0
112.3
108.6
106.9
107.1
107.5
104.6
112.2
106.4
106.8
94.6
103.8
115.5
109.1
106.7
94.2
115.9
123.4
108.8
104.0
110.6
109.3
110.2
106.5
99.4
93.5
84.2
80.7
90.2
107.3
104.1
90.8
99.2
114.6
108.5
107.8
91.7
113.5
122.8
106.4
101.1
108.4
108.4
109.2
105.7
96.0
86.7
74.6
77.2
70.2
104.8
103.4
89.9
100.9
112.5
108.4
107.5
92.1
113.5
122.7
106.6
98.1
109.7
107.8
109.1
105.6
97.6
90.6
79.6
83.2
73.6
107.1
103.2
92.8
100.3
110.8
107.8
106.3
90.6
114.7
122.1
106.5
99.8
109.0
106.9
108.3
104.7
95.2
88.1
74.7
78.6
68.1
108.3
100.7
94.5
92.0
109.8
107.3
105.9
90.8
114.8
121.0
105.2
103.4
105.9
106.6
108.2
104.9
95.9
88.9
76.7
76.3
77.4
107.3
101.4
96.2
93.8
109.2
107.3
105.7
90.2
114.2
122.2
106.0
104.3
106.6
106.9
108.6
105.5
99.1
94.6
85.0
78.3
96.3
108.9
102.8
97.3
96.5
109.8
107.2
105.7
90.2
114.5
121.9
105.3
100.6
107.0
107.3
108.8
106.3
100.8
96.9
89.2
81.9
101.6
108.3
103.9
99.2
97.6
110.5
107.8
105.9
90.2
114.1
122.0
109.5
103.3
111.8
23
24
25
26
27
28
29
30
31
32
33
Equipment, total
Business equipment
Information processing and related . .
Office and computing
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes
20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2
115.5
123.1
127.2
149.8
115.3
129.9
96.8
118.5
97.3
109.0
90.8
116.2
123.5
126.6
148.9
115.8
132.5
105.7
119.4
97.6
118.6
91.3
116.8
124.4
126.3
150.6
116.0
137.4
112.2
119.9
97.6
119.5
92.8
117.2
125.0
128.0
152.7
117.2
135.5
103.1
119.2
97.8
116.2
90.0
117.2
125.4
128.5
152.2
117.9
135.4
101.5
119.8
97.7
106.9
93.4
117.8
126.4
129.5
153.6
117.4
140.5
111.0
118.5
97.3
107.4
91.8
117.0
125.4
130.1
155.3
115.4
137.5
106.5
117.0
97.3
107.1
89.0
115.1
122.9
128.8
149.8
115.3
126.3
83.9
117.6
96.2
109.7
87.3
113.6
121.2
127.5
148.9
112.3
123.4
75.3
118.5
95.8
107.3
83.4
113.6
121.6
130.1
155.0
111.5
124.0
79.8
115.0
94.4
106.4
83.1
112.9
120.6
131.6
157.3
109.1
120.3
75.0
112.5
94.5
108.2
77.3
112.5
120.3
131.2
155.1
109.5
120.4
76.7
110.8
93.8
107.7
79.3
112.6
121.0
131.0
154.5
109.1
124.4
84.4
112.4
92.5
105.1
83.1
112.0
120.6
130.4
153.6
108.0
125.4
87.9
112.3
91.8
101.3
84.4
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.7
6.0
8.7
107.7
105.2
109.4
108.3
105.5
110.2
108.3
106.0
109.8
108.4
106.7
109.5
107.9
105.3
109.7
107.4
103.8
109.9
107.0
103.1
109.7
106.2
101.8
109.2
106.0
101.0
109.4
103.8
97.7
108.1
102.6
96.4
106.8
101.5
94.2
106.6
101.5
95.3
105.8
102.4
95.8
107.0
37 Materials, total
38
Durable goods materials
39
Durable consumer parts
40
Equipment parts
41
Other
42
Basic metal materials
43 Nondurable goods materials
44
Textile materials
45
Pulp and paper materials
46
Chemical materials
47
Other
48
Energy materials
49
Primary energy
50
Converted fuel materials
39.2
19.4
4.2
7.3
7.9
2.8
9.0
1.2
1.9
3.8
2.1
10.9
7.2
3.7
107.8
111.8
104.0
118.1
110.2
111.9
106.0
96.7
106.4
106.8
109.5
102.1
101.3
103.5
107.7
112.5
108.5
118.1
109.6
109.2
105.2
97.4
104.5
105.4
109.8
101.1
100.1
102.9
108.8
113.8
108.5
119.1
111.8
113.6
106.1
99.4
104.8
107.3
108.8
102.1
101.2
103.9
109.6
114.0
108.1
119.2
112.4
115.5
107.8
100.2
109.0
108.5
109.9
103.3
103.3
103.4
109.7
114.9
110.4
119.4
113.1
116.3
106.8
97.8
106.9
108.0
109.3
103.0
102.1
104.9
109.4
114.1
109.0
119.8
111.6
115.8
106.9
98.1
109.4
106.6
110.1
103.0
101.0
107.0
108.3
112.5
106.0
118.6
110.4
112.0
106.5
97.9
108.6
105.6
110.8
102.3
100.7
105.3
106.8
110.4
98.5
117.4
110.2
112.7
105.6
95.1
107.2
105.8
109.4
101.6
101.4
102.0
105.3
107.5
91.1
116.9
107.4
109.6
104.9
91.4
108.5
105.7
107.6
102.0
101.9
102.1
104.8
106.8
94.2
115.9
105.2
104.6
104.9
89.1
106.0
106.7
109.3
101.1
101.3
100.9
103.9
105.5
90.4
116.2
103.8
104.8
103.6
91.5
104.1
104.1
108.8
101.1
102.1
99.2
102.6
103.3
87.9
114.8
101.0
101.1
102.9
91.8
102.4
103.3
108.8
101.0
101.5
100.0
103.0
104.4
91.6
114.5
101.9
101.3
103.0
92.9
101.8
103.5
108.5
100.5
100.9
99.7
103.6
104.9
94.4
114.1
102.1
101.5
102.9
93.9
100.5
103.7
108.5
101.8
101.5
102.5
97.3
95.3
109.5
109.8
109.5
109.7
110.0
110.2
110.6
110.8
110.7
110.9
110.6
110.7
110.0
110.2
109.0
109.4
108.1
108.6
107.4
107.8
106.6
107.0
105.8
106.2
105.9
106.3
106.3
106.6
1 Total index
SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and p a r t s . . .
53 Total excluding office and computing
machines
54 Consumer goods excluding autos and
trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
computing equipment
58 Materials excluding energy
97.5
108.2
108.4
109.1
109.3
109.4
109.5
108.8
107.3
106.1
105.4
104.4
103.7
104.1
104.6
24.5
23.3
107.9
107.5
107.6
107.8
107.5
108.1
107.6
107.6
108.2
107.7
108.4
108.7
108.7
108.6
107.9
106.5
107.6
105.6
107.2
105.5
106.5
104.7
106.6
104.7
106.7
105.5
107.3
105.9
12.7
125.6
125.3
125.6
127.2
127.8
128.0
127.2
126.8
125.6
125.7
125.0
124.5
124.6
123.8
12.0
28.4
118.7
110.0
119.4
110.2
120.2
111.4
120.5
112.1
121.1
112.3
122.0
111.8
120.6
110.6
118.6
108.9
116.7
106.6
116.2
106.2
114.6
104.9
114.6
103.2
115.6
103.9
115.3
104.3
Selected Measures
A49
2.13—Continued
Groups
1987
proportion
SIC
code
1991
1990
1990
avg.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar/
Apr/
May p
Index (1987 = 100)
MAJOR INDUSTRY
100.0
23
24
25
26
27
28
29
30
31
32
33
109.4
110.1
110.4
110.5
110.6
109.9
108.3
107.2
106.6
105.7
105.0
105.3
105.8
111.1
108.0
112.5
111.2
106.9
113.2
110.7
106.2
112.8
108.9
104.9
110.8
107.5
102.9
109.5
107.0
102.0
109.3
106.1
100.8
108.5
105.2
99.0
108.0
105.7
99.4
108.6
105.9
99.8
108.7
84.4
26.7
57.7
109.9
106.3
111.6
110.3
106.1
112.4
110.8
107.0
112.6
111.1
107.9
112.5
Durable
24
Lumber and products . . .
25
Furniture and fixtures . . .
Clay, glass, and stone
32
products
33
Primary metals
331,2
Iron and steel
Raw steel
333-6,9
Nonferrous
Fabricated metal
products
Nonelectrical machinery.
Office and computing
357
machines
36
Electrical machinery
Transportation
equipment
Motor vehicles and
parts
Autos and light
trucks
Aerospace and miscellaneous transportation equipment.. 372-6,9
38
Instruments
Miscellaneous
manufacturers
47.3
2.0
1.4
111.6
101.6
105.9
112.6
101.7
108.0
113.4
102.0
108.7
113.4
103.6
108.0
113.5
100.5
106.7
113.8
100.3
106.9
112.5
98.2
104.4
109.9
95.5
102.3
107.5
93.5
102.0
107.2
94.2
99.0
106,1
91.5
94.9
105.0
91.0
95.3
105.9
92.9
98.5
106.1
92.9
99.2
2.5
3.3
1.9
.1
1.4
105.7
108.4
109.9
109.6
106.2
106.4
106.2
105.5
107.6
107.1
106.1
109.5
110.3
111.8
108.3
106.0
110.3
110.6
113.9
109.8
106.6
114.6
118.3
118.5
109.4
104.5
111.6
113.9
111.6
108.4
104.4
108.6
110.3
112.8
106.2
103.8
109.1
112.6
109.5
104.1
100.7
104.2
107.3
100.6
99.8
97.2
99.7
99.0
104.7
100.6
98.9
99.5
98.0
97.9
101.6
94.8
94.5
92.0
89.8
98.1
95.7
94.5
91.7
91.0
98.4
96.5
94.7
91.5
90.1
99.2
5.4
8.6
105.9
126.5
107.1
126.9
106.7
127.5
107.7
128.3
107.9
128.8
106.8
128.5
106.4
128.1
104.3
126.3
101.9
124.7
101.7
125.5
99.1
124.5
97.8
123.0
98.0
122.8
98.4
122.1
2.5
8.6
149.8
111.4
149.0
112.4
150.6
112.8
152.7
112.2
152.2
112.5
153.6
112.5
155.3
110.8
149.8
110.4
148.9
108.7
155.0
107.6
157.3
108.2
155.2
108.6
154.5
109.7
153.6
109.8
9.8
105.5
109.0
111.0
109.3
107.9
111.1
109.2
100.1
96.6
97.6
95.5
95.0
97.2
98.5
4.7
96.8
104.0
108.0
102.7
101.0
107.5
103.8
85.8
78.5
83.0
79.4
79.8
86.2
89.7
2.3
96.6
104.3
111.6
103.8
100.9
112.8
107.1
83.7
74.9
80.1
75.3
76.6
84.0
88.2
5.1
3.3
113.3
116.8
113.5
116.5
113.8
115.0
115.2
116.9
114.1
117.5
114.2
118.4
114.0
118.1
113.1
118.1
112.9
117.3
110.8
119.0
110.0
119.3
108.8
118.4
107.2
118.3
106.4
117.5
1.2
120.0
119.1
119.6
120.4
121.8
121.3
121.5
122.5
119.1
116.1
114.6
114.8
116.1
116.0
Nondurable
Foods
Tobacco products
Textile mill products
Apparel products
Paper and products
Printing and publishing ..
Chemicals and products .
Petroleum products
Rubber and plastic
products
Leather and products . . .
20
21
22
23
26
27
28
29
37.2
8.8
1.0
1.8
2.4
3.6
6.4
8.6
1.3
107.8
107.6
98.6
100.8
98.8
105.3
111.9
110.3
108.2
107.4
106.8
97.2
102.7
99.2
104.0
112.8
109.2
104.6
107.6
106.1
95.6
103.6
99.3
104.2
112.0
110.3
106.5
108.1
107.1
98.5
102.9
99.2
107.8
111.4
110.4
110.5
108.1
107.7
96.3
100.4
98.8
106.5
110.9
111.1
110.2
108.0
107.6
96.4
100.7
98.4
107.5
111.6
110.9
109.3
108.4
108.8
97.8
101.2
97.2
106.8
112.9
110.7
108.6
107.7
109.6
99.0
97.4
95.5
105.1
112.4
110.0
107.8
107.4
109.1
101.1
96.1
94.9
105.4
112.8
109.9
105.6
106.8
108.3
100.0
94.0
92.9
104.2
112.1
110.1
104.7
106.0
107.6
100.1
94.3
93.1
102.2
110.9
109.1
108.8
105.4
107.5
98.3
94.7
92.4
101.3
110.5
108.2
108.6
105.5
107.5
98.6
95.9
92.9
101.1
110.1
108.6
106.5
105.7
107.8
97.9
96.9
93.7
100.2
110.0
108.6
108.6
30
31
3.0
.3
110.2
100.0
110.9
103.5
112.8
102.0
110.9
102.5
112.0
99.6
110.3
100.3
110.6
95.3
109.6
89.9
106.9
92.6
108.8
89.6
106.1
90.8
104.6
91.8
105.4
90.0
106.2
89.0
13
14
7.9
.3
1.2
5.7
.7
102.6
153.1
113.2
95.5
119.5
102.2
148.7
110.0
96.0
119.9
102.2
156.7
113.5
94.6
121.1
104.0
164.8
118.5
95.5
121.8
102.4
155.7
110.2
95.8
120.1
103.9
163.6
116.8
95.8
121.7
102.6
146.8
114.7
95.8
118.0
103.3
153.4
112.9
97.3
113.5
103.4
162.0
110.6
96.7
118.9
101.7
143.1
108.4
96.0
119.2
102.9
148.0
112.8
97.2
112.0
101.6
147.6
109.9
96.4
108.8
100.1
145.4
105.9
95.6
106.3
100.0
145.0
105.5
95.6
106.6
491,3PT
492,3PT
7.6
6.0
1.6
108.0
110.8
97.3
107.1
110.3
95.2
109.7
113.1
97.4
109.7
112.1
100.7
111.4
113.6
103.3
110.3
112.9
100.9
109.2
112.1
98.1
106.9
109.6
97.0
108.8
111.8
97.6
107.6
110.4
97.5
104.6
107.8
92.8
106.3
109.6
94.1
106.4
109.7
94.4
110.6
114.8
94.8
79.8
110.7
110.7
111.0
111.6
111.7
111.4
111.1
110.3
109.1
108.4
107.6
106.7
106.8
106.8
82.0
108.7
109.2
109.6
109.8
109.9
110.0
109.4
107.7
106.2
105.6
104.5
103.7
104.2
104.5
2 Manufacturing....
3 Primary processing ..
4
Advanced processing
20
109.2
34 Mining
35 Metal
36 Coal
37 Oil and gas extraction...
38 Stone and earth minerals
39 Utilities...
40 Electric.
41 Gas . . . .
10
11,12
SPECIAL AGGREGATES
42 Manufacturing excluding
motor vehicles and
parts
43 Manufacturing excluding
office and computing
machines
3ross va !ue (billions of 15 82 dollars, annual rates)
MAJOR MARKET
44 Products, total
1734.8 1,911.4 1,922.2 1,937.0 1,923.5 1,929.5 1,941.6 1,939.6 1,882.8 1,859.4 1,860.4 1,848.4 1,845.8 1,855.0 1,869.9
45 Final
46 Consumer goods
47 Equipment
48 Intermediate
1350.9 1,497.7 1,506.0 1,523.4 1,508.7 1,516.3 1,529.1 1,523.7 1,470.8 1,450.8 1,459.6 1,452.8 1,455.3 1,463.9 1,472.2
857.0 863.9 873.3
857.6 857.9 852.7
882.9 885.9 893.8 886.0 885.9 895.2 892.7 865.2
833.4
599.9 598.9
600.1
598.2
614.8 620.1 629.6 622.7 630.4 633.9 631.0 605.6 593.2 601.7
517.5
395.6 390.5 391.1 397.7
413.7 416.2 413.6 414.9 413.1 412.5 415.9 412.0 408.7 400.8
384.0
1. These data also appear in the Board's G.17 (419) release. For requests see
address inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
A50
Domestic Nonfinancial Statistics • August 1991
2.14 HOUSING AND CONSTRUCTION
M o n t h l y f i g u r e s a r e at s e a s o n a l l y a d j u s t e d a n n u a l r a t e s e x c e p t as n o t e d .
1990
1991
item
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar/
Apr.
Private residential real estate activity (thousands of units)
N E W UNITS
1
2
3
Permits authorized
1-family
2-or-more-family
1,456
994
462
1,339
932
407
1,111
794
317
1,086
781
305
1,055
756
299
989
730
259
925
703
222
916
668
248
854
645
209
802
611
191
876
695
181
892
689
203
913
742
171
4
5
6
Started
1-family
2-or-more-family
1,488
1,081
407
1,376
1,003
373
1,193
895
298
1,155
876
279
1,131
835
2%
1,106
858
248
1,026
839
187
1,130
769
361
971
751
220
847
648
199
992
788
204
907
742
165
981
807
174
7
8
9
Under construction, end of period 1 .
1-family
2-or-more-family
919
570
350
850
535
315
711
449
262
831
528
303
815
517
298
790
503
287
766
497
269
756
486
270
744
478
266
717
461
256
709
457
252
683
442
241
676
444
232
1,530
1,085
445
1,423
1,026
396
1,308
966
342
1,312
988
324
1,307
950
357
1,314
963
351
1,275
930
345
1,246
922
324
1,155
878
277
1,125
841
284
1,096
838
258
1,192
882
310
1,083
814
269
218
198
188
187
193
184
186
181
167
168
157
157
175
675
368
650
363
535
318
541
350
525
345
504
338
465
334
480
327
464
318
414'
315"
489
312
494
307
500
302
113.3
120.4
122.3
118.7
118.4
113.0
120.0
118.9
127.0
117.9 R
120.0
123.3
122.0
139.0
148.3
149.0
149.8
144.7
142.1
153.0
143.3
153.4
148.6 R
148.9
157.7
155.4
3,594
3,439
3,316
3,320
3,410
3,160
3,070
3,150
3,130
2,900
3,160
3,220
3,310
89.2
112.5
92.9
118.0
95.2
98.1
97.2
94.4
92.9
92.0
94.0
98.2
100.3
121.1
120.7
116.8
115.9
115.6
91.7
114.1
95.6
118.3
123.0
119.7
125.2
128.9
10
11
12
Completed
1-family
2-or-more-family
13
Mobile homes shipped
Merchant builder activity in
1-family units
14 Number sold
1
15 Number for sale, end of period
Price (thousands of dollars)2
Median
16
Units sold
Average
17
Units sold
EXISTING UNITS ( 1 - f a m i l y )
18
Number sold
Price of units sold
(thousands of dollars)2
19 Median
2 0 Average
Value of new construction 3 (millions of dollars)
CONSTRUCTION
21 Total put in place
422,076
432,068
433,999
437,010
436,338
423,941
420,186
415,737
406,639
396,007
397,518
389,287
392,641
22 Private
Residential
23
24
Nonresidential, total
Buildings
25
Industrial
Commercial
26
27
Other
28
Public utilities and other
327,102
198,101
129,001
333,514
196,551
136,963
324,435
186,852
137,583
331,269
187,083
144,186
323,518
184,409
139,109
317,516
179,713
137,803
309,354
174,573
134,781
301,861
169,292
132,569
295,482
164,751
130,731
292,403
161,730
130,673
287,387
154,704
132,683
281,144
154,145
126,999
284,708
153,436
131,272
14,931
58,104
17,278
38,688
18,506
59,389
17,848
41,220
20,563
54,630
18,824
43,566
23,609
56,951
19,792
43,834
20,239
55,347
19,801
43,722
19,862
53,648
20,267
44,026
19,598
51,880
19,606
43,697
19,530
49,806
19,377
43,856
20,748
49,534
18,428
42,021
20,854
48,623
18,503
42,693
21,150
48,281
18,789
44,463
20,214
45,641
18,392
42,752
21,328
47,642
19,462
42,840
94,971
3,579
30,140
4,726
56,526
98,551
3,520
29,502
4,969
60,560
109,564
3,735
31,987
4,735
69,107
105,741
3,308
28,775
4,460
69,198
112,820
2,888
31,865
4,776
73,291
106,425
2,543
31,322
3,482
69,078
110,833
1,981
33,231
4,939
70,682
113,877
2,982
35,289
5,068
70,538
111,157
1,890
34,562
5,486
69,219
103,604
2,164
27,310
5,608
68,522
110,131
1,960
32,736
5,415
70,020
108,144
1,992
31,493
4,455
70,204
107,933
1,981
29,327
5,741
70,884
29 Public
30
Military
Highway
31
32
Conservation and development...
33
Other
1. Not at annual rates.
2. Not seasonally adjusted.
3. Value of new construction data in recent periods may not be strictly
comparable with data in previous periods because of changes by the Bureau of the
Census in its estimating techniques. For a description of these changes see
Construction Reports (C-30-76-5), issued by the Bureau in July 1976.
NOTE. Census Bureau estimates for all series except (1) mobile homes, which
are private, domestic shipments as reported by the Manufactured Housing
Institute and seasonally adjusted by the Census Bureau, and (2) sales and prices
of existing units, which are published by the National Association of Realtors. All
back and current figures are available from the originating agency. Permit
authorizations are those reported to the Census Bureau from 16,000 jurisdictions
beginning with 1978.
Selected Measures
2.15
A51
C O N S U M E R A N D P R O D U C E R PRICES
Percentage changes based on seasonally adjusted data, except as noted
Change from 12
months earlier
Change from 3 months earlier
(at annual rate)
1990
1990
May
Change from 1 month earlier
Index
level
May
1991
1991
1991
May
June
Sept.
Dec
Mar.
Jan/
Feb/
Mar.
Apr.
May
CONSUMER PRICES 2
(1982-84=100)
1 AU items
4.4
5.0
8.2
4.9
5.1
-.7
4.8
3.3
5.5
4.2
5.6
5.1
4.1
5.5
2.5
1.2
4.6
2.0
5.5
4.6
44.2
6.0
3.3
7.2
3.9
18.0
3.8
2.3
4.8
2.4
-30.7
6.8
7.9
6.4
3.1
4.5
-4.6
3.9
3.3
3.4
1.4
13.9
3.7
3.3
1.0
-1.6
-4.6
3.8
2.7
11.3
2.3
118.7
3.5
3.6
5.1
1.3
21.1
3.4
3.3
-37.2
5.3
3.2
.3
1.2
13.4
4.0
4.2
2.3
-7.3
-18.8
-18.1
-53.5
-3.0
-.1
-.2
-4.0
.7
.2
-2.6
.1
1.0
1.0
.6
-.1
.3
.7
-.7
.2
.2
.1
-.9
-.3
.2
-3.2
.2
.2
.4
-.3
.4
-9.5
-1.9
-7.8
305.8
5.9
.2
.6
-2.4
2.4
2 Food
3 Energy items
4 All items less food and energy.
5
Commodities
6
Services
.7
PRODUCER PRICES
(1982=100)
7 Finished goods
8
Consumer foods
9
Consumer energy
10 Other consumer goods
11 Capital equipment
12 Intermediate materials
13
Excluding energy
14
15
16
3
Crude materials
Foods
Energy
Other
-.1
.7
.4
.7
1.8
-4.9
-1.1
-7.0
6.7
-5.6
-3.8
-39.2
13.5
1. Not seasonally adjusted.
2. Figures for consumer prices are those for all urban consumers and reflect a
rental equivalence measure of homeownership after 1982.
-4.5
.6
1.1
.1
-.2
-2.2
.1
-6.0
.4
-.2
-1.1
-.1
-1.1
4.4
.3
.2
-.9
-.4
-.2
.2
-14.7
1.2
-1.0
-7.3
.1
-1.1
-.2
-.4
.0
-.5
3. Excludes intermediate materials for food manufacturing and manufactured
animal feeds.
SOURCE. Bureau of Labor Statistics.
A52
Domestic Nonfinancial Statistics • August 1991
2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.
1989
Account
1988
1989
1990
1990
Q4
Ql
Q2
Q3
Q4
GROSS NATIONAL PRODUCT
4,873.7
5,200.8
5,465.1
5,289.3
5,375.4
5,443.3
5,514.6
5,527.3
3,238.2
457.5
1,060.0
1,720.7
3,450.1
474.6
1,130.0
1,845.5
3,657.3
480.3
1,193.7
1,983.3
3,518.5
471.2
1,148.8
1,898.5
3,588.1
492.1
1,174.7
1,921.3
3,622.7
478.4
1,179.0
1,965.3
3,693.4
482.3
1,205.0
2,006.2
3,724.9
468.5
1,216.0
2,040.4
747.1
720.8
488.4
139.9
348.4
232.5
771.2
742.9
511.9
146.2
365.7
231.0
741.0
746.1
524.1
147.0
377.1
222.0
762.7
737.7
511.8
147.1
364.7
225.9
747.2
758.9
523.1
148.8
374.3
235.9
759.0
745.6
516.5
147.2
369.3
229.1
759.7
750.7
532.8
149.8
383.0
217.9
698.3
729.2
524.0
142.1
381.9
205.2
26.2
29.8
28.3
23.3
-5.0
-7.4
25.0
24.1
-11.8
-17.0
13.4
13.0
9.0
6.8
-30.8
-32.4
14 Net exports of goods and services
15 Exports
16 Imports
-74.1
552.0
626.1
-46.1
626.2
672.3
-31.2
672.8
704.0
-35.3
642.8
678.1
-30.0
661.3
691.3
-24.9
659.7
684.6
-41.3
672.7
714.1
-28.8
697.4
726.2
17 Government purchases of goods and services
18 Federal
19 State and local
962.5
380.3
582.3
1,025.6
400.0
625.6
1,098.1
424.0
674.1
1,043.3
399.9
643.4
1,070.1
410.6
659.6
1,086.4
421.9
664.6
1,102.8
425.8
677.0
1,132.9
437.6
695.3
4,847.5
1,908.9
840.3
1,068.6
2,488.6
450.0
5,172.5
2,044.4
894.7
1,149.7
2,671.2
456.9
5,470.2
2,148.3
939.0
1,209.3
2,864.5
457.4
5,264.3
2,060.9
894.2
1,166.7
2,747.5
455.9
5,387.2
2,122.8
941.4
1,181.4
2,791.3
473.0
5,429.9
2,133.1
930.1
1,203.0
2,834.2
462.5
5,505.6
2,161.4
943.4
1,218.0
2,889.6
454.6
5,558.2
2,175.9
941.2
1,234.7
2,943.0
439.3
26.2
19.9
6.4
28.3
11.9
16.4
-5.0
-11.1
6.0
25.0
13.2
11.9
-11.8
-21.6
9.8
13.4
.0
13.4
9.0
9.8
-.8
-30.8
-32.5
1.7
4,016.9
4,117.7
4,157.3
4,133.2
4,150.6
4,155.1
4,170.0
4,153.4
30 Total
3,984.9
4,223.3
4,418.4
4,267.1
4,350.3
4,411.3
4,452.4
4,459.7
31 Compensation of employees
32 Wages and salaries
33
Government and government enterprises
34
Other
35 Supplement to wages and salaries
Employer contributions for social insurance
36
Other labor income
37
2,905.1
2,431.1
446.6
1,984.5
474.0
248.5
225.5
3,079.0
2,573.2
476.6
2,096.6
505.8
263.9
241.9
3,244.2
2,705.3
508.0
2,197.2
538.9
280.8
258.1
3,128.6
2,612.7
486.7
2,126.0
515.9
268.4
247.5
3,180.4
2,651.6
497.1
2,154.5
528.8
276.0
252.8
3,232.5
2,696.3
505.7
2,190.6
536.1
279.7
256.4
3,276.9
2,734.2
511.3
2,222.9
542.7
282.7
260.0
3,286.9
2,738.9
518.1
2,220.8
548.0
284.8
263.2
354.2
310.5
43.7
379.3
330.7
48.6
402.5
352.6
49.9
381.7
336.0
45.7
404.0
346.6
57.4
401.7
350.8
51.0
397.9
355.6
42.4
406.2
357.4
48.8
1 Total
2
3
4
5
By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services
6 Gross private domestic investment
7 Fixed investment
8
Nonresidential
9
Structures
Producers' durable equipment
10
Residential structures
11
12
13
Change in business inventories
Nonfarm
By major type of product
'20 Final sales, totaj
21 Goods
Durable
22
Nondurable
23
24 Services
25 Structures
26 Change in business inventories
27 Durable goods
28 Nondurable goods
MEMO
29 Total GNP in 1982 dollars
NATIONAL INCOME
38 Proprietors' income1
39 Business and professional1
40 Farm 1
41 Rental income of persons 2
16.3
8.2
6.9
4.1
5.5
4.3
8.4
9.3
42 Corporate profits1
43 Profits before tax 3
44 Inventory valuation adjustment
45 Capital consumption adjustment
337.6
316.7
-27.0
47.8
311.6
307.7
-21.7
25.5
298.3
304.7
-11.4
4.9
290.9
289.8
-14.5
15.6
296.8
296.9
-11.4
11.3
306.6
299.3
-.5
7.7
300.7
318.5
-19.8
2.0
288.9
304.1
-13.8
-1.4
46 Net interest
371.8
445.1
466.7
461.7
463.6
466.2
468.3
468.4
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. Survey of Current Business (Department of Commerce).
Summary Statistics
2.17
A53
PERSONAL INCOME A N D SAVING
Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.
1990
1989
Account
1988
1989
1990
Q4
QL
Q2
Q3
Q4
PERSONAL INCOME AND SAVING
1
4,070.8
Total personal income
? Wage and salary disbursements
Commodity-producing industries
Manufacturing
4
Distributive industries
6
Service industries
Government and government enterprises
7
Other labor income
Proprietors' income
Business and professional 1
Farm
Rental income of persons
Dividends
Personal interest income
IS Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
16
8
9
10
11
1?
N
14
17
LESS: Personal contributions for social insurance
18 EQUALS: P e r s o n a l i n c o m e
4,384.3
4,645.5
4,469.2
4,562.8
4,622.2
4,678.5
4,718.5
2,431.1
696.4
524.0
572.0
716.2
446.6
2,573.2
720.6
541.8
604.7
771.4
476.6
2,705.3
729.3
546.8
637.2
830.8
508.0
2,612.7
721.4
540.9
614.6
790.0
486.7
2,651.6
724.6
541.2
627.0
802.9
497.1
2,696.3
731.1
548.1
637.3
822.2
505.7
2,734.2
735.3
551.8
642.7
844.9
511.3
2,738.9
726.0
546.1
641.9
853.0
518.1
225.5
354.2
310.5
43.7
16.3
102.2
547.9
587.7
300.5
241.9
379.3
330.7
48.6
8.2
114.4
643.2
636.9
325.3
258.1
402.5
352.6
49.9
6.9
123.8
680.4
694.8
350.7
247.5
381.7
336.0
45.7
4.1
118.2
664.9
655.9
334.1
252.8
404.0
346.6
57.4
5.5
120.5
670.5
680.9
347.2
256.4
401.7
350.8
51.0
4.3
122.9
678.0
686.7
347.6
260.0
397.9
355.6
42.4
8.4
124.9
685.3
696.4
351.1
263.2
406.2
357.4
48.8
9.3
126.7
687.9
715.1
356.8
194.1
212.8
226.2
215.8
222.9
224.1
228.6
228.9
4,070.8
4,384.3
4,645.5
4,469.2
4,562.8
4,622.2
4,678.5
4,718.5
591.6
658.8
699.4
669.6
675.1
696.5
709.5
716.6
3,479.2
3,725.5
3,946.1
3,799.6
3,887.7
3,925.7
3,969.1
4,001.9
LESS: P e r s o n a l o u t l a y s
3,333.6
3,553.7
3,766.0
3,625.5
3,696.4
3,730.6
3,802.6
3,834.4
22 EQUALS: P e r s o n a l s a v i n g
145.6
171.8
180.1
174.1
191.3
195.1
166.5
167.5
16,562.9
10,711.5
11,511.0
4.2
16,449.4
10,588.7
11,376.0
4.2
19
LESS: Personal tax and nontax payments
2 0 EQUALS: D i s p o s a b l e p e r s o n a l i n c o m e
21
MEMO
Per capita (1982 dollars)
Gross national product
Personal consumption expenditures
Disposable personal income
25
Saving rate (percent)
26
73
74
16,302.4
10,578.3
11,368.0
4.2
16,549.6 R
10,678.0'
11,531.0
4.6
16,535.3'
10,665.8'
11,509.0
4.6
16,544.8'
10,687.4'
11,541.0
4.6
16,576.4'
10,692.4'
11,586.0
4.9
16,552.5'
10,671.4'
11,564.0
5.0
GROSS SAVING
656.1
27 Gross saving
691.5
657.3
674.8
664.8
679.3
665.9
619.2
779.3
171.8
53.0
-21.7
787.9
180.1
32.2
-11.4
786.4
174.1
39.8
-14.5
795.0
191.3
36.7
-11.4
806.7
195.1
40.5
-.5
772.2
166.5
26.5
-19.8
777.8
167.5
25.2
-13.8
78
79
10
31
Gross private saving
Personal saving
Undistributed corporate profits 1
Corporate inventory valuation adjustment
751.3
145.6
91.4
-27.0
3?
33
Capital consumption
Corporate
Noncorporate
322.1
192.2
346.4
208.0
363.0
212.6
356.5
216.0
356.7
210.3
359.7
211.4
365.5
213.8
370.3
214.8
-95.3
-141.7
46.5
-87.8
-134.3
46.4
-130.6
-166.0
35.4
-111.6
-150.1
38.5
-130.2
-168.3
38.1
-127.3
-166.0
38.6
-106.4
-145.7
39.3
-158.6
-184.3
25.7
627.8
674.4
655.6
671.8
665.6
676.1
661.0
619.6
747.1
-119.2
771.2
-96.8
741.0
-85.5
762.7
-90.9
747.2
-81.6
759.0
-82.9
759.7
-98.7
698.3
-78.7
-28.2
-17.0
-1.7
-3.0
.7
-3.2
-4.9
.4
34
allowances
Government surplus, or deficit ( - ) , national income and
product accounts
35
36
State and local
37
38
39
Gross private domestic
Net foreign
40
Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. Survey of Current Business (Department of Commerce).
A54
3.10
Domestic Nonfinancial Statistics • August 1991
U.S. INTERNATIONAL TRANSACTIONS
Summary
Millions of dollars; quarterly data are seasonally adjusted except as noted.1
1990'
Item credits or debits
1988
1989'
1991
1990'
Ql
1 Balance on current account
2
Not seasonally adjusted
Merchandise trade balance
Merchandise exports
Merchandise imports
Military transactions, net
Investment income, net
Other service transactions, net
Remittances, pensions, and other transfers
U.S. government grants
11 Change in U.S. government assets, other than official
reserve assets, net (increase, - )
-126,237'
-106,305
-92,123
-126,986
320,337
-447,323
-5,743'
5,353'
16,082'
-4,437'
-10,506'
-115,917
361,451
-477,368
-6,203
2,688
-108,115
389,550
-497,665
-7,219
11,945
33,595
-4,843
-17,486
2,966'
28,618
-4,420
-11,071
Q2
Q3
Q4
-22,667
-17,223
-27,537
95,244
-122,781
-1,736
3,002
7,636
-1,218
-2,813
-22,178
-20,653
-24,090
97,088
-121,178
-1,558
7
8,156
-1,123
-3,570
-23,881
-29,112
-28,760
96,638
-125,398
-1,683
2,802
8,086
-1,302
-3,024
-23,402
-25,136
-27,728
100,580
-128,308
-2,243
6,133
9,716
QL'
-1,201
-8,079
10,215
15,394
-18,367
100,861
-119,228
-2,182
4,652
9,173
-1,295
18,234
1,320
2,976
-669
-800
4,759
1,581
12 Change in U.S. official reserve assets (increase, - ) .
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund.
16
Foreign currencies
-3,912
-25,293
-2,158
-3,177
371
1,739
-1,091
-353
127
1,025
-5,064
-535
471
-25,229
-192
731
-2,697
-247
234
-3,164
-216
493
94
363
8
1,368
-93
-4
-995
31
-341
-43
17 Change in U.S. private assets abroad (increase, - ) .
18
Bank-reported claims
19
Nonbank-reported claims
20
U.S. purchase of foreign securities, net
21
U.S. direct investments abroad, net
-85,111'
-56,322
-3,064'
-7,846
-58,524
5,333
-1,944
-28,476
-33,437
40,993
57,085
1,649
-8,756
-8,985
-33,033
-17,255
-1,760
-11,160
-2,858
-28,114
-9,984
676
-1,014
-17,792
-38,370
-24,513
-2,509
-7,546
-3,802
5,953
23,900
-YltfY
-104,637
-51,255
2,581
-22,575
-33,388
' -9,426
-8,521
22 Change in foreign official assets in United States (increase, +) . .
23
U.S. Treasury securities
24
Other U.S. government obligations
25
Other U.S. government liabilities
26
Other U.S. liabilities reported by U.S. banks 3
27
Other foreign official assets
39,657'
41,741
1,309
-568'
-319
-2,506
8,624
149
1,383
281
4,976
1,835
32,425
28,643
667
1,703
2,998
-1,586
-7,022
-5,786
-521
-292
-297
-126
5,805
2,461
346
1,141
2,131
-274
13,341
11,849
134
-248
1,871
-265
20,301
20,119
708
1,102
-707
-921
6,534
2,220
-29
987
2,590
766
28 Change in foreign private assets in United States (increase, + ) . .
29
U.S. bank-reported liabilities 3
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
32
Foreign purchases of other U.S. securities, net
33
Foreign direct investments in United States, net
181,877'
70,235
5,626'
20,239
26,353
59,424'
207,925
63,382
5,454
29,618
38,920
70,551
53,879
9,975
3,779
1,131
1,781
37,213
-26,059
-43,234
660
-1,151
1,397
16,269
25,452
8,980
699
4,287
2,140
9,346
35,754
26,968
4,260
24
-2,558
7,060
18,732
17,261
-1,840
-2,029
802
4,538
-8,458
-19,419
34 Allocation of SDRs
35 Discrepancy
36
Owing to seasonal adjustments
37
Statistical discrepancy in recorded data before seasonal
adjustment
0
0
-9,24(K
0
0
0
0
18,366
63,526
0
0
18,601
0
0
4,367
-9,240'
24,383
105
0
0
0
0
24,278
1,475
-6,473
19,072
2,007
0
3,910
5,026
2,025
0
-15,472
4,135
18,366
63,526
14,235
-3,912
-25,293
-2,158
-3,177
371
1,739
-1,091
-353
40,225
8,343
30,722
-6,730
4,664
13,589
19,199
5,547
-2,996
10,738
2,163
3,094
-19,607
MEMO
Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in United States (increase, +)
excluding line 25
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22
above)
38
39
1. Seasonal factors are not calculated for lines 6, 10, 12-16, 18-20, 22-34, and
38-40.
2. Data are on an international accounts (IA) basis. Differs from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise data and are included in line 6.
3. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
-1,699
1,109
4. Primarily associated with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business
(Department of Commerce).
Summary Statistics
A55
U.S. FOREIGN TRADE1
3.11
Millions of dollars; monthly data are seasonally adjusted.
1991r
1990
Item
1988
1989
1990
Oct.
1
Nov.
Dec.
Jan.
Feb.
Mar.
Apr/
EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments, f.a.s. value
322,426
363,812
393,592
34,631
33,586
33,570
34,144
33,599
34,031
35,559
2
GENERAL IMPORTS including
merchandise for immediate
consumption plus entries into
bonded warehouses
Customs value
440,952
473,211
495,311
44,527
43,123
39,895
41,520
39,103
38,100
40,338
3
Trade balance
Customs value
-118,526
-109,399
-101,718
-9,897
-9,536
-6,325
-7,376
-5,504
-4,070
-4,779
1. The Census basis data differ from merchandise trade data shown in table
3.10, U.S. International Transactions Summary, for reasons of coverage and
timing. On the export side, the largest adjustment is the exclusion of military sales
(which are combined with other military transactions and reported separately in
the "service account" in table 3.10, line 6). On the import side, additions are made
for gold, ship purchases, imports of electricity from Canada, and other transac-
tions; military payments are excluded and shown separately as indicated above.
As of Jan. 1, 1987 census data are released 45 days after the end of the month; the
previous month is revised to reflect late documents. Total exports and the trade
balance reflect adjustments for undocumented exports to Canada.
SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade"
(Department of Commerce, Bureau of the Census).
3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1991
1990
Type
1987
1988
1989
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May"
1 Total
45,798
47,802
74,609
83,041
83,316
85,006
82,797
78,297
78,297
78,263
2 Gold stock, including Exchange
Stabilization Fund 1
11,078
11,057
11,059
11,059
11,058
11,058
11,058
11,058
11,058
11,057
10,283
9,637
9,951
11,059
10,989
10,922
10,958
10,368
10,325
10,515
3
Special drawing rights 2,3
4
Reserve position in International
Monetary Fund 2
11,349
9,745
9,048
8,871
9,076
9,468
9,556
8,910
8,806
8,854
5
Foreign currencies 4
13,088
17,363
44,551
52,052
52,193
53,558
51,225
47,666
48,108
47,837
1. Gold held under earmark at Federal Reserve Banks for foreign and international accounts is not included in the gold stock of the United States; see table
3.13. Gold stock is valued at $42.22 per fine troy ounce.
2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based
on a weighted average of exchange rates for the currencies of member countries.
From July 1974 through December 1980, 16 currencies were used; from January
1981, 5 currencies have been used. The U.S. SDR holdings and reserve position
in the IMF also are valued on this basis beginning July 1974.
3. Includes allocations by the International Monetary Fund of SDRs as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 1,
1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093
million on Jan. 1, 1981; plus transactions in SDRs.
4. Valued at current market exchange rates.
3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1990
Assets
1987
1988
Nov.
1 Deposits
Assets held in custody
2 U.S. Treasury securities 2
3 Earmarked gold3
Dec.
Jan.
Feb.
Mar.
Apr.
May
p
244
347
589
264
369
271
329
228
292
196
195,126
13,919
232,547
13,636
224,911
13,456
272,399
13,389
278,499
13,387
286,722
13,377
286,471
13,382
272,505
13,374
271,779
13,363
279,695
13,358
1. Excludes deposits and U.S. Treasury securities held for international and
regional organizations.
2. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S.
Treasury securities payable in dollars and in foreign currencies at face value.
1991
1989
3. Earmarked gold and the gold stock are valued at $42.22 per fine troy ounce,
Earmarked gold is gold held for foreign and international accounts and is not
included in the gold stock of the United States.
A56
International Statistics • August 1991
3.14 FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data1
Millions of dollars, end of period
1990
Oct.
Nov.
1991
Dec.
Jan.
Feb.
Mar.
Apr.
All foreign countries
1 Total, all currencies
2 Claims on United States
3 Parent bank
4
Other banks in United States
5 Nonbanks
6 Claims on foreigners
7
Other branches of parent bank
8
Banks
9
Public borrowers
10 Nonbank foreigners
11 Other assets
518,618
505,595
545,366
552,542
558,626
556,925
563,997
560,968
546,491
537,891
138,034
105,845
16,416
15,773
342,520
122,155
108,859
21,832
89,674
169,111
129,856
14,918
24,337
299,728
107,179
96,932
17,163
78,454
198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
177,571
135,568
13,261
28,742
319,318
128,747
82,706
16,335
91,530
180,938
140,302
12,937
27,699
323,020
135,177
81,440
16,591
89,812
188,4%
148,837
13,296
26,363
312,449
135,003
72,602
17,555
87,289
183,991
141,498
14,541
27,952
321,247
132,157
81,219
18,260
89,611
188,174
145,%7
12,887
29,320
313,595
124,584
80,030
17,893
91,088
182,828r
142,683'
12,268
27,877
307,102
129,529
72,757
17,915
86,901
180,627
141,580
12,085
26,%2
300,456
121,961
72,549
17,825
88,121
38,064
36,756
45,956
55,653
54,668
55,980
58,759
59,199
56,561'
56,808
12 Total payable in U.S. dollars
350,107
357,573
382,498
362,537
371,753
379,479
380,116
380,180
381,848
371,999
13 Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20
Public borrowers
21
Nonbank foreigners
132,023
103,251
14,657
14,115
202,428
88,284
63,707
14,730
35,707
163,456
126,929
14,167
22,360
177,685
80,736
54,884
12,131
29,934
191,184
152,294
16,386
22,504
169,690
82,949
48,396
10,961
27,384
168,988
129,882
12,441
26,665
168,722
90,198
37,531
11,201
29,792
172,336
134,436
12,088
25,812
174,832
95,599
37,795
11,202
30,236
180,174
142,962
12,513
24,699
174,451
95,298
36,440
12,298
30,415
175,909
135,793
13,739
26,377
179,762
93,847
41,134
13,136
31,645
180,601
140,789
12,266
27,546
173,527
87,394
40,785
12,944
32,404
175,741'
137,738'
11,757
26,246
180,415
95,106
40,451
13,206
31,652
173,933
137,343
11,624
24,966
173,044
87,895
40,407
12,996
31,746
15,656
16,432
21,624
24,827
24,585
24,854
24,445
26,052
25,692r
25,022
22 Other assets
United Kingdom
23 Total, all currencies
158,695
156,835
161,947
184,660
188,182
184,818
184,817
180,211
175,025
168,917
24 Claims on United States
25
Parent bank
26
Other banks in United States
27
Nonbanks
28 Claims on foreigners
29 Other branches of parent bank
30
Banks
31
Public borrowers
32 Nonbank foreigners
32,518
27,350
1,259
3,909
115,700
39,903
36,735
4,752
34,310
40,089
34,243
1,123
4,723
106,388
35,625
36,765
4,019
29,979
39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
39,862
35,904
694
3,264
122,203
47,390
35,480
3,521
35,812
42,301
38,453
1,088
2,760
124,077
49,499
36,135
3,675
34,768
45,560
42,413
792
2,355
115,536
46,367
31,604
3,860
33,705
40,197
36,533
1,095
2,569
121,077
47,857
34,050
3,953
35,217
41,278
37,662
924
2,692
115,361
41,653
34,518
4,029
35,161
41,448'
38,291'
848
2,309
110,329
44,341
30,660
3,943
31,385
38,136
34,930
1,179
2,027
107,031
40,730
30,608
3,711
31,982
33 Other assets
34 Total payable in U.S. dollars
35 Claims on United States
36
Parent bank
37
Other banks in United States
38
Nonbanks
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
43
Nonbank foreigners
44 Other assets
10,477
10,358
15,078
22,595
21,804
23,722
23,543
23,572
100,574
103,503
103,208
109,950
115,182
116,762
114,413
113,673
114,347
108,600
30,439
26,304
1,044
3,091
64,560
28,635
19,188
3,313
13,424
38,012
33,252
964
3,796
60,472
28,474
18,494
2,840
10,664
36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
35,429
33,145
419
1,865
63,720
37,069
13,571
2,790
10,290
37,668
35,614
611
1,443
66,876
39,630
13,915
2,862
10,469
41,259
39,609
334
1,316
63,701
37,142
13,135
3,143
10,281
36,120
33,754
771
1,595
67,996
38,120
14,905
3,242
11,729
37,644
35,345
615
1,684
64,682
33,136
15,840
3,290
12,416
37,971'
36,068'
562
1,341
65,034
36,150
15,097
3,220
10,567
35,058
32,973
976
1,109
62,183
32,842
15,460
3,193
10,688
5,575
5,019
7,742
10,801
10,638
11,802
10,297
11,347
11,342'
11,359
23,248'
23,750
Bahamas and Caymans
45 Total, all currencies
46 Claims on United States
47
Parent bank
48
Other banks in United States
49
Nonbanks
50 Claims on foreigners
51
Other branches of parent bank
52
Banks
53
Public borrowers
54
Nonbank foreigners
55 Other assets
56 Total payable in U.S. dollars
160,321
170,639
176,006
153,529
153,850
162,316
167,306
168,209
163,315
164,565
85,318
60,048
14,277
10,993
70,162
21,277
33,751
7,428
7,706
105,320
73,409
13,145
18,766
58,393
17,954
28,268
5,830
6,341
124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
107,009
70,877
11,605
24,527
38,062
12,152
15,994
4,876
5,040
106,694
71,416
11,017
24,261
38,669
12,697
16,299
4,775
4,898
112,989
77,873
11,869
23,247
41,356
13,416
16,310
5,807
5,823
115,806
78,350
12,877
24,579
42,801
12,292
18,343
6,528
5,638
118,783
81,888
11,380
25,515
40,363
11,477
16,863
6,484
5,539
110,727
75,485
10,753
24,489
43,665
13,658
17,571
6,846
5,590
113,532
79,818
10,063
23,651
41,877
12,364
17,458
6,556
5,499
4,841
6,926
7,633
8,458
8,487
7,971
8,699
9,063
8,923
9,156
151,434
163,518
170,780
149,271
149,754
158,390
162,458
163,533
159,226
160,577
1. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
Summary Statistics
A57
3.14—Continued
1991
1990
1987
Liability account
1988
1989
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
All foreign countries
57 Total, all currencies
518,618
505,595
545,366
552,542
558,626
556,925
563,997
560,968
546,491
537,891
58 Negotiable CDs
59 To United States
60
Parent bank
61
Other banks in United States .
62
Nonbanks
30,929
161,390
87,606
20,355
53,429
28,511
185,577
114,720
14,737
56,120
23,500
197,239
138,412
11,704
47,123
22,089
167,575
113,098
7,984
46,493
21,521
171,592
115,519
9,140
46,933
18,060
189,412
138,748
7,463
43,201
19,106
186,279
134,118
9,341
42,820
18,595
187,562
132,227
10,580
44,755
19,920
185,178
128,009
10,961
46,208
19,484
180,131
123,866
9,944
46,321
63 To foreigners
64
Other branches of parent bank
65
Banks
Official institutions
66
67
Nonbank foreigners
68 Other liabilities
304,803
124,601
87,274
19,564
73,364
21,496
270,923
111,267
72,842
15,183
71,631
20,584
296,850
119,591
76,452
16,750
84,057
27,777
327,139
131,045
75,815
18,436
101,843
35,739
328,534
137,849
72,352
17,9%
100,337
36,979
311,668
139,113
58,986
14,791
98,778
37,785
319,854
132,214
70,222
17,343
100,075
38,758
316,605
124,437
73,856'
16,665r
101,647
38,206
305,804
128,916
63,304r
15,864'
97,720
35,589
300,772
122,542
64,283
18,398
95,549
37,504
69 Total payable in U.S. dollars
361,438
367,483
396,613
363,963
372,359
383,581
384,395
380,601
380,871
372,728
70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States .
74
Nonbanks
26,768
148,442
81,783
18,951
47,708
24,045
173,190
107,150
13,468
52,572
19,619
187,286
132,563
10,519
44,204
17,022
153,350
104,651
6,486
42,213
16,845
157,013
106,951
7,686
42,376
14,094
175,713
130,569
6,052
39,092
15,141
172,189
126,067
7,627
38,495
14,446
174,661
125,022
8,715
40,924
15,335
172,900
120,883
9,415
42,602
14,882
168,831
117,356
8,509
42,966
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
177,711
90,469
35,065
12,409
39,768
8,517
160,766
84,021
28,493
8,224
40,028
9,482
176,460
87,636
30,537
9,873
48,414
13,248
178,969
89,658
23,669
9,689
55,953
14,622
183,461
95,556
25,022
9,091
53,792
15,040
179,002
98,128
20,251
7,921
52,702
14,772
182,131
94,765
23,661
10,585
53,120
14,934
175,761
87,288
25,536'
10,021'
52,916
15,733
177,902
93,910
23,769'
9,205r
51,018
14,734
173,589
88,299
22,892
11,568
50,830
15,426
184,817
180,211
175,025
168,917
15,820
34,453
26,213
1,230
7,010
15,162
28,450
21,676
1,175
5,599
United Kingdom
158,695
81 Total, all currencies
156,835
161,947
184,660
188,182
184,818
82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States .
86
Nonbanks
26,988
23,470
13,223
1,536
8,711
24,528
36,784
27,849
2,037
6,898
20,056
36,036
29,726
1,256
5,054
17,557
32,143
22,013
1,430
8,700
17,144
36,500
26,165
1,671
8,664
14,256
39,928
31,806
1,505
6,617
14,872
34,389
25,548
1,861
6,980
14,363
34,070
25,670
1,401
6,999
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
98,689
33,078
34,290
11,015
20,306
9,548
86,026
26,812
30,609
7,873
20,732
9,497
92,307
27,397
29,780
8,551
26,579
13,548
114,959
32,357
33,870
10,788
37,944
20,001
113,958
34,406
32,844
9,534
37,174
20,580
108,531
36,709
25,126
8,361
38,335
22,103
113,754
34,547
31,765
10,368
37,074
21,802
110,454
30,978
32,784r
9,745'
36,947
21,324
105,090
33,084
26,609'
8,%9'
36,428
19,662
103,976
31,860
27,001
11,300
33,815
21,329
—
102,550
105,907
108,178
108,064
114,090
116,153
114,367
112,343
112,427
106,627
94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States .
98
Nonbanks
24,926
17,752
12,026
1,308
4,418
22,063
32,588
26,404
1,752
4,432
18,143
33,056
28,812
1,065
3,179
15,237
26,867
20,334
1,035
5,498
15,100
31,117
24,381
1,318
5,418
12,710
34,756
30,014
1,156
3,586
13,387
29,114
23,945
1,324
3,845
12,790
29,705
24,389
926
4,390
13,816
30,225
24,896
800
4,529
13,291
24,749
20,450
848
3,451
55,919
22,334
15,580
7,530
10,475
3,953
47,083
18,561
13,407
4,348
10,767
4,173
50,517
18,384
12,244
5,454
14,435
6,462
57,639
20,797
10,465
5,751
20,626
8,321
59,787
23,288
11,911
5,000
19,588
8,086
60,014
25,957
9,488
4,692
19,877
8,673
63,702
24,954
11,539
7,158
20,051
8,164
60,977
21,339
12,976'
6,587'
20,075
8,871
59,985
24,049
10,112'
6,188'
19,636
8,401
59,440
22,452
9,931
8,239
18,818
9,147
93 Total payable in U.S. dollars
99 To foreigners
100 Other branches of parent bank
101 Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities
Bahamas and Caymans
160,321
105 Total, all currencies
170,639
176,006
153,529
153,850
162,316
167,306
168,209
163,315
164,565
646
114,738
74,941
4,526
35,271
654
120,658
80,567
5,655
34,436
629
122,148
78,173
7,618
36,357
729
118,512
72,314
8,209
37,989
674
120,849
73,801
7,543
39,505
106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States .
110 Nonbanks
885
113,950
53,239
17,224
43,487
953
122,332
62,894
11,494
47,944
678
124,859
75,188
8,883
40,788
560
103,577
62,506
4,959
36,112
561
104,086
61,350
5,798
36,938
111 To foreigners
112 Other branches of parent bank
113 Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities
43,815
19,185
10,769
1,504
12,357
1,671
45,161
23,686
8,336
1,074
12,065
2,193
47,382
23,414
8,823
1,097
14,048
3,087
46,867
25,864
6,794
703
13,506
2,525
46,299
25,579
6,569
763
13,388
2,904
44,444
24,715
5,588
622
13,519
2,488
42,883
23,099
6,063
811
12,910
3,111
42,555
22,923
6,188
728
12,716
2,877
41,417
22,018
6,274
674
12,451
2,657
40,154
21,398
5,837
676
12,243
2,888
152,927
162,950
171,250
147,781
148,197
157,132
162,118
162,850
158,232
160,343
117 Total payable in U.S. dollars
—
A58
3.15
International Statistics • August 1991
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1990
Item
1988
1991
1989
Sept.
1 Total 1
2
3
4
5
6
7
8
9
10
11
12
Oct.
Nov.
Dec.
Jan.
Feb/
Mar.
304,132
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries 6
312,477
324,007
329,964
340,542
343,908
352,084
361,632
349,552
31,519
103,722
36,4%
76,985
40,202
72,472
44,681
72,457
43,170
80,220
39,494
78,493
41,450
82,520
43,144
82,611
42,153
82,484
152,429
523
15,939
179,269
568
19,159
189,159
3,717
18,457
190,534
3,741
18,551
195,305
3,765
18,082
203,185
4,491
18,245
205,726
4,521
17,867
213,043
4,550
18,284
201,353
4,580
18,982
123,752
9,513
10,030
151,887
1,403
7,548
By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates 3
U.S. Treasury bonds and notes
Marketable
Nonmarketable 4
U.S. securities other than U.S. Treasury securities 5
133,417
9,482
8,745
153,338
1,030
6,469
156,275
10,171
11,776
136,333
1,383
8,068
163,363
8,903
11,615
137,032
1,305
7,748
169,277
8,639
14,298
139,235
1,404
7,692
171,170
8,598
15,777
138,159
1,433
8,071
173,005
8,106
16,379
143,617
1,659
8,612
178,009
7,927
18,307
146,226
1,439
9,013
170,381
8,494
19,433
139,796
1,802
8,930
1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies; zero coupon bonds are included at
current value.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
NOTE. Based on data and on data reported to the Treasury Department by
banks (including Federal Reserve Banks) and securities dealers in the United
States and on the 1984 benchmark survey of foreign portfolio investment in the
United States.
3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies1
Millions of dollars, end of period
1991
1990
1987
Item
1988
1989
June
1 Banks' own liabilities
2 Banks' own claims
5 Claims of banks' domestic customers 2
55,438
51,271
18,861
32,410
551
1. Data on claims exclude foreign currencies held by U.S. monetary authorities.
74,980
68,983
25,100
43,884
364
67,835
65,127
20,491
44,636
3,507
Sept.
Dec.
Mar.
68,650
66,680
20,281
46,399
2,612
69,827
68,064
23,718
44,346
2,843
69,275
66,108
25,526
40,582
6,563
64,019
67,405
27,628
39,777
7,357
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.
Nonbank-Reported
3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Data
Reported by Banks in the United States1
Millions of dollars, end of period
1990
1989
Holder and type of liability
1990
Oct.
Nov.
Dec.
Feb.
Mar/
1 All foreigners
685,339
736,878
755,455
737,343
744,298
755,455
754,968
759,256'
748,964
2 Banks' own liabilities
3
Demand deposits
4
Time deposits
5
Other.
6
Own foreign offices 4
514,532
21,863
152,164
51,366
289,138
577,498
22,032
168,780
67,823
318,864
577,424
21,734
168,0%
67,560
320,034
564,094
158,674
75,398
309,810
561,298
19,680
162,289
72,280
307,049
577,424
21,734
168,0%
67,560
320,034
569,835
19,696
159,427
76,804
313,908
574,904'
20,129'
162,287
73,974'
318,514'
568,761
20,207
163,918
71,635
313,001
170,807
115,056
159,380
91,100
178,031
98,179
173,250
94,821
183,000
101,243
178,031
98,179
185,132
105,801
184,352
105,302'
180,203
103,472
16,426
39,325
19,526
48,754
17,408
62,444
17,680
60,748
18,294
63,464
17,408
62,444
17,886
61,445
18,181'
60,869
17,485
59,246
11 Nonmonetary international and regional
organizations
3,224
4,894
5,918
5,404
5,324
5,918
7,908
6,555
6,528
12 Banks' own liabilities
13
Demand deposits
14
Time deposits
15
Other
2,527
71
1,183
1,272
3,279
96
927
2,255
4,540
36
1,038
3,467
4,369
57
885
3,427
3,179
33
773
2,373
4,540
36
1,038
3,467
6,431
67
1,587
4,776
4,092
40
1,672
2,381
4,665
22
1,914
2,729
698
57
1,616
197
1,378
364
1,034
248
2,145
1,077
1,378
364
1,478
423
2,462
1,620
1,863
1,103
641
1,417
2
1,014
782
5
1,022
46
1,014
1,005
50
842
760
135,241
113,481
117,988
117,137
123,390
117,988
123,970
125,755'
124,638
27,109
1,917
9,767
15,425
31,108
2,1%
10,495
18,417
34,698
1,940
13,965
18,793
39,893
2,121
11,535
26,237
38,065
1,784
12,824
23,457
34,698
1,940
13,965
18,793
37,558
1,686
11,850
24,022
38,848'
1,577
13,397'
23,873
38,589
1,645
14,046
22,898
25 Banks' custody liabilities 5
26
U.S. Treasury bills and certificates
27
Other negotiable and readily transferable
instruments 7
28
Other
108,132
103,722
82,373
76,985
83,290
78,493
77,244
72,457
85,325
80,220
83,290
78,493
86,413
82,520
86,908
82,611
86,048
82,484
4,130
280
5,028
361
4,594
203
4,361
427
4,725
380
4,594
203
3,712
180
3,923
374
3,472
92
29 Banks 10
459,523
515,275
537,076
514,636
519,067
537,076
524,635
530,711'
522,902
30 Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other.
35
Own foreign offices 4
409,501
120,362
9,948
80,189
30,226
289,138
454,273
135,409
10,279
90,557
34,573
318,864
458,053
138,018
10,048
89,040
38,930
320,034
436,852
127,041
8,989
80,187
37,866
309,810
438,014
130,965
8,9%
83,620
38,349
307,049
458,053
138,018
10,048
89,040
38,930
320,034
446,155
132,247
8,992
81,613
41,641
313,908
451,053'
132,539'
9,508
82,443'
40,588'
318,514'
445,455
132,454
10,039
84,085
38,330
313,001
50,022
7,602
61,002
9,367
79,024
12,958
77,785
13,642
81,053
13,510
79,024
12,958
78,480
12,803
79,658
13,937
77,447
13,501
5,725
36,694
5,124
46,510
5,356
60,710
5,840
58,303
5,841
61,701
5,356
60,710
6,129
59,548
6,498
59,222
6,403
57,543
87,351
103,228
94,473
100,166
96,518
94,473
98,454
96,235'
94,896
75,396
9.928
61,025
4,443
88,839
9,460
82,980
9,045
66,067
7,868
82,040
8,868
65,072
12,577
80,134
9,710
64,054
6,370
8,100
80,134
9,710
64,054
6,370
79,692
8,951
64,377
6,365
80,911'
9,004'
64,775
7,132'
80,051
8,500
63,873
7,678
11,956
3,675
14,389
4,551
14,339
6,363
17,186
8,476
14,477
6,436
14,339
6,363
18,762
10,055
15,324
7,133
14,845
6,384
5.929
2,351
7,958
1,880
6,445
1,531
6,697
2,013
6,705
1,336
6,445
1,531
7,040
1,667
6,918'
1,272
6,850
1,611
6,425
7,203
7,022
6,199
6,466
7,022
6,963
6,718
7,157
7 Banks' custody liabilities 5
8
U.S. Treasury bills and certificates 6
9
Other negotiable and readily transferable
instruments'
10
Other
16 Banks' custody liabilities 5
17
U.S. Treasury bills and certificates
18
Other negotiable and readily transferable
instruments 7
19
Other
20 Official institutions 9
21 Banks' own liabilities
22
Demand deposits
23
Time deposits
24
Other
36 Banks' custody liabilities 5
37
U.S. Treasury bills and certificates
38
Other negotiable and readily transferable
instruments 7
39
0
0
20,212
0
0
0
Other
40 Other foreigners
41 Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other.
45 Banks' custody liabilities 5
46
U.S. Treasury bills and certificates
47
Other negotiable and readily transferable
instruments 7
48
Other
49 MEMO: Negotiable time certificates of deposit in
custody for foreigners
66,801
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. U.S. banks: includes amounts due to own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due to head office or parent foreign bank, and
foreign branches, agencies, or wholly owned subsidiaries of head office or parent
foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.
6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, and
the Inter-American and Asian Development Banks. Data exclude "holdings of
dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."
A59
A60
International Statistics • August 1991
3.17—Continued
1990
Area and country
1988
1989
1991
1990
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.'
Apr."
1 Total
685,339
736,878
755,455
737,343
744,298
755,455
754,968
759,256'
748,964
731,871
2 Foreign countries
682,115
731,984
749,537
731,940
738,974
749,537
747,059
752,701'
742,436
725,481
231,912
1,155
10,022
2,200
285
24,777
6,772
672
14,599
5,316
1,559
903
5,494
1,284
34,199
1,012
111,811
529
8,598
138
591
237,501
1,233
10,648
1,415
570
26,903
7,578
1,028
16,169
6,613
2,401
2,418
4,364
1,491
34,496
1,818
102,362
1,474
13,563
350
608
254,960
1,229
12,407
1,405
602
30,946
7,386
934
17,736
5,375
2,358
2,958
7,694
1,837
36,915
1,169
109,527
928
11,889
119
1,546
245,718
1,401
12,207
1,985
660
29,131
8,438
993
16,732
6,082
1,875
2,985
5,312
1,706
34,239
1,451
100,983
1,753
16,258
234
1,294
247,225
1,385
11,510
1,779
422
29,196
8,196
949
16,051
6,056
2,330
2,959
7,347
2,304
34,031
1,358
103,034
1,571
15,141
220
1,388
254,960
1,229
12,407
1,405
602
30,946
7,386
934
17,736
5,375
2,358
2,958
7,694
1,837
36,915
1,169
109,527
928
11,889
119
1,546
247,883
1,615
12,382
1,121
404
29,371
8,262
895
16,167
5,680
2,181
2,877
8,964
1,256
35,570
1,124
102,371
1,030
14,348
196
2,071
250,367'
1,522'
12,559
1,019
489
28,056'
9,604
797
17,515'
6,40c
2,078
2,684
8,224
710
37,209'
1,195
103,843'
959
12,800
88
2,614
250,112
1,494
12,238
989
662
28,211
8,988
747
17,367
6,204
2,121
2,778
9,934
1,159
38,546
1,480
102,973
848
10,545
106
2,722
240,938
1,129
12,405
951
724
26,765
8,461
808
14,857
6,939
1,114
2,628
10,145
731
36,701
1,500
101,345
1,034
9,810
138
2,755
3 Europe
4 Austria
5 Belgium-Luxembourg
6 Denmark
7 Finland
8 France
9 Germany
10 Greece
11 Italy
12 Netherlands
13 Norway
14 Portugal
15 Spain
16 Sweden
17 Switzerland
18 Turkey
19 United Kingdom
20 Yugoslavia
21 Other Western Europe
22
U.S.S.R
23 Other Eastern Europe
21,062
18,865
20,332
19,654
20,679
20,332
19,215
23,836
23,445
23,254
25 Latin America and Caribbean
26 Argentina
27 Bahamas
28 Bermuda
29 Brazil
30 British West Indies
31 Chile
32 Colombia
33 Cuba
34 Ecuador
35 Guatemala
36 Jamaica
37
Mexico
38 Netherlands Antilles
39 Panama
40 Peru
41
Uruguay
42 Venezuela
43 Other
271,146
7,804
86,863
2,621
5,314
113,840
2,936
4,374
10
1,379
1,195
269
15,185
6,420
4,353
1,671
1,898
9,147
5,868
311,028
7,304
99,341
2,884
6,351
138,309
3,212
4,653
10
1,391
1,312
209
15,423
6,310
4,362
1,984
2,284
9,482
6,206
326,995
7,366
107,311
2,809
5,853
140,569
3,145
4,492
11
1,379
1,541
257
16,769
7,381
4,575
1,295
2,520
12,945
6,779
319,932
7,722
98,330
2,482
5,915
144,374
3,170
4,285
49
1,314
1,485
219
16,680
7,101
4,617
1,360
2,512
11,365
6,951
318,387
7,664
97,689
2,518
6,470
141,385
3,422
4,251
9
1,310
1,478
228
16,501
7,350
4,644
1,327
2,446
13,001
6,693
326,995
7,366
107,311
2,809
5,853
140,569
3,145
4,492
11
1,379
1,541
257
16,769
7,381
4,575
1,295
2,520
12,945
6,779
332,977
7,659
105,055
3,101
5,945
148,066
3,188
4,467
18
1,359
1,564
224
17,053
7,100
4,336
1,347
2,595
12,846
7,053
336,609'
7,678
102,384'
3,035'
6,274'
154,125'
3,064
4,308
8
1,332
1,580
256
17,299'
6,941'
4,341'
1,323
2,641'
12,965'
7,055
326,719
7,872
96,435
2,838
6,431
150,319
2,995
3,786
7
1,319
1,617
268
17,558
6,600
4,506
1,364
2,509
13,168
7,127
325,991
7,708
96,284
2,765
5,804
150,447
3,122
4,348
8
1,260
1,571
233
17,654
6,897
4,294
1,428
2,463
12,735
6,969
44 Asia
China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
i
Middle-East oil-exporting countries
Other
147,838
156,201
138,060
137,241
143,684
138,060
136,920
132,393'
133,028
126,724
1,895
26,058
12,248
699
1,180
1,461
74,015
2,541
1,163
1,236
12,083
13,260
1,773
19,588
12,416
780
1,281
1,243
81,184
3,215
1,766
2,093
13,370
17,491
2,421
11,277
12,689
1,225
1,238
2,767
68,290
2,280
1,585
1,443
15,844
17,002
2,173
12,237
13,767
953
1,261
921
67,925
2,442
1,274
1,448
16,412
16,428
2,493
11,418
13,843
1,116
1,261
3,075
69,137
2,732
1,549
1,681
17,431
17,949
2,421
11,277
12,689
1,225
1,238
2,767
68,290
2,280
1,585
1,443
15,844
17,002
2,866
11,119
14,868
1,464
1,191
2,823
64,182
2,406
1,455
2,228
14,734
17,584
2,72C
11,123'
14.79C
1,628
1,719
2,509
61,092'
2,186'
1,655
2,148
13,693'
17,131
3,030
11,285
15,745
1,174
1,941
2,965
56,820
2,213
1,609
2,403
15,642
18,199
2,415
10,983
16,100
986
1,309
2,849
53,131
2,887
1,681
2,571
14,655
17,157
17 Africa
58 Egypt
59 Morocco
60
South Africa
61
Zaire
62 Oil-exporting countries
63 Other
3,991
911
68
437
85
1,017
1,474
3,824
686
78
206
86
1,121
1,648
4,630
1,425
104
228
53
1,110
1,710
4,225
1,099
87
235
45
1,050
1,708
4,390
996
90
283
55
1,288
1,678
4,630
1,425
104
228
53
1,110
1,710
5,177
1,476
107
212
55
1,508
1,819
5,157
1,416
90
317
50
1,528
1,755
4,908
1,449
91
312
52
1,369
1,635
4,495
927
89
220
50
1,434
1,776
64 Other countries
65 Australia
66 All other
6,165
5,293
872
4,564
3,867
697
4,560
3,807
753
5,169
4,371
797
4,610
3,804
807
4,560
3,807
753
4,888
3,882
1,007
4,339
3,433
906
4,225
3,131
1,094
4,078
3,118
961
67 Nonmonetary international and regional
organizations
68 International
69 Latin American regional
70 Other regional6
3,224
2,503
589
133
4,894
3,947
684
263
5,918
4,390
1,048
479
5,404
4,289
627
487
5,324
4,203
809
312
5,918
4,390
1,048
479
7,908
6,428
975
506
6,555
4,880
1,235
440
6,528
4,967
1,170
391
6,391
4,748
913
730
24 Canada
45
46
47
48
49
50
51
52
53
54
55
56
1. Includes the Bank for Internationa] Settlements and Eastern European
countries that are not listed in line 23.
2. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
5. Excludes "holdings of dollars" of the International Monetary Fund.
6. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."
Nonbank-Reported
Data
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
1991
1990
Area and country
1988
1989
1990
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.'
Apr."
1 Total
491,165
534,492
512,323
495,593
505,352
512,323
497,293
509,812'
496,022
503,541
2 Foreign countries
489,094
530,630
507,529
491,309
500,202
507,529
494,672
506,061'
493,105
501,698
116,928
483
8,515
483
1,065
13,243
2,329
433
7,936
2,541
455
261
1,823
1,977
3,895
1,233
65,706
1,390
1,152
1,255
754
119,025
415
6,478
582
1,027
16,146
2,865
788
6,662
1,904
609
376
1,930
1,773
6,141
1,071
65,527
1,329
1,302
1,179
921
113,737
362
5,458
497
1,047
14,531
3,449
729
6,066
1,736
777
304
2,758
2,073
4,473
1,405
65,312
1,142
587
530
499
103,631
247
5,147
489
814
13,750
3,242
729
5,070
1,711
732
444
2,373
2,577
3,475
1,371
58,267
1,226
667
825
474
107,189
268
6,441
842
861
13,386
3,634
720
5,171
1,849
661
368
2,584
2,251
3,995
1,346
59,919
1,160
619
653
459
113,737
362
5,458
497
1,047
14,531
3,449
729
6,066
1,736
777
304
2,758
2,073
4,473
1,405
65,312
1,142
587
530
499
108,431
248
6,169
567
1,083
15,202
3,562
653
6,141
1,938
701
345
2,864
2,145
2,082
1,377
60,548
1,084
705
505
512
107,661'
400
5,905
472
1,364'
14,384'
3,620
652'
5,707'
2,108'
670
292'
2,526
2,336'
2,444'
1,509
60,397'
980
851'
501
545
104,246
270
5,665
598
1,157
14,915
3,305
667
6,644
2,143
765
384
3,334
2,330
3,165
1,537
53,896
991
1,141
781
558
100,115
392
5,462
750
1,173
13,886
3,235
688
5,380
2,230
679
293
3,180
2,115
3,238
1,445
52,386
1,012
1,118
904
548
5
Belgium-Luxembourg
7
Finland
9
Germany
11
12
Italy
Netherlands
14
Portugal
17
18
19
20
21
22
23
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe 2
U.S.S.R
Other Eastern Europe 3
24 Canada
27
28
29
30
31
32
33
Bahamas
Bermuda
Brazil
British West Indies
Chile
Colombia
Cuba
38
Netherlands Antilles
40
Peru
43
Other Latin America and Caribbean
44 Asia
China
46
47
48
Taiwan
Hong Kong
India
50
Israel
52
Korea
55
56
Middle East oil-exporting countries 5
Other Asia
18,889
15,451
16,091
16,185
14,295
16,091
16,952
19,364
17,062
17,524
214,264
11,826
66,954
483
25,735
55,888
5,217
2,944
1
2,075
198
212
24,637
1,306
2,521
1,013
910
10,733
1,612
230,438
9,270
77,921
1,315
23,749
68,749
4,353
2,784
1
1,688
197
297
23,376
1,921
1,740
771
929
9,652
1,726
230,043
6,874
76,504
4,006
17,994
87,061
3,271
2,585
0
1,387
191
238
15,068
7,998
1,471
663
786
2,611
1,334
217,247
7,028
71,934
3,662
18,626
78,046
3,372
2,544
0
1,487
211
262
15,359
3,310
1,463
667
794
7,102
1,382
228,593
7,024
71,026
4,291
18,393
86,333
3,373
2,531
1
1,499
152
265
15,380
7,386
1,449
730
787
6,585
1,390
230,043
6,874
76,504
4,006
17,994
87,061
3,271
2,585
0
1,387
191
238
15,068
7,998
1,471
663
786
2,611
1,334
229,577
6,727
78,334
1,771
17,953
93,924
3,227
2,555
0
1,361
193
243
14,661
2,199
1,534
659
767
2,118
1,351
237,532'
6,601
81,148'
3,602'
17,943
97,544'
3,239
2,528
0
1,361
191
171
14,842'
1,604
1,502
694
626
2,254
1,683
232,957
6,535
73,338
3,823
18,328
100,812
3,173
2,441
0
1,325
199
224
15,077
1,278
1,500
700
588
2,168
1,448
237,677
6,427
76,315
4,645
16,079
103,558
3,100
2,332
0
1,326
208
196
15,590
1,501
1,475
673
620
2,209
1,424
130,881
157,474
140,216
146,800
142,577
140,216
132,033
134,016'
131,273
138,932
762
4,184
10,143
560
674
1,136
90,149
5,213
1,876
848
6,213
9,122
634
2,776
11,128
621
651
813
111,300
5,323
1,344
1,140
10,149
11,594
620
1,934
10,644
655
933
774
92,023
5,737
1,247
1,573
10,984
13,092
639
1,061
8,478
524
896
688
106,369
5,533
1,206
1,444
11,098
8,865
689
1,586
8,506
540
923
758
100,083
5,533
1,175
1,523
10,947
10,314
620
1,934
10,644
655
933
774
92,023
5,737
1,247
1,573
10,984
13,092
565
1,776
8,250
624
926
934
91,035
5,980
1,230
1,587
9,109
10,016
497
1,475
8,792
590
1,081
842
89,896'
6,007
1,261
1,791
12,096'
9,688'
723
1,264
9,729
539
1,136
952
84,614
6,217
1,445
1,764
12,386
10,503
641
1,612
10,886
560
1,029
1,120
91,042
6,163
1,478
1,662
12,286
10,452
5,890
502
559
1,628
16
1,648
1,537
5,445
380
513
1,525
16
1,486
1,525
5,601
411
534
1,576
19
1,510
1,551
5,705
383
519
1,726
19
1,492
1,566
5,445
380
513
1,525
16
1,486
1,525
5,439
384
514
1,417
17
1,467
1,539
5,424
314
511
1,518
21
1,478
1,582
5,488
304
538
1,628
17
1,452
1,547
5,355
304
538
1,627
18
1,372
1,497
60
South Africa
62
63
Oil-exporting countries"
Other
5,718
507
511
1,681
17
1,523
1,479
66
All other
2,413
1,520
894
2,354
1,781
573
1,998
1,518
479
1,845
1,416
429
1,843
1,483
360
1,998
1,518
479
2,240
1,674
566
2,063
1,547
517
2,079
1,468
611
2,093
1,570
524
2,071
3,862
4,793
4,284
5,151
4,793
2,621
3,751
2,917
1,844
57 Africa
58
Egypt
67 Nonmonetary international and regional
organizations 7
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
2. Includes the Bank for International Settlements. Beginning April 1978, also
includes Eastern European countries not listed in line 23.
3. Beginning April 1978 comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
4. Included in "Other Latin America and Caribbean" through March 1978.
5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
6. Comprises Algeria, Gabon, Libya, and Nigeria.
7. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."
A61
A62
International Statistics • August 1991
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
1990
Type of claim
1988
1991
1990
1989
Oct.
Nov.
495,593
46,714
281,529
124,833
72,132
52,701
42,517
505,352
46,903
291,011
121,447
68,441
53,006
45,992
Dec.
Jan.
Feb/
497,293
38,870
298,964
117,647
69,200
48,446
41,812
509,812
43,638
306,122
116,561
69,017
47,544
43,491
Mar/
1 Total
538,689
593,087
581,614
2 Banks' own claims on foreigners
Foreign public borrowers
3
4
Own foreign offices
Unaffiliated foreign banks
5
6
Deposits
7
Other
All other foreigners
8
491,165
62,658
257,436
129,425
65,898
63,527
41,646
534,492
60,511
296,011
134,885
78,185
56,700
43,085
512,323
41,927
303,127
119,690
67,673
52,017
47,579
47,524
8,289
58,594
13,019
69,291
17,272
69,291
17,272
62,572
15,324
25,700
30,983
33,430
33,430
26,731
13,535
14,592
18,588
18,588
20,516
19,5%
12,899
13,583
13,583
11,766
45,360
45,509
43,395
Apr."
9 Claims of banks' domestic customers 3 ...
11
Outstanding collections and other
512,323
41,927
303,127
119,690
67,673
52,017
47,579
558,593
4%,022
44,305
2%,841
110,473
63,324
47,149
44,403
503,541
41,128
301,356
112,287
64,869
47,419
48,770
Negotiable and readily transferable
12
581,614
13 MEMO: Customer liability on
Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States
42,827
1. Data for banks' own claims are given on a monthly basis, but the data for
claims of banks' own domestic customers are available on a quarterly basis only.
Reporting banks include all kinds of depository institutions besides commercial
banks, as well as some brokers and dealers.
2. U.S. banks: includes amounts due from own foreign branches and foreign
subsidiaries consolidated in "Consolidated Report of Condition" filed with bank
regulatory agencies. Agencies, branches, and majority-owned subsidiaries of
foreign banks: principally amounts due from head office or parent foreign bank,
and foreign branches, agencies, or wholly owned subsidiaries of head office or
48,405
43,395
46,686'
42,184
41,550
n.a.
parent foreign bank.
3. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the account
of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see July 1979 Bulletin,
p. 550.
3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1
Payable in U.S. Dollars
Millions of dollars, end of period
1990
Maturity; by borrower and area
1987
1988
1991
1989
June
1 Total
2
3
4
5
6
7
8
9
10
11
V
13
14
15
16
17
18
19
By borrower
Maturity of 1 year or less 2
Foreign public borrowers
All other foreigners
Maturity over 1 y e a r
Foreign public borrowers
All other foreigners
By area
Maturity of 1 year or less
Europe
Canada
Latin America and Caribbean
Africa .
All other 3
Maturity of over 1 y e a r
Europe
Canada
Latin America and Caribbean
Asia
Africa .
All o t h e r
Dec.
Mar."
235,130
233,184
238,123
208,443
213,898
208,026
198,825
163,997
25,889
138,108
71,133
38,625
32,507
172,634
26,562
146,071
60,550
35,291
25,259
178,346
23,916
154,430
59,776
36,014
23,762
159,164
20,778
138,387
49,279
27,%1
21,318
166,687
21,770
144,917
47,211
26,213
20,998
168,085
20,717
147,368
39,941
20,928
19,013
157,347
21,110
136,237
41,478
22,811
18,667
59,027
5,680
56,535
35,919
2,833
4,003
55,909
6,282
57,991
46,224
3,337
2,891
53,913
5,910
53,003
57,755
3,225
4,541
49,312
5,720
44,332
51,126
2,991
5,683
51,579
5,520
43,941
56,366
2,951
6,330
49,235
5,439
49,314
55,785
3,040
5,273
49,502
5,894
42,189
53,826
3,016
2,919
6,6%
2,661
53,817
3,830
1,747
2,381
4,666
1,922
47,547
3,613
2,301
501
4,121
2,353
45,816
4,172
2,630
684
4,201
2,819
33,189
5,866
2,739
465
4,426
3,033
31,295
5,646
2,544
266
3,871
3,291
25,975
3,869
2,374
561
4,368
3,387
24,948
5,424
2,417
934
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
Sept.
2. Remaining time to maturity,
3. Includes nonmonetary international and regional organizations.
Nonbank-Reported Data
A63
3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 12
Billions of dollars, end of period
1991
1990
1989
Area or country
1987
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar.
25 OPEC countries 3
346.3
340.0
346.5
338.8
334.1
322.2
332.8
318.6
325.8'
152.7
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
34.9
145.5
8.6
11.2
10.2
5.2
2.8
2.3
5.1
65.6
4.0
30.5
145.1
7.8
10.8
10.6
6.1
2.8
1.8
5.4
64.5
5.1
30.2
146.4
6.9
11.1
10.4
6.8
2.4
2.0
6.1
63.7
5.9
31.0
152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.2
146.9
6.6
10.5
11.2
6.0
3.1
2.1
6.3
64.0
4.8
32.4
140.0
6.2
10.3
11.2
5.4
2.7
2.3
6.4
59.9
5.2
30.4
145.2
6.5
11.1
11.2
4.5
3.8
2.3
5.7
62.7
5.1
32.4
133.7
5.9
10.4
10.7
5.0
2.9
2.1
4.7
60.9
5.9
25.1
129.7'
6.1
9.7
8.7
4.0'
3.3
2.0
3.6'
62.6'
6.7
22.9
21.0
1.5
1.1
1.1
1.8
1.8
.4
6.2
1.5
1.3
2.4
1.8
21.1
1.4
1.1
1.0
2.1
1.6
.4
6.6
1.3
1.1
2.2
2.4
21.2
1.7
1.4
1.0
2.3
1.8
.6
6.2
1.1
1.1
2.1
1.9
21.0
1.5
1.1
1.1
2.4
1.4
.4
6.9
1.2
1.0
2.1
2.1
20.7
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
.7
2.0
1.6
23.1
1.5
1.1
1.1
2.6
1.7
.4
8.3
1.3
1.0
2.0
2.1
22.6
1.5
1.1
.9
2.7
1.4
.8
7.9
1.4
1.1
1.9
1.9
23.2
1.6
1.1
.8
2.8
1.5
.6
8.5
1.6
.7
1.9
2.0
22.8
1.4
1.1
.7
2.7
1.6
.6
8.4
1.7
.9
1.8
1.9
23.1
1.4
.9
1.0
2.5
1.5
.6
9.0
1.7
.8
1.8
1.9
17.4
1.9
8.1
1.9
3.6
1.9
16.6
1.7
7.9
1.7
3.4
1.9
16.2
1.6
7.9
1.7
3.3
1.7
16.1
1.5
7.5
1.9
3.4
1.6
16.2
1.5
7.4
2.0
3.5
1.9
17.1
1.3
7.0
2.0
5.0
1.7
15.5
1.2
6.1
2.1
4.3
1.8
15.3
1.1
6.0
2.0
4.4
1.8
14.4
1.1
6.0
2.3
3.3
1.7
13.1
1.0
5.0
2.7
2.8
1.7
17.2
.9
5.1
2.8
6.7
1.7
85.3
85.9
83.4
81.2
77.5
68.8
66.6
67.2
65.5
65.9'
9.5
24.7
6.9
2.0
23.5
1.1
2.8
9.0
22.4
5.6
2.1
18.8
.8
2.6
8.5
22.8
5.7
1.9
18.3
.7
2.7
7.9
22.1
5.2
1.7
17.7
.6
2.6
7.6
20.9
4.9
1.6
17.2
.6
2.9
6.3
19.0
4.6
1.8
17.7
.6
2.8
5.5
17.5
4.3
1.8
12.7
.5
2.7
5.1
16.7
3.7
1.7
12.6
.5
2.3
4.9
15.4
3.6
1.8
13.1
.5
2.4
4.9
14.4
3.5
1.8
13.2
.5
2.3
4.7'
14.0
3.6
1.7
13.1
.5
2.3
.3
8.2
1.9
1.0
5.0
1.5
5.2
.7
.7
.3
3.7
2.1
1.2
6.1
1.6
4.5
1.1
.9
.5
4.9
2.6
.9
6.1
1.7
4.4
1.0
.8
.3
5.2
2.4
.8
6.6
1.6
4.4
1.0
.8
.3
5.0
2.7
.7
6.5
1.7
4.0
1.3
1.0
.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0
.3
3.8
3.5
.6
5.3
1.8
3.7
1.1
1.2
.2
3.6
3.6
.7
5.6
1.8
3.9
1.3
1.1
.2
4.0
3.6
.6
6.2
1.8
3.9
1.5
1.6
.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7
.4'
3.6'
3.5
.5
6.7
2.0
3.7
1.6'
2.1
.6
.9
.0
1.3
.4
.9
.0
1.1
.5
.9
.0
1.1
.6
.9
.0
1.1
.5
.8
.0
1.0
.4
.9
.0
1.0
.4
.9
.0
.9
.5
.9
.0
.8
.4
.9
.0
.8
.4
.8
.0
1.0
.4
.8
.0
.8
3.2
.3
1.8
1.1
3.6
.7
1.8
1.1
3.5
.7
1.7
1.1
3.4
.6
1.7
1.1
3.5
.8
1.7
1.1
3.5
.7
1.6
1.3
3.4
.8
1.4
1.2
2.9
.4
1.4
1.1
2.7
.4
1.3
1.1
2.3
.2
1.2
.9
2.0
.3
1.0
.7
54.5
17.3
.6
13.5
1.2
3.7
.1
11.2
7.0
.0
44.2
11.0
.9
12.9
1.0
2.5
.1
9.6
6.1
.0
48.7
15.8
1.1
12.2
.9
2.2
.1
9.6
6.8
.0
43.2
11.0
.7
10.8
1.0
1.9
.1
10.4
7.3
.0
49.2
11.4
1.3
15.3
1.1
1.5
.1
10.7
7.8
.0
36.6
5.5
1.7
9.0
2.3
1.4
.1
9.7
7.0
.0
42.9
9.2
.9
10.9
2.6
1.3
.1
9.8
8.0
.0
40.1
8.5
2.2
8.5
2.3
1.4
.1
10.0
7.0
.0
41.8
8.9
4.0
9.0
2.2
1.5
.1
8.7
7.5
.0
40.5
2.8
4.3
10.0
7.9
1.4
.1
7.4
6.4
.0
49.C
9.1'
4.1'
i2.r
1.1
1.6
.1
11.3
8.7
.0
23.2
Italy
346.3
159.7
10.0
13.7
12.6
7.5
4.1
2.1
5.6
68.8
5.5
29.8
97.8
6
382.4
26.4
1.9
1.7
1.2
2.0
2.2
.6
8.0
2.0
1.6
2.9
2.4
1 Total
22.6
25.0
27.4
28.7
30.3
33.3
34.5
38.1
40.6
38.5
Latin America
33
34
Brazil
Chile
37
Peru
39
Asia
China
Mainland
43
Korea (South)
Africa
51
Other Africa 4
53
U.S.S.R
55
Other
65
Others®
1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
2. Beginning with June 1984 data, reported claims held by foreign branches
have been reduced by an increase in the reporting threshold for "shell" branches
from $50 million to $150 million equivalent in total assets, the threshold now
applicable to all reporting branches.
3. This group comprises the Organization of Petroleum Exporting Countries
shown individually, other members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates), and Bahrain and
Oman (not formally members of OPEC).
4. Excludes Liberia.
5. Includes Canal Zone beginning December 1979.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.
A64
International Statistics • August 1991
3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the
United States1
Millions of dollars, end of period
1989
Type, and area or country
1987
1988
1990
1989
Sept.
Dec.
Mar.
June
Sept.
Dec.
1 Total
28,302
32,952
38,653
36,544
38,653
38,832
39,642
44,557
41,632'
2 Payable in dollars
3 Payable in foreign currencies
22,785
5,517
27,335
5,617
33,808
4,846
31,683
4,861
33,808
4,846
34,463
4,369
35,090
4,552
39,431
5,126
37,334r
4,298r
By type
4 Financial liabilities
5 Payable in dollars
6 Payable in foreign currencies
12,424
8,643
3,781
14,507
10,608
3,900
18,365
14,462
3,903
17,141
13,289
3,852
18,365
14,462
3,903
17,928
14,635
3,293
19,495
16,055
3,441
20,484
16,644
3,840
17,358'
14,206'
3,152'
15,878
7,305
8,573
14,142
1,737
18,445
6,505
11,940
16,727
1,717
20,288
7,588
12,700
19,345
943
19,403
6,906
12,497
18,394
1,009
20,288
7,588
12,700
19,345
943
20,904
7,434
13,470
19,828
1,076
20,147
6,881
13,266
19,036
1,111
24,073
9,956
14,118
22,787
1,286
24,274'
10,031'
14,243
23,128'
1,147'
8,320
213
382
551
866
558
5,557
9,962
289
359
699
880
1,033
6,533
11,609
340
258
521
947
541
8,741
11,213
308
242
592
855
799
8,207
11,609
340
258
521
947
541
8,741
11,050
318
277
482
901
529
8,256
11,883
332
196
601
934
552
8,741
11,345
350
503
660
948
633
7,539
9,541'
344
638'
630'
973'
576
5,844'
7 Commercial liabilities
8 Trade payables
9 Advance receipts and other liabilities ..
10 Payable in dollars
11 Payable in foreign currencies
12
13
14
15
16
17
18
By area or country
Financial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
19
Canada
360
388
573
575
573
476
345
357
215'
20
21
22
23
24
25
26
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,189
318
0
25
778
13
0
839
184
0
0
645
1
0
1,268
157
17
0
635
6
0
1,367
186
7
0
743
4
0
1,268
157
17
0
635
6
0
1,814
272
0
0
1,061
5
0
2,573
249
0
0
1,782
4
0
3,394
368
0
0
2,409
4
0
3,239
344
0
0
2,274
5
4
27
28
29
Asia
Japan
Middle East oil-exporting countries .
2,451
2,042
8
3,312
2,563
3
4,814
3,963
2
3,886
3,130
2
4,814
3,963
2
4,483
3,445
3
4,636
3,434
5
4,906
3,771
4
3,952'
2,773'
5
30
Africa
4
1
2
0
2
0
4
2
2
0
3
0
3
1
2
0
2
0
100
4
100
97
100
102
55
479
409
5,516
132
426
909
423
559
1,599
7,319
158
455
1,699
587
417
2,079
8,918
179
871
1,365
699
621
2,648
8,335
137
806
1,185
548
531
2,717
8,918
179
871
1,365
699
621
2,648
9,165
233
882
1,145
688
583
2,954
8,343
297
929
962
607
607
2,466
9,733
248
1,191
1,023
701
708
2,804
10,280'
285
1,251
1,235
838
762'
2,821'
1,301
1,217
1,124
1,189
1,124
1,150
1,179
1,266
1,290
864
18
168
46
19
189
162
1,090
49
286
95
34
217
114
1,187
41
308
100
27
304
154
1,086
27
305
113
30
220
107
1,187
41
308
100
27
304
154
1,304
37
516
116
18
241
85
1,278
22
412
106
29
285
119
1,554
18
371
126
42
506
120
1,594
12
538
137
30
420
121
6,565
2,578
1,964
6,915
3,094
1,385
7,188
2,915
1,401
7,088
2,676
1,442
7,188
2,915
1,401
7,015
2,745
1,393
7,073
3,182
1,125
8,797
3,189
2,321
8,925'
3,606
1,701
574
135
576
202
844
307
648
255
844
307
753
263
885
277
1,315
593
789
422
1,057
1,328
1,027
1,057
1,027
1,517
1,390
1,408
1,397
31
32
33
34
35
36
37
38
39
40
Oil-exporting countries
All other 4
Commercial liabilities
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
41
42
43
44
45
46
47
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
48
49
50
Asia
Japan
Middle East oil-exporting countries '
51
52
Africa
Oil-exporting countries
53
All other 4
1. For a description of the changes in the International Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.
Nonbank-Reported
3.23 CLAIMS ON UNAFFILIATED FOREIGNERS
United States1
Data
A65
Reported by Nonbanking Business Enterprises in the
Millions of dollars, end of period
1990
1989
Type, and area or country
1987
1988
1989
Sept.
Dec.
Mar.
June
Sept.
Dec.
30,964
34,035
31,437
32,088
31,437
29,815
31,577
30,903
33,503r
28,502
2,462
31,654
2,381
29,106
2,330
29,806
2,282
29,106
2,330
27,687
2,128
29,265
2,312
28,504
2,399
31,057r
2,445
By type
4 Financial claims
Deposits
5
Payable in dollars
6
7
Payable in foreign currencies
Other financial claims
8
9
Payable in dollars
10
Payable in foreign currencies
20,363
14,894
13,765
1,128
5,470
4,656
814
21,869
15,643
14,544
1,099
6,226
5,450
777
17,689
10,400
9,473
927
7,289
6,535
754
19,135
12,154
11,278
877
6,981
6,073
908
17,689
10,400
9,473
927
7,289
6,535
754
16,558
10,451
9,583
868
6,108
5,420
688
18,035
9,869
8,799
1,070
8,166
7,433
733
16,572
10,303
9,110
1,193
6,269
5,616
652
18,KW
11,473'
10,504'
969
6,636'
5,769'
866
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims .
10,600
9,535
1,065
12,166
11,091
1,075
13,748
12,140
1,608
12,953
11,472
1,481
13,748
12,140
1,608
13,257
11,635
1,622
13,542
11,821
1,721
14,331
12,518
1,813
15,394'
13,454'
1,940
14
15
10,081
519
11,660
505
13,099
650
12,455
498
13,099
650
12,684
573
13,034
508
13,778
554
14,784'
610
9,531
7
332
102
350
65
8,467
10,279
18
203
120
348
218
9,039
7,040
28
153
192
303
95
6,035
7,528
166
173
120
292
111
6,419
7,040
28
153
192
303
95
6,035
6,964
22
198
505
315
122
5,587
9,604
126
141
93
332
137
8,556
7,950
27
143
97
315
176
6,971
8,005'
76
366
371
333
325'
6,276'
Canada
2,844
2,325
1,892
2,359
1,892
1,758
2,035
1,994
2,887
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
7,012
1,994
7
63
4,433
172
19
8,160
1,846
19
47
5,763
151
21
7,590
1,516
7
224
5,431
94
20
8,315
1,699
33
70
6,125
105
36
7,590
1,516
7
224
5,431
94
20
6,984
1,662
4
79
4,824
152
21
5,479
992
3
84
4,003
153
20
5,666
977
4
70
4,215
158
23
5,751
1,261
3
68
4,031
160
25
31
32
33
Asia
Japan
Middle East oil-exporting countries^
879
605
8
844
574
5
831
439
8
826
460
7
831
439
8
763
416
7
815
473
6
733
450
9
1,213'
875'
8
34
Africa
65
7
106
10
140
12
75
8
140
12
67
11
62
8
49
7
37
0
33
155
195
31
195
23
41
179
215
4,180
178
650
562
133
185
1,073
5,181
189
672
669
212
344
1,324
6,168
241
956
687
478
305
1,572
5,429
220
829
686
396
222
1,398
6,168
241
956
687
478
305
1,572
6,026
219
958
699
450
270
1,690
6,042
208
908
662
475
235
1,586
6,428
189
1,140
638
491
300
1,679
7,109'
211'
1,298'
806'
549
302
936
983
1,058
1,278
1,058
1,121
1,125
1,135
1,046'
1 Total
2 Payable in dollars
3 Payable in foreign currencies
16
17
18
19
20
21
22
23
35
36
37
38
39
40
41
42
43
44
Payable in dollars
Payable in foreign currencies
By area or country
Financial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Oil-exporting countries
All other 4
Commercial claims
Europe
Belgium-Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
1,80c
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
1,930
19
170
226
26
368
283
2,241
36
230
299
22
461
227
2,177
57
323
292
36
509
147
2,147
10
271
239
33
509
189
2,177
57
323
292
36
509
147
2,061
22
243
231
38
525
188
2,204
17
284
234
46
581
223
2,392
25
340
252
35
649
223
2,317'
14
249
321'
39
645'
191
52
53
54
Asia
Japan
Middle East oil-exporting countries
2,915
1,158
450
2,993
946
453
3,538
1,184
515
3,316
1,176
410
3,538
1,184
515
3,257
1,061
432
3,419
1,080
414
3,575
1,211
403
4,038'
1,43C
459
55
56
Africa
,
Oil-exporting countries
401
144
435
122
418
107
399
87
418
107
425
89
390
98
372
71
488
67
57
All other 4
238
333
389
383
389
367
361
429
396'
1. For a description of the changes in the Internationa] Statistics tables, see
July 1979 Bulletin, p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
A66
International Statistics • August 1991
3.24 FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1991
Transactions, and area or country
1989
1990
1991
1990
Jan.Apr.
Oct.
Nov.
Jan.
Dec.
Feb.
Mar.
Apr."
U.S. corporate securities
STOCKS
214,061
204,114
Foreign purchases
2 Foreign sales
1
3 Net purchases, or sales (—)
74,260
68,477
11,633
15,434
12,551
13,368
13,316
14,573
10,241
11,048
21,691r
20,615'
21,763'
19,393
20,565
17,421
9,946
-3,801
-817
-1,257
-807
1,076'
2,370'
3,143
5,647
-3,759
-812
-1,267
-808
L,020r
2,369'
3,066
-8,498
-1,234
-368
-398
-2,867
-2,992
892
-1,337
-2,435
-3,477
-2,891
-63
-298
723
57
-305
-98
-257
836
891
1,305
184
2,602
437
79
-137
-1,415
-159
-87
-61
-213
-687
155
-357
-558
-1,517
-1,135
-31
-35
-582
-80
-14
21
-169
-282
216
292
-430
-420
-194
-5
117
-487
-49
-144
-46
-263
149
279
-280
-251
-406
-382
-14
-108
-610
-24
-114
-142
-222
-93
24
233
-279
-196
-271
33
-13
-1,245'
27
-204
-104
-943
27'
469'
937
675
432
-366
31
-279
846'
100
0
119
357
121'
284
3
-30
1,223
-2
16
28
1,732
-45
13
29
552
781
113
131
-182
1,144
1,076
0
127
-234
18 Nonmonetary international and
regional organizations
5,783
-15,218
481
-708
-830
79
-3,277
3,691
-881
3,042
3,531
3,577
3,330
131
299
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East'
Other Asia
Japan
Africa
Other countries
-15,146
10,180
4 Foreign countries
5
6
7
8
9
10
11
12
13
14
15
16
17
173,227
188,373
71
136
-42
-5
9
2
1
78
56
BONDS2
120,550
118,464
42,462
8,842
11,205
9,943
8,859
8,468
14,807'
10,328
20 Foreign sales
19 Foreign purchases
87,376
101,571
37,594
7,673
7,754
7,890
8,575
9,269
10,613'
9,138
21 Net purchases, or sales (—)
33,174
16,892
4,868
1,169
3,452
2,052
284
-801
4,194'
1,190
22 Foreign countries
32,821
17,348
4,770
1,405
3,456
2,055
103
-723
4,093'
1,297
23
24
25
26
27
28
29
30
31
32
33
34
35
19,064
372
-238
850
-511
18,123
1,116
3,686
-182
9,025
6,292
56
57
10,231
373
-377
172
392
10,429
1,906
4,279
76
1,104
747
%
-344
3,244
547
379
152
441
1,545
808
962
29
-287
26
10
5
428
-74
-29
35
-193
371
127
282
-10
628
386
2
-53
2,046
24
-59
52
148
1,727
93
343
-35
1,033
812
6
-30
1,088
39
-41
110
45
1,406
-85
495
74
486
399
-9
7
-130
31
-54
47
360
-102
71
-17
69
131
308
-15
-5
-1,065
68
78
1
-217
-885
106
439
-2
-209
-214
10
-2
3,271'
392'
238'
20
318'
1,633'
385
351
-13
81'
162'
7
10
1,168
56
117
84
-21
900
246
188
-25
-291
-230
8
3
353
-455
98
-237
-4
-2
181
-78
102
-107
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East'
Other Asia
Japan
Africa
Other countries
36 Nonmonetary international and
regional organizations
Foreign securities
37 Stocks, net purchases, or sales ( - )
38
39
3
Foreign purchases
Foreign sales 3
40 Bonds, net purchases, or sales ( - )
41
Foreign purchases
42
Foreign sales
-13,120
-8,729
-9,408
-319
1,068
-1,831
-404
-3,177
-3,305
-2,522
109,792
122,912
122,532
131,261
35,821
45,229
9,282
9,601
10,060
8,993
7,244
9,075
6,230
6,634
10,561
13,738
11,095
14,400
7,935
10,457
-5,943
234,320
240,263
-22,294
314,228
336,522
-3,677
127,817
131,493
-2,791
35,235
38,026
165
32,837
32,671
-4,771
33,372
38,143
-173
27,138
27,312
-1,945
37,202
39,146
-991
40,161
41,152
-568
23,316
23,883
43 Net purchases, or sales ( - ) , of stocks and bonds
-19,063
-31,023
-13,084
-3,110
1,233
-6,602
-577
-5,122
-4,296
-3,090
44 Foreign countries
-19,101
-28,349
-11,761
-2,312
1,207
-5,860
-538
-5,166
-2,845
-3,213
45
46
47
48
49
50
-17,721
-4,180
426
2,532
93
-251
-7,752
-7,374
-8,960
-3,885
-137
-240
-2,735
-3,663
464
-6,103
85
191
-911
-893
262
-687
4
-87
2,017
-1,740
283
706
-69
11
-919
-659
-2,811
-1,571
28
73
342
-573
351
-792
22
112
-3,118
-797
314
-1,811
30
216
-328'
3
114
-2,502
2
-134'
369
-2,295
-316
-998
31
-4
38
-2,673
-1,323
-798
25
-742
-39
44
Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries
51 Nonmonetary international and
regional organizations
1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities, and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-
-1,451
123
ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
3. As a result of the merger of a U.S. and U.K. company in July 1989, the
former stockholders of the U.S. company received $5,453 million in shares of the
new combined U.K. company. This transaction is not reflected in the data above.
Interest and Exchange Rates
3.25
MARKETABLE U.S. TREASURY BONDS AND NOTES
A67
Foreign Transactions
Millions of dollars
Country or area
1989
1991
1990
1991
1990
Jan.Apr.
Oct.
Nov.
Feb.
Jan.
Dec.
Apr."
Mar/
Transactions, net purchases or sales ( - ) during period1
2 Foreign countries
2
2
3 Europe
4 Belgium-Luxembourg
5 Germany 2
6
Netherlands
7
Sweden
8
Switzerland2
United Kingdom
9
10 Other Western Europe
11 Eastern Europe
12 Canada
13
14
15
16
17
18
19
20
Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
All other
21 Nonmonetary international and regional organizations
22 International
23 Latin America regional
Memo
24 Foreign countries2
25 Official institutions
26 Other foreign2
27
28
19,930
Oil-exporting countries
Middle East 3
Africa 4
52,301
36,286
1,048
7,904
-1,141
693
1,098
20,198
6,508
-21
698
464
311
-322
475
13,297
1,681
116
1,439
-1,066
5,848
6,531
2,978
13,230r -15,264
4,585
-1,051
5,538
6,541
4,610
11,770r -14,446
401
561
-6,123
-684
-1,272
156
3,554
4,199
11
245
72
580
-454
163
619
-1,740
1,004
2,070
4,461
-105
571
625
721
200
244
2,204
3,356
260
-542
300
19,096
- 2
5,732
1,012
1,142
112
-1,309
12,388
13
-4,558
0
-218
-637
4,014
-146
5,415
-1,256
374
-6,236
204
-190
15,587
-50
4,880
10,757
-11,047
-14,880
313
855
4,731
- 2
646
4,086
-5,192
-4,059
83
-281
-68
1,677
-249
276
-6
-1,625
2,069
-5
-468
4,316
49
978
3,290
-930
-1,153
8
543
0
155
1,610
1
1,208
401
-72
-2,407
-3
389
-661
170
2,829
995
6
-795
2,933
149
-1,691
-85
43
139
-54
4,432
0
-4,535
115
-3,340
-607
-244
470
513
-1,442
-622
265
214
5
566
5,623
2
3.031
2,590
-2,179
-3,379
16
-171
182
3,110
430
6
1,074
-650
-9,984
-7,016
-1,633
-1,571
-202
-1
2,651
-1,353
37
-549
-292
-410
0
-5,150
-153
-592
-4,405
7,019
2,244
78
102
1,901
1,210
5,517'
1,915
110
269
3.030
0
-540
-22
1,461
1,104
156
-819
-845
5
379
171
225
-1,141
184
-15
-100
-59
310
159
0
-125
92
20,245
23,916
-3,671
4,585
-873
5,458
-1,051
1,375
-2,426
5,538
4,771
767
6,541
7,880
-1,339
4,610
2,541
2,069
11,77c
7,317
4,453r
-14,446
-11,691
-2,755
2,651
959
1,692
-387
-830
20
-1,247
-878
1,014
523
644
-1,485
-513
5
1,902
1,473
231
52,301
26,840
25,461
8,148
-612
-316
-191
- 2
-1
1. Estimated official and private transactions in marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based on
monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.
2. Includes U.S. Treasury notes publicly issued to private foreign residents
denominated in foreign currencies.
3,974
20,245
54,203
1 Estimated total
0
0
0
-10
0
0
21
- 6
3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.
A68
International Statistics • August 1991
3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS
Percent per year
Rate on June 30, 1991
Rate on June 30, 1991
Rate on June 30, 1991
Country
Country
Percent
Month
effective
6.5
7.5
8.90
9.50
Oct. 1989
June 1991
June 1991
Jan. 1991
Country
Austria..
Belgium .
Canada..
Denmark
Percent
France
Germany, Fed. Rep. of,
Italy
Japan
Netherlands
1. As of the end of February 1981, the rate is that at which the Bank of France
discounts Treasury bills for 7 to 10 days.
2. Minimum lending rate suspended as of Aug. 20, 1981.
NOTE. Rates shown are mainly those at which the central bank either discounts
9.0
6.50
11.5
6.0
7.75
Percent
Mar.
Feb.
May
Aug.
Feb.
1990
1991
1991
1990
1991
Norway
Switzerland
United Kingdom'
Month
effective
10.50
6.0
Month
effective
July 1990
Oct. 1989
or makes advances against eligible commercial paper and/or government commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood the
central bank transacts the largest proportion of its credit operations.
3.27 FOREIGN SHORT-TERM INTEREST RATES
Percent per year, averages of daily figures
1990
Country, or type
1988
1989
1991
1990
Dec.
1
7
3
4
5
6
7
8 Italy
9
10
Jan.
Feb.
Mar.
Apr.
May
June
7.85
10.28
9.63
4.28
2.94
9.16
13.87
12.20
7.04
6.83
8.16
14.73
13.00
8.41
8.71
7.87
13.75
11.95
9.17
8.65
7.23
13.91
11.13
9.25
8.44
6.60
13.20
10.37
8.96
7.81
6.44
12.33
9.97
8.99
8.17
6.11
11.90
9.67
9.08
8.26
5.94
11.48
9.12
8.98
8.10
6.08
11.21
8.83
8.95
7.89
4.72
7.80
11.04
6.69
4.43
7.28
9.27
12.44
8.65
5.39
8.57
10.20
12.11
9.70
7.75
9.27
10.14
13.45
9.81
8.27
9.31
10.14
13.13
9.91
8.18
9.01
9.64
13.31
9.51
8.01
9.04
9.34
12.52
9.28
8.09
9.11
9.21
11.90
9.20
7.96
9.05
9.13
11.46
9.00
7.82
9.08
9.59
11.48
9.08
7.79
NOTE. Rates are for 3-month interbank loans except for Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, CD rate.
Interest and Exchange Rates
A69
3.28 FOREIGN EXCHANGE RATES1
Currency units per dollar
1991
Country/currency
1988
1989
1990
Jan.
Feb.
Mar.
Apr.
May
June
18 New Zealand/dollar 2
28 Taiwan/dollar
29 Thailand/baht
78.069
11.331
33.424
1.1668
4.7921
6.1899
77.930
10.616
31.088
1.1560
5.2352
5.8115
78.351
10.416
30.475
1.1549
5.2352
5.6953
77.107
11.341
33.206
1.1572
5.2352
6.1886
77.947
11.977
35.017
1.1535
5.2767
6.5163
77.427
12.104
35.363
1.1499
5.3257
6.5793
75.982
12.538
36.689
1.1439
5.3667
6.8634
4.2963
6.3802
1.8808
162.60
7.8008
16.213
141.80
3.8300
5.4467
1.6166
158.59
7.7899
17.492
165.76
3.6431
5.1253
1.5091
159.70
7.7950
18.339
168.68
3.5941
5.0398
1.4805
158.82
7.7943
18.860
179.81
3.8512
5.4862
1.6122
174.16
7.7911
19.243
157.43
3.9925
5.7540
1.7027
184.76
7.7939
19.906
157.12
4.0431
5.8282
1.7199
188.14
7.7798
20.519
155.68
4.2189
6.0483
1.7828
195.03
7.7341
21.062
142.66
1,302.39
128.17
2.6190
1.9778
65.560
6.5243
144.27
1,372.28
138.07
2.7079
2.1219
59.561
6.9131
157.53
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70
1,134.38
133.70
2.7140
1.7015
59.476
5.8993
134.43
1,111.19
130.54
2.6969
1.6689
60.120
5.7919
130.45
1,201.96
137.39
2.7418
1.8174
59.389
6.2899
140.97
1,261.57
137.11
2.7498
1.9186
58.909
6.6198
148.00
1,275.67
138.22
2.7573
1.9379
58.647
6.6953
149.59
1,325.09
139.75
2.7810
2.0085
57.645
6.9542
156.37
2.0133
2.2770
734.52
116.53
31.820
6.1370
1.4643
28.636
25.312
178.13
1.9511
2.6214
674.29
118.44
35.947
6.4559
1.6369
26.407
25.725
163.82
1.8134
2.5885
710.64
101.96
40.078
5.9231
1.3901
26.918
25.609
178.41
1.7455
2.5643
720.83
95.08
40.300
5.6345
1.2714
27.197
25.244
193.46
1.7180
2.5412
723.97
92.61
40.598
5.5516
1.2685
27.109
25.141
196.41
1.7589
2.6636
727.73
100.21
40.750
5.9081
1.3918
27.311
25.447
182.14
1.7688
2.7325
728.36
105.08
40.836
6.1145
1.4399
27.333
25.578
174.97
1.7688
2.7975
727.99
106.45
40.988
6.1578
1.4574
27.282
25.645
172.38
1.7782
2.8625
727.97
111.18
41.211
6.4235
1.5297
27.166
25.766
164.97
92.72
14 Italy/lira
79.186
13.236
39.409
1.1842
3.7673
7.3210
4.1933
5.9595
1.7570
142.00
7.8072
13.900
152.49
5 China, P.R./yuan
78.409
12.357
36.785
1.2306
3.7314
6.7412
98.60
89.09
83.51
82.12
91.41
92.29
95.18
MEMO
1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) release. For address, see
inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
88.12
currencies of 10 industrial countries. The weight for each of the 10 countries is the
1972-76 average world trade of that country divided by the average world trade of
all 10 countries combined. Series revised as of August 1978 (see Federal Reserve
Bulletin, vol. 64, August 1978, p. 700).
A71
Guide to Tabular Presentation,
Statistical Releases, and Special Tables
GUIDE TO TABULAR PRESENTATION
Symbols and Abbreviations
c
e
p
r
*
0
n.a.
n.e.c.
IPCs
REITs
RPs
SMSAs
Corrected
Estimated
Preliminary
Revised (Notation appears on column heading when about
half of the figures in that column are changed.)
Amounts insignificant in terms of the last decimal place
shown in the table (for example, less than 500,000 when
the smallest unit given is millions)
Calculated to be zero
. Not available
Not elsewhere classified
Individuals, partnerships, and corporations
Real estate investment trusts
Repurchase agreements
Standard metropolitan statistical areas
Cell not applicable
General Information
tions of the Treasury. "State and local government" also includes municipalities, special districts, and other political
subdivisions.
In some of the tables, details do not add to totals because of
rounding.
Minus signs are used to indicate (1) a decrease, (2) a negative
figure, or (3) an outflow.
"U.S. government securities" may include guaranteed issues
of U.S. government agencies (the flow of funds figures also
include not fully guaranteed issues) as well as direct obliga-
STATISTICAL RELEASES—list
Published Semiannually, with Latest
BULLETIN
Issue
June 1991
Anticipated schedule of release dates for periodic releases
SPECIAL
TABLES-Published Irregularly, with Latest
Reference
BULLETIN
Page
A82
Issue
Page
Reference
Title and Date
Assets and liabilities of commercial banks
June 30, 1990
September 30,1990
December 31,1990
March 31,1991
February
March
May
August
1991
1991
1991
1991
A72
A72
A72
A72
Terms of lending at commercial banks
May 1990
August 1990
November 1990
February 1991
December
December
April
August
1990
1990
1991
1991
A72
A77
A73
A78
Assets and liabilities of U.S. branches and agencies of foreign banks
March 31,1990
June 30,1990
September 30,1990
December 31,1990
September
December
February
June
1990
1990
1991
1991
A78
A82
A78
A72
Pro forma balance sheet and income statements for priced service operations
September 30,1989
March 31,1990
June 30,1990
September 30,1990
March
September
October
August
1990
1990
1990
1991
A88
A82
A72
A82
Special tables follow.
All
Special Tables • August 1991
4.20 DOMESTIC AND FOREIGN OFFICES, Insured Commercial Bank Assets and Liabilities1-2
Consolidated Report of Condition, March 31, 1991
Millions of dollars
Banks with foreign offices
Item
Banks with domestic
offices only
Total
Total
1 Total assets"
2 Cash and balances due from depository institutions
3
Cash items in process of collection, unposted debits, and currency and coin
Cash items in process of collection and unposted debits
4
5
Currency and coin
Balances due from depository institutions in the United States
6
7
Balances due from banks in foreign countries and foreign central banks
8
Balances due from Federal Reserve Banks
Foreign
Domestic
Over 100
Under 100
3,336,907
1,866,718
425,416
1,518,631
1,100,422
364,924
259,206
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
177,042
65,682
n.a.
n.a.
30,808
67,579
12,973
87,071
1,696
n.a.
n.a.
20,609
64,674
93
89,971
63,986
50,707
13,279
10,199
2,905
12,881
59,254
28,457
19,423
9,034
18,232
2,986
9,579
22,623
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
MEMO
9 Noninterest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)
12,952
8,008
985,465
326,708
225,684
250,255
114,677
168,236
46,046
122,191
184,895
75,184
109,710
89,969
n.a.
n.a.
1,382
705
850
1,711
80,198
41,993
26,202
25,810
51,274
58,436
37,181
24,008
21,171
n.a.
15,690
n.a.
1,366
26,154
26,120
4,706
1,271
453
959
140
3,435
0
1,711
24,272
1,118
135
18
117
0
982
1,366
24,443
1,848
3,588
1,136
435
841
140
2,453
1,469
22,539
356
3,815
2,036
1,115
1,078
157
1,779
260
7,485
n.a.
1,274
947
869
157
79
327
148,568
125,200
23,368
2,093,415
12,437
2,080,977
54,685
242
2,026,051
71,139
54,237
16,902
1,195,597
5,088
1,190,509
37,305
241
1,152,963
438
n.a.
n.a.
207,443
1,355
206,088
n.a.
n.a.
n.a.
70,702
n.a.
n.a.
988,155
3,733
984,421
n.a.
n.a.
n.a.
53,817
47,746
6,071
701,010
5,595
695,415
14,021
0
681,394
23,484
23,088
3%
193,565
1,754
191,811
3,264
1
188,547
832,214
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
50,913
n.a.
n.a.
n.a.
413,695
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
39,911
18,647
1,669
19,595
26,164
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
16,731
520
98
16,114
387,531
77,522
2,015
187,372
33,908
153,464
10,938
109,683
23,180
18,128
1,572
3,481
320,600
37,405
5,856
162,796
25,774
137,023
9,253
105,290
10,428
9,967
437
24
97,963
6,498
9,594
54,502
3,153
51,350
1,807
25,561
319
n.a.
n.a.
n.a.
32,242
603,443
n.a.
n.a.
3,996
n.a.
n.a.
5,259
425,689
346,199
79,489
1,165
608
557
252
101,620
23,802
77,819
478
82
395
5,007
324,068
322,398
1,671
687
526
161
9,038
141,494
141,078
417
1,457
n.a.
n.a.
17,945
36,230
n.a.
n.a.
1,374
n.a.
n.a.
389,488
131,686
257,802
159,616
49,810
109,806
16,097
n.a.
n.a.
143,519
n.a.
n.a.
190,688
76,502
114,186
36,184
2,378
33,806
59 Obligations (other than securities) of states and political subdivisions in the U.S.
(includes nonrated industrial development obligations)
60
Taxable
61
Tax-exempt
62 All other loans
63
Loans to foreign governments and official institutions
64
Other loans
65
Loans for purchasing and carrying securities
66
All other loans
32,911
1,525
31,386
111,228
n.a.
n.a.
n.a.
n.a.
19,170
1,097
18,074
100,665
24,685
75,979
n.a.
n.a.
276
147
129
42,034
23,399
18,635
n.a.
n.a.
18,894
949
17,944
58,630
1,286
57,344
11,823
45,521
12,328
377
11,951
8,925
108
8,817
1,497
7,320
1,413
52
1,361
1,639
n.a.
n.a.
n.a.
n.a.
67
68
69
70
71
72
73
74
75
36,978
53,921
50,961
24,187
2,926
19,147
n.a.
11,088
118,204
30,429
52,228
27,629
14,115
2,499
18,751
n.a.
6,614
86,642
3,791
27,034
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
26,638
25,042
n.a.
n.a.
n.a.
n.a.
47,504
n.a.
n.a.
6,051
1,501
17,160
7,834
375
378
n.a.
4,068
24,388
499
192
6,104
2,239
53
18
n.a.
366
6,622
10 Total securities, loans and lease financing receivables, net
11 Total securities, book value
12 U.S. Treasury securities and U.S. government agency and corporation
obligations
13
U.S. Treasury securities
14
U.S. government agency and corporation obligations
15
All holdings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
16
All other
17 Securities issued by states and political subdivisions in the United States
18 Other domestic debt securities
19
All holdings of private certificates of participation in pools of
residential mortgages
20
All other domestic debt securities
21
Foreign debt securities
22 Equity securities
23
Marketable
24
Investments in mutual funds
25
Other
26
Less: Net unrealized loss
27
Other equity securities
28 Federal funds sold and securities purchased under agreements to resell
29 Federal funds sold
30
Securities purchased under agreements to resell
31 Total loans and lease financing receivables, gross
32
LESS: Unearned income on loans
33 Total loans and leases (net of unearned income)
34 LESS: Allowance for loan and lease losses
35 LESS: Allocated transfer risk reserves
36
EQUALS: Total loans and leases, net
Total loans, gross, by category
37 Loans secured by real estate
38 Construction and land development
39
Farmland
40
1-4 family residential properties
41
Revolving, open-end loans, extended under lines of credit
42
All other loans
43
Multifamily (5 or more) residential properties
44
Nonfarm nonresidential properties
45 Loans to depository institutions
46 To commercial banks in the United States
47 To other depository institutions in the United States
48 To banks in foreign countries
49
50
51
52
53
54
55
56
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
To U.S. addressees (domicile)
To non-U.S. addressees (domicile)
Acceptances of other banks
U.S. banks
Foreign banks
Loans to individuals for household, family, and other personal expenditures (includes
purchased paper)
57
Credit cards and related plans
58
Other (includes single payment and installment)
Lease financing receivables
Assets held in trading accounts
Premises and fixed assets (including capitalized leases)
Other real estate owned
Investments in unconsolidated subsidiaries and associated companies
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Intangible assets
Other assets
n.a.
n.a.
n.a.
2,797,265
1,481,197
n.a.
622,646
257,095
31,411
447,008
n.a.
n.a.
171,697
47,420
124,277
3,461
1,374
2,087
154,025
n.a.
79,923
n.a.
81,579
42,698
27,052
27,521
3,095
56,178
n.a.
9,804
4,254
2,437
2,194
377
5,550
6,512
n.a.
Commercial Banks
A73
4.20—Continued
Banks with foreign offices
Item
Banks with domestic
offices only
Total
Total
Foreign
Domestic
Over 100
76 Total liabilities, limited-life preferred stock, and equity capital
3,336,907
1,866,718
n.a.
n.a.
1,100,422
77 Total liabilities7
78 Limited-life preferred stock
3,114,627
6
1,760,353
0
425,487
n.a.
1,412,195
n.a.
1,017,891
4
79 Total deposits
80 Individuals, partnerships, and corporations
81 U.S. government
82 States and political subdivisions in the United States
83 Commercial banks in the United States
84 Other depository institutions in the United States
85 Banks in foreign countries
86 Foreign governments and official institutions
87 Certified and official checks
88 All other 8
2,596,936
n a.
n a.
n a.
n a.
n a.
n.a.
n a.
15,622
1,361,080
n a.
n a.
n.a.
n.a.
n.a.
n a.
20,276
$,218
305,074
182,958
n.a.
n.a.
n.a.
n.a.
n.a.
19,175
999
101,942
1,056,006
973,152
4,323
37,743
20,412
4,957
7,100
1,100
7,220
n.a.
907,293
844,460
1,827
44,350
7,949
2,966
126
50
5,564
n.a.
89 Total transaction accounts
90 Individuals, partnerships, and corporations
91 U.S. government
92
States and political subdivisions in the United States
93 Commercial banks in the United States
94 Other depository institutions in the United States
95 Banks in foreign countries
96 Foreign governments and official institutions
97 Certified and official checks
98 All other
302,380
255,349
3,369
9,154
16,404
3,628
6,464
792
7,220
n.a.
225,821
200,681
1,582
11,030
5,680
1,173
103
9
5,564
n.a.
99 Demand deposits (included in total transaction accounts)
100 Individuals, partnerships, and corporations
101 U.S. government
102 States and political subdivisions in the United States
103 Commercial banks in the United States
104 Other depository institutions in the United States
105 Banks in foreign countries
106 Foreign governments and official institutions
107 Certified and official checks
108 All other
109 Total nontransaction accounts
110 Individuals, partnerships, and corporations
111 U.S. government
112 States and political subdivisions in the United States
113 Commercial banks in the United States
114
U.S. branches and agencies of foreign banks
115
Other commercial banks in the United States
116 Other depository institutions in the United States
117 Banks in foreign countries
118
Foreign branches of other U.S. banks
119
Other banks in foreign countries
120 Foreign governments and official institutions
121 All other
219,979
175,624
3,329
6,576
16,404
3,582
6,453
791
7,220
n.a.
753,626
717,803
953
28,589
4,008
299
3,709
1,328
636
12
623
308
n.a.
131,623
112,863
1,554
4,705
5,678
1,147
103
9
5,564
n.a.
681,472
643,779
245
33,320
2,269
429
1,841
1,793
24
19
5
41
n.a.
122
123
124
125
126
127
128
129
130
131
Federal funds purchased and securities sold under agreements to repurchase.,
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs...
All other liabilities
Total equity capital9
132
133
134
135
136
137
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the
broker in shares of $100,000 or less
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits (excluding MMDAs)
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits
n a.
175,891
113,797
62,093
n.a.
87,475
18,864
22,469
n.a.
78,010
106,365
1,239
n.a.
n. a.
n.a.
34,072
3,599
n.a.
n a.
n a.
n.a.
174,652
n.a.
n.a.
16,564
53,403
15,265
n.a.
29,825
n.a.
n.a.
62,942
34,464
28,478
3,984
24,754
378
1,346
n.a.
17,196
82,527
309
384
60,774
48,835
26,591
3,371
2,800
57,614
20,457
15,682
4,582
23,220
n.a.
Footnotes appear at the end of table 4.22
n. a.
11,100
207,754
93,938
260,371
161,414
30,150
81,604
836,027
144,030
85,232
324
124,524
3,951
92,647
775,670
967,038
n.a.
Quarterly averages
145 Total loans
146 Obligations (other than securities) of states and political subdivisions
in the United States
147 Transaction accounts in domestic offices (NOW accounts, ATS accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts in domestic offices
148 Money market deposit accounts (MMDAs)
149 Other savings deposits
150 Time certificates of deposit of $100,000 or more
151 All other time deposits
152 Number of banks
n.a.
694
241,522
149,291
92,231
n. a.
112,988
19,259
23,924
n.a.
99,108
222,274
MEMO
138
139
140
141
142
143
144
n.a.
690,872
19,436
1
12,224
227
n.a.
12,380
80,993
92,561
204,334
90,216
168,833
292,513
140,863
82,663
125,241
328,432
n.a.
2,797
All
Special Tables • August 1991
4.21
DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices1 2,6
Consolidated Report of Condition, March 31, 1991
Millions of dollars
Members
Item
Nonmembers
Total
Total
National
State
2,619,053
2,033,164
1,633,885
399,279
585,889
149,225
70,130
22,312
28,430
5,891
22,460
119,657
61,708
18,184
17,638
4,606
17,522
98,851
51,491
15,195
14,715
3,620
13,830
20,806
10,217
2,989
2,923
986
3,692
29,568
8,422
4,129
10,792
1,286
4,938
2,280,294
1,753,162
1,425,712
327,450
527,131
475,939
121,230
231,901
352,230
81,689
182,260
271,753
64,794
142,700
80,477
16,8%
39,560
123,709
39,541
49,641
131,472
100,429
63,383
49,818
2,835
46,982
2,204
7,403
3,172
1,550
1,920
298
4,231
109,017
73,243
47,013
35,642
1,885
33,757
1,641
3,985
899
612
351
65
3,086
86,690
56,009
35,226
24,990
1,636
23,355
893
3,150
669
539
172
42
2,482
22,326
17,234
11,787
10,652
250
10,402
748
835
230
74
180
23
605
22,455
27,186
16,371
14,176
950
13,225
563
3,418
2,273
938
1,568
233
1,145
124,518
47,746
6,071
1,689,165
9,328
1,679,836
98,115
30,342
3,361
1,309,590
6,773
1,302,817
78,133
26,595
2,497
1,081,377
5,551
1,075,825
19,982
3,747
864
228,214
1,222
226,992
26,403
17,404
2,709
379,574
2,555
377,019
708,131
114,927
7,871
350,169
59,682
290,487
20,191
214,973
28,095
2,009
3,505
14,045
531,604
90,047
4,979
262,771
46,137
216,634
14,785
159,022
19,258
1,789
3,434
10,158
452,322
74,340
4,319
225,073
38,733
186,340
12,665
135,926
14,861
1,743
1,826
9,185
79,282
15,707
660
37,698
7,403
30,294
2,120
23,097
4,398
46
1,609
972
176,527
24,881
2,892
87,398
13,545
73,852
5,406
55,951
8,836
220
70
3,888
465,563
463,475
2,088
380,033
378,258
1,775
303,695
302,363
1,332
76,338
75,8%
442
85,530
85,217
313
2,144
1,175
205
1,429
886
154
1,148
678
147
281
208
6
715
289
52
49 Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
50
Credit cards and related plans
51
Other (includes single payment and installment)
52 Loans to foreign governments and official institutions
53 Obligations (other than securities) of states and political subdivisions in the United States
54
Taxable
55
Tax-exempt
56 Other loans
57
Loans for purchasing and carrying securities
58
All other loans
334,207
76,502
114,186
1,394
31,222
1,326
29,8%
66,162
13,320
52,841
246,043
43,460
69,964
1,334
25,934
1,144
24,790
60,780
12,111
48,670
209,014
40,882
59,407
1,045
19,542
873
18,669
43,876
7,413
36,463
37,029
2,578
10,556
289
6,392
271
6,121
16,904
4,697
12,207
88,164
33,042
44,222
60
5,288
182
5,106
5,382
1,210
4,172
59
60
61
62
32,689
15,353
47,504
174,182
27,794
13,967
42,199
146,378
23,121
10,568
20,623
98,754
4,673
3,399
21,576
47,624
4,895
1,386
5,305
27,804
1 Total assets6
2 Cash and balances due from depository institutions—
3 Cash items in process of collection and unposted debits
4
Currency and coin
5
Balances due from depository institutions in the United States
Balances due from banks in foreign countries and foreign central banks
6
7
Balances due from Federal Reserve Banks
8 Total securities, loans and lease financing receivables, (net of unearned income)
9 Total securities, book value
10 U.S. Treasury securities
11 U.S. government agency and corporation obligations
12
All noldings of U.S. government-issued or guaranteed certificates of
participation in pools of residential mortgages
13
All other
14 Securities issued by states and political subdivisions in the United States
15 Other domestic debt securities
16
All holdings of private certificates of participation in pools of residential mortgages ..
17
All other
18 Foreign debt securities
19 Equity securities
20
Marketable
21
Investments in mutual funds
22
Other
23
Less: Net unrealized loss
24
Other equity securities
25 Federal funds sold and securities purchased under agreements to resell 10
26
Federal funds sold
27
Securities purchased under agreements to resell
28 Total loans and lease financing receivables, gross
29
LESS: Unearned income on loans
30 Total loans and leases (net of unearned income)
31
32
33
34
35
36
37
38
39
40
41
42
Total loans, gross, by category
Loans secured by real estate
Construction and land development
Farmland
1-4 family residential properties
Revolving, open-end and extended under lines of credit
All other loans
Multifamily (5 or more) residential properties
Nonfarm nonresidential properties
Loans to commercial banks in the United States
Loans to other depository institutions in the United States
Loans to banks in foreign countries
Loans to finance agricultural production and other loans to farmers
43 Commercial and industrial loans
44
To U.S. addressees (domicile)
45
To non-U.S. addressees (domicile)
46 Acceptances of other banks 11
47
O f U . S . banks
48 Of foreign banks
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets
Commercial Banks A73
4.21—Continued
Members
State
63 Total liabilities and equity capital
2,619,053
2,033,164
1,633,885
399,279
4
2,430,087
1,890,605
1,521,138
369,467
65 Total deposits
66 Individuals, partnerships, and corporations
67
U.S. government
68 States and political subdivisions in the United States
69 Commercial banks in the United States
70 Other depository institutions in the United States
71 Banks in foreign countries
72 Foreign governments and official institutions
73 Certified and official checks
1,963,299
1,817,612
6,150
82,093
28,361
7,923
7,226
1,150
12,784
1,499,660
1,385,772
5,381
60,317
25,002
5,842
6,508
1,234,221
1,142,091
4,625
50,071
20,086
5,128
3,810
564
7,846
265,440
243,681
755
10,247
4,915
714
2,698
464
1,965
74 Total transaction accounts
75 Individuals, partnerships, and corporations
76 U.S. government
77
States and political subdivisions in the United States
78 Commercial banks in the United States
79 Other depository institutions in the United States
80 Banks in foreign countries
81 Foreign governments and official institutions
82 Certified and official checks
528,201
456,030
4,951
20,183
22,083
4,801
6,567
418,816
357,524
4,276
20,264
3,953
6,150
758
9,811
341,021
292,497
3,669
13,184
16,456
3,380
3,665
324
7,846
77,795
65,026
607
2,897
3,808
573
2,485
433
1,965
83 Demand deposits (included in total transaction accounts)
84 Individuals, partnerships, and corporations
85 U.S. government
86 States and political subdivisions in the United States
87 Commercial banks in the United States
88 Other depository institutions in the United States
89 Banks in foreign countries
90 Foreign governments and official institutions
91 Certified and official checks
351,602
288,487
4,883
4,729
6,555
800
12,784
285,169
230,520
4,232
9,540
20,263
3,897
6,148
757
9,811
228,596
185,610
3.629
7,743
16,455
3,324
3,665
324
7,846
56,573
44,910
603
1,797
3,808
573
2,484
433
1,965
1,435,098
1,361,582
1,199
61,909
6,277
728
5,549
3,122
659
31
628
349
1,080,845
1,028,248
1,104
44,237
4,738
201
4,537
1,890
358
26
332
270
893,200
849,593
956
36,887
3.630
73
3,558
1,748
145
13
132
240
187,645
178,655
148
7,350
237,593
34,464
28,478
20,549
78,156
15,643
1,346
29,825
113,501
202,859
24,823
14,388
18,663
55,940
14,257
868
25,142
98,357
145,248
21,357
12,071
13,164
43,290
10,827
811
23,240
73,577
57,612
3,467
2,316
5,498
12,651
3,429
58
1,902
24,780
188,966
142,559
112,747
29,812
3,184
118,388
69,292
42,273
7,953
1,399
91,061
51,252
29,804
3,117
1,370
75,591
43,876
25,634
2,698
29
15,470
7,376
4,171
419
34,320
26,687
22,936
3,751
351,785
179,170
584,106
285,937
34,100
174,251
1,611,697
278,251
138,676
429,484
206,530
27,904
132,181
1,214,492
230,114
103,494
365,137
177,431
17,023
111,073
1,005,625
48,136
35,182
64,347
29,099
10,881
208,867
1,657,910
31,816
1,284,717
26,511
1,058,238
19,557
226,479
6,954
173,555
131,619
110,670
20,949
345,197
172,879
294,074
620,944
273,634
133,503
213,880
461,843
225,199
99,632
183,611
386,074
48,434
33,871
30,270
75,769
3,024
1,639
1,378
261
64 Total liabilities
92 Total nontransaction accounts
93 Individuals, partnerships, and corporations
94 U.S. government
95 States and political subdivisions in the United States
96 Commercial banks in the United States
97
U.S. branches and agencies of foreign banks
98
Other commercial banks in the United States
99 Other depository institutions in the United States
100 Banks in foreign countries
101
Foreign branches of other U.S. banks
102
Other banks in foreign countries
103 Foreign governments and official institutions
104
105
106
107
108
109
110
111
112
Federal funds purchased and securities sold under agreements to repurchase 12
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
113 Total equity capital9
MEMO
114
115
116
117
118
119
Holdings of commercial paper included in total loans, gross
Total individual retirement accounts (IRA) and Keogh plan accounts
Total brokered deposits
Total brokered retail deposits
Issued in denominations of $100,000 or less
Issued in denominations greater than $100,000 and participated out by the broker in shares
of $100,000 or less
120
121
122
123
124
125
126
Savings deposits
Money market deposit accounts (MMDAs)
Other savings accounts
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW accounts)
Total time and savings deposits
Quarterly averages
127 Total loans
128 Obligations (other than securities) of states and political subdivisions in the United States . . .
129 Transaction accounts (NOW accounts, ATS accounts, and telephone preauthorized
transfer accounts)
130
131
132
133
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposits of $100,000 or more
All other time deposits
134 Number of banks
Footnotes appear at the end of table 4.22
801
12,784
11,282
22,081
1,028
9,811
16,081
1,108
128
980
141
213
13
200
31
21,108
All
Special Tables • August 1991
4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1'2'6
Consolidated Report of Condition, March 31, 1991
Millions of dollars
Members
Item
Nonmembers
Total
Total
National
State
2,983,977
2,176,907
1,747,649
429,258
807,069
171,848
25,313
27,472
119,062
128,849
19,377
15,316
94,156
106,305
16,154
12,385
77,765
22,544
3,223
2,930
16,391
42,998
5,936
12,156
24,906
2,610,266
1,882,845
1,528,126
354,719
727,421
590,616
443,100
79,073
59,766
3,095
56,836
8,677
4,118
2,419
2,076
377
4,558
148,002
70,834
6,467
1,882,730
11,082
1,871,648
396,850
299,285
52,699
40,316
2,001
38,481
4,550
1,229
941
379
91
3,321
108,619
40,634
3,574
1,384,861
7,486
1,377,376
308,125
236,368
39,761
28,386
1,712
26,840
3,610
950
821
193
64
2,660
86,525
34,785
2,699
1,139,578
6,102
1,133,476
88,726
62,918
12,937
11,930
288
11,642
941
279
120
186
27
662
22,094
5,849
874
245,284
1,384
243,900
193,766
143,815
26,375
19,450
1,095
18,355
4,127
2,889
1,477
1,697
285
1,237
39,383
30,201
2,893
497,869
3,597
494,272
806,094
121,426
17,465
404,671
62,835
341,836
21,998
240,534
569,207
92,818
8,028
283,846
47,516
236,330
15,446
169,069
481,269
76,355
6,775
241,193
39,736
201,457
13,175
143,771
87,937
16,462
1,253
42,653
7,780
34,873
2,271
25,298
236,887
28,608
9,437
120,825
15,319
105,506
6,552
71,465
33,927
31,990
501,793
3,519
24,654
16,327
394,972
2,007
18,551
14,142
314,919
1,659
6,104
2,185
80,052
348
9,273
15,663
106,821
1,512
370,391
78,880
147,991
32,635
1,378
31,257
69,194
33,188
15,371
47,584
186,492
260,575
44,659
83,297
26,428
1,163
25,265
62,734
27,958
13,981
42,279
151,231
220,478
41,974
69,779
19,947
889
19,058
45,353
23,260
10,582
20,704
102,636
40,098
2,685
13,517
6,481
274
6,207
17,381
4,698
3,400
21,576
48,595
109,816
34,221
64,695
6,207
215
5,992
6,461
5,230
1,390
5,305
35,260
48 Total liabilities and equity capital
2,983,977
2,176,907
1,747,649
429,258
807,069
49 Total liabilities4
2,762,096
2,021,659
1,625,000
396,658
740,437
50 Total deposits
51
Individuals, partnerships, and corporations
52
U.S. government
53
States and political subdivisions in the United States
54
Commercial banks in the United States
55
Other depository institutions in the United States
56
Certified and official checks
57
All other
2,287,458
2,115,827
6,734
103,433
29,543
8,883
14,615
8,423
1,627,087
1,503,283
5,622
68,071
25,772
6,183
10,591
7,565
1,335,230
1,235,171
4,826
56,441
20,544
5,399
8,451
4,398
291,857
268,112
795
11,630
5,228
785
2,140
3,166
660,372
612,544
1,112
35,363
3,771
2,700
4,024
858
58 Total transaction accounts
59
Individuals, partnerships, and corporations
60
U.S. government
61
States and political subdivisions in the United States
62
Commercial banks in the United States
63
Other depository institutions in the United States
64
Certified and official checks
65
All other
610,085
528,893
5,433
26,090
22,672
5,000
14,615
7,382
452,335
387,317
4,484
18,182
20,802
4,041
10,591
6,918
368,018
316,564
3,851
14,953
16,752
3,452
8,451
3,995
84,317
70,754
633
3,229
4,050
589
2,140
2,923
157,750
141,576
949
7,908
1,870
958
4,024
464
66 Demand deposits (included in total transaction accounts)
67
Individuals, partnerships, and corporations
68
U.S. government
69
States and political subdivisions in the United States
70
Commercial banks in the United States
71
Other depository institutions in the United States
72
Certified and official checks
73
All other
392,107
324,219
5,352
12,962
22,670
4,920
14,615
7,370
302,344
245,480
4,438
10,137
20,801
3,982
10,591
6,916
242,239
197,591
3,809
8,249
16,751
3,393
8,451
3,995
60,104
47,888
629
1,888
4,050
589
2,140
2,921
89,764
78,739
914
2,826
1,869
938
4,024
454
1,677,373
1,586,934
1,301
77,343
6,870
3,884
1,040
1,174,751
1,115,966
1,137
49,889
4,970
2,142
647
967,211
918,607
975
41,487
3,792
1,947
403
207,540
197,359
162
8,401
1,178
195
244
502,622
470,968
163
27,455
1,900
1,742
394
1 Total assets6
2 Cash and balances due from depository institutions
3
Currency and coin
4
Noninterest-bearing balances due from commercial banks
5
Other
6 Total securities, loans, and lease financing receivables (net of unearned income)
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Total securities, book value
U.S. Treasury securities and U.S. government agency and corporation obligations
Securities issued by states and political subdivisions in the United States
Other debt securities
All holdings of private certificates of participation in pools of residential mortgages ..
All other
Equity securities
Marketable
Investments in mutual funds
Other
Less: Net unrealized loss
Other equity securities
h
Federal funds sold and securities purchased under agreements to resell
Federal funds sold
Securities purchased under agreements to resell
Total loans and lease financing receivables, gross
LESS: Unearned income on loans
Total loans and leases (net of unearned income)
Total loans, gross, by category
25 Loans secured by real estate
26 Construction and land development
27
Farmland
28
1-4 family residential properties
29
Revolving, open-end loans, and extended under lines of credit
30
All other loans
31
Multifamily (5 or more) residential properties
32
Nonfarm nonresidential properties
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
Loans to depository institutions
Loans to finance agricultural production and other loans to farmers
Commercial and industrial loans
Acceptances of other banks
Loans to individuals for household, family, and other personal expenditures
(includes purchased paper)
Credit cards and related plans
Other (includes single payment installment)
Obligations (other than securities) of states and political subdivisions in the United States
Taxable
Tax-exempt
All other loans
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets
74 Total nontransaction accounts
75
Individuals, partnerships, and corporations
76
U.S. government
77
States and political subdivisions in the United States
78
Commercial banks in the United States
79 Other depository institutions in the United States
80
All other
Commercial Banks
All
4.22—Continued
Members
Nonmembers
Total
Item
Total
81
82
83
84
85
86
87
88
89
204,198
25,416
15,134
18,803
56,419
14,271
930
25,142
99,951
146,199
21,713
12,666
13,279
43,710
10,841
865
23,240
74,877
58,000
3,702
2,468
5,524
12,709
3,430
66
1,902
25,074
36,084
10,078
15,003
2,087
22,496
1,390
560
4,683
17,450
221,881
155,249
122,649
32,600
66,632
26,735
11,324
2,852
955
746
1,324
90
3,192
5,415
25,386
11,004
2,733
920
626
1,309
90
3,027
5,264
15,350
4,964
2,388
696
274
536
90
1,952
4,097
10,035
6,040
345
224
352
774
0
1,075
1,168
1,350
321
119
35
120
15
0
165
151
136,917
70,104
43,038
8,499
98,112
51,432
29,977
3,248
81,204
43,991
25,747
2,783
16,908
7,441
4,230
465
38,805
18,672
13,060
5,251
34,539
26,729
22,964
3,765
7,809
388,039
207,565
723,952
322,511
35,306
214,426
1,895,351
293,822
149,867
481,416
221,310
28,336
148,150
1,324,743
242,456
112,309
406,008
189,063
17,375
124,136
1,092,990
51,366
37,559
75,408
32,246
10,961
24,014
231,753
94,216
57,698
242,537
101,201
6,970
66,276
570,608
1,847,960
1,358,776
1,115,585
243,191
489,184
214,398
147,753
123,842
23,911
66,645
380,914
200,394
330,237
761,504
289,003
144,343
228,487
514,023
237,401
108,163
195,097
427,197
51,603
36,180
33,390
86,826
91,911
56,051
101,750
247,482
12,224
90 Total equity capital 9
State
240,283
35,494
30,137
20,889
78,915
15,661
1,490
29,825
117,400
Federal funds purchased and securities sold under agreements to repurchase
Federal funds purchased
Securities sold under agreements to repurchase
Demand notes issued to the U.S. Treasury
Other borrowed money
Banks liability on acceptances executed and outstanding
Notes and debentures subordinated to deposits
Net due to own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining liabilities
National
4,953
3,959
994
7,271
MEMO
91 Assets held in trading accounts
92
U.S. Treasury securities
93
U.S. government agency corporation obligations
94
Securities issued by states and political subdivisions in the United States
95
Other bonds, notes, and debentures
%
Certificates of deposit
97
Commercial paper
98
Bankers acceptances
99
Other
100 Total individual retirement accounts (IRA) and Keogh plan accounts
101 Total brokered deposits
102 Total brokered retail deposits
103 Issued in denominations of $100,000 or less
104
Issued in denominations greater than $100,000 and participated out by the broker
in shares of $100,000 or less
105
106
107
108
109
110
111
Savings deposits
Money market deposit accounts (MMDAs)
Other savings deposits
Total time deposits of less than $100,000
Time certificates of deposit of $100,000 or more
Open-account time deposits of $100,000 or more
All NOW accounts (including Super NOW)
Total time and savings deposits
Quarterly averages
112 Total loans
113 Transaction accounts (NOW accounts, ATS accounts, and telephone and preauthorized
transfer accounts)
114
115
116
117
Nontransaction accounts
Money market deposit accounts (MMDAs)
Other savings deposits
Time certificates of deposit of $100,000 or more
All other time deposits
118 Number of banks
1. Effective Mar. 31,1984, the report of condition was substantially revised for
commercial banks. Some of the changes are as follows: (1) Previously, banks with
international banking facilities (IBFs) that had no other foreign offices were
considered domestic reporters. Beginning with the Mar. 31, 1984 call report these
banks are considered foreign and domestic reporters and must file the foreign and
domestic report of condition; (2) banks with assets greater than $1 billion have
additional items reported; (3) the domestic office detail for banks with foreign
offices has been reduced considerably; and (4) banks with assets under $25 million
have been excused from reporting certain detail items.
2. The " n . a . " for some of the items is used to indicate the lesser detail available
from banks without foreign offices, the inapplicability of certain items to banks
that have only domestic offices and/or the absence of detail on a fully consolidated
basis for banks with foreign offices.
3. All transactions between domestic and foreign offices of a bank are reported
in "net due from" and "net due to." All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Since these
intraoffice 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.
4. Foreign offices include branches in foreign countries, Puerto Rico, and in
U.S. territories and possessions; subsidiaries in foreign countries; all offices of
Edge act and agreement corporations wherever located and IBFs.
5. The 'over 100' column refers to those respondents whose assets, as of June
30 of the previous calendar year, were equal to or exceeded $100 million. (These
respondents file the FFIEC 032 or FFIEC 033 call report.) The 'under 100' column
refers to those respondents whose assets, as of June 30 of the previous calendar
year, were less than $100 million. (These respondents filed the FFIEC 034 call
report.)
6. Since the domestic portion of allowances for loan and lease losses and
allocated transfer risk reserve are not reported for banks with foreign offices, the
components of total assets (domestic) will not add to the actual total (domestic).
7. Since the foreign portion of demand notes issued to the U.S. Treasury is not
reported for banks with foreign offices, the components of total liabilities (foreign)
will not add to the actual total (foreign).
8. The definition of 'all other' varies by report form and therefore by column in
this table. See the instructions for more detail.
9. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
10. Only the domestic portion of federal funds sold and securities purchased
under agreements to resell are reported here, therefore, the components will not
add to totals for this item.
11. "Acceptances of other banks" is not reported by domestic respondents less
than $300 million in total assets, therefore the components will not add to totals for
this item.
12. Only the domestic portion of federal funds purchased and securities sold
are reported here, therefore the components will not add to totals for this item.
13. Components of assets held in trading accounts are only reported for banks
with total assets of $1 billion or more; therefore the components will not add to the
totals for this item.
A78
Special Tables • August 1991
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 4-8, 19911
A. Commercial and Industrial Loans
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity2
Days
Loan rate (percent)
Weighted
average
effective3
Standard
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
ALL BANKS
1 Overnight6
9,719,619
6,809
2 One month and under (excluding
overnight)
3 Fixed rate
4 Floating rate
8,563,772
6,729,844
1,833,933
846
1,116
448
20
5 Over one month and under a year .
6 Fixed rate
7 Floating rate
9,836,975
3,341,492
6,495,483
131
111
145
164
130
8 Demand7
9 Fixed rate
10 Floating rate
16,364,334
2,385,222
13,979,112
240
690
224
11 Total short term
44,484,699
287
12
13
14
15
16
17
18
Fixed rate (thousands of dollars) . .
1-99
100-499
500-999
1000-4999
5000-9999
10000 and over
22,176,171
477,022
483,065
429,218
3,734,091
4,537,908
12,514,867
540
14
202
687
2,367
6,514
18,969
19
20
21
22
23
24
25
Floating rate (thousands of dollars)
1-99
100-499
500-999
1000-4999
5000-9999
10000 and over,
22,308,528
2,106,094
3,467,629
1.881.575
5,394,634
2.648.576
6,810,020
200
24
201
666
1,984
6,719
21,625
147
156
163
185
154
158
7.19
9.6
68.1
9.6
8.06
7.89
8.69
30.0
27.0
40.7
87.1
84.6
96.3
15.1
15.5
13.9
9.00
8.42
9.29
50.4
38.6
56.5
67.5
87.6
9.03
7.84
9.23
62.4
30.4
67.9
74.1
86.8
72.0
6.9
11.5
6.1
64
8.43
42.0
76.8
10.1
29
128
120
54
39
38
17
7.66
11.29
21.5
72.0
66.7
38.4
33.0
22.9
13.3
75.0
29.4
55.5
81.2
78.8
78.2
75.0
12.1
.7
12.7
7.0
10.3
8.3
14.6
62.3
79.9
76.4
68.4
65.8
46.3
51.5
78.5
78.3
84.1
84.9
87.5
92.2
61.5
8.2
3.8
6.3
9.7
10.3
19.2
4.1
20
21
182
110
10.20
8.19
7.87
7.74
7.31
9.20
10.68
10.20
9.97
9.51
9.15
7.80
11.7
13.0
11.0
Months
26 Total long term
6,115,322
218
9.34
66.5
73.7
13.6
27 Fixed rate (thousands of dollars) . .
28 1-99
29 100-499
30 500-999
31 1000 and over
1,335,873
187,266
99,221
46,969
1,002,417
116
18
182
676
5,074
8.66
11.73
10.32
9.49
7.88
47.6
84.8
85.7
68.7
35.9
79.1
20.9
47.4
52.5
94.4
9.2
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1000 and over
4,779,449
309,852
701,167
417,942
3,350,489
289
27
213
675
3,395
9.53
71.8
85.4
86.2
73.9
67.2
72.1
47.7
55.3
11.12
10.33
9.92
9.16
61.8
79.2
.1
1.5
7.0
11.8
14.8
1.6
6.0
9.9
18.3
Loan rate (percent)
Days
Effective3
Nominal8
LOANS MADE BELOW PRIME 1 0
37 Overnight6
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand 7
9,570,037
9,290
7.15
6.90
9.7
68.0
9.7
7,226,980
4,796,629
6,311,121
2,799
597
2,142
19
148
7.63
7.57
7.26
7.37
7.33
7.09
21.7
26.4
51.1
87.0
83.6
57.3
13.2
15.2
5.8
41 Total short term
27,904,768
1,913
40
7.37
7.14
25.0
42 Fixed rate
43 Floating rate
20,249,255
7,655,513
2,363
1,271
24
123
7.39
7.33
7.15
7.12
17.6
44.7
10.7
76.0
65.7
12.2
6.6
Months
44 Total long term
2,441,163
45 Fixed rate
46 Floating rate . .
943,260
1,497,903
For notes see end of table.
47
617
926
41.5
7.68
7.66
7.70
7.51
7.46
78.5
9.7
31.7
47.7
92.1
70.0
12.4
8.0
Financial Markets
4.23—Continued
A.—Continued
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
1 Overnight6
7,841,126
9,682
2 One month and under (excluding
overnight)
3 Fixed rate
4 Floating rate
6,568,726
5,004,424
1,564,301
3,489
4,625
1,954
5 Over one month and under a year.
6 Fixed rate
7 Floating rate
5,367,345
2,195,119
3,172,226
747
2,373
506
8 Demand 7
9 Fixed rate
10 Floating rate
10,426,673
1,499,928
8,926,745
356
1,217
318
11 Total short term
30,206,869
772
12
13
14
15
16
17
18
Fixed rate (thousands of dollars) . .
1-99
100-499
500-999
1000-4999
5000-9999
10000 and over
16,543,5%
27,532
110,241
207,425
2,713,765
3,331,6%
10,152,937
4,085
25
224
666
2,400
6,570
19,452
19
20
21
22
23
24
25
Floating rate (thousands of dollars)
1-99
100-499
500-999
1000-4999
5000-9999
10000 and over
13,663,272
649,585
1,401,232
798,801
2,856,275
1,957,660
5,999,719
389
26
210
675
2,068
6,720
22,950
Weighted
average
maturity2
Characteristic
Days
Loan rate (percent)
Weighted
average
effective 3
Standard
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
LARGE BANKS
7.24
9.6
60.6
10.3
20
20
21
7.%
7.83
8.40
30.0
27.0
40.7
85.8
82.0
97.6
15.0
15.3
.13.8
146
8.28
7.85
8.58
50.4
38.6
56.5
86.6
78.7
92.1
10.1
8.77
7.70
62.4
30.4
67.9
64.6
8.%
61.7
6.9
14.6
5.6
47
8.11
42.0
72.1
10.1
24
111
62
56
39
38
15
7.54
10.24
9.04
8.39
7.90
7.80
7.32
21.5
72.0
66.7
38.4
33.0
22.9
13.3
71.4
46.0
72.2
77.3
75.0
74.1
69.5
12.5
1.5
1.7
7.9
8.6
8.2
15.2
119
160
146
157
114
131
105
8.80
10.24
10.00
9.75
9.23
9.09
7.95
62.3
79.9
76.4
68.4
65.8
46.3
51.5
72.8
73.4
83.5
87.4
84.3
91.6
56.7
7.2
.7
3.3
7.4
9.9
15.9
4.6
116
167
81.8
12.5
8.4
Months
4,143,457
784
8.94
66.5
77.1
9.6
27 Fixed rate (thousands of dollars)..
28 1-99
29 100-499
30 500-999
31 1000 and over
764,482
5,628
18,995
15,636
724,223
1,703
24
224
678
7,106
7.84
10.87
9.73
9.05
7.74
47.6
84.8
85.7
68.7
35.9
93.2
27.8
70.4
88.6
94.4
11.8
.0
.0
12.5
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1000 and over
3,378,975
75,709
337,404
305,015
2,660,847
33
234
689
4,163
9.18
10.46
9.94
9.88
8.97
71.8
85.4
86.2
73.9
67.2
73.5
44.5
49.6
57.4
79.2
9.1
3.5
7.1
6.6
9.7
26 Total long term
.0
Loan rate (percent)
Days
Effective 3
Nominal8
7.19
6.94
8.1
7.65
7.44
7.17
7.39
7.22
7.00
22.9
25.0
57.8
LOANS M A D E B E L O W P R I M E 1 0
37 Overnight6
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand7
7,699,584
9,905
5,721,803
3,5%,049
4,546,452
5,207
3,872
4,439
20
132
41 Total short term
21,563,888
5,632
35
7.35
7.12
42 Fixed rate
43 Floating rate
15,536,155
6,027,733
5,910
5,022
22
103
7.39
7.25
7.15
7.04
10.5
84.9
84.6
42.2
13.6
10.9
5.4
25.3
67.1
10.3
15.6
50.54
70.7
57.8
12.7
4.2
Months
44 Total long term
1,993,929
2,947
45 Fixed rate
46 Floating rate . .
642,751
1,351,178
4,128
2,594
For notes see end of table.
47
7.53
7.34
39.0
81.2
10.0
7.42
7.58
7.33
7.34
27.2
44.6
95.4
74.4
14.1
8.1
A79
A78
Special Tables • August 1991
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 4-8, 1991
A. Commercial and Industrial Loans—Continued
Characteristic
Amount of
loans
(thousands
of dollars)
Average
size
(thousands
of dollars)
Weighted
average
maturity 2
Days
Loan rate (percent)
Weighted
average
effective 3
Standard
Loans
secured
by
collateral
(percent)
Continued
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
OTHER BANKS
1 Overnight 6
1,875,493
3,039
2 One month and under (excluding
overnight)
3
Fixed rate
4
Floating rate
1,995,046
1,725,414
269,632
242
349
82
5 Over one month and under a year .
6
Fixed rate
7
Floating rate
4,469,630
1,146,373
3,323,257
66
39
86
5,937,661
885,295
5,052,367
152
398
147
8 Demand 7
9
Fixed rate
10
Floating rate
6.97
16.3
19
19
23
8.37
8.05
10.37
32.3
25.4
76.6
91.3
91.8
88.3
15.6
15.8
14.2
186
157
196
9.86
9.51
9.98
62.0
57.8
63.5
73.8
46.1
83.4
13.7
14.3
13.5
9.47
8.09
9.71
65.9
48.7
69.0
90.9
95.4
90.2
6.9
6.3
7.0
14,277,830
123
105
9.11
53.5
86.7
10.2
12 Fixed rate (thousands of dollars) . .
13 1-99
14 100-499
15 500-999
16 1000-4999
17 5000-9999
18 10000 and over
5,632,575
449,490
372,823
221,793
1,020,326
1,206,212
2,361,930
152
13
196
708
2,286
6,367
17,141
45
128
133
52
38
40
22
8.00
11.36
10.54
8.00
7.81
7.58
7.25
32.6
73.4
73.8
43.3
46.7
32.5
11.3
85.6
28.4
50.6
84.8
89.0
89.5
98.5
11.0
19 Floating rate (thousands of dollars)
20 1-99
21 100-499
22 500-999
23 1000-4999
24 5000-9999
25 10000 and over
8,645,255
1,456,509
2,066,397
1,082,774
2,538,359
690,916
810,301
113
23
196
660
1,897
6,717
15,151
183
155
170
201
196
249
160
9.83
10.87
10.34
10.14
9.84
9.33
6.69
67.1
79.5
78.7
73.4
74.7
36.7
87.5
80.5
84.6
83.0
91.1
93.6
97.2
9.7
5.1
8.4
11.3
10.7
28.8
.0
11 Total short term
.7
16.8
6.1
14.9
8.5
12.0
Months
1,971,865
87
10.18
.19
79.0
66.4
22.0
27 Fixed rate (thousands of dollars) . .
28 1-99
29 100-499
30 500-999
31 1000 and over
571,391
181,638
80,226
31,332
278,194
52
17
175
675
2,909
9.75
11.76
10.46
9.71
8.24
.35
63.1
85.1
89.6
71.8
40.1
60.3
20.7
42.0
34.4
94.3
5.8
2.8
10.5
9.9
32 Floating rate (thousands of dollars)
33 1-99
34 100-499
35 500-999
36 1000 and over
1,400,474
234,143
363,763
112,927
689,642
120
25
196
639
1,983
10.35
11.33
10.69
10.03
9.89
.15
.14
.14
85.5
86.0
89.9
62.9
86.6
68.9
48.8
60.5
73.5
79.5
28.6
.9
6.9
18.9
51.1
26 Total long term
.12
.25
.72
.35
.22
.25
.2
Loan rate (percent)
Days
Effective 3
Nominal 9
LOANS MADE BELOW P R I M E "
37 Overnight 6
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand"
1,870,454
7,397
6.73
16.2
99.3
6.7
1,505,178
1,200,580
1,764,669
1,015
169
918
18
197
7.56
7.95
7.49
7.30
7.68
7.31
17.0
30.4
33.8
95.2
80.5
96.2
11.4
28.5
6.7
41 Total short term
6,340,879
589
58
7.44
7.21
24.0
93.9
11.9
42 Fixed rate
43 Floating rate
4,713,100
1,627,780
793
338
33
206
7.37
7.63
7.14
7.41
24.2
23.2
93.6
94.9
15.2
8.38
8.11
52.8
66.7
8.9
8.17
8.79
7.91
8.51
41.2
76.4
85.0
29.3
9.1
8.4
10.8
Months
44 Total long term
447,234
181
45 Fixed rate
46 Floating rate . .
300,509
146,725
219
134
F o r notes see end of table.
45
Financial Markets
*Fewer than 10 sample loans.
1. The survey of terms of bank lending to business collects data on gross loan
extensions made during the first full business week in the mid-month of each
quarter by a sample of 340 commercial banks of all sizes. The sample data are used
to estimate the lending terms at all insured commercial banks during that week.
The estimated terms of bank lending are not intended for use in collecting the
terms of loans extended over the entire quarter or residing in the portfolios of
those banks.
As of Sept. 30, 1990, assets of most of the large banks were at least $7.0 billion.
For all insured banks total assets averaged $275 million.
2. Average maturities are weighted by loan size and exclude demand loans.
3. Effective (compounded) annual interest rates are calculated from the stated
rate and other terms of the loan and weighted by loan size.
4. The chances are about two out of three that the average rate shown would
differ by less than this amount from the average rate that would be found by a
A81
complete survey of lending at all banks.
5. The most common base rate is that rate used to price the largest dollar
volume of loans. Base pricing rates include the prime rate (sometimes referred to
as a bank's "basic" or "reference" rate); the federal funds rate; domestic money
market rates other than the federal funds rate; foreign money market rates; and
other base rates not included in the foregoing classifications.
6. Overnight loans are loans that mature on the following business day.
7. Demand loans have no stated date of maturity.
8. Nominal (not compounded) annual interest rates are calculated from survey
data on the stated rate and other terms of the loan and weighted by loan size.
9. The prime rate reported by each bank is weighted by the volume of loans
extended and then averaged.
10. The proportion of loans made at rates below prime may vary substantially
from the proportion of such loans outstanding in banks' portfolios.
All
Special Tables • August 1991
Pro forma balance sheet for priced services of the Federal Reserve System1
4.31
Millions of dollars
Mar. 31, 1991
Item
Short-term assets2
Imputed reserve requirement on clearing balances
Investment in marketable securities
Receivables
Materials and supplies
Prepaid expenses
Items in process of collection
317.3
2,326.7
59.8
6.1
35.0
2,864.4
328.0
158.6
16.9
75^9
479.0
5,153.6
3.058.6
2.449.7
101.0
2,114.3
2,464.0
96.3
5,609.3
1.2
159.7
Total long-term liabilities
Total liabilities
Equity
Total liabilities and equity4
1. Details may not sum to totals because of rounding.
2. The imputed reserve requirement on clearing balances and investment in
marketable securities reflect the Federal Reserve's treatment of clearing balances
maintained on deposit with Reserve Banks by depository institutions. For
presentation of the balance sheet and the income statement, clearing balances are
reported in a manner comparable to the way corresp9ndent banks report
compensating balances held with them by respondent institutions. That is,
respondent balances held with a correspondent are subject to a reserve requirement established by the Federal Reserve. This reserve requirement must be
satisfied with either vault cash or with nonearning balances maintained at a
Reserve Bank. Following this model, clearing balances maintained with Reserve
Banks for priced service purposes are subjected to imputed reserve requirements.
Therefore, a portion of the clearing balances held with the Federal Reserve is
classified on the asset side of the balance sheet as required reserves and is
reflected in a manner similar to vault cash and due from bank balances normally
shown on a correspondent bank's balance sheet. The remainder of clearing
balances is assumed to be available for investment. For these purposes, the
Federal Reserve assumes that all such balances are invested in three-month
Treasury bills.
The account "items in the process of collection" (C1PC) represents the gross
amount of Federal Reserve CIPC as of the balance sheet date, stated on a basis
comparable with a commercial bank. Adjustments have been made for intraSystem items that would otherwise be double-counted on a consolidated Federal
Reserve balance sheet; items associated with nonpriced items, such as items
291.7
125.5
6.0
55.8
579.4
Total short-term liabilities
Long-term liabilities
Obligations under capital leases
Long-term debt
4,674.6
6,188.7
Total long-term assets
Total assets
Short-term liabilities
Clearing balances and balances arising from early credit
of uncollected items
Deferred availability items
Short-term debt
204.7
1,501.3
61.9
6.5
28.0
2,872.3
5,609.3
Total short-term assets
Long-term assets3
Premises
Furniture and equipment
Leases and leasehold improvements
Prepaid pension costs
Mar. 30, 1989
4,674.6
1.2
134.2
160.9
135.4
5,770.3
4,810.0
418.5
343.6
6,188.7
5,153.6
collected for government agencies; and items associated with providing fixed
availability or credit prior to receipt and processing of items. The cost base for
providing services that must be recovered under the Monetary Control Act
includes the cost of float (the difference between the value of gross CIPC and the
value of deferred availability items) incurred by the Federal Reserve during the
period, valued at the federal funds rate. The amount of float, or net CIPC,
represents the portion of gross CIPC that involves a financing cost.
3. Long-term assets on the balance sheet have been allocated to priced services
with the direct determination method, which uses the Federal Reserve's Planning
and Control System (PACS) to ascertain directly the value of assets used solely in
priced services operations and to apportion the value of jointly used assets
between priced services and nonpriced services. Also, long-term assets include an
estimate of the assets of the Board of Governors directly involved in the
development of priced services.
Long-term assets include amounts for capital leases and leasehold improvements and for prepaid pension costs associated with priced services. Effective
January 1, 1987, the Federal Reserve Banks implemented Financial Accounting
Standards Board Statement No. 87, Employer's Accounting for Pensions.
4. A matched-book capital structure has been used for those assets that are not
"self-financing" in determining liability and equity amounts. Short-term assets
are financed with short-term debt. Long-term assets are financed with long-term
debt and equity in a proportion equal to the ratio of long-term debt to equity for
the bank holding companies used in the model for the private sector adjustment
factor (PSAF).
Bank Reported Data
A83
4.32 Pro forma income statement for priced services of the Federal Reserve System1
Millions of dollars
Quarters ending Mar. 30
Item
1991
1990
Income services provided to depository institutions2
181.4
181.9
Production expenses 3
149.7
145.8
31.6
36.1
Income from operations
Imputed costs 4
Interest on float
Interest on debt
Sales taxes
FDIC insurance
6.1
4.8
2.3
2.0
Income from operations after imputed costs
15.2
16.4
Other income and expenses 5
Investment income
Earnings credits
41.5
Income before income taxes
35.1
Imputed income taxes
6
Net income
MEMO
Targeted return on equity 6
1. The income statement reflects income and expenses for priced services.
Included in these amounts are the imputed costs of float, imputed financing costs,
and the income related to clearing balances.
Details may not add to totals because of rounding.
2. Income represents charges to depository institutions for priced services.
This income is realized through one of two methods: direct charges to an
institution's account or charges against accumulated earnings credits. Income
includes charges for per-item fees, fixed fees, package fees, explicitly priced float,
account maintenance fees, shipping and insurance fees, and surcharges.
3. Production expenses include direct, indirect, and other general administrative expenses of the Federal Reserve Banks for providing priced services. Also
included are the expenses of staff members of the Board of Governors working
directly on the development of priced services, which amounted to $0.5 million
and $0.4 million in the first quarter for 1991 and 1990, respectively.
4. Imputed float costs represent the value of float to be recovered, either
explicitly or through per-item fees, during the period. Float costs include those for
checks, book-entry securities, noncash collection, ACH, and wire transfers.
The following table depicts the daily average recovery of float by the Federal
Reserve Banks for the first quarter of 1991. In the table, unrecovered float
includes that generated by services to government agencies or by other central
bank services.
Float recovered through income on clearing balances represents increased
investable clearing balances as a result of reducing imputed reserve requirements
through the use of a deduction for float for cash items in process of collection
when calculating the reserve requirement. This income then reduces the float
required to be recovered through other means.
As-of adjustments and direct charges refer to midweek closing float and
interterritory check float, which may be recovered from depositing institutions
through adjustments to the institution's reserve or clearing balance or by valuing
the float at the federal funds rate and billing the institution directly.
8.4
4.2
1.8
1.2
15.6
20.5
37.6
6.4
22.8
32.9
4.8
25.2
7.0
7.0
15.8
18.2
8.1
8.4
Float recovered through per-item fees is valued at the federal funds rate and has
been added to the cost base subject to recovery in the first quarter of 1991.
Total
float
814.5
Unrecovered
float
42.5
Float subject to recovery
772.0
Sources of float recovery
Income on clearing balances
92.5
As of adjustments
399.1
Direct charges
155.9
Per-item fees
124.5
Also included in imputed costs is the interest on debt assumed necessary to
finance priced-service assets and the sales taxes and FDIC insurance assessment
that the Federal Reserve would have paid had it been a private-sector firm.
Because of a change in the methodology for imputing PSAF costs approved in
1989, FDIC insurance is now calculated on the basis of actual clearing balances
and credits that are deferred to depository institutions. Previously, the assessment
was calculated on the basis of available funds.
5. Other income and expenses consist of income on clearing balances and the
cost of earnings credits granted to depository institutions on their clearing
balances. Income on clearing balances represents the average coupon-equivalent
yield on three-month Treasury bills applied to the total clearing balance maintained, adjusted for the effect of reserve requirements on clearing balances.
Expenses for earnings credits are derived by applying the average federal funds
rate to the required portion of the clearing balances, adjusted for the net effect of
reserve requirements on clearing balances.
6. Imputed income taxes are calculated at the effective tax rate derived from a
model consisting of the 50 largest bank holding companies. The targeted return on
equity represents the after-tax rate of return on equity that the Federal Reserve
would have earned had it been a private business firm, based on the bank holding
company model.
A84
Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN,
Chairman
WAYNE D . ANGELL
EDWARD W . KELLEY, JR.
DIVISION OF INTERNATIONAL FINANCE
OFFICE OF BOARD MEMBERS
JOSEPH R . COYNE, Assistant
DONALD J. W I N N , Assistant
to the
to the
Board
Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
LEGAL DIVISION
J. VIRGIL MATTINGLY, JR., General
Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
RICKI R. TIGERT, Associate General Counsel
KATHLEEN M. O'DAY, Assistant General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OFFICE OF THE SECRETARY
WILLIAM W . WILES,
Secretary
JENNIFER J. JOHNSON, Associate
BARBARA R . LOWREY, Associate
Secretary
Secretary
GRIFFITH L . GARWOOD,
Director
GLENN E . LONEY, Assistant
Director
ELLEN MALAND, Assistant
Director
DOLORES S . SMITH, Assistant
Director
Director
WILLIAM A. RYBACK, Deputy Associate Director
STEPHEN C. SCHEMERING, Deputy Associate Director
RICHARD SPILLENKOTHEN, Deputy Associate Director
Director
JOE M. CLEAVER, Assistant Director
Director
JAMES I. GARNER, Assistant
Director
JAMES D . GOETZINGER, Assistant
Director
MICHAEL G . MARTINSON, Assistant
Director
ROBERT S . PLOTKIN, Assistant
SIDNEY M .
Director
SussAN, Assistant Director
LAURA M. HOMER, Securities Credit Officer
MICHAEL J. PRELL,
Director
EDWARD C . ETTIN, Deputy
Director
THOMAS D . SIMPSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
DAVID J . STOCKTON, Associate
Director
MARTHA BETHEA, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
DONALD L . KOHN,
Director
DAVID E . LINDSEY, Deputy
Director
BRIAN F. MADIGAN, Assistant
Director
RICHARD D . PORTER, Assistant
Director
Director
ROGER T. COLE, Assistant
DIVISION OF RESEARCH AND STATISTICS
DIVISION OF MONETARY AFFAIRS
DON E. KLINE, Associate Director
HERBERT A . BIERN, Assistant
ROBERT F. GEMMILL, Staff
Adviser
DONALD B . ADAMS, Assistant
Director
DALE W . HENDERSON, Assistant
Director
PETER HOOPER I I I , Assistant
Director
KAREN H . JOHNSON, Assistant
Director
RALPH W . SMITH, JR. , Assistant
Director
(Administration)
DIVISION OF BANKING
SUPERVISION AND REGULATION
FREDERICK M . STRUBLE, Associate
Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
DAVID H. HOWARD, Deputy Associate Director
MYRON L . KWAST, Assistant
Director
PATRICK M . PARKINSON, Assistant
Director
MARTHA S . SCANLON, Assistant
Director
JOYCE K . ZICKLER, Assistant
Director
LEVON H . GARABEDIAN, Assistant
Director
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
WILLIAM TAYLOR, Staff
EDWIN M . TRUMAN, Staff
NORMAND R.V. BERNARD, Special Assistant to the Board
OFFICE OF THE INSPECTOR GENERAL
BRENT L . BOWEN, Inspector
General
BARRY R. SNYDER, Assistant Inspector General
A85
JOHN P. LAWARE
DAVID W . MULLINS, JR.
OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT
OFFICE OF STAFF DIRECTOR FOR
FEDERAL RESERVE BANK ACTIVITIES
S . DAVID FROST, Staff
Director
WILLIAM SCHNEIDER, Special
Assignment:
THEODORE E . ALLISON, Staff
Project Director, National Information Center
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Officer
DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
DIVISION OF HUMAN RESOURCES
MANAGEMENT
DAVID L . SHANNON,
Director
JOHN R . WEIS, Associate
Director
ANTHONY V. DIGIOIA, Assistant
Director
JOSEPH H . HAYES, JR. , Assistant
Director
FRED HOROWITZ, Assistant
Director
OFFICE OF THE CONTROLLER
GEORGE E . LIVINGSTON,
Controller
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
DIVISION OF SUPPORT SERVICES
ROBERT E . FRAZIER,
Director
GEORGE M . LOPEZ, Assistant
DAVID L . WILLIAMS, Assistant
Director
Director
OFFICE OF THE DIRECTOR FOR
INFORMATION RESOURCES MANAGEMENT
STEPHEN R . MALPHRUS,
Director
MARIANNE M . EMERSON, Assistant
EDWARD T. MULRENIN, Assistant
Director
Director
DIVISION OF HARDWARE AND SOFTWARE
SYSTEMS
BRUCE M . BEARDSLEY,
Director
DAY W. RADEBAUGH, JR. , Assistant Director
ELIZABETH B . RIGGS, Assistant
Director
DIVISION OF APPUCATIONS DEVELOPMENT AND
STATISTICAL SERVICES
WILLIAM R . JONES,
Director
ROBERT J . ZEMEL, Associate
Director
P o KYUNG KIM, Assistant Director
RAYMOND H . MASSEY, Assistant
RICHARD C . STEVENS, Assistant
Director
Director
CLYDE H . FARNSWORTH, JR.,
Director
Director
DAVID L. ROBINSON, Deputy Director (Finance and
Control)
BRUCE J. SUMMERS, Deputy Director (Payments and
Automation)
CHARLES W . BENNETT, Assistant
Director
JACK DENNIS, JR. , Assistant
Director
EARL G . HAMILTON, Assistant
Director
JEFFREY C . MARQUARDT, Assistant
Director
JOHN H . PARRISH, Assistant
Director
LOUISE L . ROSEMAN, Assistant
Director
FLORENCE M . YOUNG, Assistant
Director
A86
Federal Reserve Bulletin • August 1991
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET COMMITTEE
MEMBERS
ALAN GREENSPAN,
Chairman
WAYNE D . ANGELL
ROBERT P. BLACK
ROBERT P. FORRESTAL
E . GERALD CORRIGAN, Vice
SILAS KEEHN
EDWARD W . KELLEY, JR.
Chairman
JOHN P. LAWARE
DAVID W . MULLINS, JR.
ROBERT T. PARRY
ALTERNATE MEMBERS
ROGER GUFFEY
W . LEE HOSKINS
THOMAS C . MELZER
JAMES H . OLTMAN
RICHARD F. SYRON
STAFF
DONALD L . KOHN, Secretary and
Economist
NORMAND R . V . BERNARD, Deputy
Secretary
JOSEPH R . COYNE, Assistant
Secretary
GARY P. GDLLUM, Assistant
Secretary
J . VIRGIL MATTINGLY, JR., General
Counsel
ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J . PRELL, Economist
EDWIN M . TRUMAN,
Economist
JACK H . BEEBE, Associate
Economist
J. ALFRED BROADDUS, JR., Associate
Economist
RICHARD G . DAVIS, Associate
Economist
DAVID E . LINDSEY, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
KARL A . SCHELD, Associate
Economist
CHARLES J . SIEGMAN, Associate
Economist
THOMAS D . SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
SHEILA T. TSCHINKEL, Associate
Economist
PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account
SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account
FEDERAL ADVISORY
COUNCIL
PAUL HAZEN,
President
LLOYD P. JOHNSON, Vice
President
TERRENCE A. LARSEN, Third District
JOHN B. MCCOY, Fourth District
B. KENNETH WEST, Seventh District
DAN W. MITCHELL, Eighth District
LLOYD P. JOHNSON, Ninth District
JORDAN L. HAINES, Tenth District
EDWARD E . CRUTCHFIELD, Fifth District
RONALD G . STEINHART, E l e v e n t h District
E.B. Robinson, Jr., Sixth District
PAUL HAZEN, Twelfth District
IRA STEPANIAN, First District
CHARLES S . SANFORD, JR., S e c o n d District
HERBERT V. PROCHNOW,
WILLIAM J. KORSVIK, Associate
Secretary
Secretary
A87
CONSUMER ADVISORY COUNCIL
JAMES W. HEAD, Berkeley, California, Chairman
LINDA K. PAGE, Columbus, Ohio, Vice Chairman
VERONICA E . BARELA, D e n v e r , Colorado
GEORGE H . BRAASCH, Oakbrook, Illinois
TOYE L . BROWN, B o s t o n , Massachusetts
CLIFF E . COOK, T a c o m a , Washington
JULIA E . HILER, Marietta, G e o r g i a
HENRY JARAMILLO, B e l e n , N e w M e x i c o
BARBARA KAUFMAN, San F r a n c i s c o , California
KATHLEEN E . KEEST, B o s t o n , Massachusetts
R.B, (JOE) DEAN, JR., Columbia, South Carolina
COLLEEN D. HERNANDEZ, Kansas City, Missouri
DENNY D . DUMLER, D e n v e r , C o l o r a d o
WILLIAM C . DUNKELBERG, Philadelphia, P e n n s y l v a n i a
JAMES FLETCHER, C h i c a g o , Illinois
GEORGE C . GALSTER, Wooster, O h i o
E . THOMAS GARMAN, Blacksburg, Virginia
DONALD A . GLAS, Hutchinson, Minnesota
DEBORAH B . GOLDBERG, Washington, D . C .
MICHAEL M . GREENFIELD, St. Louis, M i s s o u r i
JOYCE HARRIS, M a d i s o n , W i s c o n s i n
MICHELLE S . MEIER, Washington, D . C .
BERNARD F. PARKER, JR. , Detroit, M i c h i g a n
OTIS PITTS, JR., M i a m i , Florida
VINCENT P. QUAYLE, Baltimore, Maryland
CLIFFORD N . ROSENTHAL, N e w York, N e w York
ALAN M . SILBERSTEIN, N e w York, N e w York
NANCY HARVEY STEORTS, D a l l a s , T e x a s
DAVID P. WARD, Chester, N e w Jersey
SANDRA L . WILLETT, B o s t o n , Massachusetts
THRIFT INSTITUTIONS ADVISORY
COUNCIL
MARION O. SANDLER, Oakland, California, President
LYNN W. HODGE, Greenwood, South Carolina, Vice President
DANIEL C . ARNOLD, H o u s t o n , T e x a s
JAMES L . BRYAN, Richardson, T e x a s
DAVID L . HATFIELD, K a l a m a z o o , M i c h i g a n
ELLIOT K . KNUTSON, Seattle, W a s h i n g t o n
JOHN WM. LAISLE, Oklahoma City, Oklahoma
RICHARD A. LARSON, West Bend, Wisconsin
PRESTON MARTIN, S a n F r a n c i s c o , California
RICHARD D . PARSONS, N e w York, N e w York
E D M O N D M . SHANAHAN, Chicago, Illinois
WOODBURY C . TITCOMB, Worcester, M a s s a c h u s e t t s
A88
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A89
Signature Rules: Regulation B
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158. THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE
PRODUCTS, by Mark J. Warshawsky with the assistance of
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Thomas F. Brady. November 1985. 25 pp.
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160. BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by
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161. A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,
1980-90, by Margaret Hastings Pickering. May 1991.
21pp.
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and Deborah Johnson. December 1985. 42 pp.
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ECONOMIC RECOVERY TAX ACT: SOME SIMULATION
RESULTS, by Flint Brayton and Peter B. Clark. December
1 9 8 5 . 17 pp.
1 4 9 . THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
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A. Rhoades. April 1986. 32 pp.
150. STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, b y John T.
Rose and John D. Wolken. May 1986. 13 pp.
151. RESPONSES TO DEREGULATION : RETAIL DEPOSIT PRICING
FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice
P. White, Paul F. O'Brien, and Mary M. McLaughlin.
January 1987. 30 pp.
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REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
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by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
155. THE FUNDING OF PRIVATE PENSION PLANS, b y Mark J.
Warshawsky. November 1987. 25 pp.
156. INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING
MARKETS, by James V. Houpt. May 1988. 47 pp.
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Limit of ten copies
Recent Developments in the Bankers Acceptance Market. 1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and U.S.
Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the 1983
and 1986 Surveys of Consumer Finances. 10/87.
Home Equity Lines of Credit. 6/88.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and in
the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial Banks.
7/90.
Recent Developments in Corporate Finance. 8/90.
U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90.
The Transmission Channels of Monetary Policy: How Have
They Changed? 12/90.
U.S. International Transactions in 1990. 5/91.
A90
Index to Statistical Tables
References are to pages A3-A83 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 19,20
Assets and liabilities (See also Foreigners)
Banks, by classes, 18-20, 72-77
Domestic finance companies, 35
Federal Reserve Banks, 10
Financial institutions, 25
Foreign banks, U.S. branches and agencies, 21
Automobiles
Consumer installment credit, 38, 39
Production, 48, 49
BANKERS acceptances, 9, 22, 23
Bankers balances, 18-20, 72, 74, 76. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 33
Rates, 23
Branch banks, 21, 56
Business activity, nonfinancial, 45
Business expenditures on new plant and equipment, 34
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 47
Capital accounts
Banks, by classes, 18, 73, 75, 77
Federal Reserve Banks, 10
Central banks, discount rates, 68
Certificates of deposit, 23
Commercial and industrial loans
Commercial banks, 16, 19, 72, 74, 76, 78-81
Weekly reporting banks, 19-21
Commercial banks
Assets and liabilities, 18-20, 78-81
Commercial and industrial loans, 16, 18, 19, 20, 21, 72, 74, 76
Consumer loans held, by type and terms, 38, 39, 81
Loans sold outright, 19
Nondeposit funds, 17
Number by classes, 73, 75, 77
Real estate mortgages held, by holder and property, 37
Terms of lending, 78-81
Time and savings deposits, 3
Commercial paper, 22, 23, 35
Condition statements (See Assets and liabilities)
Construction, 45, 50
Consumer installment credit, 38, 39
Consumer prices, 45, 47
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 34
Profits and their distribution, 34
Security issues, 33, 66
Cost of living (See Consumer prices)
Credit unions, 28, 38. (See also Thrift institutions)
Currency and coin, 18, 72, 74, 76
Currency in circulation, 4, 13
Customer credit, stock market, 24
DEBITS to deposit accounts, 14
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 18-21, 73, 75, 77
Demand deposits—Continued
Ownership by individuals, partnerships, and corporations, 21
Turnover, 15
Depository institutions
Reserve requirements, 8
Reserves and related items, 3, 4, 5,12
Deposits (See also specific types)
Banks, by classes, 3,18-20, 21, 73, 75, 77
Federal Reserve Banks, 4, 10
Turnover, 15
Discount rates at Reserve Banks and at foreign central banks and
foreign countries (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 34
EMPLOYMENT, 46
Eurodollars, 23
FARM mortgage loans, 37
Federal agency obligations, 4, 9,10, 11, 30, 31
Federal credit agencies, 32
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 29
Receipts and outlays, 27, 28
Treasuryfinancingof surplus, or deficit, 27
Treasury operating balance, 27
Federal Financing Bank, 27, 32
Federal funds, 6, 17, 19, 20,21,23, 27
Federal Home Loan Banks, 32
Federal Home Loan Mortgage Corporation, 32, 36, 37
Federal Housing Administration, 32, 36, 37
Federal Land Banks, 37
Federal National Mortgage Association, 32, 36, 37
Federal Reserve Banks
Condition statement, 10
Discount rates (See Interest rates)
U.S. government securities held, 4, 10, 11, 29
Federal Reserve credit, 4, 5, 10, 11
Federal Reserve notes, 10
Federal Reserve System
Balance sheet for priced services, 82
Condition statement for priced services, 83
Federal Savings and Loan Insurance Corporation insured
institutions, 25
Federally sponsored credit agencies, 32
Finance companies
Assets and liabilities, 35
Business credit, 35
Loans, 38, 39
Paper, 22, 23
Financial institutions
Loans to, 19,20,21
Selected assets and liabilities, 25
Float, 4, 83
Flow of funds, 40,42, 43, 44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21
Foreign currency operations, 10
Foreign deposits in U.S. banks, 4, 10, 19, 20
Foreign exchange rates, 69
A91
Foreign trade, 55
Foreigners
Claims on, 56, 58, 61, 62, 63, 65
Liabilities to, 20, 55, 56, 58, 59, 64, 66, 67
GOLD
Certificate account, 10
Stock, 4, 55
Government National Mortgage Association, 32, 36, 37
Gross national product, 52
HOUSING, new and existing units, 50
INCOME and expenses, Federal Reserve System, 82-83
Income, personal and national, 45, 52, 53
Industrial production, 45, 48
Installment loans, 38, 39
Insurance companies, 25, 29, 37
Interest rates
Bonds, 23
Commercial banks, 78-81
Consumer installment credit, 39
Federal Reserve Banks, 7
Foreign central banks and foreign countries, 68
Money and capital markets, 23
Mortgages, 36
Prime rate, 22
International capital transactions of United States, 54-68
International organizations, 58, 59, 61, 64, 65
Inventories, 52
Investment companies, issues and assets, 34
Investments (See also specific types)
Banks, by classes, 18, 19, 20, 21, 25
Commercial banks, 3,16,18-20, 37, 72
Federal Reserve Banks, 10, 11
Financial institutions, 25, 37
LABOR force, 46
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 18-20
Commercial banks, 3, 16, 18-20, 72, 74, 76
Federal Reserve Banks, 4, 5, 7, 10, 11
Federal Reserve System, 82-83
Financial institutions, 25, 37
Insured or guaranteed by United States, 36, 37
MANUFACTURING
Capacity utilization, 47
Production, 47,49
Margin requirements, 24
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 6
Reserve requirements, 8
Mining production, 49
Mobile homes shipped, 50
Monetary and credit aggregates, 3, 12
Money and capital market rates, 23
Money stock measures and components, 3,13
Mortgages (See Real estate loans)
Mutual funds, 34
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 28
National income, 52
OPEN market transactions, 9
PERSONAL income, 53
Prices
Consumer and producer, 45, 51
Stock market, 24
Prime rate, 22
Producer prices, 45, 51
Production, 45, 48
Profits, corporate, 34
REAL estate loans
Banks, by classes, 16, 19, 20, 37, 74
Financial institutions, 25
Terms, yields, and activity, 36
Type of holder and property mortgaged, 37
Repurchase agreements, 6, 17,19, 20, 21
Reserve requirements, 8
Reserves
Commercial banks, 18
Depository institutions, 3, 4, 5, 12
Federal Reserve Banks, 10
U.S. reserve assets, 55
Residential mortgage loans, 36
Retail credit and retail sales, 38, 39, 45
SAVING
Flow of funds, 40, 42, 43, 44
National income accounts, 52
Savings and loan associations, 25, 37, 38, 40. (See also Thrift
institutions)
Savings banks, 25, 37, 38
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 32
Foreign transactions, 66
New issues, 33
Prices, 24
Special drawing rights, 4, 10, 54, 55
State and local governments
Deposits, 19, 20
Holdings of U.S. government securities, 29
New security issues, 33
Ownership of securities issued by, 19, 20, 25
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 33
Prices, 24
Student Loan Marketing Association, 32
TAX receipts, federal, 28
Thrift institutions, 3. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 3,13, 17, 18, 19, 20, 21, 73, 75, 77
Trade, foreign, 55
Treasury cash, Treasury currency, 4
Treasury deposits, 4, 10, 27
Treasury operating balance, 27
UNEMPLOYMENT, 46
U.S. government balances
Commercial bank holdings, 18, 19,20
Treasury deposits at Reserve Banks, 4, 10, 27
U.S. government securities
Bank holdings, 18-20, 21, 29
Dealer transactions, positions, andfinancing,31
Federal Reserve Bank holdings, 4,10, 11, 29
Foreign and international holdings and transactions, 10, 29,
67
Open market transactions, 9
Outstanding, by type and holder, 25, 29
Rates, 23
U.S. international transactions, 54-68
Utilities, production, 49
VETERANS Administration, 36, 37
WEEKLY reporting banks, 19-21
Wholesale (producer) prices, 45, 51
YIELDS (See Interest rates)
A92
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106 Richard N. Cooper
Jerome H. Grossman
Richard F. Syron
Cathy E. Minehan
NEW YORK*
10045 Cyrus R. Vance
Ellen V. Futter
14240 Mary Ann Lambertsen
E. Gerald Corrigan
James H. Oltman
PHILADELPHIA
19105 Peter A. Benoliel
Jane G. Pepper
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101 JohnR. Miller
A. William Reynolds
45201 Kate Ireland
15230 Robert P. Bozzone
W. LeeHoskins
William H. Hendricks
Buffalo
Cincinnati
Pittsburgh
RICHMOND*
23219 Anne Marie Whittemore
Henry J. Faison
Baltimore
21203 John R. Hardesty, Jr.
Charlotte
28230 Anne M. Allen
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
CHICAGO*
Detroit
ST. LOUIS
Little Rock
Louisville
Memphis
MINNEAPOLIS
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
SAN FRANCISCO
Los Angeles
Portland
Salt Lake City
Seattle
Vice President
in charge of branch
James O. Aston
Robert P. Black
Jimmie R. Monhollon
30303 Larry L. Prince
Edwin A. Huston
35283 Roy D.Terry
32231 Hugh M. Brown
33152 Dorothy C. Weaver
37203 Shirley A. Zeitlin
70161 JoAnn Slay don
Robert P. Forrestal
Jack Guynn
60690 Charles S. McNeer
Richard G. Cline
48231 Phyllis E. Peters
Silas Keehn
Daniel M. Doyle
63166 H. Edwin Trusheim
Robert H. Quenon
72203 L. Dickson Flake
40232 Lois H. Gray
38101 Katherine H. Smythe
Gary H. Stern
Thomas E. Gainor
64198 Fred W. Lyons, Jr.
Burton A. Dole, Jr.
80217 Barbara B. Grogan
73125 Ernest L. Holloway
68102 Herman Cain
Roger Guffey
Henry R. Czerwinski
75222 Hugh G. Robinson
Leo E. Linbeck, Jr.
79999 W. Thomas Beard, HI
77252 Gilbert D. Gaedcke, Jr.
78295 Roger R. Hemminghaus
Robert D. McTeer, Jr.
Tony J. Salvaggio
94120 Robert F. Erburu
Carolyn S. Chambers
90051 Yvonne B. Burke
97208 William A. Hilliard
84125 D.N. Rose
98124 Judith Runstad
Robert T. Parry
Carl E. Powell
Ronald B. Duncan1
Albert D. Tinkelenberg1
John G. Stoides1
Thomas C. Melzer
James R. Bowen
55480 Delbert W. Johnson
Gerald A. Rauenhorst
59601 James E.Jenks
Charles A. Cerino1
Harold J. Swart1
Donald E. Nelson1
FredR. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso
Roby L. Sloan1
Karl W. Ashman
Howard Wells
Ray Laurence
John D. Johnson
Kent M.Scott
David J. France
Harold L. Shewmaker
Sammie C. Clay
Robert Smith, III1
Thomas H. Robertson
Thomas C. Warren2
Leslie R. Watters
Andrea P. Wolcott
Gerald R. Kelly1
•Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York
11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa
50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.
2. Executive Vice President.
A93
The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories
LEGEND
Boundaries of Federal Reserve Districts
®
Federal Reserve Bank Cities
Boundaries of Federal Reserve Branch
Territories
*
Federal Reserve Branch Cities
Federal Reserve Bank Facility
Q
Board of Governors of the Federal Reserve
System
Publications of Interest
FEDERAL
RESERVE
REGULATORY
SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations and related statutes,
interpretations, policy statements, rulings, and staff
opinions. For those with a more specialized interest in
the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary
policy, securities credit, consumer affairs, and the
payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each
contains citation indexes and a subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q, plus
related materials. For convenient reference, it also
contains the rules of the Depository Institutions Deregulation Committee.
The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
with all related statutes, Board interpretations, rul-
U.S.
MONETARY
POLICY
AND FINANCIAL
MARKETS
U.S. Monetary Policy and Financial Markets by AnnMarie Meulendyke offers an in-depth description of
the way monetary policy is developed by the Federal
Open Market Committee and the techniques employed
to implement policy at the Open Market Trading Desk.
Written from her perspective as a senior economist in
the Open Market Function at the Federal Reserve
Bank of New York, Ann-Marie Meulendyke describes
the tools and the setting of policy, including many of
the complexities that differentiate the process from
simpler textbook models. Included is an account of a
day at the Trading Desk, from morning informationgathering through daily decisionmaking and the execution of an open market operation.
The book also places monetary policy in a broader
ings, and staff opinions. Also included is the Board's
list of OTC margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, and BB, and
associated materials.
The Payment System Handbook deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation
CC, Regulation J, the Expedited Funds Availability
Act and related statutes, official Board commentary on
Regulation CC, and policy statements on risk reduction in the payment system.
For domestic subscribers, the annual rate is $200 for
the Federal Reserve Regulatory Service and $75 for
each Handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the Service and $90 for each Handbook. All
subscription requests must be accompanied by a check
or money order payable to the Board of Governors of
the Federal Reserve System. Orders should be addressed to Publications Services, mail stop 138, Board
of Governors of the Federal Reserve System, Washington, D.C. 20551.
context, examining first the evolution of Federal Reserve monetary policy procedures from their beginnings in 1914 to the end of the 1980s. It indicates how
policy operates most directly through the banking
system and the financial markets and describes key
features of both. Finally, the book turns its attention to
the transmittal of monetary policy actions to the U.S.
economy and throughout the world.
The book is $5.00 a copy for U.S. purchasers and
$10.00 for purchasers outside the United States. Copies are available from the Public Information Department, Federal Reserve Bank of New York, 33 Liberty
Street, New York, N.Y. 10045. Checks must accompany orders and should be payable to the Federal
Reserve Bank of New York in U.S. dollars.
Federal Reserve Statistical Releases
Available on the Commerce Department's
Electronic Bulletin Board
The Board of Governors of the Federal Reserve
System makes some of its statistical releases available to the public through the U.S. Department of
Commerce's electronic bulletin board. Computer
access to the releases can be obtained by sub-
scription. For further information regarding a
subscription to the electronic bulletin board,
please call (703) 487-4630. The releases transmitted to the electronic bulletin board, on a regular
basis, are the following:
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
and Foreign Related Banking Institutions
Weekly/Monday
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.7
Flow of Funds
Quarterly
@FedFRASER