Full text of Federal Reserve Bulletin : August 1993
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
VOLUME 7 9 •
NUMBER 8 •
AUGUST 1993
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 • Richard Spillenkothen • 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
751 ANATOMY OF THE MEDIUM-TERM
MARKET
Over the past decade, medium-term notes
(MTNs) have emerged as major sources of
funding for U.S. and foreign corporations, federal agencies, supranational institutions, and
sovereign countries. This article discusses the
history and economics of the MTN market,
analyzes statistics on MTNs collected by the
Federal Reserve, and reviews recent developments in the U.S. and Euro-MTN markets.
769 INDUSTRIAL PRODUCTION AND
CAPACITY UTILIZATION FOR MAY
1993
Industrial production increased 0.2 percent in
May, a rise that matched the revised gains for
March and April. Utilization of industrial
capacity, at 81.6 percent, has been little
changed since February.
772 STATEMENTS TO THE CONGRESS
John P. LaWare, member, Board of Governors, discusses issues associated with interstate banking and says that interstate banking
promises wider household and business
choices at better prices and, for our banking
system, increased competitive efficiency, the
elimination of unnecessary costs associated
with the delivery of banking services, and risk
reduction through diversification, before the
Subcommittee on Financial Institutions Supervision, Regulation and Deposit Insurance of
the House Committee on Banking, Finance
and Urban Affairs, June 22, 1993.
777 Richard F. Syron, President, Federal Reserve
Bank of Boston, presents remarks on issues
related to the ways that interstate banking can
improve credit flows, and says that current
restrictions on interstate banking and branching are anachronistic, before the Subcommit
tee on Financial Institutions Supervision,
Regulation and Deposit Insurance of the
House Committee on Banking, Finance and
Urban Affairs, June 22, 1993.
NOTE
781 Governor LaWare discusses recent steps
taken by the Federal Reserve, with the other
federal bank regulatory agencies, to reduce
regulatory burden onfinancialinstitutions and
to facilitate an increased flow of credit, and
says that the Federal Reserve is highly sensitive to the matter of regulatory burden
and seeks to avoid imposing unneccessary or
ineffective requirements or constraints on the
banking system, before the Subcommittee on
Financial Institutions Supervision, Regulation
and Deposit Insurance of the House Committee on Banking, Finance and Urban Affairs,
June 29, 1993.
788
ANNOUNCEMENTS
Request for nominations for appointments to
the Consumer Advisory Council.
Availability of services to facilitate the sameday settlement of checks.
Availability of selected statistical data on
computer diskettes.
Proposed interagency rule to amend regulations regarding real estate appraisals.
Publication of the Bank Holding Company
Supervision Manual.
793 LEGAL DEVELOPMENTS
Various bank holding company, bank service
corporation, and bank merger orders; and
pending cases.
A 1 FINANCIAL AND BUSINESS
STATISTICS
These tables reflect data available as of
June 25, 1993.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics
A69 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A84 INDEX TO STATISTICAL TABLES
A86 BOARD OF GOVERNORS AND STAFF
A88 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A90 FEDERAL RESERVE BOARD
PUBLICATIONS
A92 MAPS OF THE FEDERAL RESERVE
SYSTEM
A94 FEDERAL RESERVE BANKS, BRANCHES,
AND OFFICES
Anatomy of the Medium-Term Note Market
Leland E. Crabbe of the Board's Division of
Research and Statistics prepared this article.
Joyce A. Payne, administrator of the Board's
survey of issuers of medium-term notes, provided
assistance. Michael Schoenbeck provided research
assistance.
Over the past decade, medium-term notes (MTNs)
have emerged as a major source of funding for U.S.
and foreign corporations, federal agencies, supranational institutions, and sovereign countries. U.S.
corporations have issued MTNs since the early
1970s. At that time, the market was established as
an alternative to short-term financing in the commercial paper market and long-term borrowing in
the bond market; thus the name "medium term."
Through the 1970s, however, only a few corporations issued MTNs, and by 1981 outstandings
amounted to only about $800 million. In the 1980s,
the U.S. MTN market evolved from a relatively
obscure niche market dominated by the auto
finance companies into a major source of debt
financing for several hundred large corporations. In
the 1990s, the U.S. market has continued to attract
a diversity of new borrowers, and outside the
United States, the Euro-MTN market has grown at
a phenomenal rate. By year-end 1992, outstanding
MTNs in domestic and international markets stood
at an estimated $283 billion (table 1).
1.
Size of the worldwide medium-term note market,
year-end 1992
Billions of dollars
Market sector
Total
U.S. market
Public MTNs of U.S. corporations
Federal agency and others
Private placements
International markets
Euro-MTNs
Foreign domestic markets
Amount
outstanding,
year-end 1992
283
223
176
16
31
60
50
10
SOURCES. Merrill Lynch & Co., Websters Communications International,
Federal Reserve Board.
Most MTNs are noncallable, unsecured, senior
debt securities with fixed coupon rates and
investment-grade credit ratings. In these features,
MTNs are similar to investment-grade corporate
bonds. However, they have generally differed from
bonds in their primary distribution process. MTNs
have traditionally been sold on a best-efforts basis
by investment banks and other broker-dealers acting as agents. In contrast to an underwriter in the
conventional bond market, an agent in the MTN
market has no obligation to underwrite MTNs for
the issuer, and the issuer is not guaranteed funds.
Also, unlike corporate bonds, which are typically
sold in large, discrete offerings, MTNs are usually
sold in relatively small amounts either on a continuous or on an intermittent basis.
Borrowers with MTN programs have great flexibility in the types of securities they may issue. As
the market for MTNs has evolved, issuers have
taken advantage of thisflexibilityby issuing MTNs
with less conventional features. Many MTNs are
now issued with floating interest rates or with rates
that are computed according to unusual formulas
tied to equity or commodity prices. Also, many
include calls, puts, and other options. Furthermore,
maturities are not necessarily "medium term"—
they have ranged from nine months to thirty years
and longer. Moreover, like corporate bonds, MTNs
are now often sold on an underwritten basis, and
offering amounts are occasionally as large as those
of bonds. Indeed, rather than denoting a narrow
security with an intermediate maturity, an MTN is
more accurately defined as a highly flexible debt
instrument that can easily be designed to respond
to market opportunities and investor preferences.
The emergence of the MTN market has transformed the way that corporations raise capital and
that institutions invest. In recent years, this transformation has accelerated because of the development of derivatives markets, such as swaps,
options, and futures, that allow investors and borrowers to transfer risk to others in the financial
system who have different risk preferences. A
752
Federal Reserve Bulletin • August 1993
growing number of transactions in the MTN market now involve simultaneous transactions in a
derivatives market.
This article discusses the history and economics
of the MTN market, analyzes statistics on MTNs
collected by the Federal Reserve, and reviews
recent developments in the U.S. and Euro-MTN
markets.1
BACKGROUND OF THE MTN MARKET2
General Motors Acceptance Corporation (GMAC)
created the MTN market in the early 1970s as an
extension of the commercial paper market. To
improve their asset-liability management, GMAC
and the other auto finance companies needed to
issue debt with a maturity that matched that of their
auto loans to dealers and consumers. However,
underwriting costs made bond offerings with short
maturities impractical, and maturities on commercial paper cannot exceed 270 days. The auto
finance companies therefore began to sell MTNs
directly to investors. In the 1970s, the growth of
the market was hindered by illiquidity in the secondary market and by securities regulations requiring approval by the Securities and Exchange Commission (SEC) of any amendment to a registered
public offering. The latter, in particular, increased
the costs of issuance significantly because borrowers had to obtain the approval of the SEC each time
they changed the posted coupon rates on their
MTN offering schedule. To avoid this regulatory
hurdle, some corporations sold MTNs in the private placement market.
In the early 1980s, two institutional changes set
the stage for rapid growth of the MTN market.
First, in 1981 major investment banks, acting as
agents, committed resources to assist in primary
1. The Federal Reserve Board conducts a survey of borrowing
by U.S. corporations in the public MTN market, the largest sector
of the worldwide market. The Federal Reserve collects these data
to improve its estimates of new securities issues of U.S. corporations, as published in the Federal Reserve Bulletin, and to improve
estimates of corporate securities outstanding, as shown in the flow
of funds accounts.
2. Material in this and the next two sections was originally
presented in "Corporate Medium-Term Notes," Leland Crabbe,
The Continental Bank Journal of Applied Corporate Finance,
vol. 4 (Winter 1992), pp. 90-102.
issuance and to provide secondary market liquidity.
By 1984, the captive finance companies of the
three large automakers had at least two agents for
their MTN programs. The ongoing financing
requirements of these companies and the competition among agents established a basis for the market to develop. Because investment banks stood
ready to buy back MTNs in the secondary market,
investors became more receptive to adding MTNs
to their portfolio holdings. In turn, the improved
liquidity and consequent reduction in the cost of
issuance attracted new borrowers to the market.
Second, the adoption by the SEC of Rule 415 in
March 1982 served as another important institutional change. Rule 415 permits delayed or continuous issuance of so-called shelf registered corporate securities. Under shelf registrations, issuers
register securities that may be sold for two years
after the effective date of the registration without
the requirement of another registration statement
each time new offerings are made. Thus, shelf
registration enables issuers to take advantage of
brief periods of low interest rates by selling previously registered securities on a moment's notice. In
contrast, debt offerings that are not made from
shelf registrations are subject to a delay of at least
forty-eight hours between the filing with the SEC
and the subsequent offering to the public.
The ability of borrowers to sell a variety of debt
instruments with a broad range of coupons and
maturities under a single prospectus supplement is
another advantage of a shelf-registered MTN program. Indeed, a wide array of financing options
have been included in MTN filings.3 For example,
MTN programs commonly give the borrower the
choice of issuing fixed- orfloating-ratedebt.4 Furthermore, several "global" programs allow for
placements in the U.S. market or in the Euromarket. Other innovations that reflect the specific
funding needs of issuers include MTNs collateralized by mortgages issued by thrift institutions,
3. For example, MTNs have been callable, putable, and extendible; they have had zero coupons, step-down or step-up coupons, or
inverse floating rates; and they have been foreign currency denominated or indexed, and commodity indexed.
4. The most common indexes for floating-rate MTNs are the
following: the London interbank offered rate (LIBOR), commercial
paper, Treasury bills, federal funds, and the prime rate. MTN
programs typically give the issuer the option of making floatingrate interest payments monthly, quarterly, or semiannually.
Anatomy of the Medium-Term Note Market
2.
753
An offering rate schedule for a medium-term note program
Medium-term notes
Maturity range
9 months to 12 months
12 months to 18 months
18 months to 2 years ..
2 years to 3 years
3 years to 4 years
4 years to 5 years
5 years to 6 years
6 years to 7 years
7 years to 8 years
8 years to 9 years
9 years to 10 years
10 years
Yield
(percent)
(')
(')
0)
4.35
5.05
5.60
6.05
6.10
6.30
6.45
6.60
6.70
Yield spread
of MTN over
Treasury
securities
(basis points)
Treasury securities
Maturity
Yield
(percent)
(')
(')
(')
35
55
60
9 months
12 months
18 months
2 years
3 years
4 years
3.35
3.50
3.80
4.00
4.50
5.00
60
5 years
6 years
7 years
8 years
9 years
10 years
5.45
5.70
5.90
6.05
6.20
6.30
40
40
40
40
40
1. No rate posted.
equipment trust certificates issued by railways,
amortizing notes issued by leasing companies, and
subordinated notes issued by bank holding companies. Another significant innovation has been the
development of asset-backed MTNs, a form of
asset securitization used predominantly to finance
trade receivables and corporate loans. This flexibility in types of instruments that may be sold as
MTNs, coupled with the market timing benefits of
shelf registration, enables issuers to respond readily
to changing market opportunities.
In the early and mid-1980s, whenfinancecompanies dominated the market, most issues of MTNs
were fixed rate, noncallable, and unsecured, with
maturities of five years or less. In recent years, as
new issuers with more diverse financing needs
have established programs, the characteristics of
new issues have become less generic. For example,
maturities have lengthened as industrial and utility
companies with longer financing needs have
entered the market. Indeed, frequent placements
of notes with thirty-year maturities have made
the designation "medium term" something of a
misnomer.
MECHANICS OF THE MARKET
The process of raising funds in the public MTN
market usually begins when a corporation files a
shelf registration with the SEC.5 Once the SEC
5. SEC-registered MTNs have the broadest market because they
have no resale or transfer restrictions and generally fit within an
investor's investment guidelines.
declares the registration statement effective, the
borrower files a prospectus supplement that
describes the MTN program. The amount of debt
under the program generally ranges from $100 million to $1 billion. After establishing an MTN program, a borrower may enter the MTN market continuously or intermittently with large or relatively
small offerings. Although underwritten corporate
bonds may also be issued from shelf registrations,
MTNs provide issuers with more flexibility than
traditional underwritings in which the entire debt
issue is made at one time, typically with a single
coupon and a single maturity.
The registration filing usually includes a list of
the investment banks with which the corporation
has arranged to act as agents to distribute the notes
to investors. Most MTN programs have two to four
agents. Having multiple agents encourages competition among investment banks and thus lowers
financing costs. The large New York-based investment banks dominate the distribution of MTNs.
Through its agents, an issuer of MTNs posts
offering rates over a range of maturities: for example, nine months to one year, one year to eighteen
months, eighteen months to two years, and annually thereafter (see table 2). Many issuers post rates
as a yield spread over a Treasury security of comparable maturity. The relatively attractive yield
spreads posted at the maturities of three, four, and
five years shown in table 2 indicate that the issuer
desires to raise funds at these maturities. The
investment banks disseminate this offering rate
information to their investor clients. When an investor expresses interest in an MTN offering, the
agent contacts the issuer to obtain a confirmation of
754
Federal Reserve Bulletin • August 1993
the terms of the transaction. Within a maturity
range, the investor has the option of choosing the
final maturity of the note sale, subject to agreement
by the issuing company. The issuer will lower its
posted rates once it raises the desired amount of
funds at a given maturity. In the example in table 2,
the issuer might lower its posted rate for MTNs
with a five-year maturity to 40 basis points over
comparable Treasury securities after it sells the
desired amount of debt at this maturity. Of course,
issuers also change their offering rate scales in
response to changing market conditions. Issuers
may withdraw from the market by suspending sales
or, alternatively, by posting narrow offering spreads
at all maturity ranges. The proceeds from primary
trades in the MTN market typically range from
$1 million to $25 million, but the size of transactions varies considerably.6 After the amount of
registered debt is sold, the issuer may "reload" its
MTN program by filing a new registration with the
SEC.
Although MTNs are generally offered on an
agency basis, most programs permit other means of
distribution. For example, MTN programs usually
allow the agents to acquire notes for their own
account and for resale at par or at prevailing market
prices. MTNs may also be sold on an underwritten
basis. In addition, many MTN programs permit the
borrower to bypassfinancialintermediaries by selling debt directly to investors.
THE ECONOMICS OF MTNS
CORPORATE BONDS
AND
In deciding whether to finance with MTNs or with
bonds, a corporate borrower weighs the interest
6. Financing strategies vary among the borrowers. Some corporate treasurers prefer to "go in for size" on one day with financings
in the $50 million to $100 million range, reasoning that smaller
offerings are more time consuming. Furthermore, a firm may be
able to maintain a "scarcity value" for its debt by financing
intermittently with large offerings, rather than continuously with
small offerings. Other treasurers prefer to raise $50 million to
$100 million over the course of several days with $2 million to
$10 million drawdowns. These corporate treasurers argue that a
daily drawdown of $50 million is an indication that they should
have posted a lower offering rate. In regard to the posting of
offering rates, some treasurers post an absolute yield, while others
post a spread over Treasuries, usually with a cap on the absolute
yield. A few active borrowers typically post rates daily in several
maturity sectors; less active borrowers post only in the maturity
sector in which they seek financing and suspend postings when
they do not require funds.
cost, flexibility, and other advantages of each
security.7 The growth of the MTN market indicates
that MTNs offer advantages that bonds do not.
However, most companies that raise funds in the
MTN market have also continued to issue corporate bonds, suggesting that each form of debt has
advantages under particular circumstances.
Offering Size, Liquidity, and Price
Discrimination
The amount of the offering is the most important
determinant of the cost differential between the
MTN and corporate bond markets. For large, standard financings (such as $300 million of straight
debt with a ten-year maturity) the all-in interest
cost to an issuer of underwritten corporate bonds
may be lower than the all-in cost of issuing MTNs.
This cost advantage arises from economies of scale
in underwriting and, most important, from the
greater liquidity of large issues. As a result, corporations that have large financing needs for a specific term usually choose to borrow with bonds.
From an empirical point of view, the liquidity
premium, if any, on small offerings has yet to be
quantified. Nevertheless, the sheer volume of
financing in the MTN market suggests that any
liquidity premium that may exist for small offer7. Apart from the distribution process, MTNs have several less
significant features that distinguish them from underwritten corporate bonds. First, MTNs are typically sold at par, while traditional
underwritings are frequently sold at slight discounts or premiums to
par. Second, the settlement for MTNs is in same-day funds, whereas
corporate bonds generally settle in next-day funds. Although MTNs
with long maturities typically settle five business days after the
trade date (as is the convention in the corporate bond market),
MTNs with short maturities sometimes have a shorter settlement
period.
Finally, semiannual interest payments to noteholders are typically made on a fixed cycle without regard to the offering date or
the maturity date of the MTN; in contrast, corporate bonds typically pay interest on the first or fifteenth day of the month at
six-month and annual intervals from the date of the offering. The
interest payment convention in the MTN market usually results in a
short or a long first coupon and in a short final coupon. Consider,
for example, an MTN program that pays interest on March 1 and
September 1 and at maturity of the notes. A $100,000 MTN sold on
May 1 with a 9 percent coupon and afifteen-monthmaturity from
such a program would distribute a "short" first coupon of $3,000
on September 1, a full coupon of $4,500 on March 1, and a "short"
final coupon of $3,750 plus the original principal on August 1 of
the following year. Like corporate bonds, interest on fixed-rate
MTNs is calculated on the basis of a 360-day year of twelve 30-day
months.
Anatomy of the Medium-Term Note Market
ings is not a significant deterrent to financing.
According to market participants, the interest cost
differential between the markets has narrowed in
recent years as liquidity in the MTN market has
improved. Many borrowers estimate that the premium is now only about 5 to 10 basis points.8
Furthermore, many borrowers believe that
financing costs are slightly lower in the MTN market because its distribution process allows borrowers to price discriminate. Consider a stylized example of a company that needs to raise $100 million.
With a bond offering, the company may have to
raise the offering yield significantly, for example,
from 6 percent to 6.25 percent, to place the final
$10 million with the marginal buyer. In contrast,
with MTNs the company could raise $90 million
by posting a yield of 6 percent; to raise the additional $10 million, the company could increase its
MTN offering rates or issue at a different maturity.
Consequently, because all of the debt does not have
to be priced to the marginal buyer, financing costs
can be lower with MTNs.
The Flexibility of MTNs
Even if conventional bonds enjoy an interest cost
advantage, this advantage may be offset by the
flexibility that MTNs afford. Offerings of
investment-grade straight bonds are clustered at
standard maturities of two, three, five, seven, ten,
and thirty years. Also, because the fixed costs of
underwritings make small offerings impractical,
corporate bond offerings rarely amount to less than
$100 million. These institutional conventions impede corporations from implementing a financing
policy of matching the maturities of assets with
those of liabilities. By contrast, drawdowns from
MTN programs over the course of a month typically amount to $30 million, and these drawdowns
frequently have different maturities and special features that are tailored to meet the needs of the
borrower. This flexibility of the MTN market
allows companies to match more closely the maturities of assets and liabilities.
8. Commissions to MTN agents typically range from 0.125 percent to 0.75 percent of the principal amount of the note sale,
depending on the stated maturity and the credit rating assigned at
the time of issuance. Fees to underwriters of bond offerings are
somewhat higher.
755
Theflexibilityof continuous offerings also plays
a role in a corporation's decision to finance with
MTNs. With MTNs, a corporation can "average
out" its cost of funds by issuing continuously rather
than coming to market on a single day. Therefore,
even if bond offerings have lower average yields, a
risk-averse borrower might still elect to raise funds
in the MTN market with several offerings in a
range of $5 million to $10 million over several
weeks, rather than with a single $100 million bond
offering.
The flexibility of the MTN market also allows
borrowers to take advantage of funding opportunities. By having an MTN program, an issuer can
raise a sizable amount of debt in a short time;
often, the process takes less than half an hour.
Bonds may also be sold from a shelf registration,
but the completion of the transaction may be
delayed by the arrangement of a syndicate, the
negotiation of an underwriting agreement, and the
"pre-selling" of the issue to investors. Furthermore, some corporations require that underwritten
offerings receive prior approval by the president of
the company or the board of directors. In contrast,
a corporate treasurer mayfinancewith MTNs without delay and at his or her discretion.9
Discreet Funding with MTNs
The MTN market also provides corporations with
the ability to raise funds discreetly because the
issuer, the investor, and the agent are the only
market participants that have to know about a primary transaction. In contrast, the investment community obtains information about underwritten
bond offerings from a variety of sources.
Corporations often avoid the bond market in
periods of heightened uncertainty about interest
rates and the course of the economy, such as the
period after the 1987 stock market crash. Underwritings at such times could send a signal of finan-
9. The administrative costs may be lower with MTNs than with
bonds. After the borrower and the investor have agreed to the terms
of a transaction in the MTN market, the borrower files a one-page
pricing supplement with the SEC, stating the sale date, the rate of
interest, and the maturity date of the MTN. In contrast, issuers of
corporate bonds sold from shelf registrations are required to file a
prospectus supplement.
756
Federal Reserve Bulletin • August 1993
cial distress to the market. Similarly, corporations
in distressed industries, such as commercial banking in the second half of 1990, can use the MTN
market to raise funds quietly rather than risk negative publicity in the high profile bond market. Thus,
during periods of financial turmoil, the discreet
nature of the MTN market makes it an attractive
alternative to the bond market.
"Reverse Inquiry" in the MTN market
Another advantage of MTNs is that investors often
play an active role in the issuance process through
the phenomenon known as "reverse inquiry." For
example, suppose an investor desires to purchase
$15 million of A-rated finance company debt with
a maturity of six years and nine months. While
such a security may not be available in the corporate bond market, the investor may be able to
obtain it in the MTN market through reverse
inquiry. In this process, the investor relays the
inquiry to an issuer of MTNs through the issuer's
agent. If the issuer finds the terms of the reverse
inquiry sufficiently attractive, it may agree to the
transaction even if it was not posting rates at the
maturity that the investor desires.
According to market participants, trades that
stem from reverse inquiries account for a significant share of MTN transactions. Reverse inquiry
not only benefits the issuer by reducing borrowing
costs but also allows investors to use the flexibility
of MTNs to their advantage. In response to investor
preferences, MTNs issued under reverse inquiry
often include embedded options and frequently pay
interest according to unusual formulas. This
responsiveness of the MTN market to the needs of
investors is one of the most important factors driving the growth and acceptance of the market.
THE FEDERAL RESERVE BOARD'S
OF US. CORPORATE MTNS
SURVEY
The Federal Reserve surveys U.S. corporations with
MTN programs. These companies provide data on
a confidential basis on the amount of MTNs they
issue; respondents report monthly, quarterly, or annually depending on how active they are in the
market. At year-end, all MTN issuers are asked to
provide data on the amount of their outstandings.
The data on gross issuance begin in January 1983,
and the data on outstandings have been collected
since year-end 1989. The Federal Reserve obtains
information on new programs from announcements
of SEC Rule 415 registrations and contacts with
MTN agents.
Because the participation rate in the Federal
Reserve survey is 100 percent, it provides an accurate measure of the volume of MTN financing by
U.S. corporations in the U.S. public market. However, while the U.S. corporate sector is the largest
segment of the MTN market, MTNs have been
issued in other markets and by non-U.S. corporations. For example, several U.S. corporations have
issued MTNs in the Euro-market. Also, the survey
does not include MTNs issued in the U.S. public
market by government-sponsored agencies, such as
the Federal National Mortgage Association, by
supranational institutions, and by non-U.S. corporations. Furthermore, although the database includes
MTNs issued by bank holding companies, it does
not include deposit notes and bank notes offered by
banks because these securities are exempt from
SEC registration. Perhaps most important, the database does not include privately placed MTNs. The
private placement market is particularly attractive
to issuers who wish to gain access to U.S. investors
without having to obtain SEC approval for a public
offering. According to MTN agents, non-U.S. corporations are the largest borrowers in the market
for privately placed MTNs. Because the financing
costs are usually lower in the public market than in
the less liquid private market, most U.S. corporations choose to issue public, SEC-registered MTNs.
Issuance Volume and Industry of the Issuers
From 1983 through 1992, the volume of MTN
issuance in the public market increased in each
year, rising from $5.5 billion in 1983 to $74.2 billion in 1992, and totaled $330 billion over the
ten-year period (table 3). Similarly, the number of
borrowers increased from 12 in 1983 to 208 in
1992, and totalled 402 corporations for the period
(table 3).
Borrowers in the MTN market span a wide array
of industry groups. In the financial sector, major
borrowers include auto finance companies, bank
Anatomy of the Medium-Term Note Market
3.
757
Gross borrowing by U.S. corporations in the U.S. medium-term note market, 1983-92
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
Total,
1983-92
Type of issuer
Amounts in million of dollars
All U.S. Corporations
5,459
10,252
13,488
19,811
23,153
30,676
34,008
46,617
71,918
74,162
329,543
Financial
Autofinancecompanies
Banking Firms
Finance companies1
Real estate, insurance and
other financial
companies
Savings and loans
Securities brokers
5,431
4,750
75
591
9,896
6,800
885
2,111
12,175
6,688
1,991
2,624
16,715
8,854
2,120
3,038
20,338
9,930
2,258
4,674
22,232
6,699
3,795
6,562
26,294
8,575
3,610
8,500
29,936
9,874
3,162
12,289
45,773
12,380
11,157
14,802
50,551
13,450
6,553
18,656
239,341
88,000
35,606
73,847
0
0
15
0
90
10
0
307
565
152
1,404
1,148
384
1,396
1,695
677
2,651
1,848
900
2,312
2,397
1,186
25
3,399
1,027
0
6,408
1,084
67
10,741
5,410
8,252
28,227
28
0
0
20
356
0
163
186
1,313
143
848
191
3,095
344
2,103
535
2,815
494
1,064
691
8,444
1,485
2,593
1,926
7,713
2,706
2,570
961
16,681
3,221
6,497
1,237
26,145
5,143
12,503
2,409
23,610
7,535
9,130
1,747
90,202
21,069
37,471
9,901
0
0
0
0
189
514
84
1,221
1,373
1,635
5,015
0
8
0
8
25
107
38
75
81
296
752
1,175
578
815
1,933
2,573
1,800
2,918
1,018
2,546
6,225
10,520
Nonfinancial corporations
Electric, gas and water
Manufacturing
Services
Telephone and
communication
Transportation, mining,
and construction
Wholesale and retail trade ...
Number of issuers
All U.S. corporations
Financial
Nonfinancial
Number of new issuers
Financial
Nonfinancial
12
34
52
72
86
132
138
165
223
208
402
10
2
29
5
41
11
50
22
61
25
80
52
72
66
65
100
76
147
65
143
155
247
12
10
2
22
19
3
23
15
8
30
15
15
42
27
15
59
26
33
50
14
36
56
11
45
66
11
55
42
7
35
402
155
247
1. Other than autofinancecompanies.
holding companies, business and consumer credit
institutions, and securities brokers. In the nonfinancial sector, participants in the MTN market include
utilities, telephone companies, manufacturers, service firms, and wholesalers and retailers. Within
industry groups, the auto finance companies have
been the heaviest borrowers, raising $88 billion
over the period. In relative terms, however, issuance by auto finance companies declined from an
87 percent share of the MTN market in 1983 to
18 percent in 1992.
In the early to mid-1980s, financial companies
dominated the MTN market. Indeed, in 1983, only
two nonfinancial companies issued MTNs, and they
accounted for less than 1 percent of the issuance
volume. In recent years, however, nonfinancial
companies have increased their share of the market, and from 1990 through 1992, they accounted
for about one-third of MTN issuance.
The increase in the volume of MTN issuance
reflects a dramatic increase in the number of new
borrowers in the market. In each year from 1984
through 1992, at least twenty companies issued
MTNs for the first time, and most of the new
entrants have been nonfinancial companies. In
1991, for example, sixty-six new borrowers entered
the market, of which fifty-five were nonfinancial
companies. As a result of this trend, in each year
beginning in 1990, the total number of nonfinancial
firms issuing MTNs has exceeded the total number
offinancialissuers.
The Volume of Corporate MTNs Outstanding
and the Components of Net Borrowing
Outstanding MTNs and issuer use of MTN
programs have increased sharply since 1989. In
the aggregate, outstanding MTNs increased
from $76 billion in 1989 to $176 billion in 1992
(table 4). Over this period, outstandings of nonfinancial firms increased from $18.5 billion to
$67.6 billion, while outstandings offinancialcorporations increased from $57.5 billion to $108.2 billion. For individual firms, outstandings of MTNs
averaged $504 million in 1992, compared with
$350 million in 1989.
758
4.
Federal Reserve Bulletin • August 1993
Medium-term notes outstanding, 1989-92
Millions of dollars
5.
Year-end
Market sector
1989
1990
1991
76,016
100,040
142,316
175,782
Financial
Nonfinancial
57,505
18,511
69,146
30,894
89,823
52,493
108,180
67,602
350
504
180
383
591
215
453
788
262
Year over year
Net borrowing,
by type of borrower
1992
Total outstanding
Analysis of net borrowing in the corporate
medium-term note market, 1990-92
Millions of dollars
504
925
291
Average outstanding ...
Financial
Nonfinancial
1990
1991
1992
24,024
11,641
12,382
42,275
20,677
21,599
33,466
18,357
15,109
8,070
2,341
5,729
9,711
1,926
7,785
5,983
526
5,457
Net borrowing by existing issuers
All U.S. corporations
15,953
Financial
9,300
Nonfinancial
6,653
32,565
18,751
13,814
27,482
17,831
9,652
.230
.093
.360
.179
.029
.361
Total net borrowing
All U.S. corporations
Financial
Nonfinancial
Net borrowing by new entrants
All U.S. corporations
Financial
Nonfinancial
The data on net borrowing, that is, the year-overyear change in outstandings, can be dissected to
determine the sources of growth in the market. For
the market as a whole, new entrants accounted for
about one-third of net borrowing in 1990, onefourth of net borrowing in 1991, and less than
one-fifth in 1992 (table 5). Thus, firms that had
already issued MTNs accounted for most of the
recent growth in the market. In the financial sector,
in particular, new entrants accounted for only a
small proportion of the growth, simply because a
large share of the financial firms that could enter
the MTN market did so in the 1980s. Among
nonfinancial firms, in contrast, new entrants have
continued to fuel a significant share of the growth
in the market.
MEMO: Ratio of net borrowing
by new entrants to total
net borrowing
All U.S. corporations
Financial
Nonfinancial
.336
.201
.463
as the ratings on new offerings because of the
preponderance of rating downgrades in recent
years. Nevertheless, 98 percent of outstanding
MTNs were rated investment grade at year-end
1992 (table 7).
Maturities and Yield Spreads
Maturities on MTNs reflect the financing needs of
the borrowers. Financial firms tend to issue MTNs
with maturities matched to the maturity of loans
made to their customers. Consequently, in the
financial sector, maturities are concentrated in a
range of one to five years, and only a small proportion are longer than ten years (chart 1). Nonfinancial firms, in contrast, often use MTNs to finance
long-lived assets, such as plant and equipment. As
a result, maturities on MTNs issued by nonfinan-
Credit Ratings
The corporations issuing MTNs have had high
credit ratings. Since 1983, more than 99 percent of
MTNs have been rated investment grade (Baa or
higher) at the time of issuance (table 6). In 1992,
$51 billion of the $74 billion in MTN offerings
were rated single A, and sixfirms,issuing a total of
$540 million, had Ba ratings. Outstanding MTNs
also tend to have high credit ratings, but not as high
6.
Ratings distribution of medium-term note issuance, 1983-92
Millions of dollars
Ratings by Moody's
Investors Service
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
Total
issuance,
1983-92
Aaa
Aa
A
Baa
Ba
B
0
2,693
883
1,883
0
0
90
5,236
3,829
216
882
0
124
7,740
4,426
1,198
0
0
789
10,117
6,607
1,799
498
0
1,585
11,908
7,469
1,919
273
0
2,651
10,129
11,735
5,596
565
0
2,745
9,722
16,333
5,098
109
0
1,635
14,920
23,731
6,331
0
0
4,250
5,441
51,489
10,593
145
1
2,966
6,381
50,513
13,762
540
0
16,834
84,288
177,015
48,395
3,011
1
Anatomy of the Medium-Term Note Market
7.
759
Ratings distribution of medium-term notes outstanding, 1989-92
Millions of dollars
Year-end outstandings
Ratings by Moody'i
Investors Service
Net change
1990
Aaa
Aa
A
Baa
Ba
B
Caa or lower
1992
5,416
30,879
45,874
16,675
1,066
20
5,918
23,069
35,208
9,491
1,448
112
770
1991
6,715
8,753
100,757
22,827
2,556
183
525
6,077
13,137
89,205
64,009
2,851
53
450
110
rial corporations cover a wider range, and in 1992,
25 percent to 30 percent were longer than ten years.
Yields onfixed-rateMTNs, commonly quoted as
a yield spread over a Treasury security of comparable maturity, reflect the credit risk of the borrower.
Other factors held constant, Baa-rated MTNs have
higher yield spreads than A-rated MTNs, which in
turn have higher yield spreads than Aa-rated MTNs
(chart 2). Yield spreads also vary over time, particularly over the course of the business cycle.
Spreads on A-rated MTNs increased from 60 basis
points over Treasury securities in July 1990, a
cyclical trough, to 140 basis points in January
1991.10
10. These yield spreads are estimated using the model presented
in Leland E. Crabbe and Christopher M. Turner, "A Dynamic
Linear Model of the Determinants of Yield Spreads on FixedIncome Securities," (Board of Governors of the Federal Reserve
System, working paper, June 1993).
1. Distribution of maturities of corporate medium-term
notes, 1992
Percent of total
1991
1,299
-22,126
54,883
6,152
1,490
163
415
-502
7,809
10,666
7,184
-381
-92
1992
-638
4,384
11,552
41,182
295
-130
-75
The Relative Size of the MTN market
The MTN market accounts for a significant share
of borrowing by U.S. corporations. One measure of
the size of the market is the ratio of outstanding
MTNs to the amount of outstanding public debt
(MTNs plus public corporate bonds). According to
this definition of market share, MTNs accounted
for 16 percent of public corporate debt in 1992,
compared with 9 percent in 1989 (table 8). This
ratio understates the size of the MTN market, however, because the market is still relatively new, and
outstandings are growing rapidly.
An alternative measure of the size of the market
is the volume of investment-grade MTN issuance
as a percentage of total investment-grade debt issuance (MTNs plus underwritten straight bonds). By
this definition, the share of investment-grade debt
issued as MTNs rose from 18 percent in 1983 to a
peak of 42 percent in 1990 (table 9). In 1992, the
2. Yield spreads between two-year medium-term notes
of financial companies and two-year Treasury notes,
selected ratings, October 1987-December 1992
Basis points
250
Baa
200
[
jf
9
2
months- years
'year
3
4-5
6-7
years
years
years
SOURCE. Merrill Lynch.
years
years
years
I
pta\aJ \
150
\
A/~
1 0 0
50
\jJSfy-—
8-10 11-15 16-20 21-30
years
AS
| AA
A
|
1 1
1988
1989
Data are weekly.
1990
1991
1992
760
8.
Federal Reserve Bulletin • August 1993
Ratio of medium-term notes outstanding to the sum
of medium-term notes and corporate bonds
outstanding, 1989-92
Percent
1989
1990
1991
1992
All U.S. corporate MTNs
and bonds
Financial
Nonfinancial
9
28
3
11
31
5
14
33
7
16
32
9
All U.S. corporate MTNs and
bonds with investmentgrade ratings
Financial
Nonfinancial
12
29
4
14
34
6
17
34
9
19
33
11
Market sector
SOURCE. For corporate bond outstandings, Moody's Investors Service.
Both Moody's and Federal Reserve figures exclude private placements,
asset-backed securities, bonds issued by federal agencies, Eurobonds, and
Yankee bonds. Moody'sfiguresinclude convertible bonds.
ratio fell to 37 percent, a decline that mainly
reflects the heavy volume of refinancing in the
corporate bond market, especially in the nonfinancial sector. This ratio of debt issuance may overestimate the size of the MTN market because
MTNs typically have shorter maturities than corporate bonds.
MTNs represent an increasingly important
source of credit to nonfinancial corporations, as
companies have shifted funding from alternative
credit markets. In general, nonfinancial corporations that borrow in the MTN market have access
to other major credit markets: corporate bonds,
commercial paper, bank loans, and privately placed
bonds. From 1989 through 1992, net borrowing by
nonfinancial corporations in the MTN market
increased $49 billion, while borrowing in the other
four markets increased an estimated $102 billion
(table 10). Notably, corporate borrowing in the
public bond market rose $100 billion, while borrowing at banks fell $35 billion. The shift to longterm financing (MTNs and bonds) over this period
is a typical, cyclical phenomenon that occurs in
periods of slow economic growth and falling long9.
term interest rates. However, some of the growth of
the MTN market reflects a secular decline in the
role of banks as financial intermediaries.
RECENT DEVELOPMENTS
IN THE MTN MARKET
In recent years several changes have occurred in
the MTN market as a result of innovations in other
capital markets. Among the most important
changes in the MTN market are the increasing use
of "structured" MTNs, the increasing participation
by banking organizations in the market, and the
development of a system for book-entry clearing
and settlement of MTN transactions. Also, foreign
corporations have begun to use the MTN market
more frequently since the adoption of SEC Rule
144A in April 1990.
Structured MTNs
In recent years, an increasing share of MTNs have
been issued as part of structured transactions. In
a structured MTN, a corporation issues an MTN
and simultaneously enters into one or several swap
agreements to transform the cash flows that it is
obligated to make. The simplest type of structured
MTN involves a "plain vanilla" interest rate swap.
In such a financing, a corporation might issue a
three-year, floating-rate MTN that pays LIBOR
plus a premium semiannually. At the same time,
the corporation negotiates a swap transaction in
which it agrees to pay a fixed rate of interest
semiannually for three years in exchange for
receiving LIBOR from a swap counterparty. As a
result of the swap, the borrower has synthetically
created a fixed-rate note because the floating-rate
payments are offsetting. (See the box for an outline
of this transaction.)
Ratio of medium-term note issuance to the sum of medium-term note and corporate bond issuance, 1983-92
Percent
1992
37
58
21
1. In the ratio, the volume of issuance of MTNs and corporate bonds does
not include speculative-grade bonds, convertible bonds, federal agency
bonds, asset-backed securities, or private placements.
Anatomy of the Medium-Term Note Market
10.
Funding by nonfinancial corporations in major
domestic credit markets, 1989-92
Billions of dollars
Outstandings at year-end
1989
1992
Net change
from
1989 to 1992
18.5
607.5
107.1
553.5
265.0
67.6
707.9
108.3
518.8
300.0
49.1
100.3
1.2
-34.7
35.0
Market
Medium-term notes
Public bonds
Commercial paper
Bank loans
Privately placed bonds ...
SOURCE. For all series except public bonds, Federal Reserve Board; for
public bonds, Moody's Investors Service.
At first glance, structured transactions seem
needlessly complicated. A corporation could simply issue a fixed-rate MTN. However, as a result of
the swap transaction, the corporation may be able
A Structured Transaction in the Medium-Term Note
Market Involving an Interest Rate Swap
At time 0, an MTN issuer sells a three-year, $50 million
MTN that pays LIBOR plus 15 basis points semiannually.
At the same time, the issuer agrees to an interest rate swap.
Payment obligations
$50 million at time 0
for the floating-rate MTN
MTN
issuer
LIBOR + 15 basis points
semiannually, and $50 million •
in three years
MTN
investor
- LIBOR semiannually Fixed rate
(for example, 5 percent) •
semiannually
Swap
counterparty
The combination of the swap and the MTN result in the
following semiannual cash flows for the MTN issuer:
Cash flows
- (LIBOR + 15 basis points) x $50 million
+ (LIBOR) x $50 million
- (5 percent) x $50 million
obligation = 5.15 percent on $50 million
Because the floating-rate payments are offsetting, the
MTN issuer has created a synthetic, fixed-rate note that
pays 5.15 percent on $50 million for three years.
761
to borrow at a lower rate than it would pay on a
fixed-rate note. Indeed, most MTN issuers decline
to participate in structured financings unless they
reduce borrowing costs at least 10 or 15 basis
points. Issuers demand this compensation because,
compared with conventional financings, structured
financings involve additional expenses, such as
legal and accounting costs and the cost of evaluating and monitoring the credit risk of the swap
counterparty. For complicated structured transactions, most issuers require greater compensation.
Many structured transactions originate with
investors through a reverse inquiry. This process
begins when an investor has a demand for a security with specific risk characteristics. The desired
security may not be available in the secondary
market, and regulatory restrictions or bylaws prohibit some investors from using swaps, options, or
futures to create synthetic securities. Through a
reverse inquiry, an investor will use MTN agents to
communicate its desires to MTN issuers. If an
issuer agrees to the inquiry, the investor will obtain
a security that is custom-tailored to its needs. The
specific features of these transactions vary in
response to changes in market conditions and
investor preferences. For example, in 1991 many
investors desired securities with interest rates that
varied inversely with short-term market interest
rates. In response to investor inquiries, several corporations issued "inverse floating-rate" MTNs that
paid an interest rate of, for example, 12 percent
minus LIBOR. At the time of the transaction, the
issuers of inverse floating-rate MTNs usually
entered into swap transactions to eliminate their
exposure to falling interest rates.
While structured transactions in the MTN market
often originate with investors, investment banks
also put together such transactions. Most investment banks have specialists in derivative products
who design securities to take advantage of temporary market opportunities. When an investment
bank identifies an opportunity, it will inform investors and propose that they purchase a specialized
security. If an investor tentatively agrees to the
transaction, the MTN agents in the investment bank
will contact an MTN issuer with the proposed
structured transaction.
Most investors require that issuers of structured
MTNs have triple-A or double-A credit ratings. By
dealing with highly rated issuers, the investor
762
Federal Reserve Bulletin • August 1993
reduces the possibility that the value of the structured MTN will vary with the credit quality of the
issuer. In limiting credit risk, the riskiness of the
structured MTN mainly reflects the specific risk
characteristics that the investor prefers.11 Consequently, federal agencies and supranational institutions, which have triple-A ratings, issue a large
share of structured MTNs. The credit quality profile of issuers of structured MTNs has changed
slightly in recent years, however, as some investors
have become more willing to purchase structured
MTNs from single-A corporations. In structured
transactions with lower-rated borrowers, the investor receives a higher promised yield as compensation for taking on greater credit risk.
Market participants estimate that structured
MTNs accounted for 20 percent to 30 percent of
MTN volume in the first half of 1993, compared
with less than 5 percent in the late 1980s. The
growth of structured MTNs highlights the
important role of derivative products in linking
various domestic and international capital markets.
Frequently, the issuers of structured MTNs are
located in a different country from that of the
investors.
The increasing volume of structured transactions
is testimony to the flexibility of MTNs. When
establishing MTN programs, issuers build flexibility into the documentation that will allow for a
broad range of structured transactions. Once the
documentation is in place, an issuer is able to
reduce borrowing costs by responding quickly to
temporary opportunities in the derivatives market.
Theflexibilityof MTNs is also evident in the wide
variety of structured MTNs that pay interest or
repay principal according to unusual formulas.
Some of the common structures include the following: (1)floating-rateMTNs tied to the federal funds
rate, LIBOR, commercial paper rates, or the prime
rate, many of which have included caps or floors
on rate movements; (2) step-up MTNs, the interest
rate on which increases after a set period;
11. An additional reason for the high credit quality of structured
MTNs is that some investors, such as money market funds, face
regulatory restrictions on the credit ratings of their investments.
See Leland Crabbe and Mitchel A. Post, "The Effect of SEC
Amendments to Rule 2a-7 on the Commercial Paper Market,"
Finance and Economics Discussion Series 199 (Board of Governors of the Federal Reserve System, May 1992).
(3) LIBOR differential notes, which pay interest
tied to the spread between, say, deutsche mark
LIBOR and French franc LIBOR; (4) dual currency
MTNs, which pay interest in one currency and
principal in another; (5) equity-linked MTNs,
which pay interest according to a formula based on
an equity index, such as the Standard & Poor's 500
or the Nikkei; and (6) commodity-linked MTNs,
which have interest tied to a price index or to the
price of specific commodities such as oil or gold.
The terms and features of structured MTNs continue to evolve in response to changes in the preferences of investors and developments in financial
markets.
Bank Notes
Banking organizations are major participants in the
MTN market. Like other corporations, bank holding companies must file registration documents
with the SEC when issuing public securities. Consequently, the Federal Reserve survey captures
MTNs issued by bank holding companies. Over the
ten-year survey period, thirty-five bank holding
companies raised funds in the MTN market, and
from 1989 to 1992, outstanding MTNs of bank
holding companies increased from $8.3 billion to
$17.9 billion. Although most of these MTNs have
senior status in relation to other debt outstanding, a
few bank holding companies have issued subordinated MTNs. Subordinated MTNs of bank holding
companies typically have long maturities of about
ten years. Under regulatory capital requirements,
subordinated debt with a maturity of five years or
longer qualifies as tier 2 capital.
In contrast to public offerings by bank holding
companies, securities issued by banks are exempt
from registration under section 3(a)2 of the Securities Act of 1933. In recent years, a growing number
of banks have issued exempt securities, called bank
notes, that have characteristics in common with
certificates of deposit (CDs), MTNs, and shortterm bonds.
Like CDs, most bank notes are senior, unsecured
debt obligations issued by the bank. In the event of
the insolvency of the issuing institution, bank notes
are likely to rank equal with deposits, except in
states where deposits have priority over other debt
obligations. As with institutional CDs, nearly all
Anatomy of the Medium-Term Note Market
bank notes are sold to institutional investors in
minimum denominations of $250,000 to $1 million. Bank notes are not covered by FDIC insurance, nor are they subject to FDIC insurance
assessments. CDs, in contrast, are insured for
$100,000 per depositor. Furthermore, in the event
of a bank failure, the FDIC could choose to protect
the financial interests of some or all depositors or
other creditors without treating bank notes in the
same manner.
Like MTNs, bank notes may be offered continuously or intermittently in relatively small amounts
that typically range from $5 million to $25 million.
In addition, as with MTNs, most medium-term
bank notes have maturities that range from one to
five years.12 However, ratings on senior bank notes
are typically one notch higher than the ratings on
senior MTNs, which are issued at the holding company level. Reflecting these differences in ratings
and priority in the firms' capital structures, the
yields on banks notes usually are significantly
lower than the yields on MTNs of comparable
maturity.
Some bank notes, which are similar to corporate bonds, are sold in large, underwritten, discrete
offerings that range from $50 million to $1 billion.
However, they differ from corporate bonds in that
they are not registered with the SEC. From 1988
through 1992, banks issued $14.3 billion of underwritten, senior bank notes, including $7.8 billion
in 1992. In the first half of 1993, they issued
$6.3 billion.
Book-Entry Clearing and Settlement of MTNs
In the early and mid-1980s, high administrative
costs deterred some issuers from establishing
MTN programs. Among the most significant of the
administrative costs were those arising from transferring physical securities to investors. These costs
included printing, delivery, safekeeping, messengers, insurance, and recordkeeping. Moreover, issuers incurred significant costs in the disbursement of
interest and principal payments to each individual
noteholder. According to market estimates, the
direct costs of transferring physical securities range
from $5 to $30 per transaction. For small offerings,
the costs of physical delivery can add significantly
to the all-in cost of borrowing. As a result, many
issuers refused to sell MTNs in denominations of
less than $1 million.
Since 1988, the costs of clearing and settlement
of MTNs have decreased substantially as a
computer-based system of book-entry recordkeeping has supplanted physical certificates. When an
MTN is issued under the book-entry system, an
agent bank for the issuer uses a computer link with
The Depository Trust Company (DTC) to enter the
descriptive information and settlement details of
the transaction. The sales agent receives a copy of
the computer record from DTC, and the investor
receives a trade confirmation from the sales agent
and periodic ownership statements from the custodian bank, in lieu of physical certificates. Secondary market trades are likewise recorded with computer entries. Under the book-entry system, an
issuer makes one wire transfer to DTC that covers
all interest payments on each interest payment date.
This payment process contrasts with the process for
physical certificates in which issuers make separate
payments to each investor. Similarly, under the
book-entry system, when the MTN matures, the
issuer makes only one funds transfer to DTC. The
DTC book-entry process costs $4 for each issuance, and each participant in a transaction pays
between $1.29 and $1.54 for subsequent deliveries
11.
Issuance and outstandings of book entry
medium-term notes, 1988-1993:Q1
End of period
Period
12. Banks also issue bank notes with shorter maturities that
range from seven days to one year. These short-term bank notes are
sold to money market investors with interest calculated on a CD
basis or discount basis. As with medium-term bank notes, shortterm bank notes are issued at the bank level, and they are not
insured. Short-term bank notes differ from commercial paper
in that commercial paper is an obligation of the bank holding
company.
763
1988
1989
1990
1991
1992
1993: Q1
Issuance
volume
(billions of
dollars)
0.6
15.6
37.3
66.5
80.2
25.4
Principal
amount
outstanding
(billions of
dollars)
Number of
issuers
Number of
issues
0.6
16.2
51.4
106.2
159.8
177.8
5
138
225
368
451
484
136
2,001
6,670
12,660
16,495
17,254
SOURCE. The Depository Trust Company.
764
Federal Reserve Bulletin • August 1993
in the primary and secondary markets. Besides
reducing the direct cost of issuance, the book-entry
system also lowers the likelihood of delayed delivery because of logistical problems and reduces the
chances of failed trades arising from paperwork
errors.
Book entry has become the preferred method of
clearing and settlement in the MTN market.
According to DTC, issuance of book-entry MTNs
rose from $600 million in 1988 to $80 billion
in 1992 (table 11). Moreover, outstanding MTNs
under the book-entry system amounted to $160 billion at year-end 1992, a total that includes 16,495
individual securities.13
Borrowing by Foreign Entities in the MTN
Market and SEC Rule 144A14
In the 1980s, SEC disclosure requirements associated with public offerings discouraged foreign corporations from issuing MTNs in the U.S. public
market. For foreign corporations, the most burdensome requirement is that financial statements conform to U.S. generally accepted accounting principles. Most foreign issuers would have to incur
considerable legal and accounting expenses to meet
this requirement, and many would have to disclose
more information about their operations than is
required in their home markets. The expense of
registering securities and satisfying ongoing reporting requirements has also deterred foreign entities
from borrowing in the U.S. market. Foreign issuers
could avoid the costs of a public offering by selling
MTNs in the U.S. private placement market. However, yields on most private placements included
an illiquidity premium resulting from regulatory
restrictions on trading.
The adoption of SEC Rule 144A in April 1990
effectively created an alternative market in which
foreign corporations could gain access to U.S.
investors without having to satisfy the disclosure
13. These figures on issuance and outstandings are not directly
comparable with those reported in the Federal Reserve's survey
because the DTC totals include bank notes and deposit notes issued
by banks, as well as MTNs issued by foreign corporations.
14. See Mark S. Carey, Stephen D. Prowse, John D. Rea, and
Gregory F. Udell, "Recent Developments in the Market for Privately Placed Debt," Federal Reserve Bulletin, vol. 79 (February
1993), pp. 77-92.
requirements for public offerings. Rule 144A
allows institutional investors to trade private placements among themselves with few restrictions. To
protect less sophisticated investors, the SEC
requires that 144A securities be sold only to "qualified institutional buyers," which own and invest in
a minimum of $100 million in securities. This
definition is broad enough to include most of the
institutions that buy MTNs, such as banks and bank
trust departments, insurance companies, pension
funds, mutual funds, investment advisers, and state
and local governments.15 A foreign issuer of a
144A security must provide, upon demand by a
security holder or potential purchaser, a brief
description of the business and financial statements
for the three most recent fiscal years, which can be
in the accounting format used in the issuer's home
country. Privately placed MTNs are an example of
a security that may be eligible for resale under Rule
144A.
Since the adoption of Rule 144A, issuance of
MTNs by foreign corporations in the U.S. private
market has increased markedly. According to the
Securities Data Corporation, issuance increased
from $2.2 billion in 1990 to $10 billion in 1992. In
general, MTNs issued by foreign corporations
under Rule 144A have similar characteristics to
those sold by U.S. corporations in the public market. Both typically are dollar denominated and
investment grade, with standard covenants.
DEVELOPMENTS
OF MTNS
IN THE
DISTRIBUTION
In the early and mid-1980s, the major difference
between MTNs and corporate bonds was in their
primary method of distribution: Typically, agents
placed MTNs in relatively small amounts continuously or intermittently, while underwriters placed
large, discrete amounts of corporate bonds. This
strict classification no longer applies, however. A
growing number of MTN offerings have the characteristics of traditional corporate bonds, and
15. Besides meeting the securities test, banks and savings and
loans must also have a net worth of at least $25 million. In contrast
to other investors, broker-dealers must own only $10 million of
securities.
Anatomy of the Medium-Term Note Market
regional dealers now sell a significant percentage
of MTNs. Thus, as the MTN market has matured, it
has become harder to define the securities and to
describe their mode of distribution.
765
3. Large, discrete offerings of medium-term notes in the
U.S. corporate market, 1984-92
Principal Transactions
One important change in the distribution process is
that a larger share of MTNs are now sold on a
principal basis, rather than on an agented basis. In a
principal transaction, the MTN dealer purchases an
MTN for its own account and later resells it to
investors. In a "riskless principal" transaction,
when the dealer buys the MTN, it has already lined
up an investor that has agreed to the terms of the
resale. Riskless principal transactions often involve
structured MTNs. In other principal transactions,
dealers underwrite MTNs when they have not lined
up investors but expect to do so easily and quickly.
Large, Discrete Offerings
Corporations now more often sell MTNs that are
nearly indistinguishable from corporate bond offerings. These MTN offerings typically have large
face amounts of $100 million or more, the typical
size of corporate bond offerings. They are sold on
an underwritten basis, and they often have relatively long maturities of ten or thirty years. Furthermore, announcements of such offerings appear
along with announcements of corporate bond offerings in financial publications. In 1992, thirty-one
corporations issued $7.14 billion of MTNs in large,
discrete, underwritten offerings, compared with less
than $1 billion between 1983 and 1989 (chart 3).
Despite the similarities to corporate bonds, these
large, discrete, underwritten securities technically
are MTNs because they are issued from MTN shelf
registrations. To most investors, this technical difference is largely irrelevant because the securities
have the essential features of corporate bonds. As a
result, the securities reportedly do not command a
yield premium relative to the yield on corporate
bonds.
As large, discrete offerings of MTNs have
become more common, the distinction between
MTNs and corporate bonds has blurred. As a result,
the arguments for financing with MTNs have
become more compelling. By setting up an MTN
program, a corporation does not give up the advantages of issuing large, underwritten securities that
typically would be accomplished with a corporate
bond offering. However, unlike a shelf registration
for corporate bonds, an MTN program gives the
corporation theflexibilityto issue in small amounts
continuously and to participate more actively in
structured transactions.
Distribution through Regional Dealers
Through the mid-1980s, the major New York
investment banks distributed nearly all MTNs to
investors. As the market has matured, regional
dealers have placed an increasing volume of
MTNs. According to market estimates, placements
through regional dealers now account for 5 to
15 percent of MTN issuance volume. In these
placements, regional dealers receive information
about issuers' offering rate schedules from MTN
agents. In turn, the regional dealers communicate
this information to their investor clients. When an
investor buys an MTN through a regional dealer,
the regional dealer receives a selling concession
from the MTN agent. Placements through regional
dealers improve efficiency in the market by broadening the investor base for MTNs. Many regional
dealers have contacts with smaller institutional
investors, such as small banks, municipalities, and
individuals with high net worth, that represent a
relatively stable source of funding.
766
Federal Reserve Bulletin • August 1993
Distribution of MTNs with Small
Denominations to "Retail" Investors
When the market first developed, most MTNs were
sold primarily to institutional investors. Indeed,
most MTN programs had minimum denominations
of $100,000, which precludes small investors,
sometimes called retail investors, from purchasing
MTNs. In addition, some issuers declined to issue
MTNs in denominations below $1 million because
bookkeeping and administrative costs become more
burdensome with smaller offerings. In recent years,
however, book-entry clearing through DTC and
advances in computer bookkeeping have decreased
the cost of issuing in small denominations. As a
result, many issuers have registered MTN programs with minimum denominations of $1,000, the
standard in the corporate bond market. Although
most MTNs are still sold to institutional investors,
the lowering of minimum denominations has
broadened the investor base to include smaller
investors. Regional dealers place a significant proportion of the smaller offerings with small institutional investors.
Several MTN programs have recently been
designed specifically to tap the retail market without significantly increasing the administrative costs
to issuers. The process of issuing retail MTNs may
differ slightly from that of MTNs sold to institutions. In one type of retail MTN program, an issuer
will post rates weekly with retail brokers. For
example, an issuer might post a rate of 4 percent
for two-year MTNs and 5 percent for five-year
MTNs. During the week that these rates are posted,
4. Distribution of offering sizes in the medium-term note
market, March 1992-June 1993
regional brokerage firms market the securities to
retail investors, who place orders in minimum
denominations of $1,000. At the end of the week,
the regional brokerage firms will contact the corporate issuer and indicate the aggregate volume of
orders for notes at each maturity, and the corporation will issue one security at each maturity. In the
example, several hundred retail investors could
place orders for MTNs with maturities of two and
five years, but the administrative costs for the corporate issuer would reflect only two issues from the
shelf registration. While this system has the potential to broaden the investor base for MTNs, the size
of the retail MTN market is still small relative to
the institutional market.
Although the size of MTN offerings has always
varied considerably, the variation has become
wider as a result of developments in the distribution of MTNs. In 1992, the size of MTN offerings
ranged from less than $5,000 to more than
$500 million (chart 4). In terms of dollar volume,
about 65 percent of MTNs had an issue size
between $5 million and $100 million. However,
several firms have issued a large volume of MTNs
with denominations of less than $5 million. While
these offerings account for less than 5 percent of
the dollar volume of total proceeds, they represent
45 percent of the number of issues.
EURO-MTNS
MTNs have become a major source offinancingin
international financial markets, particularly in the
Euro-market. Like Euro-bonds, Euro-MTNs are not
subject to national regulations, such as registration
requirements.16 Although Euro-MTNs and Euro-
Percent of total
• Number of issuances
SOURCE. The Depository Trust Company.
16. Bonds and MTNs may be classified as either domestic or
international. By definition, a domestic offering is issued in the
home market of the issuer. For example, MTNs sold in the United
States by U.S. companies are domestic MTNs in the U.S. market.
Similarly, MTNs sold in France by French companies are domestic
MTNs in the French market. Bonds and MTNs sold in the international market can be further classified as foreign or Euro. Foreign
offerings are sold by foreign entities in a domestic market of
another country. For example, bonds sold by foreign companies
and sovereigns in the U.S. market are foreign bonds, known as
"Yankee bonds." Euro-bonds and Euro-MTNs are international
securities offerings that are not sold in a domestic market. As a
practical matter, statisticians, tax authorities, and market participants often disagree about whether particular securities should be
classified as domestic, foreign, or Euro.
Anatomy of the Medium-Term Note Market
bonds can be sold throughout the world, the major
underwriters and dealers are located in London,
where most offerings are distributed.
Although the first Euro-MTN program was
established in 1986, the market represented a minor
source of financing throughout the 1980s. In the
1990s, the Euro-MTN market has grown at a phenomenal rate, with outstandings increasing from
less than $10 billion in early 1990 to $68 billion in
May 1993 (chart 5). New borrowers account for
most of this growth, as a majority of the 190
entities that have established Euro-MTN programs
did so in the 1990s. As in the U.S. market, flexibility is the driving force behind the rapid growth of
the Euro-MTN market. Under a single documentation framework, an issuer with a Euro-MTN program has great flexibility in the size, currency
denomination, and structure of offerings. Furthermore, reverse inquiry gives issuers of Euro-MTNs
the opportunity to reduce funding costs by responding to investor preferences.
The characteristics of Euro-MTNs are similar,
but not identical, to MTNs issued in the U.S. market. In both markets, most MTNs are issued with
investment-grade credit ratings, but the ratings on
Euro-MTNs tend to be higher. In 1992, for example, 68 percent of Euro-MTNs had Aaa or Aa
ratings, compared with 13 percent of U.S. corporate
MTNs. In both markets, most offerings have maturities of one to five years. However, offerings with
maturities longer than ten years account for a
smaller percentage of the Euro-market than of the
U.S. market. In both markets, dealers have committed to provide liquidity in the secondary market, but by most accounts the Euro-market is less
liquid.
In many ways, the Euro-MTN market is more
diverse than the U.S. market. For example, the
range of currency denominations of Euro-MTNs is
broader, as would be expected. The Euro-market
also accommodates a broader cross-section of borrowers, both in terms of the country of origin and
the type of borrower, which includes sovereign
countries, supranational institutions, financial institutions, and industrial companies. Similarly, EuroMTNs have a more diverse investor base, but the
market is not as deep as the U.S. market.
In several respects, the evolution of the EuroMTN market has paralleled that of the U.S. market.
Two of the more important developments have
767
5. Euro-MTNs outstanding, January 1990-May 1993
Billions of U.S. dollars
/
60
40
20
1
1
1990
1991
1992
SOURCE. Websters Communications International.
1
1
1993
been the growth of structured Euro-MTNs and the
emergence of large, discrete offerings. Structured
transactions represent 50 percent to 60 percent of
Euro-MTN issues, compared with 20 percent to
30 percent in the U.S. market. In the Euro-MTN
market, many of the structured transactions involve
a currency swap in which the borrower issues an
MTN that pays interest and principal in one currency and simultaneously agrees to a swap contract
that transforms required cash flows to another currency. Most structured Euro-MTNs arise from
investor demand for debt instruments that are
otherwise unavailable in the public markets. To be
able to respond to investor driven structured transactions, issuers typically build flexibility into their
Euro-MTN programs. Most programs allow for
issuance of MTNs with unusual interest payments
in a broad spectrum of currencies and with a variety
of options.
Large, discrete offerings of Euro-MTNs first
appeared in 1991, and about forty of these offerings
occurred in 1992. They are similar to Euro-bonds
in that they are underwritten and are often syndicated using thefixed-pricereoffering method. As a
result of this development, the distinction between
Euro-bonds and Euro-MTNs has blurred, just as
the distinctions between corporate bonds and
MTNs has blurred in the U.S. market.
The easing of regulatory restrictions by foreign
central banks has played an important role in the
growth of the Euro-MTN market. For example,
over the past year MTNs denominated in deutsche
marks have emerged as a major sector in the Euromarket as a result of regulatory changes made by
the Bundesbank in August 1992. Under the previ-
768
Federal Reserve Bulletin • August 1993
ous rules, foreign borrowers could only issue debt
denominated in deutsche marks through German
subsidiaries or other German financial firms, and
maturities could not be shorter than two years.
Debt denominated in deutsche marks also had to be
listed on a German exchange, and these offerings
were subject to German law, clearing, and payment
procedures. These rules effectively precluded issuers from establishing multicurrency Euro-MTN
programs with a deutsche mark option.
In the August 1992 deregulation, the Bundesbank removed the minimum maturity requirement
on debt denominated in deutsche marks issued by
foreign nonbanks, and it eliminated or simplified
issuance procedures for all issuers. Although the
new rules require that a "German bank" act as an
arranger or dealer, the definition is broad enough to
include German branches and subsidiaries of foreign banks. The arranger is required to notify the
Bundesbank monthly of the volume and frequency
of issues denominated in deutsche marks. As a
result of the Bundesbank's deregulation, from 1991
to 1992, the share of Euro-MTN offerings denominated in deutsche marks increased from 1.4 percent to 4.8 percent, while the volume of issuance
in deutsche marks rose from $268 million to
$1.69 billion. Other central banks have instituted
similar liberalizations that may result in rapid
growth of MTNs denominated in other currencies,
such as the Swiss franc and the French franc.
OUTLOOK FOR THE MTN MARKET
Few innovations in finance have been as successful
as the medium-term note. Its success derives from
its remarkable adaptability to the needs of both
borrowers and investors. The success can be measured by the number of borrowers, the diversity of
note structures, and the amount of outstanding
MTNs, all of which have increased dramatically
over the past decade.
The adoption of SEC Rule 415 in 1982 was the
key event that removed the regulatory impediments
to continuous offerings of corporate notes. Other
regulatory changes, such as SEC Rule 144A and
liberalizations by European central banks, have
been instrumental in the development of new
sectors in the MTN market. As a result of these
regulatory changes, financial markets have become
more efficient. In 1992, the SEC eased restrictions
on the types of securities eligible for shelf registration. As a result of this ruling, asset-backed MTNs
may emerge as the next major growth sector in the
public MTN market.
•
769
Industrial Production and Capacity Utilization
for May 1993
Released for publication June 16
Industrial production increased 0.2 percent in May,
a rise that matched the revised gains for March
and April; the average monthly increase from
October through February was about 0.7 percent.
At 110.4 percent of its 1987 annual average, total
industrial production was 3.5 percent above its
year-ago level. Utilization of industrial capacity, at
81.6 percent, has been little changed since
February.
When analyzed by market group, the data show
Industrial production indexes
Twelve-month percent change
Twelve-month percent change
Capacity and industrial production
Ratio scale, 1987 production = 100
All series are seasonally adjusted. Latest series May. Capacity is an index of potential industrial production.
Ratio scale, 1987 production = 100
770
Federal Reserve Bulletin • August 1993
Industrial production and capacity utilization 1
Industrial production, index, 1987 = 100
Percentage change
1993
Category
r
19932
r
Feb.'
Mar.
Apr.
Mayf
Total
109.9
110.1
110.2
r
Feb.
r
1
Mar.
Apr.
MayP
110.4
Previous estimate
109.9
109.9
109.2
108.5
131.7
97.5
110.9
109.5
109.5
108.4
134.2
96.0
111.3
109.6
• 108.3
134.5
96.7
Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities
110.5
113.8
106.4
95.9
117.5
110.7
114.0
106.7
95.3
117.8
111.2
111.4
114.8
107.3
96.9
113.4
3.5
110.0
Major market groups
Products, total*
Consumer goods
Business equipment .
Construction supplies
Materials
May 1992
to
May 1993
108.8
133.2
96.3
110.9
111.6
114.6
107.1
96.5
113.8
.6
.9
.4
2.8
.5
.3
.0
.2
1.1
-.3
-1.3
-.3
.4
.0
3.7
2.4
10.2
1.4
3.3
.4
.5
.3
1.3
-3.4
.0
-2.4
4.2
4.1
5.8
1.9
-1.9
2.0
MEMO
Capacity utilization, percent
Average,
1967-92
Low,
1982
High,
1988-89
1992
1993
May
Feb.r
Mar.r
Apr.r
May?
Capacity,
percentage
change,
May 1992
to
May 1993
Total
81.9
71.8
84.8
80.1
81.5
81.6
81.6
81.6
1.6
Manufacturing
Advanced processing
Primary processing ..
Mining
Utilities
81.2
80.7
82.2
87.4
86.7
70.0
71.4
66.8
80.6
76.2
85.1
83.3
89.1
87.0
92.6
79.1
77.5
82.6
87.8
84.9
80.5
79.0
84.3
85.8
88.9
80.6
79.3
83.8
85.3
89.0
80.8
79.4
84.1
86.5
86.0
80.8
79.4
84.3
86.9
85.6
1.8
2.2
.8
-.9
1.2
1. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
2. Changefrompreceding month.
that the output of durable consumer goods declined
1 percent, as assemblies of motor vehicles fell back
and the production of other durable consumer
goods, on balance, was unchanged. Overall, the
production of consumer durables, which rose
strongly at the end of last year, has changed little
since January. The output of nondurable consumer
goods increased 0.2 percent in May, a move reflecting gains in the output of consumer chemicals. The
production of business equipment rose 0.3 percent,
a much weaker advance than in March and April.
The output of industrial equipment and computers
continued to climb, but production of other business equipment weakened. The production of transit equipment fell more than 1 Vi percent; the output
of other equipment, which increased rapidly from
February to April, was little changed. Within intermediate products, construction supplies showed
widespread increases and rose 0.7 percent, a
3. Contains components in addition to those shown,
r Revised,
p Preliminary.
rebound from their declines in the previous two
months. The output of products has shown little
change over the past two months, but the production of industrial materials increased 0.4 percent in
April and 0.3 percent in May. Gains in the production of computer-related parts and in iron and steel
led the advance of 0.5 percent in the output of
durable goods materials. The output of nondurable
goods materials rose 0.2 percent, as chemical materials strengthened and paper materials weakened.
Energy materials edged down because of a strike in
coal mining.
When analyzed by industry group, the data show
that production in manufacturing increased 0.2 percent in May; excluding motor vehicles, the gain
was 0.3 percent. Capacity utilization in manufacturing was unchanged at 80.8 percent, a level about
Vi percentage point below its 1967-92 average.
Production gains in many areas pushed the utiliza-
Industrial Production and Capacity Utilization
tion in primary-processing industries up 0.2 percentage point, to 84.3 percent, about 2 percentage
points above its long-run average; operating rates
in lumber, steel, and textiles were above their longrun averages. The utilization rate at advancedprocessing industries, on balance, was unchanged.
At 79.4 percent, the utilization rate for this group
of industries was still below its 1967-92 average.
111
The output at mines increased 0.5 percent,
despite the strike-related decline in coal production, because of increased extraction of crude oil
and sharp gains in oil and gas well drilling. The
output at utilities, which has been quite volatile in
recent months, declined 0.3 percent in May; over
the past year, production at utilities has risen about
2 percent.
•
772
Statements to the Congress
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Financial Institutions Supervision, Regulation and Deposit Insurance of the Committee on Banking, Finance and
Urban Affairs, U.S. House of Representatives,
June 22, 1993
I am pleased to appear before the subcommittee
on behalf of the Federal Reserve Board to discuss issues associated with interstate banking.
For many years, the Board has believed that full
interstate banking would benefit bank customers
and lead to a stronger and safer banking system.
Although we have concerns about certain specific provisions of the bills before you, we
strongly support the thrust of these legislative
initiatives. I would like to explain the reasons for
our support and to evaluate the concerns voiced
by the critics of interstate banking. To assist the
subcommittee in its deliberations, the appendixes to my statement provide an up-to-date
summary of state laws regarding interstate banking, a discussion of recent trends, and several
statistical tables that provide relevant information. 1
Interstate banking is now a reality and has
been for some time. For years, both domestic
and foreign banks have maintained loan production offices outside their home states, have issued
credit cards nationally, have made loans from
their head offices to borrowers around the nation
and the world, have solicited deposits throughout
the United States, have engaged in a trust business for customers domiciled outside the banks'
local markets, and—through bank holding companies—have operated mortgage banking, consumer finance, and similar affiliates without
geographic restraint. Since the early 1980s,
1. The attachments to this statement are available from
Publications Services, Board of Governors of the Federal
Reserve System, Washington, DC 20551.
moreover, the individual states have modified
their statutes to permit—under the Douglas
Amendment to the Bank Holding Company
Act—out-of-state bank holding companies to
own banks within their jurisdiction. Indeed, today only Hawaii prohibits bank ownership by
out-of-state bank holding companies.
Although state legislatures have supported interstate banking and more than one-fifth of domestic banking assets are already held in banks
controlled by out-of-state bank holding companies, the Board believes that congressional action is needed. Our dual banking system has a
desirable genius for resisting governmentimposed uniformity, but the large number of
significant differences among the states impedes
the interstate delivery of services to the public
and reduces the efficiency of the banking business. The differences in state laws are discussed
in the first appendix to this statement, but notable examples include restrictions on the home
state of banking organizations allowed to enter
some states, reciprocity requirements in some
other states, the prohibition of de novo entry,
and variable caps on the deposit shares of new
entrants in still other states. In short, the states
have made clear that they accept—and perhaps
prefer—interstate banking, and their legislatures
have made interstate banking a substantial reality
today, but actions at the state level have resulted
in a hodgepodge of laws and regulations that
permit interstate banking in an inefficient and
high-cost manner.
Restrictions on both intrastate and interstate
banking were imposed in an era in which commercial banks were the dominant provider of
financial services to households and businesses.
These restrictions were clearly intended to limit
competition and thereby insulate local banks
from market pressures. Over time, branching and
other geographic restraints became part of the
totality of regulations designed to protect bank
profits through limitations on entry and deposit
Statements
rate competition. In recent years, however,
banks have seen their market position eroded by
nonbank providers of financial services that are
not subject to bank-like regulation. Indeed, the
unwinding of the historically protected position
of banks, such as the removal of deposit rate
ceilings, has proceeded on most fronts as a
lagged response to market developments that had
themselves been encouraged by those same restraints on banks. Attempts to maintain antiquated geographic restrictions will only protect
inefficient banks, disadvantage consumers of
bank services (particularly those like small businesses that still have relatively few alternative
sources of credit), encourage the entry of less
regulated nonbank competitors, and increase the
stress on the safety net as the long-run viability
of banks is undermined.
Action to provide more uniform rules for interstate banking would provide several public
benefits. First, reducing obsolete barriers to entry would increase actual and potential competition in the provision of financial services to those
customers that for one reason or another have, at
best, very limited access to out-of-market banks,
nonbank lenders, or the securities markets. Bank
customers would benefit from the resulting lower
prices for credit, higher rates on their deposits,
and improved quality and easier access to banking and related services. In addition, a significant
proportion of our citizens live in areas in which
state borders intersect; interstate banking would
provide households and businesses in these regions with significantly increased convenience in
conducting their banking business.
Second, greater opportunities for geographic
diversification through interstate banking could
help restore a level of stability to the banking
system that once was accomplished, in part,
through protection of local banks from competition. Although increased competition from nonbanks has undermined the protection intended to
be provided to banks through controlled entry
and geographic constraints, those same restrictions have made it more difficult for banks to
diversify their risks and seek out new opportunities. Thus, many banks operating in a region that
has experienced a local economic contraction
have been neither protected by limits on bank
competition nor able to avoid the disastrous
to the Congress
773
impacts of dependence on one market for both
deposits and loans. Being able to cushion losses
in one region with earnings in others would make
banks better able to contribute to the recovery of
their local economy, and more diversified banks
would expose the federal safety net to fewer
losses. Clearly, greater geographic diversification would have provided more stability over the
past decade to banks operating in the agricultural
areas of the Midwest, the oil patch of the Southwest, and the high tech and defense regions of
New England and California. In short, the elimination of geographic restraints would provide an
important tool in diversifying individual bank
risk, thus providing for stability of the banking
system and improving the flow of credit to local
economies under duress.
Third, interstate banking would facilitate the
allocation of resources to regions that offer both
safety and higher return and would assist in the
reduction of excess banking capacity. We hope
that the United States will continue to be a
dynamic economy. Such economies grow more
rapidly but are characterized by both expanding
and declining industries and by expanding and
temporarily declining regions. Banks pinned by
artificial geographic restrictions to local areas
that experience difficulties have no choice but to
pull in their horns, as it were, to protect their
own viability. Only through interbank credit extensions and loan participations can they diversify their portfolio to move their assets to borrowers unaffected by the depressed local
economy. Indeed, many of these institutions no
doubt tend to have lower loan-to-deposit ratios in
part because of their inability to find bankable
local credits. Note that, given banks' long-run
interest in geographic diversification, banking
offices would still remain in regions experiencing
difficulty but would be in a stronger position to
finance local expansion when growth opportunities return.
The benefits from removal of restrictions on
geographic expansion could occur through either
the acquisition or de novo chartering of bank
subsidiaries of bank holding companies headquartered in another state or through the establishment of branches of a bank in another state.
All the interstate banking laws enacted by the
states provide for interstate banking through
774
Federal Reserve Bulletin • August 1993
bank subsidiaries of bank holding companies,
although some states permit interstate banking
through branches for state nonmember banks.
Two of the three bills before the subcommittee,
H.R.2235 and H.R.459, would authorize interstate banking on a nationwide basis through bank
subsidiaries. This step removes the last few
vestiges of restrictions on interstate banking
through bank subsidiaries, and the Board
strongly supports such statutory change. The
Board also supports removing the McFadden
Act's restrictions on interstate branching for
national and state member banks. This removal
would permit banks to choose between alternative combinations of subsidiary banks and
branches in the manner that best balances their
own perceived costs and benefits.
The evidence from virtually all of the limited
number of studies that compare interstate banking to branching suggests that, on average, both
delivery systems have about the same cost structure. However, such evidence is also consistent
with the view that for some banks branching may
have the lowest cost structure. Indeed, as a
matter of logic, the Board believes that the cost
savings from elimination of separate boards of
directors, separate management teams, and separate capitalization for banks that could be
branches would be significant for some organizations. In any event, we believe that no good
public policy purpose is served by restraining the
freedom of choice of individual banking organizations, which know best what is the least cost
operating structure for them. We therefore applaud the provisions of H.R.256 and H.R.2235
that would permit, immediately upon enactment,
interstate banking offices to be converted to
branches, should a banking organization choose
to do so.
We also support H.R.2235's approach that
would extend interstate branching powers to
only those banks that are at least adequately
capitalized and adequately managed (which we
assume means having acceptable supervisory
ratings). In the Board's statements during the
drafting of and debate about the Federal Deposit
Insurance Corporation Improvement Act of 1991
(FDICIA), the Board supported the principle of
expanded activities only for strongly capitalized
banks. In drafting recent regulations, the banking
agencies have attempted, when possible, to apply this principle. Examples include the reduced
documentation requirement on small and
medium-sized business loans and the Board's
amendments to Regulation F implementing section 308 of FDICIA with regard to interbank
liabilities. A policy that rewards stronger banks
is a desirable supplement to the regulatory limits
imposed on weaker banks. However, the subcommittee may wish to consider amending this
provision of H.R.2235 to permit the banking
agencies to authorize a less than adequately
capitalized bank to expand into another state if it
would, in the agency's judgment, improve the
financial condition of the bank.
State supervisors would no doubt prefer interstate operations through separate banks in each
state because it is much easier for them to
supervise the activities of a single organization in
their jurisdiction. It seems to the Board, however, that the criterion of ease of regulation for
states is only one part of a broader cost-benefit
test. So long as safety and soundness are not
compromised, efficiency and least cost are far
more important factors on which to base policy.
We applaud the solution to this problem proposed in H.R.2235 and in the Nationwide Banking and Branching Act, H.R.459. As we understand it, under the provisions of both bills, the
state in which branches of an out-of-state bank
operate would negotiate a supervisory agreement
with the supervisor of the bank's home state that
is acceptable to both states and to the relevant
primary federal regulator. Failure to reach agreement would require that the primary federal
supervisor conduct examinations without deferring to the state authorities. Such an approach
creates desirable incentives for the states to
reach reasonable accord.
When interstate banking is implemented
through bank subsidiaries, the bank in each state
has all the powers that go with its charter—
national or state. However, should interstate
banking occur through branches, legislation must
clarify whether those branches must limit their
activities to those permitted to banks chartered
in their host state, to activities permitted to
banks in their home states, or—for national or
state banks—to the powers granted to national
banks. The issue of the powers that interstate
Statements
branches should be permitted to exercise requires balancing several competing concerns,
including preserving the dual banking system and
creating incentives that could make certain types
of bank charters more attractive than others. We
read all three bills before the subcommittee as
achieving the same balancing of the conflicting
concerns. All the bills provide that interstate
branches of state-chartered banks may not engage in any activities in the host state that are not
permitted for banks chartered by the host state.
National banks would still have the same powers
regardless of which states they were in, except
that, as at the present time, and consistent with
the McFadden Act, branching within the host
state would be limited by the laws of the host
state. These provisions seem like a reasonable
approach.
The interstate operations of foreign banks doing business in the United States raise issues
similar to those for U.S. banks operating across
state lines. It has been a long-standing policy of
the U.S. government to grant foreign banks
treatment equivalent to that given to U.S.
chartered banks—so-called national treatment.
In the present context, such an approach would
permit foreign banks to operate interstate on the
same basis as U.S. banks, and it is this position
that the Board supports. We believe that the
provisions of H.R.2235 and H.R.459 that require
the banking agencies to consult the Treasury on
the foreign bank's capital equivalency before
approval of the first branch of the foreign bank
are inconsistent with national treatment, as well
as unnecessary. The Board recommends that
these provisions be dropped. In addition, the
Board believes that the requirement in H.R.2235
that branching be permitted only through a U.S.
subsidiary bank if that structure is needed to
verify adherence to U.S. standards by a foreign
bank is also unnecessary. The Foreign Bank
Supervision Enhancement Act of 1991 already
provides that a foreign bank may not establish a
branch in the United States unless its capital is
determined to be equivalent to that required of a
U.S. bank. Consequently, the Board recommends that this provision also be deleted.
Whether interstate banking is achieved
through bank subsidiaries, bank branches, or
both, and regardless of how powers are exported
to the Congress
775
from the home state to the branching host state,
the arguments used by opponents of interstate
banking must be carefully reviewed.
The first concern is that interstate banking
would result in undue concentration—and ultimately higher loan rates and lower deposit
rates—as large out-of-state banks drive small
in-state banks out of business. In-state market
evidence simply does not support this contention. All the relevant evidence indicates that
small banks generally survive entry by large
out-of-market banks and are most frequently
more profitable than the entrant. Similar evidence indicates that new large bank entrants to
local markets, whether by de novo or by acquisition, are able to expand market share by only
modest amounts, if at all.
In the 1970s, for example, when statewide
branching was authorized in New York State,
several large New York City banks sought an
upstate presence by acquiring small banks in
these markets. By the early 1980s, the acquired
banks had gained on average less than one percentage point in market share, with the largest
gain less than three percentage points. The acquired banks or branches continue to have small
market shares or they have been sold to local
banks, as the New York City banks have exited
the market. Experience in California also illustrates the ability of small banks to remain viable
in the face of competition from much larger
organizations. California has permitted unrestricted statewide branching since 1927, and several of the state's banking organizations, most
notably BankAmerica, have operated extensive
branch networks for years. In spite of these
extensive branch banks, California continues to
have many successful independent banking organizations. For example, as of year-end 1992, 101
of the 395 banking organizations in California had
less than $50 million in assets. Moreover, over
the period 1981 through 1991, about 311 de novo
banks (almost 11 percent of the U.S. total of
de novo banks) began operation in this unlimited
branching state.
Besides their difficulties in winning customers
away from existing banks, entrants by acquisition often are soon confronted with competition
from a de novo bank organized by local citizens,
at times led by the former managers of the bank
776
Federal Reserve Bulletin • August 1993
acquired. The potential for entry—both de novo
and by acquisitions by other banks outside the
market—plus evidence of continued small bank
success suggest it is unlikely that consumer harm
would come from interstate banking. Although
more than 5,000 banks have been absorbed by
merger since 1979, about 3,500 new banks have
been chartered. In addition, although almost
10,500 branches have been closed, 24,000 new
ones have been opened during that period. The
vast majority of local banking markets in the
United States are incredibly dynamic and sensitive to consumer demand, and interstate banking
seems likely to make them more so. The concern
that interstate banking would lead to excessive
concentration in local banking markets is mitigated further by the fact that antitrust enforcement in banking focuses on maintaining competitive local markets. Concentration ratios have
not increased in local markets despite the substantial overall consolidation in banking in recent
years. Local competition has been maintained, in
part, because many bank mergers have been
between firms operating in different local markets. In addition, increased concentration has
been avoided by factors already noted: antitrust
laws, limited ability of new large banks to increase market share, and continued vitality of
small local competitors.
The importance of local markets and the evidence of little change in local market concentration suggest that attempts to ensure competition
through statewide or national deposit caps are
unnecessary at best and may, in fact, be anticompetitive to the extent that they prohibit entry.
Indeed, the 30 percent individual bank cap that
H.R.2235 would permit states to authorize would
protect seventeen banks in thirteen states from
out-of-state acquisitions; seven of the seventeen
are already held by out-of-state banking organizations. The Board would recommend deletion
of the imposition of statewide and national deposit share caps as contained in the Interstate
Banking Efficiency Act. Similarly, H.R.2235 discourages entry by authorizing states to restrict
entry only to acquisitions of banks or branches
that are at least five years old. We see no public
benefit from such restrictions, although entry is
most likely to be by acquisition in any event.
Another concern of some is that new entrants
will vacuum up local deposits and channel them
to out-of-market loans or that managers brought
into local markets will be insensitive to, or have
no authority to adjust to, local demands. However, it is important to recall that an insured bank
must fulfill its Community Reinvestment Act
(CRA) responsibilities in all the markets in which
it operates. Moreover, the ease of entry, just
discussed, should soften concerns that out-ofmarket entrants will ignore local customers. If a
local branch does not meet both the deposit
needs and credit demands of the community, it
will not succeed and it will attract a rival that
will.
However, because the Board realizes that the
expansion of nationwide banking raises several
issues regarding the impact on local community
credit needs, it does support provisions of
H.R.2235 and H.R.459 that would amend the
CRA to require that performance of interstate
institutions be assessed on a statewide or metropolitan area basis. This approach would maintain
the concept embodied in the CRA that insured
banks should be evaluated on overall performance without imposing arbitrary or costly regulatory requirements at the level of the individual
branch.
On the other hand, imposing a regulatory regime that requires that individual out-of-state
branches meet special credit availability requirements (H.R.2235 and H.R.459), or that establishes numeric tests for individual branch loan
production (H.R.2235), would represent unnecessary and burdensome regulation of interstate
branches. It would also be duplicative and unnecessary to impose new credit availability requirements on branches that are simply replacements for existing interstate banks of the same
organization (H.R.2235). Evaluating the statewide or metropolitan area CRA performance of
an out-of-state institution would, in the Board's
view, provide adequate information to determine
that an interstate institution is meeting community needs in the markets it serves.
Finally, in considering the needs of local markets, the Congress should consider the fact that
large banks have higher loan-to-deposit ratios
than do small banks. This could imply that large
banks entering new markets would make both
more in-market loans and more out-of-market
Statements
to the Congress
30
loans. Many assume that most of the loans
would, in fact, be made outside the community.
However, as I noted, banks must both meet their
CRA requirements and service their customers
to remain competitive in the market. It should
also be kept in mind that small, independent
banks also export funds: They are relatively large
lenders to other banks through the federal funds
and correspondent deposit markets and purchase
relatively more Treasury and out-of-market state
and local bonds than large banks.
In sum, interstate banking promises wider
household and business choices at better prices
and, for our banking system, increased competitive efficiency, the elimination of unnecessary
costs associated with the delivery of banking
services, and risk reduction through diversification. By the record, most community banks are
already providing services to their customers so
efficiently that they have little to fear from outof-market rivals. Those that are not providing
such services should worry because interstate
banking will—and should—mean either their displacement by a more efficient competitor or their
rising to the competitive challenge and improving
their own efficiency.
•
Statement by Richard F. Syron, President, Federal Reserve Bank of Boston, before the Subcommittee on Financial Institutions Supervision, Regulation and Deposit Insurance of
the Committee on Banking, Finance and Urban Affairs, U.S. House of Representatives,
June 22, 1993
ing bank management to choose a banking
structure that improves its ability to diversify
and that reduces its costs, banks will realize
efficiency gains that will benefit borrowers and
depositors alike. Alterations to our antiquated
banking structure are already occurring without
federal legislation. Not only do intermediaries
far removed from the customer's location provide many banking products, but, in addition, a
large number of states, including all six New
England states, have adopted interstate banking
laws. Thus, in many banking areas we already
have de facto interstate banking.
I will first describe the limited interstate banking that has been in operation in New England for
some time. Unfortunately, the expansion of New
England bank holding companies under regional
compacts has not extended much beyond the
region.
Second, I will discuss the de facto interstate
provision of many banking services that is
already in place; for example, the markets for
mortgage loans, consumer loans, and large business loans are now national in scope. Loans to
small and medium-sized businesses remain primarily limited to local markets, however, and
thus will continue to be adversely affected by
any restrictions on the flow of bank capital
across geographic boundaries.
Third, I will describe the ways in which the
recent regional economic shock has affected the
availability of credit to small and medium-sized
businesses in New England. The economic shock
would have been less severe if banks had been
I appreciate this opportunity to appear before
you to discuss the issues surrounding interstate
banking and branching. Today I will confine my
remarks to issues related to the ways that interstate banking can improve credit flows, rather
than to specific issues that are addressed in the
various legislative proposals.
Current restrictions on interstate banking and
branching are an anachronism; they reflect the
state of banking when local banks were almost
the exclusive source of loans, deposits, and
services for both businesses and individuals.
These restrictions are incongruous in the present
banking environment, in which banking products
have no geographic boundaries and are frequently provided by other financial intermediaries. The breakdown of geographic and institutional barriers is the inevitable outgrowth of
improvements in technology and in information
processing. As bank products have standardized
and the economies of scale in information processing have grown, it has become much easier
to provide cost-effective service independent of
location.
Any new legislation should seek to promote
the most efficient banking structure. By allow
778
Federal Reserve Bulletin • August 1993
better diversified through wider interstate banking and branching.
Finally, I will show that new evidence from
New England suggests that large, multistate
banks can offer improved services to borrowers
and depositors without impairing the viability of
small community banks because the markets
served by smaller banks are often quite distinct
from those in which the large banks operate.
LIMITED INTERSTATE
IN NEW
ENGLAND
BANKING
New England has had limited interstate banking
for some time. Maine first allowed nationwide
reciprocal banking in 1978 and later dropped the
requirement of reciprocity. Regional reciprocal
banking was first allowed in Connecticut in 1983,
in Massachusetts in 1984, and in New Hampshire
in 1987. All three states revised their laws in
1990, as Connecticut and Massachusetts adopted
nationwide reciprocal banking and New Hampshire adopted nationwide interstate banking
without requiring reciprocity. Agreements that
allowed regional reciprocal banking that later
converted nationwide reciprocal agreements
were adopted in Rhode Island in 1984 and in
Vermont in 1988.
The laws adopted in the mid-1980s to allow
regional mergers were utilized by many of our
largest bank holding companies. For example,
among the two largest bank holding companies in
New England, Bank of Boston has subsidiaries in
all six New England states, and Fleet Financial
Group has subsidiaries in every New England
state except Vermont. However, the period since
the more recent adoption of laws permitting
nationwide interstate banking has not been long
enough to result in substantial diversification
outside the region.
If New England's recent economic downturn
had been limited to one state, our largest holding
companies could have weathered the problem
more easily and lending activities would have
experienced less disruption. Unfortunately, the
shock was not localized within one or even a few
New England states. All six New England states
experienced a severe economic slowdown and
falling real estate prices. Although banks in New
England were diversified against very localized
shocks, even large ones were not diversified
against a widespread regional economic downturn.
The expansion of interstate banking and
branching is not likely to have much effect on
many aspects of bank lending. For example,
pools of one- to four-family residential mortgages
can be purchased from other parts of the United
States, and credit card receivables are securitized and sold nationwide. However, the market
for small to medium-sized nonresidential real
estate loans is still primarily a local market. And,
in particular, most small business loans depend
on real estate for collateral. Because these loans
cannot easily be securitized, portfolios of commercial and industrial loans tied to real estate
cannot easily be diversified. Thus, the recent
regional shock that deeply depressed real estate
prices left many New England banking institutions quite exposed.
INTERSTATE BANKING
SERVICES
Most consumers are well aware of the de facto
interstate provision of banking services. Frequently, neither the owner nor the servicer of a
residential mortgage is located in the same state
as the borrower. Similarly, consumers with good
credit ratings are likely to have access to consumer credit through a financial institution located outside the states in which they reside.
Problems with the service provided by one credit
card issuer can easily be rectified by responding
to one of the many mail solicitations for credit
cards from out-of-state banks or nonbank
sources.
The same pattern has emerged on the other
side of the balance sheet. In placing their deposits, consumers have an array of alternatives to
local depository institutions. Mutual funds and
brokerage houses provide numerous alternatives
to bank deposit accounts. The plethora of banks
offering money market and mutual fund services
indicates how substitutable many of these accounts are in a consumer's portfolio. Again,
these alternatives are frequently provided by
intermediaries located outside the consumer's
home state.
Statements
Businesses have even greater access to credit
outside their state. Large corporations often
obtain financing directly from credit markets by
issuing commercial paper and bonds. It is not
unusual for firms that are not quite large enough
to access the financial markets directly to seek
bank financing outside the confines of an individual state. In fact, because both bank management and bank regulators impose restrictions on how exposed a bank can be to a single
borrower, large borrowers may pose too large a
concentration risk to get all of their financing
from in-state banks. Thus, in states with few
large banks, large borrowers have long sought
banking relationships outside their own state
that can satisfy their loan demand without violating lending limits.
Table 1 illustrates this point by providing the
results of a 1992 loan survey by the Federal
Reserve Bank of Boston of sources of financing
for small and medium-sized businesses in New
England.1 Among those businesses that sought
short-term credit, only 55 percent of firms with
sales between $100 million and $249 million obtained all their short-term credit from a New
England-based bank. The same percentage received some or all of their short-term credit from
one the three largest bank holding companies in
New England. Thus, for many medium-sized as
well as large firms only large banks can satisfy
their lending needs, and their financing may not
only be out-of-state but also out-of-region, thus
insulating these firms from local shocks to credit
supply.
Smaller business are much more dependent
on local bank financing to meet their credit
needs. Many small businesses have neither the
collateral nor the track record to secure financing from lenders unfamiliar with their firm and
the economic environment in which they operate. Such "character lending" requires an intermediary with substantial understanding of
the local community that can only be obtained
by maintaining a presence in the area. As a
consequence, these local-bank-dependent borrowers have few alternatives should local lend1. The attachments to this statement are available from
Publications Services, Board of Governors of the Federal
Reserve System, Washington DC 20551.
to the Congress
779
ers be unwilling or unable to provide financing.
Borrowers with annual sales ranging from $10
million to $49 million depend more on banks
within the region than do larger corporations,
but they are far less likely to borrow from the
largest banking institutions. In addition, they
most frequently mentioned having no shortterm credit because their credit arrangements
had been terminated within the past two years.
REGULATORY
CONSTRAINTS
IN
BANKING
Most economics textbooks emphasize the role of
reserve requirements in restricting expansion of
bank assets and liabilities. Restrictions on capital
ratios have received much less attention, even
though currently they are having a substantial
effect on the ability of many banks to expand.
A desirable feature of an efficient financial
market is that scarce resources flow to the user
that values them most highly. Unfortunately,
there are many impediments to the flow of bank
capital. Without nationwide banking and branching, regions of the economy experiencing severe
regional shocks may be unable to attract additional bank capital when loan demand exceeds
loan supply. Informational difficulties make new
entry into a banking market particularly costly
for a bank with little familiarity with the regional
economic environment. Thus, even without regulatory impediments, the flow of bank capital is
likely to be slow. In a region in which banks
experience substantial losses, bank capital will
be restored only with long time lags. However, if
outside banks had already located branches or
affiliates in the region, they would be in a position
to quickly fill lending gaps.
The credit crunch experienced in New England
over the past two years is an example of a severe
regional economic shock that was magnified by
the impaired capital position of most New England depository institutions. Figure 1 shows bank
capital ratios for commercial banks in the United
States and in the First Federal Reserve District,
which encompasses New England. Capital ratios
for commercial banks nationwide were largely
unaffected by recession periods. However, as a
result of the bursting of the real estate bubble and
the consequent loss of bank capital, capital ratios
780
Federal Reserve Bulletin • August 1993
declined dramatically for New England banks in
1989 and 1990.
This drop in bank capital was particularly untimely because it occurred while legislators, regulators, investors, and bank management were
placing increased emphasis on improving bank
capital ratios. Banks that were trying to improve
capital ratios during a period of large loan losses
were forced to dramatically decrease their assets.
Research at the Federal Reserve Bank of Boston
has found that banks with difficulty in satisfying
capital ratios decreased their lending, particularly
to bank-dependent borrowers.
If full interstate banking and branching had
been available much earlier, these problems
would have been mitigated for two reasons.
First, many New England institutions could already have diversified outside the region. Although economic shocks that disproportionately
affected New England would still have affected
large New England institutions, the effect on
their total capital position would have been lessened. And, with their overall capital position less
impaired, they would have had a greater ability
to lend to creditworthy borrowers. Second, outside institutions would have been able to establish branches or acquire subsidiaries to meet the
demand for loans that could not be satisfied by
capital-impaired banks in that locality.
Figure 1 illustrates the advantages of interregional diversification. Although New England
banks suffered a severe capital shock, banks
nationwide experienced no substantial reduction
in capital ratios. Had some banks in other regions
had a significant presence in New England, or
had New England banks had a significant presence in other regions, capital ratios of individual
banks would have been affected less, so that
some banks would have been able to lend to
borrowers that were cut off from financing primarily because of the impaired capital of their
traditional local lender.
THE ROLE OF SMALL
BANKS
A major concern of opponents of interstate banking and branching is the continued viability of
small banks when they are forced to compete
with large multistate holding companies. Evidence from New England suggests that small
banks have no difficulty competing with their
larger brethren. Table 2 lists the twenty most
profitable commercial and savings banks in New
England over the past five years. Sixteen of the
twenty banks have less that $500 million in total
assets. Each New England state is represented,
and most of these banks face competition from
the area's largest bank holding companies, which
have affiliates throughout New England.
Small banks can profit by serving market
niches not easily satisfied by very large banks.
To manage and control a large banking organization a certain degree of standardization must
occur. Although standardization works well for
larger, low-margin loans, often it is not appropriate for smaller loans that require specific
knowledge about the management and economic circumstances of a particular business.
Small banks that are well established in the
community, and whose management is familiar
with the borrower and his business, are often in
a much better position to make loans when the
character of the borrower is a critical component of the loan.
CONCLUSION
The question is not whether we should have
interstate banking but rather the degree and the
form it will take. Many bank services are already provided interstate, and intestate acquisitions have been widespread within New England. However, the remaining artificial
constraints on the movement of bank capital
contributed to the severity of the recent credit
crunch in New England, and they continue to
place banks at a competitive disadvantage with
other financial intermediaries not so constrained. If we want to avoid future banking
problems in other regions that experience economic downturns and if we want to prevent a
further deterioration in banking in general, I
strongly urge you to adopt legislation to permit
interstate banking and branching.
•
Statements
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Subcommittee on Financial Institutions Supervision, Regulation and Deposit Insurance of the Committee on Banking, Finance and
Urban Affairs, U.S. House of Representatives,
June 29, 1993
I am here this morning to discuss recent steps
taken by the Federal Reserve, in cooperation
with the other federal bank regulatory agencies,
to reduce regulatory burden on financial institutions and to facilitate an increased flow of credit.
The regulatory burden on depository institutions
has taken on new importance after enactment of
the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA), the Federal
Deposit Insurance Corporation Improvement
Act of 1991 (FDICIA), and the evidence of
restrained lending by banks. The costs to commercial banks and to other depository institutions of adhering to banking laws and regulations
continue to grow and, despite the industry's
recent record profits, could begin to threaten the
industry's long-term competitiveness. I have testified several times in recent months on these and
related matters and would hope that the increased attention given to these topics can lead
to meaningful reductions in regulatory burden for
the banking system.
Having said that, and before discussing details
of new initiatives, I would like to emphasize the
limited ability of the regulatory agencies to encourage a pick-up in loan growth through administrative actions and also the inherent risks of
attempting to reduce regulatory burden substantially by simply changing regulatory or supervisory policies and procedures. The results of
lender surveys taken by the Federal Reserve
have consistently indicated for several years that
the slow or negative growth of bank lending has
been more a result of weak loan demand than of
any other factor.
Changes in supervisory or examination practices may help at the margin, but they are
unlikely to produce fundamental changes in
credit conditions. That is the case for many
reasons, mostly dealing with the recent recession and the need and desire of both businesses
and consumers to strengthen their balance
to the Congress
781
sheets. The large number of bank failures during the past half-dozen years also indicate that
credit standards at many banks need to be
improved. It is important, therefore, that any
regulatory policy changes designed to spur additional bank lending not weaken the fundamental supervisory process. Recent actions we
have taken have been carefully designed with
that principle in mind.
RECENT POLICY
ANNOUNCEMENTS
The federal bank regulatory agencies realized
before passage of FDICIA that their supervisory
actions may impose undue burdens on some
banks and may unnecessarily constrain bank
credit availability. Consequently, in late 1991 the
agencies issued joint statements that clarified
their examination policies regarding commercial
real estate loans and encouraged banks to work
with troubled borrowers to resolve problem
loans.
More recently, we have jointly taken numerous other efforts to reduce regulatory burden,
while still adhering to relevant banking laws and
fundamental principles of bank supervision. Several initiatives were announced on March, and
further details have subsequently been put forward, including a series of policy statements that
was issued on June 10.
March Policy
Statement
The March statement sought to improve credit
availability to small and medium-sized businesses and farms, and it covered other supervisory issues as well. Perhaps the most important
element of the statement was the announcement
of forthcoming changes to agency rules regarding the need for real estate appraisals by certified or licensed appraisers. Such appraisals,
which relate to a requirement of title XI of
FIRREA, have been controversial and costly to
banks and to their customers. If the proposed
rules are adopted, appraisals will be required
less often.
The proposed change, issued for comment on
June 10, would (1) increase the threshold amount
782
Federal Reserve Bulletin • August 1993
for which such appraisals are required from
$100,000 to $250,000, (2) expand the "abundance
of caution" exemption so that an appraisal is not
required when the value of the collateral is not
material to the decision to make the loan, and (3)
exempt from appraisals business loans of less
than $1 million when the principal source of
repayment is not the sale of, or income from, the
real estate held as collateral. These changes are
designed to reduce burdens imposed by the appraisal regulation, while still requiring appraisals
when they are needed to enhance the safety and
soundness of financial institutions.
Another important provision described a policy change that would permit strong and wellmanaged banks to set aside a limited portion of
their loans to small and medium-sized businesses. Examiners would then evaluate that selected portfolio of loans only on the basis of its
performance and not on the level of loan documentation.
This change was intended to foster an environment in which banks could extend more
so-called "character" loans to businesses with
which they were familiar and to base their
lending decisions principally on professional
judgments about the borrower's overall creditworthiness without being exposed to examiner
criticisms about the specific nature or lack of
documentation about the borrower. This
change was consistent with an overall effort by
the agencies to refocus supervisory attention to
areas in which risks are high and to reduce
regulatory burden to areas in which risks are
less, such as with strong, well-managed banks.
It was also part of a broad effort to increase the
availability of credit to low- and moderateincome neighborhoods and disadvantaged rural
areas.
Final elements of the March statement committed the agencies to enhance their examination appeals procedures and to take other steps
to improve the examination process, reduce
regulatory uncertainty, review certain accounting policies, and, in general, work to reduce
regulatory burden. Some of these initiatives and
others were expanded through a series of joint
statements issued earlier in June. Because they
are more recent actions, I will discuss them in
greater detail.
June Policy
Statements.
The series of June 10 policy statements dealt with
various issues that were mostly intended to reduce impediments to the extension of credit and,
in some cases, to conform supervisory and examination procedures to newly adopted accounting standards. The regulatory agencies also issued important new initiatives that were intended
to detect and deter discriminatory lending practices. Finally, the agencies also reaffirmed earlier
agreements to coordinate their examinations.
Much recent tightening of credit standards by
banks and the subsequent reduction of bank
credit to many borrowers can be traced to widespread problems in commercial real estate markets. In many cases, these problems resulted
from weak underwriting standards that accommodated much overbuilding throughout the
United States and created serious financial difficulties and even failures at some banks. Even
institutions that were not materially affected by
problem real estate credits were prompted by
events to review their own lending standards in
light of new developments and economic conditions. Similarly concerned by these events, many
examiners also began to look more closely and to
review more critically the strength of commercial
real estate loans, in particular, and entire loan
portfolios, in general. All of these factors
prompted a tightening of the terms of lending and
a subsequent reduction in the availability of
credit.
In large part, many of these changes represented a reasonable and appropriate response to
recent events and to the reduced ability of some
banking institutions to incur additional risks.
However, to some extent, they reflected an overreaction by both bankers and bank examiners
that has required the banking agencies to review
their supervisory policies and to clarify them
when necessary.
Real Estate Loans
Because real estate loans have contributed to
many of the recent problems within the banking
industry, several of our policy statements have
focused on that topic—in particular to problems
Statements
in accounting for and evaluating real estate collateral. These problems may be especially important to the financing of small and medium-sized
businesses, which often rely heavily on real
estate collateral to support bank loans.
One of the June 10 statements reaffirmed a
November 1991 statement that emphasized it
was not regulatory policy to value real estate
collateral that underlies real estate loans on a
liquidation basis. Rather, the evaluation should
be based on the borrower's willingness and ability to repay and on the income-producing capacity of the underlying collateral over time.
A decline in the collateral value below the
book value of the loan does not require an
automatic write-down or increased loss reserve if
the loan is performing and the cash flow appears
adequate to service the outstanding balance. The
portion of the loan balance that is adequately
secured by the value of the collateral should
generally be classified no worse than "substandard." Moreover, when an institution has taken
a sufficient charge-off so that the remaining recorded balance of the loan is being serviced and
its collection is reasonably assured, classification
of that balance may not be appropriate.
The 1991 statement and the most recent reaffirmation intend to ensure that commercial real
estate credits are evaluated in a consistent, prudent, and balanced fashion. The Federal Reserve
will continue to ensure that these policies are
appropriately implemented.
Other June statements relating to real estate
credits involve the accounting treatment of loans
collateralized by real estate and, more generally,
the reporting of nonperforming loans. The collateralized loan issue relates to the matter of "insubstance" foreclosures and to the current accounting practice of transferring such loans to
the "Other Real Estate Owned" (OREO) category with recognition of appropriate losses. This
practice, which had been required under generally accepted accounting practices (GAAP), has
increased the volume of OREO balances at banks
and may have discouraged lenders from working
with borrowers that are encountering cash flow
or other financial problems.
Recently, the Financial Accounting Standards
Board has issued Statement No. 114, "Accounting by Creditors for Impairment of a Loan" and
to the Congress
783
has clarified that creditors should report a loan as
OREO only when they have taken possession of
the collateral. The policy statement applied this
recent FASB change in accounting standards to
the banking industry's regulatory reports. Although depository institutions must continue to
recognize losses on real estate loans that meet
the standards of in-substance foreclosure, the
Federal Reserve believes that avoiding the designation of OREO—combined with other initiatives being taken—will reduce impediments to
additional extensions of credit.
In a related area, the agencies have reached
several agreements relating to "special mention"
assets, which are assets that demonstrate weaknesses but that are not weak enough to warrant
classification. We now have a common definition
for special mention assets and will not assign
loans to that status solely on the basis of documentation exceptions that are not material to the
repayment of the asset. Moreover, the Federal
Reserve will continue its long-standing practice
of not including these assets in ratios used to
measure asset quality.
Other Accounting
Changes
The agencies have also revised the criteria required for banks to remove loans from nonaccrual status. Currently, banks must place loans
for which payments are past due for ninety days
or more on a nonaccrual status and must maintain that status until all overdue payments are
received and full collectibility is assured. This
requirement has sometimes overstated the severity of problem assets by failing to recognize
losses that banks had taken on the loans and
subsequent improvements in the ability of borrowers to service the remaining balance. In turn,
the continued labeling of such loans as nonaccruing loans places pressure on banks to increase
loan-loss reserves or capital levels and may tend
to discourage additional loan growth.
Effective immediately, banks may return nonaccruing loans to an accruing status under specified and less restrictive conditions than were
previously required. Essentially, a bank may do
so if a sufficient amount of a restructured loan
has been charged off and the borrower's pros-
784
Federal Reserve Bulletin • August 1993
pects and recent payment experience indicate an
ability to perform under the restructured agreement. Loans that have not been formally restructured and partially charged off may also be
restored to accrual status if required payments
are being made and full repayment is expected
under the originally contracted terms.
Coordinating
Examinations
The policy statement that relates to coordinating
interagency examinations is principally intended
to address costs to the industry of multiple or
duplicative examinations. As required by law,
various parts of a consolidated banking organization must be examined by different agencies—
the Office of the Comptroller of the Currency for
national banks; the FDIC for state nonmember
banks; and the Federal Reserve in the case of
state member banks, parent holding companies,
and nonbank subsidiaries. Reflecting this supervisory structure, for many years the banking
agencies have had supervisory procedures designed to avoid, or at least to minimize, overlapping efforts by relying on examinations or inspections conducted by an entity's primary regulatory authority.
Nevertheless, industry trends have increased
the real and perceived overlap in supervisory
procedures. Banking organizations have become
more complex and integrated in conducting their
activities and have often given less consideration
to the legal structure of their businesses. This
pattern sometimes requires that examiners of one
entity discuss or evaluate activities conducted
elsewhere in the consolidated organization to
understand and identify the risks. This situation
increases the need for coordination among the
banking agencies.
Looking forward, the requirement of FDICIA
that the agencies conduct full scope, on-site
examination of each depository institution every
year may increase the perception of overlapping
examinations and greater regulatory burden. Although annual examinations have been common
for institutions that the Federal Reserve supervises, the legal requirement may increase the
visibility and on-site presence of examiners at
institutions that other agencies supervise.
To reduce or minimize regulatory burden on
the banking system that can arise from multiple
examinations, the agencies have clarified and
reaffirmed the agreement that the federal regulatory agency that has primary supervisory authority for that entity will conduct the examination or
inspection of a bank or bank holding company.
Other agencies will rely on the reports of that
agency and may, when necessary, participate in
the examination or inspection by the primary
regulator. Although coordinated examinations
may not be practical in all cases, particular
emphasis for implementing this program will be
placed on large or weak institutions. The program also covers other information-sharing arrangements with both federal and state banking
supervisors.
On a separate, but related, issue, the Federal
Reserve is reviewing the merits of conducting on
a more coordinated basis the various "special
purpose" examinations, such as those for trust
activities and computerized systems (EDP). The
possibility of also combining examinations for
consumer compliance with those for safety and
soundness raises other issues, involving both
logistics and policy, particularly in the present
environment of emphasizing the enforcement of
laws that prohibit discriminatory lending.
Although these different examinations have
been traditionally conducted independently in
recognition of the specialized training needed to
review the disparate activities, in some cases it
may be possible to perform two or more of these
reviews simultaneously and with less disruption
to the institution. Indeed, we are currently conducting on an experimental basis an examination
of a state member bank in which several different
examinations and the inspection of the parent
bank holding company are being performed together. The initial reactions to this approach by
bankers and staff members of the Reserve Bank
have been positive.
Fair Lending
Practices
A crucial element in the series of recent policy
statements describes several initiatives related to
fair lending practices. These initiatives were preceded in late May with a letter, signed by the
Statements
heads of all four federal bank and thrift regulatory agencies, to the chief executive officers of all
U.S. depository institutions, which cited the
importance of fair lending practices and stressed
the commitment of the agencies to enforcing fair
credit laws. The letter also urged special consideration to eleven specific fair lending activities,
such as enhanced training, second review programs, and affirmative marketing and call programs.
Subsequently, on June 10, the agencies announced development of a new training program
in fair lending for experienced compliance examiners and the initiation of related programs for
senior industry executives. These efforts and
others should increase the awareness of lenders
to the often subtle practices that disadvantage
low-income and minority individuals.
The agencies are also exploring additional
methods of detecting discriminatory practices
and will improve their procedures for referring
violations of the Equal Credit Opportunity Act to
the Department of Justice. Each agency will also
evaluate its consumer complaint system to determine which improvements should be made to its
own procedures. In the meantime, the Federal
Reserve has referred ten complaints that allege
mortgage credit discrimination to the Department of Housing and Urban Development under
an interagency cooperation agreement signed last
year.
In recent months the Federal Reserve has been
testing a statistical model, similar to that used in
a study by the Federal Reserve Bank of Boston,
that is designed to assist examiners in analyzing
the compliance of mortgage lenders with fair
lending laws. This system does not, by itself,
determine the presence of discrimination but
would serve as a tool to lead examiners more
effectively to loan files that warrant closer review
for comparative analysis in making that determination. The Federal Reserve has had educational
programs in place for some time and will continue to build upon them. For example, last year
the Federal Reserve Bank of Kansas City sponsored a conference for bankers called "Credit
and the Economically Disadvantaged." In addition, the Federal Reserve Bank of Boston recently published a brochure for bankers on lending discrimination called "Closing the Gap,"
to the Congress
785
which should help them recognize and correct
potentially discriminatory policies and practices.
Such educational programs for both bankers and
examiners have been, and will continue to be, an
important part of the Federal Reserve's effort to
promote and enforce fair lending practices.
BANKING
LAWS AND
REGULATIONS
Banking laws and regulations exist for reasons
that are critical to the smooth functioning of our
economic and social structure. We must, for
example, minimize or prevent significant disruptions to the nation's financial and payment systems; we must work to ensure that all citizens
have fair access to credit; and we must also
protect taxpayers, in general, from excessive
costs of bank failures. Nevertheless, the Federal
Reserve and the other banking agencies should
continually review their policies and procedures
to avoid placing unnecessary burdens on the
banking system. As conditions change, the need
for, or effect of, banking laws should also be
reviewed.
In considering which steps to take, it is helpful
to be guided by fundamental principles of supervision and regulation. Both the Congress and the
regulatory agencies should have a clear understanding of why we supervise and regulate banks
and what our goals are and should be. These
goals should recognize the role of banks in our
society and in financial markets. They should
also recognize the high level of competition in
these markets and the value of maintaining a
strong, vibrant, and competitive banking system.
Our regulatory and supervisory goals should
not be to prevent banks from taking risks or to
have a system that is so restrictive that no bank
ever fails. Risk-taking is essential for economic
growth. Rather, the goals should focus on maintaining economic and financial stability, ensuring
that businesses and consumers have adequate
access to credit, and deterring excessive risktaking that can arise because of the existence of
deposit insurance and the overall structure of the
federal safety net.
Banking laws and regulations should be compatible with social objectives, and they should
also contribute to minimizing costs to the public
786
Federal Reserve Bulletin • August 1993
when banks fail. However, they should not be
unnecessarily restrictive or suppress innovation
and growth by attempting to micromanage banking organizations. In view of this, it seems reasonable that new laws or regulations be subject
to an appropriate cost-benefit analysis when they
are considered.
The legislative and regulatory process should
also recognize the role of supervisory actions,
which can adapt to specific factors and conditions at individual institutions much better than
can laws and regulations that are necessarily
more formulaic and rigid. In this connection,
banks that pose less risk to the safety net or that
demonstrate superior performance in certain
areas should be permitted greater flexibility or
expanded powers than banks that have less favorable performance records or that present
greater risks.
The Federal Reserve has often advocated several elements of legislative change that I believe
the Congress should consider. They relate to the
payment by the Federal Reserve of interest on
required reserves, the elimination of barriers to
interstate branching, and the expansion of powers—especially those regarding securities underwriting activities—for strong and well-managed
banking organizations. Taking these steps would,
I believe, improve the long-term outlook of the
U.S. banking system by helping it compete more
effectively with many nonbank institutions that
are not similarly constrained in their activities or
that do not incur these and other regulatory
costs.
I would also hope that the principles I have
outlined would be applied when considering the
need for future legislative changes that affect
banks. Some laws, including those designed to
achieve desired social goals, have extracted high
regulatory compliance costs on banks, often with
questionable positive results.
Last year, for example, representatives of the
Federal Reserve and the other federal banking
agencies conducted a variety of "town meetings" throughout the United States on regulatory
burden. I participated in those meetings and
believe that they provided useful insights into the
regulatory process and into areas that should be
reconsidered. Discussions often turned to consumer compliance laws, with bankers generally
complaining about their high regulatory costs,
and consumer advocates often stating that the
requirements have not accomplished their intended goals. Unfortunately, when agency staff
members revisit the relevant regulations, they
continued to believe that most of our specific
requirements are required to implement the laws.
As is often the case when making public policy, few clear and simple answers to important
and complex problems are evident. Further efforts to reduce regulatory burden will undoubtedly raise difficult questions about the trade-offs
to be made between competing public policies.
As you know, I suggested to the subcommittee in
February that one way of dealing with these
issues may be to establish a nonpartisan commission to explore possible legislative changes. Regardless of the approach the Congress takes, the
Federal Reserve looks forward to working to find
ways to improve the framework of banking laws
and regulations.
CONCLUSION
In closing, I would mention that the Federal
Reserve has an ongoing program to review its
regulations to monitor their effectiveness and
related burdens. I would also assure the subcommittee that the Federal Reserve is highly sensitive to the matter of regulatory burden and that
we seek to avoid imposing unnecessary or ineffective requirements or constraints on the banking system. Nevertheless, the level of regulatory
burden has increased as new banking legislation
and implementing regulations are imposed. This
continuing and only additive process is taking a
significant and undesired toll that is easily measured by the declining share of U.S. financial
assets held by banks.
Banking institutions perform a vital and unique
role in our economy by providing credit to all
segments of our society, by facilitating payments
of goods and services, and by providing the
mechanism for the conduct of monetary policy.
If the banking system is to continue its role, it is
incumbent on bankers to remember their longterm interests and to conduct their activities
responsibly. This means operating both prudently and fairly and being responsive to the
Statements
credit needs of their communities. In doing otherwise, banks risk the continued loss of market
share and the prospects of still further rules and
regulations.
Perhaps the most useful actions that bank
regulators and lawmakers can take is to avoid
imposing additional competitive disadvantages
on banks and to conduct their activities in a
to the Congress
787
balanced fashion and with a broad perspective on
the role of banks in our society. Beyond that, to
the extent existing laws and regulations can be
reduced, made more efficient, or applied more
equitably to broader segments of the financial
industry, we may accomplish not only greater
fairness in lending but also greater fairness in
regulating.
•
788
Announcements
NOMINATIONS SOUGHT FOR APPOINTMENTS
TO CONSUMER ADVISORY
COUNCIL
The Federal Reserve Board announced on June 18,
1993, that it is seeking nominations of qualified
individuals for seven appointments to its Consumer
Advisory Council to replace members whose terms
expire on December 31, 1993.
The Consumer Advisory Council comprises
thirty representatives of consumer and community
interests and of the financial services industry. The
council was established by the Congress in 1976, at
the suggestion of the Board, to advise the Board on
the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters
on which the Board seeks its advice. The council
by law represents the interests both of consumers
and of thefinancialcommunity. The group meets in
Washington, D.C., three times a year.
Seven new members will be selected from the
nominations to serve three-year terms that will
begin in January 1994. The Board expects to
announce the selection of new members by yearend 1993.
Nominations should be submitted in writing
and should include the address and telephone
number of the nominee. Also, past and present
positions held, special knowledge, interests, or experience related to consumer credit or other consumerfinancialservices should be included.
The written nominations must be received by
August 30, 1993, and should be addressed to
Dolores S. Smith, Associate Director, Division of
Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington,
DC 20551. Information about nominees will be
available for inspection on request.
NEW SERVICES AVAILABLE TO FACILITATE
THE SAME-DAY SETTLEMENT OF CHECKS
The Federal Reserve Board announced on June 2,
1993, adoption of new and enhanced Federal
Reserve Bank services to facilitate the same-day
settlement of checks.
These services, which are effective immediately,
include the following:
• Primary and alternate presentment point services for payor banks
• Supplementary payor bank information services for checks not collected through the Reserve
Banks
• A new Fedwire product code to facilitate
settlement for checks presented to payor banks
directly by private sector banks.
The services are designed to facilitate a paying
bank's responsibility to settle for checks presented
by private sector banks and to enable paying banks
to continue to provide timely cash management
information to their corporate customers.
The fee structures for the presentment point and
information services include daily minima and
variable fees.
SELECTED STATISTICAL DATA NOW
AVAILABLE ON COMPUTER DISKETTES
The Federal Reserve Board announced on June 28,
1993, that historical data covering six major sets of
statistics are now available on computer diskettes.
Data are being provided in this format on flow of
funds, industrial production and capacity utilization, monetary aggregates, reserves of depository
institutions, bank credit, and selected interest rates.
The 3V2-inch, high-density (1.4 megabyte) diskettes are formatted for MS-DOS compatible computers using DOS version 3.3 or higher. The data
are contained in ASCII text files that have in some
cases been compressed. Explanatory help texts are
included on the diskettes, as well as the software
necessary to expand the files if necessary.
Each diskette is available from the Board's Publications Services, mail stop 402, Board of Gover-
789
nors of the Federal Reserve System, Washington,
DC 20551. The cost is $25.00 per diskette.
A brief summary of the information contained
on each diskette follows.
source data, when these data are available, for the
same period.
The historical diskette contains data with various
starting dates (the earliest is 1919). The ending date
is December 1985 for all data.
Flow of Funds (three diskettes, quarterly)
Seasonally adjusted quarterly flow of funds data
from the Z.l statistical release are contained on
diskette 1. The Z.l files begin with 1952:Q1 and
end with the most recently published quarter. Unadjusted flow of funds data are on diskette 2.
Diskette 3 contains outstandings and annual data
from 1945 on the Balance Sheets for the U.S.
Economy that are published in the C.9 statistical
release. Monthly debt aggregate statistics beginning with January 1955 are also on diskette 3.
Updates to the debt aggregate are published weekly
in the Board's H.6 statistical release.
Data are stored in compressed files that correspond to tables in the releases. The diskettes are
reissued each quarter with revisions and updates at
the time the Z. 1 is released.
Industrial Production and Capacity
Utilization (two diskettes, monthly)
These data have been divided between a historical
diskette containing data before 1986 and a more
current monthly diskette containing data beginning
in 1986.
The monthly diskette is available around the
eighteenth of each month and contains the data
published in the Federal Reserve Board's G.17
statistical release on industrial output, capacity, and
capacity utilization. Survey data on use of industrial electric power are also included. The data
begin with January 1986 and end with the month of
the most recently published industrial production
index. Data and documentation files on the diskette
correspond to tables in the G.17 release.
The April indexes that were first published on
the diskette issued in May reflect a revision to the
industrial production and capacity utilization
indexes. The revisions primarily reflect conversion
of the indexes from 1987 forward to the 1987
Standard Industrial Classification and the incorporation of more comprehensive annual and monthly
Mortgage and Consumer Finance
(one diskette, monthly)
Monthly statistics on consumer installment credit
from the Board's G.19 statistical release, including
seasonally adjusted and not seasonally adjusted
totals, along with not seasonally adjusted components, and interest rates, are contained on the diskette. Some series begin with 1943. Data on securitized assets are available from 1989, and data on
interest rates are available from 1971.
Monthly consumer finance company statistics
from the Board's G.20 statistical release, including
seasonally adjusted and not seasonally adjusted
totals along with not seasonally adjusted components, are also on the diskette, as well as not
seasonally adjusted Finance Company Quarterly
Report data. Data on outstandings are available
from 1980, and the Quarterly Report data are available from 1985. Data are updated on a monthly
basis at the time the G.19 and G.20 statistical
releases are published.
Monetary Aggregates
(one diskette, annually)
This data set contains aggregate data on money
stock measures and liquid assets (Ml, M2, M3, and
L), as well as components of the money stock
measures and related items, as reported on the H.6
statistical release. The historical data reflect revisions that incorporate annual seasonal adjustment
and benchmark changes. Data are updated annually, generally in late February or early March.
Monthly data are shown for the period 1959
through 1992. Weekly data, shown for the period
January 6, 1975, through January 4, 1993, are
based on weeks ending on Mondays to correspond
with the reporting cycle under contemporaneous
reserve requirements. No data before 1975 have
been reconstructed on a weekly basis.
790
Federal Reserve Bulletin • August 1993
Deposits have been benchmarked using Call
Reports through June 1992 and incorporate data
revisions from other sources also. Seasonal factors
have been revised using the X-ll ARIMA procedure adopted in 1982 with prior adjustments for
special events, such as the introduction of new
deposit accounts.
turnover, seasonally adjusted and not seasonally
adjusted (as shown on the G.6 statistical release),
are available from 1970 to date.
Data and documentation files on the diskette
correspond to the various statistical releases.
Selected Interest Rates
(one diskette, quarterly)
Reserves of Depository Institutions
(one diskette, annually)
This diskette contains data on aggregate reserves,
borrowings from the Federal Reserve, and the monetary base, as shown on the H.3 statistical release.
The data incorporate breaks in series resulting from
the January 1993 indexations of the low reserve
tranche and the reserve requirement exemption
levels, as well as the annual review of seasonal
factors. Data are updated annually, usually in late
March or early April.
Monthly data are provided for the period January
1959 through March 1993. Weekly data are provided for the period January 7, 1959, to March 31,
1993.
Bank Credit (two diskettes, quarterly)
These diskettes contain aggregate historical data on
bank assets and liabilities and on bank debits.
Weekly assets and liabilities, not seasonally adjusted, for large domestic banks by national totals
and by Federal Reserve District (as shown on the
H.4.2 statistical release) are available from 1988 to
date. Weekly assets and liabilities from large U.S.
branches and agencies of foreign banks, not seasonally adjusted (also on the H.4.2), are available from
1989 to date. Weekly assets and liabilities for all
commercial banks and major bank groups, not seasonally adjusted (as shown on the H.8 statistical
release), are available from 1984 to date.
Monthly assets for all commercial banks and
major bank groups, seasonally adjusted and not
seasonally adjusted (as shown on the G.7 statistical
release), are available from 1972 to date, as are
monthly nondeposit sources, seasonally adjusted
and not seasonally adjusted (as shown on the G.10
statistical release). Monthly debits and deposit
The diskette contains all items shown on the
weekly H.15 statistical release, "Selected Interest
Rates." The data include historical observations for
the interest rate variables at each available frequency of observation—generally business day,
weekly, monthly, and annual. Updated diskettes are
available the first week of each quarter and include
data through the end of the previous quarter.
Both the starting dates for individual interest rate
series and the frequencies of the observations vary.
The less frequently observed transformations, such
as monthly or annual, are usually available for
longer periods. The selection of specific frequency
transformations conforms to market conventions
for quoting those rates. For example, the federal
funds rate is quoted daily and for statement weeks
ending on Wednesday in contrast to the more common convention of weeks ending on Friday for
many other rates.
PROPOSED ACTION
The Federal Reserve Board requested public comment on a proposed interagency rule to amend
regulations regarding real estate appraisals, which
are contained in the Board's Regulations H (Membership of State Banking Institutions in the Federal
Reserve System) and Y (Bank Holding Companies
and Change in Bank Control). Comments were
requested by July 19, 1993.
PUBLICATION OF THE BANK HOLDING
COMPANY SUPERVISION MANUAL
The first revision to the December 1992 edition of
the Bank Holding Company Supervision Manual
has been published by the Board's Division of
Announcements
Banking Supervision and Regulation and is now
available for purchase by the public. The Manual is
used by Federal Reserve examiners in the supervision, regulation, and inspection of bank holding
companies and their subsidiaries. A copy of the
revision is available for $4.00. The Manual and the
791
June 1993 revision may be obtained from Publications Services, mail stop 402, Board of Governors
of the Federal Reserve System, Washington, DC
20551. A copy of the Manual and its June 1993
revision supplement are available at a cost of
$50.00.
•
793
Legal Developments
ORDERS ISSUED
COMPANY
ACT
UNDER BANK
HOLDING
Orders Issued Under Section 3 of the Bank
Holding Company Act
Bank of Boston Corporation
Boston, Massachusetts
Order Approving the Acquisition of a Bank Holding
Company
Bank of Boston Corporation, Boston, Massachusetts
("BBC"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied under section 3 of the BHC Act (12 U.S.C.
§ 1842) to acquire all the voting shares of Multibank
Financial Corp., Dedham, Massachusetts ("Multibank"), and thereby indirectly acquire South Shore
Bank, Quincy; Mechanics Bank, Worcester; and
Multibank West, Pittsfield; all in Massachusetts. 1
Notice of these applications, affording interested
persons an opportunity to submit comments, has been
published (58 Federal Register 13,265 (1993)). The
time for filing comments has expired, and the Board
has considered these applications and all comments
received in light of the factors set forth in section 3(c)
of the BHC Act.
BBC, with consolidated assets of $31.6 billion,
controls five banks in Connecticut, Massachusetts,
Vermont, Maine, and Rhode Island.2 BBC is the
largest commercial banking organization in Massachusetts, controlling deposits of $13.8 billion, representing
approximately 26.7 percent of total deposits in commercial banking organizations in the state. 3 Multibank
is the sixth largest commercial banking organization in
Massachusetts, controlling deposits of $2.2 billion,
representing approximately 4.2 percent of total deposits in commercial banking organizations in the state.
1. BBC proposes to merge its wholly owned subsidiary into Multibank, with Multibank surviving the merger. In connection with the
proposed acquisition, BBC also seeks approval to acquire an option to
purchase up to 19.9 percent of the voting shares of Multibank. This
option will become moot upon consummation of the proposed acquisition of all the shares of Multibank.
2. Asset data are as of March 31, 1993.
3. State deposit data are as of June 30, 1992.
Upon consummation of this proposal, BBC would
remain the largest commercial banking organization in
Massachusetts, controlling deposits of $16 billion,
representing approximately 30.9 percent of the total
deposits in commercial banking organizations in the
state.
BBC and Multibank compete directly in nine banking markets in Massachusetts. 4 After considering the
competition offered by commercial banks and thrift
institutions5 in all nine banking markets, the number of
competitors remaining in the respective markets, the
increase in market share and market concentration in
each market,6 and all other facts of record, the Board
concludes that consummation of the proposal would
not have a significantly adverse effect on competition
in any relevant banking market.
In evaluating these applications, the Board is required, under the terms of section 3 of the BHC Act, to
consider the financial resources of the companies and
banks involved, and the effect of this proposed acquisition on the future prospects of those organizations
and institutions. The Board previously has stated that
a bank holding company should serve as a source of
financial strength to its subsidiary banks and that the
Board would closely examine the condition of an
applicant and its subsidiaries in each case with this
4. These markets are Amherst/Northampton, Boston, Cape Cod,
Fall River, Fitchburg/Leominster, Springfield, Taunton, Worcester
and Providence.
5. The Board previously has indicated that thrift institutions have
become, or have the potential to become, significant competitors of
commercial banks. See Midwest Financial Group, 75 Federal Reserve
Bulletin 386 (1989); National City Corporation, 70 Federal Reserve
Bulletin 743 (1984). Thus, the Board has regularly included thrift
deposits in the calculation of market share on a 50 percent weighted
basis. See, e.g., First Hawaiian Inc., 77 Federal Reserve Bulletin 52
(1991).
6. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger Herfindahl-Hirschman Index ("HHI") is above 1800 is
considered to be highly concentrated. In such markets, the Justice
Department is likely to challenge a merger that increases the HHI by
more than 50 points. However, the Justice Department has informed
the Board that a bank merger or acquisition generally will not be
challenged (in the absence of other factors indicating anti-competitive
effects) unless the post-merger HHI is at least 1800 and the merger
increases the HHI by 200 points. The Justice Department has stated
that the higher than normal HHI thresholds for screening bank
mergers for anti-competitive effects implicitly recognize the competitive effect of limited-purpose lenders and other non-depository financial entities. The increase in the HHI in each market in this case would
be within the Justice Department guidelines.
794
Federal Reserve Bulletin • August 1993
consideration in mind. In this regard, the Board continues to believe that bank holding companies contemplating expansion proposals must demonstrate sufficient financial flexibility necessary to meet unexpected
problems in all their subsidiary banks.
BBC maintains that its improved financial condition
and the benefits to be derived by BBC from the
acquisition, including, in particular, projected cost
savings and increased penetration of the small business loan market, support approval of the proposal.
The Board notes that BBC has capital levels well
above the minimums set forth in the Board's capital
adequacy guidelines,7 and that the acquisition will not
significantly reduce its capital.
The Board has carefully evaluated this proposal in
light of the Board's approval today of BBC's acquisition of Society for Savings Bancorp, Inc. ("Society"),
and its savings bank subsidiary, Society for Savings,
both in Hartford, Connecticut. In the case of the
Society proposal, which represents a substantial acquisition of approximately $2.5 billion in total consolidated assets, the Board concluded that considerations
relating to the financial resources and future prospects
of these institutions were, on balance, consistent with
approval. BBC's proposal to acquire Multibank, with
approximately $2.4 billion in total consolidated assets,
would, in combination with the acquisition of Society,
lessen BBC's capacity to serve as a source of strength
for its banking subsidiaries.
To address this, BBC has committed, in connection
with its proposed acquisition of Multibank, to raise
significant additional new capital prior to consummating this transaction. This new capital would provide
additional financial flexibility to permit BBC to assimilate Multibank and Society into its organization and to
serve as a source of strength to Multibank and Society
and its other subsidiary banks after the acquisition.
The Board believes that this new capital should be
maintained to meet unexpected problems in BBC's
subsidiary banks, if necessary. Accordingly, the
Board conditions its action in this case on BBC raising
the proposed additional capital on or before consummation of the acquisition of Multibank, and maintaining these funds exclusively for use in addressing
problems at its subsidiary banks.
On this basis, and based on all the facts of record,
the Board concludes that the financial and managerial
resources and future prospects of BBC and Multibank,
and their respective subsidiaries, and the other supervisory factors that the Board must consider under
7. Capital Adequacy Guidelines, 12 C.F.R. 225, Appendices A, B,
and D.
section 3 of the BHC Act are consistent with approval
of these applications.
Based on the foregoing, including the representations and commitments described in this Order and
those made in connection with these applications, and
all the facts of record, the Board has determined that
these applications should be, and hereby are, approved. The Board's approval is specifically conditioned upon compliance by BBC with all the commitments made in connection with these applications,
including its capital raising commitments and the condition that this capital be maintained exclusively for
use in addressing problems at BBC's subsidiary banks.
For purposes of this action, these commitments and
conditions will be considered conditions imposed in
writing and, as such, may be enforced in proceedings
under applicable law.
The acquisition 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 the Federal
Reserve Bank of Boston, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
June 9, 1993.
Voting for this action: Chairman Greenspan and Governors
Angell, LaWare, and Phillips. Abstaining from this action:
Governors Mullins, Kelley, and Lindsey.
JENNIFER J . JOHNSON
Associate Secretary of the Board
Abstention Statement
Our abstention reflects our strong dissatisfaction with
the way in which this application was considered. A
majority of the Board voted to deny the proposal as
originally structured. While the Board was in the
process of drafting an order reflecting its decision,
Applicant proposed a restructuring of its proposal to
raise additional capital. On the basis of Applicant's
proposal to raise new capital, a majority of the Board
agreed to reconsider the proposal.
We disagree with the Board's decision to consider
information that was submitted by the Applicant after
the Board initially considered this case. Applicant had
ample opportunity prior to the time that this matter
was scheduled to be presented to the Board to make
changes to its proposal. We believe that it impairs the
integrity of the Board's decision-making process to
permit an applicant to submit new information after
the Board has considered the record of the case and
Legal Developments
while the Board is in the process of issuing its decision.
We are concerned that this permits the misuse of the
application process. The Board expects applicants,
prior to the time the Board considers an application, to
submit a detailed proposal that addresses all issues
that the Board must consider. To do otherwise would
encourage applicants to submit marginal proposals and
then attempt to negotiate an acceptable proposal directly with the Board. This cannot be permitted to
happen if the Board is to act promptly, carefully and
fairly on each application.
Thus, we believe that the Board should issue a
decision regarding each proposal that is put before the
Board, as that proposal is structured at the time of the
Board's original consideration of the matter. Applicants that choose to restructure proposals are presently permitted to request that the Board consider new
proposals developed in response to a published Board
decision, but should not have an opportunity or any
incentive to attempt to negotiate each proposal with
the Board.
While we find the specific process followed in this
case to be unacceptable, we also believe that the
Applicant's new proposal, were it to be resubmitted in
its current form, would be consistent with approval on
the merits.
June 9, 1993
Bank of Boston Corporation
Boston, Massachusetts
795
Notice of these applications, affording interested
persons an opportunity to submit comments, has been
published (58 Federal Register 6640 (1993)). The time
for filing comments has expired, and the Board has
considered these applications and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.2
BBC, with consolidated assets of $31.6 billion,
controls five banks in Connecticut, Massachusetts,
Vermont, Maine, and Rhode Island.3 BBC is the
seventh largest commercial bank or thrift organization
("depository institution") in Connecticut, controlling
deposits of $2 billion, representing approximately
3.4 percent of total deposits in depository institutions
in the state.4 Society is the eighth largest depository
institution in Connecticut, controlling deposits of
$1.8 billion, representing approximately 3.2 percent of
total deposits in depository institutions in the state.
Upon consummation of this proposal, BBC would
become the fourth largest depository institution in
Connecticut, controlling deposits of $3.8 billion, representing approximately 6.6 percent of the total deposits in depository institutions in the state.5
Competitive Considerations
BBC and Society compete directly in five banking
markets in Connecticut: Bridgeport, Danbury, Hartford, New Haven, and Waterbury. Upon consummation of this proposal, all banking markets would remain moderately concentrated or unconcentrated as
measured by the Herfindahl-Hirschman Index
("HHI"). 6 After considering the competition offered
Order Approving the Acquisition of a Bank Holding
Company
Bank of Boston Corporation, Boston, Massachusetts
("BBC"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied under section 3 of the BHC Act (12 U.S.C.
§ 1842) to acquire all of the voting shares of Society for
Savings Bancorp, Inc. ("Society"), and thereby indirectly acquire Society for Savings ("Society Bank"), a
state chartered savings bank, both of Hartford, Connecticut.1
1. BBC proposes to merge its wholly owned subsidiary, Merger
Subsidiary, into Society, with Society surviving the merger. BBC also
proposes to merge Society Bank into BBC's subsidiary bank, Bank of
Boston Connecticut, Waterbury, Connecticut ("Bank"), retaining the
charter of Society Bank and the name of Bank. Bank will be owned
jointly by Society and Colonial Bancorp, Inc., Waterbury, Connecticut ("Colonial"), a subsidiary bank holding company of BBC. In this
regard, Colonial has applied under section 3 of the BHC Act
(12 U.S.C. § 1842) to acquire at least 25 percent of the voting shares
of Bank. The merger of Bank and Society Bank has been approved by
the Federal Deposit Insurance Corporation and by the Connecticut
Banking Commissioner. The Connecticut Banking Commissioner also
has approved BBC's acquisition of Society.
In connection with the proposed acquisition, BBC also seeks
approval to acquire an option to purchase up to 19.9 percent of the
voting shares of Society. This option will become moot upon consummation of the proposed acquisition of all of the shares of Society.
2. The Board also has considered additional comments filed after
the close of the public comment period. 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. Asset data are as of March 31, 1993.
4. State deposit data are as of June 30, 1992.
5. The Board previously has determined that the interstate banking
statute of Connecticut permits a Massachusetts bank holding company to acquire banking organizations in Connecticut. See Shawmut
National Corporation, 74 Federal Reserve Bulletin 182, 183 (1988);
Bank of New England Corporation, 70 Federal Reserve Bulletin 374
(1984); Bank of Boston Corporation, 70 Federal Reserve Bulletin 111
(1984). Thus, consummation of this transaction is not barred by
section 3(d) of the BHC Act (12 U.S.C. § 1842(d)).
6. Under the revised Department of Justice Merger Guidelines (49
Federal Register 26,823 (June 29, 1984)), a market in which the
post-merger HHI is less than 1000 is considered unconcentrated, and
a market in which the post-merger HHI is between 1000 and 1800 is
considered moderately concentrated. The Justice Department has
informed the Board that a bank merger or acquisition generally will
not be challenged (in the absence of other factors indicating anti-
796
Federal Reserve Bulletin • August 1993
by other depository institutions in the market,7 the
number of competitors remaining in the respective
markets, the relatively small increase in market share
and market concentration in the respective markets,
and all other facts of record, the Board concludes that
consummation of the proposal would not have a
significantly adverse effect on competition in any
relevant banking market.8
Convenience and Needs Considerations
In acting upon an application to acquire a depository
institution under the BHC Act, the Board must consider the convenience and needs of the communities to
be served, and take into account the records of the
relevant depository institutions under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.)
("CRA"). 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
competitive effects) unless the post-merger HHI is at least 1800 and
the merger increases the HHI by 200 points. The Justice Department
has stated that the higher than normal HHI thresholds for screening
bank mergers for anti-competitive effects implicitly recognize the
competitive effect of limited-purpose lenders and other non-depository financial entities.
7. Market deposit data are as of June 30,1991. Market share data are
based on calculations in which the deposits of thrift institutions are
included at 50 percent. The Board previously has indicated that thrift
institutions have become, or have the potential to become, major
competitors of commercial banks. See Midwest Financial Group, 75
Federal Reserve Bulletin 386 (1989); National City Corporation, 70
Federal Reserve Bulletin 743 (1984). Thus, the Board has regularly
included thrift deposits in the calculation of market share on a
50 percent weighted basis. See, e.g., First Hawaiian Inc., 11 Federal
Reserve Bulletin 52 (1991). Because Society Bank would be merged
with a commercial bank under BBC's proposal, the deposits of
Society Bank are included at 100 percent in the calculation of the pro
forma market share. See First Banks, Inc., 76 Federal Reserve
Bulletin 669,670 n.9 (1990); Norwest Corporation, 78 Federal Reserve
Bulletin 452 (1992).
8. Upon consummation of this proposal, BBC would become the
fourth largest of 22 depository institutions in the Bridgeport banking
market, controlling deposits of $403.8 million, representing approximately 6.5 percent of total deposits in depository institutions in
the market ("market deposits"). The HHI would increase 18 points to
1512. BBC would become the fourth largest of 25 depository institutions in the Danbury banking market, controlling deposits of
$167.2 million, representing approximately 7.4 percent of market
deposits. The HHI would increase 15 points to 763. BBC would
become the third largest of 54 depository institutions in the Hartford
banking market, controlling deposits of $2.3 billion, representing
approximately 12.4 percent of market deposits. The HHI would
increase 38 points to 1686. In the New Haven banking market, BBC
would become the fifth largest of 24 depository institutions, controlling deposits of $650.1 million, representing approximately 10.1 percent of market deposits. The HHI would increase 35 points to 860.
Finally, in the Waterbury banking market, BBC would remain
the largest of 15 depository institutions, controlling deposits of
$860 million, representing approximately 33.4 percent of market
deposits. The HHI would increase 109 points to 1733.
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," and to take that record
into account in its evaluation of bank holding company
applications.9
The Board has received comments from two organizations ("Protestants") critical of the efforts of BBC
and Society to meet the credit and banking needs of
their communities. In particular, Protestants allege
that BBC and Society have failed to meet the credit
and banking needs of residents in the Charter Oak/
Zion/Southwest Hartford community because both
institutions recently closed branches that service this
community.10
The Board has carefully reviewed the CRA performance records of BBC and Society, and their respective subsidiary banks, as well as all comments received regarding these applications, BBC's responses
to those comments, and all of the other relevant facts
of record 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").11
Record of Performance Under the CRA
A. CRA Performance Examinations
The Agency CRA Statement provides that a CRA
examination is an important, and often controlling,
factor in the consideration of an institution's CRA
record and that these reports will be given great weight
in the applications process.12 In this case, the Board
notes that all of BBC's subsidiary banks have received
"outstanding" or "satisfactory" ratings from their
primary regulators during the most recent examinations of each institution's CRA performance. In particular, BBC's lead subsidiary bank, First National
Bank of Boston, Boston, Massachusetts, received an
"outstanding" rating for CRA performance from its
primary regulator, the Office of the Comptroller of the
Currency ("OCC"), in October 1992. Bank of Boston
Connecticut, Waterbury, Connecticut ("Bank"), also
received an "outstanding" rating for CRA performance from its primary regulator, the Federal Deposit
9. 12 U.S.C. § 2903.
10. Protestants allege that, because of these branch closings and
branch closings by other banks, the only source of banking services
within walking distance of their community is a single automatic teller
machine ("ATM").
11. 54 Federal Register 13,742 (1989).
12. Id. at 13,745.
Legal Developments
Insurance Corporation ("FDIC"), in February 1993.13
In addition, Society Bank received a "satisfactory"
rating from its primary regulator, the FDIC, in August
1992.
B. Branch Closings
In response to Protestants' comments, BBC asserts
that neither of the branches closed by BBC and
Society were located in Protestants' community.14
Moreover, BBC maintains that Bank continues to
service the Charter Oak/Zion/Southwest Hartford
community through its Goodwin Park branch at 2035
Broad Street ("Goodwin Branch"), which is located
less than one-half mile from the described community.
The Goodwin Branch provides the community with
many banking services, including services expressly
designed to meet the needs of low- and moderateincome customers. In particular, the Goodwin Branch
provides check cashing and food stamp services, as
well as services geared to the needs of local small
businesses. The Goodwin Branch also offers two
drive-through teller stations, a 24-hour automatic teller
machine ("ATM"), and a night depository.
Bank also has been involved in programs that help
meet the credit needs of the Charter Oak/Zion/Southwest Hartford community. For example, Bank has
endeavored to ascertain community credit needs by
calling community organizations such as Project Hope
on New Britain Avenue (a nonprofit organization
providing educational and training services to lowincome clients); Warburton Community Church; and
the Sisters of St. Joseph on Freeman Street. Bank also
has conducted banking education seminars specifically
designed for low- and moderate-income consumers,
and has provided credit counseling and home buyer
seminars in the neighboring Frog Hollow section of
Hartford. Low- and moderate-income first-time homebuyers in the Charter Oak/Zion/Southwest Hartford
community also are eligible for low-cost home purchase mortgages provided by Hartford Area Rallies
Together ("HART"), a partnership in which Bank
participates.
The record in this case indicates that in the most
recent CRA examinations of Bank and Society Bank,
the FDIC found that each institution's record of open13. BBC's other subsidiary banks have been most recently rated for
CRA performance as follows: Bank of Vermont, Burlington, Vermont, received an "outstanding" rating from the FDIC in September
1991; Casco Northern Bank, N.A., Portland, Maine, received a
"satisfactory" rating from the OCC in March 1991; and Rhode Island
Hospital Trust, N.A., Providence, Rhode Island, received a "satisfactory" rating from the OCC in March 1991.
14. In March 1991, Bank closed its branch at 440 New Park Avenue
located to the west of this community, and in May 1991, Society
closed its Maple Avenue branch located to the community's east.
797
ing and closing offices was satisfactory.15 BBC has
committed that the CRA policies and programs employed at Bank will be implemented at Society Bank.
In this regard, Bank, which is the institution that will
survive the merger with Society Bank, has formulated
a formal branch closing policy that requires Bank to
consider how each closing would impact the affected
communities. In particular, Bank, prior to a branch
closure or reduction in service, reviews the viability of
the existing office, as well as internal and external
market conditions. Bank also has developed procedures to analyze the effects of potential closings, and,
when a branch is to be closed, sets up a task force to
coordinate such closing. This task force is responsible
for providing advance notice of the closing to customers and appropriate banking regulators. In addition,
the task force communicates with employees, community leaders and organizations to help minimize any
negative impact the closing may have on the surrounding communities.
C. Additional Elements of CRA Performance
The Board also has considered other elements of the
CRA performance of BBC, Society, and their subsidiary banks. The record indicates that BBC, Society
and their subsidiary banks have in place the types of
policies outlined in the Agency CRA Statement that
contribute to an effective CRA program. For example,
Bank has established two committees designed to
ensure compliance with the CRA. The Board Community Investment Committee ("Board Committee")
oversees Bank's CRA programs, reviews progress
toward meeting goals, and sets new CRA-related goals
when appropriate. The Community Investment Management Committee ("Management Committee"),
which is made up of Bank business unit and department managers, is responsible for the implementation
of Bank's CRA program. The Management Committee
reports to the Board Committee at least quarterly to
update the status of Bank's CRA program.
Bank ascertains the credit needs of its community
through formal call programs and participation in
various community and governmental organizations.
For example, branch managers and business unit
managers make calls in their communities to determine each community's needs and make recommendations to the Management Committee to fulfill those
15. The FDIC's most recent examination of Bank takes into account
all branch closings by Bank since the 1990 examination, including the
closing of Bank's 440 New Park Avenue office, located near the
Charter Oak/Zion/Southwest Hartford community. In this regard,
Bank's branch closing policy requires a 90-day advance notice to
customers and to the Connecticut State Banking Commissioner.
798
Federal Reserve Bulletin • August 1993
needs. Bank also communicates with members of its
community through the use of multilingual pamphlets
on credit and deposit programs, and by hiring bilingual
personnel.
Bank efforts for marketing its credit services and
products include the use of neighborhood newspapers
and radio advertisements to inform the community of
its credit products. Bank also meets the credit needs of
its communities through programs such as First Community Bank, which is expressly designed to serve the
banking needs of low- and moderate-income consumers and businesses. This program includes access to
commercial, mortgage, and consumer lenders, expanded outreach and personal service, educational
credit seminars, services in English and Spanish, and
special efforts to draw employees from the communities its serves. Bank also participates in various loan
programs, including the Connecticut Student Loan
Foundation's Stafford and PLUS Loan Programs, the
Connecticut Housing Finance Authority mortgage
program, as well as Federal Home Administration
("FHA"), Veterans Administration ("VA"), and
Small Business Administration ("SBA") loan programs.
The Board has carefully considered the entire
record of the CRA performance of BBC, Society and
their subsidiary banks, including the comments filed in
this case by Protestants, in reviewing the convenience
and needs factors under the BHC Act. Based on a
review of the entire record of performance by Bank,
including the CRA examinations of the subsidiary
banks of BBC and Society, the Board believes that the
record of BBC, Society and their subsidiary banks in
helping to meet the credit needs of all segments of the
communities they serve, including low- and moderateincome neighborhoods, are consistent with approval.
For these reasons, and on the basis of all the facts of
record, the Board concludes that the convenience and
needs considerations, including the CRA performance
of BBC, Society, and their subsidiary banks, are
consistent with approval of these applications.16
16. One of the Protestants has requested that the Board hold a
public meeting or hearing on these applications. The Board is not
required under section 3(b) of the BHC Act to hold a hearing on an
application unless the appropriate banking authority for the bank to be
acquired makes a timely written recommendation of denial of the
application. In this case, the Connecticut Banking Commissioner has
not recommended denial of the proposal.
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,
interested parties have had a sufficient opportunity to present written
submissions, and have submitted detailed written comments that have
been considered by the Board. On the basis of all the facts of record,
the Board has determined that a public meeting or hearing is not
Other Considerations
In evaluating these applications, the Board is required, under the terms of section 3 of the BHC Act,
to consider the financial resources of the companies
and banks involved and the effect of this proposed
acquisition on the future prospects of those organizations and institutions. The Board previously has
stated that a bank holding company should serve as a
source of financial strength to its subsidiary banks,
and that the Board would closely examine the condition of an applicant and its subsidiaries in each case
with this consideration in mind. In this regard, the
Board continues to believe that bank holding companies contemplating expansion proposals must demonstrate sufficient financial flexibility necessary to
meet unexpected problems in all of its subsidiary
banks.
The Board has carefully considered BBC's ability
to serve as a source of strength to its subsidiary
banks in this case. The Board believes that the plans
and projections for Society, when considered in light
of BBC's improved financial condition and recent
equity raising efforts, demonstrate on balance a
financial flexibility that is adequate to address unexpected problems that may be encountered after the
Society acquisition in any of BBC's subsidiary
banks. On the basis of these and all facts of record,
the Board concludes that the financial and managerial
and future prospects of BBC and Society, and their
respective subsidiaries, and the other supervisory
factors that the Board must consider under section 3
of the BHC Act are consistent with approval of these
applications.
Based on the foregoing, including the representations and commitments described in this Order and
those made in these applications, and all the facts of
record, the Board has determined that these applications should be, and hereby are, approved. The
Board's approval is specifically conditioned upon
compliance by BBC with all the commitments made in
connection with these applications. For purposes of
this action, these commitments and conditions will
both be considered conditions imposed in writing and,
as such, may be enforced in proceedings under applicable law.
The acquisition 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 the Federal
necessary to clarify the factual record in these applications, or
otherwise warranted in this case. Accordingly, the request for a public
meeting or hearing on these applications is hereby denied.
Legal Developments
Reserve Bank of Boston, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
June 9, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips.
JENNIFER J . JOHNSON
Associate Secretary of the Board
Premier Financial Services, Inc.
Freeport, Illinois
Premier Acquisition Company
Freeport, Illinois
Order Approving the Acquisition of a Bank
Premier Financial Services, Inc., Freeport, Illinois
("Premier"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"),
has applied under section 3 of the BHC Act
(12 U.S.C. § 1842) to acquire First Northbrook Bancorp, Inc., Northbrook, Illinois ("First Northbrook"),
and thereby indirectly acquire First National Bank of
Northbrook, Northbrook, Illinois ("FNB Northbrook"), and First Security Bank of Cary-Grove, Cary,
Illinois, a state nonmember bank ("FSB CaryGrove").1
Notice of the applications, affording interested
persons an opportunity to submit comments, has
been published (58 Federal Register 6640 (1993)).
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.
Premier, with total consolidated assets of approximately $361.7 million, is the 60th largest commercial banking organization in Illinois, controlling
$309.1 million in deposits, representing less than 1
percent of total deposits in commercial banks in the
state.2 Premier controls two bank subsidiaries in
Illinois,3 and engages directly and through subsidi-
1. As proposed, First Northbrook would be merged with and into
Premier's wholly owned subsidiary, Premier Acquisition Company,
Freeport, Illinois ("PAC"). Following the merger, PAC would be the
surviving corporation, the separate corporate existence of First
Northbrook would cease, and FNB Northbrook and FSB Cary-Grove
would become wholly owned direct subsidiaries of PAC. PAC has
applied under section 3 of the BHC Act to become a bank holding
company.
2. Asset, deposit, and ranking data are as of March 31, 1993.
3. Those banks are First Bank North, Freeport, Illinois, and First
Bank South, Dixon, Illinois, both state member banks.
799
aries in a variety of permissible nonbanking activities. First Northbrook, with total consolidated assets
of $240 million, is the 87th largest commercial banking organization in Illinois, controlling $228.6 million
in deposits, representing less than 1 percent of total
deposits in commercial banks in the state. Upon
consummation of the proposal, Premier would become the 37th largest commercial banking organization in Illinois.
Premier and First Northbrook do not compete directly in any banking market. In light of all the facts of
record, the Board concludes that consummation of the
proposal would not have a significantly adverse effect
on competition or the concentration of banking resources in any relevant banking market.
Based on all the facts of record, including all the
commitments made in connection with these applications, the Board concludes that the financial and
managerial resources and future prospects of Premier, its subsidiaries, and First Northbrook, as well
as the convenience and needs of the communities to
be served, and the other supervisory factors that
the Board must consider under section 3 of the
BHC Act, are consistent with approval of this proposal. Accordingly, and based on all the facts of
record, and these commitments, the Board has determined that the applications should be, and hereby
are approved.
The Board's approval of this proposal is expressly
conditioned on compliance with the conditions referenced in this Order, and with all the commitments
made in connection with this application, including the
commitments made by Premier, PAC, and the proposed principal shareholders of Premier. The commitments and conditions relied on by the Board in reaching its decision are both deemed to be conditions
imposed in writing by the Board in connection with its
findings and decision, and, as such, may be enforced in
proceedings under applicable law.
This 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 Chicago, acting pursuant to
delegated authority.
By order of the Board of Governors, effective
June 14, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Kelley, LaWare, and Lindsey. Absent and not
voting: Governors Angell and Phillips.
JENNIFER J . JOHNSON
Associate Secretary of the Board
800
Federal Reserve Bulletin • August 1993
Orders Issued Under Section 4 of the Bank
Holding Company Act
Private Placement and "Riskless Principal"
Activities
Baraett Banks, Inc.
Jacksonville, Florida
Private placement involves the placement of new
issues of securities with a limited number of sophisticated purchasers in a nonpublic offering. A financial
intermediary in a private placement transaction acts
solely as an agent of the issuer in soliciting purchasers,
and does not purchase the securities and attempt to
resell them. Securities that are privately placed are not
subject to the registration requirements of the Securities Act of 1933, and are offered only to financially
sophisticated institutions and individuals and not to
the public. Applicant has committed that Company
will not privately place registered securities, and will
only place securities with "institutional customers" as
that term is defined in section 225.2(g) of the Board's
Regulation Y (12 C.F.R. 225.2(g)).
"Riskless principal" is the term used in the securities business to refer to a transaction in which a
broker-dealer, after receiving an order to buy (or sell)
a security from a customer, purchases (or sells) the
security for its own account to offset a contemporaneous sale to (or purchase from) the customer.3 "Riskless principal" transactions are understood in the
industry to include only transactions in the secondary
market. Thus, Applicant proposes that Company
would not act as a "riskless principal" in selling
securities at the order of a customer that is the issuer
of the securities to be sold, or in any transaction where
Company has a contractual agreement to place the
securities as agent of the issuer. Company also would
not act as a "riskless principal" in any transaction
involving a security for which it makes a market.
The Board previously has determined by Order that,
subject to prudential limitations that address the potential for conflicts of interests, unsound banking
practices, and other adverse effects, the proposed
private placement and riskless principal activities are
closely related to banking as to be a proper incident
thereto within the meaning of section 4(c)(8) of the
BHC Act. 4 The Board also previously has determined
that acting 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
(12 U.S.C. § 377), and that revenue derived from such
activities is not subject to the 10 percent revenue
limitation on bank-ineligible securities underwriting
Order Approving an Application to Engage in
Private Placement and "Riskless Principal"
Activities
Baraett Banks, Inc., Jacksonville, Florida ("Applicant"), 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 of the
Board's Regulation Y (12 C.F.R. 225.23) to engage
de novo through its subsidiary, Baraett Securities,
Inc., Jacksonville, Florida ("Company"), in acting as
agent in the private placement of all types of securities, including providing related advisory services, and
buying and selling all types of securities on the order of
investors as a "riskless principal."
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 17,401 (1993)). 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
$39.6 billion, is the largest banking organization in
Florida, and the ninth largest banking organization in
Georgia.1 Applicant controls 29 bank subsidiaries in
Florida, and four bank subsidiaries in Georgia, and
engages directly and through subsidiaries in a broad
range of permissible nonbanking activities.
Company is engaged in limited bank-ineligible securities underwriting and dealing activities permissible
under section 20 of the Glass-Steagall Act (12 U.S.C.
§ 377).2 Company also is, and will continue to be, a
broker-dealer registered with the Securities and Exchange Commission ("SEC"), and a member of the
National Association of Securities Dealers, Inc.
("NASD"). Accordingly, Company is subject to the
record-keeping, reporting, fiduciary standards, and
other requirements of the Securities Exchange Act of
1934 (15 U.S.C. § 78a et seq. ), the SEC, and the
NASD.
1. Asset and ranking data are as of December 31, 1992.
2. Company may underwrite and deal in municipal revenue bonds,
1-4 family mortgage-related securities, commercial paper, and consumer-receivable-related securities. See Barnett Banks, Inc., 75 Federal Reserve Bulletin 190 (1989).
3. See Securities and Exchange Commission Rule 10b-10. 17 C.F.R.
240.10b-10(a)(8)(i).
4. See 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").
Legal Developments
and dealing.5 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 Bankers Trust and J.P.
Morgan,6 including the comprehensive framework of
restrictions designed to avoid potential conflicts of
interests, unsound banking practices, or other adverse
effects imposed by the Board in connection with
underwriting and dealing in securities.
Financial Factors, Managerial Resources, and Other
Considerations
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 public benefits that outweigh
adverse effects under the proper incident to banking
standard of section 4(c)(8) of the BHC Act. In this
regard, in every case under section 4 of the BHC Act,
the Board considers the financial condition and resources of the applicant and its subsidiaries, and the
effect of the proposed transaction on these resources.7
Based on the facts of this case, the Board concludes
that the financial considerations are consistent with
approval of this application. The managerial resources
of Applicant also are consistent with approval.
Under the framework established in this and prior
Board decisions, consummation of this proposal is not
likely to result in any significantly adverse effects,
such as an undue concentration of resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices. Moreover, the Board expects that the de novo entry of Applicant into the
market for the proposed private placement and "riskless principal" services in the United States would
5. Id.
6. Among the prudential limitations detailed more fully in Bankers
Trust and J.P. Morgan are that Company will maintain specific
records that will clearly identify all "riskless principal" transactions,
and that Company will not engage in any "riskless principal" transactions for any securities carried in its inventory. When acting as a
"riskless principal", Company will only engage in transactions in the
secondary market, and not at the order of a customer that is the issuer
of the securities to be sold; will not act as "riskless principal" in any
transaction involving a security for which it makes a market; and will
not hold itself out as making a market in the securities that it buys and
sells as a "riskless principal". Moreover, Company will not engage in
"riskless principal" transactions on behalf of its foreign affiliates that
engage in securities dealing activities outside the United States and
will not act as "riskless principal" for registered investment company
securities. In addition, Company will not act as a "riskless principal"
with respect to any securities of investment companies that are
advised by Applicant or any of its affiliates. With regard to private
placement activities, Applicant has committed that Company will not
privately place registered investment company securities or securities
of investment companies that are advised by Applicant or any of its
affiliates.
7. 12 C.F.R. 225.25.
801
provide added convenience to Applicant's customers,
and would increase the level of competition among
existing providers of these services. Accordingly, the
Board has determined that the performance of the
proposed activities by Applicant could reasonably be
expected to produce public benefits that would outweigh possible adverse effects under the proper incident to banking standard of section 4(c)(8) of the BHC
Act.
Based on the foregoing and all the facts of record,
the Board has determined to, and hereby does, approve the application subject to 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 the terms
and 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. The Board's decision is specifically conditioned on compliance with all
the commitments made in connection with this application, including the commitments discussed in this
Order and the conditions set forth in the above noted
Board regulations and orders. These commitments and
conditions shall be deemed to be conditions imposed
in writing by the Board in connection with its findings
and decisions, and may be enforced in proceedings
under applicable law.
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
Atlanta, pursuant to delegated authority.
By order of the Board of Governors, effective
June 23, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips.
JENNIFER J . JOHNSON
Associate Secretary of the Board
Republic Bancorp, Inc.
Ann Arbor, Michigan
Order Approving the Acquisition of a Savings
Association
Republic Bancorp, Inc., Ann Arbor, Michigan ("Republic"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied pursuant to section 4(c)(8) of the BHC Act
802
Federal Reserve Bulletin • August 1993
(12 U.S.C. § 1843(c)(8)) and section 225.23 of the
Board's Regulation Y (12 C.F.R. 225.23), to merge
with Horizon Financial Services, Inc. ("HFS"), and
thereby indirectly acquire its savings association subsidiary, Horizon Savings Bank ("Horizon"), both of
Beachwood, Ohio. Horizon would be owned by Republic in accordance with section 225.25(b)(9) of the
Board's Regulation Y (12 C.F.R. 225.25(b)(9)).»
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (58 Federal Register 12,038 (1993)). The
time for filing comments has expired, and the Board
has considered the application and all the comments
received in light of the public interest factors set forth
in section 4(c)(8) of the BHC Act.
The Board has determined that the operation of a
savings association is closely related to banking and
permissible for bank holding companies. 12 C.F.R.
225.25(b)(9). In making this determination, the Board
required that savings associations acquired by bank
holding companies conform their direct and indirect
activities to those permissible for bank holding companies under section 4 of the BHC Act.2
In considering an application under section 4(c)(8) of
the BHC Act, the Board is required to determine that
the applicant's ownership and operation of the acquired company "can reasonably be expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency,
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).
Republic, with total consolidated assets of approximately $743 million, controls six banks in Michigan.3
Republic is the 16th largest banking organization in
Michigan, controlling deposits of $474 million, representing less than 1 percent of total deposits in commercial banking organizations in the state.4 Horizon is
the 20th largest thrift organization in Ohio, controlling
deposits of $336.6 million, representing less than
1. In connection with the proposed acquisition, Republic also has
requested Board approval to acquire an option to purchase
19.9 percent of the voting shares of HFS.
2. Republic has committed to terminate all impermissible activities
conducted by Horizon. In this regard, Republic has committed to
terminate the annuities and mutual funds sales activities currently
engaged in by Horizon through its subsidiary, Horizon Financial
Insurance Agency, Inc., Beachwood, Ohio, upon or before consummation of this proposal. Republic also has committed to divest any
impermissible real estate investments within two years of consummation of this proposal, and not to engage in any new impermissible real
estate development projects or investments during this period.
3. Asset data are as of March 31, 1993.
4. State commercial bank deposit data are as of June 30, 1992.
1 percent of total deposits in thrift institutions in the
state.5
Community Reinvestment Act Considerations
In considering an application to acquire a savings
association under section 4 of the BHC Act, the Board
reviews the records of performance of the relevant
institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq. ) ("CRA").* 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 moderateincome neighborhoods, consistent with the safe and
sound operation of the institution," and to take that
record into account in its evaluation of bank holding
company applications.7
In connection with this application, the Board has
reviewed comments received from the Moorish Community Redevelopment Corporation, Painesville, Ohio
("Protestant"), regarding Horizon's performance under the CRA. In particular, Protestant alleges that
Horizon does not have a formal program to ascertain
the credit needs of the communities it serves, including low- and moderate-income neighborhoods, and
that Horizon does not market all of its available credit
products and services to these communities. Protestant also asserts that Horizon has not designed credit
programs to attract low- and moderate-income and
minority borrowers, does not participate in any governmentally insured loan programs, and does not
participate in any local community development or
redevelopment projects.
The Board has carefully reviewed the CRA performance records of Republic and Horizon, as well as
Protestant's comments and Republic's responses to
those comments, and all the other relevant facts in
light of the CRA, the Board's regulations, and the
Statement of the Federal Financial Supervisory Agen-
5. State thrift deposit data are as of September 30, 1992.
6. The Board previously has determined that the CRA by its terms
generally does not apply to applications by bank holding companies to
acquire nonbanking companies under section 4(c)(8) of the BHC Act.
The Mitsui Bank, Ltd., 76 Federal Reserve Bulletin 381 (1990). The
Board also has stated that, unlike other companies that may be
acquired by bank holding companies under section 4(c)(8) of the BHC
Act, savings associations are depository institutions, as that term is
defined in the CRA, and thus, acquisitions of savings associations are
subject to review under the express terms of the CRA. Norwest
Corporation, 76 Federal Reserve Bulletin 873 (1990).
7. 12 U.S.C. § 2903.
Legal Developments
cies Regarding the Community Reinvestment Act
("Agency CRA Statement").8
The Board notes that Protestant's comments relate
to weaknesses in the CRA performance of the institution Republic proposes to acquire. In this regard, the
Board has reviewed the CRA performance record of
Republic and Republic's commitment to implement its
policies and programs at Horizon. The Board also has
considered steps taken by Horizon to improve its CRA
performance. Moreover, Horizon's primary regulator,
the Office of Thrift Supervision ("OTS"), has advised
the Board that these initiatives have addressed the
CRA performance issues noted by the OTS in Horizon's last examination.
A. CRA Performance Examination
The Agency CRA Statement provides that a CRA
examination is an important, and often controlling,
factor in the consideration of an institution's CRA
record and that these reports will be given great weight
in the applications process.9 The Board notes that all
of Republic's subsidiary banks have received "outstanding" or "satisfactory" ratings during the most
recent examinations of their CRA performance. In
particular, Republic's lead subsidiary bank, Premier
Bank, Jackson, Michigan, received an "outstanding"
rating for CRA performance from its primary regulator, the Federal Deposit Insurance Corporation
("FDIC"), in December 1992.10 Horizon received a
"needs to improve" CRA rating in its most recent
examination by its primary regulator, the OTS, in
January 1992.
B. Other Aspects of CRA Performance
Policies and Programs. Republic has in place the
types of policies outlined in the Agency CRA Statement to effectively monitor the CRA performance of
each of its subsidiary banks. Upon consummation of
this proposal, Republic will implement these policies
at Horizon and has committed to report to the Federal
Reserve Bank of Chicago on the progress of Horizon
within six months of consummation of this proposal.
8. 54 Federal Register 13,742 (1989).
9. Id. at 13,745.
10. Republic's other subsidiary banks have received the following
ratings from the FDIC in their most recent CRA examinations:
Republic Bank, Flint Township, Michigan, received a "satisfactory"
rating in October 1991; Republic Bank, S.E., Bloomfield Hills, Michigan, received a "satisfactory" rating in January 1992; Republic
Bank-Ann Arbor, Ann Arbor, Michigan, received a "satisfactory"
rating in September 1992; Republic Bank-Central, Williamston, Michigan, received a "satisfactory" rating in October 1991; and Republic
Bank-North, Bellaire, Michigan, received a "satisfactory" rating in
January 1993.
803
In this regard, the CRA compliance officers of each
Republic bank subsidiary meet monthly to discuss
Republic's corporate programs and policies. Each
bank subsidiary also is required to submit periodic
reports of its CRA performance ("CRA Reports") for
review by Republic. These CRA Reports provide
information on the bank affiliate's community involvement and service, marketing and special credit related
programs, and a description of the banking products
and services available at each affiliate's offices. The
CRA Reports also provide specific information with
respect to each affiliate's participation in community
meetings and programs.
At the holding company level, the CRA Reports are
reviewed by Republic's Management Council, which
assesses each bank subsidiary's level of community
involvement and CRA compliance. Following this
assessment, the Management Council allocates resources to ensure that each bank affiliate meets the
credit needs of its communities, including low- and
moderate-income neighborhoods. Republic also employs two individuals who are responsible for implementing its corporate CRA program at each bank
subsidiary. These individuals coordinate CRA training
and testing of all loan officers at each Republic bank
subsidiary, and conduct self-assessments of Republic's overall CRA performance. These individuals report directly to Republic's board of directors.
Republic will monitor Horizon's CRA performance
through its corporate CRA program and through periodic telephone contacts with Horizon's newly appointed CRA officer. Republic's executive CRA compliance officer will have overall responsibility, subject
to oversight by Republic's board of directors, for
strengthening Horizon's CRA performance. In addition, Republic will add three individuals to Horizon's
board of directors to monitor improvements in Horizon's CRA performance.
Ascertainment and Marketing. Horizon has taken a
number of steps to improve its ascertainment and
marketing efforts. In particular, Horizon has increased
its CRA training for all officers and employees, and has
enhanced its officer call program to ascertain community credit needs. In this regard, Horizon now emphasizes the submission of call reports by officers and
directors, and has redesigned its reporting mechanisms to more effectively track loan officer calls in
low- and moderate-income census tracts. Management
also has expanded its marketing efforts to include calls
on minority realtors and has allocated funds to advertise its credit products and services in media directed
at low- and moderate-income neighborhoods.
To aid in ascertaining community credit needs,
Horizon plans to distribute customer satisfaction
questionnaires, and will hold town hall meetings in
804
Federal Reserve Bulletin • August 1993
municipalities where it has branch offices. In addition, Horizon continues to advertise available credit
services through newspapers, statement stuffers,
lobby handouts, trade journals, magazines, mass
mailings, seminar presentations, broker sales calls,
and realtor mailings.
Lending and Other Activities. Horizon has introduced products and services designed to meet the
credit needs of low- and moderate-income consumers.
For example, Horizon has developed a "Community
Homebuyers Program" that features 10-year to 30year fixed rate mortgages, flexible underwriting criteria, and a reduction in the down payment requirement
and closing costs. Horizon also participates in the
Earned Home Ownership Program ("EHOP")
through the Northeastern Ohio League of Savings
Institutions. EHOP provides pre-purchase counseling
and training to families unable to obtain traditional
mortgages. Moreover, Horizon has adopted a formal
branch closing policy that includes the views of local
community groups.
In addition to implementing its corporate CRA program at Horizon, Republic has identified steps specifically designed to improve Horizon's existing CRA
program. In particular, Republic:
(i) Will appoint a new CRA officer at Horizon;11
(ii) Will develop additional procedures to improve
Horizon's ability to make loans to minorities and to
residents of low- and moderate-income neighborhoods;
(iii) Will refocus Horizon on mortgage lending
with further commercial lending oriented to SBAguaranteed lending; and
(iv) Will consider participation in various special
lending programs designed to assist residents of lowand moderate-income neighborhoods in purchasing
homes.
Republic will implement a "second look process" in
which denied loan applications from minority applicants or applicants from low- and moderate-income
neighborhoods will be reviewed by a loan underwriting
manager. Republic also will implement an alternative
underwriting analysis in situations in which residents
of low- and moderate-income neighborhoods are unable to establish creditworthiness by traditional
means. In appropriate cases, individuals also will be
given the opportunity to rebut negative credit information that may impact their ability to receive a loan.
11. In this regard, Horizon, with Republic's assistance, recently has
hired a new CRA officer to implement and oversee Horizon's CRA
policy. This individual has extensive experience in mortgage banking
in Cleveland, as well as lending to individuals in low- and moderateincome neighborhoods.
Moreover, Republic will establish a Community Investment Committee to assist Horizon's board of
directors in its oversight of the institution's CRA
performance.
Upon consummation of this proposal, Horizon will
offer FHA and VA guaranteed loans. In addition,
Republic will consider participating in programs such
as Cleveland Action to Support Housing ("CASH"),
and the Afford-a-Home Program through the Cleveland Housing Network.
In light of all the facts of record, including the steps
Horizon has taken to improve its CRA performance
and the CRA programs that Republic will implement at
Horizon, the Board believes that considerations relating to the convenience and needs of the communities
to be served are consistent with approval of this
application.12
Other Considerations
The banking subsidiaries of Republic and HFS do not
compete in any of the same banking markets. Accordingly, the Board concludes that this proposal would
not have a significantly adverse effect on competition
in any relevant banking market. The financial and
managerial resources of Republic and its subsidiaries,
and HFS and its subsidiaries also are consistent with
approval.13
Based on all the facts of record, the Board has
determined that the balance of the public interest
factors it must consider under section 4(c)(8) of the
BHC Act is favorable and consistent with approval of
12. Protestant has requested that the Board hold a public meeting
or hearing on this application regarding Horizon's CRA-related
activities in low- and moderate-income areas. The Board's rules
provide that a hearing is required under section 4 of the BHC Act
only if there are disputed issues of material fact that cannot be
resolved in some other manner. In addition, 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),
262.25(d), and 225.23(g). The Board has carefully considered this
request. In the Board's view, interested parties have had a sufficient
opportunity to present written submissions, and they have submitted detailed written comments that have been considered by the
Board. Moreover, Protestant's allegations state conclusions about
Horizon's CRA record without providing any underlying material
facts. On the basis of all the facts of record, the Board has
determined that a public meeting or hearing is not necessary to
clarify the factual record in this application or otherwise required
under the Board's rules. Accordingly, the request for a public
meeting or hearing on this application is hereby denied.
13. Upon consummation, Republic will meet all applicable capital
requirements and has committed that Horizon will meet all current
and future minimum capital ratios adopted for savings associations by
the OTS or the FDIC. For purposes of this commitment, investments
in impermissible real estate projects and developments will be excluded from the definition of capital.
Legal Developments
Republic's application to acquire HFS. 14 Accordingly, the Board has determined that the application
should be, and hereby is, approved. This approval is
specifically conditioned on compliance by Republic
with all of the commitments and conditions made in
connection with this application. The acquisition of
Horizon also is subject to all of the conditions
contained in the Board's Regulation Y, including
those in sections 225.4(d) and 225.23(b)(3) (12 C.F.R.
225.4(d) and 225.23(b)(3)), and to the Board's authority to require such modification or termination of the
activities of a bank holding company, or any of its
subsidiaries, as it finds necessary to assure compliance with, or prevent evasions of, the provisions and
purposes of the BHC Act and the Board's regulations
and orders issued thereunder. All the commitments
and conditions relied on in reaching this decision in
this case are deemed to be conditions imposed in
writing by the Board in connection with its findings
and decision, and as such may be enforced in proceedings under applicable law.
The 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 Chicago,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
June 14, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, Kelley, LaWare, and Lindsey. Absent and not
voting: Governors Angell and Phillips.
JENNIFER J . JOHNSON
Associate Secretary of the Board
14. Protestant also asserts that Horizon has no affirmative action
plan to employ minorities. Because Horizon employs more than 50
people and acts as an agent to sell or redeem U.S. savings bonds and
notes, it is required by Treasury Department and Department of
Labor regulations to:
(1) File annual reports with the Equal Employment Opportunity
Commission; and
(2) Have in place a written affirmative compliance program which
states its intentions, efforts, and plans to achieve equal opportunity
in the employment, hiring, promotion, and separation of personnel.
Horizon also states that it contacts minority and women's groups in
the Cleveland area when Horizon has job openings, that it takes steps
to ensure that minorities and women are given full opportunities for
promotions and transfers, and that its supervisors have been informed
of the importance of promoting equal employment opportunities.
ORDERS ISSUED
BANKING
ACT
UNDER
805
INTERNATIONAL
Citizens National Bank
Seoul, Korea
Order Approving Establishment of a Representative
Office
Citizens National Bank, Seoul, Korea ("Bank"), a
foreign bank within the meaning of the International
Banking Act ("IBA"), has applied under section 10(a)
of the IBA (12 U.S.C. § 3107(a)) to establish a representative office in Los Angeles, California. The Foreign Bank Supervision Enhancement Act of 1991
("FBSEA"), which amended the IBA, provides that a
foreign bank must obtain the approval of the Board to
establish a representative office in the United States.
Notice of the application affording interested persons an opportunity to submit comments has been
published in a newspaper of general circulation in
Los Angeles (Los Angeles Times, April 23, 1992). The
time for filing comments has expired and all comments
have been considered.
Bank, with $20.4 billion in consolidated assets,1 is
the largest in Korea in total domestic deposits and the
seventh largest in asset size. Bank has representative
offices in New York, London, Tokyo, and Singapore,
and a banking subsidiary in Luxembourg. Bank does
not engage, directly or indirectly, in any nonbanking
activities in the United States. The proposed representative office would provide customer relations and
other services and would conduct general financial and
economic research. The majority of Bank's stock is
owned by the Government of Korea.2
In acting on an application to establish a representative office, the IBA and Regulation K provide that
the Board shall take into account whether the foreign
bank engages directly in the business of banking
outside of the United States, has furnished to the
Board the information it needs to assess adequately
the application, and is subject to comprehensive
supervision or regulation on a consolidated basis by
its home country supervisor (12 U.S.C. § 3105(d)(2);
12 C.F.R. 211.24). The Board may also take into
account additional standards as set forth in the
IBA (12 U.S.C. § 3105(d)(3)-(4)) and Regulation K
(12 C.F.R. 211.24(c)).
The Board has previously stated that the standards
that apply to the establishment of a branch or agency
1. Data are as of December 31, 1991, unless otherwise noted.
2. The Government of Korea directly owns 72.58 percent of Bank.
The Korean Government Pension Management Corporation owns an
additional 6.42 percent of Bank.
806
Federal Reserve Bulletin • August 1993
need not in every case apply to the establishment of a
representative office because representative offices do
not engage in a banking business and cannot take
deposits or make loans (see 58 Federal Register 6348,
6351 (1993)). In evaluating an application to establish a
representative office under the IB A and Regulation K,
the Board will take into account the standards that
apply to establishment of branches and agencies,
subject to the following considerations. With respect
to supervision by home country authorities, a foreign
bank that proposes to establish a representative office
must be subject to a significant degree of supervision
by its home country supervisor. Among the factors the
Board may consider are the extent to which there is
regular review of a substantial portion of the bank's
operations by the home country supervisor through
examination, review of external audits, or a comparable method, submission of periodic reports relating to
financial performance, and assurance that the bank
itself has a system of internal monitoring and control
that enable bank management to administer properly
the bank's operations. The home country supervisor
must also have indicated that it does not object to the
establishment of the representative office in the United
States.
A foreign bank's financial and managerial resources
will be reviewed to determine whether its financial
condition and performance demonstrate that it is capable of complying with applicable laws and has an
operating record that would be consistent with the
establishment of a representative office in the United
States. If the financial condition of the foreign bank
significantly differs from international norms, the foreign bank would be evaluated to determine whether
such difference can be justified in the context of the
operations of the applicant and the proposed representative office. All foreign banks, whether operating
through branches, agencies or representative offices,
will be required to provide adequate assurances of
access to information on the operations of bank and its
affiliates necessary to determine compliance with U.S.
laws.
In this case, with respect to the issue of supervision
by home country authorities, the Board has considered the following information. Bank is subject to the
supervisory authority of the Korean Ministry of Finance ("Ministry"), the Board of Audit and Inspection, and the Bank of Korea, including the Superintendent of the Office of Bank Supervision and
Examination (the "OBSE"), a section within the Bank
of Korea. The Ministry has approved the establishment of the office by Bank. The Ministry and the
OBSE perform annual, on-site examinations of Bank.
In addition, the Board of Audit and Inspection performs annual examinations of Bank's head office. An
annual examination includes a review of Bank's compliance with Korean banking laws, regulations, and
orders issued by the Monetary Board, adequacy of the
internal control system, accounting procedures, the
acquisition, management, quality, and disposition of
assets, capital adequacy, risk exposure, and liquidity.
Bank is required to file periodic financial reports with
both the Ministry and OBSE. These reports include
information on loan status, changes in deposits, conditions of borrowers with large delinquent loans, new
indices of borrowers with delinquent loans, and the
status of internal auditing activities. The Ministry also
receives regular reports on foreign operations, including audit reports and reports on transactions between
Bank and its affiliates. Based on all the facts of record,
which include the information described above, the
Board concludes that factors relating to the supervision of Bank by its home country supervisors are
consistent with approval of the proposed representative office.
The Board has also found that Bank engages directly
in the business of banking outside of the United States
through its commercial banking operations in Korea,
and has provided the Board with the information
necessary to assess the application through submissions that address relevant issues.
The Board has also taken into account the additional
standards set forth in section 7 of the IBA and Regulation K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)). As noted above, Bank has received the
consent of the Ministry to establish the proposed
representative office. In addition, the Ministry and
OBSE may share information on Bank's operations
with other supervisors, including the Board.
With respect to the financial and managerial resources of Bank, Bank's overall record of operations
in its home country is consistent with the operation of
a representative office and demonstrates that Bank is
capable of operating within applicable law. Although
Bank has not demonstrated that its capital position is
in conformance with standards under the Basle Capital
Accord, given Bank's record of performance, its overall financial resources, and its standing with its home
country supervisors, the Board has determined that
financial and managerial factors are consistent with
approval of the proposed representative office. Bank,
which currently operates a representative office in
New York, appears to have the experience and capacity to support this additional representative office.
Bank has also established controls and procedures for
the proposed representative office to ensure compliance with U.S. law.
Bank has committed that it will make available to
the Board such information on the operations of Bank
and any affiliate of Bank that the Board deems neces-
Legal Developments
sary to determine and enforce compliance with the
IBA, the Bank Holding Company Act of 1956, as
amended, and other applicable Federal law, to the
extent permitted by law. The Board has reviewed the
restriction on disclosure to information in Korea, and
has communicated with certain government authorities regarding access to information. In addition, Bank
has committed to cooperate with the Board to obtain
approvals or consents that may be required for the
Board to gain access to information that the Board
may request. In light of these commitments and other
facts of record, and subject to the condition described
below, the Board concludes that Bank has provided
adequate assurances of access to any necessary information the Board may request.
On the basis of all the facts of record, and subject to
the commitments made by Bank, as well as the terms
and conditions set forth in this Order, the Board has
determined that Bank's application to establish a representative office should be, and hereby is, approved.
If any restrictions on access to information on the
operations or activities of Bank and any of its affiliates
subsequently interfere with the Board's ability to
determine the compliance by Bank or its affiliates with
applicable federal statutes, the Board may require
termination of any of the Bank's direct or indirect
activities in the United States. Approval of this application is also specifically conditioned on compliance
by Bank with the commitments made in connection
with this application, and with the conditions contained in this Order.3 The commitments and conditions
referred to above are conditions imposed in writing by
the Board in connection with its decision, and may be
enforced in proceedings under 12 U.S.C. § 1818 or
12 U.S.C. § 1847 against Bank, its offices, and its
affiliates.
By order of the Board of Governors, effective
June 25, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, LaWare, Lindsey, and Phillips. Absent and not
voting: Governors Angell and Kelley.
JENNIFER J . JOHNSON
Associate Secretary of the Board
3. The Board's authority to approve the establishment of the
proposed representative office parallels the continuing authority of the
State of California to license offices of a foreign bank. The Board's
approval of this application does not supplant the authority of the
State of California, and its agent, the California State Banking
Department, to license the proposed representative office of Bank in
accordance with any terms or conditions that the California State
Banking Department may impose.
807
Medium Business Bank of Taiwan
Taipei, Taiwan
Order Approving Establishment of a Representative
Office
Medium Business Bank of Taiwan ("Bank"), Taipei,
Taiwan, a foreign bank within the meaning of the
International Banking Act ("IBA"), has applied under
section 10(a) of the IBA (12 U.S.C. § 3107(a)) to
establish a representative office in Los Angeles, California. The Foreign Bank Supervision Enhancement
Act of 1991 ("FBSEA"), which amended the IBA,
provides that a foreign bank must obtain the approval
of the Board to establish a representative office in the
United States.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published in a newspaper of general circulation in
Los Angeles, California (Los Angeles Daily Journal,
April 30, 1992). The time for filing comments has
expired and all comments have been considered.
Bank is a commercial bank that was chartered in
1976 through the reorganization of its predecessor, the
Taiwan Mutual Loans and Savings Co., Ltd. Bank is
owned by the Provincial Government of Taiwan
("Provincial Government") both directly and through
the Bank of Taiwan, Taipei, Taiwan, which holds
42 percent of the voting shares of Bank.1
Bank, with assets of $20.4 billion on June 30, 1992,
is the seventh largest bank in Taiwan. Bank has over
100 offices in Taiwan and operates a representative
office in the Netherlands and an offshore banking unit
in Taiwan. Bank does not engage directly or indirectly
in any nonbanking activities in the United States. The
proposed representative office would provide services
that include acting as liaison with Bank's correspondents, providing customer relations services, and conducting research.
In acting on an application to establish a representative office, the IBA and Regulation K provide that
the Board shall take into account whether the foreign
bank engages directly in the business of banking
outside of the United States, has furnished to the
Board the information it needs to assess adequately
the application, and is subject to comprehensive supervision or regulation on a consolidated basis by
its home country supervisor (12 U.S.C. § 3105(d)(2);
12 C.F.R. 211.24). The Board may also take into
account additional standards as set forth in the IBA
1. The Board approved the establishment of a branch by the Bank
of Taiwan under the FBSEA. See Bank of Taiwan, 79 Federal Reserve
Bulletin 541 (1993).
808
Federal Reserve Bulletin • August 1993
and Regulation K (12 U.S.C. § 3105(d)(3)-(4);
12 C.F.R. 211.24(c)).
The Board has previously stated that the standards
that apply to the establishment of a branch or agency
need not in every case apply to the establishment of a
representative office because representative offices do
not engage in a banking business and cannot take
deposits or make loans. See 58 Federal Register 6348,
6351 (1993). In evaluating an application to establish a
representative office under the IBA and Regulation K,
the Board will take into account the standards that
apply to establishment of branches and agencies,
subject to certain considerations relating to financial
factors and supervision by home country authorities.
See Citizens National Bank, 79 Federal Reserve Bulletin 805 (1993).
Bank is subject to supervision and regulation by the
Ministry of Finance of Taiwan ("Ministry"), the Central Bank of China ("Central Bank"), and the Ministry
of Audit of Taiwan in the same manner as other banks
from Taiwan that the Board, in considering applications by those banks to establish branches or agencies,
has determined are subject to comprehensive home
country supervision on a consolidated basis.2 Because
Bank is supervised by the Taiwanese authorities on
the same terms and conditions set forth in the Board's
Orders relating to those applications, the Board has
determined that Bank is subject to comprehensive
supervision or regulation by its home country supervisors on a consolidated basis.
The Board also has found that Bank engages directly
in the business of banking outside of the United States
through its commercial banking operations in Taiwan,
and has provided the Board with the information
necessary to assess the application through submissions that address relevant issues.
The Board has taken into account the additional
standards set forth in section 7 of the IBA and Regulation K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)). In this regard, Bank has received the
consent of the Ministry to establish the proposed
representative office. In addition, the Ministry and
Central Bank may share information on Bank's operations with other supervisors, including the Board.
With respect to the financial and managerial resources of Bank, Bank's overall record of operations
in its home country demonstrates that Bank is capable
of operating within applicable law and is consistent
with the operation of a representative office. Although
Bank has not demonstrated that its capital position is
in conformance with international standards under the
2. See TaipeiBank, 79 Federal Reserve Bulletin 143 (1993); ChiaoTung Bank, 79 Federal Reserve Bulletin 541 (1993); Bank of Taiwan,
supra.
Basle Capital Accord, given Bank's record of performance, its overall financial resources, and its standing
with its home country supervisors, the Board has
determined that financial and managerial factors are
consistent with approval of the proposed representative office. The proposed representative office would
be Bank's second foreign office, and Bank appears to
have the experience and capacity to support this
additional representative office. Bank has also established controls and procedures for the proposed representative office to ensure compliance with U.S. law.
Bank has committed that it will make available to
the Board such information on the operations of Bank
and any affiliate of Bank that the Board deems necessary to determine and enforce compliance with the
IBA, the Bank Holding Company Act of 1956, as
amended, and other applicable Federal law, to the
extent permitted by law. The Board has reviewed the
restrictions on disclosure of information in Taiwan and
has communicated with certain government authorities concerning access to information. The Ministry
and Central Bank may share information on Bank's
operations with other supervisors, including the
Board. Bank also has committed to cooperate with the
Board to obtain any approvals or consents that may be
needed to gain access to information that the Board
may request. In light of these commitments and other
facts of record, and subject to the condition described
below, the Board concludes that Bank has provided
adequate assurances of access to any necessary information the Board may request.
On the basis of all of the facts of record, and subject
to the commitments made by Bank, as well as the
terms and conditions set forth in this Order, the Board
has determined that Bank's application to establish a
representative office should be, and hereby is, approved. If any restrictions on access to information on
the operations or activities of Bank or any of its
affiliates subsequently interfere with the Board's ability to determine the compliance by Bank or its affiliates with applicable federal statutes, the Board may
require termination of any of the Bank's direct or
indirect activities in the United States. Approval of
this application is also specifically conditioned on
compliance by Bank with the commitments made in
connection with this application, and with the conditions contained in this Order.3 The commitments and
3. The Board's authority to approve the establishment of the
proposed representative office parallels the continuing authority of the
State of California to license offices of a foreign bank. The Board's
approval of this application does not supplant the authority of the
State of California, and its agent, the California State Banking
Department, to license the proposed representative office of Bank in
accordance with any terms or conditions that the California State
Banking Department may impose.
Legal Developments
conditions referred to above are conditions imposed in
writing by the Board in connection with its decision,
and may be enforced in proceedings under 12 U.S.C.
§ 1818 or 12 U.S.C. § 1847 against Bank, its offices,
and its affiliates.
By order of the Board of Governors, effective
June 25, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, LaWare, Lindsey, and Phillips. Absent and not
voting: Governors Angell and Kelley.
JENNIFER J . JOHNSON
Associate Secretary of the Board
Singer & Friedlander, Ltd.
London, England
Order Approving Establishment of a Representative
Office
Singer & Friedlander, Ltd., London, England,
("Bank"), a foreign bank within the meaning of the
International Banking Act ("IBA"), has applied under
section 10(a) of the IBA (12 U.S.C. § 3107(a)) to
establish a representative office in Miami, Florida. The
Foreign Bank Supervision Enhancement Act of 1991
("FBSEA"), which amended the IBA, provides that a
foreign bank must obtain the approval of the Board to
establish a representative office in the United States.
Notice of the application, affording interested persons an opportunity to submit comments, has been
published in a newspaper of general circulation in
Miami, Florida {Miami Herald, July 10, 1992). The
time for filing comments has expired and all comments
have been considered.
Bank is a merchant bank chartered in the United
Kingdom. Bank, with assets of $1.3 billion, is wholly
owned by Singer and Friedlander Group, PLC ("Singer Group"), London, England, through two U.K.
holding companies, Ancomass, Ltd., and Singer &
Friedlander Holdings, Ltd.1 The proposed representative office is intended to assist in the Bank's international financial and banking activities that are focused
on Latin America and the United States. The office
also will act as a liaison between Bank, its U.S. and
Latin American customers, and its correspondent
banks.
In acting on an application to establish a representative office, the IBA and Regulation K provide that
the Board shall take into account whether the foreign
bank engages directly in the business of banking
outside of the United States, has furnished to the
1. Data are as of December 31, 1992, unless otherwise noted.
809
Board the information it needs to assess adequately
the application, and is subject to comprehensive supervision or regulation on a consolidated basis by its
home country supervisor (12 U.S.C. § 3105(d)(2)).
The Board may also take into account additional
standards as set forth in the IBA and Regulation K
(12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)).
The Board has previously stated that the standards
that apply to the establishment of a branch or agency
need not in every case apply to the establishment of a
representative office because representative offices do
not engage in a banking business and cannot take
deposits or make loans. See 58 Federal Register 6348,
6351 (1993). In evaluating an application to establish a
representative office under the IBA and Regulation K,
the Board will take into account the standards that
apply to establishment of branches and agencies,
subject to certain considerations relating to financial
factors and supervision by home country authorities.
See Citizens National Bank, 79 Federal Reserve Bulletin 805 (1993).
Bank is subject to supervision and regulation by the
Bank of England. The Board has previously determined, in connection with an application involving a
particular bank in the United Kingdom, that the U.K.
bank was subject to home country supervision on a
consolidated basis.2 In this case, the Board has determined that Bank is supervised in its banking operations by the Bank of England on the same terms and
conditions as set forth in the earlier Order. Bank is
also subject to rules of self-regulatory organizations
that act under authority delegated by the Department
of Trade and Industry to the Securities and Investment
Board ("SIB"). The SIB establishes general principles
that other self-regulatory organizations ("SROs") apply to firms engaged in particular types of investment
activities. Bank is a member of two such SROs, the
Securities and Futures Authority ("SFA") and the
Investment Management Regulatory Organization
("IMRO").
With respect to the supervision of the investment
activities of Bank, the Bank of England acts as the lead
regulator of Bank.3 As lead regulator, the Bank of
England meets with the SFA and IMRO periodically to
discuss prudential and supervisory matters pertaining
to Bank. In addition, the SFA and IMRO ensure that
2. See Coutts & Co. AG, 79 Federal Reserve Bulletin 636 (1993),
with respect to supervision of National Westminster Bank, PLC.
3. The Bank of England has entered Memoranda of Understanding
("MOU") with the SFA and IMRO that create frameworks for the
monitoring and assessment of financial soundness of institutions
authorized under both the Banking Act and the Financial Services Act
in order to avoid duplication of oversight. The MOU does not affect
either the Bank's or the self-regulatory organizations' statutory duties
to ensure that Bank remains "fit and proper" from both financial and
managerial standpoints.
810
Federal Reserve Bulletin • August 1993
Bank is fit and proper to engage in securities and
investment management activities through tests of the
integrity and competence of Bank's management and
the financial soundness of Bank. In light of all the facts
of record, the Board has determined that Bank is
subject to comprehensive supervision or regulation by
home country supervisors on a consolidated basis.
The Board has also found that Bank engages directly
in the business of banking outside of the United States
through its commercial banking operations in England,
and has provided the Board with the information
necessary to assess the application through submissions that address relevant issues.
The Board has also taken into account the additional
standards set forth in section 7 of the IBA and Regulation K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R.
211.24(c)(2)). In this regard, the Board notes that the
Bank of England does not object to the establishment
of the proposed representative office. In addition, the
Bank of England may share information on Bank's
operations with other supervisors, including the
Board. With respect to financial and managerial resources of Bank, given Bank's record of operations in
its home country, its overall financial resources, and
its standing with its home country supervisors, the
Board has determined that financial and managerial
factors are consistent with approval of the proposed
representative office. Bank appears to have the experience and capacity to support the proposed office and
has also established controls and procedures for the
proposed representative office to ensure compliance
with U.S. law.
Bank has committed that it will make available to
the Board such information on the operations of Bank
and any affiliate of Bank that the Board deems necessary to determine and enforce compliance with the
IBA, the Bank Holding Company Act of 1956, as
amended, and other applicable Federal law, to the
extent permitted by law. The Board has reviewed the
restrictions on disclosure in relevant jurisdictions in
which Bank operates and has communicated with
certain government authorities concerning access to
information. The Board notes that certain of Bank's
affiliates may not provide information without the
consent of third parties. In this regard, each of Bank
and Singer Group also has committed to cooperate
with the Board to obtain any approvals or consents
that may be needed to gain access to information that
may be requested by the Board. In addition, the Bank
of England and other regulators may share information
on Bank's operations with other supervisors, including
the Board. In light of these commitments and other
facts of record, and subject to the condition described
below, the Board concludes that Bank has provided
adequate assurances of access to any necessary information the Board may request.
On the basis of all of the facts of record, and subject
to the commitments made by Bank, as well as the
terms and conditions set forth in this order, the Board
has determined that Bank's application to establish a
representative office should be, and hereby is, approved. If any restrictions on access to information on
the operations or activities of Bank or any of its
affiliates subsequently interfere with the Board's ability to determine the compliance by Bank or its affiliates with applicable Federal banking statutes, the
Board may require termination of any of the Bank's
direct or indirect activities in the United States. Approval of this application is also specifically conditioned on compliance by Bank with the commitments
made in connection with this application, and with the
conditions contained in this order.4 The commitments
and conditions referred to above are conditions imposed in writing by the Board in connection with its
decision, and may be enforced in proceedings under
12 U.S.C. § 1818 or 12 U.S.C. § 1847 against Bank, its
office and its affiliates.
By order of the Board of Governors, effective
June 25, 1993.
Voting for this action: Chairman Greenspan and Governors
Mullins, LaWare, Lindsey, and Phillips. Absent and not
voting: Governors Angell and Kelley.
JENNIFER J . JOHNSON
Associate Secretary of the Board
4. The Board's authority to approve the establishment of the
proposed representative office parallels the continuing authority of the
State of Florida to license offices of a foreign bank. The Board's
approval of this application does not supplant the authority of the
State of Florida, and its agent, the Florida State Banking Department,
to license the proposed representative office of Bank in accordance
with any terms or conditions that the Florida State Banking Department may impose.
Legal Developments
ACTIONS
1991
TAKEN
UNDER THE FEDERAL DEPOSIT INSURANCE
CORPORATION
IMPROVEMENT
811
ACT OF
By the Secretary of the Board
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.
„ , TT ,,.
^
Bank Holding Company
First Bank System, Inc.,
Minneapolis, Minnesota
ACTIONS
TAKEN
Acquired
Thrift
Surviving
Bank(s)
Colorado National Bank,
Denver, Colorado
Approval
Date
Central Bank/Bank
Western N.A.,
Denver, Colorado
UNDER THE FEDERAL DEPOSIT INSURANCE
CORPORATION
June 24, 1993
IMPROVEMENT
ACT OF
1991
By Federal Reserve Banks
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
Acquired
Thrift
BB&T Financial Corporation,
Wilson, North Carolina
Carolina Bank,
Wilmington, North
Carolina
BB&T Financial Corporation,
Wilson, North Carolina
Edenton Bank,
Edenton, North
Carolina
Britton & Koontz Capital
Corporation,
Natchez, Mississippi
Natchez First Federal
Savings Bank,
Natchez, Mississippi
Commerce Bancorp,
Cherry Hill, New Jersey
Anchor Savings Bank,
FSB,
Hewlett, New York
First Citizens BancShares, Inc.,
Raleigh, North Carolina
Pioneer Savings Bank,
Inc.,
Rocky Mount, North
Carolina
Benld Loan Association,
Benld, Illinois
First Staunton Bancshares, Inc.,
Staunton, Illinois
Surviving
Bank(s)
Branch Banking and
Trust Company,
Wilson, North
Carolina
Branch Banking and
Trust Company,
Wilson, North
Carolina
Britton & Koontz
First National
Bank,
Natchez,
Mississippi
Commerce Bank,
N.A.,
Cherry Hill,
New Jersey
First-Citizens Bank &
Trust Company,
Raleigh, North
Carolina
The First National
Bank in Staunton,
Staunton, Illinois
Approval
Date
June 11, 1993
June 11, 1993
June 10, 1993
June 9, 1993
June 1, 1993
June 18, 1993
812
Federal Reserve Bulletin • August 1993
FDICIA Orders—Continued
Bank Holding Company
Acquired
Thrift
First Union Corporation,
Charlotte, North Carolina
Meritor Savings, F.A.,
Winter Haven, Florida
First Union Corporation,
Charlotte, North Carolina
Meritor Savings, F.A.,
Winter Haven, Florida
First Union Corporation,
Charlotte, North Carolina
Meritor Savings, F.A.,
Winter Haven, Florida
First Union Corporation,
Charlotte, North Carolina
Meritor Savings, F.A.,
Winter Haven, Florida
Independent Bank Corporation,
Ionia, Michigan
Community First Bank,
FSB,
Lansing, Michigan
Cimarron Federal Savings
Association,
Muskogee, Oklahoma
Standard Federal Bank,
F.S.B.,
Troy, Michigan
Lake Bancshares Corporation,
Langley, Oklahoma
Shoreline Financial Corporation,
Benton Harbor, Michigan
Southern BancShares (N.C.),
Inc.,
Mount Olive, North Carolina
SouthTrust Corporation,
Birmingham, Alabama
SouthTrust of Florida, Inc.,
Jacksonville, Florida
Texas Bancshares, Inc.,
San Antonio, Texas
United Carolina Bancshares
Corporation,
Whiteville, North Carolina
Pioneer Savings Bank,
Inc.,
Rocky Mount, North
Carolina
Federal Trust Bank,
F.S.B.,
Winter Park, Florida
Alice Branch of First
Federal Savings Bank,
San Antonio, Texas
Home Federal Savings
Bank of Eastern North
Carolina,
Greenville, North
Carolina
Surviving
Bank(s)
Approval
Date
Dominion Bank,
N.A.,
Roanoke, Virginia
Dominion Bank of
Maryland, N.A.,
Rock ville,
Maryland
Dominion Bank of
Washington, N.A.,
Washington, D.C.
First Union National
Bank of Florida,
Jacksonville,
Florida
Independent Bank,
Ionia, Michigan
May 21, 1993
Bank of the Lakes,
Langley, Oklahoma
May 21, 1993
Citizens Trust and
Savings Bank,
South Haven,
Michigan
Inter-City Bank,
Benton Harbor,
Michigan
Southern Bank and
Trust Company,
Mount Olive, North
Carolina
SouthTrust Bank of
Jacksonville, N.A.,
Jacksonville,
Florida
First National Bank
of South Texas,
Rio Grande City,
Texas
United Carolina
Bank,
White ville, North
Carolina
May 24, 1993
May 21, 1993
May 21, 1993
May 21, 1993
June 22, 1993
June 3, 1993
June 8, 1993
May 25, 1993
June 10, 1993
Legal Developments
APPLICATIONS
APPROVED
UNDER BANK HOLDING
COMPANY
813
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 3
Applicant(s)
Bank(s)
Trans Financial Bancorp, Inc.,
Bowling Green, Kentucky
^^Date^
Trans Kentucky Bancorp,
Pikeville, Kentucky
June 4, 1993
Section 4
.
..
.
Nonbanking
Activity/Company
Midland Capital Company,
Oklahoma City, Oklahoma
Near Northwest Community
Corporation,
Oklahoma City, Oklahoma
ONB Investment Services, Inc.,
Evansville, Indiana
Old National Bancorp,
Evansville, Indiana
APPLICATIONS
APPROVED
UNDER BANK HOLDING
COMPANY
Effective
Date
June 11, 1993
June 23, 1993
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)
215 Holding Co.,
Minneapolis, Minnesota
Allendale Bancorp., Inc.,
Allendale, Illinois
AmSouth Bancorporation,
Birmingham, Alabama
A.N.B. Holding Company, Ltd.,
Terrell, Texas
Reserve
Bank
Bank(s)
Southeast
Bancorporation, Inc.,
Minneapolis, Minnesota
The First National Bank
of Allendale,
Allendale, Illinois
Mickler Corporation,
Clearwater, Florida
The American National
Bank of Terrell,
Terrell, Texas
Effective
Date
Minneapolis
June 21, 1993
St. Louis
June 16, 1993
Atlanta
June 2, 1993
Dallas
June 9, 1993
814
Federal Reserve Bulletin • August 1993
Section 3—Continued
Applicant(s)
The Banc Ed Corp.,
Edwardsville, Illinois
The Bank of New York
Company, Inc.,
New York, New York
BancWest Bancorp, Inc.,
Austin, Texas
Big Bend Bancshares Corp.,
Presidio, Texas
Rio Bancshares Corporation,
Wilmington, Delaware
Birthright, Inc.,
Wilmington, Delaware
Boatmen's Bancshares, Inc.,
St. Louis, Missouri
Centura Banks, Inc.,
Rocky Mount, North Carolina
Chico Bancorp, Inc.,
Chico, Texas
Citizens Bancshares of El Reno,
Inc.,
El Reno, Oklahoma
C.S.B. Bancshares, Inc.,
Somerville, Texas
The Donley County State Bank
Holding Company,
Clarendon, Texas
The Estes Park Bank Restated
Employees Stock Ownership
401(k) Plan and Retirement
Trust,
Estes Park, Colorado
Fairfield Bancshares, Inc.,
Fairfield, Illinois
First Bancorporation, Inc.,
Sparta, Wisconsin
First National Beatrice
Corporation Employee Stock
Ownership Plan,
Beatrice, Nebraska
First Trust Financial
Corporation,
Clinton, Kentucky
Reserve
Bank
Bank(s)
Effective
Date
St. Louis
May 26, 1993
New York
May 28, 1993
Dallas
June 9, 1993
Dallas
June 2, 1993
Atlanta
June 18, 1993
St. Louis
June 14, 1993
Richmond
June 4, 1993
Dallas
June 22, 1993
Kansas City
June 1, 1993
Dallas
May 27, 1993
Dallas
May 24, 1993
Kansas City
May 26, 1993
Fairfield National Bank,
Fairfield, Illinois
First Bank of Sparta,
Sparta, Wisconsin
First National Beatrice
Corporation,
Beatrice, Nebraska
St. Louis
June 3, 1993
Chicago
June 9, 1993
Kansas City
June 1, 1993
First National Bank of
Clinton,
Clinton, Kentucky
St. Louis
May 18, 1993
The Bank of
Edwardsville,
Edwardsville, Illinois
National Community
Banks, Inc.,
West Paterson, New
Jersey
Kyle State Bank,
Kyle, Texas
The Marfa National Bank,
Marfa, Texas
First Tuskegee Bank,
Tuskegee, Alabama
FCB Bancshares, Inc.,
Merriam, Kansas
Interim Bank,
Granite Falls, North
Carolina
The First State Bank of
Chico,
Chico, Texas
Citizens National Bank &
Trust Co. of El Reno,
El Reno, Oklahoma
Citizens State Bank,
Somerville, Texas
The Donley County State
Bank,
Clarendon, Texas
Estes Bank Corporation,
Estes Park, Colorado
Legal Developments
Section 3—Continued
Applicant(s)
First Virginia Banks, Inc.,
Falls Church, Virginia
F & M National Corporation,
Winchester, Virginia
FNS, Inc.,
Schuyler, Nebraska
Gulf Coast Bank Holding
Company, Inc.,
New Orleans, Louisiana
Hollandale Capital Corporation,
Hollandale, Mississippi
Liberty Bancorp, Inc.,
Oklahoma City, Oklahoma
MCB Financial Corporation,
San Rafael, California
M & F Bancshares, Inc.,
Weatherford, Texas
M & F Financial Corporation,
Wilmington, Delaware
Mountain Bancshares, Inc.,
Newport, Minnesota
NETEX Bancorporation,
Pittsburg, Texas
Oostburg Bancorp, Inc.,
Oostburg, Wisconsin
Orchard Valley Financial
Corporation,
Englewood, Colorado
Peoples Financial Corporation,
Colfax, Illinois
Pinnacle Bancorp, Inc.,
Central City, Nebraska
Reserve
Bank
Bank(s)
United Southern Bank of
Morristown,
Morristown, Tennessee
First National
Bankshares, Inc.,
Emporia, Virginia
Howells Investment
Company,
Howells, Nebraska
Gulf Coast Bank and
Trust Company,
New Orleans,
Louisiana
Bank of Hollandale,
Hollandale, Mississippi
Interstate Financial
Corporation,
Edmond, Oklahoma
Marin Community Bank,
N.A.,
San Rafael, California
Texas Bank,
Grapevine, Texas
Eagle Agency, Inc.,
Golden Valley,
Minnesota
First State Bank,
Pittsburg, Texas
Oostburg State Bank,
Oostburg, Wisconsin
MegaBank Financial
Corporation,
Englewood, Colorado
Peoples State Bank of
Colfax,
Colfax, Illinois
Centennial
Bancorporation, Inc.,
Thermopolis, Wyoming
Effective
Date
Richmond
June 24, 1993
Richmond
June 22, 1993
Kansas City
May 27, 1993
Atlanta
June 8, 1993
St. Louis
June 16, 1993
Kansas City
May 25, 1993
San Francisco
June 2, 1993
Dallas
June 11, 1993
Kansas City
June 15, 1993
Dallas
May 21, 1993
Chicago
June 23, 1993
Kansas City
June 8, 1993
Chicago
May 28, 1993
Kansas City
May 28, 1993
815
816
Federal Reserve Bulletin • August 1993
Section 3—Continued
Applicant(s)
Pinnacle Bancorp, Inc.,
Central City, Nebraska
Quad City Holdings, Inc.,
Bettendorf, Iowa
Republic Bancshares, Inc.,
Duluth, Minnesota
River Forest Bancorp, Inc.,
Chicago, Illinois
Southwest Bancshares, Inc.,
Jonesboro, Arkansas
Suburban Bancorp, Inc.,
Palatine, Illinois
Twin River Financial
Corporation,
Lewiston, Idaho
Bank(s)
Colorado National Bank
Grand Junction,
Grand Junction,
Colorado
Colorado National Bank
Glen wood,
Glenwood Springs,
Colorado
Quad City Bank and
Trust Company,
Bettendorf, Iowa
Republic Bank, Inc.,
Duluth, Minnesota
Belmont National Bank,
Chicago, Illinois
Cherry Valley
Bancshares, Inc.,
Wynne, Arkansas
Huntley Bancshares, Inc.,
Huntley, Illinois
Twin River National
Bank,
Lewiston, Idaho
Reserve
Bank
Effective
Date
Kansas City
June 2, 1993
Chicago
May 25, 1993
Minneapolis
June 11, 1993
Chicago
May 28, 1993
St. Louis
June 16, 1993
Chicago
May 28, 1993
San Francisco
May 24, 1993
Section 4
Applicant(s)
Algemene Maatschappij voor
Nijverheidskrediet N.V.,
Antwerp, Belgium
Kredietbank, N.V.,
Brussels, Belgium
Britton & Koontz Capital
Corporation,
Natchez, Mississippi
The Long-Term Credit Bank of
Japan, Ltd.,
Tokyo,Japan
Nonbanking
Activity/Company
Kredietbank Global
Management, L.P.,
Brussels, Belgium
Darien Asset
Management, Inc.,
Stamford, Connecticut
Natchez First Federal
Savings Bank,
Natchez, Mississippi
Franchise Mortgage
Acceptance
Corporation,
La Habra, California
Franchise Mortgage
Acceptance
Corporation, L.P.,
La Habra, California
Reserve
Bank
Effective
Date
New York
May 24, 1993
Atlanta
June 10, 1993
New York
June 21, 1993
Legal Developments
817
Section 4—Continued
Applicant(s)
Norwest Corporation,
Minneapolis, Minnesota
Washington Investment
Company,
Otis, Colorado
West Coast Bancorp, Inc.,
Cape Coral, Florida
Nonbanking
Activity/Company
Citicorp Investment
Services,
Long Island City, New
York
First National Bank of
Akron,
Akron, Colorado
First National Bank of
Yuma,
Yuma, Colorado
Wray State
Bancorporation,
Wray, Colorado
to engage de novo in
making, acquiring, or
servicing loans or other
extensions of credit
Reserve
Bank
Effective
Date
Minneapolis
June 18, 1993
Kansas City
June 14, 1993
Atlanta
June 17, 1993
Sections 3 and 4
Applicant(s)
Farmers and Merchants
State Bank,
Neola, Iowa
Hall Insurance Agency,
Neola, Iowa
FMSB Bancorp,
Neola, Iowa
APPLICATIONS
Nonbanking
Activity/Company
APPROVED
UNDER BANK MERGER
Reserve
Bank
Chicago
Effective
Date
June 16, 1993
ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Applicant(s)
Bank of Montana,
Great Falls, Montana
Meridian Bank,
Reading, Pennsylvania
Bank(s)
Montana Bank,
Billings, Montana
The First National Bank
of Pike County,
Milford, Pennsylvania
Reserve
Bank
Effective
Date
Minneapolis
June 18, 1993
Philadelphia
May 25, 1993
818
Federal Reserve Bulletin • August 1993
PENDING CASES INVOLVING
THE BOARD OF
GOVERNORS
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.
Ezell v. Federal Reserve Board, No. 93-0361
(D. D.C., filed February 19, 1993). Action seeking
damages for personal injuries arising from motor
vehicle collision.
Amann v. Prudential Home Mortgage Co., et al., No.
93-10320 WD (D. Massachusetts, filed February 12,
1993). Action for fraud and breach of contract
arising out of a home mortgage. On April 17, 1993,
the Board filed a motion to dismiss.
Adams v. Greenspan, No. 93-0167 (D. D.C., filed
January 27, 1993). Action by former employee under
the Civil Rights Act of 1964 and the Rehabilitation
Act of 1973 concerning termination of employment.
Sisti v. Board of Governors, No. 93-0033 (D. D.C.,
filed January 6, 1993). Challenge to Board staff
interpretation with respect to margin accounts. The
Board's motion to dismiss was granted on May 13,
1993. On June 3, 1993, the petitioner filed a notice of
appeal.
U.S. Check v. Board of Governors, No. 92-2892
(D. D.C., filed December 30, 1992). Challenge to
partial denial of request for information under the
Freedom of Information Act.
CBC, Inc. v. Board of Governors, No. 92-9572 (10th
Cir., filed December 2, 1992). Petition for review of
civil money penalty assessment against a bank holding company and three of its officers and directors
for failure to comply with reporting requirements.
The Board's brief was filed on March 19, 1993.
DLG Financial Corporation v. Board of Governors,
No. 392 Civ. 2086-G (N.D. Texas, filed October 9,
1992). Action to enjoin the Board and the Federal
Reserve Bank of Dallas from taking certain enforcement actions, and seeking money damages on a
variety of tort and contract theories. On October 9,
1992, the court denied plaintiffs' motion for a temporary restraining order. On March 30, 1993, the
court granted the Board's motion to dismiss as to it,
and also dismissed certain claims against the Reserve Bank. On April 29, the plaintiffs filed an
amended complaint. The Board's motion to dismiss
the amended complaint was filed on May 17.
Zemel v. Board of Governors, No. 92-1056 (D. D.C.,
filed May 4, 1992). Age Discrimination in Employment Act case. The parties' cross-motions for summary judgment are pending.
State of Idaho, Department of Finance v. Board of
Governors, No. 92-70107 (9th Cir., filed Febru
ary 24, 1992). Petition for review of Board order
returning without action a bank holding company
application to relocate its subsidiary bank from
Washington to Idaho. On June 4, 1993, the Court of
Appeals denied the petition for review.
In re Subpoena Served on the Board of Governors,
Nos. 91-5427, 91-5428 (D.C. Cir., filed December
27, 1991). Appeal of order of district court, dated
December 3, 1991, requiring the Board and the
Office of the Comptroller of the Currency to produce
confidential examination material to a private litigant. On June 26, 1992, the court of appeals affirmed
the district court order in part, but held that the bank
examination privilege was not waived by the agencies' provision of examination materials to the examined institution, and remanded for further consideration of the privilege issue. On August 6,1992, the
district court ordered the matter held in abeyance
pending settlement of the underlying action.
Board of Governors v. Kemal Shoaib, No. CV 91-5152
(C.D. California, filed September 24, 1991). Action
to freeze assets of individual pending administrative
adjudication of civil money penalty assessment by
the Board. On October 15, 1991, the court issued a
preliminary injunction restraining the transfer or
disposition of the individual's assets.
Board of Governors v. Ghaith R. Pharaon, No. 91CIV-6250 (S.D. New York, filed September 17,
1991). Action to freeze assets of individual pending
administrative adjudication of civil money penalty
assessment by the Board. On September 17, 1991,
the court issued an order temporarily restraining the
transfer or disposition of the individual's assets.
FINAL ENFORCEMENT DECISION ISSUED BY THE
BOARD OF GOVERNORS
On Certification of the Department of the
Treasury—Office of the Comptroller of the
Currency
In the Matter of a Notice to Prohibit Further Participation Against
John S. Knoerzer, Former Chief Executive
Officer and Director
Texas National Bank-Dallas,
Dallas, Texas (Failed)
OCC No. AA-EC-91-166
Legal Developments
Final Decision
This is an administrative proceeding pursuant to the
Federal Deposit Insurance Act ("FDI Act") in which
the Office of Comptroller of the Currency of the United
States of America ("OCC") seeks to prohibit the Respondent, John S. Knoerzer, from further participation
in the affairs of any financial institution as a result of his
conduct as chief executive officer and director of Texas
National Bank-Dallas, Dallas, Texas (Failed) (the
"Bank"). The proceeding comes to the Board of Governors of the Federal Reserve System (the "Board") in
the form of a Recommended Decision by Administrative Law Judge ("ALJ") Walter J. Alprin recommending that the Board issue an Order of Prohibition against
Knoerzer by default pursuant to the provisions of
12 U.S.C. § 1818(e) and 12 C.F.R. 19.19(c).
Upon review of the administrative record, the Board
issues this Final Decision adopting the ALJ's Recommended Decision and orders that the attached Order of
Prohibition issue against Knoerzer.
I. Statement of the Case
A. Procedural History
On September 10, 1991, the OCC issued a Notice of
Intention to Prohibit Further Participation (the "Notice") against Knoerzer pursuant to the provisions of
12 U.S.C. § 1818(e)(1), based on allegations that Knoerzer had engaged in misconduct during his tenure as
chief executive officer and director of the Bank, which
had failed on December 15, 1988. The OCC charged
that Knoerzer caused, authorized, or ratified loans by
the Bank to interrelated individuals and business entities in violation of the Bank's lending limit that resulted in a loss to the Bank of over $1.6 million. The
OCC alleged that this conduct violated laws and regulations applicable to national banks and constituted
unsafe and unsound banking practices and breaches of
Knoerzer's fiduciary duty. The OCC also alleged that
the conduct caused substantial financial loss or other
damage to the Bank, seriously prejudiced the interests
of the Bank's depositors, and evidenced Knoerzer's
personal dishonesty or a willful or continuing disregard for the Bank's safety or soundness. The Notice
required that Knoerzer file an answer to the charges
within 20 days of service of the Notice.
After a delay resulting from difficulty in locating
Knoerzer, the OCC served the Notice by hand upon
Knoerzer on June 23, 1992.1 Under the Uniform Rules
1. The record contains an affidavit from a private process server
attesting to hand delivery of the Notice to Knoerzer on July 23, 1992.
819
of Practice and Procedure ("Uniform Rules")2 applicable to this proceeding, Knoerzer's answer was due
to be filed on July 13, 1992, 20 days following the
June 23, 1992 service upon Knoerzer. 12 C.F.R.
19.12(c)(1). The record contains a certificate from
OCC Docket Clerk Lisa Chase, dated August 24, 1992,
certifying that the OCC had received no answer to the
Notice.
On August 28, 1992, OCC Enforcement Counsel
filed with the ALJ a motion for entry of an order of
default pursuant to the Uniform Rules, which provide
that a failure to file an answer constitutes a waiver of
a respondent's right to appear and contest the allegations in the notice. 12 C.F.R. 19.19(c). The motion
indicated that Knoerzer had sent a letter to the OCC
indicating his willingness to consent to an Order of
Prohibition and that he had not filed an answer to the
Notice of Prohibition. Knoerzer did not file any opposition to the motion for default.
On September 21, 1992, the ALJ granted the OCC's
motion for default, finding that the Notice had been
duly served upon Knoerzer, that Knoerzer had never
filed an answer, and that no good cause had been
shown for Knoerzer's failure to file a timely answer.
Accordingly, ALJ Alprin issued a Recommended Decision recommending that the Board issue an Order of
Prohibition against Knoerzer pursuant to the Uniform
Rules provision for default upon failure to file an
answer.
The Recommended Decision on Default was referred to the Board for final decision on March 10,
1993. Knoerzer has filed no exceptions to the Recommended Decision. On March 31, 1993, the Secretary to
the Board notified the interested persons of record that
the case had been submitted to the Board for final
decision. A signed certified mail receipt returned to the
Board indicates that Knoerzer received the notification on April 6, 1993.
B. Statutory Framework
The FDI Act sets forth the basis upon which a federal
banking agency may issue against a bank official an
order of removal from office or prohibition from further participation in banking. In order to issue such an
order pursuant to section 1818(e)(1), the Board must
make each of three findings:
2. The Uniform Rules, adopted concurrently by each of the financial
institution regulatory agencies, including the Board and the OCC,
constitute a materially identical set of procedural rules that control
most aspects of those agencies' enforcement proceedings. Compare
12 C.F.R. Part 19, Subpart A (OCC) with 12 C.F.R. Part 263, Subpart
A (Board).
820
Federal Reserve Bulletin • August 1993
(1) There must be a specified type of misconduct
— violation of law, unsound practice, or breach of
fiduciary duty;
(2) The misconduct must have a prescribed effect
— financial gain to the respondent or financial
harm or other damage to the institution; and
(3) The misconduct must involve culpability of a
certain degree — personal dishonesty or willful or
continuing disregard for the safety or soundness
of the institution. 12 U.S.C. § 1818(e)(1). In prohibition cases brought by the OCC with respect to
a party affiliated with a national bank, the findings
and conclusions of the ALJ are certified to the
Board to determine whether any order shall issue.
12 U.S.C. 1818(e)(4).
The Uniform Rules provide that, following the issuance of a notice of intention to prohibit an institutionaffiliated party, a Respondent's failure to file an answer within the time provided constitutes a waiver of
his or her right to appear and to contest the allegations
in the notice. 12 C.F.R. 19.19(c). If no timely answer
is filed, Enforcement Counsel is authorized to file a
motion for entry of an order of default. Id. Upon a
finding that no good cause has been shown for the
failure to file a timely answer, the ALJ is directed to
file a recommended decision containing the findings
and relief sought by the agency. Id.
II. Discussion
In the circumstances of this case, it is clear that the
OCC has established the basis for a default order of
prohibition under the terms of the Uniform Rules. The
fact that Knoerzer was duly served with notice of the
proceeding and of his obligation to answer is supported by the notarized affidavit of the process server.
Knoerzer has had repeated opportunities to respond to
the charges and there is no basis for any inference that
Knoerzer's default is the result of any mischance or
inadvertence. The ALJ acted reasonably and in accordance with the Uniform Rules in finding that no good
cause existed for relieving Knoerzer from the consequences of his failure to submit an answer to the
Notice.
Conclusion
For these reasons, the Board orders that the attached
Order of Prohibition issue.
Order of Removal and Prohibition
WHEREAS, pursuant to section 8(e) of the Federal
Deposit Insurance Act, as amended, (the "Act")
(12 U.S.C. § 1818(e)), the Board of Governors of
the Federal Reserve System ("the Board") is of the
opinion, for the reasons set forth in the accompanying Final Decision, that a final Order of Removal and
Prohibition should issue against JOHN S. KNOERZER,
NOW, THEREFORE, IT IS HEREBY ORDERED, pursuant to sections 8(b)(3), 8(e), and 80) of
the Act, (12 U.S.C. § 1818(b)(3), 1818(e) and 18180)),
that:
1. JOHN S. KNOERZER is removed from all
offices he holds with any insured depository institution or bank holding company;
2. In the absence of prior written approval by the
Board, and by any other Federal financial institution regulatory agency where necessary pursuant
to section 8(e)(7)(B) of the Act (12 U.S.C.
§ 1818(e)(7)(B)), JOHN S. KNOERZER is hereby
prohibited:
(a) From participating in the conduct of the
affairs of any bank holding company, any insured depository institution or any other institution specified in subsection 8(e)(7)(A) of the
Act (12 U.S.C. § 1818(e)(7)(A));
(b) From soliciting, procuring, transferring, attempting to transfer, voting or attempting to
vote any proxy, consent, or authorization with
respect to any voting rights in any institution
described in subsection 8(e)(7)(A) of the Act (12
U.S.C. § 1818(e)(7)(A));
(c) From violating any voting agreement previously approved by the appropriate Federal
banking agency; or
(d) From voting for a director, or from serving
or acting as an institution-affiliated party as
defined in section 3(u) of the Act, (12 U.S.C.
§ 1813(u)), such as an officer, director, or employee.
3. This Order, and each provision hereof, is and
shall remain fully effective and enforceable until
expressly stayed, modified, terminated or suspended in writing by the Board.
This Order shall become effective upon the expiration of thirty days after service is made.
By order of the Board of Governors, this 20th day of
April, 1993.
Board of Governors of the
Federal Reserve System
WILLIAM W . WILES
Secretary of the Board
Legal Developments
On Certification of the Department of the
Treasury—Office of the Comptroller of the
Currency
In the Matter of a Notice to Prohibit Further
Participation Against
Michael A. O'Connell, Former President and Director, Metropolitan National Bank, N.A.
McAllen, Texas
Respondent.
OCC No. AA-EC-92-22
Final Decision
821
Accordingly, the Board hereby makes its Final
Decision, and adopts the ALJ's Recommended Decision, Recommended Findings of Fact and Recommended Conclusions of Law together with the reasoning and citations contained therein, except as
specifically supplemented or modified herein.2 The
Board therefore orders that the attached Order of
Prohibition issue against Respondent prohibiting him
from future participation in the affairs of any federallysupervised financial institution without the approval of
the appropriate supervisory agency.
I. Statement of the Case
A. Standards for Prohibition Order
This is an administrative proceeding pursuant to section
8(e) of the Federal Deposit Insurance Act ("FDI Act"),
12 U.S.C. § 1818(e), in which the Office of the Comptroller of the Currency of the United States of America
("OCC") seeks to prohibit Michael A. O'Connell from
further participation in the affairs of any federallysupervised financial institution as a result of his conduct
during his former affiliation as president and director of
Metropolitan National Bank, N.A., McAllen, Texas
(the "Bank"). As required by statute, the OCC has
referred the action to the Board of Governors of the
Federal Reserve System ("Board") for final decision.
The proceeding comes before the Board in the form
of a Recommended Decision by Administrative Law
Judge ("ALJ") Walter J. Alprin, issued following an
administrative hearing held on September 29-30, 1992,
in Corpus Christi, Texas, and the filing of post-hearing
briefs by the parties. In the Recommended Decision,
the ALJ found that as President of the Bank, O'Connell had, without authority, pledged a security belonging to a Bank customer as collateral for a margin
account through which O'Connell engaged in unauthorized active trading of United States Treasury bonds
that resulted in a $219,000 loss to the Bank.
O'Connell has submitted exceptions to the Recommended Decision that are confined exclusively to
objections to evidentiary rulings made by the ALJ
during the course of the hearing. O'Connell requests
that the Board decline the ALJ's recommendations
and order a new hearing. Based on a review of the
record and the arguments raised by O'Connell, the
Board rejects these exceptions, finding in each case
that the ALJ acted reasonably within the scope of his
authority over the conduct of the hearing.1
At all times relevant to this proceeding, the Bank was
a national banking association, chartered and examined by the OCC. The Bank was declared insolvent on
October 19, 1990.
1. Without stating any reasons, O'Connell has requested the opportunity to present oral argument before the Board with respect to his
exceptions. Because the legal and factual issues have been fully and
adequately explained in the written submissions, the Board denies the
request for oral argument. See 12 C.F.R. 263.40.
2. The Board also adopts the technical correction submitted by the
OCC in the form of an exception, as discussed below.
Under the FDI Act, the ALJ is responsible for conducting an administrative hearing on a notice of intention to prohibit participation. 12 U.S.C. § 18(e)(4).
Following the hearing, the ALJ issues a recommended
decision that is referred to the Board. The parties may
then file with the Board exceptions to the ALJ's
recommendations. The Board makes the final findings
of fact, conclusions of law, and determination whether
to issue an order of prohibition. Id. -, 12 C.F.R. 263.40.
The FDI Act sets forth the substantive basis upon
which a federal banking agency may issue against a
bank official an order of prohibition from further
participation in banking. In order to issue such an
order pursuant to section 1818(e)(1), the Board must
make each of three findings:
(1) There must be a specified type of misconduct
— violation of law, unsafe or unsound practice, or
breach of fiduciary duty;
(2) The misconduct must have a prescribed effect
— financial gain to the respondent or substantial
financial harm or other damage to the institution;
and
(3) The misconduct must involve culpability of a
certain degree — personal dishonesty or willful or
continuing disregard for the safety or soundness
of the institution.
B. Relevant Individuals and Business Entities
822
Federal Reserve Bulletin • August 1993
At all times relevant to this proceeding, Respondent
O'Connell was President and a director of the Bank,
and therefore an "institution-affiliated party" under
the terms of the FDI Act subject to the OCC's supervisory authority. O'Connell resigned as president and
director of the Bank on October 9, 1990.
Ernesto Ayala was the Finance Director of the City
of Pharr, Texas, and represented Pharr in all respects
in the events relevant to this case. Wayne and Joseph
Moran were broker/dealers employed in Austin,
Texas, by Spelman & Co., Inc., a brokerage firm
headquartered in San Diego, California.
II. Findings and Conclusions
Upon review of the record of this proceeding, the
Board hereby adopts such of the ALJ's recommended
decision, findings, and conclusions as are not specifically modified herein as the findings and conclusions of
the Board, and incorporates by reference the ALJ's
reasoning and citations to the record.
A. Findings
On November 14, 1989, the Bank entered into a
Depository contract with the city of Pharr, Texas,
whereby the Bank would provide depository and funds
management services to Pharr. In April 1990, O'Connell caused a meeting to be held at the Bank including
O'Connell, Ernesto Ayala (Pharr's Finance Director)
and Wayne and Joseph Moran, the Spelman & Co.
stock brokers from Austin, Texas.3 O'Connell called
the meeting to discuss the extension of Pharr's bank
account into a "margin account" with Spelman, which
would increase the capital available for trading by
borrowing from the broker amounts secured by
Pharr's collateral. No decision as to the margin account was reached at the meeting.
The ALJ found that, after the meeting, O'Connell
contacted Wayne Moran, stated that the Bank was
interested in opening a margin trading account, represented that the Bank was Pharr's agent, and represented that O'Connell had the authority to engage in
actively trading in the market for United States thirtyyear bonds on a day trade basis. O'Connell further
represented that the Bank would guarantee Pharr a
9 percent return from the trading program, with the
Bank taking all profits over 9 percent and also assuming all the trading risks.
The margin trading account styled "Metropolitan
National Bank, Agent for Pharr", was opened by
3. The Board adopts the OCC's exception noting that, contrary to
the Recommended Decision, Bank outside director Dr. Casso was not
present at this meeting.
O'Connell on April 30, 1990.4 On that day, the Bank
wire-transferred $400,000 from Pharr's account to the
clearing agent, which was used to purchase for Pharr a
United States Treasury Note with a yield of 8.7
percent to maturity of $435,000 on May 15, 1991. The
purchase price of the Note was $398,156. The Note
and the excess funds of $1,844 remained in the margin
account. The ALJ found that O'Connell directed that
Pharr's note be used as the collateral required by the
terms of the margin account. In order to open the
account, O'Connell executed a Corporate Authorization to Trade form specifying that the Bank's board of
directors had conferred upon him specific authorization to conduct a number of activities with respect to
the account. O'Connell also executed a Customer/
Margin Agreement agreeing to maintain collateral in
the margin trading account against which the account
could be charged to satisfy any monthly debit/loss
balance. The Agreement also provided that BCC, the
clearing agent, would hold a lien on certain Bank
property for the purpose of discharging all indebtedness on the margin trading account and authorized
BCC to sell all securities or property in the margin
account without prior notice, and that O'Connell
and/or the Bank was liable for the payment of any debt
balance in the margin trading account.
The ALJ found that O'Connell was not authorized
by the Bank's board of directors or by the Pharr
Depository Contract to open the margin account and
to engage in such trading. The ALJ found that the
Depository Contract between the Bank and Pharr did
not grant the Bank or O'Connell the authority to
participate in a trading program on behalf of or as
agent for Pharr. Furthermore, the trading in the margin
account exceeded the scope of the board of directors'
authorization for O'Connell to engage in general trading activities. The ALJ found that the high-risk, speculative margin account was a departure from the
Bank's normal practice of investing only in long-term
high-quality securities and that it was unsafe and
unsound for a bank of approximately $400,000 in
primary capital to maintain a trading account. The
Bank's records, including its quarterly Call Reports,
do not indicate the existence of any trading activity on
behalf of the Bank.
When O'Connell failed to submit documentation
supporting his representation that he was an agent for
Pharr and that he was authorized by the Bank to open
4. Three numbered and associated accounts were opened, one of
which, Number 23D-11052, served as an interest-bearing account into
which profits (or losses) from margin account 23D-11075 would be
transferred on a daily basis. The accounts were established with
Broadcort Capital Corporation ("BCC") a wholly owned subsidiary
of Merrill Lynch & Co. that provided security clearing services for
Spelman.
Legal Developments
the account, Spelman became concerned as to whether
Pharr was aware of O'Connell's trading activities. Spelman's compliance officer directed that documentation
be obtained from O'Connell to clarify the ownership of
the account. On June 18, 1990, Wayne Moran met with
O'Connell to have O'Connell re-execute the Corporate
Authorization to Trade form and the Customer/Margin
Agreement. O'Connell represented to Moran that he
had been authorized by the board of directors to
execute the forms by the unanimous vote of the Bank's
board of directors at a meeting on April 17, 1990. The
ALJ found that the corporate resolution passed by the
Board of Directors on April 17, 1990, did not authorize
O'Connell to establish a trading account, but only
authorized O'Connell to transact for funds on accounts
held at other banks.
Pursuant to Spelman's direction, the Customer/
Margin agreement was modified to reflect a change in
name from "Metropolitan National Bank, Agent for
the City of Pharr" to "Metropolitan National Bank
(2)". The ALJ found that O'Connell later admitted to
the Bank's board of directors that the reason for the
change of name on the margin account was to avoid
having to disclose the trading activities to Pharr. The
re-executed Customer/Margin Agreement was backdated to show a date of April 27, 1990.
From on or about May 11, 1990 until approximately
September 19, 1990 over 200 day trades involving the
buying and selling of U.S. Treasury Bonds were made
in the trading accounts using the margin supported by
the Pharr note. The ALJ found that O'Connell specifically authorized day trading on margin by giving orders
to Wayne Moran, and that all trades were made with
O'Connell's express authority and at his instructions.
Respondent agreed to the transfer of all profits or losses
to an associated interest-bearing account each day.
The ALJ found that O'Connell was notified on a
regular basis concerning the losses in the margin trading
account. On May 25, 1990, O'Connell had a conversation with Wayne Moran regarding losses in the margin
trading account of approximately $35,469. O'Connell
wanted to continue trading. On May 31, 1990, O'Connell reasserted to Wayne Moran that he was not overly
concerned with the loss in the trading account. On June
6, 1990, Wayne Moran notified O'Connell that there
was a loss in the margin trading account of $76,438.
O'Connell wanted to continue to trade to recoup the
loss in the account, indicating that he was negotiating
with potential purchasers for the Bank. On July 24,
1990, O'Connell stated that he was becoming more
concerned about the loss in the account, that he thought
he could still recover the loss, and that he intended to
keep trading until he recovered the loss.
Pursuant to O'Connell's instruction, the Note was
sold for $408,694 on August 1, 1990 to cover losses in
823
the margin trading account. The proceeds from the
sale of the Note were used to offset the loss in the
margin account and the remainder of the proceeds
were transferred to the interest-bearing account. On
August 30, 1990, O'Connell stated that he had to
recover the entire loss in the trading accounts before
the new owners assumed control of the Bank. The
total losses associated with the trading accounts were
about $219,109.
On September 21, 1990, O'Connell disclosed to the
Bank's board of directors that he had traded in the
bond market and had pledged Pharr's note as collateral. The ALJ found that prior to O'Connell's disclosure, the board of directors had no knowledge of the
trading activities and that O'Connell admitted his
activities because increasing losses in the trading
account had reached the point where there was no
hope of recouping the losses. On September 24, 1990,
the Bank's board of directors suspended O'Connell,
notified Spelman to cease all future trading activities,
and notified the OCC. The Bank compensated Pharr
for the trading loss, paying Pharr $435,000, the value
of the Note at maturity.
As a result of the loss attributable to O'Connell's
trading activities, potential buyers of the Bank chose
not to infuse the Bank with $1 million in capital, and
the Bank was not sold. The ALJ found that the
$219,000 in losses caused the Bank's subsequent insolvency.
III. Conclusions
The ALJ reasonably rejected as irrelevant O'Connell's
arguments that brokers Wayne and Joe Moran were
not credible, and that the brokers had overcharged
O'Connell on the trades. The ALJ noted that O'Connell had conceded that, with knowledge of increasing
losses, he had continued to trade in the margin account
for months without authority, even after the Pharr
note had been sold to satisfy losses. The ALJ also
noted that O'Connell did not testify, and did not deny
any of the relevant testimony. The ALJ therefore
reasonably found that the OCC had supported its
charges by a preponderance of the relevant credible
evidence.
A. Misconduct
Upon these facts, The ALJ found that O'Connell's
actions constituted both unsafe and unsound practices
and breaches of O'Connell's fiduciary duty. With
neither authority nor express permission, O'Connell
caused the Note owned by Pharr, a Bank customer, to
be pledged as collateral for the margin trading account.
O'Connell also executed all the forms necessary to
824
Federal Reserve Bulletin • August 1993
open a margin trading account and actively engaged in
an unauthorized scheme of trading which involved
more than 200 trades of 30-year United States Treasury
bonds. O'Connell initiated, controlled and directed
each trade, each of which was evidenced by both a
confirmation slip and monthly account statement which
were delivered to O'Connell at the Bank. The ALJ
found that O'Connell repeatedly misrepresented his
authority to the Spelman brokers, misleading them to
believe that he was authorized to act as agent for Pharr
and to trade on behalf of the Bank. O'Connell also
directed the sale of the note to satisfy the outstanding
amount of the loss in the margin trading account. The
ALJ reasonably found this misconduct to satisfy the
applicable standards for an unsafe or unsound banking
practice,5 and for breach of fiduciary duty.
conclusion supported by O'Connell's knowledge that
Pharr did not wish to authorize active trading or
trading on margin and that he knew of the Bank's
delicate condition and of the impending sale of the
Bank. Furthermore, the ALJ noted that O'Connell
admitted to the board of directors that his reason for
changing the name on the account was to avoid
disclosing his unauthorized trading to Pharr.
The ALJ found that, for the same reasons that the
conduct evidenced personal dishonesty, it also satisfied
the remaining culpability standards of willful and continuing disregard for safety or soundness in that O'Connell's conduct was willful and in that he continued to
engage in the conduct over a period of several months.
B. Effects
The only exceptions filed by O'Connell relate entirely
to the ALJ's evidentiary rulings. Since O'Connell did
not testify, and called only one person as an adverse
witness, he relied almost entirely upon cross-examination. O'Connell objects that the ALJ was unduly restrictive in the scope of the questioning permitted to
O'Connell's counsel. He lists 11 instances where he
submits that the ALJ erred, and requests a new hearing.
The Administrative Procedure Act ("APA") that
generally governs formal agency adjudications specifies
that presiding officials may "rule on offers of proof and
receive relevant evidence", as well as "regulate the
course of the hearing." 5 U.S.C. § 556(c)(3), (5). The
APA also specifies that "the agency as a matter of
policy shall provide for the exclusion of irrelevant,
immaterial or unduly repetitious evidence." 5 U.S.C.
§ 556(d).
This statutory authority is mirrored in the OCC's
Rules of Practice and Procedure applicable to adjudicatory proceedings required to be conducted on the
record. The ALJ is generally vested with "all powers
necessary to conduct a proceeding in a fair and impartial manner and to avoid unnecessary delay."
12 C.F.R. 19.5(a). More specifically, the ALJ is vested
with the power "to consider and rule upon all procedural and other motions [other than granting a motion
to dismiss] appropriate in an adjudicatory proceeding.
12 C.F.R. 19.5(b)(7). The evidentiary standards permit
the admission of all evidence that is relevant, material,
reliable, and not unduly repetitive. 12 C.F.R.
19.36(a)(1),(c).
O'Connell first complains that his counsel was not
permitted to elicit character and reputation evidence
concerning O'Connell during his cross-examination of
a Bank director. A review of the record demonstrates
that the ALJ acted reasonably and within his authority
in permitting limited questioning as to O'Connell's
reputation as to the culpability elements at issue, but
The ALJ also found that O'Connell's misconduct
satisfied the Effects tier of elements necessary for a
prohibition in that the Bank lost over $219,000 as a
result of the trading losses incurred by O'Connell and
reimbursed to Pharr by the Bank. Furthermore, the
ALJ found that the losses caused the Bank to lose a
potential investment of $1 million in capital that investors had proposed to infuse into the Bank. Accordingly, O'Connell's misconduct was a contributing factor to the insolvency of the Bank.6
C. Culpability
The ALJ also reasonably found that O'Connell's misconduct satisfied the Culpability tier of elements for a
prohibition order in that it evidenced personal dishonesty as well as a willful and continuing disregard for
the Bank's safety and soundness.
The ALJ found that O'Connell's conduct in conducting active trading using the security of a bank
customer without obtaining the authority of either the
bank customer or the Bank, together with O'Connell's
misrepresentations of his authority to the brokers
constituted personal dishonesty. The ALJ found that
5. An "unsafe or unsound banking practice" has been defined as a
practice "deemed contrary to accepted standards of banking operation which might result in abnormal risk or loss to a banking institution
or shareholder." First Nat'l Bank of Eden v. Comptroller of the
Currency, 568 F.2d 610 (8th Cir. 1978).
6. The ALJ also found that O'Connell received a financial gain from
his misconduct in that he never reimbursed the Bank for the $219,000
in trading losses the Bank had restored to Pharr. The ALJ noted that
there is no indication that O'Connell would have claimed any profits
that might have resulted from the trading as personal income. The
Board declines to reach the question of O'Connell's financial gain in
light of the conclusion that the alternative effects element of loss to the
Bank has been satisfied.
D. O'Connell's Exceptions
Legal Developments
825
in restricting the scope of questioning as to general
questions of character as irrelevant.7
The bulk of O'Connell's exceptions relate to instances where the ALJ restricted the scope of crossexamination by O'Connell's counsel to matters elicited on direct examination. The ALJ generally
explained each such ruling as a relevance determination. In a number of instances, O'Connell joins these
exceptions with objections to the ALJ's rulings forbidding O'Connell's counsel from questioning witnesses
as to documents that did not appear on O'Connell's list
of proposed exhibits.
The OCC's Rules of Practice and Procedure do not
directly address the scope of cross-examination. The
Rules provide generally that "Hearings shall be conducted so as to provide a fair and expeditious presentation of the relevant disputed issues. Each party has
the right to present its case or defense by oral and
documentary evidence and to conduct such crossexamination as may be required for full disclosure of
the facts." 12 C.F.R. 19.35; see 5 U.S.C. § 556(d).
Accordingly, the right to conduct cross-examination is
generally qualified by the limitation of testimony to the
relevant disputed issues, as determined by the ALJ.8
A party seeking cross-examination in an administrative hearing bears the burden of showing that crossexamination is in fact necessary, a decision committed
to the discretion of the presiding officer. Seacoast
Morans was simply beside the point in light of the
ample documentary evidence establishing O'Connell's
knowledge of the margin trading accounts and his own
statement to the Bank's board of directors. Similarly,
the ALJ reasonably restricted as immaterial questioning seeking to establish O'Connell's theory that he had
no legal liability as a result of the Bank's decision to
reimburse Pharr as a result of the losses for which he
was responsible.
The same relevance issues prevent O'Connell from
demonstrating any prejudice resulting from the ALJ's
restriction on the use of documents not identified on
O'Connell's pre-hearing exhibit list. Here, the ALJ
acted in accord with the authority provided by Rule of
Practice and Procedure 19.32(b), which specifies that
"No witness may testify and no exhibits may be
introduced at the hearing if such witness or exhibit is
not listed in the prehearing submissions . . . , except
for good cause shown." 12 C.F.R. 19.32(b). The ALJ
did not apply the rule inflexibly, finding in at least one
instance that such good cause had been shown where
a document would not "expand the scope" of the
proceeding. Transcript 386-87.
Accordingly, O'Connell has not demonstrated that
he has suffered prejudice from the ALJ's evidentiary
rulings rendering the proceeding unfair, and the Board
denies O'Connell's exceptions and request for a new
hearing.
Anti-Pollution League v. Costle, 572 F.2d 872, 880
n.16 (1st Cir.) cert, denied, 439 U.S. 824 (1978). A
Conclusion
partial or complete rehearing on the basis of improperly excluded evidence will generally be provided only
where the exclusion is so prejudicial as to result in an
unfair hearing. See Jacob Stein, Glenn Mitchell and
Basil Mezines, Administrative Law (1993) § 30.03.
The Board's review of each instance where the ALJ
restricted the scope of cross-examination demonstrates that in each case the ALJ made reasonable
relevance determinations after permitting O'Connell's
counsel to explain what he hoped to elicit from a line
of questioning. The ALJ reasonably concluded that
O'Connell's attempt to establish wrongdoing by the
7. O'Connell's reliance on Federal Rule of Evidence 608 in support
of this exception is inapposite. Rule 608 does not address reputation
evidence going to the merits of a proceeding, but deals narrowly with
the submission of opinion or reputation evidence as to the character
for truthfulness of a witness only when that witness's credibility is at
issue. Here, O'Connell was not a witness in the hearing, and the
evidence that O'Connell's counsel sought to elicit dealt not with his
character for truthfulness as a witness, but his character as a banker.
8. While the Federal Rules of Evidence are not applicable to these
proceedings, the conclusion would be the same if they did apply. Rule
611(b) specifies that "Cross-examination should be limited to the
subject matter of the direct examination and matters affecting the
credibility of the witness. The Court may, in the exercise of discretion,
permit inquiry into additional matters as if on direct examination."
Federal Rule of Evidence 611(b).
For the foregoing reasons, the Board orders that the
attached Order issue.
Order of Prohibition
WHEREAS, pursuant to section 8(e) of the Federal
Deposit Insurance Act, as amended,
(the
"Act")(12 U.S.C. 1818(e)), the Board of Governors of
the Federal Reserve System ("the Board") is of the
opinion, for the reasons set forth in the accompanying
Final Decision, that a final Order of Prohibition should
issue against MICHAEL A. O'CONNELL,
NOW, THEREFORE, IT IS HEREBY ORDERED, pursuant to sections 8(e), and 8(j) of the Act,
(12 U.S.C. §§ 1818(e) and 18180)), that:
1. In the absence of prior written approval by the
Board, and by any other Federal financial institution regulatory agency where necessary pursuant
to section 8(e)(7)(B) of the Act (12 U.S.C.
§ 1818(e)(7)(B)), MICHAEL A. O'CONNELL is
hereby prohibited:
(a) From participating in the conduct of the
affairs of any bank holding company, any insured depository institution or any other insti-
826
Federal Reserve Bulletin • August 1993
tution specified in subsection 8(e)(7)(A) of the
Act (12 U.S.C. § 1818(e)(7)(A));
(b) From soliciting, procuring, transferring, attempting to transfer, voting or attempting to
vote any proxy, consent, or authorization with
respect to any voting rights in any institution
described in subsection 8(e)(7)(A) of the Act
(12 U.S.C. § 1818(e)(7)(A));
(c) From violating any voting agreement previously approved by the appropriate Federal
banking agency; or (d) from voting for a director, or from serving or acting as an institutionaffiliated party as defined in section 3(u) of the
Act, (12 U.S.C. § 1813(u)), including serving as
an officer, director, or employee.
2. This Order, and each provision hereof, is and
shall remain fully effective and enforceable until
expressly stayed, modified, terminated or suspended in writing by the Board.
3. This Order shall become effective upon the
expiration of thirty days after service is made.
By order of the Board of Governors, this 28th day of
June, 1993.
Board of Governors of the
Federal Reserve System
FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS
Country Hill Bancshares, Inc.
Lenexa, Kansas
The Federal Reserve Board announced on June 3,
1993, the issuance of a Cease and Desist Order against
Country Hill Bancshares, Inc., Lenexa, Kansas.
Victor J. Vargas Irausquin
New York, New York
The Federal Reserve Board announced on June 18,
1993, the issuance of a consent Order against Victor J.
Vargas Irausquin, an institution-affiliated party of
CapitalBanc Corporation, New York, New York.
WRITTEN AGREEMENTS
RESERVE
BANKS
APPROVED
BY
FEDERAL
Missouri State Financial Corporation
St. Louis, Missouri
The Federal Reserve Board announced on June 3,
1993, the execution of a Written Agreement between
the Federal Reserve Bank of St. Louis and Missouri
WILLIAM W . WILES
Secretary of the Board State Financial Corporation, St. Louis, Missouri.
A1
Financial and Business Statistics
CONTENTS
WEEKLY REPORTING COMMERCIAL
A3 Guide to Tabular Presentation
Assets and liabilities
A22 Large reporting banks
A24 Branches and agencies of foreign banks
Domestic Financial Statistics
MONEY STOCK AND BANK CREDIT
A4
A5
A6
A7
Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks
POLICY
A8 Federal Reserve Bank interest rates
A9 Reserve requirements of depository institutions
A10 Federal Reserve open market transactions
FEDERAL RESERVE BANKS
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings
INSTITUTIONS
A19 Major nondeposit funds
A20 Assets and liabilities, Wednesday figures
FINANCE
A28
A29
A30
A30
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
A31 U.S. government securities
dealers—Transactions
A32 U.S. government securities dealers—Positions
and financing
A3 3 Federal and federally sponsored credit
agencies—Debt outstanding
AGGREGATES
A13 Aggregate reserves of depository institutions
and monetary base
A14 Money stock, liquid assets, and debt measures
A16 Deposit interest rates and amounts outstanding—
commercial and BIF-insured banks
A17 Bank debits and deposit turnover
A18 Loans and securities—All commercial banks
COMMERCIAL BANKING
MARKETS
A25 Commercial paper and bankers dollar
acceptances outstanding
A25 Prime rate charged by banks on short-term
business loans
A26 Interest rates—money and capital markets
A27 Stock market—Selected statistics
A28 Selected financial institutions—Selected assets
and liabilities
FEDERAL
INSTRUMENTS
MONETARY AND CREDIT
FINANCIAL
BANKS
SECURITIES MARKETS AND
CORPORATE FINANCE
A34 New security issues—Tax-exempt state and local
governments and corporations
A35 Open-end investment companies—Net sales
and assets
A3 5 Corporate profits and their distribution
A3 5 Nonfarm business expenditures on new
plant and equipment
A36 Domestic finance companies—Assets and
liabilities, and consumer, real estate, and business
credit
2
Federal Reserve Bulletin • August 1993
Domestic Financial Statistics—Continued
A57 Selected U.S. liabilities to foreign official
institutions
REAL ESTATE
A37 Mortgage markets
A38 Mortgage debt outstanding
CONSUMER INSTALLMENT CREDIT
A39 Total outstanding
A39 Terms
FLOW OF FUNDS
A40
A42
A43
A44
Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities
Domestic Nonfinancial Statistics
SELECTED
MEASURES
A45 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross domestic product and income
A52 Personal income and saving
International Statistics
REPORTED BY BANKS
IN THE UNITED STATES
A57
A58
A60
A61
Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches
REPORTED BYNONBANKING
BUSINESS
ENTERPRISES IN THE UNITED STATES
A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners
SECURITIES HOLDINGS AND TRANSACTIONS
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and
notes—Foreign transactions
INTEREST AND EXCHANGE
RATES
A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates
A69 Guide to Statistical Releases and
Special Tables
SUMMARY STATISTICS
A53
A54
A54
A54
U.S. international transactions—Summary
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance
sheet data
SPECIAL TABLES
A70 Assets and liabilities of commercial banks,
March 31,1993
A76 Terms of lending at commercial banks, May 1993
A80 Assets and liabilities of U.S. branches and agencies
of foreign banks, March 31, 1993
A3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
c
e
n.a.
n.e.c.
P
r
ATS
BIF
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
Corrected
Estimated
Not available
Not elsewhere classified
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
Cell not applicable
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven
GENERAL
G-10
GNMA
GDP
HUD
Group of Ten
Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Savings Association Insurance Fund
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Standard metropolitan statistical area
Veterans Administration
INFORMATION
*
0
In many of the tables, components do not sum 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
IMF
IO
IPCs
IRA
MMDA
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SIC
SMSA
VA
include not fully guaranteed issues) as well as direct obligations of the Treasury. "State and local government" also includes municipalities, special districts, and other political
subdivisions.
A4
DomesticNonfinancialStatistics • August 1993
1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted1
1992
1993
1993
Monetary and credit aggregate
Feb.
Mar.
Apr/
6.9
4.7
6.0
8.3
5.6
9.3
8.3
8.5
5.3
3.0
4.3
8.9
.7
3.3
1.1
7.6
36.5
39.5
35.5
13.8
6.6
-2.0
-3.8r
-2.1r
4.4 r
7.8
-3.4
-7.4
-5.7r
3.r
-.2
-4.1
-1.7r
-1.4r
2.7
-.9
— 1.3r
-,6r
5.5r
9.0
.7
2.4
3.6
5.9
27.6
10.8
9.3
n.a.
n.a.
-2.8
-14.4
-5.5
-13.2 r
-8.1
-28.0
-5.6
10.3r
-2.4r
-3.5r
-2.9
11.7
3.7
1.4
10.9
-17.4
-18.6
12.9
-17.1
-18.4
1.6
-7.6
-17.9
-3.2
-10.2
-26.9
2.5
3.1
-12.3
-2.9
-2.9
-20.9
3.2
-9.1
10.0
14.0
-10.3
4.7
18.1
-29.8
-31.9
9.2
-18.6
-14.9
8.7
-21.7
-11.3
-.2
-19.2
-17.3
.8
-16.5
-3.6
-10.0
-24.1
-28.6
-5.1
-12.6
-18.3
2.3
-9.0
11.2
9.6
-5.6
-12.9
-6.6
23.9
-7.4
32.9
-4.2
-19.4
-10.1
-14.1
-9.5
-27.3
-21.2
25.5
-1.8
-5.9
-5.0
-3.0
17.4
14.4
Q2
Reserves of depository
Total
Required
Nonborrowed
Monetary base
5
6
7
8
9
Concepts of money, liquid assets, and debt4
Ml
M2
M3
L
Debt
components
Time and savings deposits
Commercial banks
Savings, including MMDAs
Smalltime;.
Large time '
Thrift institutions
15
Savings, including MMDAs
16
Smalltime^.
17 Large time 8 ' 9
12
13
14
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
Debt components4
20 Federal
21 Nonfederal
Q4
14.8
15.3
14.6
7.8
9.3
9.9
8.4
10.5
25.8
25.3
27.1
12.6
9.3
8.7
9.5
9.1
10.6
.3
-.6
1.3
5.5r
11.7
.8
.1
1.1
4.9
16.8
2.7
-.2
2.0
4.3r
-3.4
-4.9
-3.2
-3.5
12.6
-13.4
-13.3
14.4
2.6r
1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," 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 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 U.S. 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 (OCDs), 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. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) 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, (2) savings (including MMDAs) and small time deposits (time deposits—including retail repurchase
agreements (RPs)—in amounts of less than $100,000), and (3) balances in both
taxable and tax-exempt general-purpose and broker-dealer money market funds.
Excludes individual retirement accounts (IRAs) 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. Seasonally adjusted M2 is computed by adjusting its non-Mi component as a whole and
then adding this result to seasonally adjusted M l .
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) 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 (3) balances in both taxable and
Q1
Jan.
institutions2
1
2
3
4
Nontrqnsaction
10 I n M 2 5
11 In M3 only 6
Q3
10.7
3.QF
6.0
3.7r
8.6r
2.91
2.9
3.2r
5.3
3.4r
15.0
2.2r
10.9
4.1
May
n.a.
n.a.
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
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 fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding creditmarket 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 (1) overnight RPs and Eurodollars, (2) money market fund balances
(general purpose and broker-dealer), (3) savings deposits (including MMDAs),
and (4) small time deposits.
6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S.
residents, and (4) money market ftind balances (institution-only), less (5) a
consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market funds. This sum is
seasonally adjusted as a whole.
7. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRA and Keogh account balances at commercial banks and
thrift institutions are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market
funds, depository institutions, U.S. government and foreign banks and official
institutions.
Money Stock and Bank Credit
1.11
A5
RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE BANK CREDIT 1
Millions of dollars
Average of
daily figures
1993
Factor
Mar.
Average of daily figures for week ending on date indicated
1993
Apr.
May
Apr. 14
Apr. 21
Apr. 28
May 5
May 12
May 19
May 26
346,082
344,936
347,045 r
344,073 r
344,142
344,996
344,923
348,867
305,346
3,920
305,711
625
305,429
0
305,098
1,094
305,724
904
305,947
5,686
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit outstanding
U . S . government securities
2
Bought outright—System account
3
Held under repurchase agreements . . .
Federal agency obligations
4
Bought outright
5
Held undeT repurchase agreements . . .
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10
Float
11
Other Federal Reserve assets
337,743
12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding
344,222 r
298,823
1,984
303,316
3,293
305,421
2,598
300,124
6,742
5,173
112
0
5,106
25
0
5,086
117
0
5,111
73
0
5,095
0
0
5,095
0
0
5,095
0
0
5,095
14
0
5,095
114
0
5,084
390
0
69
26
0
1,153
30,404
29
40
0
618 r
31,794 r
43
83
0
436
32,298
6
32
0
1,322
31,525
38
41
0
23 r
32,373
65
52
1
422 r
32,102
15
67
1
916
32,618
128
74
0
412
33,081
8
87
0
671
32,319
20
93
0
161
31,485
11,055
8,018
21,556
11,054
8,018
21,605 r
11,054
8,018
21,657
11,054
8,018
21,598 r
11,054
8,018
21,608 r
11,054
8,018
21,619""
11,054
8,018
21,629
11,054
8,018
21,643
11,054
8,018
21,657
11,054
8,018
21,671
331,646
509
335,293 r
514
338,480
497
335,968 r
515
336,086 r
517
335,140 1
512
336,294
505
338,035
505
338,604
498
338,602
488
5,472
290
6,062
241
5,851
272
5,348
230
8,135
246
4,770
227
6,116
273
5,646
379
5,937
268
6,110
1%
6,498
347
6,391
317
6,193
310
6,532
311
6,213
322
6,473
316
6,048
304
5,986
307
6,296
322
6,324
312
ABSORBING RESERVE F U N D S
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
9,091
9,148
9,509
9,161
9,172
9,195
9,779
9,920
9,243
9,267
24,520
26,933 r
25,700
27,540
27,036 r
28,131 r
25,523
24,932
24,485
28,311
May 12
May 19
May 26
Wednesday figures
End-of-month figures
Mar.
Apr.
May
Apr. 14
Apr. 21
Apr. 28
May 5
SUPPLYING RESERVE F U N D S
1 Reserve Bank credit outstanding
U.S. government securities
Bought outright—System account .
Held under repurchase agreements
Federal agency obligations
Bought outright
Held under repurchase agreements
Acceptances
Loans to depository institutions
Adjustment credit
Seasonal credit
Extended credit
Float
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account
14 Treasury currency outstanding
343,481
343,696 r
346,963
348,681
347,301 r
342,924 r
345,343
352,418
342,687
356,734
298,461
6,756
305,381
0
304,494
5,347
302,476
8,526
305,525
3,920
305,477
0
305,399
0
305,580
7,660
305,540
35
306,148
11,930
5,123
567
0
5,095
0
0
5,054
0
0
5,095
57
0
5,095
0
0
5,095
0
0
5,095
0
0
5,095
95
0
5,095
10
0
5,054
1,120
0
720
32
0
337
31,484
20
63
2
619f
32,517
37
92
0
58
31,881
7
37
0
781
31,702
9
43
0
190r
32,519
29
59
2
79r
32,183
5
70
0
1,871
32,903
13
81
0
452
33,442
5
94
0
895
31,012
19
93
0
351
32,019
11,054
8,018
21,578
11,054
8,018
21,629 r
11,053
8,018
21,685
11,054
8,018
21,598 r
11,054
8,018
21,608 r
11,054
8,018
21,6^
11,054
8,018
21,629
11,054
8,018
21,643
11,054
8,018
21,657
11,054
8,018
21,671
332,822
515
335,907 r
505
340,867
489
336,536 r
517
335,612 r
513
335,557 r
505
337,159
506
338,645
499
338,568
489
339,528
483
6,752
318
7,273
221
5,787
194
4,793
589
13,052
198
5,291
229
5,318
355
4,952
210
6,080
263
5,369
246
6,899
314
6,048 r
291
6,299
300
6,532
352
6,213
311
6,473
324
6,048
304
5,986
313
6,2%
323
6,324
311
ABSORBING RESERVE F U N D S
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
8,844
9,847
9,263
9,099
9,052
9,032
9,749
9,128
9,094
9,139
27,668
24,305 r
24,521
30,932
23,031 r
26,204 r
26,605
33,399
22,302
36,077
1. For amounts of cash held as reserves, see table 1.12.
2. 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.
3. Excludes required clearing balances and adjustments to compensate for
float.
A6
DomesticNonfinancialStatistics • August 1993
1.12 RESERVES AND BORROWINGS
Millions of dollars
Depository Institutions1
Prorated monthly averages of biweekly averages
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks 2
Total vault cash
Applied vault cash ,
Surplus vauk cash
Total reserves
Required reserves
i ...
Excess reserve balances at Reserve B a n k s ' . . .
Total borrowings at Reserve Banks 8
Seasonal borrowings
Extended credit 9
1990
1991
1992
Dec.
Reserve classification
Dec.
Dec.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
30,237
31,789
28,884
2,905
59,120
57,456
1,664
326
76
23
26,659
32,510
28,872
3,638
55,532
54,553
979
192
38
1
25,368
34,535
31,172
3,364
56,540
55,385
1,155
124
18
1
25,462
32,457
29,205
3,252
54,666
53,624
1,043
104
40
0
25,368
34,535
31,172
3,364
56,540
55,385
1,155
124
18
1
23,636
35,991
32,368
3,623
56,004
54,744
1,260
165
11
1
23,515
33,914
30,368
3,546
53,882
52,778
1,104
45
18
0
24,383
33,293
29,912
3,381
54,2%
53,083
1,213
91
26
0
26,975r
32,721
29,567
3,154
56,541r
55,445
l,096 r
73
41
0
25,968
33,462
30,133
3,329
56,100
55,104
997
121
84
0
1992
1993
Biweekly averages of daily figures for weeks ending
1993
Feb. 3
1
2
3
4
5
6
7
8
9
10
Reserve balances with Reserve Banks
Total vault c a s h 3 . . .
Applied vault cash*
Surplus vauk cash 5
Total reserves 6
Required reserves
i
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks 8
Seasonal borrowings
Extended credit 9
Feb. 17
Mar. 3
Mar. 17
Mar. 31
Apr. 14
Apr. 28r
May 12r
May 26
June 9
21,500
36,368
32,470
3,898
53,970
52,740
1,230
64
11
3
23,301
34,764
31,069
3,695
54,370
52,875
1,495
33
18
0
24,335
32,163
28,902
3,261
53,237
52,666
571
56
20
0
24,029
34,487
30,944
3,543
54,973
53,683
1,290
93
22
0
24,747
32,343
29,098
3,245
53,845
52,572
1,273
98
32
0
26,612
33,218
29,995
3,223
56,607
55,763
844
38
31
0
27,586
32,010
28,960
3,050
56,546
55,160
1,387
99
47
1
25,228
34,225
30,816
3,409
56,044
55,217
828
142
71
1
26,396
32,728
29,455
3,273
55,851
54,649
1,202
105
90
0
26,540
33,685
30,391
3,293
56,931
56,105
826
118
101
0
1. Data in this table also appear in the Board's H.3 (502) weekly statistical
release. For ordering 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 depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash
can be used to satisfy reserve requirements. The maintenance period for weekly
reporters ends sixteen days after the lagged computation period during which the
vault cash is held. Before Nov. 25,1992, the maintenance period ended thirty days
after the lagged computation period.
4. All vault cash held during the lagged computation period by "bound"
institutions (that is, those whose required reserves exceed their vault cash) plus
the amount of vault cash applied during the maintenance period by "nonbound"
institutions (that is, those whose vault cash exceeds their required reserves) to
satisfy current reserve requirements.
5. Total vault cash Oine 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. Also includes adjustment credit.
9. 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.
Money Stock and Bank Credit
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS
Millions of dollars, averages of daily figures
A7
Large Banks1
1993, week ending Monday
Source and maturity
Apr. 5
1
2
3
4
5
6
7
8
Federal funds purchased, repurchase agreements, and
other selected
borrowings
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
official institutions, and U . S . government agencies
For one day or under continuing contract
For all other maturities
Repurchase agreements on U.S. government
agency securities
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
and
Apr. 12
Apr. 19
Apr. 26
May 3
May 10
May 17
May 24
May 31
73,835
11,799
76,974
14,364
72,059
12,264r
66,142
12,985r
68,032
13,709
68,197
13,490
69,117
13,227
65,952
12,864
70,624
12,825
19,121
18,665
17,641
18,429
18,236
19,311
19,437
19,603
16,829
19,943
15,975
19,771
18,618
21,278
21,775
20,739
18,376
20,968
14,302
26,122
13,274
27,6%
14,332
27,039
13,356
26,549
12,017
26,812
12,028
26,127
12,650
26,634
13,386
27,626
13,028
27,872
23,168
14,470
22,301
15,269
23,085
13,573
23,077
14,061
24,272
14,152
22,777
13,650
23,066
13,877
23,164
13,886
24,170
14,364
43,155
21,654
38,319
21,849
37,897
23,093
37,289
21,827
42,605
22,042
41,271
22,351
40,746
23,830
39,174
20,707
43,503
20,010
federal
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 2
1. Banks with assets of $4 billion or more as of Dec. 31, 1988.
Data in this table also appear in the Board's H.5 (507) weekly statistical release.
For ordering address, see inside front cover.
2. Brokers and nonbank dealers in securities, other depository institutions,
foreign banks and official institutions, and U . S . government agencies.
A8
DomesticNonfinancialStatistics • August 1993
1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit 1
Federal Reserve
Bank
On
6/30/93
Seasonal credit 2
Effective date
Boston
New York . . .
Philadelphia..
Cleveland
Richmond
Atlanta
7/2/92
7/2/92
7/2/92
7/6/92
7/2/92
7/2/92
3.5
Chicago
St. Louis
Minneapolis..
Kansas C i t y . .
Dallas
San Francisco
7/2/92
7/7/92
7/2/92
7/2/92
7/2/92
7/2/92
On
6/30/93
Previous rate
Effective date
Extended credit 3
Previous rate
3.5
3.10
In effect Dec. 31, 1977
1978—Jan.
May
July
Aug.
Sept.
Oct.
Nov.
*
9
20
11
12
3
10
21
22
16
20
1
3
Range (or
level)—
All F.R.
Banks
6
6-6.5
6.5
6.5-7
7
7-7.25
7.25
7.75
8
8-8.5
8.5
8.5-9.5
9.5
1979—July 20
Aug. 17
20
Sept. 19
21
Oct. 8
10
10
10-10.5
10.5
10.5-11
11
11-12
12
1980—Feb. 15
19
May 29
30
June 13
16
29
July 28
Sept. 26
Nov. 17
Dec. 5
12-13
13
12-13
12
11-12
11
10
10-11
11
12
12-13
F.R.
Bank
of
N.Y.
6
6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5
10
10.5
10.5
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13
Effective
1981-—May
5
Nov.
7
6
4
Dec.
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
3.10
Range (or
level)—
All F.R.
Banks
13-14
14
13-14
13
12
F.R.
Bank
of
N.Y.
14
14
13
13
12
11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5
11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5
n
Nov. 71
76
Dec. 74
8.5-9
9
8.5-9
8.5
8
9
9
8.5
8.5
8
1985-—May 70
—May
74
7.5-8
7.5
1986-—Mar. 7
10
Apr. 71
July 11
7-7.5
7
6.5-7
6
3.60
3.60
4
Range (or
level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
1986—Aug. 21
22
5.5-6
5.5
5.5
5.5
1987—Sept. 4
11
5.5-6
6
6
6
1988—Aug. 9
11
6-6.5
6.5
1989—Feb. 24
27
6.5-7
7
7
7
Effective date
7.5
7.5
7
7
6.5
6
1982-- J u l y
70
n
?
H
16
77
30
Oct. 1?
n
Nov. 77
76
Dec. 14
15
17
Aug.
1984-—Apr.
—Apr.
1990—Dec. 19
1991—Feb.
Apr.
May
Sept.
Sept.
Nov.
Dec.
1992—July
6.5
6.5
1
4
30
2
13
17
6
7
20
24
6-6.5
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5
6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5
2
7
3-3.5
3
3
3
3
3
In effect June 30, 1993
1. Available on a short-term basis to help depository institutions meet temporary needs for funds that cannot be met through reasonable alternative sources.
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.
2. Available to help relatively small depository institutions meet regular
seasonal needs for funds that arise from a clear pattern of intrayearly movements
in their deposits and loans and that cannot be met through special industry
lenders. The discount rate on seasonal credit takes into account rates on market
sources of funds and ordinarily is reestablished on the first business day of each
two-week reserve maintenance period; however, it is never less than the discount
rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is
not reasonably available from other sources, including special industry lenders.
Such credit may be provided when exceptional circumstances (including sustained deposit drains, impaired access to money market funds, or sudden
deterioration in loan repayment performance) or practices involve only a particular institution, or to meet the needs of institutions experiencing difficulties
adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermediation). The discount rate applicable to adjustment credit
Previous rate
Effective date
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
6/24/93
Range of rates for adjustment credit in recent years
Effective date
On
6/30/93
ordinarily is charged on extended-credit loans outstanding less than thirty days;
however, at the discretion of the Federal Reserve Bank, this time period may be
shortened. Beyond this initial period, a flexible rate somewhat above rates on
market sources of funds is charged. The rate ordinarily is reestablished on the first
business day of each two-week reserve maintenance period, but it is never less
than the discount rate applicable to adjustment credit plus 50 basis points.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, and 1941-1970; and the 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. A surcharge of 2 percent was reimposed on Nov. 17, 1980; 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 thirteen-week period.
The surcharge was eliminated on Nov. 17, 1981.
Policy Instruments
A9
1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 1
Type of deposit 2
Net transaction accounts
1 $0 million-$46.8 million...
2 More than $46.8 million 4 ..
12/15/92
12/15/92
3
Nonpersonal time deposits'
12/27/90
4
Eurocurrency liabilities 6 . .
12/27/90
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 Gam-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. 15, 1992, the exemption was raised from $3.6
million to $3.8 million. Tne exemption applies in the following order: (1) net
negotiable order of withdrawal (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. Include all deposits against 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 three per month
for the purpose of making payments to third persons or others. However, money
market deposit accounts (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 may be checks, are not transaction accounts (such
accounts are savings deposits).
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. 15,
1992, for institutions reporting quarterly, and Dec. 24, 1992, for institutions
reporting weekly, the amount was increased from $42.2 million to $46.8 million.
4. The reserve requirement was reduced from 12 percent to 10 percent on Apr.
2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions
that report quarterly.
5. For institutions that report weekly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than lVi years was reduced from 3
percent to lVi percent for the maintenance period that began Dec. 13, 1990, and
to zero for the maintenance period that began Dec. 27, 1990. The reserve
requirement on nonpersonal time deposits with an original maturity of 1VS years
or more has been zero since Oct. 6, 1983.
For institutions that report quarterly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than 1 Vi years was reduced from 3
percent to zero on Jan. 17, 1991.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3
percent to zero in the same manner and on the same dates as were the reserve
requirement on nonpersonal time deposits with an original maturity of less than
1VS years (see note 4).
A10 Domestic Financial Statistics • August 1993
1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1992
1990
Type of transaction
1991
1993
1992
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
U . S . T R E A S U R Y SECURITIES
Outright transactions
transactions)
(excluding
matched
1
2
3
4
Treasury bills
Gross purchases
Gross sales
Exchanges
Redemptions
24,739
7,291
241,086
4,400
20,158
120
277,314
1,000
14,714
1,628
308,699
1,600
4,072
0
28,907
0
1,064
0
25,468
0
3,669
0
29,562
0
0
0
24,542
0
0
0
19,832
0
0
0
23,796
0
121
0
30,124
0
5
6
7
8
9
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
425
0
25,638
-27,424
0
3,043
0
24,454
-28,090
1,000
1,096
0
36,662
-30,543
0
0
0
2,010
-982
0
461
0
7,160
-4,615
0
0
0
2,777
-1,570
0
0
0
561
-1,202
0
0
0
2,892
-6,044
0
279
0
4,303
-2,602
0
244
0
1,950
-1,100
0
10
11
12
13
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
250
200
-21,770
25,410
6,583
0
-21,211
24,594
13,118
0
-34,478
25,811
200
0
-1,762
884
4,172
0
-6,800
3,415
200
0
-2,777
1,570
0
0
-64
882
0
0
-2,617
4,564
1,441
0
-4,303
2,602
2,490
0
-1,630
800
14
15
16
17
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
0
100
-2,186
789
1,280
0
-2,037
2,894
2,818
0
-1,915
3,532
0
0
-248
97
1,176
0
-187
800
100
0
0
0
0
0
-497
0
0
0
-98
1,000
716
0
0
0
1,147
0
-320
300
18
19
20
21
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
0
0
-1,681
1,226
375
0
-1,209
600
2,333
0
-269
1,200
0
0
0
0
947
0
-173
400
0
0
0
0
0
0
0
0
0
0
-177
480
705
0
0
0
1,110
0
0
0
22
23
24
All maturities
Gross purchases
Gross sales
Redemptions
25,414
7,591
4,400
31,439
120
1,000
34,079
1,628
1,600
4,272
0
0
7,820
0
0
3,969
0
0
0
0
0
0
0
0
3,141
0
0
5,111
0
0
1,369,052
1,363,434
1,570,456
1,571,534
1,482,467
1,480,140
116,024
114,917
115,020
117,020
144,232
142,578
114,543
116,510
111,491
113,349
146,563
143,049
127,115
128,924
219,632
202,551
310,084
311,752
378,374
386,257
18,698
35,383
42,373
39,117
48,904
44,697
34,768
42,231
28,544
25,889
37,815
33,714
30,197
36,953
24,886
29,729
20,642
-13,520
13,075
6,521
-5,497
4,513
3,728
163
0
0
183
0
5
292
0
0
632
0
0
0
0
0
0
0
0
121
0
0
103
0
0
85
0
0
101
0
0
28
41,836
40,461
22,807
23,595
14,565
14,486
1,778
3,253
2,760
2,506
1,601
1,224
2,237
2,868
1,107
832
1,811
1,519
197
764
35 Net change in federal agency obligations
1,192
-1,085
-554
-1,475
254
256
-734
190
191
-595
36 Total net change in System Open Market
Account
26,078
28,644
20,089
-14,995
13,329
6,777
-6,231
4,703
3,918
-431
Matched
transactions
25 Gross sales
26 Gross purchases
Repurchase
agreements2
27 Gross purchases
28 Gross sales
29 Net change in U.S. government securities
F E D E R A L A G E N C Y OBLIGATIONS
Outright
transactions
30 Gross purchases
31 Gross sales
32 Redemptions
Repurchase
agreements1
33 Gross purchases
34 Gross sales
1. Sales, redemptions, and negative figures reduce holdings of the System Open
Market Account; all other figures increase such holdings.
2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements.
Federal Reserve Banks
1.18 FEDERAL RESERVE BANKS
Millions of dollars
All
Condition and Federal Reserve Note Statements1
Wednesday
1993
Account
Apr. 28
May 5
End of month
1993
May 12
May 19
May 26
Mar. 31
Apr. 30
May 31
Consolidated condition statement
ASSETS
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
9 Total U.S. Treasury securities
11,054
8,018
485
11,054
8,018
489
11,054
8,018
482
11,054
8,018
472
11,054
8,018
452
11,054
8,018
503
11,054
8,018
487
11,053
8,018
441
89
0
0
75
0
0
94
0
0
99
0
0
112
0
0
753
0
0
84
0
0
129
0
0
5,095
0
5,095
0
5,095
95
5,095
10
5,054
1,120
5,123
567
5,095
0
5,054
0
305,477
305,399
313,240
305,575
318,078
305,217
305,381
309,841
10 Bought outright 2
11
Bills
17
Notes
13
Bonds
14 Held under repurchase agreements
305,477
144,130
123,936
37,411
0
305,399
144,052
123,936
37,411
0
305,580
144,233
123,936
37,411
7,660
305,540
144,194
123,870
37,477
35
306,148
144,802
123,870
37,477
11,930
298,461
142,104
120,211
36,146
6,756
305,381
144,034
123,936
37,411
0
304,494
143,148
123,870
37,477
5,347
15 Total loans and securities
310,661
310,570
318,524
310,780
324,364
311,660
310,560
315,025
5,298
1,035
8,075
1,035
5,574
1,036
5,424
1,038
4,938
1,038
5,338
1,031
5,359
1,034
4,473
1,039
22,411
8,718
23,115
8,751
23,134
9,308
23,171
6,878
23,197
7,861
22,328
8,092
23,043
8,550
23,143
7,820
367,681
371,106
377,131
366,835
380,922
368,024
368,106
371,013
16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies 3
19 All other
20 Total assets
LIABILITIES
314,928
316,524
317,983
317,872
318,791
312,263
315,270
320,112
22 Total deposits
38,760
38,848
44,915
34,949
48,269
41,917
38,365
37,279
73
24
25
26
32,919
5,291
229
324
32,871
5,318
355
304
39,440
4,952
210
313
28,283
6,080
263
323
42,343
5,369
246
311
34,533
6,752
318
314
30,579
7,273
221
291
31,000
5,787
194
300
4,961
2,189
5,985
2,156
5,105
2,269
4,919
2,205
4,722
2,239
5,001
2,251
4,624
2,220
4,358
2,217
360,838
363,514
370,271
359,945
374,022
361,430
360,479
363,966
3,259
3,054
529
3,260
3,054
1,278
3,273
3,054
533
3,284
3,054
552
3,300
3,054
546
3,187
3,054
353
3,260
3,054
1,313
3,300
3,054
693
33 Total liabilities and capital accounts
367,681
371,106
377,131
366,835
380,922
368,024
368,106
371,013
MEMO
34 Marketable U.S. Treasury securities held in custody for
foreign and international accounts
304,784
309,814
310,221
312,958
312,869
304,825
310,903
313,505
21 Federal Reserve notes
Depository institutions
U.S. Treasury—General account
Foreign—OfBcial accounts
Other
^
n Deferred credit items
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL A C C O U N T S
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 Federal Reserve Bank
37
Federal Reserve notes, net
38
39
40
41
Collateral held against notes, net:
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities
42 Total collateral
378,128
63,200
314,928
379,044
62,519
316,524
380,288
62,305
317,983
381,079
63,207
317,872
381,807
63,016
318,791
373,886
61,624
312,263
378,585
63,315
315,270
382,009
61,897
320,112
11,054
8,018
0
295,856
11,054
8,018
0
297,452
11,054
8,018
0
298,911
11,054
8,018
0
298,800
11,054
8,018
0
299,720
11,054
8,018
0
293,190
11,054
8,018
0
2 % , 198
11,053
8,018
0
301,040
314,928
316,524
317,983
317,872
318,791
312,263
315,270
320,112
1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly
statistical release. For ordering address, see inside front cover.
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 ninety days.
5. Includes exchange-translation account reflecting the monthly revaluation at
market exchange rates of foreign exchange commitments.
A12
DomesticNonfinancialStatistics • August 1993
1.19 FEDERAL RESERVE BANKS
Millions of dollars
Maturity Distribution of Loan and Security Holding
Wednesday
1993
Type of holding and maturity
End of month
1993
Apr. 28
1 Total loans
May 5
May 12
May 19
May 26
Mar. 31
Apr. 30
May 31
89
75
94
99
112
753
84
129
105
7
0
741
12
0
54
30
0
82
47
0
84
5
0
21
54
0
33
61
0
5 Total acceptances
0
0
0
0
0
0
0
0
6 Within fifteen days'
7 Sixteen days to ninety days
8 Ninety-one days to one 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
2 Within fifteen days'
3 Sixteen days to ninety days
4 Ninety-one days to one year
97
2
0
305,477
305,399
313,240
305,575
308,488
305,217
305,381
304,494
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
15,052
68,275
97,132
73,624
21,471
29,922
16,967
69,582
94,542
72,915
21,471
29,922
21,181
69,509
98,242
72,915
21,471
29,922
15,707
69,198
97,900
71,065
21,606
30,099
18,246
69,481
97,991
71,065
21,606
30,099
17,889
67,037
99,880
71,255
20,344
28,813
11,295
74,524
95,254
72,915
21,471
29,922
8,196
79,097
94,431
71,065
21,606
30,099
16 Total federal agency obligations
5,095
5,095
5,190
5,105
5,504
5,690
5,095
5,054
17
18
19
20
21
22
115
643
1,177
2,307
711
142
0
744
1,191
2,307
711
142
136
703
1,216
2,282
711
142
327
427
1,216
2,282
711
142
751
402
1,261
2,237
711
142
855
507
1,057
2,419
711
142
115
643
1,177
2,307
711
142
301
527
1,136
2,237
711
142
9 Total U.S. Treasury securities
10
11
1?
n
14
15
Within fifteen days'
Sixteen days to ninety days
Ninety-one days to one year
One year to five years
Five years to ten years
More than ten years
1. Holdings under repurchase agreements are classified as maturing within
fifteen days in accordance with maximum maturity of the agreements.
Monetary and Credit Aggregates
A13
1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY BASE 1
Billions of dollars, averages of daily figures
1993
1992
Item
1989
Dec.
1990
Dec.
1992
Dec.
1991
Dec.
Oct.
Total reserves 3
Nonborrowed reserves 4
Nonborrowed reserves plus extended credit
Required reserves
Monetary base 6
Dec.
Jan.
Feb.
Mar.
Apr.
May
54.67
54.50
54.50
53.41
353.22
54.92
54.88
54.88
53.82
355.73
55.17
55.07
55.07
53.95
358.37
55.20
55.12 r
55.12 r
54.10
360.64 r
56.88
56.76
56.76
55.88
364.78
Seasonally adjusted
ADJUSTED FOR
2
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S
1
2
3
4
5
Nov.
40.49
40.23
40.25
39.57
267.73
41.77
41.44
41.46
40.10
293.19
45.53
45.34
45.34
44.56
317.17
54.35
54.23
54.23
53.20
350.80
52.84
52.69
52.69
51.76
344.85
53.82
53.71
53.71
52.77
347.83
54.35
54.23
54.23
53.20
350.80
Not seasonally adjusted
6
7
8
9
10
Total reserves 7
Nonborrowed reserves
Nonborrowed reserves plus extended credit .
Required reserves 8
Monetary base
41.77
41.51
41.53
40.85
271.18
43.07
42.74
42.77
41.40
296.68
46.98
46.78
46.78
46.00
321.07
56.06
55.93
55.93
54.90
354.55
52.62
52.47
52.47
51.54
343.63
54.08
53.97
53.97
53.04
347.89
56.06
55.93
55.93
54.90
354.55
55.97
55.80
55.80
54.71
354.41
53.81
53.77
53.77
52.71
353.18
54.18
54.09
54.09
52.96
356.00
56.37
56.29 r
56.29*
55.27
361.64 r
55.88
55.75
55.75
54.88
364.09
62.81
62.54
62.56
61.89
292.55
.92
.27
59.12
58.80
58.82
57.46
313.70
1.66
.33
55.53
55.34
55.34
54.55
333.61
.98
.19
56.54
56.42
56.42
55.39
360.90
1.16
.12
53.14
52.99
52.99
52.06
349.81
1.07
.14
54.67
54.56
54.56
53.62
354.25
1.04
.10
56.54
56.42
56.42
55.39
360.90
1.16
.12
56.00
55.84
55.84
54.74
360.88
1.26
.17
53.88
53.84
53.84
52.78
359.56
1.10
.05
54.30
54.20
54.20
53.08
362.59
1.21
.09
56.54 r
56.47
56.47
55.45
368.18 r
1.10
.07
56.10
55.98
55.98
55.10
370.47
N O T ADJUSTED FOR
C H A N G E S IN R E S E R V E R E Q U I R E M E N T S '
11
12
13
14
15
16
17
Total reserves 1 1
Nonborrowed reserves
„
Nonborrowed reserves plus extended credit .
Required reserves
Monetary base
Excess reserves
Borrowings from the Federal Reserve
1. Latest monthly and biweekly figures are available from the Board's H.3 (502)
weekly 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, DC 20551.
2. Figures reflect adjustments for discontinuities, or " b r e a k s , " associated with
regulatory changes in reserve requirements. (See also table 1.10)
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 that are due to regulatory
changes in reserve requirements, a multiplicative procedure is used to estimate
1.00
.12
what required reserves would have been in past periods had current reserve
requirements been in effect. Break-adjusted required reserves include required
reserves against transactions deposits and nonpersonal time and savings deposits
(but not reservable nondeposit liabilities).
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 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. Since the introduction of changes in reserve requirements
(CRR), currency and vault cash figures have been measured over the computation
periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).
A14
1.21
DomesticNonfinancialStatistics • August 1993
MONEY STOCK, LIQUID ASSETS, A N D DEBT MEASURES 1
Billions of dollars, averages of daily figures
1993
1989
Dec.
1990
Dec.
1991
Dec.
1992
Dec.
Feb.
Mar.
Apr.
May
Seasonally adjusted
1
2
3
4
5
Measures2
Ml
M2
M3
L
Debt
6
7
8
9
Ml components
Currency 3
Travelers checks
Demand deposits
Other checkable deposits 6
1,026.6
3,497.0
4,166.5
5,052.1
ll,779.7 r
1,033.1
3,475.2
4,134.9r
5,022.4r
ll,848.6 r
1,035.4
3,472.7r
4,130.4r
5,019.7r
ll,903.2 r
l,043.2 r
3,474.7r
4,138.7r
5,034.6
11,961.6
1,067.2
3,506.0
4,170.9
4,966.6
10,755.3
267.2
7.8
290.5
333.8
292.3
8.1
340.9
385.2
296.8
8.0
341.9
386.4
299.0
8.0
342.0
386.4
301.4
8.1
347.3
386.4r
304.0
8.2
359.2
395.8
2,518.3
771.2
2,546.6
722.3
2,470.3
669.6
2,442.1
659.6r
2,437.3r
657.7r
2,431.4r
664. r
2,438.9
664.9
541.4
534.9
387.7
582.2
610.3
368.7
666.2
601.5
341.3
756.1
507.0
290.2
755.7
504.0
280.8
753.9
502.8
275.9
755.9r
499.0
278.2r
764.7
494.7
279.3
Thrift institutions
15 Savings deposits, irrcluding MMDAs
16 Small time deposits 9 .
17 Large time deposits 10
349.6
617.8
161.1
338.6
562.0
120.9
376.3
463.2
83.4
429.9
363.2
67.3
426.6
351.0
65.5
424.8
347.3
64.5
425.6
344.7r
65.l r
429.0
343.1
64.4
Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only
317.4
108.8
350.5
135.9
363.9
182.1
342.3
202.3
333.6
201.9
333.1
200.9
331.7
200.4
336.5
202.8
2,249.5
7,837.0
2,493.4
8,261.9
2,764.8
8,454.5r
3,069.0r
8,710.7r
3,090.0
8,758.5r
3,128.5
8,774.7r
3,156.8
8,804.9
794.6
3,233.3
4,056.1
4,886.1
10,076.7
827.2
3,345.5
4,116.7
4,965.2
10,751.3
222.7
6.9
279.8
285.3
246.7
7.8
278.2
294.5
2,438.7
822.8
Commercial banks
12 Savings deposits, iircluding MMDAs
13 Small time deposits
14 Large time deposits '
Nontransaction
10 In M21
11 In M3
899.3
3,445.8
4,168.1
4,982.2
11,219.3''
components
Debt components
20 Federal debt
21 Nonfederal debt
n.a.
n.a.
Not seasonally adjusted
22
23
24
25
26
Measures2
Ml
M2
M3
L
Debt
27
28
29
30
Ml components
Currency 3
Travelers checks
Demand deposits
Other checkable deposits 6
811.5
3,245.1
4,066.4
4,906.0
10,073.4
843.7
3,357.0
4,126.3
4,988.0
10,743.9
916.4
3,457.9
4,178.1
5,004.2
11,209.4r
1,045.8
3,511.2
4,178.6
5,077.0
11,771.3'
1,022.3
3,469.2
4,132.3r
5,022.7r
ll,815.2 r
1,030.8
3,479.5r
4,140.4r
5,033.3r
ll,863.5 r
l,058.4 r
3,498. l r
4,157.8r
5,052.4
11,919.8
1,058.0
3,490.5
4,157.4
n.a.
n.a.
225.3
6.5
291.5
288.1
249.5
7.4
289.9
296.9
269.9
7.4
302.9
336.3
295.0
7.8
355.3
387.7
295.3
7.7
334.3
384.9
297.9
7.8
336.4r
388.9
301.3
7.8
350.7
398.7r
304.4
7.9
352.1
393.5
2,433.6
821.4
2,513.2
769.3
2,541.5
720.1
2,465.4
667.4
2,447.0
663.0'
2,448.7r
660.9r
2,439.7r
659.7r
2,432.5
667.0
Commercial banks
33 Savings deposits, iircluding MMDAs
34 Small time deposits
35 Large time deposits 10,
543.0
533.8
386.9
580.1
610.5
367.7
663.3
602.0
340.1
752.3
507.8
289.1
753.1
504.6
280.3
757.5
502.1
276.8r
760.7r
497.8
277.4r
765.8
492.4
280.9
Thrift institutions
36 Savings deposits, iiuluding MMDAs
37 Small time deposits 9 .
38 Large time deposits
347.4
616.2
162.0
337.3
562.1
120.6
374.7
463.6
83.1
427.8
363.8
67.1
425.1
351.4
65.4
426.8
346.8
64.7
428.3
343.8
65.0
429.6
341.5
64.7
Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only
315.7
109.1
348.4
136.2
361.5
182.4
340.0
202.4
339.8
210.3
342.2
203.6
337.9
199.5
334.8
203.0
Repurchase agreements and eurodollars
41 Overnight
42
77.5
178.4
74.7
158.3
76.3
130.1
73.9
126.3
72.9
128.91
73.2r
135.8r
71.l r
138.l r
68.3
139.0
2,247.5
7,826.0
2,491.3
8,252.5
2,765.0
8,444.4r
3,069.8
8,701,5r
3,087.3
8,727.9r
3,121.4
8,742. l r
3,142.9
8,776.9
Nontransaction
31 In M2;
32 In M3 8
components
Debt components
43 Federal debt
44 Nonfederal debt
For notes see following page.
n.a.
n.a.
Monetary and Credit Aggregates
NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
weekly statistical 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, DC 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the U.S. 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 (OCDs), 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. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) 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, (2) savings (including MMDAs) and small time deposits (time deposits—including retail RPs—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) 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. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result to seasonally adjusted M l .
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) 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 (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
A15
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
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. This sum is seasonally adjusted as a whole.
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 owed 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 account balances at all depository institutions,
credit union share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) savings deposits (including
MMDAs), and (4) small time deposits.
8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U.S.
residents, and (4) 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 time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRAs and Keogh accounts at commercial banks and thrift
institutions are subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market
funds, depository institutions, U.S. government, and foreign banks and official
institutions.
A16
DomesticNonfinancialStatistics • August 1993
1.22 DEPOSIT INTEREST RATES AND AMOUNTS OUTSTANDING Commercial and BIF-insured saving banks1
1992
Sept.
1993
Nov.
Oct.
Dec.
Feb.
Jan.
Mar.
Apr. r
May
Interest rates (annual effective yields)
INSURED C O M M E R C I A L B A N K S
1 Negotiable order of withdrawal accounts . . .
2 Savings deposits
4.89
5.84
3.76
4.30
2.45
3.00
2.39
2.94
2.36
2.90
2.33
2.88
2.32
2.85
2.27
2.80
2.21
2.73
2.16
2.68
2.13
2.65
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days t o 1 year
More than 1 year to 2Vi years
7 More than 2Yi years
6.94
7.19
7.33
7.42
7.53
4.18
4.41
4.59
4.95
5.52
2.95
3.16
3.37
3.86
4.62
2.89
3.11
3.30
3.78
4.60
2.91
3.14
3.34
3.83
4.70
2.90
3.16
3.37
3.88
4.77
2.86
3.13
3.34
3.88
4.72
2.81
3.08
3.29
3.83
4.59
2.75
3.03
3.22
3.74
4.52
2.72
2.99
3.19
3.66
4.47
2.70
2.98
3.18
3.64
4.45
8 Negotiable order of withdrawal accounts . . .
9 Savings deposits
5.38
6.01
4.44
4.97
2.71
3.39
2.57
3.29
2.52
3.22
2.45
3.20
2.41
3.17
2.37
3.14
2.32
3.06
2.25
2.99
2.21
2.95
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2 Vi years
7.64
7.69
7.85
7.91
7.99
4.68
4.92
4.99
5.23
5.98
3.17
3.47
3.60
3.95
4.91
3.08
3.41
3.56
3.90
4.84
3.10
3.42
3.59
3.93
4.88
3.13
3.44
3.61
4.02
5.00
3.06
3.38
3.58
3.94
5.02
3.01
3.35
3.57
3.89
4.98
2.98
3.31
3.54
3.84
4.89
2.94
3.27
3.50
3.85
4.84
2.92
3.23
3.47
3.76
4.77
3
4
5
6
BIF-INSURED SAVINGS B A N K S
10
11
12
13
14
3
Amounts outstanding (millions of dollars)
INSURED C O M M E R C I A L B A N K S
15 Negotiable order of withdrawal accounts . . .
16 Savings deposits 2
17
Personal
Nonpersonal
18
209,855
570,270
n.a.
n.a.
244,637
652,058
508,191
143,867
261,946
725,256
565,385
159,871
267,709
736,057
570,532
165,525
275,465
740,841
575,399
165,442
286,541
738,253
578,757
159,496
277,226
733,833
579,715
154,118
279,904
742,966
585,309
157,657
288,426
748,427
591,879
156,547
281,202
745,515
587,244
158,271
284,394
753,870
591,800
162,069
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vl years
More than 2Vi years
50,189
168,044
221,007
150,188
139,420
47,094
158,605
209,672
171,721
158,078
38,363
129,988
177,387
157,912
167,382
39,472
128,683
171,263
155,668
168,556
38,985
127,636
166,995
153,784
168,586
38,474
127,831
163,098
152,977
169,708
38,257
128,050
160,786
151,637
169,351
36,739
128,214
159,569
151,536
172,312
35,748
125,914
158,388
148,037
177,789
34,743
122,309
157,064
146,906
178,984
33,424
119,366
156,941
144,786
180,054
131,006
147,266
148,391
147,664
147,319
147,350
147,039
146,859
146,686
145,492
144,721
8,404
64,456
n.a.
n.a.
9,624
71,215
68,638
2,577
10,388
81,922
78,752
3,170
10,126
81,022
77,798
3,224
10,642
82,919
79,667
3,252
10,871
81,786
78,695
3,091
9,981
79,775
76,799
2,976
9,919
80,061
77,039
3,022
10,412
80,480
77,371
3,109
10,026
79,773
76,740
3,034
10,168
80,315
77,203
3,112
5,724
25,864
37,929
26,103
20,243
4,146
21,686
29,715
25,379
18,665
3,819
17,928
24,376
20,491
19,929
3,695
17,298
23,085
19,330
19,128
3,895
17,632
22,888
19,258
19,543
3,867
17,345
21,780
18,442
18,845
3,562
16,248
20,848
17,717
18,633
3,479
15,959
20,436
17,533
18,902
3,551
15,468
20,164
17,207
19,261
3,496
15,237
19,805
16,718
19,273
3,428
14,986
19,579
16,444
19,534
23,535
23,007
23,484
22,069
22,265
21,713
21,491
21,418
21,252
21,014
20,922
19
20
21
22
23
24 IRA/Keogh Plan deposits
BIF-INSURED SAVINGS B A N K S
3
25 Negotiable order of withdrawal accounts
26 Savings deposits
Personal
27
28
Nonpersonal
29
30
31
32
33
Interest-bearing time deposits with balances
of less than $100,000, by maturity
7 to 91 days
92 to 182 days
183 days to 1 year
More than 1 year to 2Vi years
More than 2n years
34 IRA/Keogh Plan accounts
1. Data in this table also appear in the Board's H.6 (508) Special Supplementary
Table monthly statistical release. For ordering address, see inside front cover.
Estimates are based on data collected by the Federal Reserve System from a
stratified random sample of about 460 commercial banks and 80 savings banks on
the last Wednesday of each period. Data are not seasonally adjusted and include
IRA/Keogh deposits and foriegn currency denominated deposits. Data exclude
retail repurchase agreements and deposits held in U.S. branches and agencies of
foreign banks.
2. Includes personal and nonpersonal money market deposits.
3. BIF-insured savings banks include both mutual and federal savings banks.
Monetary and Credit Aggregates
All
1.23 BANK DEBITS AND DEPOSIT TURNOVER 1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1993
1992
Bank group, or type of customer
1990 2
1991 2
19922
Oct.
DEBITS T O
Demand
deposits
1 All insured banks
2 Major N e w York City banks
3 Other banks
4 Other checkable deposits 4
5 Savings deposits including MMDAs
Nov.
Dec.
Jan.
Feb.
Mar.
Seasonally adjusted
277,157.5
131,699.1
145,458.4
277,758.0
137,352.3
140,405.7
315,806.1
165,572.7
150,233.5
326,893.0
176,372.6
150,520.4
322,187.1
173,393.4
148,793.7
331,038.8
176,089.1
154,949.8
300,654.9*
159,192.4 r
141,462.4 r
331,183.5 r
176,683.5
154,500^
331,040.2
166,866.6
164,173.5
3,349.0
3,483.3
3,645.5
3,266.1
3,788.1
3,331.3
3,700.5
3,468.2
3,610.0
3,497.2
3,683.9
3,407.3
3,292.3 r
3,032.3
3,601.3 r
3,363.3
3,572.8
3,562.7
797.8
3,819.8
464.9
803.5
4,270.8
447.9
832.4
4,797.9
435.9
818.9
4,855.5
414.8
796.1
4,624.0
405.2
830.5
4,693.3
429.1
746.6 r
4,154.7
388.3
817.5
4,525.8
422.0
811.4
4,129.1
446.6
16.5
6.2
16.2
5.3
14.4
4.7
13.5
4.7
12.9
4.7
13.1
4.6
11.6
4.1
12.6
4.5
12.5
4.8
DEPOSIT T U R N O V E R
Demand
deposits3
6 All insured banks
7 Major New York City banks
8 Other banks
9 Other checkable deposits 4
10 Savings deposits including MMDAs
DEBITS T O
Demand
deposits3
11 All insured banks
12 Major New York City banks
13 Other banks
14 Other checkable deposits 4
15 Savings deposits including MMDAs 3
Not seasonally adjusted
277,290.5
131,784.7
145,505.8
277,715.4
137,307.2
140,408.3
315,808.2
165,595.0
150,213.3
335,289.0
182,584.2
152,704.8
308,015.6
167,578.4
140,437.2
340,982.1
179,987.6
160,994.5
304,813.5 r
159,198.8
145,614.7 r
303,672.3 r
161,174.1
142,498.2r
339,186.6
170,855.0
168,331.6
3,346.7
3,483.0
3,645.6
3,267.7
3,788.1
3,329.0
3,689.7
3,403.2
3,351.3
3,240.4
3,849.3
3,588.0
3,248.7 r
3,296.6 r
3,080.3
3,630.5
3,529.1
798.2
3,825.9
465.0
803.4
4,274.3
447.9
832.5
4,803.5
436.0
839.2
5,025.6
420.5
754.3
4,494.4
378.5
815.2
4,418.1
426.5
738.3
3,936.3
391.0
771.9
4,213.4
401.2
854.5
4,385.4
470.2
16.4
6.2
16.2
5.3
14.4
4.7
13.7
4.6
12.1
4.4
13.5
4.8
12.4
4.4
11.6
4.1
12.6
4.7
DEPOSIT T U R N O V E R
Demand
deposits3
16 All insured banks
17 Major New York City banks
18 Other banks
19 Other checkable deposits 4
20 Savings deposits including MMDAs
1. Historical tables containing revised data for earlier periods can be obtained
from the Banking and Money Market Statistics Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, DC
20551.
Data in this table also appear on the Board's G.6 (406) monthly statistical
release. For ordering 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 (NOWs) and
accounts authorized for automatic transfer to demand deposits (ATSs).
5. Money market deposit accounts.
A18
D o m e s t i c Financial Statistics •
1.24 LOANS AND SECURITIES
A u g u s t 1993
All Commercial Banks1
Billions of dollars, averages of Wednesday figures
1992
1993
Item
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb. r
Mar.
Apr. r
May
Seasonally adjusted
1 Total loans and securities1
2 U.S. government securities
3 Other securities
4 Total loans and leases 1
5
Commercial and industrial . . . . .
6
Bankers acceptances h e l d 2 . . .
7
Other commercial and
industrial
8
U.S. addressees
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
IV Foreign official institutions
18 Lease-financing receivables
19 All other loans
2,882.8
2,886.9
2,902.2
2,917.4
2,926.0
2,932.4
2,937.6
2,933.4 r
2,937.7
2,951.2 r
2,963.4
2,985.4
610.7
175.8
2,096.2
604.6
6.3
619.2
177.9
2,089.8
602.5
6.5
632.6
178.2
2,091.4
601.4
6.5
640.6
178.2
2,098.6
601.2
6.3
647.3
178.8
2,099.8
600.8
7.5
651.4
177.3
2,103.8
600.5
7.9
657.1
176.0
2,104.6r
597.6
7.8
656.9
174.0
2,102.4r
598. l r
7.5 r
667.3
175.2
2,095.2
596.1
8.7
681.7
177.0
2,092.6r
592.5
8.9 r
691.6
178.3
2,093.5
589.9
9.0
694.2
179.5
2,111.7
592.8
9.6
598.4
588.3
10.1
881.8
359.0
63.3
596.0
585.3
10.7
881.5
358.6
60.5
594.9
584.3
10.6
883.1
357.4
61.6
594.9
583.6
11.3
886.8
357.0
64.0
593.3
582.6
10.7
890.7
355.8
64.7
592.6
582.3
10.3
892.5
355.4
64.2
589.9
580.2
9.7
892.4
355.5
64.8
590.6r
sso^
9.7
889.9r
358.2
63.0
587.4
577.6
9.8
887.8
360.4
61.7
583.6r
573.4r
10.1
888.2r
360.9
62.5
580.9
571.1
9.7
887.5
364.2
60.7
583.2
573.6
9.6
893.7
366.8
66.8
42.4
34.6
41.5
34.9
42.0
35.3
44.0
35.2
43.9
35.1
44.7
35.2
43.6
35.0
44.9
34.5
44.7
34.3
44.5
34.0r
45.3
34.0
45.9
34.1
26.8
7.5
2.0
31.0
43.3
26.2
7.7
2.2
30.8
43.2
25.9
7.2
2.3
30.8
44.3
25.8
7.9
2.5
31.0
43.2
25.4
7.6
2.4
30.8
42.6
25.1
7.5
2.8
30.9
45.0
24.8
7.7
2.8
30.9
49.5
24.2
7.7
2.8
30.3
48.8
23.7
8.5
3.0
30.4
44.5
23.4
8.1
2.9
30.3
45.3
23.1
8.0
2.9
30.4
47.6
23.3
8.1
2.8
30.7
46.7
Not seasonally adjusted
20 Total loans and securities1
2,882.9
2,876.1
2,894.5
2,914.9
2,925.2
2,939.0
2,947.4r
2,935.5 r
2,940.5
2,955.0 r
2,965.0
2,980.3
21 U.S. government securities
22 Other securities
23 Total loans and leases
24
Commercial and industrial . . . . .
25
Bankers acceptances h e l d 2 . . .
Other commercial and
26
industrial
27
U.S. addressees 3
Non-U.S. addressees 3
28
29 Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33 Agricultural
34
State and political
subdivisions
35
Foreign banks
Foreign official institutions
36
37
Lease-financing receivables . . . .
All other loans
38
608.9
175.4
2,098.7
606.5
6.2
615.3
176.8
2,084.0
601.5
6.3
631.3
178.1
2,085.0
597.6
6.3
638.7
177.9
2,098.3
597.6
6.2
645.1
179.2
2,100.9
598.4
7.4
654.1
178.3
2,106.6
600.8
8.2
655.8
176.2
2,115.4
600.6
8.0
657.3
174.6
2,103.6r
596.5r
i.r
670.9
175.4
2,094.2
595.3
9.1
687.4
176.6r
2,090.9r
595.7
9.0 r
693.4
177.7
2,093.9
592.9
8.9
693.2
179.0
2,108.2
594.6
9.5
600.3
589.5
10.8
882.0
357.2
63.5
595.2
584.2
11.0
881.6
356.4
58.0
591.4
580.5
10.8
883.7
356.9
59.4
591.4
580.3
11.1
887.6
358.6
62.5
591.0
580.7
10.3
891.5
356.2
64.2
592.6
582.8
9.8
893.9
356.3
63.5
592.5
583.0
9.5
893.7r
360.0
65.5
588^
579.2r
9.6
889.6r
362.3
64.5
586.2
576.3
9.8
886.0
360.4
64.7
586.6r
576.7r
10.0
885.6r
358.5r
64.6
584.0
574.2
9.8
886.4
361.6
64.0
585.1
575.5
9.6
893.7
365.0
63.8
42.9
35.1
41.3
35.8
41.8
36.5
43.5
36.7
43.5
36.1
45.0
35.2
45.6
34.8
45.1
33.6r
44.6
33.0
44.2 r
32.7r
44.7
33.2
45.3
33.7
26.8
7.3
2.0
31.0
44.4
26.1
7.8
2.2
30.6
42.6
25.9
7.0
2.3
30.6
43.2
25.9
8.1
2.5
30.8
44.6
25.5
7.8
2.4
30.8
44.4
25.2
7.8
2.8
30.8
45.4
24.8
8.2
2.8
30.9
48.6
24.0
7.7
2.8
30.7
46.6
23.6
8.4
3.0
30.6
44.7
23.5r
7.8
2.9
30.5
45.0
23.1
7.7
2.9
30.5
47.1
23.3
7.9
2.8
30.7
47.3
1. Adjusted to exclude loans to commercial banks in the United States.
2. Includes nonfinancial commercial paper held.
3. United States includes the fifty states and the District of Columbia.
Commercial Banking Institutions
A19
1.25 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Billions of dollars, monthly averages
1992
1993
Source of funds
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
r
Feb.
Mar.
Apr.
May
Seasonally adjusted
1 Total nondeposit funds 2
2 N e t balances due to related foreign offices . . .
3 Borrowings from other than commercial banks
in United States 4
4
Domestically chartered banks
5
Foreign-related banks
295.9
61.2
297.0
61.7
302.5
61.4
309.5
64.0
304.6
63.8
308.4
68.1
312.0
71.8
310.8
74.1
309.8 r
73.3
319.7
79. l r
328.3 r
88.3
324.0
83.1
234.7
147.6
87.2
235.3
147.2
88.1
241.1
151.6
89.6
245.6
153.5
92.1
240.9
154.7
86.2
240.2
153.9
86.3
240.2
154.7
85.5
236.7
155.1
81.6
236.5 r
155.6
80^
240.6 r
159.8
80.8 r
240.C
164.3
75.6
240.9
162.5
78.5
Not seasonally adjusted
6 Total nondeposit funds 2
7 Net balances due to related foreign offices . . .
8
Domestically chartered banks
9
Foreign-related banks
10 Borrowings from other than commercial banks
in United States 4
11
Domestically chartered banks
12
Federal funds and security RP
borrowings
13
Other
14
Foreign-related banks 6
295.2
59.2
-6.3
65.6
291.5
58.4
-7.0
65.4
297.6
57.6
-9.3
66.9
304.1
61.6
-11.0
72.6
306.9
64.9
-13.4
78.3
313.7
69.8
-12.6
82.4
311.9
75.9
-15.1
91.0
309.7
76.7
-15.8
92.5
314.1 r
75. l r
-10.6
85.7 r
324.5 r
79.8 r
-7.0
86.8 r
324.5 r
85.4
-9.5
94.9
328.7
85.3
-9.8
95.1
236.0
147.4
233.1
144.1
239.9
150.5
242.5
152.3
242.0
155.8
243.8
158.4
236.0
153.7
233.0
152.1
238.9 r
157.3
244.7 r
162.7
239.l r
162.3
243.4
164.0
143.3
4.1
88.6
140.0
4.2
89.0
146.6
3.9
89.5
148.5
3.8
90.1
152.3
3.6
86.1
154.3
4.1
85.5
149.7
4.0
82.3
148.5
3.6
80.9
154.1
3.2
81.6 r
159.3
3.3
82.0 r
158.9
3.5
76.8 r
160.3
3.7
79.4
393.3
394.9
387.7
387.4
385.8
387.1
383.2
383.6
375.7
374.9
371.3
371.1
366.5
365.5
359.9
358.0
358.4
358.0
355.7
356.5
355.0?
354.2 r
356.2
357.9
24.7
25.2
23.1
19.6
28.0
22.4
24.1
28.6
21.5
21.9
20.7
16.5
20.4
19.5
25.6
33.1
23.6
29.5
18.8
17.4
24.2
20.3
19.1
20.3
MEMO
Gross large time deposits
15 Seasonally adjusted
16 Not seasonally adjusted
U.S. Treasury demand balances
commercial
banks
17 Seasonally adjusted
18 Not seasonally adjusted
at
1. Commercial banks are nationally and state-chartered banks in the fifty states
and the District of Columbia, 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.
Data in this table also appear in the Board's G.10 (411) release. For ordering
address, see inside front cover.
2. Includes federal funds, repurchase agreements (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 o w n International Banking Facilities (IBFs).
4. Borrowings through any instrument, such as a promissory note or due bill,
given for the purpose of borrowing money for the banking 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. Figures are based on averages of daily data reported weekly by approximately 120 large banks and quarterly or annual data reported by other banks.
6. Figures are partly averages of daily data 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.
A20
DomesticNonfinancialStatistics • August 1993
1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS 1
Millions of dollars
Wednesday figures
1993
Account
Mar. 31 r
Apr. 7 r
Apr. 14r
Apr. 21 r
Apr. 28r
May 5
May 12
May 19
May 26
Assets
1 Loans and securities
2
Investment securities
3
U . S . government securities
4
Other
5
Trading account assets
6
U.S. government securities
7
Other securities
8
Other trading account assets
9
Total loans
10
Interbank loans
11
Loans excluding interbank
12
Commercial and industrial
13
Real estate
14
Revolving home equity
15
Other
16
Individual
17
All other
18 Total cash assets
19
Balances with Federal Reserve Banks
20
Cash in vault
21
Demand balances at U . S . depository institutions
22
Cash items
23
Other cash assets
24 Other assets
3,117,484
833,241
670,170
163,071
36,247
22,194
2,459
11,593
2,247,997
164,459
2,083,538
593,867
885,706
73,483
812,223
358,806
245,161
214,219
30,287
31,376
29,092
82,103
41,361
278,472
3,119,369
832,726
669,7%
162,930
39,174
25,351
2,369
11,453
2,247,470
156,340
2,091,130
592,319
885,206
73,364
811,842
358,893
254,712
206,290
28,422
29,656
29,551
77,123
41,538
276,391
3,122,119
832,509
668,080
164,429
39,447
25,269
2,248
11,930
2,250,163
157,064
2,093,099
590,589
886,720
73,637
813,083
360,521
255,269
217,384
32,645
32,289
30,921
81,815
39,714
274,472
3,106,482
832,192
668,480
163,712
38,119
24,855
2,334
10,930
2,236,171
141,480
2,094,692
594,013
884,933
74,031
810,902
362,284
253,461
203,367
25,760
32,038
29,395
75,381
40,794
269,984
3,106,722
829,265
665,163
164,103
40,102
26,031
2,573
11,498
2,237,355
143,466
2,093,889
593,8%
887,495
74,204
813,291
364,236
248,263
213,471
29,086
32,153
31,350
80,119
40,762
262,627
3,125,230
834,071
669,516
164,555
39,677
25,638
2,676
11,363
2,251,482
147,890
2,103,592
595,165
890,819
74,271
816,548
362,769
254,839
211,863
29,309
29,367
32,105
81,935
39,147
275,776
3,127,592
834,330
669,373
164,957
36,009
22,140
2,488
11,382
2,257,253
150,071
2,107,183
592,876
894,561
74,343
820,218
364,211
255,535
215,129
35,090
31,583
30,515
78,808
39,133
269,819
3,124,017
831,659
666,654
165,005
40,589
25,328
2,649
12,612
2,251,769
146,763
2,105,006
593,739
892,585
74,306
818,279
365,207
253,476
200,016
24,597
31,814
29,919
74,077
39,610
272,876
3,121,949
828,556
664,917
163,638
36,428
21,411
2,844
12,173
2,256,%5
151,016
2,105,949
593,938
893,546
74,402
819,144
366,840
251,626
217,049
38,281
32,623
30,733
74,862
40,550
267,484
25 Total assets
3,610,175
3,602,050
3,613,974
3,579,833
3,582,820
3,612,869
3,612,540
3,596,909
3,606,481
2,489,080
761,831
3,940
35,891
722,001
751,699
628,083
347,466
493,002
14,853
478,149
346,411
2,504,583
769,067
3,268
38,144
727,655
762,119
627,483
345,914
483,866
3,877
479,989
333,182
2,513,936
783,344
4,844
38,342
740,159
759,114
625,787
345,690
479,794
6,054
473,740
338,499
2,467,%3
746,886
4,768
37,387
704,730
748,149
623,299
349,629
494,746
32,986
461,760
335,255
2,476,114
755,143
3,852
39,306
711,986
748,800
622,395
349,776
490,654
24,738
465,916
336,771
2,511,258
774,452
3,564
40,204
730,684
760,924
621,824
354,058
488,721
18,546
470,175
330,988
2,499,013
761,148
3,011
38,471
719,666
764,031
621,093
352,742
490,769
14,143
476,626
339,079
2,479,234
748,091
3,134
37,900
707,058
758,956
619,714
352,473
500,705
16,619
484,086
333,652
2,483,275
753,730
3,333
38,912
711,485
758,574
618,621
352,351
497,978
14,737
483,241
342,6%
3,328,493
3,321,631
3,332,229
3,297,964
3,303,539
3,330,967
3,328,861
3,313,591
3,323,948
281,682
280,419
281,746
281,870
279,281
281,902
283,679
283,318
282,533
A L L C O M M E R C I A L B A N K I N G INSTITUTIONS
26
27
28
29
30
31
32
33
34
35
36
37
Liabilities
Total deposits
Transaction accounts
Demand, U.S. government
Demand, depository institutions
Other demand and all checkable deposits
Savings deposits (excluding checkable)
Small time deposits
Time deposits over $100,000
Borrowings
Treasury tax and loan notes
Other
Other liabilities
38 Total liabilities
39 Residual (assets less liabilities)
3
Footnotes appear on the following page.
2
Commercial Banking Institutions
1.26 ASSETS AND LIABILITIES OF COMMERCIAL BANKS 1
A21
Wednesday figures—Continued
Millions of dollars
1993
Mar. 31r
Apr. 7 r
Apr. 14r
Apr. 21 r
Apr. 28 r
May 5
May 12
May 19
May 26
Assets
40 Loans and securities
41
Investment securities
42
U.S. government securities
43
Other
44
Trading account assets
45
U . S . government securities
46
Other securities
47
Other trading account assets
48
Total loans
49
Interbank loans
50
Loans excluding interbank
51
Commercial and industrial
52
Real estate
53
Revolving home equity
54
Other
55
Individual
56
All other
57 Total cash assets
58
Balances with Federal Reserve Banks
59
Cash in vault
60
Demand balances at U.S. depository institutions .
61
Cash items
62
Other cash assets
63 Other assets
2,763,345
761,462
620,126
141,335
36,247
22,194
2,459
11,593
1,965,636
137,011
1,828,625
440,786
836,218
73,483
762,735
358,806
192,815
184,622
29,224
31,346
27,616
78,821
17,615
181,611
2,777,776
761,702
621,509
140,192
39,174
25,351
2,369
11,453
1,976,901
138,780
1,838,120
438,466
836,578
73,364
763,215
358,893
204,184
179,157
28,028
29,625
28,198
74,358
18,948
178,336
2,776,944
762,705
621,538
141,168
39,447
25,269
2,248
11,930
1,974,791
135,477
1,839,314
437,152
838,173
73,637
764,536
360,521
203,469
191,669
31,948
32,259
29,519
79,303
18,640
180,446
2,763,376
762,493
622,032
140,461
38,119
24,855
2,334
10,930
1,962,764
124,484
1,838,281
439,629
836,172
74,031
762,141
362,284
200,195
176,832
25,388
32,007
27,996
72,581
18,859
172,354
2,762,047
759,402
618,237
141,165
40,102
26,031
2,573
11,498
1,962,543
124,994
1,837,550
439,951
838,554
74,204
764,350
364,236
194,809
185,785
28,421
32,123
29,863
76,924
18,454
168,893
2,783,079
762,120
620,739
141,381
39,677
25,638
2,676
11,363
1,981,282
129,536
1,851,746
441,942
842,259
74,271
767,988
362,769
204,777
185,275
28,811
29,338
30,638
79,817
16,671
176,755
2,781,379
763,552
621,943
141,610
36,009
22,140
2,488
11,382
1,981,818
127,724
1,854,094
439,806
846,101
74,343
771,758
364,211
203,977
188,236
34,282
31,552
28,739
76,607
17,056
176,181
2,776,363
761,082
619,399
141,682
40,589
25,328
2,649
12,612
1,974,692
125,545
1,849,147
439,201
844,121
74,306
769,815
365,207
200,618
174,206
24,198
31,784
28,604
71,888
17,732
172,693
2,773,048
757,986
617,067
140,919
36,428
21,411
2,844
12,173
1,978,634
128,965
1,849,669
439,744
845,008
74,402
770,606
366,840
198,078
190,305
37,491
32,593
29,284
72,815
18,122
169,171
64 Total assets
3,129,578
3,135,269
3,149,058
3,112,562
3,116,725
3,145,109
3,145,796
3,123,262
3,132,523
Liabilities
65 Total deposits
66
Transaction accounts
67
Demand, U.S. government
68
Demand, depository institutions
69
Other demand and all checkable deposits
70
Savings deposits (excluding checkable)
71
Small time deposits
72
Time deposits over $100,000
73 Borrowings
74
Treasury tax and loan notes
75
Other
76
Other liabilities
2,334,487
748,871
3,939
32,934
711,997
747,496
625,919
212,202
372,084
14,853
357,231
144,543
2,358,352
757,742
3,267
35,267
719,208
757,934
625,358
217,318
364,968
3,877
361,091
134,748
2,367,664
772,226
4,843
35,446
731,936
754,980
623,671
216,788
367,835
6,054
361,781
135,031
2,318,659
735,995
4,768
34,677
696,551
744,015
621,187
217,462
382,485
32,986
349,499
132,766
2,323,627
742,097
3,851
36,450
701,796
744,735
620,282
216,513
380,823
24,738
356,085
136,212
2,358,090
763,584
3,564
37,416
722,605
756,681
619,661
218,164
370,358
18,546
351,812
137,977
2,346,099
749,245
3,011
35,679
710,555
759,703
618,984
218,167
378,554
14,143
364,411
140,682
2,326,351
737,496
3,133
35,106
699,257
754,661
617,597
216,596
380,760
16,619
364,141
136,050
2,329,703
742,595
3,333
36,113
703,149
754,272
616,520
216,316
383,117
14,737
368,380
140,388
77 Total liabilities
2,851,113
2,858,068
2,870,530
2,833,910
2,840,662
2,866,424
2,865,334
2,843,161
2,853,208
278,465
277,201
278,528
278,652
276,063
278,684
280,462
280,100
279,315
DOMESTICALLY CHARTERED COMMERCIAL BANKS
78
Residual (assets less liabilities)
3
4
1. Excludes assets and liabilities of International Banking Facilities.
2. Includes insured domestically chartered commercial banks, agencies and
branches of foreign banks, Edge Act and Agreement corporations, and New York
State foreign investment corporations. Data are estimates for the last Wednesday
of the month based on a sample of weekly reporting foreign-related and domestic
institutions and quarter-end condition reports.
3. This balancing item is not intended as a measure of equity capital for use in
capital adequacy analysis.
4. Includes all member banks and insured nonmember banks. Loans and
securities data are estimates for the last Wednesday of the month based on a
sample of weekly reporting banks and quarter-end condition reports.
A22
DomesticNonfinancialStatistics • August 1993
1.27 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
1993
Account
Mar. 31r
Apr. 7
Apr. 14
Apr. 21
Apr. 28"
May 5
May 12
May 19
May 26
ASSETS
1 Cash and balances due from depository institutions
? U.S. Treasury and government securities
Trading account
Investment account
4
Mortgage-backed securities 1
5
All others, by maturity
One year or less
6
One year through five years
7
More than five years
8
9 Other securities
Trading account
10
Investment account
11
State and political subdivisions, by maturity
1?
One year or less
N
More than one year
14
N
Other bonds, corporate stocks, and securities
16 Other trading account assets
105,518
283,624
18,987
264,637
83,464
103,803r
288,386"
22,606
265,780"
83,713 r
112,024
288,949"
22,858
266,091"
83,613"
101,677
289,088"
22,570
266,518"
83,941"
109,047
288,313
23,644
264,670
84,294
106,657
291,535
23,455
268,080
84,233
110,686
287,913
19,998
267,915
83,790
97,947
289,755
23,059
266,6%
81,635
113,587
284,649
19,204
265,445
81,844
41,264
74,339
65,570
57,081
2,276
54,805
20,026
3,392
16,634
34,779
11,470
41,062
74,397
66,608
55,847
2,187
53,660
19,861
3,375
16,486
33,799
11,331
40,838
74,691
66,949
55,899
2,063
53,837
19,880
3,402
16,478
33,957
11,805
41,560
74,542
66,474
55,726
2,151
53,575
19,879
3,394
16,484
40,625
73,936
65,815
56,106
2,389
53,717
19,928
3,426
16,503
33,789
11,376
42,278
73,679
67,889
55,817
2,492
53,325
19,774
3,407
16,367
33,551
11,240
43,229
73,868
67,028
55,843
2,303
53,540
19,807
3,451
16,356
33,733
11,258
45,156
73,788
66,117
55,8%
2,466
53,429
19,814
3,445
16,369
33,615
12,490
44,769
74,436
64,395
55,651
2,666
52,985
19,828
3,465
16,363
33,157
12,052
17 Federal funds sold 2
To commercial banks in the United States
18
19
To nonbank brokers and dealers
To others 3
70
71 Other loans and leases, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
74
75
U.S. addressees
76
Non-U.S. addressees
Real estate loans
78
Revolving, home equity
79
All other
30
To individuals for personal expenditures
31
To financial institutions
37
Commercial banks in the United States
33
Banks in foreign countries
Nonbank financial institutions
34
35
For purchasing and carrying securities
36
To finance agricultural production
To states and political subdivisions
37
38
To foreign governments and official institutions
39
All other loans
Lease-financing receivables
40
41 LESS: Unearned income
<
4?
Loan and lease reserve 5
43 Other loans and leases, net
44 Other assets
81,565
58,381
19,473
3,711
975,842
277,719
2,705
275,015
273,447
1,568
395,561
43,472
352,089
183,738
33,750
12,532
2,113
19,104
15,587
5,536
14,033
1,379
24,132
24,406
2,153
36,267
937,422
165,464
85,507
54,169
24,815
6,524
974,248 r
275,098 r
2,730
272,369"
270,8 l l r
1,557
395,939"
43,426"
352,513"
183,119"
35,028
12,622
2,623
19,783
15,382
5,576
13,881
1,438"
24,356"
24,430
2,134
36,166"
935,949"
164,345"
86,530
54,724
26,113
5,693
974,107"
273,822"
2,587
271,235"
269,662"
1,574
397,014"
43,560"
353,453"
183,854
33,832
12,203
2,309
19,320
17,349
5,632
13,848
1,378"
23,010"
24,368
2,142
36,207"
935,759"
167,773"
84,493"
52,351
26,806
5,336"
971,688"
275,204"
2,626
271,003"
1,574
394,560"
43,827"
350,733"
183,979
33,272
12,029
2,242
19,001
16,511
5,545
13,800
1,352"
23,099"
24,365"
2,132
35,962"
933,594"
161,585"
81,028
54,691
21,965
4,372
975,162
275,584
3,079
272,505
270,950
1,555
396,028
43,905
352,124
184,767
34,761
12,292
2,850
19,619
15,627
5,599
13,798
1,418
23,102
24,477
2,110
35,946
937,106
157,827
86,252
53,820
26,538
5,893
978,471
277,589
3,090
274,499
272,902
1,597
395,589
43,827
351,762
185,367
35,189
12,072
2,385
20,731
16,104
5,648
13,777
1,522
23,144
24,541
2,084
36,447
939,940
164,273
85,374
53,475
26,228
5,670
980,069
275,7%
3,045
272,751
271,184
1,567
397,977
43,819
354,158
185,627
34,854
11,954
2,431
20,470
16,832
5,639
13,671
1,380
23,749
24,545
2,086
36,384
941,599
164,709
81,413
52,407
24,746
4,259
978,%7
275,350
3,079
272,271
270,766
1,505
395,771
43,824
351,947
186,093
35,793
13,153
2,629
20,011
16,706
5,688
14,082
1,344
23,568
24,574
2,094
36,401
940,472
162,125
81,305
55,686
20,464
5,156
982,227
275,882
3,134
272,748
271,161
1,587
3%, 100
43,876
352,224
186,766
36,703
13,863
2,479
20,361
16,556
5,6%
14,053
1,339
24,443
24,689
2,084
36,313
943,831
159,513
1,645,169" 1,658,740* l,636,971 r
1,640,803
1,655,713
1,657,381
1,640,097
1,650,588
n
n
71
45 Total assets
Footnotes appear on the following page.
1,642,145
33,696
10,808
212,SIT
Weekly Reporting Commercial Banks
A23
1.27 ASSETS A N D LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures
1993
Mar. 3
Mar. 10
Mar. 17
Mar. 24
Mar. 31
Apr. 7
Apr. 14
Apr. 21
Apr. 28
1,115,325
265,665
216,112
49,553
8,847
2,094
22,182
5,811
556
10,062
1,102,172
254,792
209,423
45,369
8,576
1,835
20,511
4,742
858
8,847
118,168
729,212
703,570
25,642
21,067
2,026
1,105,409
261,522
212,680
48,841
8,759
1,694
21,394
5,715
739
10,540
117,506
726,381
701,123
25,258
20,694
2,026
2,198
340
1,091,129
253,854
205,103
48,751
8,805
2,138
20,554
6,014
810
10,429
116,245
721,031
695,940
25,091
20,475
2,082
2,192
342
1,102,700
268,676
221,836
46,840
8,890
2,348
20,344
5,083
712
9,463
119,216
714,808
692,253
22,555
20,135
487
1,597
336
1,118,197
269,672
221,314
48,358
8,371
2,048
22,061
4,929
1,177
9,772
122,088
726,437
703,150
23,287
20,505
492
1,959
332
1,126,046
279,815
230,135
49,680
8,727
3,343
21,916
4,962
687
10,046
122,233
723,997
700,939
23,059
20,244
495
1,984
336
1,095,332
260,009
211,735
48,274
8,997
3,590
21,536
4,884
646
8,622
118,945
716,378
691,4%
24,882
20,342
2,199
2,008
333
1,101,516
272,103
220,685
51,418
9,216
2,737
23,068
4,821
613
10,963
114,964
714,449
689,953
24,496
20,467
1,603
2,094
332
282,774
860
17,789
264,126
278,849
281,319
707
11,624
268,988
277,492
281,962
292,386
288,465
2,830
274,662
4,370
277,593
28,877
263,508
22,356
266,108
LIABILITIES
46 Deposits
47
Demand deposits
48
Individuals, partnerships, and corporations
49
Other holders
50
States and political subdivisions
51
U.S. government
52
Depository institutions in the United States . . .
53
Banks in foreign countries
54
Foreign governments and official institutions . .
55
Certified and officers' checks
56
Transaction balances other than demand deposits 4 .
57
Nontransaction balances
58
Individuals, partnerships, and corporations
59
Other holders
60
States and political subdivisions
61
U.S. government
62
Depository institutions in the United States . . .
63
Foreign governments, official institutions, and banks .
5
64 Liabilities for borrowed money
65
Borrowings from Federal Reserve Banks
66
Treasury tax and loan notes
67
Other liabilities for borrowed money®
68 Other liabilities (including subordinated notes and
debentures)
69 Total liabilities
70 Residual (total assets less total liabilities) 7
MEMO
71
72
73
74
75
76
77
Total loans and leases, gross, adjusted, plus securities
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates 9
Commercial and industrial
Other
Foreign branch credit extended to U.S. r e s i d e n t s ' " . . .
Net due to related institutions abroad
121,220
728,441
702,551
25,890
21,415
2,040
2,103
332
283,979
35
4,476
279,467
2,218
332
273,186
0
6,461
266,725
0
0
0
0
105,653
106,525
104,691
103,273
112,270
103,767
103,842
101,553
103,728
1,504,958
1,481,883
1,492,875
1,473,251
1,496,290
1,499,455
1,511,850
1,489,271
1,493,708
142,635
142,849
142,942
143,630
145,138
145,341
146,531
146,961
146,241
1,347,927
113,729
898
453
446
23,407
-8,870
1,343,950
112,598
897
452
445
23,846
-10,560
1,349,673
111,983
1,338,923
110,167
893
449
444
23,150
-10,070
1,338,398
104,128
869
447
422
23,225
-12,328
1,348,509
108,678
876
447
429
23,227
-13,221
1,350,343
108,431
875
447
429
23,321
-16,158
1,346,841
109,441
875
447
429
23,464
-12,016
1,345,033
108,087
872
443
428
23,333
-8,995
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 negotiable order of withdrawal accounts (NOWs), automatic transfer service (ATS), and telephone and preauthorized transfers of 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.
0
12,658
266,191
8
%
451
445
23,850
-8,945
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.
N O T E . Data that formerly appeared in table 1.28, Assets and Liabilities of Large
Weekly Reporting Commercial Banks in New York City, can be obtained from the
Board's H.4.2 (504) weekly statistical release. For ordering address, see inside
front cover.
A24
1.28
DomesticNonfinancialStatistics • August 1993
LARGE WEEKLY REPORTING U.S. BRANCHES A N D AGENCIES OF FOREIGN BANKS
Liabilities1
Assets and
Millions of dollars, Wednesday figures
1993
Account
Mar. 31 r
1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities
4 Federal funds sold
5
To commercial banks in the United States . . .
6
Toothers2
7 Other loans and leases, gross
8
Commercial and industrial
9
Bankers acceptances and commercial
paper
10
All other
11
U.S. addressees
Non-U.S. addressees
1?
Loans secured by real estate
n
14
To financial institutions
Commercial banks in the United States..
15
16
Banks in foreign countries
Nonbank financial institutions
17
18
For purchasing and carrying securities
19
To foreign governments and official
institutions
70
All other
21 Other assets (claims on nonrelated parties) . .
22 Total assets 3
73 Deposits or credit balances due to other
than directly related institutions
74 Demand deposits
Individuals, partnerships, and
25
corporations
?6
Other
27 Nontransaction accounts
78
Individuals, partnerships, and
corporations
79
Other
30 Borrowings from other than directly
related institutions
31 Federal funds purchased
From commercial banks in the
V,
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 liabilities 6
Apr. 7 r
Apr. 14r
Apr. 21 r
Apr. 28 r
May 5
May 12
May 19
May 26
19,477
17,756
16,838
17,317
18,063
17,361
17,608
16,845
17,458
31,493
8,420
23,044
8,710
14,334
160,773
95,548
30,341
8,795
18,667
4,110
14,556
158,669
95,831
29,275
9,017
21,235
5,984
15,251
158,915
95,741
29,146
8,976
19,330
3,445
15,884
159,902
95,939
29,553
8,855
19,858
4,293
15,565
160,113
95,654
30,723
8,966
18,481
3,872
14,609
158,158
95,464
29,924
9,050
20,572
5,889
14,683
159,557
95,866
29,750
9,026
21,077
5,341
15,736
160,264
96,609
30,099
8,781
22,557
5,585
16,973
159,500
96,388
2,538
93,010
89,730
3,280
32,843
25,568
4,935
1,871
18,763
3,809
2,684
93,147
89,807
3,340
32,217
24,803
4,973
1,802
18,029
2,718
2,466
93,275
90,019
3,256
32,226
24,226
4,914
1,822
17,490
3,513
2,444
93,494
90,188
3,306
32,277
25,468
5,056
1,659
18,754
3,008
2,494
93,160
89,849
3,311
32,399
25,512
4,981
1,680
18,851
3,264
2,549
92,915
89,679
3,236
32,202
23,865
5,360
1,732
16,773
3,375
2,474
93,392
90,051
3,342
32,091
24,943
5,392
1,722
17,828
3,533
2,612
93,997
90,569
3,428
32,043
25,130
5,268
1,740
18,122
3,491
2,594
93,794
90,516
3,278
32,057
25,083
5,453
1,810
17,821
2,965
368
2,637
33,860
364
2,735
31,571
406
2,803
32,088
388
2,821
31,875
382
2,902
32,012
389
2,862
33,308
372
2,753
31,964
340
2,651
31,769
375
2,630
32,125
306,177
297,943
296,670
298,250
296,965
297,935
297,323
301,790
301,975
102,844
4,934
97,042
4,137
97,249
4,099
99,311
3,963
101,357
5,008
101,440
3,961
101,271
4,396
101,527
3,829
102,538
4,130
3,413
1,521
97,910
2,945
1,192
92,905
3,182
918
93,150
3,052
911
95,348
3,533
1,476
96,349
3,134
827
97,479
3,111
1,285
96,875
3,056
774
97,698
3,332
798
98,408
67,973
29,937
65,569
27,336
65,287
27,863
67,111
28,238
67,247
29,102
68,601
28,878
68,173
28,702
68,175
29,523
68,352
30,057
86,400
45,283
85,897
49,938
81,727
45,816
81,999
42,625
79,666
39,287
85,582
44,173
81,673
39,990
86,786
42,050
82,644
38,777
18,704
26,579
41,117
17,405
32,533
35,959
13,751
32,065
35,912
12,841
29,783
39,375
12,057
27,230
40,379
13,997
30,176
41,409
11,530
28,460
41,683
13,393
28,657
44,735
13,528
25,249
43,867
8,886
32,231
32,619
7,924
28,035
30,456
7,077
28,835
30,249
7,018
32,357
30,529
7,584
32,795
30,624
7,363
34,046
30,691
6,871
34,812
31,295
7,533
37,202
30,095
8,064
35,803
30,533
306,177
297,943
296,670
298,250
296,965
297,935
297,323
301,790
301,975
210,085
55,203
207,388
52,404
207,543
58,141
208,852
54,706
209,105
56,808
207,096
49,283
207,822
54,437
209,507
50,323
209,900
54,806
MEMO
39 Total loans (gross) and securities, adjusted . .
40 Net due to related institutions abroad
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 " d u e f r o m " position.
4. Includes other transaction deposits.
5. Includes securities sold under agreements to repurchase.
6. Includes net to related institutions abroad for U.S. branches and agencies of
foreign banks having a net " d u e t o " position.
7. Excludes loans to and federal funds transactions with commercial banks in
the United States.
Financial Markets A25
1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1992
Year ending December
1993
Item
1988
1989
1990
1991
1992
Nov.
Dec.
Jan. r
Feb. r
Mar. r
Apr.
Commercial paper (seasonally adjusted unless noted otherwise)
458,464
2
3
4
5
Financial companies 1
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper
Total
Bank-related (not seasonally
adjusted)
525,831
562,656
531,724
549,433
558,414
549,433
540,191
527,529
534,116
535,971
159,777
1 All issuers
183,622
214,706
213,823
228,260
230,966
228,260
213,049
202,126
219,076
210,317
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
210,930
200,036
183,379
172,813
179,279
172,813
181,264
177,370
171,959
175,384
1,248
194,931
43,155
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
103,756
6 Nonfinancial companies 5
131,279
147,914
134,522
148,360
148,169
148,360
145,878
148,033
143,081
150,270
Bankers dollar acceptances (not seasonally adjusted) 6
66,631
8
9
10
11
12
43,770
38,200r
37,664r
38,W
36,001
35,221
34,939
35,317
9,433
8,510
924
9,017
7,930
1,087
11,017
9,347
1,670
10,561r
9,103r
1,458
10,314r
9,169r
1,145
10,561r
9,103r
1,458
9,121
7,927
1,193
9,878
8,361
1,516
11,036
9,162
1,873
10,582
9,232
1,350
1,066
52,473
918
44,836
1,739
31,014
1,276
26,364
1,289
26,061
1,276
26,364
1,317
25,563
1,169
24,175
1,108
22,795
909
23,826
14,984
14,410
37,237
Basis
n Imports into United States
14 Exports from United States
15 All other
54,771
1,493
56,052
Holder
Accepting banks
Own bills
Bills bought from other banks
Federal Reserve Banks
Foreign correspondents
Others
62,972
9,086
8,022
1,064
7 Total
15,651
13,683
33,638
13,095
12,703
28,973
12,843
10,351
20,577
12,212r
8,096
17,893r
12,135r
7,673
17,856r
12,212r
8,0%
17,893r
11,148
7,740
17,112
11,126
7,547
16,548
11,129
7,304
16,506
10,746
7,629
16,942
1. Institutions engaged primarily in 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. Bank-related series were discontinued in January 1989.
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. Data on bankers acceptances are gathered from approximately 100 institutions. The reporting group is revised every January.
7. In 1977 the Federal Reserve discontinued operations in bankers acceptances
for its own account.
1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans1
Percent per year
Average
rate
Average
rate
10.50
10.00
9.50
9.00
8.50
8.00
7.50
6.50
6.00
1990
1991
1992
10.01
8.46
6.25
1990- - Jan. .
Feb.
Mar.
Apr.
May
June
July .
Aug.
Sept.
Oct.
Nov.
Dec.
10.11
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
1. Data in this table also appear in the Board's H.15 (519) weekly and G.13
(415) monthly statistical releases. For ordering address, see inside front cover.
1991—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ..
June ..
July ...
Aug. ..
Sept. .
Oct. ..
Nov. .
Dec. ..
9.52
9.05
9.00
9.00
8.50
8.50
8.50
8.50
8.20
8.00
7.58
7.21
1992—Jan. ...
Feb. ..
Mar. ..
Apr. ..
May ..
June ..
July ...
Aug. ..
Sept. .
Oct. ..
Nov. .
Dec.
1993—Jan. .
Feb.
Mar.
Apr.
May
June
A26
1.35
DomesticNonfinancialStatistics • August 1993
INTEREST RATES Money and Capital Markets
Averages, percent per year; weekly, monthly, and annual figures are averages of business day data unless otherwise noted
1993
Item
1990
1991
1993, week ending
1992
Feb.
Mar.
Apr.
May
Apr. 30
May 7
May 14
May 21
May 28
M O N E Y M A R K E T INSTRUMENTS
1 Federal funds 1 , 2 , 3
r
2 Discount window borrowing^
8.10
6.98
5.69
5.45
3.52
3.25
3.03
3.00
3.07
3.00
2.96
3.00
3.00
3.00
2.87
3.00
2.98
3.00
2.90
3.00
3.01
3.00
3.07
3.00
8.15
8.06
7.95
5.89
5.87
5.85
3.71
3.75
3.80
3.14
3.18
3.27
3.15
3.17
3.24
3.13
3.14
3.19
3.11
3.14
3.20
3.10
3.11
3.16
3.08
3.10
3.13
3.09
3.11
3.14
3.11
3.15
3.22
3.15
3.19
3.30
8.00
7.87
7.53
5.73
5.71
5.60
3.62
3.65
3.63
3.18
3.27
3.21
3.15
3.17
3.14
3.06
3.06
3.07
3.05
3.07
3.07
3.03
3.04
3.05
3.02
3.03
3.04
3.03
3.05
3.05
3.05
3.08
3.07
3.09
3.13
3.13
7.93
7.80
5.70
5.67
3.62
3.67
3.06
3.15
3.07
3.14
3.05
3.10
3.06
3.13
3.04
3.09
3.03
3.07
3.04
3.08
3.07
3.15
3.12
3.23
8.15
8.15
8.17
5.82
5.83
5.91
3.64
3.68
3.76
3.08
3.12
3.22
3.10
3.11
3.20
3.08
3.09
3.16
3.07
3.10
3.20
3.06
3.08
3.14
3.04
3.06
3.12
3.06
3.07
3.14
3.08
3.12
3.23
3.10
3.16
3.29
8.16
5.86
3.70
3.12
3.11
3.10
3.12
3.06
3.06
3.08
3.13
3.20
7.50
7.46
7.35
5.38
5.44
5.52
3.43
3.54
3.71
2.93
3.07
3.25
2.95
3.05
3.20
2.87
2.97
3.11
2.96
3.07
3.23
2.91
2.98
3.12
2.87
2.97
3.11
2.91
3.01
3.14
2.99
3.09
3.26
3.06
3.20
3.39
7.51
7.47
7.36
5.42
5.49
5.54
3.45
3.57
3.75
2.95
3.08
3.32
2.97
3.08
3.09
2.89
3.00
3.24
2.%
3.07
3.13
2.88
2.95
n.a.
2.88
2.98
3.13
2.89
2.99
n.a.
3.00
3.10
n.a.
3.06
3.19
n.a.
7.89
8.16
8.26
8.37
8.52
8.55
8.61
5.86
6.49
6.82
7.37
7.68
7.86
8.14
3.89
4.77
5.30
6.19
6.63
7.01
7.67
3.39
4.10
4.58
5.43
5.87
6.26
7.09
3.33
3.95
4.40
5.19
5.66
5.98
6.82
3.24
3.84
4.30
5.13
5.59
5.97
6.85
3.36
3.98
4.40
5.20
5.66
6.04
6.92
3.25
3.83
4.30
5.14
5.60
6.01
6.89
3.23
3.78
4.24
5.05
5.53
5.92
6.83
3.27
3.86
4.30
5.10
5.58
5.96
6.88
3.40
4.07
4.48
5.28
5.74
6.12
7.00
3.55
4.21
4.60
5.36
5.78
6.14
6.97
8.74
8.16
7.52
6.89
6.65
6.64
6.68
6.66
6.58
6.62
6.76
6.75
6.96
7.29
7.27
6.56
6.99
6.92
6.09
6.48
6.44
5.61
5.98
5.87
5.42
5.81
5.64
5.47
5.88
5.76
n.a.
n.a.
5.73
5.38
5.79
5.75
5.35
5.76
5.71
5.42
5.82
5.69
5.45
5.86
5.77
5.66
6.09
5.73
9.77
9.23
8.55
8.01
7.83
7.76
7.78
7.74
7.71
7.75
7.84
7.82
33
34 Aa
35 A
36 Baa
9.32
9.56
9.82
10.36
8.77
9.05
9.30
9.80
8.14
8.46
8.62
8.98
7.71
7.90
8.03
8.39
7.58
7.72
7.86
8.15
7.46
7.62
7.80
8.14
7.43
7.61
7.85
8.21
7.40
7.59
7.80
8.15
7.37
7.55
7.77
8.13
7.41
7.59
7.82
8.18
7.48
7.67
7.91
8.28
7.46
7.64
7.89
8.27
37 A-rated, recently offered utility bonds 16
10.01
9.32
8.52
7.80
7.61
7.66
7.75
7.76
7.67
7.74
7.84
7.77
8.%
3.61
8.17
3.25
7.46
2.99
7.37
2.81
6.70
2.76
6.69
2.82
6.65
2.77
6.67
2.86
6.61
2.82
6.64
2.82
6.78
2.80
6.74
2.77
paper3,5,6
3
4
5
Commercial
1-month
3-month
6-month
6
7
8
Finance paper, directly
1-month
3-month
6-month
9
10
placed1,5,1
Bankers
acceptances3,5,8
3-month
6-month
Certificates of deposit,
marker•
1-month
11
12
3-month
6-month
13
secondary
14 Eurodollar deposits, 3-month 3 , 1 0
U.S. Treasury bills
Secondary market •
3-month
6-month
1-year
Auction average ' '
18
3-month
19
6-month
1-year
20
15
16
17
U.S. TREASURY NOTES A N D B O N D S
7,1
22
23
74
25
26
27
Constant
maturities12
1-year
2-year
3-year
5-year
7-year
10-year
30-year
Composite
28 More than 10 years (long-term)
STATE A N D L O C A L NOTES A N D B O N D S
Moody's
series13
29
30 Baa
31 Bond Buyer series
CORPORATE BONDS
32 Seasoned issues, all industries 15
Rating
group
MEMO
Dividend-price
ratio
38 Preferred stocks
39 Common stocks
1. The daily effective federal funds rate is a weighted average of rates on
trades through New York brokers.
2. Weekly figures are averages of seven 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. Data are for
indication purposes only.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.
12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. General obligations based on Thursday figures; Moody's Investors Service.
14. General obligations only, with twenty years to maturity, issued by twenty
state and local governmental units of mixed quality. Based on figures for
Thursday.
15. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently offered, A-rated utility bonds with a thirty-year maturity and five
years of call protection. Weekly data are based on Friday quotations.
17. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
N O T E . These data also appear in the Board's H . 15 (519) and G. 13 (415) releases.
For ordering address, see inside front cover.
Financial Markets
1.36 STOCK MARKET
All
Selected Statistics
1992
Indicator
1990
1991
1993
1992
Sept.
Nov.
Oct.
Dec.
Jan.
Mar.
Feb.
Apr.
May
Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
Industrial
2
3 Transportation
Utility
4
Finance
5
183.66
226.06
158.80
90.72
133.21
206.35
258.16
173.97
92.64
150.84
229.00
284.26
201.02
99.48
179.29
230.13
285.76
191.61
102.26
178.27
226.97
279.70
192.30
101.62
181.36
232.84
287.80
204.63
101.13
189.27
239.47
290.77
212.35
103.85
196.87
239.75
292.11
221.00
105.52
203.38
243.41
294.40
226.96
109.45
209.93
248.12
298.75
229.42
112.53
217.01
244.72
292.19
237.97
113.78
216.02
246.02
297.83
237.80
111.21
209.40
6 Standard & Poor's Corporation
(1941-43 = 10)'
335.01
376.20
415.75
418.48
412.50
422.84
435.64
435.40
441.76
450.15
443.08
445.25
7 American Stock Exchange
(Aug. 31, 1973 = 50?
338.32
360.32
391.28
382.67
371.27
387.75
392.69
402.75
409.39
418.56
418.54
429.72
156,359
13,155
179,411
12,486
202,558
14,171
191,774
11,198
204,787
11,966
208,221
14,925
222,736
16,523
266,011
17,184
288,540
18,154
251,170
16,150
279,778
15,521
255,843
20,433
-
Volume of trading (thousands of shares)
8 New York Stock Exchange
9 American Stock Exchange
Customer financing (millions of dollars, end-of-period balances)
10 Margin credit at broker-dealers 3
28,210
36,660
43,990
41,250
41,590
43,630
43,990
44,020
44,290
45,160
47,420
48,630
Free credit balances at brokers4
11 Margin accounts
12 Cash accounts
8,050
19,285
8,290
19,255
8,970
22,510
8,060
19,650
8,355
18,700
8,500
19,310
8,970
22,510
8,980
20,360
9,790
22,190
9,650
21,395
9,805
21,450
9,560
21,610
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
70
50
70
80
60
80
65
50
65
55
50
55
65
50
65
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. On July 5, 1983, the American Stock Exchange rebased its index, effectively
cutting previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at brokerdealers has included credit extended against stocks, convertible bonds, stocks
acquired through the 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 amounts in accounts with no unfulfilled commitments to brokers and are subject to withdrawal by customers on demand.
5. New series since June 1984.
6. These requirements, stated in regulations adopted by the Board of Governors pursuant to the Securities Exchange Act of 1934, limit the amount of credit
that can be used to purchase and carry "margin securities" (as defined in the
regulations) when such credit is collateralized by securities. Margin requirements
Jan. 3, 1974
50
50
50
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.
Effective June 8, 1988, margins were set to be the price of the option plus 20
percent of the market value of the stock underlying the option (or 15 percent in the
case of stock-index options).
A28
1.37
DomesticNonfinancialStatistics • August 1993
Selected Assets and Liabilities1
SELECTED FINANCIAL INSTITUTIONS
Millions of dollars, end of period
1992
Account
1990
1993
1991
June
July
Aug.
Sept.
Nov.
Oct.
Dec.
Jan.
Feb.
Mar.
n.a.
n.a.
n.a.
SAIF-insured institutions
1 Assets
1,084,821
2 Mortgages
3 Mortgage-backed
securities
4
Contra-assets to
mortgage assets .
5 Commercial loans
6 Consumer loans
7
Contra-assets to nonmortgage loans . .
8 Cash and investment
securities
9 Other
919,979
861,517
856,390
856,165
847,235
846,730
840,605
832,039
633,385
551,322
516,654
512,264
512,077
508,815
502,863
496,974
490,558
155,228
129,461
123,282
122,385
120,438
119,715
120,715
120,292
122,171
12,307
17,139
41,775
11,282
14,020
37,403
11,044
13,929
37,230
11,164
13,525
37,123
11,073
13,419
36,732
11,207
13,630
35,938
10,509
13,180
36,019
12,742
8,109
363,562
16,897
24,125
48,753
1,939
1,239
944
910
932
982
931
845
1,083
146,644
95,522
120,077
73,751
119,539
62,844
120,220
62,317
124,140
60,958
120,684
59,925
126,719
59,002
127,893
57,600
132,210
41,695
10 Liabilities and net worth . 1,084,821
919,979
861,517
856,390
856,165
847,235
846,730
840,605
832,039
11
12
13
14
15
16
731,937
121,923
65,842
56,081
17,560
48,559
682,535
108,943
62,760
46,183
17,740
52,299
676,141
109,036
62,359
46,677
18,570
52,642
672,354
110,109
62,225
47,884
20,523
53,178
667,027
110,022
64,105
45,917
18,017
52,169
660,906
114,123
63,065
51,058
19,853
51,846
654,047
114,354
64,742
49,612
20,406
51,798
650,010
114,980
64,615
50,365
16,078
50,867
Deposits
Borrowed money
FHLBB
Other
Other
Net worth
835,496
197,353
100,391
96,962
21,332
30,640
1. Beginning December 1992, data are available on a quarterly basis and are no
longer available monthly.
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
loans in process, unearned discounts and deferred loan fees, valuation allowances
for mortgages "held for sale," and specific reserves and other valuation allowances. Contra-assets to nonmortgage loans include loans in process, unearned
discounts and deferred loan fees, and specific reserves and valuation allowances.
3. Includes holding of stock in Federal Home Loan Bank and finance leases
plus interest.
N O T E . Components do not sum to totals because of rounding. Data for credit
unions and life insurance companies have been deleted from this table. Starting in
the December 1991 issue, data for life insurance companies are shown in a special
table of quarterly data.
S O U R C E . Office of Thrift Supevision (OTS), insured by the Savings Association
Insurance Fund (SAIF) and regulated by the OTS.
1.38 FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Fiscal year
Calendar year
Type of account or operation
1992
1990
1991
1993
1992
Dec.
U.S. budget1
1 Receipts, total
2
On-budget
3
Off-budget
4 Outlays, total
5
On-budget
Off-budget
6
7 Surplus or deficit ( - ) , total
8
On-budget
9
Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase ( - ) ) . . .
12 O t h e r 7
Jan.
Feb.
Mar.
Apr.
May
1,031,308
749,654
281,654
1,251,766
1,026,701
225,064
-220,458
-277,047
56,590
1,054,265
760,382
293,883
1,323,757
1,082,072
241,685
-269,492
-321,690
52,198
1,090,513
788,087
302,426
1,380,657
1,128,318
252,339
-290,144
-340,231
50,087
113,690
89,594
24,096
152,637
116,575
36,061
-38,946
-26,981
-11,965
112,718
90,129
22,589
82,903
84,928
-2,025
29,815
5,201
24,614
66,138
41,038
25,100
113,732
89,276
24,456
-47,594
-48,238
644
83,453
57,259
26,194
128,030
103,793
24,237
-44,577 r
-46,534
1,957
132,122
96,413
35,709
124,034
101,861
22,174
8,088
-5,448
13,535
70,758
44,636
26,122
107,716
83,320
24,395
-36,957
-38,684
1,727
220,101
818
-461
276,802
-1,329
-5,981
310,918
-17,305
-3,469
21,078
-3,175
21,043
-8,355
-16,436
-5,024
30,689
27,227
-10,322
37,727
-2,452
9,302
5,464
-18,945
5,393
30,832
20,1%
-14,071
40,155
7,638
32,517
41,484
7,928
33,556
58,789
24,586
34,203
29,890
7,492
22,399
46,326
9,572
36,754
19,099
5,350
13,749
21,551
6,752
14,799
40,496
7,273
33,233
20,300
5,787
14,514
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. Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the F F B to finance their programs. The act also moved two
social security trust funds (federal old-age survivors insurance and federal
disability insurance) off budget. The Postal Service is included as an off-budget
item in the Monthly Treasury Statement beginning in 1990.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota
in the International Monetary Fund (IMF); loans to the IMF; other cash and
monetary assets; accrued interest payable to the public; allocations of SDRs;
deposit funds; miscellaneous liability (including checks outstanding) and asset
accounts; seigniorage; increment on gold; net gain or loss for U.S. currency
valuation adjustment; net gain or loss for I M F loan-valuation adjustment; and
profit on sale of gold.
SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government ( M T S ) and the Budget of the U.S.
Government.
Federal Finance
1.39
A29
U.S. BUDGET RECEIPTS AND OUTLAYS 1
Millions of dollars
Calendar year
Fiscal year
1993
1992
Source or type
1991
1992
H2
Apr.
H2
May
RECEIPTS
1,054,265
1 All sources
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
11
Self-employment taxes and
contributions
12
Unemployment insurance
13
Other net receipts
14
15
16
17
Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 5
540,504
1,090,513
r
519,181
540,506
560,350
r
83,453
132,122
70,758
246,961
215,591
10
39,371
56,137
32,691
6
44,755
21,315
17,919
31,264
5
8,011
27,935
40,006
6
5,253
17,330
58,022
7,219
14,644
1,920
19,272
1,477
3,022
646
232,389
193,440
31
109,405
70,487
234,939
210,552
33,296
8,910
236,586
198,868
20
110,995 r
73,297 r
17,679r
58,903
7,904
54,016
8,649
61,682r
9,402
396,011
413,689
214,303
186,839
224,569
192,599
33,652
49,176
42,277
370,526
385,491
199,727
175,802
208,110
180,758
32,980
45,164
33,062
25,457
20,922
4,563
24,421
23,410
4,788
22,150
12,296
2,279
3,306
8,721
2,317
20,433
14,070
2,389
3,988
9,397
2,445
873
240
432
12,183
3,581
431
1,620
8,849
365
42,430
15,921
11,138
22,852
45,570
17,359
11,143
26,522
20,703
7,488
5,631
8,991
24,429
8,694
5,507
13,406
22,388 r
8,146
5,700 r
10,695
23,456
9,497
5,733
11,472
4,514
1,598
977
2,051
4,168
1,544
1,898
1,404
3,502
1,419
1,009
2,257
1,323,757
1,380,657
632,153
694,364
704,288
723,367
128,030
124,034
107,716
20,460
1,410
1,382
453
1,071
1,739
-1,896
2,398
862
467,827
404,152
32
142,693
79,050
113,599
15,513
476,049
408,352
30
149,430r
81,763 r
\Y!,949
1
2,281
15,631
OUTLAYS
18 All types
r
19
20
21
22
23
24
National defense
International affairs
General science, space, and technology .
Energy
Natural resources and environment
Agriculture
272,514
16,167
15,946
2,511
18,708
14,864
298,361
16,106
16,409
4,509
20,017
14,997
122,089
7,592
7,496
1,235
8,324
7,684
147,669
7,691
8,472
1,698
11,130
7,418
147,065
8,540 r
7,951
1,442
8,601 r
7,526
155,501
9,911
8,521
3,109
11,617
8,881
25,511
1,103
560
1,549
4,244
27,192
536
1,444
431
1,709
2,666
25
26
27
28
Commerce and housing credit
Transportation
Community and regional development . .
Education, training, employment, and
social services
75,639
31,531
7,432
9,753
33,759
7,923
17,992
14,748
3,552
36,534
17,093
3,783
15,615r
15,673r
3,903
-7,843
18,477
4,540
-1,368
3,383
760
-3,961
2,591
987
41,479
45,248
21,234
21,114
23,696 r
20,922
4,607
3,695
3,433
29 Health
30 Social security and medicare
31 Income security
71,183
373,495
171,618
89,570
406,569
197,867
35,608
190,247
88,778
41,459
193,098
87,693
44,154 r
205,500
104,616r
47,223
232,109
98,693
8,379
37,235
21,056
8,883
37,236
20,408
7,758
35,020
15,900
32
33
34
35
36
31,344
12,295
11,358
195,012
-39,356
34,133
14,450
12,939
199,429
-39,280
14,326
6,187
5,212
98,556
-18,702
17,425
6,574
6,794
99,149
-20,436
15,597
7,435
5,050
100,154r
-18,229
18,561
7,283
8,138
98,549
-20,914
4,090
1,270
1,040
16,415
-2,987
4,332
1,581
655
16,585
-2,935
801
1,199
886
17,420
-2,579
Veterans benefits and services
Administration of justice
General government
Net interest 6
i
Undistributed offsetting receipts 7
1. Functional details do not sum to total outlays for calendar year data because
revisions to monthly totals have not been distributed among functions. Fjscal 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 ftind.
1,181
5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Includes interest received by trust funds.
7. Consists of rents and royalties for the outer continental shelf and 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 1994.
A30
DomesticNonfinancialStatistics • August 1993
1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1991
1992
1993
Item
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
June 30
Sept. 30
Dec. 31
Mar. 31
1 Federal debt outstanding
3,492
3,563
3,683
3,820
3,897
4,001
4,083
4,196
4,250 r
2 Public debt securities
3
Held by public
4
Held by agencies
3,465
2,598
867
3,538
2,643
895
3,665
2,746
920
3,802
2,833
969
3,881
2,918
964
3,985
2,977
1,008
4,065
3,048
1,016
4,177
3,129
1,048
4,231
3,188 r
l,043 r
27
26
0
25
25
0
18
18
0
19
19
0
16
16
0
16
16
0
18
18
0
19
19
0
20"
20"
0"
3,377
3,450
3,569
3,707
3,784
3,891
3,973
4,086
4,140
3,377
0
3,450
0
3,569
0
3,706
0
3,783
0
3,890
0
3,972
0
4,085
0
4,139
0
4,145
4,145
4,145
4,145
4,145
4,145
4,145
4,145
4,145
5 Agency securities
6
Held by public
7
Held by agencies
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt 1
MEMO
11 Statutory debt limit
1. Consists of guaranteed debt o f T r e a s u r y 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. U.S. Treasury Department, Monthly Statement
the United States and Treasury Bulletin.
of the Public Debt of
Types and Ownership
Billions of dollars, end of period
1992
Type and holder
1989
1990
1991
1993
1992
Q2
1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues 2
Government
Public
Savings bonds and n o t e s . . v
Government account series
Non-interest-bearing
By holder4
15 U.S. Treasury and other federal agencies and trust funds
16 Federal Reserve Banks
17 Private investors
18
Commercial banks
19
Money market funds
20
Insurance companies
21
Other companies
22
State and local treasuries
Individuals
23
Savings bonds
24
Other securities
25
Foreign and international 5
26
Other miscellaneous investors
Q4
Q1
2,953.0
3,364.8
3,801.7
4,177.0
3,984.7
4,064.6
4,177.0
4,230.6
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
21.2
3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8
3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8
4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1
3,981.8
2,605.1
618.2
1,517.6
454.3
1,376.7
161.9
38.7
38.7
.0
143.2
1,002.5
2.9
4,061.8
2,677.5
634.3
1,566.4
461.8
1,384.3
157.6
37.0
37.0
.0
148.3
1,011.0
2.8
4,173.9
2,754.1
657.7
1,608.9
472.5
1,419.8
153.5
37.4
37.4
.0
155.0
1,043.5
3.1
4,227.6
2,807.1
659.9
1,652.1
480.2
1,420.5
151.6
37.0
37.0
.0
161.4
1,040.0
3.0
707.8
228.4
2,015.8
164.9
14.9
125.1
93.4
487.5
828.3
259.8
2,288.3
171.5
45.4
142.0
108.9
490.4
968.7
281.8
2,563.2
233.4
80.0
168.7
150.8
520.3
1,047.8
302.5
2,839.9
293.4 r
80.6
190.3r
192.5
534.8 r
1,007.9
276.9
2,712.4
267.3
79.4
180.8
175.0
528.5
1,016.3
296.4
2,765.5
287.4 r
79.8
185.6r
180.8
529.5 r
1,047.8
302.5
2,839.9
293.4 r
80.6
190.3r
192.5
534.8 r
1,043.2
305.2
2,895.0
296.0
77.6
194.0
199.3
536.0
117.7
98.7
392.9
520.7
126.2
107.6
421.7
674.5
138.1
125.8
455.0
691.1
157.3
131.9
512.5
746.6 r
145.4
129.7
492.9
713.5
150.3
130.9
499.0
722. l r
157.3
131.9
512.5
746.6 r
163.6
134.1
528.4
766.0
1. Includes (not shown separately) securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. Nonmarketable series denominated in dollars, and series denominated in
foreign currency held by foreigners.
3. Held almost entirely by U.S. Treasury and other federal agencies and trust
funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.
Q3
5. Consists of investments of foreign balances and international accounts in the
United States.
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. U.S. Treasury Department, data by type of security, Monthly
Statement of the Public Debt of the United States; data by holder, the Treasury
Bulletin.
Federal Finance
1.42 U.S. GOVERNMENT SECURITIES DEALERS
A31
Transactions1
Millions of dollars, daily averages
1993, week ending
Item
Mar. 31
Apr. 7
Apr. 14
Apr. 21
36,263
46,812
42,055
36,580
39.664
43,291
42,606
17,455
13,979
34,141
37,288
18,214
18,751
35,705
49,562
17,864
17,133
30,816
37,940
20,333
16,422
45,077
47,458
21,071
16.665
5,715
640
578 r
6,718
503
1,228
4,704
520
1,162
5,447
729
375
6,188
706
339
6,392
598
528
14,705
4,059
17,293
3,336
9,461
4,401
15,789
2,553
25,851
3,685
16,051
2,830
123,545
110,173
97,491 r
97,905
92,876
100,757
1,970
11,756
1,771
7,388
1,155
8,855
1,832
5,108
1,530
7,994
1,120
12,470
75,814 r
66,539
59,53 l r
55,689
62,330
5,931
11,378
5,778 r
11,775
6,616
8,754
4,856
10,349
Mar,
Apr.
43,300
41,043 r
56,575
48,2%
28,512
21,502
47,300
45,252
23,269
17,592
r
36,975
42,8I2 r
19,229
16,%3 r
6,719
881
1,194
5,790
788
1,125
22,571
4,509
Feb.
IMMEDIATE TRANSACTIONS
By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
2
Less than 3.5 years
3
3.5 to 7.5 years
4
7.5 to 15 years
5
15 years or more
Federal agency securities
Debt, by maturity
6
Less than 3.5 years
7
3.5 to 7.5 years
8
7.5 years or more
Mortgage-backed
9
Pass-throughs
10
All others
11
12
13
14
15
16
By type of counterparty
Primary dealers and brokers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
Customers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
Apr. 28
May 5
May 12
May 19
38,6%
30,411
50,017
42,379
40,316
17,817
14,160
48,407
41,351
28,140
16,146
61,051
47,856
21,645
19,793
6,033
657
350
4,867
702
424
7,242
665
373
13,271
3,844
12,820
4,414
24,851
3,556
20,592
2,998
88,099
108,652
%,439
103,168
123,857
907
8,735
1,068
7,166
1,137
6,489
1,089
11,762
876
10,456
61,561
53,992
61,284
56,928
61,288
76,504
5,431
17,066
6,325
10,146
6,450
9,949
5,903
10,745
4,903
16,646
May 26
7,404
13,134
2
44,475*
6,825
15,324
FUTURES A N D F O R W A R D
TRANSACTIONS
By type of deliverable
security
U.S. Treasury securities
17 Bills
Coupon securities, by maturity
18
Less than 3.5 years
19
3.5 to 7.5 years
20
7.5 to 15 years
21
15 years or more
Federal agency securities
Debt, by maturity
22
Less than 3.5 years
23
3.5 to 7.5 years
24
7.5 years or more
Mortgage-backed
25
Pass-tljroughs
26
Others 3
OPTIONS TRANSACTIONS
27
28
29
30
31
2,679
2,205
2,378 r
1,067
1,267
2,150
2,325
3,892
2,078
1,976
3,439
2,622
1,890
3,847
11,748
2,348
2,287
3,542
11,335
1,942
1,384
2,377
9,025
1,791
2,0%
2,937
7,764
1,719
1,250
2,238
9,300
2,280
1,241
3,126
9,611
1,734
1,265
1,663
8,061
2,031
1,674
2,463
9,178
1,947
1,646
2,420
8,8%
1,526
1,326
3,608
8,855
2,168
1,483
2,844
12,552
72
130
44
92
103
32
102
128
33
63
105
39
28
242
11
98
57
41
25
72
41
273
%
48
67
236
7
94
100
22
320
32
17
17,514
1,478
22,141
1,471
21,378
1,463
18,189
1,089
19,263
1,887
25,251
716
20,743
1,847
21,300
1,397
18,768
1,479
23,463
1,968
22,108
1,900
1,692
443
679
1,286
1,662
431
687
972
l,611 r
564r
507r
l,084 r
1,400
503
413
737
1,593
755
427
1,059
1,849
626
557
940
1,661
449
541
799
1,484
462
564
1,499
1,257
472
357
1,180
1,312
1,248
419
473
1,111
586
664
675
704
683
749
618
415
5
By type of underlying
security
U.S. Treasury, coupon
securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency, mortgagebacked securities
Pass-throughs
1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of N e w York by the U.S. government securities dealers on
its published list of primary dealers. Averages are based on the number of trading
days in the period. Immediate, forward, and futures transactions are reported at
principal value, which does not include accrued interest; options 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 agency
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 such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),
and principal-only securities (POs).
868
390
953
357
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. Treasury securities and federal agency
debt securities are included when the time to delivery is more than five business
days. Forward contracts for mortgage-backed agency securities are included
when the time to delivery is more than thirty days.
5. Options transactions are purchases o r 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. Treasury and federal agency securities.
N O T E . In tables 1.42 and 1.43, " n . a . " indicates that data are not published
because of insufficient activity.
Data for several types of options transactions—U.S. Treasury securities, bills;
Federal agency securities, debt; and mortgage-backed securities, other than
pass-throughs—are no longer available because activity is insufficient.
A32
DomesticNonfinancialStatistics • August 1993
1.43 U.S. GOVERNMENT SECURITIES DEALERS
Millions of dollars
Positions and Financing1
1993, week ending
1993
item
Feb.
Mar.
Apr.
Mar. 31
Apr. 7
Apr. 14
Apr. 21
Apr. 28
May 5
May 12
May 19
Positions 2
N E T I M M E D I A T E POSITIONS
3
By type of security
U.S. Treasury securities
1 Bills
Coupon securities, by maturity
2
Less than 3.5 years
3
3.5 to 7.5 years
4
7.5 to 15 years
5
15 years or more
Federal agency securities
Debt, by maturity
6
Less than 3.5 years
7
3.5 to 7.5 years
8
7.5 years or more
Mortgage-backed
Pass-throughs
9
10
All others
Other money market instruments
11
Certificates of deposit
12
Commercial paper
Bankers acceptances
13
F U T U R E S A N D F O R W A R D POSITIONS
By type of deliverable security
U.S. Treasury securities
14 Bills
Coupon securities, by maturity
15 Less than 3.5 years
16 3.5 to 7.5 years
17 7.5 to 15 years
15 years or more
18
Federal agency securities
Debt, by maturity
19
Less than 3.5 years
3.5 to 7.5 years
20
21
7.5 years or more
Mortgage-backed
Pass-throughs
22
23
All others
24 Certificates of deposit
13,550
18,483
20,480
21,070
21,266
17,886
15,059
13,757
4,818
8,062
800
-10,824
-9,682
7,126
1,628
-14,104
-10,240
9,342
2,928
-17,023
-12,805
9,248
3,798
-15,290
-11,174
9,424
2,930
-18,071
-11,541
9,466
2,429
-15,721
-13,929
9,908
-478
-17,141
-13,214
9,653
5,944
-17,266
-12,886
8,192
6,038
-16,651
-11,584
8,447
11,219
-17,854
-6,990
7,707
8,007
-23,033
-8,787
7,439
6,674
2,708
3,811
6,451
3,332
4,896
6,342
3,178
3,958
4,937
3,216
4,931
7,305
3,136
4,194
8,193
3,198
4,254
5,345
3,203
3,899
5,115
3,082
3,641
4,274
3,510
3,408
5,910
3,197
3,416
3,829
2,617
2,943
34,699
24,540
33,009
25,734
34,056
25,866
21,988
28,773
35,026
26,683
39,434
25,931
36,431
25,317
28,627
24,979
22,530
27,808
40,102
26,619
29,843
25,617
3,571
6,911
990
3,212
6,237
1,139
3,203
5,145
972
3,719
6,008
1,208
2,438
4,725
1,197
3,506
5,948
1,130
3,310
4,879
941
3,538
5,165
733
3,280
4,671
574
2,699
5,403
739
3,594
5,387
921
-5,805
-5,103
-7,951
-5,297
-6,419
-7,161
-7,785
-9,765
-10,315
-8,312
-2,732
839
2,513
1,851
-3,781
-568
4,333
2,954
-5,119
-1,433
4,857
4,385
-5,103
-1,781
5,392
5,250
-5,399
-1,958
5,070
4,761
-4,601
-1,624
3,982
3,744
-6,405
-1,592
5,100
4,208
-5,231
-852
5,498
4,689
-4,367
-409
4,086
4,861
-4,433
-1,679
4,763
3,877
-5,518
-1,376
5,267
5,681
-4,244
-50
-12
22
-194
-39
33
-285
-50
-74
-275
-50
-44
-43
89
-73
-6
-17
-70
-35
-259
-64
-897
8
-101
-844
-128
-27
-272
-93
-100
18
-71
-220
-14,374
3,326
-117,589
-13,086
3,371
-156,612
-12,900
4,770
-160,960
-16,638
4,130
-171,999
-17,114
3,693
-163,417
-14,919
4,364
-150,788
-5,723
7,360
-162,1%
-3,124
3,139
-144,995
-18,952
2,907
-161,008
-6,724
2,164
-161,550
7,553
5
-3,608 r
3,655
-165,264
Financing 6
Reverse repurchase agreements
25 Overnight and continuing
26 Term
230,919
364,102
233,038
360,955
223,214
393,238
219,779
304,913
237,057
386,911
225,016
388,465
217,913
392,306
214,686
406,831
216,856
387,767
228,208
409,092
235,710
357,602
Repurchase
agreements
27 Overnight and continuing
28 Term
404,809
351,505
403,942
349,516
406,560
369,281
372,903
290,358
395,432
371,382
417,640
361,406
416,451
368,604
402,418
380,581
386,607
352,304
397,630
387,153
419,306
333,158
Securities borrowed
29 Overnight and continuing
30 Term
113,700
52,467
115,244
40,753
117,774
44,365
107,573
37,719
113,794
41,060
118,011
42,219
120,540
44,619
117,993
49,794
120,427
43,553
120,229
43,315
125,020
41,154
Securities loaned
31 Overnight and continuing
32 Term
3,898
467
3,504
482
4,762
587
3,206
179
3,771
148
5,409
288
4,569
1,064
5,380
874
4,484
489
4,668
1,189
5,358
1,221
Collateralized loans
33 Overnight and continuing
16,403
14,209
14,434
12,959
12,738
13,6%
14,159
17,090
14,622
15,839
14,5%
M E M O : Matched book 7
Reverse repurchase agreements
34 Overnight and continuing
35 Term
160,307r
318,532 r
156,399r
313,182 r
148,137r
341,856 r
141,932r
261,551 r
152,495
336,996
154,922
334,621
148,784
341,050
138,578
356,218
140,334
336,744
142,860
356,067
152,953
303,795
Repurchase agreements
36 Overnight and continuing
37 Teim
219,777 r
269,264 r
214,034 r
266,309 r
204,658 r
283,791 r
204,748 r
216,502 r
199,655
289,674
204,619
279,808
208,893
282,535
203,931
288,502
210,027
265,052
213,256
288,478
210,595
242,717
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.
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 that settle
on the issue date of offering. Net immediate positions of mortgage-backed agency
securities include securities purchased or sold that have been delivered or are
scheduled to be delivered in thirty days or less.
4. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),
and principal-only securities (POs).
5. Futures positions reflect standardized agreements 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. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days.
Forward contracts for mortgage-backed agency 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 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 given above. The reverse repurchase and repurchase
numbers are not always equal because of the " m a t c h i n g " of securities of different
values or different types of collateralization.
N O T E . Data for futures and forward commercial paper and bankers acceptances and
for term financing of collateralized loans are no longer available because of insufficient
activity.
Federal Finance
1.44 FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES
A33
Debt Outstanding
Millions of dollars, end of period
1993
1992
1988
Agency
1989
1990
1991
Nov.
1 Federal and federally sponsored agencies
Dec.
Jan.
Feb.
Mar.
381,498
411,805
434,668
442,772
481,050
483,970
487,331
494,739
494,656
35,668
8
11,033
150
35,664
7
10,985
328
42,159
7
11,376
393
41,035
7
9,809
397
42,081
7
7,698
344
41,829
7
7,208
374
41,641
7
7,208
231
42,115
7
7,208
237
42,051
7
6,749
3
0
6,142
18,335
0
0
6,445
17,899
0
0
6,948
23,435
0
0
8,421
22,401
0
0
10,660
23,372
0
0
10,660
23,580
0
0
10,660
23,535
0
0
10,660
24,003
0
0
10,440
24,5%
0
10 Federally sponsored agencies 7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
N
Federal National Mortgage Association
14
Farm Credit Banks 8
15
Student L o a n Marketing Association 9
16
Financing Corporation 1 0
17
Farm Credit Financial Assistance Corporation
Resolution Funding Corporation 1 2
18
345,832
135,836
22,797
105,459
53,127
22,073
5,850
690
0
375,428
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
401,737
107,543
30,262
133,937
52,199
38,319
8,170
1,261
29,9%
438,%9
114,364
30,914
161,308
52,728
39,737
8,170
1,261
29,9%
442,141
114,733
29,631
166,300
51,910
39,650
8,170
1,261
29,9%
445,690
113,253
34,479
165,958
52,264
39,812
8,170
1,261
29,9%
452,624
113,347
44,490
163,538
51,502
39,822
8,170
1,261
29,9%
452,605
115,272
41,183
165,818
51,630
38,776
8,170
1,261
29,9%
MEMO
19 Federal Financing Bank debt 1 3
142,850
134,873
179,083
185,576
156,579
154,994
151,059
147,464
146,097
11,027
5,892
4,910
16,955
0
10,979
6,195
4,880
16,519
0
11,370
6,698
4,850
14,055
0
9,803
8,201
4,820
10,725
0
7,692
10,440
4,790
6,975
0
7,202
10,440
4,790
6,975
0
7,202
10,440
4,790
6,825
0
7,202
10,440
4,790
6,825
0
6,743
10,440
4,790
6,675
0
58,4%
19,246
26,324
53,311
19,265
23,724
52,324
18,890
70,8%
48,534
18,562
84,931
42,979
18,172
65,531
42,979
18,172
64,436
42,979
18,037
60,786
42,979
18,036
57,192
42,979
17,966
56,504
2 Federal agencies
3
Defense Department'
Export-Import Bank 2 ' 3
4
5
Federal Housing Administration
Government National Mortgage Association certificates of
6
participation 5
7
Postal Service 6
8
Tennessee Valley Authority
9
United States Railway Association
20
71
22
23
24
Lending to federal and federally sponsored
Export-Import Bank 3
Postal Service 6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association
Other lending14
75 Farmers Home Administration
26 Rural Electrification Administration
27
agencies
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. On-budget since Sept. 30, 1976.
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 year 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration, the Department of Health, Education, and Welfare, the Department of
Housing and Urban Development, the 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 on line 17.
9. Before late 1982, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 22.
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. Because 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
are loans guaranteed by numerous agencies, with the amounts guaranteed by any
one agency generally being small. The Farmers Home Administration entry
consists exclusively of agency assets, while the Rural Electrification Administration entry consists of both agency assets and guaranteed loans.
A34
1.45
DomesticNonfinancialStatistics • August 1993
NEW SECURITY ISSUES
Tax-Exempt State and Local Governments
Millions of dollars
1992
Type of issue or issuer,
or use
1990
1991
1993
1992
Oct.
1
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
120,339
154,402
215,191
21,092
14,133
19,577
17,981
17,793
27,471
18,661
25,822
By type of issue
2 General obligation
3 Revenue
39,610
81,295
55,100
99,302
78,611
136,580
7,733
13,359
5,203
8,930
6,024
13,553
4,840
13,141
6,%3
10,830
8,254
19,217
8,272
10,581
9,452
16,370
By type of issuer
4 State
5 Special district or statutory authority 2
6 Municipality, county, or township
15,149
72,661
32,510
24,939
80,614
48,849
25,295
127,618
60,210
2,742
13,113
5,237
1,688
8,197
4,248
2,339
11,159
6,079
1,339
12,556
3,994
3,485
9,654
4,654
2,139
18,355
6,977
1,463
7,628
9,570
2,910
14,085
8,827
103,235
116,953
120,272
13,760
8,028
8,010
5,875
4,636
9,716
5,385
9,386
17,042
11,650
11,739
23,099
6,117
34,607
21,121
13,395
21,039
25,648
8,376
30,275
22,071
17,334
20,058
21,7%
5,424
33,589
2,083
1,364
3,340
2,365
367
4,241
1,800
531
960
1,070
581
3,086
1,658
831
1,258
1,121
339
2,803
1,033
829
894
777
337
2,005
1,264
131
423
618
69
2,131
1,482
2,111
538
1,556
765
3,264
833
699
806
942
134
1,971
1,5%
813
955
1,756
601
3,665
1 All issues, new and refunding
7 Issues for new capital
8
9
10
11
12
13
By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes
SOURCES. Securities Data Company beginning January 1993.
Dealer's Digest for earlier data.
1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.
1.46 NEW SECURITY ISSUES
Investment
U.S. Corporations
Millions of dollars
1992
Type of issue, offering,
or issuer
1990
1991
Sept.
1
1993
1992
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
r
Apr.
r
42,751
340,049
465,483
n.a.
42,849
39,280
35,525
39,424
50,793
59,504
2 Bonds 2
299,884
390,018
404,992
37,539
32,314
31,026
33,375
45,559
49,444"
46,907 r
36,500
By type of offering
3 Public, domestic
4 Private placement, domestic
5 Sold abroad
188,848
86,982
23,054
287,125
74,930
27,%2
377,453
n.a.
27,539
36,185
n.a.
1,355
30,249
n.a.
2,066
28,774
n.a.
2,252
31,835
n.a.
1,540
41,675
n.a.
3,884
47,165
n.a.
2,278"
41,699
n.a.
5,208"
33,000
n.a.
3,500
51,779
40,733
12,776
17,621
6,687
170,288
86,628
36,666
13,598
23,945
9,431
219,750
69,538
30,049
6,497
44,643
13,073
241,192
5,974
2,374
677
5,230
1,191
22,093
7,975
2,813
290
3,700
427
17,110
3,467
2,3%
0
1,289
374
23,499
4,232
2,176
611
2,867
516
22,973
9,393
3,074
316
4,282
3,019
25,475
8,150"
2,268
248
5,624
2,890
30,264
8,067
2,695
1,067
7,058
3,270
24,751"
8,201
2,099
100
5,985
1,915
18,200
12 Stocks 2
40,165
75,467
n.a.
5,310
6,966
4,499
6,049
5,234
10,060
8,838
6,251
By type of offering
13 Public preferred
14 Common
15 Private placement 3
n.a.
n.a.
16,736
17,408
47,860
10,109
21,332
57,099
n.a.
1,233
4,077
n.a.
2,901
4,065
n.a.
1,540
2,958
n.a.
1,608
4,441
n.a.
1,112
4,122
n.a.
1,898
8,161
n.a.
1,647
7,191
n.a.
702
5,549
n.a.
5,649
10,171
369
416
3,822
19,738
24,154
19,418
2,439
3,474
475
25,507
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
307
602
59
595
1,051
2,695
1,779
940
53
359
99
3,735
288
1,366
304
150
22
2,369
1,468
2,226
118
92
126
2,019
722
1,688
65
310
0
2,438
2,616
2,021
64
350
0
5,009
1,741
2,488
336
743
7
3,522
1,387
1,564
250
412
30
2,579
1 All issues
6
7
8
9
10
11
16
17
18
19
20
21
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial
1. Figures represent gross proceeds of issues maturing in more than one year;
they are the principal amount or number of units calculated by multiplying by the
offering price. Figures exclude 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.
55,745
2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. IDD Information Services, Inc. and the Board of Governors of the
Federal Reserve System.
Securities Market and Corporate Finance A35
1.47
OPEN-END INVESTMENT COMPANIES
Net Sales and Assets
Millions of dollars
1992
Item 1
1991
1993
1992
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1 Sales of own shares 2
463,645
647,055
50,039
52,214
52,019
70,618
71,607
60,676
69,080
66,766
2 Redemptions of own shares
3 Net sales 3
342,547
121,098
447,140
199,915
37,862
12,177
37,134
15,080
34,126
17,893
51,993
18,625
46,545
25,062
39,684
20,992
47,414
21,666
46,518
20,248
4 Assets 4
808,582
1,056,310
978,507
983,151
1,019,618
1,056,310
1,082,653
1,116,784
1,154,445
1,178,644
5 Cash 5
6 Other
60,292
748,290
73,999
982,311
76,498
902,009
75,808
907,343
80,247
939,371
73,999
982,311
76,764
1,005,889
79,763
1,037,021
81,536
1,072,910
86,205
1,092,440
4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
S O U R C E . Investment Company Institute. Data based on reports of membership,
which comprises substantially ail open-end investment companies registered with
the Securities and Exchange Commission. Data reflect underwritings of new
companies.
1. Data on sales and redemptions exclude money market mutual funds but
include limited-maturity municipal bond funds. Data on assets exclude both
money market mutual funds and limited-maturity municipal bond funds.
2. Includes reinvestment of dividends. Excludes reinvestment of capital gains
distributions.
3. Excludes sales and redemptions resulting from transfers of shares into or out
of money market mutual funds within the same fund family.
1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1992
1991
1990
Account
1991
1993
1992
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Qlr
1 Profits with inventory valuation and
capital consumption adjustment
2 Profits before taxes
3 Profits tax liability
4 Profits after taxes
5
Dividends
6
Undistributed profits
361.7
355.4
136.7
218.7
149.3
69.4
346.3
334.7
124.0
210.7
146.5
64.2
393.8
371.6
140.2
231.4
149.3
82.1
347.3
332.3
122.9
209.4
146.2
63.2
341.2
336.7
127.0
209.6
145.1
64.5
347.1
332.3
125.0
207.4
143.9
63.4
384.0
366.1
136.4
229.7
143.6
86.2
388.4
376.8
144.1
232.7
146.6
86.1
374.1
354.1
131.8
222.2
151.1
71.1
428.5
389.4
148.5
241.0
155.9
85.0
429.6
398.3
147.2
251.1
160.2
90.9
7 Inventory valuation
8 Capital consumption adjustment
-14.2
20.5
3.1
8.4
-7.4
29.5
9.9
5.1
-4.8
9.3
.7
14.1
-5.4
23.3
-15.5
27.0
-9.7
29.7
1.0
38.1
-9.4
40.6
S O U R C E . U.S. Department of Commerce, Survey of Current
Business.
1.50 NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data at seasonally adjusted annual rates
1991
Industry
1991
1992
1992
1993
19931
Q1
Q4
Q2
Q3
Q4
Q1
Q2
Q3 1
1 Total nonfarm business
528.39
546.08
581.12
529.87
535.72
540.91
547.53
560.16
564.81
587.29
587.05
Manufacturing
2 Durable goods industries
3 Nondurable goods industries
77.64
105.17
73.41
100.50
77.49
100.74
76.40
102.66
74.19
99.79
74.26
97.52
71.84
100.39
73.34
104.28
79.32
95.85
78.06
104.73
75.01
102.17
Nonmanufacturing
4 Mining
Transportation
5
Railroad
6
Air
7
Other
Public utilities
8
Electric
9
Gas and other
10 Commercial and other 2
10.02
8.90
9.51
9.99
8.87
9.18
9.09
8.44
8.84
10.10
10.15
5.95
10.17
6.54
6.77
8.97
7.04
6.71
7.50
9.12
5.44
10.41
6.45
6.65
8.86
6.37
6.50
9.75
7.27
6.87
10.13
7.69
7.08
7.13
6.84
6.01
7.43
9.06
6.68
8.89
8.42
6.87
7.59
9.09
43.76
22.82
246.32
48.05
23.91
268.54
52.75
22.99
294.32
44.75
22.67
251.11
46.06
22.75
262.17
48.45
24.19
263.80
47.73
23.92
269.86
49.95
24.78
278.32
49.87
23.44
284.99
54.11
23.58
292.72
53.66
22.54
299.96
1. Figures are amounts anticipated by business.
2. " O t h e r " consists of construction, wholesale and retail trade, finance and
insurance, personal and business services, and communication.
S O U R C E . U.S. Department of Commerce, Survey of Current Business.
A36
1.51
DomesticNonfinancialStatistics • August 1993
Assets and Liabilities1
DOMESTIC FINANCE COMPANIES
Billions of dollars, end of period; not seasonally adjusted
1991
Account
1991
1990
1992
1992
Q2
Q3
Q4
Q1
Q2
Q3
Q4
ASSETS
1 Accounts receivable, gross 2
2
Consumer
3
Business
4
Real estate
492.3
133.3
293.6
65.5
480.6
121.9
292.9
65.8
482.1
117.1
296.5
68.4
488.9
127.5
295.7
65.7
485.2
125.3
293.7
66.2
480.6
121.9
292.9
65.8
475.6
118.4
290.8
66.4
476.7
116.7
293.2
66.8
473.9
116.7
288.5
68.8
482.1
117.1
296.5
68.4
57.6
9.6
55.1
12.9
50.8
15.8
58.0
11.1
57.6
13.1
55.1
12.9
53.6
13.0
51.2
12.3
50.8
12.0
50.8
15.8
7 Accounts receivable, net
8 All other
425.1
113.9
412.6
149.0
415.5
150.6
419.8
122.8
414.6
136.4
412.6
149.0
409.0
145.5
413.2
139.4
411.1
146.5
415.5
150.6
9 Total assets
539.0
561.6
566.1
542.6
551.1
561.6
554.5
552.6
557.6
566.1
31.0
165.3
42.3
159.5
37.6
156.4
36.9
156.1
39.6
156.8
42.3
159.5
38.0
154.4
37.8
147.7
38.1
153.2
37.6
156.4
n.a.
n.a.
37.5
178.2
63.9
63.7
n.a.
n.a.
34.5
191.3
69.0
64.8
n.a.
n.a.
37.8
195.3
71.2
67.8
n.a.
n.a.
34.2
184.5
67.1
63.3
n.a.
n.a.
36.5
185.0
68.8
63.8
n.a.
n.a.
34.5
191.3
69.0
64.8
n.a.
n.a.
34.5
189.8
72.0
66.0
n.a.
n.a.
34.8
191.9
73.4
67.1
n.a.
n.a.
34.9
191.4
73.7
68.1
n.a.
n.a.
37.8
195.3
71.2
67.8
539.6
561.2
566.1
542.1
550.5
561.2
554.6
552.7
559.4
566.1
Feb.
Mar.
Apr.
5 LESS: Reserves for unearned income
6
Reserves for losses
LIABILITIES A N D C A P I T A L
10 Bank loans
11 Commercial paper
12
13
14
15
16
17
Debt
Other short-term
Long-term
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits
18 Total liabilities and capital
1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are amounts carried on the balance sheets of finance
companies; securitized pools are not shown since they are not on the books.
1.52 DOMESTIC FINANCE COMPANIES
2. Before deduction for unearned income and losses,
Consumer, Real Estate, and Business Credit1
Millions of dollars, amounts outstanding, end of period
1992
Type of credit
1990
1991
1993
1992
Nov.
Dec.
Jan.
Seasonally adjusted
1 Total
522,474
519,910
534,845
530,702
534,845
529,256
531,398
532,144
532,425
2 Consumer
3 Real estate
4 Business
160,468
65,147
296,858
154,822
65,383
299,705
157,707
68,011
309,127
156,736
68,581
305,385
157,707
68,011
309,127
156,551
68,942
303,763
157,733
70,016
303,649
156,277
68,726
307,141
156,363
69,791
306,272
Not seasonally adjusted
5 Total
6 Consumer
7
Motor vehicles
8
Other c o n s u m e r
9
Securitized motor vehicles
10
Securitized other c o n s u m e r
11 Real estate 2
12 Business
13
Motor vehicles
14
Retail5....
15
Wholesale 6
16
Leasing
17
Equipment
18
Retail.....
19
Wholesale 6
20
Leasing
»
21
Other business
22
Securitized business assets
23
Retail
24
Wholesale
25
Leasing
525,888
523,192
538,158
530,367
538,158
528,847
528,490
532,298
534,286
161,360
75,045
58,213
19,837
8,265
65,509
299,019
92,125
26,454
33,573
32,098
137,654
31,968
11,101
94,585
63,773
5,467
667
3,281
1,519
155,713
63,415
58,522
23,166
10,610
65,760
301,719
90,613
22,957
31,216
36,440
141,399
30,962
9,671
100,766
60,900
8,807
576
5,285
2,946
158,631
57,605
59,522
29,775
11,729
68,410
311,118
87,456
19,303
29,962 r
38,191
151,607
32,212
8,669
110,726
57,464
14,590
1,118
8,756
4,716
157,149
58,386
58,172
28,964
11,626
68,761
304,457
85,621
19,708
26,894
39,020
148,127
31,427
8,824
107,877
56,926
13,782
607
8,813
4,362
158,631
57,605
59,522
29,775
11,729
68,410
311,118
87,456
19,303
29,962
38,191
151,607
32,212
8,669
110,726
57,464
14,590
1,118
8,756
4,716
156,430
57,165
58,844
28,894
11,527
68,889
303,527
86,491
19,124
28,727
38,640
146,820
32,458
8,582
105,780
55,760
14,457
1,036
8,582
4,839
155,929
54,036
58,651
32,860
10,383
69,216
303,345
86,412
17,881
30,059
38,472
145,886
32,430
8,318
105,138
55,962
15,085
973
9,408
4,704
154,933
53,508
58,346
32,915
10,164
68,135
309,230
91,647
16,961
35,894
38,792
145,878
32,560
8,656
104,662
56,153
15,552
904
9,824
4,824
155,362
53,986
58,510
32,443
10,423
69,344
309,579
91,695
17,231
35,063
39,400
145,877
32,170
8,642
105,066
56,144
15,863
1,434
9,756
4,673
1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are before deductions for unearned income and losses.
Data in this table also appear in the Board's G.20 (422) monthly statistical release.
For ordering address, see inside front cover.
2. Includes all loans secured by liens on any type of real estate, for example,
first and junior mortgages and home equity loans.
3. Includes personal cash loans, mobile home loans, and loans to purchase other
types of consumer goods such as appliances, apparel, general merchandise, and
recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued;
FRASER no longer carried on the balance sheets of the loan originator. these
balances are
Digitized for
5. Passenger car fleets and commercial land vehicles for which licenses are
required.
6. Credit arising from transactions between manufacturers and dealers, that is,
floor plan financing.
7. Includes loans on commercial accounts receivable, factored commercial
accounts, and receivable dealer capital; small loans used primarily for business or
farm purposes; and wholesale and lease paper for mobile homes, campers, and
travel trailers.
Real Estate
A37
1.53 MORTGAGE MARKETS Mortgages on New Homes
Millions of dollars except as noted
1992
Item
1990
1991
1993
1992
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
Terms and yields in primary and secondary markets
PRIMARY MARKETS
1
2
3
4
5
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)
155.0
114.0
75.0
26.8
1.71
158.1
118.1
76.6
25.6
1.60
165.4
117.3
75.3
24.9
1.54
154.0
117.7
77.7
26.1
1.31
158.6
119.5
76.8
25.7
1.49
159.7
114.5
75.4
23.8
1.43
156.2
121.5
79.3
26.9
1.50
150.9
115.0
78.5
24.9
1.23
153.1
118.8
79.5
26.9
1.43
9.68
10.01
10.08
9.02
9.30
9.20
7.98
8.25
8.43
7.81
8.07
8.38
7.65
7.88
8.19
7.57
7.82
7.93
7.52
7.77
7.63
7.22
7.46
7.59
7.26
7.46
7.51
7.14
7.37
7.59
10.17
9.51
Yield (percent per year)
6 Contract rate 1 ,
7 Effective rate •
8 Contract rate ( H U D series) 4
153.2
112.4
74.8
27.3
1.93
9.25
8.59
8.46
7.77
8.54
7.90
8.12
7.57
8.04
7.39
7.55
7.02
7.57
6.79
7.56
6.77
7.59
6.79
SECONDARY MARKETS
Yield (percent per year)
9 F H A mortgages (Section 203)5
10 G N M A securities 6
Activity in secondary markets
F E D E R A L N A T I O N A L M O R T G A G E ASSOCIATION
Mortgage
11 Total
holdings (end of period)
Mortgage transactions
14 Purchases
Mortgage
15 Issued 7
16 To sell 8
commitments
(during
153,306
22,372
130,934
158,119
22,593
135,526
159,204
22,640
136,564
159,766
22,573
137,193
161,147
22,700
138,447
163,719
22,682
141,037
166,849
22,691
144,158
37,202
75,905
7,980
8,832
4,993
4,118
4,730
6,761
7,526
40,010
7,608
74,970
10,493
6,084
237
6,185
1,811
4,189
1,159
4,177
221
6,644
0
7,764
112
7,791
30
24,131
484
23,283
29,959
408
29,552
32,703
359
32,343
33,665
352
33,313
32,370
347
32,023
32,454
343
32,112
35,421
337
35,084
38,361
330
38,031
39,960
325
39,635
75,517
73,817
(during
142,833
22,168
120,664
20,419
547
19,871
Conventional
122,837
21,702
101,135
23,959
FHA/VA
13
113,329
21,028
92,302
23,689
5,270
12
97,727
92,478
191,125
179,208
19,607
19,154
20,792
19,602
15,512
16,536
12,063
12,105
12,587
10,286
15,885
13,807r
18,842
17,532
102,401
114,031
261,637
29,717
32,453
17,591
23,366
21,103
20,731
18,908
period)
period)
FEDERAL H O M E L O A N M O R T G A G E CORPORATION
Mortgage
17 Total
holdings (end of period f
18
FHA/VA
19
Conventional
Mortgage transactions
20 Purchases
21 Sales
Mortgage commitments
22 Contracted
(during
(during
period)
periodf
1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups for purchase of newly built homes; compiled by
the Federal Housing Finance Board in cooperation with the Federal Deposit
Insurance Corporation.
2. Includes all fees, commissions, discounts, and " p o i n t s " paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rate on loans closed for purchase of newly built
homes, assuming prepayment at the end of ten years.
4. Average contract rates on new commitments for conventional first mortgages; from U.S. Department of Housing and Urban Development (HUD). Based
on transactions on the first day of the subsequent month.
5. Average gross yields on thirty-year, minimum-downpayment, first mortgages insured by the Federal Housing Administration (FHA) for immediate
delivery in the private secondary market. Based on transactions on first day of
subsequent month.
6. Average net yields to investors on fully modified pass-through securities
backed by mortgages and guaranteed by the Government National Mortgage
Association (GNMA), assuming prepayment in twelve years on pools of thirtyyear mortgages insured by the Federal Housing Administration or guaranteed by
the Department of Veterans Affairs.
7. Does not include standby commitments issued, but includes standby commitments converted.
8. Includes participation loans as well as whole loans.
9. Includes conventional and government-underwritten loans. The Federal
Home Loan Mortgage Corporation's mortgage commitments and mortgage transactions include activity under mortgage securities swap programs, while the
corresponding data for F N M A exclude swap activity.
A38
DomesticNonfinancialStatistics • August 1993
1.54 MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1992
Type of holder and property
1989
1990
1993
1991
Q1
Q2
Q3
Q4
Qlp
1 All holders
3,537,301 r
3,751,476 r
3,890,830"
3,933,754 r
3,967,017 r
4,003,714"
4,035,405"
4,059,391
By type of property
7 One- to four-family residences
3 Multifamily residences
4
5 Farm
2,392,742 r
307,045r
757,038r
80,476r
2,597,175 r
310,095r
765,458r
78,748 r
2,741,824 r
307,944r
761,782r
79,281r
2,788,987 r
308,514r
753,578 r
82,676 r
2,833,318 r
304,104 r
746,357 r
83,237 r
2,887,877"
300,728"
731,407"
83,702"
2,940,165"
293,376"
718,910"
82,953"
2,976,623
289,202
710,208
83,359
1,931,537
767,069
389,632
38,876
321,906
16,656
910,254
669,220
106,014
134,370
650
254,214
12,231
26,907
205,472
9,604
1,914,315
844,826
455,931
37,015
334,648
17,231
801,628
600,154
91,806
109,168
500
267,861
13,005
28,979
215,121
10,756
1,846,910
876,284
486,572
37,424
333,852
18,436
705,367
538,358
79,881
86,741
388
265,258
11,547
29,562
214,105
10,044
1,825,983
880,377
492,910
37,710
330,837
18,919
682,338
524,536
77,166
80,278
358
263,269
11,214
29,693
212,865
9,497
1,803,488
884,598
4%,518
38,314
330,229
19,538
659,624
508,545
74,788
75,947
345
259,266
10,676
29,425
210,139
9,026
1,793,505
891,484
506,658
38,985
325,934
19,906
648,178
501,604
73,723
72,517
334
253,843
10,451
28,804
205,709
8,878
1,769,058"
894,549"
511,976"
38,011"
324,681"
19,882"
627,972"
489,622"
69,791"
68,235"
324
246,537"
10,158"
27,997"
199,943"
8,439"
1,750,365
888,395
508,4%
37,814
322,166
19,919
620,755
486,126
67,491
66,812
327
241,214
9,830
27,454
195,816
8,114
22 Federal and related agencies
23
Government National Mortgage Association
24
One- to four-family
25
Multifamily
76
Farmers Home Administration
77
One- to four-family
78
Multifamily
79
Commercial
30
Farm
31
Federal Housing and Veterans' Administrations
37
One- to four-family
33
Multifamily
34
Resolution Trust Corporation
35
One- to four-family
36
Multifamily
37
Commercial
38
Farm
39
Federal National Mortgage Association
40
One- to four-family
41
Multifamily
Federal Land Banks
47
43
One- to four-family
44
45
Federal Home Loan Mortgage Corporation
46
One- to four-family
Multifamily
47
197,778
23
23
0
41,176
18,422
9,054
4,443
9,257
6,087
2,875
3,212
0
0
0
0
0
99,001
90,575
8,426
29,640
1,210
28,430
21,851
18,248
3,603
239,003
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
32,600
15,800
8,064
8,736
0
104,870
94,323
10,547
29,416
1,838
27,577
21,857
19,185
2,672
266,146r
19
19
0
41,713
18,496
10,141
4,905
8,171
10,733
4,036
6,697
45,822
14,535
15,018
16,269
0
112,283
100,387
11,8%
28,767r
1,693
27,074r
26,809
24,125
2,684
278,3%
19
19
0
41,791
18,488
10,270
4,%1
8,072
11,332
4,254
7,078
49,345
15,458
16,266
17,621
0
118,238
105,869
12,369
28,776
1,693
27,083
28,895
26,182
2,713
278,091 r
23
23
0
41,628
17,718
10,356
4,998
8,557
11,480
4,403
7,077
44,624
15,032
13,316
16,276
0
122,939"
110,223
12,716r
28,775
1,693
27,082
28,621
26,001
2,620
277,485
27
27
0
41,671
17,292
10,468
5,072
8,839
11,768
4,531
7,236
37,099
12,614
11,130
13,356
0
126,476
113,407
13,069
28,815
1,695
27,119
31,629
29,039
2,591
285,%5"
30"
30"
0
41,695
16,912
10,575
5,158
9,050
12,581
5,153
7,428
32,045
12,960"
9,621"
9,464"
0
137,584
124,016
13,568
28,365"
1,669"
26,6%"
33,665
31,032
2,633
288,199
45
37
8
41,724
16,418
10,679
5,226
9,402
13,950
6,159
7,791
27,331
11,375
8,070
7,886
0
141,192
127,252
13,940
28,536
1,679
26,857
35,421
32,831
2,589
48 Mortgage pools or trusts 5
49
Government National Mortgage Association
50
51
Multifamily
57
Federal Home Loan Mortgage Corporation
53
54
55
Federal National Mortgage Association
56
One- to four-family
Multifamily
57
58
Farmers Home Administration
59
One- to four-family
Multifamily
60
61
Commercial
Farm
67
63
Private mortgage conduits
One- to four-family
64
65
Commercial
66
Farm
67
917,848r
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33
48,299 r
43,325r
462
4,512
0
l,079,103 r
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26
59,232 r
53,335 r
731
5,166
0
1,250,666r
425,295
415,767
9,528
359,163
351,906
7,257
371,984
362,667
9,317
47
11
0
19
17
94,177r
84,000""
3,698
6,479
0
1,288,823
421,977
412,574
9,404
367,878
360,887
6,991
389,853
380,617
9,236
43
10
0
18
16
109,071
95,600
4,686
8,784
0
1,341,338
422,922
413,828
9,094
382,797
376,177
6,620
413,226
403,940
9,286
43
9
0
18
15
122,350
105,700
5,7%
10,855
0
1,385,460
422,255
413,063
9,192
391,762
385,400
6,362
429,935
420,835
9,100
41
9
0
18
14
141,468
123,000
5,7%
12,673
0
1,425,546
419,516
410,675
8,841
407,514
401,525
5,989
444,979
435,979
9,000
38
8
0
17
13
153,499
132,000
6,305
15,194
0
1,459,899
421,514
412,798
8,716
420,932
415,279
5,654
457,316
448,483
8,833
36
7
0
17
13
160,100
137,000
6,858
16,242
0
68
69
70
71
72
490,138r
303,181r
84,800"
86,310"
15,846r
519,055r
330,378r
86,695 r
87,905r
14,077r
527,108r
327,704r
84,842r
99,41 l r
15,150"
540,552 r
338,676r
84,932"
98,213 r
18,732r
554,836"
356,451"
83,617"
%,218"
18,549"
560,929
362,853
83,306
%,043
18,727
By type of holder
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
70
21
Commercial banks
One- to four-family
Multifamily
Multifamily
Life insurance companies
One- to four-family
Multifamily
Farm
Farm
1. Based on data from various institutional and governmental sources; figures
for 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 loans held by
bank trust departments.
3. Includes savings banks and savings and loan associations.
4. FmHA-guaranteed securities sold to the Federal Financing Bank were
reallocated from FmHA mortgage pools to FmHA mortgage holdings in 1986:4
because of accounting changes by the Farmers Home Administration.
544,100"
342,832"
84,698"
97,8%"
18,675"
547,263"
348,252"
84,272"
%,129"
18,610"
5. Outstanding principal balances of mortgage-backed securities insured or
guaranteed by the agency indicated.
6. 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 finance companies.
SOURCE. Line 64, Inside Mortgage Securities.
Consumer Installment
1.55
Credit
A39
CONSUMER INSTALLMENT CREDIT 1
Millions of dollars, amounts outstanding, end of period
1993
1992
Holder and type of credit
1990
1991
1992
Nov.
Jan.
Dec.
Feb.
Mar. r
Apr.
Seasonally adjusted
1 Total
738,765
733,510
741,093
736,023
741,093
744,196
748,765
751,727
754,006
2 Automobile
3 Revolving..
4 Other
284,739
222,552
231,474
260,898
243,564
229,048
259,627
254,299
227,167
258,860
252,086
225,077
259,627
254,299
227,167
258,463
256,435
229,299
260,945
259,378
228,443
261,449
260,990
229,288
261,868
262,624
229,514
Not seasonally adjusted
752,883
749,052
756,944
737,651
756,944
749,153
746,914
744,713
748,244
347,087
133,258
93,057
43,464
52,164
4,822
79,030
340,713
121,937
92,681
39,832
45,965
4,362
103,562
331,869
117,127
97,641
42,079
43,461
4,365
120,402
325,149
116,558
96,092
36,678
42,746
4,365
116,063
331,869
117,127
97,641
42,079
43,461
4,365
120,402
330,355
116,009
98,261
40,057
43,428
4,366
116,677
330,060
112,686
98,785
38,462
43,516
4,148
119,257
329,764
111,854
99,778
38,030
43,255
4,080
117,952
331,072
112,4%
101,534
38,218
43,344
4,280
117,300
By major type of credit*
13 Automobile
14
Commercial banks
15
Finance companies
16
Pools of securitized assets
284,903
124,913
75,045
24,620
261,219
112,666
63,415
28,915
259,964
109,743
57,605
33,878
259,148
109,459
58,386
32,979
259,964
109,743
57,605
33,878
257,744
109,671
57,165
32,388
259,344
111,005
54,036
36,031
259,089
111,287
53,508
36,0%
260,266
111,384
53,986
36,178
17 Revolving
18
Commercial banks
19
Retailers
20
Gasoline companies
21
Pools of securitized assets
234,801
133,385
38,448
4,822
45,637
256,876
138,005
34,712
4,362
63,595
267,949
132,582
36,629
4,365
74,243
252,877
127,481
31,444
4,365
70,889
267,949
132,582
36,629
4,365
74,243
261,217
129,567
34,666
4,366
71,927
258,430
127,877
33,110
4,148
72,024
257,544
128,079
32,681
4,080
70,890
258,940
129,455
32,838
4,280
69,919
22 Other
23
Commercial banks
24
Finance companies
25
Retailers
26
Pools of securitized assets
233,178
88,789
58,213
5,016
8,773
230,957
90,042
58,522
5,120
11,052
229,031
89,544
59,522
5,450
12,281
225,626
88,209
58,172
5,234
12,195
229,031
89,544
59,522
5,450
12,281
230,192
91,117
58,844
5,391
12,362
229,141
91,178
58,651
5,352
11,202
228,080
90,398
58,346
5,349
10,966
229,038
90,233
58,510
5,380
11,203
5 Total
6
7
8
9
10
11
12
By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets 2 . .
1. The Board's series on amounts of credit covers 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.
Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering 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.
1.56 TERMS OF CONSUMER INSTALLMENT CREDIT 1
Percent per year except as noted
1993
1992
1990
Item
1991
1992
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
INTEREST R A T E S
Commercial
banks2
48-month new car
24-month personal
120-month mobile home
Credit card
Auto
n.a.
n.a.
n.a.
n.a.
8.60
13.55
12.36
17.38
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
8.57
13.57
12.38
17.26
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
12.41
15.60
9.93
13.80
9.51
13.37
9.65
13.37
9.65
13.66
10.08
13.72
10.32
13.90
9.95
13.21
9.61
12.74
55.1
47.2
54.0
47.9
54.1
47.9
54.1
47.8
53.6
47.7
53.9
49.2
54.3
49.0
54.6
49.0
54.5
48.9
87
95
OTHER TERMS
88
%
89
97
89
97
89
97
90
97
90
97
91
98
90
98
90
98
12,071
8,289
12,494
8,884
13,584
9,119
13,885
9,373
14,043
9,475
14,315
9,464
13,975
9,472
13,849
9,457
14,013
9,641
14,021
9,731
3
(months)
Loan-to-value
ratio
10 Used car
Amount
9.29
14.04
12.67
17.78
companies
6 Used car
Maturity
11.14
15.18
13.70
18.23
12.54
15.99
finance
11.78
15.46
14.02
18.17
54.6
46.0
1
2
3
4
financed
(dollars)
12 Used car
1. Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.
2. Data are available for only the second month of each quarter,
3. At auto finance companies.
A40
1.57
DomesticNonfinancialStatistics • August 1993
FUNDS RAISED IN U.S. CREDIT MARKETS 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1992"
1991
1988
1989
1990
1991r
1992r
Q2
Q3
Q4
Qi
Q2
Q3
Q4
Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors ..
775.8
740.8
665.0
461.0
574.4
548.6r
411.5"
403.8"
672.2
560.3
486.7
578.2
By sector and instrument
2 U.S. government
3 Treasury securities
4
Agency issues and mortgages
155.1
137.7
17.4
146.4
144.7
1.6
246.9
238.7
8.2
278.2
292.0
-13.8
304.0
303.8
.2
276.7
282.9
-6.2
288.4
317.2
-28.8
320.4
316.6
3.8
368.9
380.1
-11.2
351.9
351.5
.4
193.4
184.4
9.0
301.7
299.1
2.7
5 Private
620.7
594.4
418.2
182.8
270.4
271.9"
123.1"
83.4"
303.3
208.5
293.2
276.5
6
7
8
9
10
11
17
13
14
15
16
By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c
Open market paper
Other
53.7
103.1
317.3
241.8
16.7
60.8
-2.1
50.1
41.0
11.9
43.6
65.0
73.8
303.0
245.3
16.4
42.7
-1.5
41.7
40.2
21.4
49.3
51.2
47.1
244.0
219.4
3.7
21.0
-.1
17.5
4.4
9.7
44.2
45.8
78.8
138.5
144.6
-2.4
-4.3
.5
-13.1
-33.3
-18.4
-15.6
53.3
67.3
140.9
198.3
-14.6
-42.9
.1
9.3
-17.7
8.6
8.6
48.5
96.5
187.8r
166.0"
15.3"
6.6"
-.1"
-6.6"
-34.5
-15.9
-4.1"
53.5
81.6
53.3"
135.4"
-36.3"
-45.3"
-.4"
-24.8"
-18.2
-36.3
13.8"
45.5
60.2
106.3"
128.4"
10.2"
-32.4"
.0
-11.9"
-65.3"
-7.0
-44.3"
52.0
76.3
194.1
225.0
2.4
-32.5
-.8
-2.0
-22.9
13.3
-7.5
73.0
77.8
96.5
140.9
-17.7
-28.9
2.2
-15.5
-22.9
-3.1
2.7
52.3
61.3
140.9
212.6
-13.6
-60.0
1.9
9.2
-4.5
.5
33.5
35.9
53.7
132.3
214.9
-29.5
-50.1
-3.0
45.6
-20.6
23.8
5.8
17
18
19
70
21
22
By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
48.9
318.6
253.1
-7.5
61.8
198.8
63.2
305.6
225.6
1.6
50.4
173.6
48.3
254.2
115.6
2.5
26.7
86.4
38.5
160.2
-15.9
2.2
-23.4
5.3
47.0
222.6
.8
.0
-40.1
40.9
38.6
197.9"
35.4"
2.7"
10.4"
22.3"
37.6
148.3"
-62.8"
1.9"
-65.8"
1.2"
41.9
136.5"
-95.0"
-2.2
-51.9"
-40.9"
46.1
231.5
25.8
-1.4
-22.9
50.0
63.4
157.9
-12.9
6.6
-49.9
30.5
50.0
238.0
5.2
1.0
-38.6
42.8
28.6
262.8
-14.9
-6.2
-49.0
40.3
23 Foreign net borrowing in United States
74 Bonds
75
Bank loans n.e.c
26 Open market paper
27
U.S. government loans
6.4
6.9
-1.8
8.7
-7.5
10.2
4.9
-.1
13.1
-7.6
23.9
21.4
-2.9
12.3
-6.9
14.1
14.9
3.1
6.4
-10.2
23.9
17.8
2.3
5.2
-1.4
-63.2
10.6
-3.5
-51.9
-18.3
15.6
15.5
1.4
16.0
-17.2
41.0
22.3
6.5
14.9
-2.7
9.7
4.9
1.5
-8.0
11.4
55.2
21.9
14.1
27.8
-8.5
29.5
21.0
3.9
13.1
-8.6
1.1
23.5
-10.3
-12.1
.0
28 Total domestic plus foreign
782.2
750.9
688.9
475.1
598.2
485.4r
427.1r
444.8"
681.8
615.5
516.2
579.3
Financial sectors
29 Total net borrowing by financial sectors
30
31
32
33
By instrument
U.S. government-related
Sponsored-credit-agency securities
Mortgage pool securities
Loans from U.S. government
34 Private
35 Corporate bonds
36 Mortgages
37 Bank loans n.e.c
38 Open market paper
39 Loans from Federal Home Loan Banks
40
41
47
43
44
45
46
47
48
49
By borrowing sector
Sponsored credit agencies
Mortgage pools
Private
Commercial banks
Bank affiliates
Savings and loan associations
Mutual savings banks
Finance companies
Real estate investment trusts (REITs)
Securitized credit obligation (SCO) issuers
211.4
220.1
187.1
138.4
226.0
113.1"
146.0"
170.0"
155.9
233.8
277.7
236.4
119.8
44.9
74.9
.0
151.0
25.2
125.8
.0
167.4
17.1
150.3
-.1
150.0
9.2
140.9
.0
167.1
40.2
126.9
.0
129.4
-29.7
159.0
.0
156.0
20.6
135.5
.0
158.5
32.6
125.9
-.1
137.4
11.5
125.9
.0
222.8
48.3
174.4
.0
165.6
67.7
97.9
.0
142.7
33.5
109.2
.0
91.7
16.2
.3
.6
54.8
19.7
69.1
46.8
.0
1.9
31.3
-11.6
54.3
.9
3.2
-32.0
-38.0
58.8
51.5
.0
7.2
-.7
.8
-16.3"
79.5"
.9
-2.9
-46.0
-47.7
-10.0"
31.8"
.4
10.2
-16.7
-35.7
11.6"
50.6"
2.1"
4.5
-12.7
-33.0
18.5
11.4
-.4
8.2
8.8
-9.5
11.0
-11.0
19.7
34.4
.3
1.2
8.6
-24.7
112.1
73.5
.3
5.4
11.6
21.3
93.7
106.1
.2
11.3
-9.7
-14.2
44.9
74.9
91.7
-3.0
5.2
19.9
1.9
31.5
3.6
32.5
25.2
125.8
69.1
-1.4
6.2
-14.1
-1.4
59.7
-1.9
22.0
17.0
150.3
19.7
-1.1
-27.7
-29.9
-.5
35.6
-1.9
45.2
9.1
140.9
-11.6
-13.3
-2.5
-39.5
-3.5
7.8
.9
38.5
40.2
126.9
58.8
4.5
2.3
-4.7
1.8
16.4
.6
38.0
-29.7
159.0
-16.3"
-11.7
-3.5
-48.7
-1.7
2.7"
.1
46.4"
20.6
135.5
-10.0"
-9.2
-6.8
-41.1
-5.5
11.8"
-.3
41.1"
32.5
125.9
11.6"
-14.1
9.6
-25.1
-8.7
12.8"
3.6"
33.3"
11.5
125.9
18.5
7.2
2.7
-20.3
4.3
1.1
1.1
22.4
67.7
97.9
112.1
1.6
10.5
10.0
8.3
28.6
1.3
52.0
33.5
109.2
93.7
8.3
4.0
-11.2
-5.6
55.9
-.9
43.2
14.9
.1
3.9
-13.4
5.7
48.3
174.4
11.0
.8
-8.2
2.7
.3
-20.0
.9
34.5
Flow of Funds
A41
1.57—Continued
1992r
1991
Transaction category or sector
1988
1989
1990
1991r
1992r
Q2
Q3
Q4
QL
Q2
Q3
Q4
All sectors
50 Total net borrowing, all sectors
993.6
971.0
876.0
613.5
824.2
598.5r
573.l r
614.8r
837.8
849.4
793.9
815.7
51
52
53
54
55
56
57
58
274.9
53.7
126.3
317.5
50.1
39.9
75.4
55.8
297.3
65.0
125.5
303.0
41.7
41.9
65.9
30.6
414.4
51.2
102.9
244.3
17.5
2.8
30.7
12.4
428.3
45.8
147.9
139.4
-13.1
-26.9
-44.0
-63.9
471.1
53.3
136.6
141.0
9.3
-8.2
13.1
8.0
406.1
48.5
186.6r
188.8r
-6.6r
-40.9
-113.8
-70. lr
444.4
53.5
128.9r
53.7r
-24.8 r
-6.7
-37.0
-39.0"
479.0
45.5
133.2r
108.4r
-11.9 r
-54.3 r
-4.9
-80. lr
506.3
52.0
92.6
193.6
-2.0
-13.2
14.1
-5.6
574.7
73.0
114.5
96.6
-15.5
-4.9
11.2
-.2
359.0
52.3
155.8
141.1
9.2
4.9
25.2
46.3
444.4
35.9
183.3
132.5
45.6
-19.6
2.0
-8.4
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
External corporate equity funds raised in United States
59 Total net share issues
-118.4
-65.7
22.1
198.9
279.6
182.3
232.5
268.5'
263.6
291.7
286.8
276.5
60 Mutual funds
61 All other
62
Nonfinancial corporations
Financial corporations
63
64
Foreign shares purchased in United States
6.1
-124.5
-129.5
4.1
.9
38.5
-104.2
-124.2
2.7
17.2
67.9
-45.8
-63.0
9.8
7.4
150.5
48.4
18.3
.0
30.2
215.4
64.3
26.8
6.4
31.2
125.6
56.7
12.0
8.1
36.6
182.5
50.0
19.0
-3.2
34.1
195.9
72.6r
48.0
1.7r
22.9
183.5
80.1
46.0
4.1
29.9
236.2
55.5
36.0
8.5
233.3
53.6
208.4
68.1
14.0
5.0
49.1
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.2 through F.5. For ordering address, see inside front cover.
11.0
11.0
7.9
34.7
A42
D o m e s t i c Financial Statistics
•
A u g u s t 1993
1.58 SUMMARY OF FINANCIAL TRANSACTIONS1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates
1991
1988
Transaction category or sector
1989
1990
Q2
N E T L E N D I N G IN CREDIT M A R K E T S
Q3
Q4
Ql
Q2
Q3
Q4
2
1 Total net lending in credit markets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
1992'
1992'
1991
Private domestic nonfinancial sectors
Households
Nonfarm noncorporate business
Nonfinancial corporate business
State and local governments
U.S. government
Foreign
Financial sectors
Sponsored credit agencies
Mortgage pools
Monetary authority
Commercial banking
U.S. commercial banks
Foreign banking offices
Bank affiliates
Banks in U . S . possession
Private nonbank finance
Thrift institutions
Savings and loan associations
Mutual savings banks
Credit unions
Insurance
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds . .
Finance n.e.c
Finance companies
Mutual funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Securitized credit obligation (SCOs) issuers
613.5 r
993.6
971.0
226.2
198.9
3.1
5.7
18.6
-10.6
96.3
681.8
37.1
74.9
10.5
157.1
127.1
29.4
-.1
.7
402.2
119.0
87.4
15.3
16.3
186.2
103.8
29.2
18.1
35.1
96.9
49.2
11.9
10.7
.9
-8.2
32.5
209.6
203.8
31.8R
179.5
172.3
,4R
-.8
-1.4
-2.3 R
12.9
6.6
17.5
17.9
26.2
16.3
-3.1
33.7
10.0
74.1
58.4
42.6 r
690.4
580.2
529. l
-.5
16.4
14.2
125.8
150.3
140.9
-7.3
8.1
31.1
176.8
125.4
84.0
145.7
95.2
38.9
26.7
28.4
48.5
2.8
-2.8
-1.5
1.6
4.5
-1.9
395.7
279.9
259.0"
-91.0 -151.9 -144.9
-93.9 -143.9 -140.9
-4.8
-16.5 -15.5
7.7
8.5
11.5R
207.7
188.5 219.5
93.1
94.4
83.2
29.7
26.5
34.7 R
36.2
16.6
64.7
48.7
51.0
37.0R
278.9
243.3
184.4R
69.3
41.6 -22.5
23.8
41.4
90.3
67.1
80.9
30.1
.5
-.7
-1.0"
96.3
34.9
49.0R
22.0
45.2
38.5
876.0
R
824.2
837.8
849.4
793.9
815.7
162.4
-131.1' -25.9'
-170.1' -67.8'
181.9
-2.8'
-1.9
-1.9F
28.8'
26.6'
-1.4
12.1
18.2
-16.1
-2.1
13.9
-17.9
37.3
88.4
71.0
669.0' 587.6'
573.0
31.7'
19.7'
93.1
135.5
125.9
125.9
48.1
33.2
22.3
82.4
104.3
98.9
26.5
91.9
45.6
56.7
61.3
.6
2.4
-1.1
6.4
-3.3
-1.5
.0
371.3' 315.3'
222.0
-176.8
-49.5' -113.1
-156.3
-83.3 -137.9
-30.8
11.5
7.6
10.3
22.3'
17.2
110.7
259.0' 159.2'
73.8
13.2
80.6
36.8
32.1R
33.1
115.0'
-32.2
%.9
33.4
17.0
29.2
289.2' 205.6'
224.4
-5.4' -54.9'
39.2
117.1
99.1
124.8
1.1
53.8
65.8
-.6
.3
135.8
50.5
-2.4
41.1'
22.4
33.3'
118.0
105.3
-2.6
11.8
3.4
-24.9
139.2
617.0
39.9
174.4
9.8
58.4
.5
58.6
-.6
-.1
334.5
-81.4
-92.4
-7.4
18.5
183.9
81.9
22.2
49.7
30.0
232.0
-22.3
169.0
-24.8
2.6
73.0
34.5
-166.4
-159.0
-2.2
10.6
-15.9
-27.0
63.4
924.0
76.5
97.9
10.8
157.4
132.0
6.5
18.5
.4
581.3
-40.5
-38.5
-13.0
11.0
247.1
96.5
2.5
109.8
38.2
374.8
8.5
150.7
-16.3
-.3
180.3
52.0
186.1
191.5
-2.2
14.3
-17.6
-12.8
90.3
552.1
65.3
109.2
57.8
53.1
53.4
.4
-1.6
.8
266.8
-11.8
-38.1
7.4
18.9
174.0
99.9
11.2
20.3
42.6
104.5
60.5
110.4
-19.2
-.1
-90.2
43.2
837.8
849.4
793.9
815.7
3.5
.1
30.5
125.5
55.4
73.5
88.6
-29.9
-78.8
110.2
10.2
-26.9
183.5
80.1
-72.1
71.1
10.6
-16.7
181.9
-6.5
.3
28.4
178.6
22.1
-77.2
92.8
-89.3
-104.9
-42.3
118.9
-52.5
236.2
55.5
-5.3
38.8
9.4
10.7
260.8
1,564.6
1,601.2
2,099.8
1,433.0
4.4
16.7
24.3
-11.7
2.5
-7.8
-5.3
-13.9
55.3
15.3
1.1
17.7
-.1
.2
44.0
11.4
182.3
-.4
13.4
-46.5
1.6
-119.0
-.1
-15.1
86.3
24.5
-95.7
-.3
-2.6
26.1
15.3
27.6
-.1
-17.7
-19.8
16.3
32.8
785.1' 1,568.1' 1,325.7'
1,670.2
1,618.4
1,997.7
1,387.6
598.5'
75.0
202.2'
79.9
191.6'
-2.2
-2.5'
8.8
23.6'
-11.5 -10.6
-12.7
24.8
95.3
51.4
666.5
320.2'
68.7 -22.3'
126.9
159.0
27.9
-4.0
91.9
34.7
69.5
6.4
16.5
33.7
5.7
-2.6
.3
-2.8
351.1
152.8'
-61.7 -164.8
-76.7 -144.0
-1.4 -31.1
16.4
10.2
178.9
212.0'
89.7
132.8
17.3
37.0
36.9
-6.8'
35.0
49.0
233.9
105.6'
R
21.5 -14.0
132.3
75.3
1.3 -68.9
.6
-.1
40.2
66.8
38.0
46.4'
573.1'
614.8'
RELATION O F LIABILITIES
TO FINANCIAL ASSETS
35 Net flows through credit markets
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
Other financial sources
Official foreign exchange
Treasury currency and special drawing rights
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Corporate equities
Security credit
Trade debt
Taxes payable
Noncorporate proprietors' equity
Miscellaneous
55 Total financial sources
Floats not included in assets ( - )
56 U . S . government checking deposits
57 Other checkable deposits
58 Trade credit
59
60
61
62
63
Liabilities not identified as assets ( - )
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous
64 Totals identified to sectors as assets
993.6
971.0
876.0
613.5 r
824.2
598.5'
573.1'
4.0
.5
25.3
193.6
2.9
259.9
43.2
120.8
53.6
21.9
23.5
-3.1
6.1
-124.5
3.0
89.2
5.3
-31.2
222.3
24.8
4.1
28.8
221.4
-16.5
290.0
6.1
96.7
17.6
90.1
78.3
1.1
38.5
-104.2
15.6
60.0
2.0
-32.5
269.9
2.0
2.5
25.7
186.8
34.2
96.8
44.2
59.9
-66.7
70.3
-23.5
12.6
67.9
-45.8
3.5
44.1
-.5
-39.3
120.5
-5.9
.0
24.5 R
268.6
-3.7
61.1
75.8
16.7
-60.9
41.2
-16.4
4.6
150.5R
48.4
51.4
10.4
-9.0 R
-2.7 R
136.8
-1.6
-1.8
29.9
232.9
50.5
14.5
122.7
-61.1
-79.7
3.9
34.1
-5.5
215.4
64.3
4.2
52.5
7.8
-4.3
186.3
-4.8
.4
31.4
190.4'
-79.6
-75.4
7.9
-1.1
-63.0
-58.7
43.1
-3.6
125.6
56.7
20.1
41.2
-11.4
-35.2'
88.6'
-15.5
-5.0
.4
.5
19.4
19.2
344.1' 244.2'
99.9
-32.5
27.3
47.8
104.5
114.4
-42.4
13.0
-78.1 -117.4
4.0
26.8
36.3
16.0
3.0
-5.0
182.5
195.9
50.0
72.6'
82.4
120.7
47.6
-7.3
13.1
-3.2
43.2'
4.8'
39.0' 204.4'
1,650.2
1,772.7
1,374.3 1,343.9'
1,674.7
1.6
.8
-.9
8.4
-3.2
.6
3.3
2.5
21.5
-13.1
2.0
15.0"
.7
1.6
22.4
-.1
-3.0
-29.8
6.3
4.4
-.2
-4.4
23.9
2.3
-95.6
.2
1.6
-34.8
6.5
-13.8
-.6
26.2
10.4
5.6
-34.1'
-.2
-5.5
11.5
14.4
-38.6
1,670.7
1,841.0
1,387.5 1,332.5'
1,668.5
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.6 and F.7. For ordering address, see inside front cover.
614.8'
946.6' 1,506.5' 1,477.1'
15.6
3.0
35.3'
-.3
20.8
76.2
2.0
23.9
-2.1
23.8'
-.2
28.4
36.9
23.4
-195.7'
-73.1
-6.1
-7.1'
2. Excludes corporate equities and mutual fund shares,
5.1
-8.5
-7.7
.2
27.5
33.3
301.6
325.8
6.4
118.0
194.2 -132.4
106.8
202.7
-42.1
-83.0
-80.4
-54.8
-39.1
-13.0
-69.7
77.1
-8.0
65.2
208.4
233.3
68.1
53.6
9.3
84.9
35.1
64.8
11.7
-.6
7.0
-18.2
77.3
225.2
Flow of Funds
1.59
A43
SUMMARY OF CREDIT MARKET DEBT OUTSTANDING 1
Billions of dollars, end of period
1992r
1991
Transaction category or sector
1989
1990
r
1991
1992r
Q1
Q2
Q3
Q4
11,222.9
11,353.6
11,488.0
11,634.5
11,801.3
Q4 r
Q3
Q2
Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
10,087.1
10,760.8
11,222.9
By lending sector and instrument
2 U.S. government
3 Treasury securities
Agency issues and mortgages
4
2,251.2
2,227.0
24.2
2,498.1
2,465.8
32.4
2,776.4
2,757.8
18.6
3,080.3
3,061.6
18.8
2,591.9
2,567.1
24.8
2,687.2
2,669.6
17.6
2,776.4
2,757.8
18.6
2,859.7
2,844.0
15.8
2.923.3
2.907.4
15.9
2,998.9
2,980.7
18.1
3,080.3
3,061.6
18.8
5 Private
7,835.9
8,262.6
8,446.6
8,720.9
8,379.6"
8,408.0"
8,446.6
8,493.9
8,564.7
8,635.6
8,720.9
11,801.3 10,971.5" 11,095.2"
6
7
8
9
10
11
12
13
14
15
16
By instrument
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Consumer credit
Bank loans n.e.c.
Open market paper
Other
1.004.4
926.1
3.647.5
2,515.1
304.4
742.6
85.3
791.8
760.7
107.1
598.4
1,055.6
973.2
3,907.3
2,760.0
305.8
757.6
84.0
809.3
758.0
116.9
642.6
1,101.4
1,051.9
4,045.7
2,904.6
303.3
753.3
84.5
799.9
724.7
98.5
624.5
1,154.7
1,119.2
4,190.2
3,102.9
288.7
710.4
88.2
809.2
707.0
107.1
633.5
1,072.5
1,016.5
4,005.0"
2,837.9"
309.8"
772.7"
84.6"
791.1"
742.0
119.4
633.1"
1,089.3
1,036.9
4,020.3"
2,873.6"
300.8"
761.4"
84.5"
790.1"
734.1
107.0
630.3"
1,101.4
1,051.9
4,045.7
2,904.6
303.3
753.3
84.5
799.9
724.7
98.5
624.5
1,111.5
1,071.0
4.088.7
2.951.8
303.9
745.2
87.9
777.6
713.7
110.4
620.8
1,128.6
1,090.4
4,122.0
2,9%. 1
299.5
737.9
88.5
776.9
710.3
112.0
624.5
1,145.6
1,105.8
4.158.6
3.050.7
2%.l
722.9
88.9
784.5
705.7
108.2
627.3
1,154.7
1,119.2
4,190.2
3,102.9
288.7
710.4
88.2
809.2
707.0
107.1
633.5
17
18
19
20
21
22
By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
815.7
3.508.2
3,512.0
139.2
1,177.5
2.195.3
864.0
3,780.6
3,618.0
140.5
1,204.2
2,273.4
902.5
3.944.5
3.599.6
140.1
1.180.7
2,278.7
949.6
4,167.0
3,604.3
143.8
1,140.6
2,319.9
878.5
3,853.6"
3,647.4"
140.4"
1,211.0"
2,296.1"
891.4
3,897.0"
3,619.6"
141.7"
1,191.3"
2,286.7"
902.5
3.944.5
3.599.6
140.1
1.180.7
2,278.7
911.3
3,970.3
3,612.3
141.3
1,174.5
2,296.5
925.9
4,023.0
3,615.8
145.1
1,163.5
2,307.2
942.3
4,087.8
3,605.5
146.2
1,150.8
2,308.5
949.6
4,167.0
3,604.3
143.8
1,140.6
2,319.9
254.8
278.6
292.7
307.3
277.6
282.2
292.7
282.3
298.3
306.6
307.3
142.0
23.9
77.7
63.7
23 Foreign credit market debt held in
United States
24
25
26
27
Bonds
Bank loans n.e.c
Open market paper
U.S. government loans
28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign
88.0
21.4
63.0
82.4
109.4
18.5
75.3
75.4
124.2
21.6
81.8
65.2
142.0
23.9
77.7
63.7
10,341.9
11,039.4
11,515.7
12,108.6
114.8
19.7
74.0
69.1
124.2
21.6
81.8
65.2
125.4
22.0
70.5
64.4
130.9
25.5
77.4
64.5
136.2
26.5
80.7
63.3
11,515.7
11,635.9
11,786.3
11,941.1
12,108.6
U8.6
20.0
78.0
65.6
11,249.1" 11,377.5"
Financial sectors
29 Total credit market debt owed by
financial sectors
2,333.0
2,524.2
2,670.3
2,897.0
2,580.8"
2,618.4"
2,670.3
2,701.2
2,758.1
2,828.6
2,897.0
By instrument
30 U.S. government-related
31 Sponsored credit-agency securities
32 Mortgage pool securities
33 Loans from U.S. government
34 Private
35 Corporate bonds
36 Mortgages
37 Bank loans n.e.c
38 Open market paper
39 Loans from Federal Home Loan Banks...
1,249.3
373.3
871.0
5.0
1,083.7
491.9
3.4
37.5
409.1
141.8
1,418.4
393.7
1,019.9
4.9
1,105.8
528.2
4.2
38.6
417.7
117.1
1,574.3
402.9
1,166.7
4.8
1,095.9
584.2
5.1
41.8
385.7
79.1
1,741.5
443.1
1,293.5
4.8
1,155.6
627.2
5.1
49.0
394.3
79.9
1,489.6
389.6
1,095.2
4.9
1,091.3"
564.9"
4.5
37.0
390.1
94.7
1,531.1
394.7
1,131.5
4.9
1,087.3"
572.8"
4.6
39.0
387.0
83.9
1,574.3
402.9
1,166.7
4.8
1,095.9
584.2
5.1
41.8
385.7
79.1
1,603.8
405.7
1,193.2
4.8
1,097.4
581.3
5.0
41.6
393.2
76.3
1,658.3
417.8
1,235.6
4.8
1,099.8
583.7
5.0
43.7
390.5
76.9
1,702.0
434.7
1,262.5
4.8
1,126.6
602.3
5.1
44.5
394.6
80.2
1,741.5
443.1
1,293.5
4.8
1,155.6
627.2
5.1
49.0
394.3
79.9
By borrowing sector
40 Sponsored credit agencies
41 Mortgage pools
42 Private financial sectors
43 Commercial banks
44 Bank affiliates
45 Savings and loan associations
46 Mutual savings banks
47 Finance companies
48 Real estate investment trusts (REITs)
49 Securitized credit obligation (SCO) issuers,
378.3
871.0
1,083.7
77.4
142.5
145.2
17.2
504.2
10.1
187.1
398.5
1,019.9
1,105.8
76.3
114.8
115.3
16.7
539.8
10.6
232.3
407.7
1,166.7
1,095.9
63.0
112.3
75.9
13.2
547.5
12.3
271.9
447.9
1,293.5
1,155.6
67.4
114.6
71.1
15.1
563.8
13.6
309.9
394.4
1,095.2
1,091.3"
65.9
113.3
91.0
16.6
540.0"
11.0
253.3"
399.5
1,131.5
1,087.3"
64.6
110.6
79.0
15.2
543.3"
11.2
263.6"
407.7
1,166.7
1,095.9
63.0
112.3
75.9
13.2
547.5
12.3
271.9
410.5
1,193.2
1,097.4
60.8
115.0
71.2
13.5
546.7
12.7
277.5
422.6
1,235.6
1,099.8
61.7
112.7
70.3
14.3
541.6
13.2
286.1
439.5
1,262.5
1,126.6
63.3
114.4
70.9
16.2
549.1
13.7
299.1
447.9
1,293.5
1,155.6
67.4
114.6
71.1
15.1
563.8
13.6
309.9
13,830.0" 13,995.8"
14,186.0
14,337.1
14,544.4
14,769.7
15,005.6
4,213.5
1,089.3
1,728.3"
4,024.9"
790.1"
793.2
572.0
784.7"
4,345.9
1,101.4
1,760.4
4,050.8
799.9
788.2
565.9
773.5
4,458.7
1,111.5
1,777.8
4,093.8
777.6
777.3
574.1
766.3
4,576.8
1,128.6
1,805.0
4,127.0
776.9
779.5
579.9
770.7
4,6%.0
1,145.6
1,844.2
4,163.7
784.5
776.6
583.6
775.5
4,817.0
1,154.7
1,888.5
4,195.4
809.2
780.0
579.0
781.9
All sectors
50 Total credit market debt, domestic and foreign
51
52
53
54
55
56
57
58
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
12,674.9
13,563.6
14,186.0
15,005.6
3,495.6
1,004.4
1,506.0
3,650.9
791.8
819.6
579.2
827.5
3,911.7
1,055.6
1,610.7
3,911.5
809.3
815.1
609.9
839.9
4,345.9
1,101.4
1,760.4
4,050.8
799.9
788.2
565.9
773.5
4,817.0
1,154.7
1,888.5
4,195.4
809.2
780.0
579.0
781.9
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables L.2 through L.4. For ordering address, see inside front cover.
4,076.6
1,072.5
1,6%. 1"
4,009.5"
791.1"
798.7
583.6
801.9"
A44
1.60
DomesticNonfinancialStatistics • August 1993
SUMMARY OF FINANCIAL ASSETS AND LIABILITIES 1
Billions of dollars except as noted, end of period
1992r
1991
1989
Transaction category or sector
1990
1992r
1991
CREDIT M A R K E T D E B T O U T S T A N D I N G
Q4
Q3
Q2
QI
Q2
Q3
Q4
2
R
1 Total credit market assets
7 Private domestic nonfinancial sectors
Households
4
Nonfarm noncorporate business
5
Nonfinancial corporate business
6
State and local governments
7 U . S . government
8
9
10
Sponsored credit agencies
Mortgage pools
11
1?
Monetary authority
Commercial banking
N
14
U.S. commercial banks
IS
Foreign banking offices
16
Bank affiliates
17
Banks in U.S. possession
18
Private nonbank finance
19
Thrift institutions
20
Savings and loan associations
?1
Credit unions
??
?3
74
Life insurance companies
75
Other insurance companies
76
Private pension funds
State and local government retirement funds.
77
78
79
Finance companies
30
Mutual funds
31
Money market funds
3?
Real estate investment trusts (REITs) . . . .
33
Brokers and dealers
34
Securitized credit obligation (SCOs) issuers .
R
R
R
12,674.9 13,563.6 14,186.0
15,005.6 I3,830.0 13,995.8 14,186.0
14,337.1 14,544.4 14,769.7 15,005.6
2,644.2 2,552.8 r
1,882.3 l,760.5 r
55.0
52.6 r
186.9
203.4 r
536.2
519.9
238.7
246.2
792.4
835.1
9,888.3 10,552.0 r
383.6
397.7
1,019.9 1,166.7
241.4
272.5
2,769.3 2,853.3
2,463.6 2,502.5
270.8
319.2
13.4
11.9
21.6
19.7
5,474.1 5,861.7 r
1,335.5 l,190.7 r
945.1
804.2
227.1
211.5
163.4
174.9
2,329.1 2,676.8 r
1,116.5 1,199.6
378.7
344.0
431.3
624.2 r
437.4
474.3
1,809.4 l,994.3 r
658.7
635.5 r
360.2
450.5
372.7
402.7
7.7
6.8 r
177.9
226.9
232.3
271^
2,622.8 2,670.7 r 2,666.2 r 2,552.8 r
1,835.5 1,901 ^ l,897.3 r l,760.5 r
52.6 r
52.6 r
50.4
53. l r
203.4 r
186.3r
212.3
187^
530.0
536.2
524.7
528.8
246.2
233.5
252.9
252.0
817.2
835.1
930.8
807.9
11,218.5 10,098.5r 10,260.3 r 10,552.0 r
466.4
382.7 r
389.0 r
397.7
1,131.5
1,166.7
1,293.5 1,095.2
272.5
300.4
253.7
264.7
2,817.8
2,853.3
2,945.2 2,7%.6
2,502.5
2,571.9 2,480.0 2,488.7
297.5
319.2
335.8
284.4
11.6
11.9
17.6
11.3
20.0
20.9
20.0
19.7
6,212.9 5,570.3 r 5,657.2 r 5,861.7 r
1,205.1
l,190.7 r
1,129.0 1,248.4
826.1
727.5
866.3
804.2
208.7
211.5
210.2
216.4
191.3
165.7
170.2
174.9
2,855.7 2,444.7 r 2,508.7 r 2,676.8 r
1,289.4 1,183.7
1,201.4
1,199.6
370.7
378.7
396.0
361.4
661.1
437.8 r
466.6 r
624.2 r
509.3
461.7
470.1
474.3
2,228.2 l,877.2 r l,943.5 r l,994.3 r
647.5 r
635.5 r
656.9
651.9 r
421.4
450.5
582.8
394.4
389.5
402.7
404.1
389.9
7.4
7.2
6.8 r
7.4
267.1
214.3
226.9
180.4
309.9
263.6 r
271.9 r
253.3 r
2,559.5
1,784.6
51.4
192.1
531.4
250.2
857.2
10,670.2
419.9
1,193.2
271.8
2,860.6
2,514.0
313.3
13.6
19.7
5,924.8
1,161.8
771.1
213.4
177.3
2,709.0
1,224.3
387.0
616.1
481.6
2,053.9
640.5
478.8
424.0
6.8
226.3
277.5
2,440.5
1,710.1
56.4
180.3
493.7
205.1
734.2
9,295.1
367.2
871.0
233.3
2,643.9
2,368.4
242.3
16.2
17.1
5,179.7
1,484.9
1,088.9
241.1
154.9
2,140.3
1,013.1
317.5
394.7
414.9
1,554.5
617.1
307.2
291.8
8.4
142.9
187.1
2,561.6
1,773.4
50.8
204.2
533.3
245.3
892.0
10,845.5
429.0
1,235.6
282.6
2,882.9
2,521.9
328.2
13.1
19.7
6,015.4
1,143.1
748.8
211.6
182.7
2,757.3
1,247.1
392.5
628.5
489.1
2,115.0
641.2
522.0
413.5
7.5
244.6
286.1
2,551.6
1,776.1
50.2
197.7
527.6
238.1
908.2
11,071.8
446.3
1,262.5
285.2
2,922.9
2,556.7
328.9
17.5
19.8
6,155.0
1,133.7
737.9
208.3
187.4
2,818.1
1,270.3
393.1
656.0
498.7
2,203.1
640.7
557.5
408.8
7.4
289.6
299.1
2,622.8
1,835.5
50.4
212.3
524.7
233.5
930.8
11,218.5
466.4
1,293.5
300.4
2,945.2
2,571.9
335.8
17.6
20.0
6,212.9
1,129.0
727.5
210.2
191.3
2,855.7
1,289.4
396.0
661.1
509.3
2,228.2
656.9
582.8
404.1
7.4
267.1
309.9
RELATION O F LIABILITIES
T O FINANCIAL ASSETS
R
35 Total credit market debt
36
37
38
39
40
41
4?
43
44
45
46
47
48
49
50
51
52
Other liabilities
Official foreign exchange
Treasury currency and special drawing rights
certificates
Life insurance reserves
Pension fund reserves
Deposits at financial institutions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Security credit
Trade debt
Taxes payable
Miscellaneous
12,674.9 13,563.6 14,186.0
53.6
61.3
23.8
354.3
3,210.5
32.4
4,644.6
888.6
2,265.4
615.4
428.1
403.2
43.9
566.2
133.9
903.9
81.8
2,508.3
26.3
380.0
3,303.0
64.0
4,741.4
932.8
2,325.3
548.7
498.4
379.7
56.6
602.1
137.4
938.0
81.4
2,678.8
55.4
51.8
26.3
402.0
4,208.8 r
65.2
4,802.5
1,008.5
2,342.0
487.9
539.6
363.4
61.2
813.9
188.9
940.9
72.3
2,817.3 r
R
53 Total liabilities
R
25,188.3 26,577.2 28,579.6
R
R
15,005.6 13,830.0 13,995.8 14,186.0
24.5
431.9
4,573.7
115.4
4,817.0
1,131.0
2,281.0
408.4
543.6
397.5
55.6
1,050.2
217.3
1,003.6
80.1
2,931.8
53.6
52.9
55.4
26.1
392.3
3,551.7 r
35.9
4,765.7
933.1
2,351.5
532.6
532.8
354.0
61.7
683.7
137.5
909.4
65.8
2,699.7 r
26.2
397.2
3,717.7 r
60.9
4,769.5
948.3
2,339.7
517.1
533.1
368.9
62.4
744.2
158.1
935.3
71.9
2,733.9 r
R
26.3
402.0
4,208.8 r
65.2
4,802.5
1,008.5
2,342.0
487.9
539.6
363.4
61.2
813.9
188.9
940.9
72.3
2,817.3 r
14,337.1 14,544.4 14,769.7 15,005.6
52.7
54.4
55.4
51.8
26.3
409.6
4,226.3
67.2
4,796.4
984.3
2,340.9
469.7
572.0
375.1
54.4
860.4
194.6
939.8
77.4
2,834.5
26.4
416.7
4,278.7
70.8
4,785.1
1,032.3
2,314.7
438.7
557.2
401.0
41.3
928.3
193.3
944.9
72.7
2,876.0
26.5
425.0
4,418.1
101.6
4,829.9
1,071.6
2,293.3
428.8
553.2
425.4
57.6
971.2
214.5
987.7
75.8
2,911.5
24.5
431.9
4,573.7
115.4
4,817.0
1,131.0
2,281.0
408.4
543.6
397.5
55.6
1,050.2
217.3
1,003.6
80.1
2,931.8
R
30,303.0 27,151.4 27,663.7 28,579.6' 28,822.3 29,191.8 29,786.8 30,303.0
Financial assets not included in liabilities (+)
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business
21.0
3,819.7
2,524.9
22.0
3,506.6
2,449.4
22.6 r
4,357^
2,366.0 r
19.6
4,827.2
2,260.8
21.7 r
3,987.9 r
2,510.6 r
22.l r
4,170.5 r
2,493.4 r
22.6 r
4,357.9 r
2,366.0 r
22.7
4,461.9
2,365.5
23.2
4,404.7
2,346.4
24.5
4,576.8
2,322.2
19.6
4,827.2
2,260.8
Floats not included in assets ( - )
57 U . S . government checking deposits
58 Other checkable deposits
59 Trade credit
6.1
26.5
-159.7
15.0
28.9
-148.0
3.8
30.9
-138.5r
6.8
32.5
-105.9
8.3
29.9
-160.4 r
19.8
23.6
-157.7r
3.8
30.9
-138.5r
.9
29.5
-135.3
1.4
32.6
-149.5
4.0
23.3
-131.3
6.8
32.5
-105.9
-4.3
-31.0
11.5
20.6
-251.1
-4.1
-32.0
-23.3
21.8
-247.3
-4.8
-4.2
-12.9
18.9
-458.5r
-5.0
-9.9
-2.8
32.0
-558.3
-4.7
-9.9
-25.8
11.8
-241.lr
-4.7
-4.7
-10.6
17.6
-300.6r
-4.8
-4.2
-12.9
18.9
-458.5'
-4.9
-1.8
-11.4
14.7
-458.1
-4.9
-4.0
5.8
20.9
-476.5
-5.0
-5.9
16.7
25.4
-527.9
-5.0
-9.9
-2.8
32.0
-558.3
60
61
62
63
64
Liabilities not identified as assets ( - )
Treasury currency
Interbank claims
Security repurchase agreements
Miscellaneous
R
65 Totals identified to sectors as assets
31,935.2 32,944.3 35,891.3
1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables L.6 through L.7. For ordering address, see inside front cover.
R
R
38,021.1 34,063.6 34,767.1 35,891.3' 36,238.9 36,540.2 37,311.0 38,021.1
2. Excludes corporate equities and mutual fund shares,
Selected
2.10
NONFINANCIAL BUSINESS ACTIVITY
Measures
A45
Selected Measures
Monthly data seasonally adjusted, 1987=100 except as noted
1992
1992
Mar. 1
Sept.
1 Industrial production 1
2
3
4
5
6
7
104.1
Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
103.1
105.3
102.8
108.9
96.5
105.5
105.5
107.0
103.4
112.1
101.2
106.8
Industry
groupings
8 Manufacturing
106.9
108.9
108.2
111.0
111.5
107.5
117.2
98.3
107.1
116.7
98.1
109.3
110.0
108.5
111.9
107.6
109.5
112.8
98.2
110.4
109.2"
112.4"
108.5"
118.0"
99.3
110.9"
109.9
107.8
109.9
110.5
110.7
118.1
108.8
118.6
99.6
110.9
80.5
81.1
10 Construction contracts 3
77.8
78.8
78.4
79.2
79.7
95.3
(percent) 2
89.7
94. l r
89.0
104.0
92.0
90.0
100.0
95.0
94.0
106.6"
106.7"
93.2"
94.3"
93.9"
107.0"
93.2"
94.3"
94.1"
111.4"
136.6
132.3
118.0
138.2
131.9
107.1"
93.2"
94.4"
94.3"
111.6"
137.4
133.1
117.2
138.8
132.0
107.4"
93.5"
94.5"
94.5"
111.9"
137.5
132.9
117.8
139.0
131.9
107.5
93.3
94.4
94.4
112.0
138.4
132.8
117.8
140.0
130.5
141.9
123.8
142.6
124.2"
143.1
124.3
143.6
124.6
r
107.7
101.2 r
r
100.6
11 Nonagricultural employment, total 4 . . .
12
Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production worker
15
Service-producing
16 Personal income, total
17
Wages and salary disbursements
18
Manufacturing
,
19
Disposable personal income
20 Retail sales 6
Prices7
21 Consumer (1982-84= 100)
22 Producer finished goods (1982=100)...
100.2r
109.8r
122.7
121.3
113.5
122.9
r
106.2
96.6 r
97. l r
96.3 r
109.3r
127.0
124.4
113.6
106.4
94.9"
95.8 r
95.3 r
110.0"
120.2
121.3
133.0
129.0
115.4
134.7
127.2
130.7
119.2
136.2
121.7
140.3
123.2
128.0
93.3"
94.5"
94.0"
110.8"
133.6
129.5
115.3
135.2
128.1
135.3
130.5
116.5
137.0
130.7
106.8"
93.2"
94.3"
94.0"
111.2"
135.3
131.2
116.0
136.8
130.5
141.3
123.3
r
141.8
124.4
142.0
124.0
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," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the
Federal Reserve, DRI McGraw-Hill, U.S. 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
Co., F.W. Dodge Division.
4. Based on data from U . S . Department of Labor, Employment and Earnings.
Series covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current
Business.
2.11
107.1
110.1
106.4
115.4
97.8
108.1
105.3
108.1
104.4
113.5
96.9
107.4
109.3
108.4
108.0
105.6
108.2
105.2
112.7
97.6
107.9
106.1
9 Capacity utilization, manufacturing
107.5
106.5
111.0"
6. Based on data from U.S. Bureau of the Census, Survey of Current Business.
7. Based on data not seasonally adjusted. Seasonally adjusted data for changes
in the price indexes can be obtained from the Bureau of Labor Statistics, U.S.
Department of Labor, Monthly Labor Review.
N O T E . Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and
indexes for series mentioned in notes 3 and 7 can also be found in the Survey of
Current Business.
Figures for industrial production for the latest month are preliminary, and many
figures for the three months preceding the latest month have been revised. See
"Recent Developments in Industrial Capacity and Utilization," Federal Reserve
Bulletin, vol. 76 (June 1990), pp. 411-35.
LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted except as noted
1993
1992"
1990
Category
1991
1992
Oct.
Nov.
Dec.
Jan."
Feb."
Mar."
Apr."
May
HOUSEHOLD SURVEY DATA
1 Noninstitutional population 1
189,686
191,329
193,142
193,683
193,847
194,026
194,159
194,298
194,456
194,618
194,767
?
3
126,424
124,787
126,867
125,303
128,548
126,982
128,618
127,066
128,896
127,365
129,108
127,591
128,598
127,083
128,839
127,327
128,926
127,429
128,833
127,341
129,615
128,131
114,728
3,186
114,644
3,233
114,391
3,207
114,518
3,169
114,855
3,209
115,049
3,262
114,879
3,191
115,335
3,116
115,483
3,082
115,356
3,060
116,203
3,070
6,874
5.5
63,262
8,426
6.7
64,462
9,384
7.4
64,594
9,379
7.4
65,065
9,301
7.3
64,951
9,280
7.3
64,918
9,013
7.1
65,561
8,876
7.0
65,459
8,864
7.0
65,530
8,925
7.0
65,785
8,858
6.9
65,152
109,782
108,310
108,434
108,789
108,921
109,079
109,235
109,539
109,565
109,781
109,990
19,117
710
5,133
5,808
25,877
6,729
28,130
18,304
18,455
691
4,685
5,772
25,328
6,678
28,323
18,380
18,192
635
4,594
5,741
25,120
6,672
28,903
18,578
17,911
618
4,466
5,699
25,454
6,570
29,361
18,710
17,917
616
4,462
5,699
25,466
6,569
29,430
18,762
17,913
613
4,459
5,707
25,522
6,575
29,524
18,766
17,936
611
4,454
5,719
25,609
6,578
29,573
18,755
17,954
600
4,515
5,725
25,726
6,577
29,665
18,777
17,935
600
4,481
5,724
25,707
6,574
29,756
18,788
17,860
599
4,517
5,717
25,754
6,584
29,955
18,795
17,821
599
4,584
5,727
25,787
6,583
30,081
18,808
4
5
6
7
8
Civilian labor force
Employment
Nonagricultural industries
Agriculture
Unemployment
Number
Rate (percent of civilian labor force)
Not in labor force
—
ESTABLISHMENT SURVEY D A T A
9 Nonagricultural payroll employment 3
10
11
17
13
14
15
16
17
Manufacturing
Contract construction
Transportation and public utilities
Government
1. Persons sixteen years of age and older, including Resident Armed Forces.
Monthly figures are based on sample data collected during the calendar week that
contains the twelfth day; annual data are averages of monthly figures. By
definition, seasonality does not exist in population figures.
2. Includes self-employed, unpaid family, and domestic service workers.
3. Includes all full- and part-time employees who worked during, or received
pay for, the pay period that includes the twelfth day of the month; excludes
proprietors, self-employed persons, household and 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.
S O U R C E . Based on data from U.S. Department of Labor, Employment
and
Earnings.
A46
D o m e s t i c Nonfinancial Statistics •
A u g u s t 1993
2.12 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted
1992
1993
1992
1993
1992
1993
Series
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Capacity (percent of 1987 output)
Output (1987=100)
Q2
Q3
Q4
Q1
Capacity utilization rate (percent)
1 Total industry
106.3
106.5
108.3
109.7
133.2
133.7
134.2
134.8
79.8
79.7
80.7
81.4
2 Manufacturing
106.7
107.0
108.7
110.4
135.4
136.0
136.6
137.2
78.8
78.7
79.6
80.5
3
4
Primary processing
Advanced processing
103.9
108.0
103.7
108.5
104.7
110.6
106.4
112.3
126.1
139.8
126.4
140.6
126.6
141.3
126.8
142.1
82.4
77.3
82.1
77.2
82.7
78.3
83.9
79.0
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment
107.8
95.1
101.3
104.7
96.7
122.6
119.0
105.7
108.3
96.0
99.7
103.5
94.5
126.8
120.9
103.6
110.8
98.5
101.5
105.0
96.7
132.4
124.0
111.4
113.6
99.7
105.0
109.1
99.3
137.1
127.0
120.6
141.2
112.3
125.6
130.8
118.5
159.0
149.9
151.2
141.9
112.4
125.3
130.4
118.3
160.6
151.3
152.9
142.6
112.5
125.0
129.9
118.2
162.1
152.6
154.5
143.4
112.6
124.9
129.8
118.1
163.7
154.1
155.8
76.3
84.7
80.7
80.1
81.6
77.1
79.4
69.9
76.3
85.4
79.6
79.4
79.8
79.0
80.0
67.7
77.7
87.6
81.2
80.8
81.8
81.7
81.2
72.1
79.2
88.6
84.1
84.1
84.1
83.7
82.4
77.4
101.3
99.5
97.7
95.7
135.7
135.7
135.8
135.7
74.7
73.3
72.0
70.5
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
105.4
104.6
108.7
114.8
109.8
102.7
105.4
105.2
108.6
114.7
110.5
100.2
106.1
105.2
107.9
116.9
106.6
104.2
106.5
106.1
110.0
116.9
111.7
104.2
128.3
116.4
121.3
141.7
127.8
116.9
128.7
116.6
121.7
142.6
128.3
116.6
129.1
116.7
122.1
143.5
128.8
116.2
129.6
116.9
122.5
144.4
129.5
115.9
82.2
89.8
89.6
81.0
85.9
87.8
81.9
90.3
89.2
80.4
86.2
85.9
82.1
90.1
88.4
81.4
82.8
89.7
82.2
90.8
89.8
80.9
86.2
89.9
97.8
97.5
110.9
110.6
97.9
114.7
114.3
96.5
116.0
115.2
112.6
130.9
127.4
112.3
131.4
127.9
112.0
131.8
128.5
111.7
132.2
129.0
86.9
84.8
86.9
86.9
84.5
86.4
87.4
87.1
89.0
86.3
87.8
89.3
Latest cycle 3
1992
1992
Low
May
Dec.
May"
70 Mining
71 Utilities
22
Electric
111.1
110.7
1973
1975
Previous cycle 2
High
Low
High
Low
High
1993
Jan.
Feb.
Mar.
Apr.
Capacity utilization rate (percent)
1 Total industry
99.0
82.7
87.3
71.8
84.8
78.3
80.1
81.0
81.2
81.5
81.6
81.6
81.6
2 Manufacturing
99.0
82.7
87.3
70.0
85.1
76.6
79.1
79.8
80.3
80.5
80.6
80.8
80.8
3
4
Primary processing
Advanced processing
99.0
99.0
82.7
82.7
89.7
86.3
66.8
71.4
89.1
83.3
77.9
76.1
82.6
77.5
82.9
78.6
83.5
78.9
84.3
79.0
83.8
79.3
84.1
79.4
84.3
79.4
5
6
7
8
9
10
11
12
13
Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment.
99.0
99.0
99.0
99.0
99.0
99.0
99.0
99.0
82.7
82.7
82.7
82.7
82.7
82.7
82.7
82.7
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
83.9
93.3
92.9
95.7
88.9
83.7
84.9
84.5
73.8
76.8
74.3
72.3
75.9
73.0
76.8
57.9
76.8
85.6
80.4
80.1
81.0
77.5
79.7
71.3
78.2
87.1
82.0
82.7
80.9
82.3
81.6
74.9
78.9
88.2
82.3
82.4
82.2
82.8
82.0
77.7
79.4
90.4
86.5
87.0
85.9
83.5
82.5
77.5
79.4
87.1
83.4
82.9
84.3
84.9
82.9
76.9
79.6
86.5
84.4
85.0
83.6
86.0
82.7
77.1
79.6
87.0
85.3
86.2
83.9
86.6
83.1
75.9
99.0
82.7
81.1
66.9
88.3
78.1
74.6
71.5
71.2
70.6
69.8
69.2
68.8
14
15
16
17
18
19
Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products
99.0
99.0
99.0
99.0
99.0
99.0
82.7
82.7
82.7
82.7
82.7
82.7
87.0
91.7
94.2
85.1
90.9
89.5
76.9
73.8
82.0
70.1
63.4
68.2
86.8
92.1
94.9
85.9
97.0
88.5
80.4
78.7
86.0
78.5
75.5
84.2
82.2
90.2
89.2
81.0
86.2
87.7
82.0
90.8
88.6
81.2
80.5
89.1
82.2
91.5
88.8
81.1
86.0
89.0
82.1
90.8
90.1
80.4
85.3
90.3
82.3
90.0
90.6
81.2
87.4
90.4
82.4
89.6
92.2
81.1
87.5
90.0
82.5
90.4
91.8
81.8
87.2
91.6
99.0
99.0
99.0
82.7
82.7
82.7
96.6
88.3
88.3
80.6
76.2
78.7
87.0
92.6
94.8
86.8
83.4
87.4
87.8
84.9
86.9
87.8
88.5
90.4
87.9
85.4
87.7
85.8
88.9
90.3
85.3
89.0
90.0
86.5
86.0
87.4
86.9
85.6
87.0
20 Mining
21 Utilities
22
Electric
1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering 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), pp. 411-35. See also "Industrial
Production Capacity and Capacity Utilization since 1987," Federal
Bulletin, vol. 79, (June 1993), pp. 590-605.
2. Monthly highs, 1978 through 1980; monthly lows, 1982.
3. Monthly highs, 1988-89; monthly lows, 1990-91.
Reserve
Selected Measures
2.13
INDUSTRIAL PRODUCTION
A47
Indexes and Gross Value1
Monthly data seasonally adjusted
Group
1987
proportion
1993
1992
1992
avg.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
r
Mar/
Apr. r
May p
Index (1987 = 100)
MAJOR MARKETS
100.0
106.5
106.7
106.0
106.8
106.6
106.2
107.5
108.4
108.9
109.3
109.9
110.1
110.2
110.4
2 Products
3
Final products
4
Consumer goods, total
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 T V . . . .
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
105.6
108.2
105.2
102.5
99.4
96.9
79.0
127.9
103.7
105.2
110.4
99.9
105.6
105.9
104.7
95.0
118.7
100.8
108.3
104.7
109.6
105.7
108.3
105.8
105.6
102.9
102.1
85.3
131.2
104.4
107.9
116.8
102.7
106.3
105.9
104.7
95.7
118.1
101.0
107.8
104.8
108.9
104.8
107.1
104.0
102.0
99.0
96.5
83.5
119.2
103.2
104.6
109.6
98.0
106.0
104.6
103.3
94.5
117.6
100.6
105.2
103.8
105.8
105.7
108.1
104.9
102.8
98.8
95.3
81.2
119.8
104.6
106.3
109.7
101.7
107.4
105.5
105.0
95.1
117.3
100.1
106.3
104.1
107.2
105.9
108.9
105.1
101.9
99.5
96.0
77.0
128.8
105.3
104.0
111.0
97.7
104.1
106.0
107.0
94.0
116.5
100.2
105.6
98.9
108.2
105.3
108.1
104.4
100.9
97.3
93.5
77.9
120.4
103.7
104.1
112.9
98.2
102.9
105.3
104.9
94.3
118.5
100.4
104.6
103.5
105.1
107.1
110.1
106.4
104.1
103.1
101.5
78.5
141.3
105.9
104.9
110.8
98.5
105.8
107.1
105.9
94.5
121.1
100.1
111.1
109.8
111.6
107.8
111.0
107.1
105.7
104.1
102.9
79.6
143.3
106.0
107.1
110.8
103.7
107.1
107.5
105.2
95.9
123.3
100.9
112.0
107.7
113.6
108.2
111.5
107.5
107.9
108.7
111.7
86.9
154.6
103.8
107.2
110.5
105.4
106.6
107.4
104.8
96.0
121.7
100.9
114.4
106.1
117.5
108.5
111.9
107.6
110.9
112.7
116.8
86.6
169.1
105.8
109.3
116.0
105.5
108.0
106.7
104.6
95.7
122.4
100.2
109.5
106.5
110.7
109.2
112.4
108.5
111.3
111.9
114.6
90.2
156.9
107.4
110.7
117.6
106.7
109.5
107.7
105.5
95.0
121.1
101.8
115.5
108.9
118.0
109.5
112.8
108.8
111.2
111.2
113.4
90.5
153.1
107.5
111.1
122.9
104.3
108.9
108.1
105.1
94.6
123.5
102.1
116.1
107.1
119.6
109.5
112.9
108.4
111.7
112.0
114.3
90.2
155.9
108.1
111.6
122.5
104.6
109.9
107.5
105.2
95.0
123.0
101.6
112.0
106.1
114.3
109.6
112.9
108.3
110.6
109.6
110.1
86.5
150.9
108.7
111.6
122.9
105.6
109.1
107.7
105.0
95.2
124.4
101.4
112.5
109.0
113.9
23
24
25
26
27
28
29
30
31
32
33
Equipment
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
112.7
123.2
134.7
168.3
108.5
137.1
117.9
104.7
85.9
78.3
99.7
112.0
122.1
131.4
162.1
108.4
136.9
123.3
106.5
87.2
75.4
92.5
111.6
121.9
134.3
167.3
108.7
133.9
117.2
99.2
86.5
73.1
90.1
112.7
123.7
137.4
171.8
109.1
135.3
114.2
100.2
85.1
73.8
101.3
114.3
126.1
138.5
173.7
109.2
143.3
117.3
105.6
84.5
75.6
96.9
113.5
125.0
138.2
178.3
109.6
134.5
114.7
107.3
84.4
76.3
100.9
115.4
127.5
142.2
183.1
110.1
137.4
121.7
108.8
83.5
82.7
110.4
116.7
129.0
142.9
184.5
112.0
140.4
123.9
110.7
83.2
86.4
118.5
117.2
129.6
143.2
186.4
112.3
144.1
131.4
109.2
82.5
91.2
128.6
118.1
131.2
144.4
192.0
113.1
146.7
136.7
112.6
82.0
89.0
129.4
118.0
131.7
146.1
198.0
112.2
146.5
136.8
113.4
81.5
77.9
127.1
118.6
133.2
149.0
203.8
113.0
145.0
135.8
114.9
80.8
71.1
116.2
119.3
134.2
150.7
209.5
113.8
144.0
136.2
116.5
80.6
72.4
114.9
119.5
134.5
152.0
215.1
114.5
141.5
133.1
116.5
80.2
75.1
114.7
34
35
36
Intermediate products, total
Construction supplies
Business supplies
14.7
6.0
8.7
97.6
93.8
100.1
97.9
95.3
99.6
97.7
93.6
100.6
98.6
94.3
101.4
97.0
94.1
99.0
96.9
93.0
99.5
97.8
94.7
99.9
98.1
95.1
100.0
98.3
94.5
100.8
98.2
94.8
100.5
99.3
97.5
100.5
99.6
96.3
101.8
99.4
96.0
101.8
99.6
96.7
101.5
37 Materials
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
107.9
108.9
101.5
116.5
106.0
108.3
110.9
102.8
109.9
114.2
110.4
103.4
99.7
110.6
108.0
109.0
101.5
116.1
106.5
109.2
111.5
102.4
109.6
115.5
110.9
103.3
99.5
110.6
107.8
108.7
101.5
116.6
105.4
107.8
111.5
101.8
110.8
114.8
111.6
103.1
99.6
109.9
108.5
109.3
100.6
117.7
106.3
108.7
111.5
107.7
110.3
114.1
110.0
104.4
100.4
112.3
107.6
108.9
101.4
117.1
105.5
107.7
110.7
101.6
108.7
114.5
110.5
102.5
99.4
108.7
107.4
107.6
98.5
116.2
104.6
105.8
111.7
103.3
112.3
114.5
110.5
103.6
99.6
111.4
108.1
109.7
101.8
118.3
106.2
108.3
110.7
102.7
109.1
114.4
109.7
103.0
99.4
110.0
109.3
111.1
104.3
119.3
107.4
109.8
112.0
103.4
110.2
115.6
112.0
103.9
100.2
111.1
110.0
111.9
107.5
119.7
107.5
108.8
111.5
102.9
110.7
114.6
111.3
105.1
101.3
112.4
110.4
113.3
110.8
120.4
108.6
110.4
112.4
104.2
110.7
114.9
114.1
103.4
100.4
109.1
110.9
114.2
111.8
121.0
109.7
113.2
112.1
103.2
111.9
114.6
112.5
103.8
98.3
114.6
110.9
114.0
112.3
121.2
108.8
109.9
112.7
104.1
112.8
115.6
112.3
103.5
97.4
115.4
111.3
114.5
112.5
122.2
109.2
111.0
113.8
103.6
115.4
115.9
113.9
103.1
98.3
112.6
111.6
115.1
113.3
122.9
109.5
112.0
114.0
103.8
114.7
117.1
113.4
103.0
98.3
112.2
97.3
95.3
106.6
106.6
106.6
106.6
106.1
106.1
107.0
107.0
106.7
106.7
106.3
106.4
107.4
107.5
108.4
108.4
108.6
108.6
108.9
108.7
109.5
109.3
109.7
109.6
109.9
109.7
110.2
110.0
1 Total index
SPECIAL A G G R E G A T E S
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
105.0
105.3
104.6
105.3
105.0
104.5
105.7
106.6
107.1
107.3
107.8
107.8
107.9
107.9
24.5
23.3
105.7
104.8
106.1
105.6
104.6
103.9
105.5
104.7
105.7
105.0
105.1
104.3
106.8
105.9
107.4
106.6
107.3
106.8
107.0
107.4
108.1
107.7
108.4
107.9
108.0
108.0
108.2
107.9
12.7
123.7
122.0
122.3
124.5
126.9
125.9
128.0
129.5
129.5
130.7
131.3
132.9
134.0
134.7
114.3
109.5
115.6
110.0
118.1
109.4
116.1
108.8
118.1
110.0
119.7
111.4
120.1
111.8
121.0
113.0
120.6
113.6
121.3
113.6
121.5
114.3
121.0
114.8
12.0
28.4
115.7
109.5
115.3
109.8
A48
Domestic Nonfinancial Statistics • August 1993
2.13—Continued
„
uroup
SIC
code
1987
proportion
1992
1993
1992
avg.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb/
Mar. r
Apr. r
May p
Index (1987 = 100)
M A J O R INDUSTRIES
100.0
106.5
106.7
106.0
106.8
106.6
106.2
107.5
108.4
108.9
109.3
109.9
110.1
110.2
110.4
2 Manufacturing
3 Primary processing
4
Advanced processing
84.3
27.1
57.1
106.9
103.8
108.3
107.1
104.2
108.4
106.5
103.7
107.9
107.1
104.3
108.4
107.0
103.5
108.7
106.8
103.3
108.4
108.0
104.1
109.9
108.9
105.1
110.7
109.2
105.0
111.3
109.9
105.8
111.9
110.5
106.9
112.2
110.7
106.3
112.9
111.2
106.9
113.3
111.4
107.2
113.4
5
6
7
8
Durable goods
Lumber and products . .
"'24
Furniture and fixtures . .
25
Clay, glass, and stone
products
32
Primary metals
33
Iron and steel
331,2
Raw steel
Nonferrous
333-6,9
Fabricated metal
34
products
Industrial and commercial
machinery and
35
computer equipment.
Office and computing
357
machines
Electrical machinery
36
Transportation
equipment
37
Motor vehicles and
371
parts
Autos and light
trucks
Aerospace and miscellaneous transportation equipment. 3 7 2 - 6 , 9
Instruments
38
Miscellaneous
39
46.5
2.1
1.5
108.1
96.4
99.0
108.4
96.1
101.0
107.6
93.8
94.2
108.2
96.6
97.5
108.5
96.6
99.2
108.1
94.7
100.5
109.8
97.8
100.4
110.9
99.8
102.3
111.8
98.0
103.9
112.9
99.3
105.2
113.8
101.8
106.0
114.0
98.1
107.0
114.6
97.5
107.1
114.8
98.1
106.9
2.4
3.3
1.9
.1
1.4
96.0
101.1
104.7
101.2
96.1
97.4
101.1
104.8
101.9
95.9
95.6
101.2
103.8
101.6
97.5
96.8
100.6
104.7
101.7
95.0
95.7
100.5
103.8
99.1
96.1
96.5
98.0
102.0
98.9
92.4
96.8
100.5
104.1
99.8
95.6
97.6
101.6
103.6
102.8
98.7
98.0
102.4
107.4
104.6
95.7
97.0
102.8
107.0
103.4
97.1
98.9
108.0
112.9
105.9
101.4
98.4
104.2
107.6
102.0
99.5
99.4
105.4
110.4
102.6
98.6
99.5
106.5
112.0
106.6
98.9
5.4
96.7
97.2
97.1
97.0
97.0
96.5
97.5
97.6
97.8
99.8
99.7
100.3
100.6
100.1
Nondurable goods
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 . .
1 Total index
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34 Mining
35
Metal
36 Coal
37
Oil and gas extraction
38
Stone and earth minerals . .
39 Utilities
40
Electric
Gas
41
8.5
124.8
123.2
123.8
125.7
126.9
127.9
130.6
132.8
133.8
135.0
136.7
139.5
141.8
143.4
2.3
6.9
168.3
119.8
162.1
119.5
167.3
119.3
171.8
120.7
173.7
120.6
178.3
121.5
183.1
122.6
184.5
124.4
186.4
124.8
192.0
125.8
198.0
127.1
203.8
128.2
209.5
128.3
215.1
129.4
9.9
102.6
104.5
102.7
101.4
102.4
100.5
103.0
103.6
106.3
108.4
107.8
107.0
106.8
105.7
4.8
104.8
107.9
104.8
103.1
105.0
102.6
108.0
109.9
116.2
120.9
120.7
120.1
120.7
119.0
2.2
101.4
107.9
102.7
100.8
99.7
97.9
104.1
105.4
114.4
118.2
117.8
116.9
117.5
113.1
5.1
5.1
1.3
100.6
104.2
109.7
101.3
105.1
110.2
100.8
104.4
109.7
99.8
104.9
111.6
100.0
104.3
109.1
98.6
103.7
108.7
98.3
103.7
110.5
97.7
103.6
111.4
97.1
103.3
111.8
96.7
103.0
110.9
95.8
102.2
111.9
94.7
103.1
112.6
93.8
102.7
114.4
93.3
102.2
113.3
"'20
21
22
23
26
27
28
29
37.8
8.8
1.0
1.8
2.3
3.6
6.5
8.8
1.3
105.4
106.0
99.2
104.7
92.3
108.2
95.0
115.0
102.0
105.4
106.1
97.9
105.0
93.5
108.2
94.5
114.8
102.5
105.2
105.4
96.4
103.8
91.7
108.7
95.6
114.9
101.8
105.7
105.9
101.5
107.0
92.7
109.1
95.7
114.6
101.5
105.2
106.3
115.5
103.5
91.3
107.1
93.5
114.4
98.0
105.2
105.6
101.7
105.1
91.5
109.5
94.1
115.2
101.1
105.8
106.8
102.4
103.5
91.7
107.3
94.5
116.2
105.3
106.4
106.4
101.9
106.0
92.9
108.2
94.2
117.7
103.9
106.0
106.2
96.1
106.0
92.7
108.3
94.7
116.7
103.4
106.4
105.9
100.5
106.9
93.1
108.6
94.7
116.8
103.2
106.4
106.9
99.3
106.2
92.5
110.4
94.0
116.2
104.7
106.7
106.8
97.4
105.3
92.1
111.1
94.7
117.6
104.7
107.1
107.1
98.7
104.9
92.1
113.2
94.9
117.6
104.2
107.3
106.4
100.9
105.8
91.9
112.9
95.0
119.0
105.9
30
31
3.2
.3
109.7
92.6
110.3
91.8
109.7
92.3
110.7
93.6
110.7
92.0
108.5
93.8
109.9
95.1
111.3
96.6
111.3
96.7
113.6
97.1
112.7
99.0
112.5
99.0
112.7
99.8
112.6
98.4
"lO
11,12
13
14
8.0
.3
1.2
5.8
.7
97.6
161.7
105.5
92.6
93.8
98.8
172.2
109.5
92.5
96.9
97.1
157.8
101.9
93.1
92.7
98.5
156.5
108.0
93.6
94.1
97.0
165.5
103.9
91.9
93.8
97.1
159.8
103.6
92.7
91.9
97.6
168.1
103.8
92.7
93.6
97.8
171.6
103.5
92.8
94.4
98.2
158.1
107.9
93.4
92.6
98.3
167.7
108.2
92.7
93.8
95.9
163.0
101.7
90.9
95.2
95.3
158.1
102.3
90.4
93.6
96.5
164.2
108.2
90.5
92.7
96.9
163.8
106.0
91.4
94.6
7.7
6.1
1.6
112.0
111.6
113.2
111.2
110.8
112.6
110.0
109.5
112.0
111.2
110.8
112.8
110.4
110.0
112.1
111.2
110.9
112.0
112.7
112.6
113.2
114.7
114.1
117.3
116.8
116.4
118.2
112.8
112.9
112.4
117.5
116.5
121.4
117.8
116.3
123.3
113.8
113.0
116.7
113.4
112.7
116.2
79.5
107.0
107.0
106.6
107.4
107.2
107.1
108.0
108.8
108.8
109.3
109.8
110.2
110.6
111.0
81.9
105.1
105.5
104.8
105.3
105.1
104.8
105.9
106.7
107.0
107.6
108.0
108.1
108.4
108.5
49I,3PT
492,3PT
SPECIAL A G G R E G A T E S
42 Manufacturing excluding
motor vehicles and
parts
43 Manufacturing excluding
office and computing
machines
Gross value (billions of 1987 dollars, annual rates)
MAJOR MARKETS
44 Products, total
1,707.0 1,806.4 1,814.8 1,794.6 1,806.8 1,802.7 1,799.9 1,835.6 1,846.7 1,857.5 1,864.9 1,880.2 1,880.0 1,881.0 1,880.6
45 Final
Consumer goods
46
Equipment
47
48 Intermediate
1,314.6 1,420.1 1,426.9 1,408.8 1,416.7 1,417.8 1,415.7 1,448.1 1,457.1 1,466.8 1,476.4 1,485.7 1,484.3 1,485.9 1,485.7
866.6
913.0
920.1
906.6
912.6
905.1
908.1
928.4
931.6
936.3
949.4
940.0
946.6
945.7
945.6
448.0
507.1
506.8
502.2
504.1
509.7
510.6
519.7
525.5
530.5
536.5
536.3
537.7
540.2
540.2
392.5
386.4
385.9
387.9
390.1
385.0
384.2
387.4
389.6
390.7
388.4
394.5
395.7
395.1
394.8
1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover.
A revision of the industrial production index and the capacity utilization rates
was released in May 1993. See "Industrial Production, Capacity, and Capacity
Utilization since 1987," Federal Reserve Bulletin, vol. 79 (June 1993), pp. 590-605.
2. Standard industrial classification.
Selected Measures
2.14
A49
HOUSING A N D CONSTRUCTION
Monthly figures at seasonally adjusted annual rates except as noted
1993
1992
1990
Item
1991
1992
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb. r
Mar. r
Apr.
Private residential real estate activity (thousands of units except as noted)
N E W UNITS
Permits authorized
One-family
Two-or-more-family
Started
One-family
Two-or-more-family
.
Under construction at end of period .
One-family
Two-or-more-family
Completed
One-family
Two-or-more-family
Mobile homes shipped
794
317
1,193
895
298
711
449
262
1,308
966
342
188
949
754
195
1,014
840
174
606
434
173
1,091
838
253
171
1,095
911
184
1,200
1,030
169
612
473
140
1,158
964
194
210
1,083
882
201
1,106
961
145
628
474
154
1,234
1,026
208
210
1,081
885
196
1,229
1,038
191
633
479
154
1,133
945
188
202
1,120
918
202
1,218
1,045
173
637
485
152
1,128
942
186
217
1,141
954
187
1,226
1,079
147
645
493
152
1,137
964
173
228
1,136
963
173
1,226
1,089
137
641
498
143
1,229
1,002
227
244
1,196
1,037
159
1,286
1,133
153
644
501
143
1,227
1,016
211
266
1,157
972
185
1,171
1,051
120
641
506
135
1,136
980
156
267
1,141
957
184
1,180
1,036
144
641
508
133
1,241
1,049
192
262
1,034
871
163
1,124
987
137
636
504
132
1,113
999
114
247
1,101
925
176
1,215
1,067
148
638
507
131
1,191
1,063
128
241
Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period 1 . .
535
321
507
284
610
265
622
271
625
270
672
267
637
264
615
262
662
265
603 r
266
603
268
612
270
751
270
122.3
149.0
120.0
147.0
121.3
144.9
118.0
137.7
123.5
145.3
119.5
142.2
125.0
148.4
128.9
147.2
126.0
146.2
118.0
138.9 r
129.5
150.3
125.0
145.0
127.5
146.4
3,211
3,219
3,520
3,380
3,340
3,380
3,710
3,860
4,040
3,780
3,460
3,370
3,450
95.2
118.3
99.7
127.4
103.6
130.8
102.8
132.2
105.0
132.4
103.5
131.0
103.4
129.3
102.7
128.8
104.2
131.0
103.1
129.4
103.6
129.6
105.1
131.5
105.8
133.0
1
2
3
4
5
6
7
8
9
10
11
12
13
Price of units sold
of dollars)1
16 Median
17 Average
1,111
(thousands
EXISTING UNITS (one-family)
18 Number sold
Price of units sold
of dollars)2
19 Median
20 Average
(thousands
Value of new construction (millions of dollars) 3
CONSTRUCTION
21 Total put in place
442,066
400,955
426,657
425,700
419,598
429,291
432,250
436,140
439,948
441,344
446,712
446,231
444,352
22 Private
23
Residential
24
Nonresidential, total
25
Industrial buildings
26
Commercial buildings
27
Other buildings
28
Public utilities and other
334,153
182,856
151,297
23,849
62,866
21,591
42,991
290,707
157,837
132,870
22,281
48,482
20,797
41,310
308,246
184,127
124,119
20,173
40,417
21,514
42,015
305,848
181,162
124,686
20,594
39,988
22,228
41,876
301,984
184,201
117,783
17,862
37,010
21,518
41,393
308,813
186,343
122,470
19,019
39,333
22,068
42,050
315,855
192,553
123,302
18,646
40,195
21,545
42,916
317,451
194,801
122,650
19,083
40,379
21,542
41,646
320,720
198,538
122,182
18,721
38,326
21,370
43,765
327,790
204,757
123,033
18,768
39,314
20,795
44,156
331,809
204,981
126,828
19,355
41,150
22,005
44,318
330,293
204,986
125,307
19,235
39,275
22,100
44,697
328,148
202,241
125,907
18,453
40,074
23,242
44,138
29 Public
30
Military
31
Highway
32
Conservation and d e v e l o p m e n t . . .
33
Other
107,909
2,664
31,154
4,607
69,484
110,247
1,837
29,918
4,958
73,534
118,408
2,484
32,759
5,978
77,187
119,853
2,372
32,682
5,772
79,027
117,614
2,438
33,451
5,382
76,343
120,478
3,172
34,651
6,364
76,291
116,395
2,438
32,056
5,630
76,271
118,689
2,612
34,636
6,210
75,231
119,229
2,483
31,237
8,237
77,272
113,554
2,459
29,811
5,708
75,576
114,903
2,419
31,306
6,661
74,517
115,938
2,376
31,948
7,040
74,574
116,204
2,490
32,902
6,171
74,641
1. Not at annual rates.
2. Not seasonally adjusted.
3. Recent data on value of new construction may not be strictly comparable
with data for previous periods because of changes by the Census Bureau in its
estimating techniques. For a description of these changes, see Construction
Reports (C-30-76-5), issued by the Census Bureau in July 1976.
S O U R C E . 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 17,000 jurisdictions
beginning in 1984.
A50
2.15
Domestic Nonfinancial Statistics • August 1993
CONSUMER A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 12
months earlier
Change from 3 months earlier
(annual rate)
Item
1992
1992
May
Index
level,
May
1993 1
19931
1993
1993
May
June
C O N S U M E R PRICES
Change from 1 month earlier
Sept.
Dec.
Mar.
Jan.
Feb.
Mar.
Apr.
May
2
(1982-84=100)
1 All items
3.0
3.2
2.6
2.6
3.2
4.0
.5
.3
.1
.4
.1
144.2
2 Food
3 Energy items
4 All items less food and energy
5
Commodities
Services
6
.4
.3
3.8
3.0
4.2
2.7
2.0
3.4
2.3
4.0
-1.2
8.6
2.8
2.5
3.1
3.2
1.2
2.5
1.8
2.9
1.4
1.9
3.8
1.5
4.7
2.6
3.1
4.3
4.6
4.4
.4
.5
.5
.5
.4
.1
-.4
.5
.5
.4
.1
.7
.1
.1
.2
.4
.2
.4
.3
.4
.4
-1.0
.2
.0
.3
141.1
104.4
151.7
135.7
161.0
1.1
-2.1
-.3
3.5
2.0
2.0
2.9
2.2
1.7
1.6
3.3
-.6
16.6
2.4
.9
1.3
4.3
-3.5
1.5
1.2
-.3
3.3
-10.2
1.2
.6
3.9
-2.2
17.2
2.9
3.4
•3r
-.6r
1.0
.4
,5 r
.2 r
-.5r
1.7
.3
,2 r
.4
.5
1.3
.1
.2
.6
1.4
.1
.4
.2
.0
-.1
-.6
.2
.2
125.7
126.7
79.5
139.9
131.1
.4
.4
1.6
1.5
5.0
1.7
.7
1.3
-2.1
-.3
5.3
4.3
.y
.4 r
.6 r
.4 r
.3
.2
.1
.2
-.2
-.2
116.5
123.7
-.3
-2.3
-1.3
3.4
4.7
9.4
2.7
51.5
4.8
-4.8
19.8
2.2
5.1
-17.8
1.9
1.1
-9.7
25.0
,5 r
-1.5r
3.4 r
~.3r
-1.8r
1.9*
.1
.8
.4
2.5
-.6
1.8
.5
4.8
.4
112.1
81.0
141.9
P R O D U C E R PRICES
(1982=100)
7 Finished goods
8
Consumer foods
Consumer energy
9
10
Other consumer goods
11
Capital equipment
Intermediate
materials
12 Excluding foods and feeds
Excluding energy
13
Crude materials
14 Foods
15 Energy
16 Other
1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a
rental-equivalence measure of homeownership.
S O U R C E . Bureau of Labor Statistics.
Selected Measures
A51
2.16 GROSS DOMESTIC PRODUCT A N D INCOME
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1993
1992
1990
Account
1991
1992
Q1
Q2
Q3
Q4
QLR
GROSS DOMESTIC PRODUCT
5,522.2
2
3
4
5
12
13
17 G o v e r n m e n t p u r c h a s e s of goods and services
18
Federal
19
State and local
By major type of
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures
..
product
26 C h a n g e in b u s i n e s s inventories
27
Durable g o o d s
28
Nondurable goods
MEMO
29 Total G D P in 1987 dollars
5,978.5
6,081.8
6,145.8
3,887.7
446.1
1,251.5
2,190.1
4,095.8
480.4
1,290.7
2,324.7
4,022.8
469.4
1,274.1
2,279.3
4,057.1
470.6
1,277.5
2,309.0
4.108.7
482.5
1.292.8
2,333.3
4,194.8
499.1
1,318.6
2,377.1
4.234.7
498.8
1.320.8
2,415.1
721.1
731.3
541.1
180.1
360.9
190.3
770.4
766.0
548.2
168.4
379.9
217.7
722.4
738.2
531.0
170.1
360.8
207.2
773.2
765.1
550.3
170.3
380.0
214.8
781.6
766.6
549.6
166.1
383.5
217.0
804.3
794.0
562.1
167.0
395.1
231.9
844.0
809.0
573.8
168.0
405.8
235.2
-10.2
-10.3
4.4
2.2
-15.8
-13.3
8.1
6.4
15.0
9.7
10.3
6.2
34.9
32.6
-21.8
598.2
620.0
-30.4
636.3
666.7
-8.1
628.1
636.2
-37.1
625.4
662.5
-36.0
639.0
675.0
-40.5
652.7
693.2
-49.4
649.4
698.9
1,043.2
426.4
616.8
1,090.5
447.3
643.2
1,114.9
449.1
665.8
1,103.1
445.0
658.0
1,109.1
444.8
664.3
1,124.2
455.2
669.0
1,123.3
451.6
671.7
1,116.6
441.1
675.4
5,515.9
2,160.1
920.6
1,239.5
2,846.4
509.4
5.687.7
2.192.8
907.6
1,285.1
3,030.3
464.7
5,946.3
2.260.3
943.9
1.316.4
3,197.1
488.8
5,855.9
2,233.6
923.6
1,310.0
3,142.2
480.1
5.894.1
2.233.2
932.3
1,300.8
3,173.4
487.6
5.963.5
2,258.4
943.8
1.314.6
3,217.8
487.3
6,071.5
2,316.1
975.8
1,340.3
3,255.1
500.3
6,110.8
2,309.2
968.8
1,340.4
3,299.4
502.3
6.3
-.9
7.2
-10.2
-19.3
9.0
4.4
-3.5
7.9
-15.8
-19.3
3.5
8.1
9.5
-1.4
15.0
2.7
12.3
10.3
-6.9
17.2
34.9
17.8
17.2
4,877.5
4,821.0
4,922.6
4,873.7
4,892.4
4,933.7
4,990.8
4,999.9
4,468.3
14 N e t e x p o r t s of goods a n d services
15
Exports
16
Imports
5,902.2
-68.9
557.0
625.9
C h a n g e in b u s i n e s s inventories
Nonfarm
5,840.2
6.3
3.3
6 G r o s s private domestic investment
Fixed investment
7
8
Nonresidential
9
Structures
10
P r o d u c e r s ' durable equipment
11
Residential structures
5,950.7
799.5
793.2
577.6
201.1
376.5
215.6
By source
Personal consumption expenditures
D u r a b l e goods
N o n d u r a b l e goods
Services
5,677.5
3.748.4
464.3
1.224.5
2,059.7
1 Total
4,544.2
4,743.4
4,679.4
4,716.5
4,719.6
4,858.0
4,919.5
3,506.3
2,901.3
561.4
2,339.9
605.0
301.5
303.6
3,534.3
2,923.5
564.3
2,359.1
610.8
302.9
307.9
3,583.7
2,963.9
569.6
2,394.3
619.8
307.6
312.2
3,628.4
2,999.8
578.2
2,421.6
628.6
312.0
316.5
398.4
359.9
38.5
397.4
365.9
31.5
428.4
380.4
48.1
441.9
389.0
52.9
NATIONAL INCOME
30 Total
3,291.2
2,742.9
514.8
2,228.0
548.4
277.4
271.0
3,390.8
2,812.2
543.5
2,268.7
578.7
290.4
288.3
3,525.2
2,916.6
562.5
2,354.1
608.6
302.9
305.7
3,476.3
2,877.6
554.6
2,323.0
598.7
299.4
299.2
38 P r o p r i e t o r s ' i n c o m e 1
39
Business a n d professional 1
40
Farm1
366.9
325.2
41.7
368.0
332.2
35.8
404.5
364.9
39.5
393.6
353.6
40.1
41 Rental i n c o m e of p e r s o n s 2
-12.3
-10.4
4.7
-4.5
3.3
6.4
13.6
17.7
42 C o r p o r a t e profits
43
Profits b e f o r e t a x 3
44
I n v e n t o r y valuation a d j u s t m e n t
45
Capital c o n s u m p t i o n a d j u s t m e n t
361.7
355.4
-14.2
20.5
346.3
334.7
3.1
8.4
393.8
371.6
-7.4
29.5
384.0
366.1
-5.4
23.3
388.4
376.8
-15.5
27.0
374.1
354.1
-9.7
29.7
428.5
389.4
1.0
38.1
429.6
398.3
-9.4
40.6
46 N e t interest
460.7
449.5
415.2
430.0
420.0
407.3
403.6
402.0
31 C o m p e n s a t i o n of e m p l o y e e s
32
W a g e s a n d salaries
33
G o v e r n m e n t a n d g o v e r n m e n t enterprises . .
34
Other
35
S u p p l e m e n t t o w a g e s and salaries
36
E m p l o y e r contributions f o r social insurance
37
O t h e r labor i n c o m e
1
1. With inventory valuation and capital consumption a d j u s t m e n t s .
2. With capital c o n s u m p t i o n a d j u s t m e n t .
3. F o r a f t e r - t a x profits, dividends, and the like, see table 1.48.
S O U R C E . U . S . D e p a r t m e n t of C o m m e r c e , Survey of Current
Business.
A52
2.17
Domestic Nonfinancial Statistics • August 1993
PERSONAL INCOME A N D SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
1992
Account
1990
1991
1993
1992
Qi
Q2
Q3
Qlr
Q4
PERSONAL INCOME A N D SAVING
1 Total personal income
4,664.2
4,828.3
5,058.1
4,980.5
5,028.9
5,062.0
5,160.9
5,237.6
2 Wage and salary disbursements
3
Commodity-producing industries
4
Manufacturing
5
Distributive industries
6
Service industries
7
Government and government enterprises
2,742.8
745.6
556.1
634.6
847.8
514.8
2,812.2
737.4
556.9
647.4
883.9
543.6
2,918.1
743.2
565.7
666.8
945.5
562.5
2,877.6
736.8
559.9
660.9
925.3
554.6
2,901.3
743.1
564.7
662.9
933.9
561.4
2,923.5
742.4
565.5
667.7
949.1
564.3
2,969.9
750.6
572.8
675.8
973.9
569.6
3,005.8
754.4
576.5
685.0
988.2
578.2
271.0
366.9
325.2
41.7
-12.3
140.3
694.5
685.8
352.0
288.3
368.0
332.2
35.8
-10.4
137.0
700.6
771.1
382.0
305.7
404.5
364.9
39.5
4.7
139.3
670.2
866.1
414.1
299.2
393.6
353.6
40.1
-4.5
133.9
684.8
842.7
405.7
303.6
398.4
359.9
38.5
3.3
136.6
675.2
859.7
412.1
307.9
397.4
365.9
31.5
6.4
141.0
663.2
874.1
417.1
312.2
428.4
380.4
48.1
13.6
145.8
657.8
888.0
421.6
316.5
441.9
389.0
52.9
17.7
149.9
656.4
909.9
434.1
8 Other labor income
9 Proprietors' income
10
Business and professional
12
13
14
15
16
17
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance
18 E Q U A L S : Personal income
224.8
238.4
250.6
246.8
249.3
251.5
254.8
260.4
4,664.2
4,828.3
5,058.1
4,980.5
5,028.9
5,062.0
5,160.9
5,237.6
621.3
618.7
627.3
619.6
617.1
628.8
643.6
656.0
20 E Q U A L S : Disposable personal income
4,042.9
4,209.6
4,430.8
4,360.9
4,411.8
4,433.2
4,517.3
4,581.7
21
LESS: Personal outlays
3,867.3
4,009.9
4,218.1
4,146.3
4,179.5
4,229.9
4,316.9
4,358.8
22 E Q U A L S : Personal saving
175.6
199.6
212.6
214.6
232.3
203.3
200.4
222.9
19,513.0
13,043.6
14,068.0
19,077.1
12,824.1
13,886.0
19,271.4
12,973.9
14,035.0
19,158.5
12,930.2
14,017.0
19,181.8
12,893.3
14,021.0
19,288.4
12,973.3
13,998.0
19,456.3
13,098.4
14,105.0
19,444.3
13,092.1
14,165.0
4.3
4.7
4.8
4.9
5.3
4.6
4.4
4.9
19
LESS: Personal tax and nontax payments
MEMO
Per capita (1987 dollars)
23 Gross domestic product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING
27 Gross saving
718.0
708.2
686.3
677.5
682.9
696.9
687.9
738.2
28 Gross private saving
854.1
901.5
968.8
950.1
968.1
992.1
965.0
1,000.2
29 Personal saving
30 Undistributed corporate profits
31 Corporate inventory valuation adjustment
175.6
75.7
-14.2
199.6
75.8
3.1
212.6
104.3
-7.4
214.6
104.0
-5.4
232.3
97.7
-15.5
203.3
91.2
-9.7
200.4
124.1
1.0
222.9
122.1
-9.4
368.3
234.6
383.0
243.1
394.8
258.6
386.1
245.3
391.2
247.0
407.2
290.4
394.7
251.8
400.0
261.2
-136.1
-166.2
30.1
-193.3
-210.4
17.1
-282.5
-298.0
15.5
-272.6
-289.2
16.6
-285.2
-302.9
17.7
-295.2
-304.4
9.2
-277.2
-295.5
18.3
-262.0
-272.1
10.1
Capital consumption
allowances
33 Noncorporate
34 Government surplus, or deficit ( - ) , national income and
36
State and local
37 Gross investment
723.4
730.1
720.4
706.5
713.8
732.0
729.5
781.6
38 Gross private domestic
39 Net foreign
799.5
-76.1
721.1
9.0
770.4
-49.9
722.4
-16.0
773.2
-59.4
781.6
-49.6
804.3
-74.7
844.0
-62.3
5.4
21.9
34.1
29.0
30.9
35.1
41.7
43.4
40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.
SOURCE. U.S. Department of Commerce, Survey of Current
Business.
Summary Statistics
3.10
A53
U.S. INTERNATIONAL TRANSACTIONS Summary
Millions of dollars; quarterly data seasonally adjusted except as noted1
1992r
1990r
1993
1992r
1991r
Q
1
1 Balance on current account..
2 Merchandise trade balance
3
Merchandise exports
Merchandise imports
4
5 Military transactions, net
6 Other service transactions, net
7 Investment income, net
8
U.S. government grants
9
U.S. government pensions and other transfers
10 Private remittances and other transfers
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )
-91,861
-109,033
389,303
-498,336
-7,834
38,485
20,348
-17,434
-2,934
-13,459
-8,324
-73,802
416,937
-490,739
-5,851
51,733
13,021
24,073
-3,461
-14,037
-66,400
-96,138
440,138
-536,276
-2,751
59,163
6,222
-14,688
-3,735
-14,473
Q2
Q3
Q4
Ql p
-6,685
-17,763
108,347
-126,110
-571
14,619
4,419
-2,788
-830
-3,770
-18,253
-24,801
108,306
-133,107
-727
14,378
907
-3,234
-17,775
-27,612
109,493
-137,105
-617
15,898
1,703
-2,783
-940
-3,424
-23,687
-25,962
113,992
-139,954
-836
14,265
-806
-5,883
-846
-3,619
-22,249
-29,068
111,627
-140,695
-383
15,006
273
-3,412
-971
-3,694
-1,118
-3,659
2,307
2,905
-1,609
-275
-293
-305
-737
309
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
-2,158
5,763
3,901
-1,057
1,464
1,952
1,542
-983
-192
731
-2,697
-177
-367
6,307
2,316
-2,692
4,277
-172
111
-9%
-168
1,631
-173
-118
2,243
2,829
-2,685
1,398
-140
-228
-615
17 Change in U.S. private assets abroad (increase, - )
18 Bank-reported claims3
19 Nonbank-reported claims
20 U.S. purchases of foreign securities, net
21 U.S. direct investments abroad, net
-44,280
16,027
-4,433
-28,765
-27,109
-68,643
3,278
1,932
-44,740
-29,113
-53,253
24,948
4,551
—47,961
-34,791
303
17,795
5,339
-8,493
-14,338
-9,866
4,050
1,294
-8,276
-6,934
-12,445
6,584
-3,214
-13,787
-2,028
-31,243
-3,481
1,132
-17,405
-11,489
-2,639
33,921
-26,578
-9,982
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
34,198
29,576
667
2,156
3,385
-1,586
17,564
14,846
1,301
1,542
-1,484
1,359
40,684
18,454
3,949
2,542
16,427
-688
21,124
14,916
464
58
5,573
113
21,008
11,240
1,699
678
7,466
-75
-7,378
-323
912
864
-7,831
-1,000
5,931
-7,379
874
943
11,219
274
10,990
1,039
710
-210
8,046
1,404
28 Change in foreign private assets in United States (increase, + ) . .
29
U.S. bank-reported liabilities3
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
70,976
16,370
7,533
-2,534
1,592
48,015
65,875
-11,371
-699
18,826
35,144
23,975
88,895
18,609
741
36,893
30,274
2,378
-1,290
-3,339
926
623
4,613
-4,113
23,442
-528
979
10,168
10,453
2,370
33,828
23,647
1,553
4,870
2,730
1,028
32,914
-1,171
-2,717
21,232
12,478
3,092
8,600
-22,048
34 Allocation of special drawing rights
35 Discrepancy
36 Due to seasonal adjustment
37 Before seasonal adjustment
0
0
30,820
-15,140
-12,218
30,820
-15,140
-12,218
0
0
0
0
0
0
-12,120
4,878
-16,998
0
1
0
-17,502
653
-18,155
0
0
2,123
-6,754
8,877
0
0
15,280
1,222
14,058
0
14,179
10,635
5,834
0
5,973
5,726
247
MEMO
Changes in official assets
38 U.S. official reserve assets (increase, - )
39 Foreign official assets in United States, excluding line 25
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22)
-2,158
5,763
3,901
-1,057
1,464
1,952
1,542
-983
32,042
16,022
38,142
21,066
20,330
-8,242
4,988
11,199
1,707
-4,882
5,857
2,583
-2,113
3,051
2,336
639
1. Seasonal factors not calculated for lines 12-16, 18-20, 22-34, and 38-40.
2. Data are on an international accounts basis. The data differ from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise trade data and are included in line 6.
3. Reporting banks include all types of depository institution as well as some
brokers and dealers.
4. Associated primarily 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.
SOURCE. U.S. Department of Commerce, Survey of Current Business.
A54
3.11
International Statistics • August 1993
U.S. FOREIGN TRADE 1
Millions of dollars; monthly data seasonally adjusted
1992
Item
1990
1991
1993
1992
Oct.
1 Exports of domestic and foreign
merchandise, excluding grant-aid
shipments
2 General imports including merchandise
for immediate consumption
plus entries into bonded
warehouses
393,592
421,730
448,164
Dec.
Jan.
Feb.
Mar. r
Apr."
38,885
37,7%
39,178
37,505
36,928
38,895
38,383
495,311
488,453
532,665
46,119
45,633
46,143
45,176
44,832
49,347
48,871
-101,718
3 Trade balance
-66,723
-84,501
-7,233
-7,837
-6,965
-7,672
-7,904
-10,453
-10,487
1. Government and nongovernment shipments of merchandise between foreign
countries and the fifty states, including the District of Columbia, Puerto Rico, the
U.S. Virgin Islands, and U.S. Foreign Trade Zones. Data exclude (1) shipments
among the United States, Puerto Rico, the U.S. Virgin Islands, and other U.S.
affiliated insular areas, (2) shipments to U.S. Armed Forces and diplomatic
missions abroad for their own use, (3) U.S. goods returned to the United States by
its Armed Forces, (4) personal and household effects of travelers, and (5)
in-transit shipments. Data reflect the total arrival of merchandise from foreign
countries that immediately entered consumption channels, warehouses, or U.S.
Foreign Trade Zones (general imports). Import data are Customs value; export
data are F.A.S. value. Beginning in 1990, data for U.S. exports to Canada are
derived from import data compiled by Canada; similarly, in Canadian statistics,
Canadian exports to the United States are derived from import data compiled by
3.12
Nov.
the United States. Since Jan. 1, 1987, merchandise trade data have been released
forty-five days after the end of the month; the previous month is revised to reflect
late documents.
Data in this table differ from figures for merchandise trade shown in the U . S .
balance of payments accounts (table 3.10, lines 2 to 4) primarily for reasons of
coverage. For both exports and imports a large part of the difference is the
treatment of military sales and purchases. The military sales to foreigners
(exports) and purchases from foreigners (imports) that are included in this table as
merchandise trade are shifted, in the balance of payments accounts, from
"merchandise t r a d e " into the broader category "military transactions."
SOURCE. FT900, U.S. Merchandise Trade, (U.S. Department of Commerce,
Bureau of the Census).
U.S. RESERVE ASSETS
Millions of dollars, end of period
1992
Asset
1989
1993
1990
Dec.
1 Total
Feb.
Mar.
Apr.
74,609
2 Gold stock, including Exchange
Stabilization Fund
3 Special drawing rights2,3
4 Reserve position in International
Monetary Fund
5 Foreign currencies 4
83,316
77,719
72,231
71,323
71,962
72,847
74,378
75,644
11,059
9,951
11,058
10,989
11,057
11,240
11,059
11,495
11,056
8,503
11,055
8,546
11,055
8,651
11,054
8,787
11,054
8,947
9,048
44,551
9,076
52,193
9,488
45,934
8,781
40,896
11,759
40,005
12,079
40,282
12,021
41,120
12,184
42,353
12,317
43,326
1. Gold held " u n d e r 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, line 3. Gold stock is valued at $42.22 per fine troy ounce.
2. Special drawing rights (SDRs) are valued according to a technique adopted
by the International Monetary Fund (IMF) in July 1974. Values are based on a
weighted average of exchange rates for the currencies of member countries. From
July 1974 through December 1980, 16 currencies were used; since January 1981,
3.13
Jan.
5 currencies have been used. U.S. SDR holdings and reserve positions in the IMF
also have been valued on this basis since July 1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1
of the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—
$710 million; 1979—$1,139 million; 1980—$1,152 million; 1981—$1,093 million;
plus net transactions in SDRs.
4. Valued at current market exchange rates.
FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1992
Asset
1989
1990
Nov.
1 Deposits
Held in custody
2 U.S. Treasury securities 2
3 Earmarked gold
Dec.
Jan.
Feb.
Mar.
Apr.
May"
589
369
968
229
205
325
2%
317
221
193
224,911
13,456
278,499
13,387
281,107
13,303
308,959
13,192
314,481
13,686
324,356
13,077
329,183
13,074
326,486
12,989
339,3%
12,924
345,060
12,854
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 at face value in dollars or foreign currencies.
1993
1991
3. Held for foreign and international accounts and valued at $42.22 per fine
troy ounce; not included in the gold stock of the United States.
Summary Statistics
3.14 FOREIGN BRANCHES OF U.S. BANKS
A55
Balance Sheet Data1
Millions of dollars, end of period
1993
1992
Account
1989
1990
1991
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
All foreign countries
ASSETS
1 Total payable in any currency
545,366
556,925
548,901
553,977
566,721
542,545
543,624
554,280
546,941 r
543,833
2 Claims on United States
7
Other branches of parent bank
8
Banks
9
Public borrowers
10
Nonbank foreigners
11 Other assets
198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
45,956
188,496
148,837
13,2%
26,363
312,449
135,003
72,602
17,555
87,289
55,980
176,301
137,509
12,884
25,908
303,934
111,729
81,970
18,652
91,583
68,666
174,986
138,940
10,683
25,363
319,139
115,521
86,560
20,809
%,249
59,852
177,443
141,542
10,019
25,882
328,592
125,143
86,086
20,378
%,985
60,686
166,798
132,275
9,703
24,820
318,071
123,256
82,190
20,756
91,869
57,676
169,278
134,218
9,570
25,490
314,736
116,325
81,812
19,984
%,615
59,610
172,304
139,170
9,249
23,885
317,868
115,323
84,439
19,822
98,284
64,108
171,648r
138,532r
9,073 r
24,043
314,912 r
112,598r
84,909 r
18,915
98,490 r
60,381 r
164,142
128,611
10,830
24,701
315,428
110,189
87,225
18,694
99,320
64,263
12 Total payable in U.S. dollars
382,498
379,479
363,941
364,000
374,420
365,824
353,643
361,251
353,315 r
344,319
13 Claims on United States
191,184
152,294
16,386
22,504
169,690
82,949
48,396
10,961
27,384
21,624
180,174
142,%2
12,513
24,699
174,451
95,298
36,440
12,298
30,415
24,854
169,662
133,476
12,025
24,161
167,010
78,114
41,635
13,685
33,576
27,269
169,290
136,156
9,360
23,774
173,427
76,098
45,436
13,966
37,927
21,283
171,938
138,424
9,291
24,223
182,360
83,902
45,931
13,995
38,532
20,122
162,125
129,329
9,266
23,530
183,527
83,117
47,250
14,313
38,847
20,172
164,681
131,554
9,213
23,914
171,120
77,606
41,616
13,883
38,015
17,842
167,773
136,650
8,704
22,419
174,726
77,681
43,067
13,710
40,268
18,752
167,051r
135,939
8,336 r
22,776
170,338r
75,871 r
41,266 r
13,068
40,133 r
15,926r
159,541
126,181
10,168
23,192
169,206
73,049
43,566
12,537
40,054
15,572
4
15
Other banks in United States
Other banks in United States
17 Claims on foreigners
18
Other branches of parent bank
19
Banks
20
Public borrowers
21
Nonbank foreigners
22 Other assets
United Kingdom
23 Total payable in any currency
161,947
184,818
175,599
167,786
168,333
165,850
164,360
165,132
162,122
163,194
24 Claims on United States
25
Parent bank
26
Other banks in United States
27
Nonbanks
28 Claims o n foreigners
29
Other branches of parent bank
30
Banks
31
Public borrowers
32
Nonbank foreigners
33 Other assets
39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
15,078
45,560
42,413
792
2,355
115,536
46,367
31,604
3,860
33,705
23,722
35,257
31,931
1,267
2,059
109,692
35,735
36,394
3,306
34,257
30,650
39,558
36,413
1,400
1,745
109,919
40,594
36,701
3,692
28,932
18,309
38,358
35,027
925
2,406
113,193
45,092
34,559
3,370
30,172
16,782
36,403
33,460
1,298
1,645
111,623
46,165
33,399
3,329
28,730
17,824
37,609
34,290
886
2,433
108,362
42,894
33,513
3,059
28,8%
18,389
34,919
32,779
783
1,357
110,420
41,317
36,601
2,542
29,960
19,793
34,989
31,719
892
2,378
106,944
39,466
34,914
2,531
30,033
20,189
33,353
29,605
757
2,991
109,428
39,673
38,138
2,755
28,862
20,413
34 Total payable in U.S. dollars
103,208
116,762
105,974
107,290
109,479
109,493
101,375
99,755
94,870
95,612
36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
7,742
41,259
39,609
334
1,316
63,701
37,142
13,135
3,143
10,281
11,802
32,418
30,370
822
1,226
58,791
28,667
15,219
2,853
12,052
14,765
37,359
35,299
769
1,291
61,658
30,217
17,269
2,515
11,657
8,273
35,956
33,765
438
1,753
65,164
34,434
16,848
2,501
11,381
8,359
34,508
32,186
1,022
1,300
66,335
34,124
17,089
2,349
12,773
8,650
35,481
33,070
684
1,727
59,505
30,823
14,316
2,154
12,212
6,389
32,929
31,559
428
942
60,695
28,856
16,800
1,883
13,156
6,131
32,783
30,443
413
1,927
57,530
30,017
13,422
1,949
12,142
4,557
31,233
28,420
393
2,420
60,180
29,388
16,903
1,888
12,001
4,637
35 Claims on United States
37
Other banks in United States
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
43
Nonbank foreigners
44 Other assets
Bahamas and Cayman Islands
45 Total payable in any currency
176,006
162,316
168,326
154,293
156,176
147,422
144,894
151,175
148,867
143,859
46 Claims on United States
47
Parent bank
48
Other banks in United States
50 Claims on foreigners
51
Other branches of parent bank
52
Banks
53
Public borrowers
54
Nonbank foreigners
55 Other assets
124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
7,633
112,989
77,873
11,869
23,247
41,356
13,416
16,310
5,807
5,823
7,971
115,244
81,520
10,907
22,817
45,229
11,098
20,174
7,161
6,7%
7,853
102,726
72,207
8,199
22,320
42,844
7,287
19,840
7,146
8,571
8,723
104,245
73,856
8,282
22,107
44,156
8,238
20,122
7,209
8,587
7,775
%,280
66,608
7,828
21,844
44,509
7,293
21,212
7,786
8,218
6,633
%,976
67,219
7,%2
21,795
41,185
7,041
18,464
7,564
8,116
6,733
102,836
73,825
7,892
21,119
40,821
7,311
17,440
7,422
8,648
7,518
100,687r
72,841
7,424 r
20,422
41,314 r
6,650
18,797r
7,188
8,679
6,866
%,829
67,190
9,279
20,360
40,442
6,873
17,662
6,690
9,217
6,588
56 Total payable in U.S. dollars
170,780
158,390
163,771
149,304
151,436
142,861
140,332
146,809
144,627
139,351
1. Since June 1984, reported claims held by foreign branches have been
reduced by an increase in the reporting threshold for " s h e l l " branches from $50
million to $150 million equivalent in total assets, the threshold now applicable to
all reporting branches.
A56
3.14
International Statistics • August 1993
FOREIGN BRANCHES OF U.S. BANKS
Balance Sheet Data1—Continued
1992
1993
Account
Nov.
Oct.
LIABILITIES
57 Total payable in any currency
Dec.
Jan.
Feb.
Mar.
Apr.
543,624
554,280
546,941
11,5% r
187,088"
125,650"
13,306
48,132"
13,748
176,082
114,964
11,952
49,166
All foreign countries
545,366
556,925
548,901
553,977
566,721
542,545
10,032
189,444
134,339
12,182
42,923
12,320
175,978
122,627
12,829
40,522
11,872
184,155
124,123
12,373
47,659
R
543,833
58 Negotiable certificates of deposit (CDs) . .
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks
23,500
197,239
138,412
11,704
47,123
18,060
189,412
138,748
7,463
43,201
16,284
198,121
136,431
13,260
48,430
12,056
189,090
133,110
12,281
43,699
12,342
188,116
131,918
13,392
42,806
63 To foreigners
64
Other branches of parent bank
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities
296,850
119,591
76,452
16,750
84,057
27,777
311,668
139,113
58,986
14,791
98,778
37,785
288,254
112,033
63,097
15,5%
97,528
46,242
315,401
118,001
70,439
20,572
106,389
37,430
330,315
126,018
74,536
20,645
109,116
35,948
309,704
125,160
62,189
19,731
102,624
33,365
321,297
120,179
67,843
23,654
109,621
34,029
319,638
119,601
70,056
21,469
108,512
38,615
312,417 r
115,535r
68,41l r
18,312 r
110,159"
35,840"
316,661
113,845
67,382
21,326
114,108
37,342
69 Total payable in U.S. dollars
396,613
383,522
370,561
365,399
372,819
368,773
353,725
363,285
353,431"
343,867
70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks
19,619
187,286
132,563
10,519
44,204
14,094
175,654
130,510
6,052
39,092
11,909
185,286
129,669
11,707
43,910
6,710
176,124
125,602
11,409
39,113
7,503
175,969
124,770
12,246
38,953
6,238
178,674
127,948
11,512
39,214
7,102
164,634
116,008
11,710
36,916
6,640
172,223
117,228
11,418
43,577
6,519
175,354"
119,040"
12,467
43,847"
7,062
163,715
107,948
11,282
44,485
75 To foreigners
76
Other branches of parent bank
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities
176,460
87,636
30,537
9,873
48,414
13,248
179,002
98,128
20,251
7,921
52,702
14,772
158,993
76,601
24,156
10,304
47,932
14,373
166,443
77,197
25,210
12,097
51,939
16,122
175,791
82,957
28,404
12,342
52,088
13,556
172,189
83,700
26,118
12,430
49,941
11,672
169,595
79,144
23,281
14,067
53,103
12,394
170,756
79,594
25,571
14,034
51,557
13,666
160,774"
77,685"
21,227"
10,762
51,100"
10,784"
163,149
75,682
22,150
12,627
52,690
9,941
162,122
163,194
United Kingdom
161,947
184,818
175,599
167,786
168,333
165,850
164,360
165,132
82 Negotiable CDs
83 T o United States
84
Parent bank
85
Other banks in United States
86
Nonbanks
20,056
36,036
29,726
1,256
5,054
14,256
39,928
31,806
1,505
6,617
11,333
37,720
29,834
1,438
6,448
6,064
35,399
27,427
1,341
6,631
5,636
34,532
26,471
1,689
6,372
4,517
39,174
31,100
1,065
7,009
5,774
32,780
25,099
1,742
5,939
5,597
33,092
24,250
1,633
7,209
87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities
92,307
27,397
29,780
8,551
26,579
13,548
108,531
36,709
25,126
8,361
38,335
22,103
98,167
30,054
25,541
9,670
32,902
28,379
109,358
33,6%
28,792
11,687
35,183
16,965
113,395
35,560
30,609
11,438
35,788
14,770
107,176
35,983
25,231
12,090
33,872
14,983
111,351
35,376
25,%5
14,188
35,822
14,455
110,514
35,143
27,227
12,938
35,206
15,929
104,356
33,424
23,985
10,531
36,416
15,002
108,670
33,545
26,082
12,342
36,701
14,449
81 Total payable in any currency
4,753
38,011
29,759"
1,192
7,060"
5,414
34,661
22,611
1,110
10,940
108,178
116,094
108,755
104,469
105,699
108,214
100,731
101,342
95,892
94,159
94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States
98
Nonbanks
18,143
33,056
28,812
1,065
3,179
12,710
34,697
29,955
1,156
3,586
10,076
33,003
28,260
1,177
3,566
4,213
31,266
26,021
866
4,379
4,494
30,204
25,160
906
4,138
3,894
35,417
29,957
709
4,751
4,770
28,545
23,767
1,063
3,715
4,444
28,874
23,097
1,097
4,680
3,765
33,552
28,405"
707
4,440"
4,214
30,170
21,145
676
8,349
99 To foreigners
100
Other branches of parent bank
101
Banks
102
Official institutions
103
Nonbank foreigners
104 Other liabilities
50,517
18,384
12,244
5,454
14,435
6,462
60,014
25,957
9,488
4,692
19,877
8,673
56,626
20,800
11,069
7,156
17,601
9,050
59,938
22,080
10,956
8,142
18,760
9,052
62,899
22,8%
13,050
8,459
18,494
8,102
62,048
22,026
12,540
8,847
18,635
6,855
60,107
20,807
9,740
10,114
19,446
7,309
59,643
20,516
10,359
9,%7
18,801
8,381
51,850
19,516
6,702
7,008
18,624
6,725
54,407
18,958
8,327
8,803
18,319
5,368
93 Total payable in U.S. dollars
Bahamas and Cayman Islands
105 Total payable in any currency
106 Negotiable CDs
107 To United States
108
Parent bank
109
Other banks in United States
110
Nonbanks
111 To foreigners
112
Other branches of parent bank
113
Banks
114
Official institutions
115
Nonbank foreigners
116 Other liabilities
117 Total payable in U.S. dollars
176,006
162,316
168,326
154,293
156,176
147,422
144,894
151,175
148,867
143,859
1,939
116,699
71,381
10,944
34,374
1,350
111,861
67,347
10,445
34,069
1,355
108,150
65,122
10,265
32,763
1,142
110,729
62,336
10,059
38,334
1,713
110,391
59,668"
11,492
39,231"
1,692
105,895
59,415
10,291
36,189
678
124,859
75,188
8,883
40,788
646
114,738
74,941
4,526
35,271
1,173
129,872
79,394
10,231
40,247
1,394
114,439
69,649
10,303
34,487
47,382
23,414
8,823
1,097
14,048
3,087
44,444
24,715
5,588
622
13,519
2,488
35,200
17,388
5,662
572
11,578
2,081
34,8%
15,441
6,988
1,058
11,409
3,564
35,411
16,287
7,574
932
10,618
2,127
32,556
15,169
6,422
805
10,160
1,655
33,766
15,411
6,350
932
11,073
1,623
37,690
18,056
7,%7
1,036
10,631
1,614
35,369
18,015
6,476
858
10,020
1,394
34,773
17,462
6,219
905
10,187
1,499
171,250
157,132
163,603
149,320
151,527
143,150
140,734
146,875
144,291
138,741
Summary Statistics
3.15
A57
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1993
1992
Item
1990
1991
Oct.
1 Total 1
2
3
4
5
6
7
8
9
10
11
12
Nov.
Dec.
Feb.
Mar.
Apr."
r
402,908
344,529
360,530
405,465
394,845
398,672
411,817
413,235
409,992
39,880
79,424
38,396
92,692
60,933
104,286
54,007
100,702
54,823
104,596
63,792
111,540
66,454
113,594
62,974 r
113,547
62,116
103,293
207,588
4,563
24,334
203,224
4,592
25,371
202,567
4,622
26,282
r
205,155
5,431
26,913
196,240
8,411
41,388
156,211
3,705
5,860
199,659
7,886
42,502
154,015
3,866
5,305
187,402r
9,326
44,509
157,918r
3,919
6,916
184,644
8,302
38,970
159,629
3,770
7,591
By type
Liabilities reported by banks in the.United States''
U.S. Treasury bills and certificates
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities
202,487
4,491
18,247
203,677
4,858
20,907
211,875
4,473
23,898
211,272
4,503
24,361
210,553
4,532
24,168
By area
Western Europe 1
Canada
Latin America and Caribbean
Asia
Africa
Other countries
167,191
8,671
21,184
138,096
1,434
7,955
168,365
7,460
33,554
139,465
2,092
9,592
194,551
8,111
38,678
153,555
3,481
7,087
184,207
6,381
38,945
154,493
3,779
7,038
188,693
7,920
40,015
152,148
3,565
6,329
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.
3.16
Jan.
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.
SOURCE. Based on Treasury Department 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.
LIABILITIES TO, A N D CLAIMS ON, FOREIGNERS Reported by Banks in the United States 1
Payable in Foreign Currencies
Millions of dollars, end of period
1992
Item
1989
1990
1993
1991
June
1 Banks' liabilities
2 Banks' claims
Deposits
3
4
Other claims
5 Claims of banks' domestic customers
67,835
65,127
20,491
44,636
3,507
1. Data on claims exclude foreign currencies held by U.S. monetary
authorities.
70,477
66,796
29,672
37,124
6,309
75,129
73,195
26,192
47,003
3,398
Sept.
Dec.
Mar.
71,240
58,262
23,466
34,796
4,375
84,487
72,003
28,074
43,929
3,987
73,227
62,772
24,186
38,586
4,432
80,641
64,037
23,660
40,377
2,625
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.
A58
International Statistics • August 1993
3.17 LIABILITIES TO FOREIGNERS
Payable in U.S. dollars
Reported by Banks in the United States1
Millions of dollars, end of period
1992
Item
1993
1991
1990
Oct.
Nov
Dec.
Jan.
Feb.
Mar.'
H O L D E R A N D T Y P E O F LIABILITY
R
1 Total, all foreigners
759,634
756,066
809,919
793,298
799,590
809,919
801,571
814,054
2 Banks' own liabilities
3
Demand deposits
4
Time deposits 2
5
Other.
6
Own foreign offices
577,229
21,723
168,017
65,822
321,667
575,374
20,321
159,649
66,305
329,099
606,168
160,327
93,854
330,165
590,791
21,302
157,488
92,315
319,686
601,073
21,935
156,814
%,294
326,030
606,168
21,822
160,327
93,854
330,165
592,187
21,106
150,095
103,828
317,158
605,432 r
22,310
147,195r
106,352r
329,575 r
585,748
21,580
141,781
99,241
323,146
182,405
96,796
180,692
110,734
203,751
127,649
202,507
127,993
198,517
122,480
203,751
127,649
209,384
133,799
208,622 r
135,300"
211,850
137,062
17,578
68,031
18,664
51,294
21,982
54,120
20,043
54,471
21,755
54,282
21,982
54,120
22,%9
52,616
20,735
52,587
22,309
52,479
5,918
4,540
36
1,050
3,455
8,981
6,827
43
2,714
4,070
9,350
6,951
46
3,214
3,691
10,727
7,001
73
1,899
5,029
9,915
6,982
58
2,561
4,363
9,350
6,951
46
3,214
3,691
11,099
7,837
39
2,809
4,989
ll,538 r
8,884 r
47
2,376
6,461 r
9,160
5,902
1%
2,730
2,976
1,378
364
2,154
1,730
2,399
1,908
3,726
3,085
2,933
2,371
2,399
1,908
3,262
2,774
2,654
2,348
3,258
2,876
1,014
424
0
486
5
641
561
486
5
488
306
382
119,303
34,910
1,924
14,359
18,628
131,088
34,411
2,626
16,504
15,281
159,419
51,058
1,274
17,828
31,956
165,219
57,225
1,723
19,741
35,761
154,709
50,027
1,492
17,834
30,701
159,419
51,058
1,274
17,828
31,956
175,332
59,577
1,397
18,685
39,495
180,048
62,687
1,764
18,9%
41,927
176,521
59,471
1,457
18,707
39,307
84,393
79,424
96,677
92,692
108,361
104,5%
107,994
104,286
104,682
100,702
108,361
104,5%
115,755
111,540
117,361
113,594
117,050
113,547
4,766
203
3,879
106
3,726
39
3,595
113
3,784
196
3,726
39
4,054
161
3,648
119
3,411
92
540,805
458,470
136,802
10,053
88,541
38,208
321,667
522,265
459,335
130,236
8,648
82,857
38.731
329,099
546,412
475,260
145,095
10,168
90,193
44,734
330,165
525,221
454,183
134,497
9,741
85,729
39,027
319,686
543,980
472,949
146,919
87,690
49,141
326,030
546,412
475,260
145,095
10,168
90,193
44,734
330,165
522,015
453,242
136,084
9,903
80,351
45,830
317,158
529,683 r
462,185 r
132,610"^
10,974
77,823 r
43,813 r
329,575 r
520,063
451,077
127,931
10,493
72,394
45,044
323,146
82,335
10,669
62.930
7,471
71,152
11,087
71,038
10,481
71,031
10,444
71,152
11,087
68,773
9,685
67,498
9,2%
68,986
9,976
5,341
66,325
5,694
49,765
7,568
52,497
7,325
53,232
7,572
53,015
7,568
52,497
7,708
51,380
6,692
51,510
7,957
51,053
93,608
79,309
9,711
64,067
5,530
93.732
74,801
9,004
57,574
8,223
94,738
72,899
10,334
49,092
13,473
92,131
72,382
9,765
50,119
12,498
90,986
71,115
10,297
48,729
12,089
94,738
72,899
10,334
49,092
13,473
93,125
71,531
9,767
48,250
13,514
92,785 r
71,676 r
9,525
48,00c
14,151r
91,854
69,298
9,434
47,950
11,914
14,299
6,339
18.931
8,841
21,839
10,058
19,749
10,141
19,871
8,%3
21,839
10,058
21,594
9,800
21,109 rr
10,062
22,556
10,663
6,457
1,503
8,667
1,423
10,202
1,579
8,482
1,126
9,838
1,070
10,202
1,579
10,719
1,075
10,089
958
10,559
1,334
7,073
7,456
9,114
7,672
7,716
9,114
9,724
9,499
9,548
7 Banks' custodial liabilities 5
8
U.S. Treasury bills and certificates
9
Other negotiable and readily transferable
instruments
10
Other
11 Nonmonetary international and regional
organizations
12
Banks' own liabilities
13
Demand deposits
14
Time deposits 2
15
Other.
16
17
18
19
Banks' custodial liabilities 5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments
Other
20 Official institutions 9
21
Banks' own liabilities
22
Demand deposits
23
Time deposits 2
24
Other
25
26
27
28
Banks' custodial liabilities 5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments
Other
29 Banks 1 0
30
Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other.
35
Own foreign offices 4
36
37
38
39
Banks' custodial liabilities 5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments
Other
40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other 3
45
46
47
48
Banks' custodial liabilities 5
U.S. Treasury bills and certificates
Other negotiable and readily transferable
instruments
Other
0
21,822
0
1
10,088
0
0
797,598
0
MEMO
49 Negotiable time certificates of deposit in custody for
foreigners
1. Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
" O t h e r negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts due to own foreign branches and foreign
subsidiaries consolidated in Consolidated Report of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of
foreign banks, consists principally of 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, the
Inter-American Development Bank, and the Asian Development Bank. Excludes
"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."
Nonbank-Reported
Data
3.17—Continued
1993
1992
1992
1990
Dec.
Oct.
Jan.
Feb.
AREA
1 Total, all foreigners .
2 Foreign countries . . .
3 Europe
4
Austria
Belgium and Luxembourg .
Denmark
Finland
France
Germany
Greece
11
Italy
12
Netherlands
13
Norway
14
Portugal
15
Spain
16
Sweden
17
Switzerland
18
Turkey
19
United Kingdom
20
Yugoslavia 11
21
Others in Western Europe 1
22
Russia
' 1"
3
23
Other Eastern Europe'
24 Canada
759,634
756,066
809,919
793,298
799,590
809,919
801,571
814,054 1
797,598'
790,472
802,516 r
788,438'
303,721
1,158
21,255
1,885
304,755 r
1,942
19,729
2,835
2,049
32,457
18,934
758
10,701
11,711
2,521
2,508
17,233
l,902 r
40,227
2,862
105,504r
512
27,491 r
497
2,382
293,384 r
1,256
19,475
1,536
2,297
31,712
16,107r
761
8,907
11,418
2,350
2,489
15,735'
1,619
39,5%
2,520
106,341'
523'
25,748
535
2,459
753,716
747,085
800,569
782,571
789,675
800,569
254,452
1,229
12,382
1,399
602
30,946
7,485
934
17,735
5,350
2,357
2,958
7.544
1,837
36,690
1,169
109,555
928
11,689
119
1.545
249,097
1,193
13,337
937
1,341
31,808
8,619
765
13,541
7,161
1,866
2,184
11,391
2,222
37,238
1,598
100,292
622
9,274
241
3,467
308,398
1,611
20,572
3,060
1,299
41,459
18,631
910
10,041
7,372
3,319
2,465
9,796
2,986
39,440
2,666
112,434
504
25,834
577
3,422
306,547
1,584
21,183
1,788
949
34,881
13,810
872
11,104
8,962
1,577
2,258
14,602
5,312
38,240
2,524
114,705
577
27,228
450
3,941
311,875
1,358
19,662
1,481
1,144
39,968
15,401
749
12,494
8,411
2,014
2,255
10,383
4,485
40,791
2,360
117,353
575
26,691
601
3,699
308,398
1,611
20,572
3,060
1,299
41,459
18,631
910
10,041
7,372
3,319
2,465
9,796
2,986
39,440
2,666
112,434
504
25,834
577
3,422
20,349
21,605
22,746
21,378
22,052
22,746
21,467
22,898
25,040'
316,008
9,477
3,976
1,047
2,092
11,003
6,066
7.079
5,584
151,886
3,035
4,580
3
993
1,377
371
19,456
5,205
4,177
1.080
1,955
11,387
6,151
313,248
10,792
84,767
6,319
5,321
146,879
3,638
4,438
2
945
1,311
294
20,023
4,352
4,013
1,052
1,898
11,106
6,098
320,506 r
10,608
87,802 r
6,508
5,304
149,506
3,420
4,417
3
886
1,311
279
21,207
4,869
4,214
1,045
2,061
10,984
6,082
318,278'
11,568
83,552'
6,304
5,462
150,803
3,325
4,183
3
928
1,382
309
21,772
4,221
3,927
995
1,815
11,446
6,283
136,111
143,362
141,524
143,518r
140,187'
3,114
8,929
17,510
1,323
1,392
3,389
56,007
3,415
2,350
5,722
19,877
18,4%
3,007
9,102
19,445
1,377
1,460
3,371
57,993 r
3,468
2,746
5,375
19,897
16,277
2,957
9,022'
16,949'
1,399
1,871
3,930
56,845'
3,307
2,774
5,342
19,692
16,099
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
332,997
7,365
107,386
2,822
5,834
147,321
3,145
4,492
11
1,379
1,541
257
16,650
7,357
4,574
1,294
2,520
12,271
6,779
345,529
7,753
316,008
9,477
100,622
82,212
3,178
5,704
163,620
3,283
4,661
2
1,232
1,594
231
19,957
5,592
4,695
1,249
2,096
13,181
6,879
7.079
5,584
151,886
3,035
4,580
3
993
1,377
371
19,456
5,205
4,177
1.080
1,955
11,387
6,151
44 Asia
China
45
People's Republic of China
46
Republic of China (Taiwan)
47
Hong Kong
48
India
49
Indonesia
50
Israel
51
Japan
52
Korea (South)
53
Philippines
54
Thailand
55
Middle Eastern oil-exporting countries
56
Other
136,844
120,462
143,362
310,015
9,387
85,878
5,889
5,828
143,311
3,253
4,767
10
1,026
1,376
274
19,216
4,708
4,116
1,141
2,087
11,504
6,244
134,385
309,750
8,715
86,310
6,355
5,235
143,084
2,925
4,677
11
1,016
1,323
271
19,543
6,101
82,212
1,862
34,285
20,685
815
8,759
8,731
3,550
2,518
14,904
2,%2
41,533
2,533
106,700
506
25,926
436
2,718
2,421
11,246
12,754
1,233
1,238
2,767
67,076
2,287
1,585
1.443
15,829
16,965
2,626
11,491
14,269
2,418
1.463
2,015
47,069
2,587
2,449
2,252
15,752
16,071
3,202
8,379
18.445
1,396
1,480
3,775
58,332
3,336
2,275
5,582
21.446
15,714
2,582
8,616
17,542
1,234
1,260
2,208
56,101
3,529
2,275
5,082
19,040
14,916
2,559
8,750
16,322
1,210
1,217
3,691
55,356
3,698
2,223
5,797
20,266
15,022
3,202
8,379
18.445
1,3%
1,480
3,775
58,332
3,336
2,275
5,582
21.446
15,714
57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries
63
Other
4,630
1,425
104
228
53
1,110
1,710
4,825
5,843
2,598
98
240
24
1,201
6,062
1,784
5,884
2,472
76
190
19
1,346
1,781
1,682
93
214
23
1,402
1,729
5,884
2,472
76
190
19
1,346
1,781
5,913
2,756
88
158
25
1,125
1,761
6,364
3,077
92
319
17
1,135
1,724
6,502
3,084
87
243
13
1,239
1,836
64 Other
65
Australia
66
Other . . .
4.444
3,807
637
5,567
4.464
1,103
4,171
3,047
1,124
4,403
2,987
1,416
3,825
2,654
1,171
4,171
3,047
1,124
4,599
3,502
1,097
4,475
3,388
1,087
5,047
4,013
1,034
67 Nonmonetary international and regional
organizations
International 1
Latin American regional
Other regional 18
5,918
4,390
1,048
479
8,981
6,485
9,350
7,434
1,415
501
10,727
7,689
2,130
908
9,915
6,764
2,248
903
9,350
7,434
1,415
501
11,099
7,864
2,327
908
ll,538 r
8,857 r
1,738
943
9,160'
68
69
70
1,621
79
228
31
1,082
1,181
1,315
11. Beginning December 1992, excludes Bosnia, Croatia, and Slovenia.
12. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23. Beginning December 1992, includes, in addition, all
former parts of the U.S.S.R. (except Russia), and Bosnia-Hercegovina, Croatia,
and Slovenia.
13. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
14. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
2,601
6,116'
2,021
1,023
15. Comprises Algeria, Gabon, Libya, and Nigeria.
16. Principally the International Bank for Reconstruction and Development.
Excludes "holdings of dollars" of the International Monetary Fund.
17. Principally the Inter-American Development Bank.
18. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western E u r o p e . "
A59
A60
3.18
International Statistics • August 1993
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1992
Area and country
1990
1991
1993
1992
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr."
1 Total, all foreigners
511,543
514,339
495,713
493,689
490,721
495,713
483,903
493,560r
473,440'
468,808
2 Foreign countries
506,750
508,056
490,631
491,217
487,840
490,631
480,803
489,452r
470,118r
466,391
3
4
113,093
362
5,473
497
1,047
14,468
3,343
727
6,052
1,761
782
292
2,668
2,094
4,202
1,405
65,151
1,142
597
530
499
114,310
327
6,158
686
1,907
15,112
3,371
553
8,242
2,546
669
344
1,881
2,335
4,540
1,063
60,395
825
789
1,970
597
124,130
341
6,404
707
1,419
14,847
4,229
718
9,048
2,497
356
325
2,772
4,929
4,722
962
63,980
569
1,706
3,147
452
126,170
414
6,980
830
817
16,111
5,629
583
9,752
2,334
666
327
4,642
6,678
3,688
1,177
60,209
668
959
3,190
516
122,143
463
6,423
1,056
1,230
15,718
5,328
598
9,443
3,006
435
330
3,481
5,786
3,591
950
58,991
661
1,019
3,174
460
124,130
341
6,404
707
1,419
14,847
4,229
718
9,048
2,497
356
325
2,772
4,929
4,722
962
63,980
569
1,706
3,147
452
117,308
366
6,473
705
1,275
14,012
5,544
669
8,716
2,927
649
390
2,593
5,340
4,493
1,071
56,262
571
1,607
3,154
491
124,724
530
5,886
785
1,226
14,670
5,370
668
8,466
3,279
750
494
4,158
5,155
4,971
1,041
61,394
567
1,607
3,154
553
122,668r
1,101
6,066
682
1,010
13,340*
s.soo1'
583
8,493
2,676
645
454
3,889
4,809
4,423r
943
62,045r
553
1,780
2,906
470
120,253
1,013
6,177
645
998
13,141
5,322
610
8,729
2,607
714
513
3,642
4,509
4,352
1,639
60,317
551
1,316
2,889
569
6
7
8
9
10
11
1?
13
14
15
16
17
18
19
70
71
7?
23
Austria
Belgium and Luxembourg
Denmark
Finland
Germany
Greece
Italy
Netherlands
Norway
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia2
Others in Western Europe
Russia
Other Eastern Europe
16,091
15,113
14,185
16,830
15,834
14,185
16,481
14,972
18,356r
17,067
75 Latin America and Caribbean
Argentina
76
77
78
79
Brazil
British West Indies
30
Chile
31
3?
Colombia
33
Cuba
34
35 Guatemala
36 Jamaica
Mexico
37
38 Netherlands Antilles
39 Panama
40
Peru
41
Uruguay
Venezuela
4?
Other
43
231,506
6,967
76,525
4,056
17,995
88,565
3,271
2,587
0
1,387
191
238
14,851
7,998
1,471
663
786
2,571
1,384
246,137
5,869
87,138
2,270
11,894
107,846
2,805
2,425
0
1,053
228
158
16,567
1,207
1,560
739
599
2,516
1,263
213,772
4,882
59,532
5,934
10,733
98,738
3,397
2,750
0
884
262
167
15,049
1,379
4,474
730
936
2,525
1,400
213,423
4,564
64,853
2,798
11,558
96,906
3,323
2,595
5
936
275
147
16,621
1,080
1,979
713
882
2,700
1,488
217,040
4,605
65,139
6,035
11,583
96,325
3,309
2,698
0
926
255
162
16,495
1,529
2,080
723
877
2,880
1,419
213,772
4,882
59,532
5,934
10,733
98,738
3,397
2,750
0
884
262
167
15,049
1,379
4,474
730
936
2,525
1,400
218,391
4,804
62,831
6,797
10,924
100,926
3,690
2,752
0
853
240
170
15,216
1,735
2,024
735
895
2,409
1,390
210,770
4,859
63,898
2,851
10,507
94,885
3,795
2,819
0
835
257
164
15,988
1,938
2,307
708
844
2,485
1,630
201,911r
4,835
57,030*
3,910
10,863
92,134r
3,638r
2,807
0
809*
274
168*
15,103*
2,107
2,539*
650
846
2,558*
1,640*
200,118
3,922
57,531
5,609
10,780
88,670
3,548
2,786
0
798
269
178
15,507
1,987
2,309
691
795
2,858
1,880
44
138,722
125,262
131,248
127,358
126,143
131,248
121,729
131,494r
119,559*
121,960
620
1,952
10,648
655
933
774
90,699
5,766
1,247
1,573
10,749
13,106
747
2,087
9,617
441
952
860
84,807
6,048
1,910
1,713
8,284
7,796
906
2,046
9,673
529
1,189
820
78,609
6,170
2,145
1,867
18,559
8,735
978
1,848
9,095
500
1,112
826
80,253
6,113
2,181
1,764
15,488
7,200
624
1,653
9,287
539
1,135
937
77,676
6,288
2,034
1,873
16,858
7,239
906
2,046
9,673
529
1,189
820
78,609
6,170
2,145
1,867
18,559
8,735
774
1,683
9,145
532
1,323
877
74,593
6,063
1,871
1,796
17,083
5,989
892
1,585
10,298
549
1,292
809
79,791r
6,753
1,842
1,737
17,775
8,171
939
1,630*
10,542*
443
1,469
896*
67,294*
6,938*
1,713
1,659
19,048
6,988*
1,388
1,670
9,215
549
1,432
1,057
71,267
7,048
1,645
1,775
17,909
7,005
5,445
380
513
1,525
16
1,486
1,525
4,928
294
575
1,235
4
1,298
1,522
4,289
194
441
1,041
4
1,004
1,605
4,303
229
452
1,036
4
1,056
1,526
4,233
214
443
1,063
4
1,029
1,480
4,289
194
441
1,041
4
1,004
1,605
4,262
171
421
1,069
3
1,067
1,531
4,147
291
403
1,030
3
1,108
1,312
3,871
192
396
1,011*
3
1,140*
1,129
3,745
151
396
924
3
1,142
1,129
64 Other
65
Australia
Other
66
1,892
1,413
479
2,306
1,665
641
3,007
2,263
744
3,133
1,951
1,182
2,447
1,601
846
3,007
2,263
744
2,632
1,896
736
3,345
2,552
793
3,753
3,117
636
3,248
2,632
616
67 Nonmonetary international and regional
organizations
4,793
6,283
5,082
2,472
2,881
5,082
3,100
4,108
3,322*
2,417
24 Canada
45
46
47
48
49
50
51
5?
53
54
55
56
57
58
59
60
61
6?
63
China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Korea (South)
Thailand
Middle Eastern oil-exporting countries
Other
Egypt
Morocco
South Africa
Zaire
Oil-exporting countries
Other
1. Reporting banks include all types of depository institutions, as well as some
brokers and dealers.
2. Beginning December 1992, excludes Bosnia, Croatia, and Slovenia.
3. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23. Beginning December 1992, includes, in addition, all
former parts of the U.S.S.R. (except Russia), and Bosnia-Hercegovina, Croatia,
and Slovenia.
4. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
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."
Nonbank-Reported
3.19
Data
BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1993
1992
Claim
1990
1992
1991
Oct.
Nov.
493,689
32,056
298,056
112,224
60,856
51,368
51,353
490,721
30,955
290,974
112,512
61,999
50,513
56,280
Dec.
Jan.
Feb/
483,903
33,163
290,938
101,949
53,612
48,337
57,853
493,560
30,372
303,819
102,870
51,690
51,180
56,499
Mar/
Apr."
525,329
555,697
1 Total
579,044
579,683
555,697
2 Banks' claims
3
Foreign public borrowers
4
Own foreign offices
5
Unaffiliated foreign banks
6
Deposits
7
Other
8
All other foreigners
511,543
41,900
304,315
117,272
65,253
52,019
48,056
514,339
37,126
318,800
116,602
69,018
47,584
41,811
495,713
31,370
299,770
109,909
61,125
48,784
54,664
67,501
14,375
65,344
15,280
59,984
15,452
59,984
15,452
51,889
12,000
41,333
37,125
31,400
31,400
27,283
11,792
12,939
13,132
13,132
12,606
13 Customer liability on acceptances
13,628
8,974
8,701
8,701
7,876
14 Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States . .
44,638
40,146
33,605
9 Claims of banks' domestic customers 3
10
Deposits
11
Negotiable and readily transferable
instruments
12
Outstanding collections and other
claims
495,713
31,370
299,770
109,909
61,125
48,784
54,664
473,440
33,654
289,928
97,568
49,045
48,523
52,290
MEMO
34,522
1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are quarterly.
Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. For U.S. banks, includes amounts due from own foreign branches and
foreign subsidiaries consolidated in Consolidated Report of Condition filed with
bank regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists principally of amounts due from head office or parent
3.20
33,708
33,605
36,159
36,826
36,434
1992
1991
1989
June
1 Total
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
By borrower
Maturity of one year or less . . .
Foreign public borrowers
All other foreigners
Maturity of more than one year 2
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less 2
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of more than one year 2
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Sept.
Dec.
238,123
206,903
195,302
196,768
187,398
195,626
178,346
23,916
154,430
59,776
36,014
23,762
165,985
19,305
146,680
40,918
22,269
18,649
162,573
21,050
141,523
32,729
15,859
16,870
162,433
20,528
141,905
34,335
15,145
19,190
155,254
17,863
137,391
32,144
13,295
18,849
164,059
17,867
146,192
31,567
13,223
18,344
53,913
5,910
53,003
57,755
3,225
4,541
49,184
5,450
49,782
53,258
3,040
5,272
51,835
6,444
43,597
51,059
2,549
7,089
54,997
7,986
49,094
41,409
2,127
6,820
55,986
5,949
45,241
40,824
2,183
5,071
53,885
4,121
2,353
45,816
4,172
2,630
684
3,859
3,290
25,774
5,165
2,374
456
3,878
3,595
18,277
4,459
2,335
185
6,752
3,158
16,827
4,979
2,356
263
6,625
3,227
15,092
4,815
2,107
278
5,360
3,290
15,166
4,977
2,364
410
1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.
n.a.
foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of
head office or parent foreign bank.
3. Assets 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 Federal
Reserve
Bulletin, vol. 65 (July 1979), p. 550.
BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
Maturity, by borrower and area
468,808
30,645
283,167
98,832
50,245
48,587
56,164
6,118
50,320
45,862
1,810
6,064
2. Maturity is time remaining to maturity.
3. includes nonmonetary international and regional organizations.
A61
A62
International Statistics • August 1993
3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1
Billions of dollars, end of period
1991
Area or country
1989
1992
1993
1990
Mar.
June
Sept.
Dec.
Mar.
June
Sept.
Dec.
Mar."
338.8
317.8
325.3
320.4
335.7
341.5
347.9
357.4
343.9
345.8
360.6
152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.2
132.1
5.9
10.4
10.6
5.0
3.0
2.2
4.4
60.8
5.9
23.9
129.9
6.2
9.7
8.8
4.0
3.3
2.0
3.7
62.3
6.8
23.2
129.8
6.1
10.5
8.3
3.6
3.3
2.5
3.3
59.5
8.2
24.6
134.0
5.8
11.1
9.7
4.5
3.0
2.1
3.9
64.9
5.8
23.2
137.2
6.0
11.0
8.3
5.6
4.7
1.9
3.4
68.5
5.8
22.2
131.1
5.3
10.0
8.4
5.4
4.3
2.0
3.2
64.8
6.6
21.1
136.3
6.2
12.0
8.8
8.0
3.3
1.9
4.6
65.9
6.7
18.7
137.5
6.2
15.5
10.9
6.4
3.7
2.2
5.2
61.8
6.7
18.9
134.0
5.6
15.4
9.3
6.5
2.8
2.3
4.8
61.4
6.6
19.2
144.1
5.9
13.7
10.0
6.8
3.7
3.0
5.4
66.5
8.6
20.5
21.0
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
1.0
2.0
1.6
22.9
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
1.2
1.8
1.8
23.5
1.4
.9
1.0
2.5
1.5
.6
9.0
1.7
1.2
1.8
1.9
21.3
1.1
1.2
.8
2.4
1.5
.6
7.1
1.9
1.1
1.8
2.0
22.1
1.0
.9
.6
2.3
1.4
.5
8.3
1.6
1.3
1.6
2.4
22.8
.6
.9
.7
2.6
1.4
.6
8.3
1.4
1.8
1.9
2.7
21.5
.8
.8
.8
2.3
1.5
.5
7.7
1.2
1.5
1.8
2.3
25.5
.8
1.3
.8
2.8
1.7
.5
10.1
1.5
2.0
1.7
2.3
25.1
.8
1.5
1.0
3.0
1.6
.5
9.8
1.5
1.5
1.7
2.3
24.1
1.2
.9
.7
3.0
1.2
.4
9.0
1.3
1.7
1.7
2.9
25.6
1.5
.8
.7
2.8
1.8
.7
9.6
1.4
2.0
1.6
2.8
17.1
1.3
7.0
2.0
5.0
1.7
12.8
1.0
5.0
2.7
2.5
1.7
17.1
.9
5.1
2.8
6.6
1.6
14.0
.9
5.3
2.6
3.7
1.5
15.6
.8
5.6
2.8
5.0
1.5
14.6
.7
5.4
2.8
4.2
1.5
15.8
.7
5.4
3.0
5.3
1.4
16.2
.7
5.3
3.0
5.9
1.4
15.9
.7
5.4
3.0
5.4
1.4
16.1
.6
5.2
3.0
6.2
1.1
16.7
.6
5.3
3.1
6.7
1.0
77.5
65.4
66.4
65.0
65.0
64.3
70.2
68.1
72.9
72.2
74.3
6.3
19.0
4.6
1.8
17.7
.6
2.8
5.0
14.4
3.5
1.8
13.0
.5
2.3
4.7
13.9
3.6
1.7
13.7
.5
2.2
4.6
11.6
3.6
1.6
14.3
.5
2.0
4.5
10.5
3.7
1.6
16.2
.4
1.9
4.8
9.6
3.6
1.7
15.5
.4
2.1
5.0
10.8
3.9
1.6
18.2
.4
2.2
5.1
10.6
4.0
1.6
16.3
.4
2.2
6.2
10.8
4.2
1.7
17.1
.5
2.5
6.6
10.8
4.4
1.8
16.0
.5
2.6
7.0
11.6
4.6
1.9
16.8
.4
2.6
.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0
.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7
.4
3.6
3.5
.5
6.8
2.0
3.7
1.6
2.1
.6
4.1
3.0
.5
6.9
2.1
3.7
1.7
2.3
.4
4.1
2.8
.5
6.5
2.3
3.6
1.9
2.3
.3
4.1
3.0
.5
6.8
2.3
3.7
1.7
2.4
.3
4.8
3.6
.4
6.9
2.5
3.6
1.7
2.3
.3
4.6
3.8
.4
6.9
2.7
3.1
1.9
2.5
.3
5.0
3.6
.4
7.4
3.0
3.6
2.2
2.7
.7
5.2
3.2
.4
6.6
3.0
3.6
2.2
2.7
.6
5.3
3.1
.5
6.5
3.3
3.4
2.2
2.7
.4
.9
.0
1.0
.4
.8
.0
1.0
.4
.8
.0
.8
.4
.7
.0
.8
.4
.7
.0
.8
.4
.7
.0
.7
.3
.7
.0
.7
.5
.7
.0
.6
.3
.6
.0
.9
.2
.6
.0
1.0
.2
.5
.0
1.0
Other
3.5
.7
1.6
1.3
2.3
.2
1.2
.9
2.1
.3
1.0
.8
2.1
.4
1.0
.7
1.8
.4
.8
.7
2.4
.9
.9
.7
2.9
1.4
.8
.6
3.0
1.7
.7
.6
3.1
1.8
.7
.7
3.1
1.9
.6
.6
3.0
1.7
.6
.7
Other
36.6
5.5
1.7
9.0
2.3
1.4
.1
9.7
7.0
.0
42.5
2.8
4.4
11.5
7.9
1.4
.1
7.7
6.6
.0
50.0
8.3
4.4
14.1
1.1
1.5
.1
11.6
8.9
.0
48.3
6.8
4.2
14.9
1.4
1.3
.1
12.4
7.2
.0
52.7
6.7
7.1
13.8
3.9
1.3
.1
12.1
7.7
.0
52.0
11.9
2.3
15.8
1.2
1.3
.1
12.2
7.1
.0
58.4
14.0
3.9
17.4
1.0
1.3
.1
12.2
8.5
.0
59.4
12.2
5.1
18.1
.8
1.7
.1
15.0
6.4
.0
52.3
8.1
3.8
15.7
.7
1.8
.1
15.2
6.8
.0
55.2
5.6
6.2
20.1
1.1
1.7
.1
13.8
6.5
.0
57.5
8.3
4.1
16.4
1.6
1.9
.1
16.7
8.4
.0
30.3
39.8
36.4
39.9
44.6
48.2
48.0
48.6
36.8
41.0
39.3
1 Total
6
Italy
16
Finland
19
20
21
Portugal
Spain
Turkey
25 OPEC 2
Latin
33
34
Brazil
Chile
37
38
America
Peru
Other
Asia
China
43
47
Korea (South)
Other Asia 3
Africa
50
55
65
Zaire
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).
Since June 1984, 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.
2. 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).
3. Excludes Liberia.
4. Includes Canal Zone beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional
organizations.
Nonbank-Reported
3.22
Data
A63
LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States 1
Millions of dollars, end of period
1992
1991
1989
Type and area or country
1990
1991
Sept.
Dec.
Mar.
June
Sept.
Dec.
1
38,764
46,043
43,156
43,218
43,156
44,098
44,176
45,166
43,066r
?
3 Payable in foreign currencies
33,973
4,791
40,786
5,257
37,764
5,392
38,482
4,736
37,764
5,392
38,640
5,458
37,481
6,695
36,574
8,592
35,661r
7,405r
17,879
14,035
3,844
21,066
16,979
4,087
21,893
17,781
4,112
21,652
17,947
3,705
21,893
17,781
4,112
22,255
18,027
4,228
21,988
16,744
5,244
23,406
16,468
6,938
21,989"
15,642"
6,347"
20,885
8,070
12,815
19,938
947
24,977
10,683
14,294
23,807
1,170
21,263
8,310
12,953
19,983
1,280
21,566
8,313
13,253
20,535
1,031
21,263
8,310
12,953
19,983
1,280
21,843
8,926
12,917
20,613
1,230
22,188
9,516
12,672
20,737
1,451
21,760
9,409
12,351
20,106
1,654
21,077"
9,038"
12,039"
20,019"
1,058
11,660
340
258
464
941
541
8,818
10,978
394
975
621
1,081
545
6,357
11,905
217
2,106
682
1,056
408
6,429
12,311
397
2,164
682
1,050
497
6,589
11,905
217
2,106
682
1,056
408
6,429
12,449
174
1,997
666
1,025
355
7,338
13,030
194
2,324
836
979
490
7,344
14,070
256
2,785
941
980
627
7,680
12,500"
427
1,608
740
606
569
7,887"
By type
4
5
6
Payable in dollars
Payable in foreign currencies
7 Commercial liabilities
8
9
Advance receipts and other liabilities
10 Payable in dollars
11 Payable in foreign currencies
By area or country
Financial liabilities
1?
13
14
15
16
17
18
Belgium and Luxembourg
United Kingdom
610
19
229
267
305
267
283
337
320
491
4,153
371
0
0
3,160
5
4
4,325
537
114
6
3,065
7
4
3,883
314
0
6
2,961
6
4
4,325
537
114
6
3,065
7
4
4,062
396
114
8
2,930
7
4
3,323
343
114
10
2,182
8
4
3,345
220
115
18
2,291
12
5
3,480
349
114
19
2,307
12
6
Venezuela
1,357
157
17
0
724
6
0
77
78
29
Japan
Middle East oil-exporting countries 2
4,151
3,299
2
5,295
4,065
5
5,338
4,102
13
5,149
4,000
19
5,338
4,102
13
5,366
4,107
13
5,209
4,116
10
5,581
4,548
17
5,484"
4,451"
19
30
31
Oil-exporting countries 3
2
0
2
0
6
4
3
2
6
4
7
6
0
0
5
0
6
0
100
409
52
1
52
88
89
85
28
9,071
175
877
1,392
710
693
2,620
10,310
275
1,218
1,270
844
775
2,792
7,808
248
830
944
709
488
2,310
8,084
225
992
911
751
492
2,217
7,808
248
830
944
709
488
2,310
7,501
256
678
880
574
482
2,445
7,144
240
659
702
605
400
2,404
6,714
173
688
744
601
369
2,262
?0
71
7?
73
74
75
26
32
Latin America and Caribbean
Brazil
British West Indies
Mother4
Commercial liabilities
33
34
35
36
37
38
39
Belgium and Luxembourg
United Kingdom
6,700"
287"
663"
617"
556"
398
2,250"
40
Canada
1,124
1,261
990
1,011
990
1,095
1,077
1,085
891"
41
47
43
44
45
46
47
Latin America and Caribbean
1,224
41
308
100
27
323
164
1,672
12
538
145
30
475
130
1,352
3
310
219
107
304
94
1,512
14
450
211
46
291
102
1,352
3
310
219
107
304
94
1,701
13
493
230
108
375
168
1,803
8
409
212
73
475
279
1,518
3
338
115
85
322
147
1,586"
6
293"
203"
57"
444
130"
7,550
2,914
1,632
9,483
3,651
2,016
9,330
3,720
1,498
8,855
3,363
1,780
9,330
3,720
1,498
9,890
3,549
1,591
10,439
3,537
1,778
11,006
3,909
1,813
10,772"
3,994"
1,961"
886
339
844
422
713
327
836
357
713
327
644
253
775
389
675
337
556"
295"
1,030
1,406
1,070
1,268
1,070
1,012
950
762
572"
Brazil
British West Indies
48
49
50
Middle Eastern oil-exporting countries
51
52
Oil-exporting countries 3
53
Other 4
2,
1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), 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.
A64
3.23
International Statistics • August 1993
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States 1
Reported by Nonbanking Business Enterprises in
Millions of dollars, end of period
1991
Type, and area or country
1989
1990
1992
1991
Sept.
Dec.
Mar.
June
Sept.
Dec.
1 Total
33,173
35,348
42,667
38,315
42,667
42,199
41,869
38,659
38,HOT
2 Payable in dollars
3 Payable in foreign currencies
30,773
2,400
32,760
2,589
40,098
2,569
35,952
2,363
40,098
2,569
39,558
2,641
38,899
2,970
35,738
2,921
35,593r
2,517r
By type
4 Financial claims
5 Deposits
6
Payable in dollars
7
Payable in foreign currencies
Other financial claims
8
9
Payable in dollars
10
Payable in foreign currencies
19,297
12,353
11,364
989
6,944
6,190
754
19,874
13,577
12,552
1,025
6,297
5,280
1,017
25,463
17,218
16,343
875
8,245
7,365
880
22,536
16,188
15,182
1,006
6,348
5,611
737
25,463
17,218
16,343
875
8,245
7,365
880
25,328
16,964
15,803
1,161
8,364
7,617
747
24,612
15,116
13,829
1,287
9,4%
8,771
725
21,367
12,547
11,489
1,058
8,820
7,788
1,032
20,922
12,759r
11,97^
789r
8,163r
7,425
738r
11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
14 Payable in dollars
15 Payable in foreign currencies
13,876
12,253
1,624
13,219
657
15,475
13,657
1,817
14,927
548
17,204
14,479
2,725
16,390
814
15,779
13,429
2,350
15,159
620
17,204
14,479
2,725
16,390
814
16,871
14,266
2,605
16,138
733
17,257
14,756
2,501
16,299
958
17,292
14,552
2,740
16,461
831
17,188r
14,910r
2,278
16,198r
990r
8,463
28
153
152
238
153
7,4%
9,645
76
371
367
265
357
7,971
13,546
13
312
342
385
591
11,251
13,129
76
255
434
420
580
10,997
13,546
13
312
342
385
591
11,251
14,205
12
277
290
727
682
11,631
13,200
25
786
381
732
779
8,768
11,249
16
809
321
766
602
7,727
9,346
8
774
401
536
507
5,947
16
17
18
19
20
21
22
By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
23
Canada
1,904
2,934
2,679
2,163
2,679
2,750
2,529
2,256
1,701
24
25
26
27
28
29
30
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
8,020
1,890
7
224
5,486
94
20
6,201
1,090
3
68
4,635
177
25
7,932
758
8
192
6,384
321
40
6,289
652
19
137
5,106
176
32
7,932
758
8
192
6,384
321
40
7,070
415
12
191
5,912
318
34
7,260
523
12
181
6,018
343
32
6,523
1,099
65
135
4,792
222
26
8,505
618r
40
4%
6,719"
270
29
31
32
33
Asia
Japan
Middle East oil-exporting countries 2
590
213
8
860
523
8
957
385
5
614
277
3
957
385
5
%1
380
3
1,275
712
4
995
481
4
839
683
3
34
35
Africa
Oil-exporting countries
140
12
37
0
57
1
61
1
57
1
60
0
57
0
66
1
79
9
36
All other 4
180
195
292
280
292
282
291
278
452
6,209
242
964
6%
479
313
1,575
7,044
212
1,240
807
555
301
1,775
7,950
192
1,544
943
643
295
2,088
6,884
190
1,330
858
641
258
1,807
7,950
192
1,544
943
643
295
2,088
7,894
181
1,562
936
646
328
2,086
8,138
255
1,563
908
666
399
2,173
7,792
170
1,741
885
588
294
1,977
7,451r
183
1,394
883
541
260
l,802 r
37
38
39
40
41
42
43
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
44
Canada
1,091
1,074
1,174
1,232
1,174
1,176
1,131
1,172
l,252 r
45
46
47
48
49
50
51
Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela
2,184
58
323
297
36
508
147
2,375
14
246
326
40
661
192
2,591
11
263
418
41
829
202
2,494
8
255
385
37
741
1%
2,591
11
263
418
41
829
202
2,572
11
272
364
45
892
206
2,672
9
291
438
32
847
251
3,141
7
245
395
43
968
302
2,845r
18
237
336
39
853r
317r
5?
53
54
Asia
Japan
Middle Eastern oil-exporting countries 2
3,570
1,199
518
4,127
1,460
460
4,573
1,878
621
4,282
1,808
4%
4,573
1,878
621
4,354
1,782
635
4,463
1,786
609
4,308
1,793
512
4,649"
1,850"
669"
55
56
Africa
Oil-exporting countries
429
108
488
67
418
95
431
80
418
95
418
75
422
73
430
66
540"
78r
57
Other 4
393
367
498
456
498
457
431
449
45 l r
1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), 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.
Securities Holdings and Transactions
3.24
A65
FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1991
1993
1992
1993
Transaction and area or country
1992
Jan.Apr.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar. r
Apr.P
U.S. corporate securities
STOCKS
211,207
200,116
221,350
226,490
99,942
95,213
18,820
18,170
17,885
16,598
22,725
20,382
19,170
19,353
28,753r
25,980
27,011
24,548
25,008
25,332
11,091
-5,140
4,729
650
1,287
2,343
-183
2,773r
2,463
-324
10,522
-5,173
4,479
653
1,284
2,319
-178
2,683r
2,306
-332
53
9
-63
-227
-131
-352
3,845
2,177
-134
4,255
1,179
153
174
-4,934
-1,331
-64
-280
143
-3,294
1,405
2,209
-88
-3,944
-3,598
10
169
2,647
-139
435
153
1,339
124
-5
721
-163
1,234
-877
-15
60
75
-92
-52
-24
-124
362
-227
235
-57
767
184
-21
-119
371
-50
47
-4
-40
361
43
649
-219
373
220
-18
85
1,505
-154
162
190
221
705
176
422
70
122
215
-7
31
52
-25
91
64
205
-350
-341
305
-92
-123
28
4
17
2,271r
223
97
-11
501
l,135 r
57
-235
-65
593
-624
27
35
973
-183
103
68
356
476
176
410
-13
763
250
2
-5
-649
-154
144
32
277
-1,137
103
241
7
1
-531
-48
13
568
33
250
-3
3
24
-5
90
157
8
153,096
125,637
214,801
175,310
85,229
73,568
19,315
15,224
18,082
16,317
19,264
15,513
17,417
15,439
21,754
18,676r
25,204
23,273
20,854
16,180
27,459
39,491
11,661
4,091
1,765
3,751
1,978
3,078r
1,931
4,674
22 Foreign countries
27,590
38,375
12,060
4,045
1,600
3,206
2,074
3,204r
2,067
4,715
23
24
25
26
27
28
29
30
31
32
33
34
35
13,112
847
1,577
482
656
8,931
1,623
2,672
1,787
8,459
5,767
52
-116
18,314
1,221
2,503
531
-513
13,229
236
8,833
3,166
7,545
-450
354
-73
4,808
995
897
-322
-144
3,144
118
2,023
1,274
3,716
1,801
185
-64
1,993
-4
-34
133
-23
1,568
198
842
273
790
467
-50
-1
-492
-7
-113
144
-260
-312
281
540
515
692
266
-4
68
1,9%
217
857
48
105
%2
-38
513
360
119
9
302
-46
1,302
101
91
-119
122
349
-437
419
300
305
190
168
17
2,183r
311
52
-133
-38
2,416r
145
482
248
149
61
27
-30
29
75
-57
-178
11
-229
119
490
263
1,216
595
-10
-40
1,294
508
811
108
-239
608
291
632
463
2,046
955
0
-11
-131
1,116
-399
46
165
545
-96
-126
-136
-41
-4,524
17,441
21,965
-4,647
70,021
74,668
-3,%9
19,284
23,253
-966
55,176
56,142
1 Foreign purchases
2 Foreign sales
3 Net purchases or sales ( - )
—
4 Foreign countries
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean ,
Middle East'
Other Asia
Japan
Africa
Other countries
Nonmonetary international and
regional organizations —
BONDS
2
19 Foreign purchases
20 Foreign sales
21 Net purchases or sales ( - )
—
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
— l,566 r
15,047r
16,613r
-9,562 r
55,717
65,279*
37 Stocks, net purchases or sales ( - )
38 Forejgn purchases
39 Foreign sales
40 Bonds, net purchases or sales ( - )
41 Foreign purchases
42 Foreign sales
-31,967
120,598
152,565
-14,828
330,311
345,139
-32,186
149,987
182,173
-18,470
485,659
504,129
-12,3%
64,498
76,894
-20,275
219,325
239,600
-4,260
12,477
16,737
-2,205
49,670
51,875
-3,636
11,672
15,308
-791
52,066
52,857
-4,368
12,781
17,149
-2,874
39,607
42,481
-2,337
12,726
15,063
-5,100
38,411
43,511
43 Net purchases or sales ( - ) , of stocks and bonds
-46,795
-50,656
-32,671
-6,465
-4,427
-7,242
-7,437
—ll,128 r
-9,171
-4,935
44 Foreign countries
-46,711
-53,992
-31,805
-6,492
-4,500
-7,196
-6,430
-8,902
—11,266"
-5,207
45
46
47
48
49
50
-34,452
-7,004
759
-7,350
-9
1,345
-38,109
-6,653
-1,830
-6,583
-57
-760
-19,153
-9,039
-648
-2,807
-40
-118
-6,851
-1,008
1,091
681
-2
-403
-5,001
571
-1,671
1,567
42
-8
-4,516
-1,167
512
-1,670
-11
-344
-6,478
-161
195
-381
-7
402
-6,703 r
-5,028
25r
544r
3
-107
-3,095
-3,034
68
-2,459
-18
-364
-2,877
-816
-936
-511
-18
-49
-84
3,336
-866
27
73
-46
-1,007
138
-269
272
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 securities sold abroad by U.S. corporations organized to finance direct investments
abroad.
3. In a July 1989 merger, the former stockholders of a U.S. company received
$5,453 million in shares of the new combined U.K. company. This transaction is
not reflected in the data.
A66
International Statistics • August 1993
3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES
Millions of dollars
Foreign Transactions
1993
Country or area
1991
1993
1992
1992
Jan.Apr.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr."
Transactions, net purchases or sales ( - ) during period 1
1 Estimated total
19,865
39,319
9,529
3,546
17,648
8
454
-1,273
5,910 r
4,438
2 Foreign countries
19,687
37,966
7,645
4,351
17,661
-194
-129
-2,166
5,358 r
4,582
3 Europe
4
Belgium and Luxembourg
5
Germany
6
Netherlands
7
Sweden
R Switzerland
9
United Kingdom
10
Other Western Europe
11
Eastern Europe
12 Canada
8,663
523
-4,725
-3,735
-663
1,007
6,218
10,024
13
-3,019
19,647
1,985
2,076
-2,923
-804
481
24,184
-6,002
650
562
-3,340
263
-5,074
-235
-436
-2,944
5,563
-845
368
7,260
4,671
232
-8
-40
202
769
4,068
-551
-1
458
7,284
370
-1,584
1,827
668
1,334
7,209
-2,758
218
-1,087
3,163
-28
898
-804
-344
213
2,833
395
0
-99
-585
-59
697
-1,238
-54
-199
2,025
-1,759
2
3,302
-382
45
-1,632
206
258
-455
183
975
38
82
-4,045r
622 r
-2,757
66 r
-540
-1,569
672
-728r
189
2,490
1,672
-345
-1,382
731
-100
-721
2,683
667
139
1,386
13 Latin America and Caribbean
14
Venezuela
IS
Other Latin America and Caribbean
16
Netherlands Antilles
17
18
Japan
19
20
10,285
10
4,179
6,097
3,367
-4,081
689
-298
-3,223
539
-1,957
-1,805
23,526
9,817
1,103
-3,649
-3,602
232
-4,335
501
8,890
6,866
-171
-1,392
-1,915
155
-3,233
1,163
1,416
-339
-37
-242
7,270
27
2,385
4,858
4,000
3,383
119
75
-4,519
11
415
-4,945
1,188
2,201
0
73
-1,495
-175
-3,309
1,989
-1,136
-743
-33
-182
445
179
-1,656
1,922
-1,032
804
-139
-1,140
-537r
154
-471
-220r
7,215
3,457
-66
301r
-2,015
74
1,101
-3,190
3,843
3,348
67
-371
178
-358
-72
1,353
1,018
533
1,884
654
522
-805
-903
219
-13
-38
-31
202
76
97
583
228
270
893
581
235
552
56
1
-144
-211
16
19,687
1,190
18,4%
37,966
6,876
31,090
7,645
-5,398
13,043
4,351
2,951
1,400
17,661
-603
18,264
-194
-719
525
-129
-2,%5
2,836
-2,166
-4,364
2,198
5,358 r
-657r
6,015 r
4,582
2,588
1,994
-6,822
239
4,323
11
-1,182
2
-271
0
407
0
511
0
-238
8
-1,855
0
811
0
100
-6
21 Nonmonetary international and regional organizations
International
77
Latin American regional
23
MEMO
74 Foreign countries
75
Official institutions
26
Other foreign
Oil-exporting
countries
2
77 Middle E a s t
28
1. Official and private transactions in marketable U.S. Treasury securities
having an original maturity of more than one year. Data are based on monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and notes
held by official institutions of foreign countries.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States),
3. Comprises Algeria, Gabon, Libya, and Nigeria,
Interest and Exchange Rates
3.26
A67
DISCOUNT RATES OF FOREIGN CENTRAL BANKS 1
Percent per year
Country
Country
Country
Percent
6.75
6.25
4.79
8.25
7.0
Apr.
May
June
May
June
1993
1993
1993
1993
1993
Germany...
Italy
Japan
Netherlands
1. Rates shown are mainly those at which the central bank either discounts or
makes advances against eligible commercial paper or government securities for
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
that the central bank transacts the largest proportion of its credit operations.
3.27
Apr. 1993
June 1993
July 1992
May 1993
Percent
United Kingdom
Month
effective
7.75
5.0
12.0
Month
effective
7.25
10.0
2.5
6.25
Month
effective
Austria..
Belgium .
Canada..
Denmark
France 2 ..
Rate on May 28, 1993
Rate on May 28, 1993
Rate on May 28, 1993
Apr. 1993
Mar. 1993
Sept. 1992
2. Since Feb. 1981, the rate has been that at which the Bank of France
discounts Treasury bills for seven to ten days.
FOREIGN SHORT-TERM INTEREST RATES 1
Averages of daily figures, percent per year
1993
1992
Type or country
1990
1991
1992
Dec.
1
2
3
4
5
6
7
8
9
10
Eurodollars
United Kingdom.
Canada
Germany
Switzerland
Netherlands
France
Italy
Belgium
Japan
8.16
14.73
13.00
8.41
8.71
8.57
10.20
12.11
9.70
7.75
5.86
11.47
9.07
9.15
8.01
9.19
9.49
12.04
9.30
7.33
3.70
9.56
6.76
9.42
7.67
9.25
10.14
13.91
9.31
4.39
1. Rates are for three-month interbank loans, with the following exceptions:
Canada, finance company paper; Belgium, three-month Treasury bills; and Japan,
CD rate.
Jan.
Feb.
Mar.
Apr.
May
June
3.50
7.11
7.93
8.93
6.13
8.55
10.75
13.60
8.65
3.76
3.22
6.88
7.03
8.50
5.52
8.00
11.69
12.56
8.19
3.70
3.12
6.10
6.38
8.29
5.34
7.98
11.70
11.43
8.75
3.27
3.11
5.91
5.59
7.85
5.05
7.47
10.89
3.10
5.90
5.43
7.81
4.97
7.43
8.73
11.41
7.94
3.22
3.12
5.91
5.29
7.41
4.97
6.98
7.48
10.74
7.16
3.24r
3.21
5.83
4.91
7.51
4.99
6.64
7.19
10.18
6.87
3.23
11.26
8.27
3.26
A68
3.28
International Statistics • August 1993
FOREIGN EXCHANGE RATES 1
Currency units per dollar except as noted
1993
Country/currency unit
1992
1990
Jan.
1
2
3
4
5
6
7
8
9
10
Australia/dollar 2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark.
Greece/drachma
11
12
13
14
15
16
17
18
19
20
Hong Kong/dollar
India/rupee
Ireland/pound
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder
N e w Zealand/dollar 2
Norway/krone
Portugal/escudo
21
22
23
24
25
26
27
28
29
30
Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound 2
June
77.872
11.686
34.195
1.1460
5.3337
6.4038
4.0521
5.6468
1.6610
182.63
73.521
10.992
32.148
1.2085
5.5206
6.0372
4.4865
5.2935
1.5618
190.81
67.297
11.368
33.239
1.2779
5.77%
6.2319
5.4242
5.4751
1.6144
215.97
68.294
11.556
33.841
1.2602
5.7874
6.3019
5.8534
5.5594
1.6414
220.60
70.775
11.586
33.919
1.2471
5.7455
6.3242
5.9767
5.5944
1.6466
223.57
71.155
11.234
32.857
1.2621
5.7202
6.1339
5.6190
5.3984
1.5964
217.90
69.859
11.305
33.044
1.2698
5.7392
6.1751
5.4847
5.4180
1.6071
218.12
67.492
11.637
34.009
1.2789
5.7504
6.3380
5.5674
5.5700
1.6547
225.45
7.7899
17.492
165.76
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70
7.7712
22.712
161.39
1,241.28
134.59
2.7503
1.8720
57.832
6.4912
144.77
7.7402
28.156
170.42
1,232.17
126.78
2.5463
1.7587
53.792
6.2142
135.07
7.7376
29.043
163.37
1,491.07
124.99
2.5985
1.8155
51.270
6.8721
145.36
7.7335
30.042
148.11
1,550.43
120.76
2.6295
1.8473
51.603
6.9779
149.89
7.7332
31.939
147.58
1,591.35
117.02
2.6051
1.8507
53.026
6.9989
152.17
7.7306
31.610
152.75
1,536.14
112.41
2.5777
1.7942
53.904
6.7399
148.25
7.7290
31.613
151.65
1,475.66
110.34
2.5661
1.8026
54.290
6.8027
151.89
7.7362
31.668
147.47
1,505.05
107.41
2.56%
1.8559
53.949
6.9986
157.63
1.8134
2.5885
710.64
101.96
40.078
5.9231
1.3901
26.918
25.609
178.41
1.7283
2.7633
736.73
104.01
41.200
6.0521
1.4356
26.759
25.528
176.74
1.6294
2.8524
784.58
102.38
44.013
5.8258
1.4064
25.160
25.411
176.63
1.6527
3.0713
794.87
114.62
46.307
7.2536
1.4774
25.452
25.523
153.25
1.6463
3.1313
799.25
117.51
46.351
7.5566
1.5178
25.837
25.508
143.95
1.6446
3.1790
7%.42
117.71
47.069
7.7362
1.5206
26.026
25.425
146.17
1.6228
3.1718
798.61
115.64
47.712
7.4500
1.4599
25.987
25.251
154.47
1.6136
3.1787
803.19
121.30
47. % 5
7.3271
1.4504
25.978
25.234
154.77
1.6175
3.2408
805.91
127.11
48.073
7.4541
1.4769
26.267
25.214
150.82
86.61
92.36
89.09
89.84
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) monthly statistical release.
For ordering address, see inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the
currencies of ten industrial countries. The weight for each of the ten countries is
May
78.069
11.331
33.424
1.1668
4.7921
6.1899
3.8300
5.4467
1.6166
158.59
MEMO
31 United States/dollar 3
Apr.
Feb.
93.65
90.62
90.24
91.81
the 1972-76 average world trade of that country divided by the average world
trade of all ten countries combined. Series revised as of August 1978 (see Federal
Reserve Bulletin, vol. 64, August 1978, p. 700).
A69
Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List
Published Semiannually, with Latest B U L L E T I N Reference
Issue
June 1993
Anticipated schedule of release dates for periodic releases
SPECIAL
TABLES—Quarterly Data Published Irregularly, with Latest
BULLETIN
Page
A78
Reference
Title and Date
Issue
Page
Assets and liabilities of commercial banks
June 30, 1992
September 30, 1992
December 31, 1992
March 31, 1993
November
February
May
August
1992
1993
1993
1993
A70
A70
A70
A70
Terms of lending at commercial banks
August 1992
November 1992
February 1993
May 1993
November
February
May
August
1992
1993
1993
1993
A76
A76
A76
A76
Assets and liabilities of U.S. branches and agencies of foreign banks
June 30, 1992
September 30, 1992
December 31, 1992
March 31, 1993
November
February
May
August
1992
1993
1993
1993
A80
A80
A80
A80
Pro forma balance sheet and income statements for priced service operations
June 30, 1991
September 30, 1991
March 30, 1992
June 30, 1992
November
January
August
October
1991
1992
1992
1992
A80
A70
A80
A70
Assets and liabilities of life insurance companies
June 30, 1991
September 30, 1991
December 31, 1991
September 30, 1992
December
May
August
March
1991
1992
1992
1993
A79
A81
A83
A71
A70
4.20
Special Tables • August 1993
DOMESTIC A N D FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities1
Consolidated Report of Condition, March 31, 1993
Millions of dollars except as noted
Banks with foreign offices 2
Item
Banks with domestic
offices only
Total
Total
1 Total assets 4
2 Cash and balances due from depository institutions
3
Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
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
Balances due from Federal Reserve Banks
8
MEMO
9 Non-interest-bearing balances due from commercial banks in the United States
(included in balances due from depository institutions in the United States)
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
Securities issued by states and political subdivisions in the United States
17
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
Investments in mutual funds
74
75
Other
76
LESS: Net unrealized loss
27
Other equity securities
28
29
30
31
32
33
34
35
36
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)
LESS: Allowance for loan and lease losses
LESS: Allocated transfer risk reserves
E Q U A L S : Total loans and leases, net
Total loans, gross, by category
37 Loans secured by real estate
38
Construction and land development
39
Farmland
40
One- to four-family residential properties
Revolving, open-end loans, extended under lines of credit
41
42
43
Multifamily (five or more) residential properties
44
Nonfarm nonresidential properties
45 Loans to depository institutions
Commercial banks in the United States
46
47
Other depository institutions in the United States
48
Banks in foreign countries
Foreign
Domestic
Over 100
Under 100
3,487,345
1,919,690
451,335
1,551,862
1,224,384
343,271
264,870
182,001
71,403
n.a.
n.a.
27,498
63,113
19,987
80,623
1,646
n.a.
n.a.
18,691
60,005
281
101,378
69,757
53,555
16,202
8,807
3,109
19,706
64,178
33,643
21,571
12,072
16,465
2,562
11,510
18,691
4
[
I
n.a.
I
•
n.a.
n.a.
n.a.
2,897,073
1,486,638
n.a.
5,887
n.a.
4
T
I
n.a.
1
T
12,807
7,468
1,099,352
311,083
793,593
328,999
29,990
299,009
345,821
118,774
627,992
n.a.
n.a.
251,151
95,379
155,772
5,351
2,802
2,549
245,800
92,577
153,223
280,747
118,415
162,333
%,093
n.a.
n.a.
165,291
n.a.
71,194
n.a.
81,086
74,686
19,723
27,806
2,202
348
559
219
78,885
74,338
19,164
27,587
65,195
97,138
35,550
23,990
19,010
n.a.
15,921
n.a.
5,018
52,118
n.a.
12,8%
5,620
3,717
1,950
47
7,275
2,642
25,164
24,0%
6,222
1,882
1,133
751
1
4,339
0
219
22,817
1,043
188
22
165
0
855
2,642
24,945
1,279
5,179
1,695
1,111
585
1
3,484
2,245
21,745
281
5,253
2,765
1,699
1,088
22
2,488
130
5,208
n.a.
1,421
973
885
112
23
448
149,323
126,086
23,237
2,016,369
7,848
2,008,521
54,008
356
1,954,157
76,183
56,717
19,466
1,119,284
2,826
1,116,458
34,647
356
1,081,456
2%
n.a.
n.a.
205,167
925
204,242
n.a.
n.a.
n.a.
75,887
n.a.
n.a.
914,117
1,901
912,217
n.a.
n.a.
n.a.
54,466
50,855
3,612
719,070
3,809
715,261
16,197
0
699,064
18,673
18,514
159
178,015
1,213
176,802
3,165
0
173,637
860,184
391,184
22.802
370,567
26,933
7,561
200,762
30,903
169,859
12,892
122,418
7,184
6,653
221
310
98,434
5,625
10,393
53,858
2,820
51,038
2,119
26,439
159
n.a.
n.a.
n.a.
36,390
n.a.
n.a.
n.a.
T
29,048
10,564
560
17,924
16,188
540
55
15,593
368,382
40,901
1,995
204,946
39,793
165,153
12,308
108,231
12,860
10,024
505
2,331
33,038
530,702
n.a.
n.a.
1,969
n.a.
n.a.
4,977
372,519
297,372
75,147
1,310
358
952
233
93,191
20,813
72,377
800
2
797
4,745
279,328
276,559
2,769
510
356
155
10,748
128,223
127,779
444
478
n.a.
n.a.
17,313
29,960
n.a.
n.a.
180
n.a.
n.a.
379,086
130,780
248,306
173,003
68,108
104,895
20,716
n.a.
n.a.
152,287
n.a.
n.a.
176,833
61,171
115,662
29,250
1,500
27,749
59 Obligations (other than securities) of states and political subdivisions in the United
States (includes nonrated industrial development obligations)
60
Taxable
61
62
63
Loans to foreign governments and official institutions
64
65
Loans for purchasing and carrying securities
66
All other loans
23,725
1,483
22,242
116,706
n.a.
n.a.
n.a.
n.a.
12,618
948
11,670
106,667
24,757
81,910
n.a.
n.a.
216
91
124
47,487
23,492
23,995
n.a.
n.a.
12,402
857
11,546
59,180
1,265
57,915
15,964
41,951
9,959
495
9,464
8,908
83
8,825
1,817
7,008
1,149
40
1,108
1,131
n.a.
n.a.
n.a.
n.a.
67
68
69
70
71
72
73
74
75
34,569
93,678
53,443
25,523
3,463
14,536
n.a.
16,114
118,646
27,959
92,044
28,743
16,059
2,961
14,171
n.a.
9,300
87,774
3,536
57,112
i
24,423
34,782
n.a.
n.a.
n.a.
n.a.
51,858
n.a.
n.a.
6,171
1,466
19,049
7,770
455
350
n.a.
6,392
25,371
440
168
5,651
1,694
47
15
n.a.
422
5,502
49 Loans to finance agricultural production and other loans to farmers
50 Commercial and industrial loans
51
U.S. addressees (domicile)
52
Non-U.S. addressees (domicile)
53
54
U.S. banks
55
56 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
4
T
1
4
T
n.a.
I
n.a.
1
1
1
1
•
4
T
I
n.a.
I
I
•
T
1
n.a.
1
1
y
Commercial Banks
A71
4.20—Continued
Banks with foreign offices 2
Item
Banks with doniestic
offices only
Total
Foreign
Total
Over 100
1,224,384
76 Total liabilities, limited-life preferred stock and equity capital
3,487,345
1,919,690
77 Total liabilities 5
78
Limited-life preferred stock
3,215,795
1,784,009
451,326
n.a.
n.a.
1,323,315
304,354
191^662
1,018,960
946,857
2,891
30,885
18,915
3,423
6,032
991
8,967
n.a.
1,006,453
939,222
1,823
45,997
8,369
4,461
132
57
6,392
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
361,745
311,141
2,429
12,860
17,431
2,526
5,628
762
8,967
n.a.
297,507
266,034
1,475
16,219
6,027
1.230
119
11
6,392
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
H9
Other banks in foreign countries
120
Foreign governments and official institutions
121
All other
255,517
209,872
2,207
8,130
17,431
2,526
5,624
761
8,967
n.a.
657,215
635,715
462
18,025
1,484
130
1,354
897
404
12
392
229
162,999
141,985
1,384
5,897
6,002
1,209
119
11
6,392
n.a.
708,946
673,188
348
29,778
2,342
107
2,235
3.231
13
8
4
47
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
122
123
124
125
126
127
128
129
130
131
Federal funds purchased and securities sold under agreements to r e p u r c h a s e —
Federal Rinds 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 capital 7
132
133
134
135
136
137
0
4
2,633,309
1 1
n.a.
18,049
22,607
9,779
21,616
812
90,265
1,416,190
198,386
128,646
69,740
n.a.
118,163
14,265
32,235
n.a.
86,455
135,681
448
n.a.
n.a.
n.a.
48,605
3,275
n.a.
n.a.
n.a.
n.a.
197,938
n.a.
n.a.
11,191
69,558
10,990
n.a.
31,649
n.a.
n.a.
67,448
35,904
31,544
3,027
25,130
350
1,954
n.a.
17,110
102,910
295
1,326
63,362
27,270
18,913
998
1,504
67,976
15,875
13,616
2,948
17,915
234,160
124,190
198,977
85,394
14,495
105,259
763,444
10,668
177,952
134,349
307
86,396
3,004
132,019
843,454
892,030
704,044
MEMO
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, automated transfer service
(ATS) accounts, and telephone ared preauthorized transfer accounts)
Nontransaction accounts in domestic offices
148
Money market deposit accounts
149
Other savings deposits
150
Time certificates of deposit of $100,000 or more
151
All other time deposits
152 Number of banks
Footnotes appear at the end of table 4.22
1
1,622
268,454
165,530
102,924
n.a.
144,383
14,630
34,228
n.a.
106,258
271,547
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
Money market deposit accounts (savings deposits; 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 negotiable order of withdrawal (NOW) accounts (including Super N O W s ) . . .
Total time and savings deposits
138
139
140
141
142
143
144
1,121,473
13,106
208
132,508
236,832
122,063
88,227
224,676
11,283
9,802
106,459
176,889
131,029
85,326
311,653
2,915
Under 100
A72
4.21
Special Tables • August 1993
DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or more or with foreign offices 1
Consolidated Report of Condition, March 31, 1993
Millions of dollars except as noted
Members
Total
Total
1 Total assets 4
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
6
Balances due from banks in foreign countries and foreign central banks
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 holdings 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 8
26
Federal fiinds 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
One- to four-family residential properties
Revolving, open-end and extended under lines of credit
All other loans
Multifamily (five or more) residential properties
Nonfarm nonresidential properties
Commercial banks in the United States
Other depository institutions in the United States
Banks in foreign countries
Finance agricultural production and other loans to farmers
43 Commercial and industrial loans
44
U.S. addressees (domicile)
45
Non-U.S. addressees (domicile)
46 Acceptances of other banks 9
47
U . S . banks
48
Foreign banks
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 t o foreign governments and official institutions
53 Obligations (other than securities) of states and political subdivisions in the United States
(includes nonrated industrial development obligations)
54
Taxable
55
Tax-exempt
56 Other loans
57
Loans for purchasing and carrying securities
58
All other loans
59
60
61
62
Lease financing receivables
Customers' liability on acceptances outstanding
Net due from own foreign offices, Edge and agreement subsidiaries, and IBFs
Remaining assets
National
State
2,776,246
2,159,025
1,672,096
486,929
165,557
75,126
28,274
25,271
5,670
31,216
135,855
66,561
23,017
15,950
4,215
26,112
105,468
53,152
18,606
12,656
3,516
17,538
30,387
13,409
4,412
3,293
699
8,574
2,402,661
1,843,985
1,449,043
394,942
644,830
210,992
315,555
489,387
156,863
245,992
367,787
121,601
121,012
184,468
35,851
61,524
144,080
171,476
54,713
51,578
4,887
46,690
1,560
10,432
4,459
1,673
23
5,972
117,150
128,843
38,279
39,911
4,136
35,775
1,050
7,292
2,117
1,408
718
10
5,175
88,158
96,310
26,992
28,255
3,519
24,736
979
6,081
1,887
1,319
576
8
4,194
28,991
32,533
11,287
11,656
618
11,039
72
1,211
230
89
143
2
981
130,353
50,855
3,612
1,633,187
5,710
1,627,477
106,187
33,825
2,410
1,252,209
3,798
1,248,411
82,096
29,225
1,529
1,001,806
2,646
999,160
24,090
4,600
881
250,403
1,152
249,251
738,948
67,834
9,557
405,708
70,696
335,012
25,200
230,649
16,676
726
2,641
15,492
548,009
51,580
5,635
307,536
53,983
253,553
17,823
165,435
534
2,301
10,584
444,699
42,206
4,759
250,551
44,007
206,544
14,135
133,048
9,877
467
1,215
9,226
103,310
9,374
876
56,986
9,976
47,010
3,688
32,386
2,408
66
1,086
1,358
407,551
404,338
3,213
328,666
325,821
2,845
259,999
257,658
2,340
68,667
68,163
504
989
476
390
744
310
381
605
188
371
139
121
10
329,120
61,171
115,662
1,348
242,605
42,292
70,412
1,319
199,175
38,737
56,259
807
43,430
3,555
14,153
512
22,361
1,352
21,009
66,740
17,781
48,958
18,102
1,095
17,007
61,538
16,213
45,325
13,073
730
12,343
42,095
8,492
33,603
5,029
364
4,664
19,443
7,721
11,722
30,594
25,523
10,526
46,514
168,659
20,568
7,720
23,962
109,866
4,955
2,806
22,553
58,794
2,810
11,202
51,858
196,827
12,286
Commercial Banks
4.21—Continued
Members
Item
Total
National
State
63 Total liabilities and equity capital
2,776,246
2,159,025
1,672,096
486,929
64 Total liabilities 5
2,537,663
1,974,948
1,530,078
444,870
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
2,025,413
1,886,079
4,714
76,882
27,284
7,884
6,164
1,048
15,359
1,551,428
1,443,113
3,970
56,264
24,269
5,100
5,682
959
12,072
1,236,043
1,151,673
3,295
45,157
19,304
4,128
3,203
535
8,748
315,384
291,440
675
11,106
4,965
972
2,479
424
3,323
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
659,252
577,176
3,904
29,079
23,458
3,756
5,747
773
15,359
523,297
454,325
3,235
22,483
22,062
3,001
5,400
720
12,072
414,264
361,144
2,769
18,001
17,822
2,348
3,065
367
8,748
109,033
93,181
465
4,483
4,240
653
2,334
353
3,323
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
Commercisd 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
418,516
351,857
3,591
14,027
23,433
3,735
5,743
771
15,359
339,645
281,729
2,936
11,748
22,056
2,986
5,399
719
12,072
264,158
219,883
2,484
9,462
17,816
2,333
3,065
366
8,748
75,487
61,846
452
2,286
4,240
653
2,334
353
3,323
1,366,161
1,308,903
810
47,802
3,826
237
3,589
4,128
417
20
396
276
1,028,131
988,788
735
33,780
2,206
115
2,091
2,099
282
13
269
239
821,779
790,529
526
27,157
1,482
110
1,372
1,780
137
13
125
168
206,351
198,259
209
6,624
724
5
719
319
144
265,386
35,904
31,544
14,218
94,688
11,340
1,954
31,649
124,664
227,092
27,134
20,348
12,752
67,695
10,665
1,462
22,003
103,855
156,178
21,886
17,577
8,943
46,564
7,826
1,145
19,403
73,377
70,913
5,248
2,770
3,808
21,131
2,839
317
2,600
30,478
238,583
184,078
142,019
42,059
581
525
81,854
25,167
19,227
2,271
56
19,434
5,632
3,920
220
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 1 0
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 capital 7
1
144
72
MEMO
114
115
116
117
118
119
Holdings of commercial paper included in total loans, gross
Total individual retirement (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
Money market deposit accounts (savings deposits; 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 negotiable order of withdrawal (NOW) accounts (including Super NOWs)
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, automated transfer service (ATS) accounts, and
telephone preauthorized transfer accounts)
130
131
132
133
Nontransaction accounts
Money market deposit accounts
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
2,831
131,337
43,145
32,529
3,946
101,288
30,799
23,147
2,491
28,583
20,657
16,956
3,701
412,112
258,539
506,221
171,790
17,499
237,278
1,606,898
325,413
193,975
373,437
121,749
13,557
181,581
1,211,783
260,030
143,806
307,615
102,014
8,314
148,365
971,886
65,382
50,169
65,822
19,735
5,243
33,216
239,897
1,596,074
22,909
1,221,287
18,668
980,347
13,500
240,940
5,168
238,967
182,287
148,907
33,380
413,720
253,092
173,553
536,329
326,918
189,389
123,762
398,116
260,122
140,248
103,908
323,011
66,796
49,141
19,854
75,105
3,123
1,669
1,370
299
A73
A74
Special Tables • August 1993
4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1
Consolidated Report of Condition, March 31, 1993
Millions of dollars except as noted
Members
Item
Nonmembers
Total
Total
National
State
3,119,517
2,289,150
1,772,493
516,658
830,367
184,247
31,469
26,162
126,617
143,151
24,250
14,833
104,068
111,145
19,570
11,427
80,148
32,005
4,680
3,406
23,919
41,097
7,219
11,328
22,549
2,716,909
1,962,803
1,540,588
422,214
754,106
763,604
622,640
70,634
58,476
5,018
53,459
11,853
5,433
3,694
1,785
47
6,420
149,027
69,369
3,771
1,811,202
6,923
1,804,279
535,158
440,475
43,831
42,903
4,197
38,706
7,949
2,494
1,769
743
18
5,455
113,580
41,163
2,466
1,318,351
4,287
1,314,064
404,190
335,599
31,249
30,732
3,564
27,167
6,610
2,206
1,624
598
16
4,405
87,713
34,797
1,574
1,051,706
3,021
1,048,685
130,968
104,876
12,582
12,171
632
11,539
1,339
288
146
145
2
1,050
25,867
6,365
893
266,646
1,266
265,379
228,445
182,165
26,803
15,573
821
14,752
3,904
2,938
1,925
1,042
28
965
35,446
28,206
1,304
492,851
2,636
490,215
837,382
73,459
19,950
459,566
73,516
386,050
27,320
257,088
584,320
53,763
8,836
327,672
55,165
272,507
18,625
175,423
471,949
43,814
7,288
265,535
44,817
220,718
14,744
140,569
112,371
9,949
1,548
62,138
10,348
51,790
3,881
34,854
253,062
19,696
11,113
131,894
18,352
113,542
8,694
81,665
20,202
32,806
437,511
1,169
15,195
16,375
340,541
799
11,602
13,797
268,770
651
3,593
2,578
71,771
148
5,008
16,431
96,970
370
358,370
62,672
143,411
23,510
1,392
22,118
69,219
31,033
11,216
51,858
207,145
253,671
42,905
80,864
18,490
1,109
17,382
63,294
25,666
10,536
46,514
172,660
207,663
39,239
64,245
13,381
740
12,641
43,206
20,686
7,727
23,962
113,032
46,008
3,667
16,619
5,109
369
4,740
20,087
4,980
2,810
22,553
59,628
104,699
19,766
62,547
5,019
283
4,736
5,925
5,367
680
5,344
34,484
48 Total liabilities and equity capital
3,119,517
2,289,150
1,772,493
516,658
830,367
49 Total liabilities 5
2,847,976
2,092,758
1,620,961
471,798
755,218
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
Mother
2,328,955
2,164,877
5,147
96,848
28,446
9,144
17,238
7,256
1,666,528
1,549,246
4,141
63,208
24,939
5,490
12,849
6,655
1,324,950
1,233,781
3,436
50,735
19,512
4,401
9,342
3,744
341,577
315,465
706
12,472
5,427
1,088
3,507
2,912
662,427
615,631
1,006
33,640
3,507
3,654
4,389
601
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
747,410
655,105
4,222
36,384
23,995
3,919
17,238
6,547
557,917
484,944
3,352
25,016
22,552
3,073
12,849
6,132
441,251
385,189
2,865
20,108
17,900
2,408
9,342
3,438
116,666
99,754
487
4,908
4,652
665
3,507
2,693
189,493
170,161
871
11,368
1,444
846
4,389
415
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
Mother
459,495
388,199
3,889
15,770
23,965
3,893
17,238
6,541
356,317
2%, 356
3,051
12,332
22,541
3,057
12,849
6,130
276,827
231,235
2,577
9,953
17,890
2,392
9,342
3,437
79,490
65,121
473
2,379
4,652
665
3,507
2,693
103,179
91,843
839
3,438
1,424
835
4,389
411
1,581,545
1,509,772
924
60,463
4,451
5,225
710
1,108,611
1,064,302
789
38,191
2,388
2,416
524
883,700
848,591
571
30,627
1,612
1,993
305
224,911
215,711
219
7,564
775
424
219
472,934
445,470
135
22,272
2,063
2,808
186
1 Total assets 4
2 Cash and balances due from depository institutions
3
Currency and coin
4
Non-interest-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 Umted 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
Federal funds sold and securities purchased under agreements to resell 8
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
One- to four-family residential properties
29
Revolving, open-end loans, and extended under lines of credit
30
All other loans
31
Multifamily (five 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
M other
Commercial Banks
A75
4.22—Continued
Members
Item
Nonmembers
Total
Total
81
82
83
84
85
86
87
88
89
228,253
27,626
21,018
12,864
68,062
10,675
1,474
22,003
104,903
156,959
22,175
18,069
9,031
46,820
7,833
1,151
19,403
74,216
71,295
5,451
2,949
3,832
21,241
2,842
323
2,600
30,687
39,752
9,258
12,167
1,669
27,716
680
520
9,646
22,454
271,541
196,392
151,532
44,860
75,149
36,415
18,253
3,266
1,130
1,287
1,381
35
2,504
7,946
35,176
17,959
3,142
1,077
1,253
1,271
35
2,375
7,901
18,624
8,194
2,690
596
1,124
854
35
1,572
3,425
16,551
9,765
452
482
129
417
0
803
4,476
1,240
293
124
52
34
110
0
129
45
148,704
43,701
33,055
4,403
107,582
30,986
23,324
2,643
86,745
25,283
19,338
2,368
20,837
5,703
3,986
275
41,121
12,715
9,730
1,760
28,651
20,681
16,971
3,711
7,970
450,695
297,040
617,547
197,815
18,448
283,251
1,869,460
341,158
209,069
412,929
131,596
13,858
199,126
1,310,211
272,229
155,148
338,112
109,661
8,549
162,394
1,048,124
68,930
53,921
74,817
21,934
5,309
36,731
262,087
109,537
87,971
204,618
66,219
4,589
84,125
559,248
1,771,422
1,286,468
1,029,546
256,922
484,955
285,471
200,022
163,065
36,957
85,449
452,009
290,649
199,013
649,139
342,491
204,129
133,424
438,175
272,207
151,327
111,414
353,945
70,284
52,801
22,009
84,230
109,518
86,520
65,590
210,963
11,283
90 Total equity capital 7
State
268,006
36,884
33,184
14,533
95,778
11,355
1,993
31,649
127,356
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
4,473
3,523
950
6,810
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
96
Certificates of deposit
97
Commercial paper
98
Bankers acceptances
99
Other
100 Total individual retirement (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 (savings deposits; 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 negotiable order of withdrawal (NOW) accounts (including Super NOWs)
Total time and savings deposits
Quarterly
averages
112 Total loans
113 Transaction accounts (NOW accounts, automated transfer service (ATS) accounts, and
telephone and preauthorized transfer accounts)
Nontransaction accounts
114
Money market deposit accounts
115
Other savings deposits
116
Time certificates of deposit j f $100,000 or more
117
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 March 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 of more than $1
billion report additional items; (3) the domestic offices of banks with foreign
offices report far less detail; and (4) banks with assets of less than $25 million have
been excused from reporting certain detail items.
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 o r the absence of detail on a fully consolidated
basis for banks with foreign offices.
All transactions between domestic aind foreign offices of a bank are reported in
" n e t due f r o m " and " n e t due t o . " All other lines represent transactions with
parties other than the domestic and foreign offices of each bank. Because 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.
2. Foreign offices include branches in foreign countries, Puerto Rico, and U.S.
territories and possessions; subsidiaries in foreign countries; all offices of Edge
Act and Agreement corporations wherever located and IBFs.
3. The " o v e r 100" refers to banks whose assets, on June 30 of the preceding
calendar year, were $100 million or more. (These banks file the F F I E C 032 or
F F I E C 033 Call Report.) " U n d e r 100" refers to banks whose assets, on June 30
of the preceding calendar year, were less than $100 million. (These banks filed the
FFIEC 034 Call Report.)
4. Because 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) do not sum to the actual total (domestic).
5. Because 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 sum to the actual total (foreign).
6. The definition of "all o t h e r " varies by report form and therefore by column
in this table.
7. Equity capital is not allocated between the domestic and foreign offices of
banks with foreign offices.
8. Only the domestic portion of federal funds sold and securities purchased
under agreements to resell are reported here; therefore, the components do not
sum to totals.
9. "Acceptances of other b a n k s " is not reported by domestic banks having less
than $300 million in total assets; therefore the components do not sum to totals.
10. Only the domestic portion of federal fiinds purchased and securities sold
are reported here; therefore the components do not sum to totals.
11. Components are reported only for banks with total assets of $1 billion or
more; therefore the components do not sum to totals.
A76
4.23
Special Tables • August 1993
TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 3-7, 19931
A. Commercial and Industrial Loans
Amount of
loans
($1,000)
Characteristic
Average
size
($1,000)
Weighted
average
maturity 2
Days
Loan rate (percent)
Weighted
average
effective 3
Standard
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
5.5
57.3
8.9
ALL BANKS
1 Overnight 6
3.55
.20
10,247,454
6,973
2 One month and under (excluding
overnight)
3
Fixed rate
4
Floating rate
6,349,205
4,002,333
2,346,872
649
1,341
345
16
14
20
4.16
3.81
4.75
27.4
19.2
41.3
73.0
70.6
77.1
11.2
5 Over one month and under a year .
6
Fixed rate
7
Floating rate
7,876,450
2,941,957
4,934,493
136
137
136
142
97
169
5.56
5.11
5.83
57.1
55.3
58.2
77.2
72.7
80.0
13.0
11.6
13.9
8 Demand 7
9
Fixed rate
10
Floating rate
16,738,804
1.964.129
14,774,675
331
504
317
5.45
4.13
5.63
64.6
17.7
70.8
65.4
5.0
1.9
5.5
11 Total short term
41,211,913
345
50
4.80
42.7
66.8
12 Fixed rate (thousands of dollars) . .
13
1-99
14
100-499
15
500-999
16
1,000-4,999
17
5,000-9,999
18
10,000 and over
19,155,873
347,544
442,248
330,865
3,508,517
3,469,582
11,057,116
643
14
199
689
2,215
6,7%
19,123
21
176
147
62
34
14
9
3.91
8.27
64.9
27.2
52.9
81.3
76.1
65.9
62.2
7.0
4.76
4.27
3.77
3.57
17.2
79.3
68.3
42.5
23.8
14.4
11.3
19 Floating rate (thousands of dollars)
20
1-99
21
100-499
22
500-999
23
1,000-4,999
24
5,000-9,999
25
10,000 and over
22,056,041
1,661,515
3,173,793
1.625.130
4,640,477
2,154,399
8,800,726
246
24
200
655
2,050
6,700
24,757
121
170
181
186
149
70
63
5.58
7.48
6.93
6.55
6.04
5.30
4.37
64.8
84.6
78.0
70.2
59.2
44.6
63.3
68.5
84.3
88.8
89.6
84.7
81.8
42.6
8.0
2.7
5.5
7.8
8.4
7.1
9.9
6.61
81.1
63.4
5.0
1.4
1.2
7.2
5.9
5.2
8.4
7.4
Months
26 Total long term
3,705,469
159
64.7
76.4
7.3
27 Fixed rate (thousands of dollars) . .
28
1-99
29
100-499
30
500-999
31
1,000 and over
1,212,616
164,739
131,221
94,398
822,258
109
16
214
638
4,345
6.02
8.80
7.90
8.43
4.88
51.2
93.8
87.5
90.5
32.4
59.4
14.3
26.9
25.4
77.5
2.3
.0
1.5
2.0
2.9
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1,000 and over
2.492,853
215,718
527,409
330,607
1,419,119
205
25
218
657
2,970
6.47
7.77
7.06
6.72
5.99
71.3
90.1
84.8
75.0
62.6
84.7
62.2
71.1
81.2
93.9
9.8
4.5
4.7
7.0
13.2
Loan rate (percent)
Days
Effective 3
LOANS M A D E B E L O W PRIME
6
Nominal 8
10
37 Overnight
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand"
10,104,214
8,337
3.52
3.50
4.7
56.7
9.0
5,693,366
4.142,750
3,531
508
2,998
3.83
4.23
3.88
3.80
4.21
3.84
21.7
41.5
54.9
71.4
77.1
43.1
4.3
18.5
3.5
41 Total short term
28,101,541
2,052
3.79
3.77
28.2
58.8
7.9
42
43
18,063,114
10,038,427
2,732
1,417
3.69
3.97
3.67
3.93
13.9
53.8
64.9
47.6
7.0
9.5
77.6
5.7
69.7
87.8
2.1
10.4
Fixed rate
Floating rate
8,161,210
Months
44 Total long term
45
46
Fixed rate . .
Floating rate
For notes see end of table.
1,308,599
662
4.53
4.50
735,393
573,207
668
654
4.57
4.47
4.55
4.44
25.4
50.8
Financial Markets
4.23—Continued
Amount of
loans
($1,000)
Characteristic
Average
size
($1,000)
Weighted
average
maturity 2
Days
Weighted
average
effective 3
Standard
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
48.4
Loan rate (percent)
11.0
LARGE BANKS
1 Overnight 6
7,908,231
7,694
3
4
2 One month and under (excluding
overnight)
Fixed rate
Floating rate
4,649,178
3,276,260
1,372,918
2,970
4,756
1,566
14
14
16
3.93
3.74
4.39
21.4
18.7
27.7
82.6
76.1
97.9
1.0
1.3
.3
5 Over one month and under a y e a r .
6
Fixed rate
7
Floating rate
4,349,395
1,962,634
2,386,761
928
2,234
627
110
67
145
4.91
4.54
5.21
54.2
53.6
54.6
87.8
85.5
89.7
14.7
15.7
13.9
8 Demand 7
9
Fixed rate
10
Floating rate
11,989,371
1,134,438
10,854,933
675
1,270
644
5.08
4.09
5.18
62.7
15.4
67.7
57.1
80.8
54.6
4.3
1.7
4.5
11 Total short term
28,896,175
1,154
33
4.46
39.6
63.4
7.2
12 Fixed rate (thousands of dollars) . .
13
1-99
14
100-499
15
500-999
16
1,000-4,999
17
5,000-9,999
18
10,000 and over
14,281,562
20,636
127,815
241,061
2,442,412
2,513,921
8,935,716
4,094
26
259
701
2,374
6,604
19,711
14
106
38
54
28
14
10
3.79
7.06
5.40
4.77
4.24
3.78
3.62
16.8
46.5
47.6
24.8
17.8
13.0
62.4
52.0
77.3
84.9
78.9
62.6
57.1
8.7
.0
5.9
4.3
5.8
11.6
8.9
19 Floating rate (thousands of dollars)
20
1-99
21
100-499
22
500-999
23
1,000-4,999
24
5,000-9,999
25
10,000 and over
14,614,613
406,040
1,208,730
795,595
2,581,846
1,727,570
7,894,832
678
32
208
657
2,121
6,786
24,638
157
149
144
130
82
72
5.11
7.25
6.81
6.30
5.67
5.14
4.44
82.5
75.1
59.6
47.4
46.1
67.1
64.4
91.2
91.0
89.4
84.0
5.7
1.9
3.3
6.9
7.1
6.1
5.5
3.59
61.0
61.8
82.1
46.1
Months
1,798,869
545
5.97
60.3
27 Fixed rate (thousands of dollars) . .
28
1-99
29
100-499
30
500-999
31
1,000 and over
325,718
6,146
21,997
20,858
276,718
777
27
240
694
4,175
5.30
8.29
6.76
7.15
4.97
56.6
89.6
75.5
81.4
52.6
78.1
36.9
57.0
62.1
81.8
6.2
1.0
7.1
9.1
6.1
32 Floating rate (thousands of dollars)
33
1-99
34
100-499
35
500-999
36
1,000 and over
1,473,151
37,285
234,131
189,753
1,011,982
511
29
231
669
3,303
6.11
6.97
6.88
6.54
5.83
61.1
87.9
77.0
65.6
55.6
91.3
85.5
85.1
11.5
4.7
6.2
9.0
13.5
26 Total long term
10.6
88.1
93.6
Loan rate (percent)
Days
Effective 3
LOANS M A D E B E L O W PRIME
Nominal 8
10
11.2
7,766,005
8,820
3.54
3.52
6.1
4,451,478
2,958,534
7,100,246
6,201
3,106
4,928
3.81
4.12
3.86
3.78
4.10
3.82
19.8
46.4
59.8
41 Total short term
22,276,263
5,581
3.77
3.75
31.3
56.9
42
43
13,797,459
8,478,803
5,586
5,572
3.69
3.90
3.68
3.86
15.3
57.4
61.3
49.7
8.5
6.0
43.7
92.0
9.9
50.1
40.6
86.0
94.8
3.5
12.9
37 Overnight 6
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand 7
Fixed rate
Floating rate
22
82.4
88.9
37.9
1.0
17.2
3.6
Months
44 Total long term
661,259
2,520
4.19
45
46
215,686
445,572
3,127
2,304
4.35
4.12
Fixed rate . .
Floating rate
For notes see end of table.
4.30
4.09
All
A78
Special Tables • August 1993
4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 3-7, 1993'—Continued
Commercial and industrial loans—Continued
Amount of
loans
($1,000)
Characteristic
Average
size
($1,000)
Weighted
average
maturity2
Days
Loan rate (percent)
Weighted
average
effective 3
Standard
Loans
secured
by
collateral
(percent)
Loans
made
under
commitment
(percent)
Participation
loans
(percent)
OTHER BANKS
1 Overnight6
2,339,223
5,296
2 One month and under (excluding
overnight)
3 Fixed rate
4 Floating rate
1,700,027
726,073
973,954
207
316
164
22
17
25
4.78
4.13
5.26
43.8
21.3
60.5
46.8
45.5
47.8
15.9
1.5
26.6
5 Over one month and under a year .
6
Fixed rate
7 Floating rate
3,527,055
979,323
2,547,732
66
48
78
181
157
190
6.37
6.27
6.40
60.8
58.6
61.6
64.2
46.9
70.8
10.9
3.3
13.8
8 Demand 7
9 Fixed rate
10 Floating rate
4,749,433
829,691
3,919,742
145
276
132
6.39
4.19
6.85
69.1
79.3
86.6
81.3
87.7
7.0
2.2
8.0
11 Total short term
12,315,738
130
5.60
50.1
74.9
8.4
18.5
80.5
77.2
28.7
21.5
5.6
4.2
72.1
25.7
43.0
71.9
69.5
74.6
83.7
2.2
1.2
7.7
10.2
4.0
.0
70.8
85.3
79.9
80.3
74.0
38.5
30.3
76.7
82.1
87.5
89.7
85.7
80.4
11.9
12.4
3.0
6.8
8.6
47.5
3.45
12 Fixed rate (thousands of dollars) . .
13 1-99
14 100-499
15 500-999
16 1,000-4,999
17 5,000-9,999
18 10,000 and over
4,874,310
326,908
314,433
89,804
1,066,105
955,661
2,121,400
185
14
182
660
1,921
7,360
16,990
42
178
186
83
48
15
5
7,441,427
1,255,475
1,965,063
829,535
2,058,632
426,829
905,895
109
23
195
654
1,968
6,374
25,847
145
171
190
209
177
35
44
21.0
4.24
8.35
7.10
4.74
4.32
3.74
3.35
19 Floating rate (thousands of dollars)
20
1-99
21
100-499
22 500-999
23
1,000-4,999
24 5,000-9,999
25
10,000 and over
87.6
.36
6.49
7.55
7.00
6.78
6.52
5.96
3.84
1.2
10.0
11.0
Months
1.906,600
95
6.65
.21
68.9
64.6
4.3
27 Fixed rate (thousands of dollars) . .
28
1-99
29 100-499
30 500-999
31
1,000 and over
886,898
158,593
109,224
73,541
545,540
83
16
209
624
4,437
6.28
8.82
8.13
8.80
4.84
.41
.32
.25
1.04
.57
49.3
94.0
89.9
93.1
22.2
52.5
13.5
20.9
15.0
75.2
.9
.0
.4
.0
1.3
32 Floating rate (thousands of dollars)
33
1-99
34 100-499
35 500-999
36
1,000 and over
1,019,702
178,433
293,278
140,854
407,137
6.98
24
209
643
2,377
.15
.13
.18
.32
86.0
90.5
91.0
87.8
79.8
75.1
57.3
59.9
71.8
94.9
7.3
4.5
3.5
4.4
12.3
26 Total long term
110
7.94
7.21
6.97
6.39
.16
Loan rate (percent)
Days
Effective3
LOANS M A D E B E L O W PRIME
6
Nominal8
10
37 Overnight
38 One month and under (excluding
overnight)
39 Over one month and under a year
40 Demand 7
2,338,209
7,056
3.45
3.44
1,241,888
1,1184,217
1,060,964
1,388
165
828
21
121
3.90
4.52
4.00
3.86
4.48
3.99
28.7
29.4
22.3
31.9
47.6
77.8
16.2
21.8
2.6
41 Total short term
5,825,278
600
36
3.86
3.84
16.2
65.8
9.1
42
43
4,265,654
1,559,624
1,030
280
3.68
4.37
3.66
4.33
9.5
34.3
76.5
36.5
1.9
28.7
4.85
29.2
63.0
1.5
4.65
5.68
15.1
86.4
63.0
63.2
1.5
1.5
Fixed rate
Floating rate
87.6
Months
44 Total long term
647,341
378
45
46
519,706
127,635
504
187
Fixed rate . .
Floating rate
For notes see following page.
46
4.66
5.70
Financial Markets
A79
NOTES TO TABLE 4.23
1. 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 loans 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
complete survey of lending at all banks.
5. The most common base rate is that 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 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 the
stated rate and other terms of the loans 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 the prime may vary substantially from the proportion of such loans outstanding in banks' portfolios.
A80
Special Tables • August 1993
4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 19931
Millions of dollars
New York
All states
Item
1 Total assets4
Total
including
IBFs
IBFs
only
Total
including
IBFs
Illinois
California
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
683,115
284,545
515,865
225,358
75,686
33,708
54,442
17,943
2 Claims on nonrelated parties
3 Cash and balances due from depository institutions
4
Cash items in process of collection and unposted
debits
5
Currency and coin (U.S. and foreign)
6
Balances with depository institutions in United States . .
7
U.S. branches and agencies of other foreign banks
(including IBFs)
8
Other depository institutions in United States
(including IBFs)
9
Balances with banks in foreign countries and with
foreign central banks
10
Foreign branches of U.S. banks
Other banks in foreign countries and foreign central
11
banks
12 Balances with Federal Reserve Banks
593,631
133,995
175,117
107,180
441,294
114,633
144,672
89,498
69,032
7,193
13,232
6,549
54,113
10,785
12,761
10,358
3,171
25
81,933
0
n.a.
60,664
3,043
18
70,101
0
n.a.
50,028
16
2
5,036
0
n.a.
4,480
82
1
6,053
0
n.a.
5,789
77,180
58,717
66,017
48,144
4,741
4,460
5,851
5,757
4,753
1,948
4,085
1,884
2%
20
202
32
47,997
1,454
46,515
1,424
40,790
1,216
39,470
1,186
2,072
151
2,069
151
4,598
65
4,568
65
46,543
870
45,092
n.a.
39,575
680
38,284
n.a.
1,921
66
1,918
n.a.
4,533
50
4,504
n.a.
13 Total securities and loans
374,719
57,884
255,472
46,232
55,625
6,215
37,444
1,989
83,406
31,349
13,906
n.a.
76,666
30,860
12,988
n.a.
3,598
127
553
n.a.
2,734
307
338
n.a.
14 Total securities, book value
15 U.S. Treasury
16 Obligations of U.S. government agencies and
corporations
17 Other bonds, notes, debentures, and cor]x>rate stock
(including state and local securities)
16,232
n.a.
15,505
n.a.
35,825
13,906
30,301
12,988
2,913
553
2,331
338
18 Federal funds sold and securities purchased under
agreements to resell
19 U.S. branches and agencies of other foreign banks
20
Commercial banks in United States
21 Other
35,213
11,683
3,858
19,672
3,582
2,171
103
1,308
33,352
10,426
3,636
19,289
3,267
2,119
103
1,045
540
402
67
71
2
2
0
0
791
616
32
143
150
50
0
100
291,440
127
291,313
43,987
9
43,978
178,890
84
178,806
33,251
8
33,243
52,046
19
52,027
5,663
1
5,662
34,726
16
34,710
1,652
0
1,651
49,415
39,211
18,106
15,700
2,406
516
26,286
9,660
9,349
311
25,133
29,363
13,451
11,799
1,652
248
19,504
7,112
6,844
268
15,883
4,731
2,797
2,682
115
228
3,723
1,937
1,894
43
4,891
2,471
1,558
1,098
460
40
1,154
610
610
0
304
20,801
542
20,259
23,720
5
16,621
316
16,306
968
7
15,906
367
15,539
20,964
5
12,387
281
12,106
840
0
1,934
175
1,760
917
0
1,786
35
1,751
27
298
616
0
616
1,403
0
544
0
544
20
163,619
143,679
19,940
1,155
621
534
12,025
424
11,601
67
0
67
90,671
76,355
14,316
839
504
335
9,113
324
8,789
57
0
57
29,930
27,604
2,327
118
52
65
1,543
78
1,465
0
0
0
25,194
24,472
722
5
0
5
387
7
380
0
0
0
5,468
3,931
3,991
3,369
142
106
343
50
5,141
3,711
65
129
4,880
3,049
29
91
187
139
35
1
62
357
0
0
49,703
16,862
12,074
4,788
6,471
n.a.
n.a.
n.a.
37,837
11,575
7,466
4,109
5,675
n.a.
n.a.
n.a.
5,674
3,822
3,484
338
466
n.a.
n.a.
n.a.
5,093
859
753
106
264
n.a.
n.a.
n.a.
32,842
89,484
6,471
109,428
26,262
74,571
5,675
80,686
1,852
6,655
466
20,477
4,234
330
264
5,182
89,484
n.a.
74,571
n.a.
6,655
n.a.
n.a.
109,428
n.a.
80,686
n.a.
20,477
n.a.
5,182
52 Total liabilities4
683,115
284,545
515,865
225,358
75,686
33,708
54,442
17,943
53 Liabilities to nonrelated parties
568,840
254,243
460,328
203,111
59,946
33,339
30,734
11,823
22 Total loans, gross
23
Less: Unearned income on loans
24 Equals: Loans, net
Total loans, gross, by category
25 Real estate loans
26 Loans to depository institutions
27
Commercial banks in United States (including IBFs)
28
U.S. branches and agencies of other foreign banks . . .
29
Other commercial banks in United States
30
Other depository institutions in United States (including
IBFs)
31
Banks in foreign countries
32
Foreign branches of U.S. banks
33
Other banks in foreign countries
34 Other financial institutions
35 Commercial and industrial loans
36
U.S. addressees (domicile)
37
Non-U.S. addressees (domicile)
38 Acceptances of other banks
39 U.S. banks
40
Foreign banks
41 Loans to foreign governments and official institutions
(including foreign central banks)
42 Loans for purchasing or carrying securities I secured and
unsecured)
43 All other loans
44 All other assets
45
Customers' liability on acceptances outstanding
46
U.S. addressees (domicile)
47
Non-U.S. addressees (domicile)
48
Other assets including other claims on nonrelated
49 Net due from related depository institutions-1
50 Net due from head office and other related depository
institutions 3
Net due from establishing entity, head offices, and other
51
related depository institutions
557
n.a.
97
330
n.a.
n.a.
U.S. Branches and Agencies
4.30—Continued
Millions of dollars
All states
Item
54 Total deposits and credit balances
55 Individuals, partnerships, and corporations
56
U.S. addressees (domicile)
57
Non-U.S. addressees (domicile)
58 Commercial banks in United States (including IBFs).
59
U.S. branches and agencies of other foreign banks
60
Other commercial banks in United States
61 Banks in foreign countries
Foreign branches of U.S. banks
62
63
Other banks in foreign countries
64 Foreign governments and official institutions
(including foreign central banks)
65 All other deposits and credit balances
66 Certified and official checks
67 Transaction accounts and credit balances
(excluding IBFs)
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs).
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
78 All other deposits and credit balances
79 Certified and official checks
68
69
70
71
72
73
74
75
76
77
80 Demand deposits (included in transaction accounts
and credit balances)
81 Individuals, partnerships, and corporations
82
U.S. addressees (domicile)
83
Non-U.S. addressees (domicile)
84 Commercial banks in United States (including IBF)s.
85
U.S. branches and agencies of other foreign banks
86
Other commercial banks in United States
87 Banks in foreign countries
88
Foreign branches of U.S. banks
89
Other banks in foreign countries
90 Foreign governments and official institutions
(including foreign central banks)
91 All other deposits and credit balances
92 Certified and official checks
93 Non-transaction accounts (including MMDAs,
excluding IBFs)
Individuals, partnerships, and corporations
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs).
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
Banks in foreign countries
Foreign branches of U.S. banks
Other banks in foreign countries
Foreign governments and official institutions
(including foreign central banks)
104 All other deposits and credit balances
94
95
96
97
98
99
100
101
102
103
105 IBF deposit liabilities
106 Individuals, partnerships, and corporations
107
U.S. addressees (domicile)
108
Non-U.S. addressees (domicile)
109 Commercial banks in United States (including IBFs).
110
U.S. branches and agencies of other foreign banks
111
Other commercial b i l k s in United States
112 Banks in foreign countries
113
Foreign branches of U.S. banks
114
Other banks in foreign countries
115 Foreign governments and official institutions
(including foreign central banks)
116 All other deposits and credit balances
For notes see end of table.
New York
Total
excluding
IBFs
IBFs
only
172,311
6,835
168
6,668
53,309
46,995
6,314
93,907
4,689
89,218
4,383
4,105
2,330
1,775
31
26
4
36
6,621
491
17,929
331
182
6
22
IBFs
only
Total
excluding
IBFs
IBFs
only
153,994
109,201
94,310
14,891
27,144
14,301
12,843
7,887
4,087
3,800
188,865
11,561
176
11,385
57,655
50,590
7,065
99,898
5,925
93,974
134,083
91,816
83,036
8,780
25,554
13,691
11,863
7,641
4,050
3,591
2,224
6,482
1,057
19,361
389
1,863
6,201
1,007
Total
excluding
IBFs
Illinois
California
0
36
0
491
2,268
1,786
482
2,884
195
2,689
978
0
Total
excluding
IBFs
6,243
5,499
4,426
1,073
667
321
346
63
35
28
2
4
372
357
352
5
8,776
6,253
4,523
1,730
143
45
98
896
4
892
7,240
4,976
3,857
1,119
135
43
92
761
4
757
294
229
182
47
4
314
113
1,057
271
90
1,007
5
6
22
2
3
8,183
5,817
4,353
1,463
107
22
85
833
4
829
6,954
4,817
3,776
1,041
103
21
83
710
4
706
236
183
150
33
358
344
339
5
285
84
1,057
248
69
1,007
145,218
102,948
89,787
13,161
27,001
14,256
12,744
6,991
4,083
2,908
126,843
86,840
79,179
7,661
25,419
13,648
11,771
6,880
4,047
2,834
4,089
3,876
2,148
1,728
26
26
1,910
6,369
1,592
6,112
177
0
0
0
1
0
1
0
4
27
0
27
0
0
0
1
0
1
1
0
0
24
0
24
2
3
5
1
22
5,871
5,142
4,074
1,068
667
321
346
62
35
27
0
9
0
9
0
1
0
188,865
11,561
176
11,385
57,655
50,590
7,065
99,898
5,925
93,974
172,311
6,835
168
6,668
53,309
46,995
6,314
93,907
4,689
89,218
6,621
491
19,361
389
17,929
331
978
0
491
2,268
1,786
482
2,884
195
2,689
0
A81
A82
4.30
Special Tables • August 1993
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 19931—Continued
Millions of dollars
New York
All states
Item
Total
including
IBFs
117 Federal funds purchased and securities s;old under
agreements to repurchase
118
U.S. branches and agencies of other foreign banks
119
Other commercial banks in United States
170
Other
121 Other borrowed money
122 Owed to nonrelated commercial banks in United States
(including IBFs)
Owed to U . S . offices of nonrelated U.S. banks
123
124
Owed to U.S. branches and agencies of
nonrelated foreign banks
125 Owed to nonrelated banks in foreign countries
126
Owed to foreign branches of nonrelated U.S. banks . . .
127
Owed to foreign offices of nonrelated foreign banks
128 Owed to others
129 All other liabilities
130
Branch or agency liability on acceptances executed
and outstanding
Other liabilities to nonrelated parties
131
5
132 Net due to related depository institutions;
133
Net due to head office and other related depository
institutions
134
Net due to establishing entity, head ofiice, and other
related depository institutions
MEMO
135 Non-interest bearing balances with commercial banks
in United States
136 Holding of commercial paper included in total loans
137 Holding of own acceptances included in commercial
and industrial loans
138 Commercial and industrial loans with remaining maturity
of one year or less
Predetermined interest rates
139
Floating interest rates
140
141 Commercial and industrial loans with remaining maturity
of more than one year
Predetermined interest rates
142
Floating interest rates
143
IBFs
only
California
Illinois
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
Total
including
IBFs
IBFs
only
68,295
13,587
14,950
39,757
110,820
9,702
2,648
152
6,902
50,231
53,471
8,106
10,274
35,091
64,591
5,586
1,066
102
4,417
20,476
9,047
3,726
2,692
2,628
34,642
2,479
1,218
30
1,231
23,763
5,357
1,649
1,864
1,844
9,728
1,557
346
20
1,191
5,507
40,456
13,147
19,836
2,620
17,311
7,876
4,605
1,044
18,392
3,368
13,340
1,382
3,503
1,551
1,672
143
27,308
28,500
1,849
26,651
41,864
17,216
27,140
1,750
25,390
3,256
9,435
14,271
1,024
13,246
33,010
3,561
13,102
938
12,163
2,769
15,024
10,523
639
9,884
5,727
11,958
10,360
629
9,731
63
1,951
3,413
177
3,236
2,812
1,529
3,411
175
3,236
423
46,866
5,445
35,871
4,739
5,254
477
4,841
196
18,524
28,342
n.a.
5,445
13,171
22,701
n.a.
4,739
3,828
1,426
n.a.
477
859
3,982
n.a.
196
114,275
30,303
55,537
22,247
15,741
370
23,709
6,120
114,275
n.a.
55,537
n.a.
15,741
n.a.
30,303
n.a.
22,247
n.a.
1,619
990
0
0
1,256
853
23,709
n.a.
370
169
94
0
n.a.
n.a.
6,120
114
35
3,322
2,648
356
109
98,578
61,698
36,880
53,554
31,243
22,311
18,014
11,775
6,238
15,726
11,870
3,856
0
65,041
22,938
42,103
n. a.
37,117
12,788
24,329
n.a.
11,917
4,541
7,376
n.a.
9,469
4,104
5,364
n.a.
U.S. Branches and Agencies
A83
4.30—Continued
Millions of dollars
New York
All states
Item
144 Components of total nontransaction accounts,
included in total deposits and credit balances of
nontransactiona] accounts, including IBFs
145 Time CDs in denominations of $100,000 or more
146 Other time deposits in denominations of $100,000
or more
147 Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months ..
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
Total
excluding
IBFs
IBFs
only
4,833
2,745
IBFs
only
t
6,019
4,132
t
t
133,553
101,642
t
23,996
n.a.
\
21,289
n.a.
884
n.a.
1,520
n.a.
10,623
\
1,203
\
367
1
12,272
Total
including
IBFs
2
New York
IBFs
only
Total
including
IBFs
California
IBFs
only
Total
including
IBFs
Illinois
IBFs
only
Total
including
IBFs
IBFs
only
82,794
13,781
75,880
12,842
3,662
576
2,848
336
71,176
575
n.a.
36,244
268
n.a.
26,816
134
n.a.
0
6,866
51
n.a.
0
1. Data are aggregates of categories reported on the quarterly form FFIEC 002,
"Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign
Banks." Details may not add to totals because of rounding. This form was first
used for reporting data as of June 30, 1980, and was revised as of December 31,
1985. From November 1972 through May 1980, U.S. branches and agencies of
foreign banks had filed a monthly FK 886a report. Aggregate data from that report
were available through the Federal Reserve statistical release G. 11, last issued on
July 10,1980. Data in this table and in the G . l l tables are not strictly comparable
because of differences in reporting panels and in definitions of balance sheet
items.
2. Includes the District of Columbia.
3. Effective December 1981, the Federal Reserve Board amended Regulations
D and Q to permit banking offices located in the United States to operate
International Banking Facilities (IBFs). As of December 31, 1985 data for IBFs
are reported in a separate column. These data are either included in or excluded
from the total columns as indicated in the headings. The notation " n . a . " indicates
Illinois
151,231
114,963
All states
148 Market value of securities held
149 Immediately available funds with a maturity greater than
one day included in other borrowed money
150 Number of reports filed6
Total
excluding
IBFs
California
0
0
that no IBF data re reported for that item, either because the item is not an eligible
IBF asset or liability or because that level of detail is not reported for IBFs. From
December 1981 through September 1985, IBF data were included in all applicable
items reported.
4. Total assets and total liabilities include net balances, if any, due from or due
to related banking institutions in the United States and in foreign countries (see
footnote 5). On the former monthly branch and agency report, available through
the G . l l statistical release, gross balances were included in total assets and total
liabilities. Therefore, total asset and total liability figures in this table are not
comparable to those in the G . l l tables.
5. "Related banking institutions" includes the foreign head office and other
U.S. and foreign branches and agencies of the bank, the bank's parent holding
company, and majority-owned banking subsidiaries of the bank and of its parent
holding company (including subsidiaries owned both directly and indirectly).
6. In some cases two or more offices of a foreign bank within the same
metropolitan area file a consolidated report.
A84
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, 22,23
Assets and liabilities (See also Foreigners)
Banks, by classes, 20-23
Domestic finance companies, 36
Federal Reserve Banks, 11
Financial institutions, 28
Foreign banks, U.S. branches and agencies, 24, 80-83
Automobiles
Consumer installment credit, 39
Production, 47, 48
BANKERS acceptances, 10, 23, 26
Bankers balances, 20-23, 80-83. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 35
Rates, 26
Branch banks, 24, 55
Business activity, nonfinancial, 45
Business expenditures on new plant and equipment, 35
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 20, 71, 73, 75
Federal Reserve Banks, 11
Central banks, discount rates, 67
Certificates of deposit, 26
Commercial and industrial loans
Commercial banks, 18, 22, 70, 72, 74, 76-79
Weekly reporting banks, 22-24
Commercial banks
Assets and liabilities, 20-23, 76-79
Commercial and industrial loans, 18, 20,21, 22, 23, 24
Consumer loans held, by type and terms, 39, 70, 72, 74
Deposit interest rates of insured, 16
Loans sold outright, 22
Nondeposit funds, 19, 80-83
Number by classes, 71, 73, 75
Real estate mortgages held, by holder and property, 38
Terms of lending, 76-79
Time and savings deposits, 4
Commercial paper, 25, 26, 36
Condition statements (See Assets and liabilities)
Construction, 45, 49
Consumer installment credit, 39
Consumer prices, 45, 46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 35
Profits and their distribution, 35
Security issues, 34, 65
Cost of living (See Consumer prices)
Credit unions, 39
Currency and coin, 70, 72, 74
Currency in circulation, 5, 14
Customer credit, stock market, 27
DEBITS to deposit accounts, 17
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 20-24
Ownership by individuals, partnerships, and
corporations, 24
Turnover, 17
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5,6, 13, 71,73, 75
Deposits (See also specific types)
Banks, by classes, 4, 20-23, 24
Federal Reserve Banks, 5,11
Interest rates, 16
Turnover, 17
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, 35
EMPLOYMENT, 45
Eurodollars, 26
FARM mortgage loans, 38
Federal agency obligations, 5, 10, 11, 12, 31, 32
Federal credit agencies, 33
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 30
Receipts and outlays, 28, 29
Treasuryfinancingof surplus, or deficit, 28
Treasury operating balance, 28
Federal Financing Bank, 28, 33
Federal funds, 7, 19, 22, 23, 24, 26, 28
Federal Home Loan Banks, 33
Federal Home Loan Mortgage Corporation, 33, 37, 38
Federal Housing Administration, 33, 37, 38
Federal Land Banks, 38
Federal National Mortgage Association, 33, 37, 38
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 30
Federal Reserve credit, 5, 6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 33
Finance companies
Assets and liabilities, 36
Business credit, 36
Loans, 39
Paper, 25, 26
Financial institutions
Loans to, 22, 23, 24
Selected assets and liabilities, 28
Float, 51
Flow of funds, 40, 42, 43,44
Foreign banks, assets and liabilities of U.S. branches and
agencies, 23, 24, 80-83
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 22, 23
Foreign exchange rates, 68
Foreign trade, 54
A85
Foreigners
Claims on, 55, 57, 60, 61, 62, 64
Liabilities to, 23, 54, 55, 57, 58, 63, 65, 66
GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 33, 37, 38
Gross domestic product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 45, 51, 52
Industrial production, 45,47
Installment loans, 39
Insurance companies, 30, 38
Interest rates
Bonds, 26
Commercial banks, 76-79
Consumer installment credit, 39
Deposits, 16
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 67
Money and capital markets, 26
Mortgages, 37
Prime rate, 25
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 35
Investments (See also specific types)
Banks, by classes, 20, 21, 22, 23, 24, 28
Commercial banks, 4, 18, 20-23, 72
Federal Reserve Banks, 11, 12
Financial institutions, 38
LABOR force, 45
Life insurance companies {See Insurance companies)
Loans (See also specific types)
Banks, by classes, 20-23
Commercial banks, 4, 18, 20-23, 70, 72, 74
Federal Reserve Banks, 5, 6, 8, 11, 12
Financial institutions, 28, 38
Insured or guaranteed by United States, 37, 38
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 27
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 7
Reserve requirements, 9
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 4, 13
Money and capital market rates, 26
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 35
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 29
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 45, 50
Stock market, 27
Prime rate, 25
Producer prices, 45, 50
Production, 45, 47
Profits, corporate, 35
REAL estate loans
Banks, by classes, 18, 22, 23, 38, 72
Financial institutions, 28
Terms, yields, and activity, 37
Type of holder and property mortgaged, 38
Repurchase agreements, 7, 19, 22, 23, 24
Reserve requirements, 9
Reserves
Commercial banks, 20
Depository institutions, 4, 5, 6, 13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 37
Retail credit and retail sales, 39, 40, 45
SAVING
Flow of funds, 40, 42, 43,44
National income accounts, 51
Savings and loan associations, 38, 39,40. (See also SAIF-insured
institutions)
Savings Association Insurance Funds (SAIF) insured institutions, 28
Savings banks, 28, 38, 39
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 33
Foreign transactions, 65
New issues, 34
Prices, 27
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 22, 23
Holdings of U.S. government securities, 30
New security issues, 34
Ownership of securities issued by, 22, 23
Rates on securities, 26
Stock market, selected statistics, 27
Stocks (See also Securities)
New issues, 34
Prices, 27
Student Loan Marketing Association, 33
TAX receipts, federal, 29
Thrift institutions, 4. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 4, 14, 16, 19, 20, 21, 22, 23, 24, 71,
73, 75
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 28
Treasury operating balance, 28
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 20, 21, 22, 23
Treasury deposits at Reserve Banks, 5, 11, 28
U.S. government securities
Bank holdings, 20-23, 24, 30
Dealer transactions, positions, and financing, 32
Federal Reserve Bank holdings, 5, 11, 12, 30
Foreign and international holdings and
transactions, 11, 30, 66
Open market transactions, 10
Outstanding, by type and holder, 28, 30
Rates, 25
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 37, 38
WEEKLY reporting banks, 22-24
Wholesale (producer) prices, 45, 50
YIELDS (See Interest rates)
A86
Federal Reserve Board of Governors
and Official Staff
A L A N GREENSPAN,
Chairman
Vice Chairman
WAYNE D . ANGELL
DAVID W . MULLINS, JR.,
OFFICE OF BOARD
EDWARD W . KELLEY, JR.
MEMBERS
JOSEPH R. COYNE, Assistant to the Board
DONALD J. WINN, Assistant to the Board
THEODORE E. ALLISON, Assistant to the Board for
Federal
Reserve System Affairs
LYNN S. FOX, Special Assistant to the Board
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board
LEGAL
DIVISION OF INTERNATIONAL FINANCE
EDWIN M . TRUMAN, Staff Director
LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
DALE W . HENDERSON, Associate Director
DAVID H . HOWARD, Senior Adviser
DONALD B . ADAMS, Assistant Director
PETER HOOPER III, Assistant Director
KAREN H . JOHNSON, Assistant Director
RALPH W . SMITH, JR., Assistant Director
DIVISION
J. VIRGIL MATTINGLY, JR., General Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
DIVISION OF RESEARCH AND STATISTICS
MICHAEL J. PRELL, Director
EDWARD C . ETTIN, Deputy Director
WILLIAM R . JONES, Associate Director
THOMAS D . SIMPSON, Associate Director
LAWRENCE SLIFMAN, Associate
Director
Associate Director
MARTHA BETHEA, Deputy Associate Director
PETER A . TINSLEY, Deputy Associate Director
MYRON L . KWAST, Assistant Director
PATRICK M . PARKINSON, Assistant Director
MARTHA S. SCANLON, Assistant Director
JOYCE K . ZICKLER, Assistant Director
DAVID J. STOCKTON,
OFFICE OF THE SECRETARY
WILLIAM W . WILES,
Secretary
JENNIFER J. JOHNSON, Associate
Secretary
BARBARA R. LOWREY, Associate
Secretary
ELLEN MALAND, Assistant
Secretary
DIVISION OF BANKING
SUPERVISION AND REGULATION
Director
Deputy Director
D O N E. KLINE, Associate Director
WILLIAM A . RYBACK, Associate Director
FREDERICK M . STRUBLE, Associate Director
HERBERT A . BIERN, Deputy Associate Director
ROGER T. COLE, Deputy Associate Director
JAMES I. GARNER, Deputy Associate Director
HOWARD A . AMER, Assistant Director
GERALD A . EDWARDS, JR., Assistant Director
JAMES D . GOETZINGER, Assistant Director
STEPHEN M . HOFFMAN, JR., Assistant Director
LAURA M . HOMER, Assistant Director
JAMES V. HOUPT, Assistant Director
JACK P. JENNINGS, Assistant Director
MICHAEL G . MARTINSON, Assistant Director
RHOGER H PUGH, Assistant Director
SIDNEY M . SUSSAN, Assistant Director
MOLLY S. WASSOM, Assistant Director
JOHN J. MINGO,
Adviser
LEVON H . GARABEDIAN,
Assistant Director
(Administration)
RICHARD SPILLENKOTHEN,
STEPHEN C . SCHEMERING,
DIVISION OF MONETARY AFFAIRS
Director
Deputy Director
BRIAN F. MADIGAN, Associate Director
RICHARD D . PORTER, Deputy Associate Director
DEBORAH DANKER, Assistant Director
DONALD L . KOHN,
DAVID E. LINDSEY,
NORMAND R.V. BERNARD, Special Assistant to the Board
DIVISION
OF
AND COMMUNITY
CONSUMER
AFFAIRS
GRIFFITH L . GARWOOD,
Director
Associate Director
DOLORES S . SMITH, Associate Director
MAUREEN P. ENGLISH, Assistant Director
IRENE SHAWN MCNULTY, Assistant Director
GLENN E. LONEY,
A87
SUSAN M . PHILLIPS
J O H N P. LAWARE
LAWRENCE B . LINDSEY
OFFICE OF
STAFF DIRECTOR FOR
MANAGEMENT
Staff Director
Special Assignment:
Project Director, National Information Center
PORTIA W . THOMPSON, Equal Employment Opportunity
Programs Officer
S . DAVID FROST,
WILLIAM SCHNEIDER,
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
Controller
STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R . PAULEY, Assistant Controller (Finance)
GEORGE E . LIVINGSTON,
DIVISION OF SUPPORT SERVICES
ROBERT E . FRAZIER, Director
GEORGE M . LOPEZ, Assistant Director
DAVID L . WILLIAMS, Assistant Director
DIVISION OF INFORMATION RESOURCES
MANAGEMENT
STEPHEN R . MALPHRUS, Director
BRUCE M . BEARDSLEY, Deputy Director
MARIANNE M. EMERSON, Assistant
Po
Director
Assistant Director
RAYMOND H . MASSEY, Assistant Director
EDWARD T. MULRENIN, Assistant Director
DAY W. RADEBAUGH, JR., Assistant Director
ELIZABETH B . RIGGS, Assistant Director
RICHARD C . STEVENS, Assistant Director
KYUNG KIM,
DIVISION OF RESERVE BANK OPERATIONS
AND PAYMENT SYSTEMS
CLYDE H . FARNSWORTH, JR., Director
DAVID L . ROBINSON, Deputy Director (Finance and
Control)
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
Assistant Director
YOUNG, Assistant Director
LOUISE L. ROSEMAN,
FLORENCE M .
OFFICE OF THE INSPECTOR
GENERAL
BRENT L. BOWEN, Inspector
General
DONALD L. ROBINSON, Assistant Inspector General
BARRY R. SNYDER, Assistant Inspector General
88
Federal Reserve Bulletin • August 1993
Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET
COMMITTEE
MEMBERS
A L A N GREENSPAN ,
Chairman
E . GERALD CORRIGAN,
Vice Chairman
WAYNE D . ANGELL
EDWARD W . KELLEY, JR.
EDWARD G . BOEHNE
JOHN P. LAWARE
SUSAN M . PHILLIPS
SILAS KEEHN
LAWRENCE B . LINDSEY
GARY H . STERN
DAVID W . MULLINS, JR.
ROBERT D . MCTEER, JR.
ALTERNATE
J. ALFRED BROADDUS, JR.
ROBERT T. PARRY
JERRY L . JORDAN
ROBERT P. FORRESTAL
MEMBERS
JAMES H . OLTMAN
STAFF
DONALD L. KOHN, Secretary
NORMAND R . V . BERNARD,
and
RICHARD W. LANG, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
ARTHUR J. ROLNICK, Associate
Economist
HARVEY ROSENBLUM, Associate
Economist
KARL A. SCHELD, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
LAWRENCE SLIFMAN, Associate
Economist
Economist
Deputy Secretary
JOSEPH R. COYNE, Assistant
Secretary
GARY P. GILLUM, Assistant
Secretaiy
J. VIRGIL MATTINGLY, JR., General Counsel
ERNEST T. PATRIKIS,
Deputy General Counsel
MICHAEL J. PRELL, Economist
EDWIN M. TRUMAN, Economist
RICHARD G. DAVIS, Associate
Economist
Manager of the System Open Market Account
Deputy Manager for Foreign Operations
Deputy Manager for Domestic Operations
WILLIAM J. MCDONOUGH,
MARGARET L . GREENE,
JOAN E . LOVETT,
FEDERAL ADVISORY
COUNCIL
E. B. ROBINSON, JR.,
JOHN B . MCCOY,
N. CARTER, First District
S. SANFORD, JR., Second District
ANTHONY P. TERRACCIANO, Third District
JOHN B . MCCOY, Fourth District
EDWARD E . CRUTCHFIELD, JR., Fifth District
E . B . ROBINSON, JR., Sixth District
President
Vice President
Seventh District
B. CRAIG, HI, Eighth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A . RISMILLER, Tenth District
CHARLES R . HRDLICKA, Eleventh District
RICHARD M . ROSENBERG, Twelfth District
MARSHALL
EUGENE A . MILLER,
CHARLES
ANDREW
HERBERT V. PROCHNOW, Secretary
WILLIAM J. KORSVIK, Associate
Secretary
A89
CONSUMER ADVISORY
COUNCIL
Denver, Colorado, Chairman
Chicago, Illinois, Vice Chairman
D E N N Y D . DUMLER,
JEAN POGGE,
Charlottesville, Virginia
Madison, Wisconsin
GARY S . HATTEM, New York, New York
JULIA E. HILER, Marietta, Georgia
RONALD HOMER, Boston, Massachusetts
THOMAS L. HOUSTON, Dallas, Texas
BARRY A. ABBOTT, San Francisco, California
JOHN R. ADAMS, Philadelphia, Pennsylvania
JOHN
A.
BAKER,
BONNIE GUITON,
JOYCE HARRIS,
Atlanta, Georgia
Denver, Colorado
VERONICA E . BARELA,
MULUGETTA BIRRU, Pittsburgh, Pennsylvania
DOUGLAS
D.
St. Paul, Minnesota
Bronx, New York
BLANKE,
GENEVIEVE BROOKS,
HENRY JARAMILLO, Belen, N e w Mexico
TOYE L. BROWN, Boston, Massachusetts
EDMUND MIERZWINSKI, W a s h i n g t o n , D . C .
CATHY CLOUD, W a s h i n g t o n , D . C .
JOHN V. SKINNER, Irving, Texas
Yelm, Washington
St. Louis, Missouri
NORMA L. FREIBERG, New Orleans, Louisiana
LORI GAY, Los Angeles, California
DONALD A. GLAS, Hutchinson, Minnesota
MICHAEL
D.
LOWELL
EDWARDS,
THRIFT INSTITUTIONS ADVISORY
GRACE W. WEINSTEIN, Englewood, N e w Jersey
JAMES L. WEST,
COUNCIL
DANIEL
A. COOPER, Minneapolis, Minnesota
L. ECKERT, Davenport, Iowa
GEORGE R . GLIGOREA, Sheridan, Wyoming
THOMAS J. HUGHES, Merrifield, Virginia
KERRY KILLINGER, Seattle, Washington
WILLIAM
Tijeras, New Mexico
ROBERT O . ZDENEK, W a s h i n g t o n , D . C .
C.
Houston, Texas, President
Somerville, New Jersey, Vice President
ARNOLD,
BEATRICE D'AGOSTINO,
PAUL
N. SWANSON, Portland, Oregon
W. TIERNEY, Washington, D.C.
MICHAEL
MICHAEL FERRY,
CHARLES JOHN KOCH, Cleveland, Ohio
ROBERT MCCARTER, New Bedford, Massachusetts
NICHOLAS W. MITCHELL, JR., Winston-Salem, North
STEPHEN W. PROUGH, Irvine, California
THOMAS R . RICKETTS, Troy, Michigan
Carolina
A90
Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
MS-138, Board of Governors of the Federal Reserve System,
Washington, DC 20551 or telephone (202) 452-3244 or FAX
(202) 728-5886. When a charge is indicated, payment should
accompany request and be made payable to the Board of
Governors of the Federal Reserve System. Payment from foreign residents should be drawn on a U.S. bank.
THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.
1984. 120 pp.
ANNUAL REPORT.
ANNUAL REPORT: BUDGET REVIEW, 1991-92.
FEDERAL RESERVE BULLETIN. Monthly. $25.00
per year or
$2.50 each in the United States, its possessions, Canada,
and Mexico. Elsewhere, $35.00 per year or $3.00 each.
ANNUAL STATISTICAL DIGEST: period covered, release date,
number of pages, and price.
$ 6.50
October 1982
239 pp.
1981
$ 7.50
December 1983
266 pp.
1982
$11.50
October 1984
264 pp.
1983
$12.50
October 1985
254 pp.
1984
$15.00
October 1986
231 pp.
1985
$15.00
November 1987
288 pp.
1986
$15.00
October 1988
272 pp.
1987
$25.00
November 1989
256 pp.
1988
712 pp.
$25.00
March 1991
1980-89
$25.00
November 1991
185 pp.
1990
$25.00
November 1992
215 pp.
1991
SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES
OF CHARTS. Weekly. $30.00 per year or $.70 each in the
United States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $.80 each.
ancl other statutory provisions
affecting the Federal Reserve System, as amended through
August 1990. 646 pp. $10.00.
THE FEDERAL RESERVE ACT
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
(Truth in Lending—
Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each volume $2.25; 10 or more of same volume to one address,
$2.00 each.
A N N U A L PERCENTAGE RATE TABLES
Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; 10 or
more to one address, $1.25 each.
Federal Reserve Regulatory Service. Looseleaf; updated at
least monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $75.00 per
year.
Monetary Policy and Reserve Requirements Handbook.
$75.00 per year.
Securities Credit Transactions Handbook. $75.00 per year.
The Payment System Handbook. $75.00 per year.
Federal Reserve Regulatory Service. 3 vols. (Contains all
four Handbooks plus substantial additional material.)
$200.00 per year.
Rates for subscribers outside the United States are as follows
and include additional air mail costs:
Federal Reserve Regulatory Service, $250.00 per year.
Each Handbook, $90.00 per year.
THE U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each.
WELCOME TO THE FEDERAL RESERVE. March 1989. 14 pp.
INDUSTRIAL PRODUCTION—1986 EDITION. December 1986.
440 pp. $9.00 each.
FINANCIAL FUTURES AND OPTIONS IN THE U . S . ECONOMY.
December 1986. 264 pp. $10.00 each.
FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALYSIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each.
CONSUMER EDUCATION PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
How to File A Consumer Credit Complaint
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit
A91
STAFF STUDIES: Summaries Only Printed in the
Bulletin
Studies and papers on economic and financial subjects that are
of general interest. Requests to obtain single copies of the full
text or to be added to the mailing list for the series may be sent
to Publications Services.
Staff Studies 1-145 are out of print.
1 4 6 . THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1977-84, by
Thomas F. Brady. November 1985. 25 pp.
1 6 1 . A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,
1980-90, by Margaret Hastings Pickering. May 1991.
21pp.
1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FROM
MORTGAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n
A. Rhoades. February 1992. 11 pp.
1 6 3 . CLEARANCE AND SETTLEMENT IN U . S . SECURITIES MAR-
KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary
Ann Taylor. March 1992. 37 pp.
1 6 4 . THE 1 9 8 9 - 9 2 CREDIT CRUNCH FOR REAL ESTATE, b y
James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.
1 4 7 . REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, by Helen T. Farr
and Deborah Johnson. December 1985. 42 pp.
1 4 8 . THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION
RESULTS, by Flint Brayton and Peter B. Clark. December
1985. 17 pp.
1 4 9 . THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, b y S t e p h e n
A. Rhoades. April 1986. 32 pp.
1 5 0 . STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, by John T.
Rose and John D. Wolken. May 1986. 13 pp.
1 5 1 . 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.
1 5 2 . DETERMINANTS OF CORPORATE MERGER ACTIVITY: A
REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
by Carolyn D. Davis and
Alice P. White. September 1987. 14 pp.
1 5 3 . STOCK MARKET VOLATILITY,
1 5 4 . T H E EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES,
by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
155. THE FUNDING OF PRIVATE PENSION PLANS, by Mark J.
Warshawsky. November 1987. 25 pp.
1 5 6 . INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING
MARKETS, by James V. Houpt. May 1988. 47 pp.
1 5 7 . M 2 PER UNIT OF POTENTIAL G N P AS AN ANCHOR FOR
THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
1 5 8 . THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE
PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, by Nellie Liang
and Donald Savage. February 1990. 12 pp.
1 6 0 . BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y
Gregory E. Elliehausen and John D. Wolken. September
1 9 9 0 . 3 5 pp.
REPRINTS OF SELECTED Bulletin ARTICLES
Some Bulletin articles are reprinted. The articles listed below
are those for which reprints are available. Most of the articles
reprinted do not exceed twelve pages. 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.
Changes in Family Finances from 1983 to 1989: Evidence from
the Survey of Consumer Finances. 1/92.
U.S. International Transactions in 1991. 5/92.
A92
Maps of the Federal Reserve System
ISlfBli^B^fcs^^^Pi. .^lis.
BOSTON
B
2
| j|JjijljI® :
-
• NEW YORK
CHICAGO 1
• SAN FRANCISCO
^rawsHMMinnw 1
• PHILADELPHIA
CLEVELAND
10
4
RicmrfOND
Lex. fi^Sfti Jill
5
q
KANSAS CFTYB
ST.
IBSlFjiS
^BS^^^^lBiP
•tliv | | # f f | « i | p | | | | | .
ATLANTA
«>, JPBIRHPHIHMMR..
DAUAS
PI ^^PiMrtli^lpSW^Il*
A AK
LS A
HWI
AA
LEGEND
Both pages
• Federal Reserve Bank city
• Board of Governors of the Federal
Reserve System, Washington, D.C.
Facing page
• Federal Reserve Branch city
— Branch boundary
NOTE
The Federal Reserve officially identifies Districts
by number and Reserve Bank city (shown on both
pages) and by letter (shown on the facing page).
In the 12th District, the Seattle Branch serves
Alaska, and the San Francisco Bank serves Hawaii.
The System serves commonwealths and territories as follows: the New York Bank serves the
Commonwealth of Puerto Rico and the U.S. Virgin
Islands; the San Francisco Bank serves American
Samoa, Guam, and the Commonwealth of the
Northern Mariana Islands. The Board of Governors
revised the branch boundaries of the System most
recently in December 1991.
A93
1-A
5_E
4-D
3-C
2-B
Baltimore
Pittsburgh
A
/
• Cincinnati
Buffalo
• •
NJ
CT
K
Y
\
NY
NEW YORK
BOSTON
6-F
PHILADELPHIA
8-H
7-G
• Nashville
T
N
n
Birmingham.
wr
\
mm
Jacksonville
m
New Orleans
Louisville
"illliilii
O
A
M
S
L
A
RICHMOND
CLEVELAND
mmmij|||jj|gi
y•
Miami
ATLANTA
ST. LOUIS
CHICAGO
9-1
NHBSI
MRL
••MHBMHBtl
• Helena
* * I B B B B P FLR
• • I B I
MINNEAPOLIS
10-J
12-L
„
Omaha •
-
^
Denver
NM
>
MO
1—
Oklahoma City
•
KANSAS CITY
11-K
W I I L W
'—.
•
j
EI paso R
A
1 1X
MHII^ ^
••
DALLAS
Salt Lake City
L
A
Y
iston
San Antonio
)
• Los Angeles
HAWAII
SAN FRANCISCO
A94
Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
Chairman
branch, or facility
Zip
Deputy Chairman
President
First Vice President
BOSTON*
02106
Jerome H. Grossman
Warren B. Rudman
Richard F. Syron
Cathy E. Minehan
NEW YORK*
10045
Ellen V. Futter
Maurice R. Greenberg
Joseph J. Castiglia
William J. McDonough
James H. Oltman
Buffalo
14240
Vice President
in charge of branch
James O. Aston
PHILADELPHIA
19105
Jane G. Pepper
James M. Mead
Edward G. Boehne
William H. Stone, Jr.
CLEVELAND*
44101
Jerry L. Jordan
Sandra Pianalto
Cincinnati
Pittsburgh
45201
15230
A. William Reynolds
G. Watts Humphrey, Jr.
Marvin Rosenberg
Robert P. Bozzone
RICHMOND*
23219
Anne Marie Whittemore
Henry J. Faison
Rebecca Hahn Windsor
Anne M. Allen
J. Alfred Broaddus, Jr.
Jimmie R. Monhollon
Edwin A. Huston
Leo Benatar
Donald E. Boomershine
Joan D. Ruffier
R. KirkLandon
James R. Tuerfif
Lucimarian Roberts
Robert P. Forrestal
Jack Guynn
Richard G. Cline
Robert M. Healey
J. Michael Moore
Silas Keehn
William C. Conrad
Robert H. Quenon
Janet McAfee Weakley
Robert D. Nabholz, Jr.
John A. Williams
Seymour B. Johnson
Thomas C. Melzer
James R. Bowen
Delbert W. Johnson
Gerald A. Rauenhorst
James E. Jenks
Gary H. Stern
Colleen K. Strand
Burton A. Dole, Jr.
Herman Cain
Barbara B. Grogan
Ernest L. Holloway
Sheila Griffin
Thomas M. Hoenig
Henry R. Czerwinski
Leo E. Linbeck, Jr.
Cece Smith
W. Thomas Beard, III
Judy Ley Allen
Erich Wendl
Robert D. McTeer, Jr.
Tony J. Salvaggio
James A. Vohs
Judith M. Runstad
Donald G. Phelps
William A. Hilliard
Gary G. Michael
George F. Russell, Jr.
Robert T. Parry
Patrick K. Barron
Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans
30303
35283
32231
33152
37203
70161
CHICAGO*
60690
Detroit
48231
ST. LOUIS
63166
Little Rock
Louisville
Memphis
72203
40232
38101
MINNEAPOLIS
55480
Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio
59601
64198
80217
73125
68102
75201
79999
77252
78295
SAN FRANCISCO
94120
Los Angeles
Portland
Salt Lake City
Seattle
90051
97208
84125
98124
Charles A. Cerino1
Harold J. Swart1
Ronald B. Duncan1
Walter A. Varvel1
John G. Stoides1
Donald E. Nelson1
Fred R. Herr1
James D. Hawkins1
James T. Curry m
Melvyn K. Purcell
Robert J. Musso
Roby L. Sloan1
Karl W. Ashman
Howard Wells
John P. Baumgartner
John D. Johnson
Kent M. Scott
David J. France
Harold L. Shewmaker
Sammie C.Clay
Robert Smith, lH 1
Thomas H. Robertson
John F. Moore1
E. Ronald Liggett1
Andrea P. Wolcott
Gordon Werkema1
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; East Rutherford, 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.
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 as well as 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 monthly, and each contains
citation indexes and a subject index.
of marginable OTC stocks and its list of foreign
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, the 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
The Monetary Policy and Reserve Requirements for each Handbook. For subscribers outside the
Handbook contains Regulations A, D, and Q, plus
United States, the price including additional air mail
related materials.
costs is $250 for the Service and $90 for each HandThe Securities Credit Transactions Handbook conbook. All subscription requests must be accompanied
by a check or money order payable to the Board of
tains Regulations G, T, U, and X, dealing with extensions of credit for the purchase of securities, together
Governors of the Federal Reserve System. Orders
with related statutes, Board interpretations, rulings,
should be addressed to Publications Services, mail
and staff opinions. Also included are the Board's list
stop 138, Board of Governors of the Federal Reserve
System, Washington, DC 20551.
U.S. MONETARY POLICY AND FINANCIAL MARKETS
context, examining first the evolution of Federal
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
information-gathering through daily decisionmaking
and the execution of an open market operation.
The book also places monetary policy in a broader
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, NY 10045. Checks must accompany orders and should be payable to the Federal
Reserve Bank of New York in U.S. dollars.
Publications of Interest
FEDERAL RESERVE CONSUMER CREDIT PUBLICATIONS
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects
as how the Equal Credit Opportunity Act protects
women against discrimination in their credit dealings,
how to use a credit card, and how to resolve a billing
error.
Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Lock-Ins,
A Consumer's Guide to Mortgage Refinancings, and
A Consumer's Guide to Mortgage Settlement Costs.
These booklets were prepared in conjunction with the
Federal Home Loan Bank Board and in consultation
with other federal agencies and trade and consumer
groups.
The Board also publishes the Consumer Handbook
Copies of consumer publications are available free
to Credit Protection Laws, a complete guide to conof charge from Publications Services, mail stop 138,
sumer credit protections. This forty-four-page booklet
Board of Governors of the Federal Reserve System,
explains how to shop and obtain credit, how to mainWashington, DC 20551. Multiple copies for classtain a good credit rating, and how to dispute unfair
room use are also available free of charge.
credit transactions.
A guide to
Business
Credit
A Consumer's
Guicte t o
Mortgage
Lock-Ins
(or Women,
Minorities, and
Small Businesses
jiBi\
Consumer Handbook
to Credit Protection
k Laws
@FedFRASER