Full text of Federal Reserve Bulletin : August 2001

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Volume 87 • Number 8 • August 2001

Federal Reserve

BULLETIN

Board of Governors of the Federal Reserve System, Washington, D.C.



Table of Contents
the Senate Committee on Banking, Housing,
and Urban Affairs, June 13, 2001).

501 MONETARY POLICY REPORT TO THE
CONGRESS

The weakness in the economy that emerged late
last year has become more persistent and widespread. In response, the FOMC has lowered
the target federal funds rate six times this year,
for a cumulative total reduction of 23A percentage points. A number of factors account for this
unusually steep reduction in the federal funds
rate, including the magnitude and rapidity of
the slowdown and the need to offset a stronger
dollar and lower equity prices. At midyear the
information available for the recent performance
of both the U.S. economy and some of our key
trading partners remains somewhat downbeat,
on balance. Nonetheless, a number of factors are
in place that should set the stage for stronger
growth later this year and in 2002. Moreover,
the outlook for productivity growth over the
longer run remains favorable.
528 INDUSTRIAL PRODUCTION AND CAPACITY
UTILIZATION FOR JUNE 2001

Industrial production fell 0.7 percent in June,
to 142.5 percent of its 1992 average; secondquarter production was down 5.6 percent at
an annual rate. The rate of capacity utilization
for total industry sank to 77 percent, more
than 5 percentage points below its 1967-2000
average.
531 TESTIMONY OF FEDERAL RESERVE
OFFICIALS

Roger W. Ferguson, Jr., Vice Chairman, Board
of Governors of the Federal Reserve System,
testifies on his nomination to serve a full
term on the Board and discusses the Federal
Reserve's objectives, including the importance
of transparency, keeping in mind that the central
bank must balance the need to be open and
accountable with the need to maintain an effective process of decisionmaking by the Federal
Open Market Committee (Testimony before




532 Alan Greenspan, Chairman, Board of Governors, discusses the condition of the U.S. banking
system and testifies that in recent years, we have
incorporated innovative ideas and accommodated significant change in banking and supervision. He states further that building on bank
practice, we are in the process of improving
both lending and supervisory policies that will
foster better risk management; and perhaps these
policies could also reduce the pro-cyclical
pattern of easing and tightening of bank lending and accordingly increase bank shareholder
values and economic stability (Testimony before
the Senate Committee on Banking, Housing,
and Urban Affairs, June 20, 2001).
535

ANNOUNCEMENTS

Federal Open Market Committee directive and a
decrease in the discount rate.
Interagency release of annual host state loan-todeposit ratios.
Interagency letter to the Securities and Exchange
Commission on broker-dealer exemptions.
FOMC meeting schedule for 2002.
Enforcement actions.
Availability of the Board's 87th Annual Report,
2000 and the Annual Report: Budget Review,
2001.
Changes in Board staff.
538 MINUTES OF THE FEDERAL OPEN MARKET
COMMITTEE HELD ON MAY 15, 2001
At this meeting, the Committee voted to lower
its target for the federal funds rate by 50 basis
points to 4 percent. In taking this action, the
Committee continued to believe that the risks
were weighted mainly toward conditions that

might generate economic weakness in the foreseeable future.
545 LEGAL

DEVELOPMENTS

A78 INDEX TO STATISTICAL

Various bank holding company, bank service
corporation, and bank merger orders; and pending cases.
565 MEMBERSHIP OF THE BOARD OF
GOVERNORS OF THE FEDERAL RESERVE
SYSTEM,
1913-2001

List of appointive and ex officio members.
A1 FINANCIAL AND BUSINESS

STATISTICS

These tables reflect data available as of
June 27, 2001.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A42 Domestic Nonfinancial Statistics
A50 International Statistics




A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
TABLES

A80 BOARD OF GOVERNORS AND STAFF
A82 FEDERAL OPEN MARKET COMMITTEE AND
STAFF; ADVISORY COUNCILS
A84 FEDERAL RESERVE BOARD

PUBLICATIONS

A86 MAPS OF THE FEDERAL RESERVE
A88 FEDERAL RESERVE BANKS,
AND OFFICES

SYSTEM

BRANCHES,

PUBLICATIONS COMMITTEE

Lynn S. Fox, Chair • Jennifer J. Johnson • Karen H. Johnson • Stephen R. Malphrus • J. Virgil Mattingly, Jr.
• Vincent R. Reinhart • Dolores S. Smith • Richard Spillenkothen • Richard C. Stevens • David J. Stockton

The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed
except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the Graphics Center under the direction
of Christine S. Griffith, and Publications Services supervised by Linda C. Kyles.




Monetary Policy Report to the Congress
Report submitted to the Congress on July 18, 2001,
pursuant to section 2B of the Federal Reserve Act

MONETARY POLICY AND THE
ECONOMIC OUTLOOK

When the Federal Reserve submitted its report on
monetary policy in mid-February, the Federal Open
Market Committee (FOMC) had already reduced its
target for the federal funds rate twice to counter
emerging weakness in the economy. As the year has
unfolded, the weakness has become more persistent
and widespread than had seemed likely last autumn.
The shakeout in the high-technology sector has been
especially severe, and with overall sales and profits
continuing to disappoint, businesses are curtailing
purchases of other types of capital equipment as well.
The slump in demand for capital goods has also
worked against businesses' efforts to correct the
inventory imbalances that emerged in the second half
of last year and has contributed to sizable declines in
manufacturing output this year. At the same time,
foreign economies have slowed, limiting the demand
for U.S. exports.
To foster financial conditions that will support
strengthening economic growth, the FOMC has lowered its target for the federal funds rate four times
since February, bringing the cumulative decline this
year to 23/4 percentage points. A number of factors
spurred this unusually steep reduction in the federal
funds rate. In particular, the slowdown in growth was
rapid and substantial and carried considerable risks
that the sluggish performance of the economy in the
first half of this year would persist. Among other
things, the abruptness of the slowing, by jarring
consumer and business confidence, raised the possibility of becoming increasingly self-reinforcing were
households and businesses to postpone spending
while reassessing their situations. In addition, other
financial developments, including a higher foreign
exchange value of the dollar, lower equity prices, and
tighter lending terms and standards at banks, were
tending to restrain aggregate demand and thus were
offsetting some of the influence of the lower federal
funds rate. Finally, despite some worrisome readings
early in the year, price increases remained fairly well



contained, and prospects for inflation have become
less of a concern as rates of resource utilization have
declined and energy prices have shown signs of turning down.
The information available at midyear for the recent
performance of both the U.S. economy and some of
our key trading partners remains somewhat downbeat, on balance. Moreover, with inventories still
excessive in some sectors, orders for capital goods
very soft, and the effects of lower stock prices and the
weaker job market weighing on consumers, the economy may expand only slowly, if at all, for a while
longer. Nonetheless, a number of factors are in place
that should set the stage for stronger growth later this
year and in 2002. In particular, interest rates have
declined since last fall; the lower rates have helped
businesses and households strengthen their financial
positions and should show through to aggregate
demand in coming quarters. The recently enacted tax
cuts and the apparent cresting of energy prices should
also bolster aggregate demand fairly soon. In addition, as firms at some point become more satisfied
with their inventory holdings, the cessation of liquidation will boost production and, in turn, provide a
lift to employment and incomes; a subsequent shift to
inventory accumulation in association with the projected strengthening in demand should provide additional impetus to production. Moreover, with no
apparent sign of abatement in the rapid pace of
technological innovation, the outlook for productivity
growth over the longer run remains favorable. The
efficiency gains made possible by these innovations
should spur demand for the capital equipment that
embodies the new technologies once the overall economic situation starts to improve and should support
consumption by leading to solid increases in real
incomes over time.
Even though an appreciable recovery in the growth
of economic activity by early next year seems the
most likely outcome, there is as yet no hard evidence
that this improvement is in train, and the situation
remains very uncertain. In these circumstances, the
FOMC continues to believe that the risks are
weighted toward conditions that may generate economic weakness in the foreseeable future. At the
same time, the FOMC recognizes the importance of
sustaining the environment of low inflation and well-

502

Federal Reserve Bulletin • August 2001

Selected interest rates
Percent

1999

2000

2001

NOTE. The data are daily and extend through July 12, 2001. The dates on the horizontal axis
are those of scheduled FOMC meetings and of any intermeeting policy actions.

anchored inflation expectations that enabled the Federal Reserve to react rapidly and forcefully to the
slowing in real GDP growth over the past several
quarters. When, as the FOMC expects, activity begins
to firm, the Committee will continue to ensure that
financial conditions remain consistent with holding
inflation in check, a key requirement for maximum
sustainable growth.

Monetary Policy, Financial Markets,
and the Economy over the First Half of 2001
By the time of the FOMC meeting on December 19,
2000, it had become evident that economic growth
had downshifted considerably, but the extent of that
slowing was only beginning to come into focus. At
that meeting, the FOMC concluded that the risks to
the economy in the foreseeable future had shifted to
being weighted mainly toward conditions that may
generate economic weakness and that economic and
financial developments could warrant further close
review of the stance of policy well before the next
scheduled meeting. Subsequent data indicated that
holiday retail sales had come in below expectations
and that conditions in the manufacturing sector had
deteriorated. Corporate profit forecasts had also been
marked down, and it seemed possible that the resulting decline in equity values, along with the expense
of higher energy costs, could damp future business
investment and household spending. In response, the
FOMC held a telephone conference on January 3,
2001, and decided to reduce the target federal funds
rate x/i percentage point, to 6 percent, and indicated
that the risks to the outlook remained weighted
toward economic weakness.



The timing and size of the cut in the target rate
seemed to ease somewhat the concerns of financial
market participants about the longer-term outlook for
the economy. Equity prices generally rose in January,
risk spreads on lower-rated corporate bonds narrowed significantly, and the yield curve steepened.
However, incoming data over the month revealed that
the slowing in consumer and business spending late
last year had been sizable. Furthermore, a sharp erosion in survey measures of consumer confidence, a
backup of inventories, and a steep decline in capacity
utilization posed the risk that spending could remain
depressed for some time. In light of these developments, the FOMC at its scheduled meeting on January 30 and 31 cut its target for the federal funds rate
another Vi percentage point, to 5]/2 percent, and stated
that it continued to judge the risks to be weighted
mainly toward economic weakness.
The information reviewed by the FOMC at its
meeting on March 20 suggested that economic activity continued to expand, but slowly. Although consumer spending seemed to be rising moderately and
housing had remained relatively firm, stock prices
had declined substantially in February and early
March, and reduced equity wealth and lower consumer confidence had the potential to damp household spending going forward. Moreover, manufacturing output had contracted further, as businesses
continued to work down their excess inventories and
cut back on capital equipment expenditures. In addition, economic softness abroad raised the likelihood
of a weakening in U.S. exports. Core inflation had
picked up a bit in January, but some of the increase
reflected the pass-through of a rise in energy prices
that was unlikely to continue, and the FOMC judged
that the slowdown in the growth of aggregate demand

Monetary Policy Report to the Congress

would ease inflationary pressures on labor and other
resources. Accordingly, the FOMC on March 20 lowered its target for the federal funds rate another
V2 percentage point, to 5 percent. The members also
continued to see the risks to the outlook as remaining
weighted mainly toward economic weakness. Furthermore, the FOMC recognized that in a rapidly
evolving economic situation, it would need to be alert
to the possibility that a conference call would be
desirable during the relatively long interval before
the next scheduled meeting to discuss the possible
need for a further policy adjustment.
Capital markets continued to soften in late March
and early April, in part because corporate profits and
economic activity remained quite weak. Although
equity prices and bond yields began to rise in midApril as financial market investors became more confident that a cumulative downward spiral in activity
could be avoided, reports continued to suggest flagging economic performance and risks of extended
weakness ahead. In particular, spending by consumers had leveled out and their confidence had fallen
further. The FOMC discussed economic developments in conference calls on April 11 and April 18,
deciding on the latter occasion to reduce its target for
the federal funds rate another V2 percentage point, to
41/2 percent. The Committee again indicated that it
judged the balance of risks to the outlook as weighted
toward economic weakness.
When the FOMC met on May 15, economic conditions remained quite sluggish, especially in manufacturing, where production and employment had
declined further. Although members were concerned
that some indicators of core inflation had moved up
in the early months of the year and that part of the
recent backup in longer-term interest rates may have
owed to increased inflation expectations, most saw
underlying price increases as likely to remain damped
as continued subpar growth relieved pressures on
resources. In light of the prospect of continued weakness in the economy and the significant risks to the
economic expansion, the FOMC reduced its target
for the federal funds rate an additional V2 percentage
point, to 4 percent. With the softening in aggregate
demand still of unknown persistence and dimension,
the FOMC continued to view the risks to the outlook
as weighted toward economic weakness. Still, the
FOMC recognized that it had eased policy substantially this year and that, in the absence of further
sizable adverse shocks to the economy, at future
meetings it might need to consider adopting a more
cautious approach to further policy actions.
Subsequent news on economic activity and corporate profits failed to point to a rebound. In June,



503

interest rates on longer-term Treasuries and on
higher-quality private securities declined, some risk
spreads widened, and stock prices fell as financial
market participants trimmed their expectations for
economic activity and profits. When the FOMC met
on June 26 and 27, conditions in manufacturing
appeared to have worsened still more. It also seemed
likely that slower growth abroad would restrain
demand for exports and that weakening labor markets
would hold down growth in consumer spending. In
light of these developments, but also taking into
account the cumulative 250 basis points of easing
already undertaken and the other forces likely to be
stimulating spending in the future, the FOMC lowered its target for the federal funds rate LA percentage point, to 33/4 percent, and continued to view the
risks to the outlook as weighted toward economic
weakness.
The Board of Governors of the Federal Reserve
System approved cuts in the discount rate in the first
half of the year that matched the FOMC's cuts in
the target federal funds rate. As a result, the discount
rate declined from 6 percent to 3LA percent over the
period.

Economic Projections for 2001 and 2002
The members of the Board of Governors and the
Federal Reserve Bank presidents, all of whom participate in the deliberations of the FOMC, expect economic growth to remain slow in the near term, though
most anticipate that it will pick up later this year at
least a little. The central tendency of the forecasts for
the increase in real GDP over the four quarters of
2001 spans a range of VA percent to 2 percent, and
the central tendency of the forecasts for real GDP
growth in 2002 is 3 percent to 3V4 percent. The
civilian unemployment rate, which averaged 4V2 percent in the second quarter of 2001, is expected to
move up to the area of 43A percent to 5 percent by the
end of this year. In 2002, with the economy projected
to expand at closer to its trend rate, the unemployment rate is expected to hold steady or perhaps to
edge higher. With pressures in labor and product
markets abating and with energy prices no longer
soaring, inflation is expected to be well contained
over the next year and a half.
Despite the projected increase in real GDP growth,
the uncertainty about the near-term outlook remains
considerable. This uncertainty arises not only from
the difficulty of assessing when businesses will feel
that conditions are sufficiently favorable to warrant a
pickup in capital spending but also from the difficulty

504

Federal Reserve Bulletin • August 2001

Economic projections for 2001 and 2002
Percent
Board of Governors
and Reserve Bank presidents
Indicator
Central
tendency

Range
2001
Change, fourth quarter
to fourth quarter1
Nominal GDP
Real G D P 2
PCE prices

3 'A-5
1-2
2-23/4

3'/2-4'/4
11/4-2
2-2 '/2

43/4-5

43/4-5

Average level,
fourth quarter
Civilian unemployment

2002
Change, fourth

quarter

Nominal GDP
Real G D P 2
PCE prices

4-I/4-6

3-3/2
1 1/2-3

5-51/2

l
3-3 A
P/4-21/2

Average level,
fourth quarter
Civilian unemployment
43/4-5/2

43/4-5 'A

1. Change from average for fourth quarter of previous year to average for
fourth quarter of year indicated.
2. Chain-weighted.

of gauging where businesses stand in the inventory
cycle. Nonetheless, all the FOMC participants foresee a return to solid growth by 2002. By then, the
inventory correction should have run its course, and
the monetary policy actions taken this year, as well as
the recently enacted tax reductions, should be providing appreciable support to final demand.
In part because of lower interest rates, many firms
have been able to shore up their balance sheets. And
although some lower-rated firms, especially in
telecommunications and other sectors with gloomy
near-term prospects, may continue to find it difficult
to obtain financing, businesses generally are fairly
well positioned to step up their capital spending once
the outlook for sales and profits improves. By all
accounts, technological innovation is still proceeding
rapidly, and these advances should eventually revive
high-tech investment, especially with the price of
computing power continuing to drop sharply.
In addition, consumer spending is expected to get a
boost from the tax cuts and from falling energy
prices, which should help offset the effects of the
weaker job market and the decline over the past year
in stock market wealth. Housing activity, which has
been buoyed in recent quarters by low mortgage
interest rates, is likely to remain firm into 2002.
Significant concerns remain about the foreign economic outlook and the prospects for U.S. exports.
Nevertheless, economic activity abroad is expected to



benefit from a strengthening of the U.S. economy, a
stabilization of the global high-tech sector, an easing
of oil prices, and stimulative macroeconomic policies
in some countries.
The chain-type price index for personal consumption expenditures rose 2LA percent over the four quarters of 2000, and most FOMC participants expect
inflation to remain around that rate through next year;
indeed, the central tendency of their forecasts for the
increase in this price measure is 2 percent to 2l/i percent in 2001 and VA percent to 2Vi percent in 2002.
One favorable factor in the inflation outlook is the
behavior of energy prices. Those prices have declined
recently after having increased rapidly in the past
couple of years, and prospects are good that they
could stabilize or even fall further in coming quarters. In addition to their direct effects, lower energy
prices should tend to limit increases in other prices by
reducing input costs for a wide range of energyintensive goods and services and by helping damp
inflation expectations. More broadly, the competitive
conditions that have restricted businesses' ability to
raise prices in recent years are likely to persist. And
although labor costs could come under upward pressure as wages tend to catch up to previous increases
in productivity, the slackening in resource utilization
this year is expected to contribute to reduced inflation
pressures going forward.

ECONOMIC AND FINANCIAL DEVELOPMENTS
IN 2001
Economic growth remained very slow in the first half
of 2001 after having downshifted in the second half
of 2000. Real gross domestic product rose at an
annual rate of just VA percent in the first quarter,
about the same as in the fourth quarter, and appears
to have posted at best a meager gain in the second
quarter. Businesses have been working to correct the
inventory imbalances that emerged in the second half
of last year, which has led to sizable declines in
manufacturing output, and capital spending has weakened appreciably. In contrast, household spending—
especially for motor vehicles and houses—has held
up well. Employment increased only modestly over
the first three months of the year and turned down in
the spring; the unemployment rate in June stood at
4!/2 percent, Vi percentage point higher than in the
fourth quarter of last year.
The inflation news early this year was not very
favorable, as energy prices continued to soar and as
measures of core inflation—which exclude food and
energy—registered some pickup. More recently,

Monetary Policy Report to the Congress

Consumer Spending

Change in real GDP
Percent, annual rate

—

1995

1996

1997

1998

1999

2000

6

2001

NOTE. Here and in the subsequent charts, except as noted, change is measured to the final quarter of the indicated period from the final quarter of the
preceding period.

however, energy prices have moved lower, and the
monthly readings on core inflation have returned to
more moderate rates. Moreover, apart from energy,
prices at earlier stages of processing have been quiescent this year.

The Household

505

Sector

Growth in household spending has slowed noticeably
from the rapid pace of the past few years. Still, it was
fairly well maintained in the first half of 2001 despite
the weaker tenor of income, wealth, and consumer
confidence, and the personal saving rate declined a
bit further. A greater number of households encountered problems servicing debt, but widespread difficulties or restrictions on the availability of credit did
not emerge.

Real consumer spending grew at an annual rate of
3'/2 percent in the first quarter. Some of the increase
reflected a rebound in purchases of light motor vehicles, which were boosted by a substantial expansion
of incentives and rose to just a tad below the record
pace of 2000 as a whole. In addition, outlays for
non-auto goods posted a solid gain, and spending on
services rose modestly despite a weather-related drop
in outlays for energy services. In the second quarter,
however, the rise in consumer spending seems to
have lessened as sales of light motor vehicles dropped
a bit, on average, and purchases of other goods
apparently did not grow as fast in real terms as they
had in the first quarter.
The rise in real consumption so far this year has
been considerably smaller than the outsized gains in
the second half of the 1990s and into 2000. But the
increase in spending still outstripped the growth in
real disposable personal income (DPI), which has
been restrained this year by further big increases in
consumer energy prices and by the deterioration in
the job market; between the fourth quarter of 2000
and May, real DPI increased just about 2 percent at
an annual rate, well below the average pace of the
preceding few years. In addition, the net worth of
households fell again in the first quarter, to a level
8 percent below the high reached in the first quarter
of 2000. On net, the ratio of household net worth to
DPI has returned to about the level reached in 1997,
significantly below the recent peak but still high by
historical standards. In addition, consumer sentiment
indexes, which had risen to extraordinary levels in
the late 1990s and remained there through last fall,
fell sharply around the turn of the year. However,
these indexes have not deteriorated further, on net,

Change in PCE chain-type price index
Change in real income and consumption
Percent, annual rate
Percent, annual rate
•

Total

•

E x c l u d i n g f o o d and e n e r g y

D

D i s p o s a b l e personal i n c o m e

•

Personal c o n s u m p t i o n expenditures

Qi

QI

1995

1996

1997

1998

1999

2000

2001

NOTE. Data are for personal consumption expenditures (PCE).




1995

1996

1997

1998

1999

2000

2001

—

6

—

4

506

Federal Reserve Bulletin • August 2001

since the winter and are still at reasonably favorable
levels when compared with the readings for the pre1997 period.
Rising household wealth almost certainly was a
key factor behind the surge in consumer spending
between the mid-1990s and last year, and thus helps
to explain the sharp fall in the personal saving rate
over that period. The saving rate has continued to fall
this year—from -0.7 percent in the fourth quarter of
2000 to -1.1 percent in May—even though the boost
to spending growth from the earlier run-up in stock
prices has likely run its course and the effects of
lower wealth should be starting to feed through to
spending. The apparent decline in the saving rate
may simply reflect noisiness in the data or a slower
response of spending to wealth than average historical experience might suggest. In addition, consumers
probably base their spending decisions on income
prospects over a longer time span than just a few
quarters. Thus, to the extent that consumers do not
expect the current sluggishness in real income growth
to persist, the tendency to maintain spending for a
time by dipping into savings or by borrowing may

Wealth and saving

have offset the effect of the decline in wealth on the
saving rate.
Residential Investment
Housing activity remained buoyant in the first half
of this year as lower mortgage interest rates appear
to have offset the restraint from smaller gains in
employment and income and from lower levels of
wealth. In the single-family sector, starts averaged an
annual rate of 1.28 million units over the first five
months of the year—4 percent greater than the hefty
pace for 2000 as a whole. Sales of new and existing
homes strengthened noticeably around the turn of
the year and were near record levels in March; they
fell back in April but reversed some of that drop in
May. Inventories of new homes for sale are exceptionally low; builders' backlogs are sizable; and,
according to the Michigan survey, consumers' assessments of homebuying conditions remain favorable,
mainly because of perceptions that mortgage rates are
low.
Likely because of the sustained strength of housing
demand, home prices have continued to rise faster
than overall inflation, although the various measures
that attempt to control for shifts in the regional composition of sales and in the characteristics of houses
sold provide differing signals on the magnitude of the
price increases. Notably, over the year ending in the
first quarter, the constant-quality price index for new
homes rose 4 percent, while the repeat-sales price
index for existing homes was up nearly 9 percent.
Despite the higher prices, the share of income
required to finance a home purchase—one measure
of affordability—has fallen in recent quarters as mortPrivate housing starts
Millions of units, annual rate

Multifamily

NOTE. The data extend through 2001:Q1. The wealth-to-income ratio is the
ratio of household net worth to disposable personal income.




NOTE. The data extend through 2001 :Q2; the data for that quarter are the
averages for April and May.

Monetary Policy Report to the Congress

Mortgage rates

507

Household debt service burden
Percent

—

8.5

—

8.0

—

7.5

F i x e d rate

f

—

\

- A /

7.0

Adjustable rate

/

/

\

—

6.5

11i

r*!

i i i i i i i I i i
1999

I L I

I

I

2000

I I !

6.0

i I i i i i i I
2001

NOTE. The data, which are monthly and extend through June 2001, are
contract rates on thirty-year mortgages from the Federal Home Loan Mortgage
Corporation.

gage rates have dropped back after last year's bulge,
and that share currently is about as low as it has been
at any time in the past decade. Rates on thirty-year
conventional fixed-rate loans now stand around
7!/4 percent, and ARM rates are at their lowest levels
in a couple of years.
In the multifamily sector, housing starts averaged
343,000 units at an annual rate over the first five
months of the year, matching the robust pace that has
been evident since 1997. Moreover, conditions in the
market for multifamily housing continue to be conducive to new construction. The vacancy rate for multifamily rental units in the first quarter held near its
low year-earlier level, and rents and property values
continued to rise rapidly.

NOTE. The data are quarterly and extend through 2001 :Q1. Debt burden is an
estimate of the ratio of debt payments to disposable income; debt payments
consist of the estimated required payments on outstanding mortgage and consumer debt.

The household debt service burden—the ratio of
minimum scheduled payments on mortgage and consumer debt to disposable personal income—rose to
more than 14 percent at the end of the first quarter, a
twenty-year high, and available data suggest a similar
reading for the second quarter. In part because of the
elevated debt burden, some measures of household
loan performance have deteriorated a bit in recent
quarters. The delinquency rate on home mortgage
loans has edged up but remains low, while the delinquency rate on credit card loans has risen noticeably
and is in the middle part of its range over the past
decade. Personal bankruptcies jumped to record levels in the spring, but some of the spurt was probably
the result of a rush to file before Congress passed
bankruptcy reform legislation.

Household Finance
Delinquency rates on household loans

The growth of household debt is estimated to have
slowed somewhat in the first half of this year to a still
fairly hefty IV2 percent annual rate—about a percentage point below its average pace over the previous
two years. Households have increased both their
home mortgage debt and their consumer credit (debt
not secured by real estate) substantially this year,
although in both cases the growth has moderated a bit
recently. The relatively low mortgage interest rates
have boosted mortgage borrowing both by stimulating home purchases and by making it attractive to
refinance existing mortgages and extract some of the
buildup in home equity. The rapid growth in consumer credit has been concentrated in credit card
debt, perhaps reflecting households' efforts to sustain
their consumption in the face of weaker income
growth.



Percent

1988

1990

1992

1994

1996

1998

2000

NOTE. The data are quarterly and extend through 2001 :Q1. Data on credit
card delinquencies are from bank Call Reports; data on auto loan delinquencies
are from the Big Three automakers; data on mortgage delinquencies are from
the Mortgage Bankers Association.

508

Federal Reserve Bulletin • August 2001

Net percentage of large commercial banks tightening
standards for consumer loans

Fixed Investment
Percent

1996

1997

1998

1999

2000

2001

NOTE. The data extend through May 2001 and are based on the Federal
Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices,
which is generally conducted four times per year. Net percentage is percentage
reporting a tightening less percentage reporting an easing.

Lenders have tightened up somewhat in response
to the deterioration of household financial conditions.
In the May Senior Loan Officer Opinion Survey on
Bank Lending Practices, about a fifth of the banks
indicated that they had tightened the standards for
approving applications for consumer loans over the
preceding three months, and about a fourth said that
they had tightened the terms on loans they are willing
to make, substantial increases from the November
survey. Of those that had tightened, most cited actual
or anticipated increases in delinquency rates as a
reason.
The Business Sector
The boom in capital spending that has helped fuel the
economic expansion came to a halt late last year.
After having risen at double-digit rates over the preceding five years, real business fixed investment flattened out in the fourth quarter of 2000 and rose only
a little in the first quarter of 2001. Demand for capital
equipment has slackened appreciably, reflecting the
sluggish economy, sharply lower corporate profits
and cash flow, earlier overinvestment in some sectors, and tight financing conditions facing some firms.
In addition, inventory investment fell substantially in
the first quarter as businesses moved to address the
overhangs that began to develop late last year. With
investment spending weakening, businesses have
cut back on new borrowing. Following the drop in
longer-term interest rates in the last few months of
2000, credit demands have been concentrated in
longer-term markets, though cautious investors have
required high spreads from marginal borrowers.



Real spending on equipment and software (E&S)
began to soften in the second half of last year, and
it posted small declines in both the fourth quarter
of 2000 and the first quarter of 2001. Much of the
weakness in the first quarter was in spending on
high-tech equipment and software; such spending,
which now accounts for about half of E&S outlays
when measured in nominal terms, declined at an
annual rate of about 12 percent in real terms—the
first real quarterly drop since the 1990 recession. An
especially sharp decrease in outlays for communications equipment reflected the excess capacity that had
emerged as a result of the earlier surge in spending,
the subsequent re-evaluation of profitability, and the
accompanying financing difficulties faced by some
firms. In addition, real spending on computers and
peripheral equipment, which rose more than 40 percent per year in the second half of the 1990s, showed
little growth, on net, between the third quarter of
2000 and the first quarter of 2001. The leveling in
real computer spending reportedly reflects some
stretching out of businesses' replacement cycles for
personal computers as well as a reduced demand for
servers. Outside the high-tech area, spending rose in
the first quarter as purchases of motor vehicles
reversed some of the decline recorded over the second half of 2000 and as outlays for industrial equipment picked up after having been flat in the fourth
quarter.
Real E&S spending likely dropped further in the
second quarter. In addition to the ongoing contraction
in outlays on high-tech equipment, the incoming data
for orders and shipments point to a decline in investment in non-high-tech equipment, largely reflecting
the weakness in the manufacturing sector this year.
Change in real business fixed investment
Ui J

Percent, annual rate
•

Structures

•

Equipment and s o f t w a r e
—

Qi

1995

1996

1997

1998

1999

2000

2001

20

Monetary Policy Report to the Congress

Outlays on nonresidential construction posted
another sizable advance in early 2001 after having
expanded nearly 13 percent in real terms in 2000, but
the incoming monthly construction data imply a sharp
retrenchment in the second quarter. The downturn in
spending comes on the heels of an increase in
vacancy rates for office and industrial space in many
cities. Moreover, while financing generally remains
available for projects with viable tenants, lenders are
now showing greater caution. Not surprisingly, one
bright spot is the energy sector, where expenditures
for drilling and mining have been on a steep uptrend
since early 1999 (mainly because of increased exploration for natural gas) and the construction of facilities for electric power generation remains very strong.

509

Firms outside the motor vehicles industry also
moved aggressively to address inventory imbalances
in the first half of the year, and this showed through
to manufacturing output, which, excluding motor
vehicles, fell at an annual rate of IV2 percent over this
period. These production adjustments—along with a
sharp reduction in the flow of imports—contributed
to a small decline in real non-auto stocks in the first
quarter, and book-value data for the manufacturing
and trade sector point to a further decrease, on net, in
April and May. As of May, stocks generally seemed
in line with sales at retail trade establishments, but
there were still some notable overhangs in wholesale
trade and especially in manufacturing, where
inventory-shipments ratios for producers of computers and electronic products, primary and fabricated
metals, and chemicals remained very high.

Inventory Investment
A sharp reduction in the pace of inventory investment
was a major damping influence on real GDP growth
in the first quarter of 2001. The swing in real nonfarm
inventory investment from an accumulation of
$51 billion at an annual rate in the fourth quarter of
2000 to a liquidation of $25 billion in the first quarter
of 2001 subtracted 3 percentage points from the
growth in real GDP in the first quarter. Nearly half of
the negative contribution to GDP growth came from
the motor vehicle sector, where a sizable cut in
assemblies (added to the reduction already in place in
the fourth quarter) brought the overall days' supply
down to comfortable levels by the end of the first
quarter. A rise in truck assemblies early in the second
quarter led to some backup of inventories in that
segment of the market, but truck stocks were back in
an acceptable range by June; automobile assemblies
were up only a little in the second quarter, and stocks
remained lean.

Business Finance
The economic profits of U.S. corporations fell at a
19 percent annual rate in the first quarter after a
similar decline in the fourth quarter of 2000. As a
result, the ratio of profits to GDP declined 1 percentage point over the two quarters, to 8.5 percent;
the ratio of the profits of nonfinancial corporations to sector output fell 2 percentage points over
the interval, to 10 percent. Investment spending has
declined by more than profits, however, reducing
somewhat the still-elevated need of nonfinancial
corporations for external funds to finance capital
expenditures. Corporations have husbanded their
increasingly scarce internal funds by cutting back on
cash-financed mergers and equity repurchases. While
Before-tax profits of nonfinancial corporations
as a percent of sector GDP
Percent

Change in real nonfarm business inventories
Billions of chained 1996 dollars, annual rate

llllll,

I

1 I I 1 I 11 I I I I I I 1 I I I 11 1 11 11 1 I

•

—

25

1977

1980

1983

1986

1989

1992

1995

1998

2001

Ql

1995

1996




1997

1998

1999

2000

2001

NOTE. Data extend through 2001:Q1. Profits are from domestic operations
of nonfinancial corporations, with inventory valuation and capital consumption
adjustments, divided by gross domestic product of nonfinancial corporate sector.

510

Federal Reserve Bulletin • August 2001

Financing gap and net equity retirement
at nonfarm nonfinancial corporations

Spread of low-tier CP rate over high-tier CP rate
Basis points
Billions of dollars

125

N e t equity retirement

—

250

—

200

Financing gap

—

100

—

75

—

50

- —

25

iJ
1997

NOTE. The data through 2 0 0 0 are annual; the final observation is for 2001:Q1
and is at an annual rate. The financing gap is the difference between capital
expenditures and internally generated funds. Net equity retirement is the difference between equity retired through share repurchases, domestic cash-financed
mergers, or foreign takeovers of U.S. firms and equity issued in public or private
markets, including funds invested by venture capital partnerships.

equity retirements have therefore fallen, so has gross
equity issuance, though by less. Inflows of venture
equity capital, in particular, have been reduced substantially. Businesses have met their financing needs
by borrowing heavily in the bond market while paying down both commercial and industrial (C&I) loans
at banks and commercial paper. In total, after having
increased 9V2 percent last year, the debt of nonfinancial businesses rose at a 5 percent annual rate in the
first quarter of this year and is estimated to have risen
at about the same pace in the second quarter.
The decline in C&I loans and commercial paper
owes, in part, to less hospitable conditions in shorterterm funding markets. The commercial paper market
was rattled in mid-January by the defaults of two
large California utilities. Commercial paper is issued

1998

1999

2000

2001

NOTE. The data are daily and extend through July 12, 2001. The series shown
is the difference between the rate on A2/P2 nonfinancial commercial paper and
the A A rate.

only by highly rated corporations, and default is
extremely rare. The defaults, along with some downgrades, led investors in commercial paper to pull
back and reevaluate the riskiness of issuers. For a
while, issuance by all but top-rated names became
very difficult and quality spreads widened significantly, pushing some issuers into the shortest maturities and inducing others to exit the market entirely.
As a consequence, the amount of commercial paper
outstanding plummeted. In the second quarter, risk
spreads returned to more typical levels and the runoff
moderated. By the end of June, the amount of nonfinancial commercial paper outstanding was nearly
30 percent below its level at the end of 2000, with
many firms still not having returned to the market.
Even though banks' C&I loans were boosted in
January and February by borrowers substituting away
Net percentage of domestic banks tightening standards
for commercial and industrial loans, by size of borrower

Major components of net business financing

Percent
Billions of dollars

O Commercial paper

Sum of components
—

H Bonds
•

500

Bank loans

1991
1999

2000

2001

NOTE. Seasonally adjusted annual rate for nonfarm nonfinancial corporate
businesses. The data for 2001 :Q2 are estimated.




1993

1995

1997

1999

2001

NOTE. The data are based on the Federal Reserve's Senior Loan Officer
Opinion Survey on Bank Lending Practices, which is generally conducted four
times per year. The data extend through May 2001. Small firms are those with
annual sales of less than $ 5 0 million.

Monetary Policy Report to the Congress

from the commercial paper market, loans declined,
on net, over the first half of the year, in part because
borrowers paid down their bank loans with proceeds
from bond issues. Many banks reported on the Federal Reserve's Bank Lending Practices surveys this
year that they had tightened standards and terms—
including the premiums charged on riskier loans, the
cost of credit lines, and loan covenants—on C&I
loans. Loan officers cited a worsened economic outlook, industry-specific problems, and a reduced tolerance for risk as the reasons for having tightened.
Despite these adjustments to banks' lending stance,
credit appears to remain amply available for sound
borrowers, and recent surveys of small businesses
indicate that they have not found credit significantly
more difficult to obtain.
Meanwhile, the issuance of corporate bonds this
year has proceeded at about double the pace of the
preceding two years. With the yields on high-grade
bonds back down to their levels in the first half of
1999 and with futures quotes suggesting interest rates
will be rising next year, corporations apparently
judged it to be a relatively opportune time to issue.
Although investors remain somewhat selective, they
have been willing to absorb the large volume of
issuance as they have become more confident that the
economy would recover and a prolonged disruption
to earnings would be avoided. The heavy pace of
issuance has been supported, in part, by inflows into
bond mutual funds, which may have come at the
expense of equity funds.
The flows are forthcoming at relatively high risk
spreads, however. Spreads of most grades of corporate debt relative to rates on swaps have fallen a little
this year, but spreads remain unusually high for lower
investment-grade and speculative-grade credits. The
Net interest payments of nonfinancial corporations
relative to cash flow
Percent

NOTE. The data are quarterly and extend through 2001 :Q1.




511

Liabilities of failed businesses
as a proportion of total liabilities

Nonfinancial

1991

firms

1993

1995

1997

1999

2001

NOTE. Annual average. Value for June 2001 is a twelve-month trailing
average.
SOURCE. Dun & Bradstreet.

elevated spreads reflect the deterioration in business
credit quality that has occurred as the economy has
slowed. While declines in interest rates have held
aggregate interest expense at a relatively low percentage of cash flow, many individual firms are feeling
the pinch of decreases in earnings. Over the twelve
months ending in May, 11 percent of speculativegrade bonds, by dollar volume, have defaulted—the
highest percentage since 1991 and a substantial jump
from 1998, when less than 2 percent defaulted. This
deterioration reflects not only the unusually large
defaults by the California utilities, but also stress in
the telecommunications sector and elsewhere. However, some other measures of credit performance
have shown a more moderate worsening. The ratio
of the liabilities of failed businesses to those of all
nonfinancial businesses and the delinquency rate on
C&I loans at banks have risen noticeably from their
lows in 1998, but both remain well below levels
posted in the early 1990s.
Commercial mortgage debt increased at about an
83/4 percent annual rate in the first half of this year,
and the issuance of commercial-mortgage-backed
securities (CMBS) maintained its robust pace of the
past several years. While spreads of the yields on
investment- and speculative-grade CMBS over swap
rates have changed little this year, significant fractions of banks reported on the Bank Lending Practices survey that they have tightened terms and standards on commercial real estate loans. Although the
delinquency rates on CMBS and commercial real
estate loans at banks edged up in the first quarter,
they remained near record lows. Nevertheless, those
commercial banks that reported taking a more cautious approach toward commercial real estate lending

512

Federal Reserve Bulletin • August 2001

stated that they are doing so, in part, because of a less

National saving as a percent of nominal GDP

favorable economic outlook in general and a worsening of the outlook for commercial real estate.
The Government

Percent

Sector
E x c l u d i n g federal s a v i n g

The fiscal 2001 surplus in the federal unified budget
is likely to be smaller than the surplus in fiscal 2000
because of the slower growth in the economy and the
recently enacted tax legislation. Nonetheless, the
unified surplus will remain large, and the paydown
of the federal debt is continuing at a rapid clip. As a
consequence, the Treasury has taken a number of
steps to preserve liquidity in a shrinking market. The
weaker economy is also reducing revenues at the
state and local level, but these governments remain in
reasonably good fiscal shape overall and are taking
advantage of historically low interest rates to refund
existing debt and to issue new debt.
Federal Government
The fiscal 2001 surplus in the federal government's
unified budget is likely to come in below the fiscal
2000 surplus of $236 billion. Over the first eight
months of the fiscal year—October to May—the unified budget recorded a surplus of $137 billion,
$16 billion higher than during the comparable period
last year. But over the balance of the fiscal year,
receipts will continue to be restrained by this year's
slow pace of economic growth and the associated
decline in corporate profits. Receipts will also be
reduced significantly over the next few months by the
payout of tax rebates and the shift of some corporate
payments into fiscal 2002, provisions included in the
Economic Growth and Tax Relief Reconciliation Act
of 2001.
Federal saving, which is basically the unified budget surplus adjusted to conform to the accounting
practices followed in the national income and product
accounts (NIPA), has risen dramatically since hitting
a low of -3VI percent of GDP in 1992 and stood at
33/4 percent of GDP in the first quarter—a swing of
more than 7 percentage points. Reflecting the high
level of federal saving, national saving, which comprises saving by households, businesses, and governments, has been running at a higher rate since the late
1990s than it did over most of the preceding decade,
even as the personal saving rate has plummeted. The
deeper pool of national saving, along with large
inflows of foreign capital, has provided resources for
the technology-driven boom in domestic investment
in recent years.



Total

1985

1997

NOTE. The data extend through 2001:Q1. National saving comprises the
gross saving of households, businesses, and governments.

Federal receipts in the first eight months of the
current fiscal year were just 4Vi percent higher than
during the first eight months of fiscal 2000—a much
smaller gain than those posted, on average, over the
preceding several years. Much of the slowing was in
corporate receipts, which dropped below year-earlier
levels, reflecting the recent deterioration in profits. In
addition, individual income tax payments rose less
rapidly than over the preceding few years, mainly
because of slower growth in withheld tax payments.
This spring's nonwithheld payments of individual
taxes, which are largely payments on the previous
year's liability, were relatively strong. Indeed,
although there was no appreciable "April surprise"
this year—that is, these payments were about in line
with expectations—liabilities again appear to have
risen faster than the NIPA tax base in 2000. One
factor that has lifted liabilities relative to income in
recent years is that rising levels of income and a
changing distribution have shifted more taxpayers
into higher tax brackets. Higher capital gains realizations also have helped raise liabilities relative to
the NIPA tax base over this period. (Capital gains
are not included in the NIPA income measure, which,
by design, includes only income from current
production.)
The faster growth in outlays that emerged in fiscal
2000 has extended into fiscal 2001. Smoothing
through some timing anomalies at the start of the
fiscal year, nominal spending during the first eight
months of fiscal 2001 was more than 4 percent higher
than during the same period last year; excluding the
sizable drop in net interest outlays that has accompanied the paydown of the federal debt, the increase in
spending so far this year was nearly 6 percent. Spending in the past couple of years has been boosted by

Monetary Policy Report to the Congress

sizable increases in discretionary appropriations as
well as by faster growth in outlays for the major
health programs. The especially rapid increase in
Medicaid outlays reflects the higher cost and utilization of medical care (including prescription drugs),
growing enrollments, and a rise in the share of
expenses picked up by the federal government. Outlays for Medicare have been lifted, in part, by the
higher reimbursements to providers that were enacted
last year.
Real federal expenditures for consumption and
gross investment, the part of government spending
that is included in GDP, rose at a 5 percent annual
rate in the first quarter. Over the past couple of years,
real nondefense purchases have remained on the
moderate uptrend that has been evident since the
mid-1990s, while real defense purchases have started
to rise slowly after having bottomed out in the late
1990s.
The Treasury has used the substantial federal budget surpluses to pay down its debt further. At the end
of June, the outstanding Treasury debt held by the
public had fallen nearly $600 billion, or 15 percent,
from its peak in 1997. Relative to nominal GDP,
publicly held debt has dropped from nearly 50 percent in the mid-1990s to below 33 percent in the first
quarter, the lowest it has been since 1984.
Declines in outstanding federal debt and the associated reductions in the sizes and frequency of auctions
of new issues have diminished the liquidity of the
Treasury market over the past few years. Bid-asked
spreads are somewhat wider, quote sizes are smaller,
and the difference between yields on seasoned versus
most-recently issued securities has increased. In part,
however, these developments may also reflect a more
cautious attitude among securities dealers following
the market turmoil in the fall of 1998.
The Treasury has taken a number of steps to limit
the deterioration in the liquidity of its securities. In
recent years, it has concentrated its issuance into
fewer securities, so that the auction sizes of the
remaining securities are larger. Last year, in order to
enable issuance of a larger volume of new securities,
the Treasury began buying back less-liquid older
securities, and it also made every second auction of
its 5- and 10-year notes and 30-year bond a reopening
of the previously issued security. In February, the
Treasury put limits on the noncompetitive bids that
foreign central banks and governmental monetary
entities may make, so as to leave a larger and more
predictable pool of securities available for competitive bidding, helping to maintain the liquidity and
efficiency of the market. In May, the Treasury
announced that it would begin issuing Treasury bills



513

with a four-week maturity to provide it with greater
flexibility and cost efficiency in managing its cash
balances, which, in part because new securities are
now issued less frequently, have become more volatile. Finally, also in May, the Treasury announced it
would in the next few months seek public comment
on a plan to ease the "35 percent rule," which limits
the bidding at auctions by those holding claims on
large amounts of an issue. With reopenings increasingly being used to maintain liquidity in individual
issues, this rule was constraining many potential bidders. As discussed below, the reduced issuance of
Treasury securities has also led the Federal Reserve
to modify its procedures for acquiring such securities
and to study possible future steps for its portfolio.
In early 2000, as investors focused on the possibility that Treasury securities were going to become
increasingly scarce, they became willing to pay a
premium for longer-dated securities, pushing down
their yields. However, these premiums appear to
have largely unwound later in the year as market
participants made adjustments to the new environment. These adjustments include the substitution of
alternative instruments for hedging and pricing, such
as interest rate swaps, prominent high-grade corporate bonds, and securities issued by governmentsponsored enterprises (GSEs). To benefit from adjustments by market participants, in 1998, Fannie Mae
and Freddie Mac initiated programs to issue securities that share some characteristics with Treasury
securities, such as regular issuance calendars and
large issue sizes; in the first half of this year they
issued $88 billion of coupon securities and $502 billion of bills under these programs. The GSEs have
also this year begun buying back older securities to
boost the size of their new issues. Nevertheless, the
market for Treasury securities remains considerably
more liquid than markets for GSE and other fixedincome securities.

State and Local Governments
State and local governments saw an enormous
improvement in their budget positions between the
mid-1990s and last year as revenues soared and
spending generally was held in check; accordingly,
these governments were able both to lower taxes and
to make substantial allocations to reserve funds. More
recently, however, revenue growth has slowed in
many states, and reports of fiscal strains have
increased. Nonetheless, the sector remains in relatively good fiscal shape overall, and most governments facing revenue shortfalls have managed to

514

Federal Reserve Bulletin • August 2001

adopt balanced budgets for fiscal 2002 with only
minor adjustments to taxes and spending.
Real consumption and investment spending by
state and local governments rose at nearly a 5 percent
annual rate in the first quarter and apparently posted a
sizable increase in the second quarter as well. Much
of the strength this year has been in construction
spending, which has rebounded sharply after a
reported decline in 2000 that was hard to reconcile
with the sector's ongoing infrastructure needs and the
good financial condition of most governments. Hiring also remained fairly brisk during the first half of
the year; on average, employment rose 30,000 per
month, about the same as the average monthly
increase over the preceding three years.
Although interest rates on municipal debt have
edged up this year, they remain low by historical
standards. State and local governments have taken
advantage of the low interest rates to refund existing
debt and to raise new capital. Credit quality has
remained quite high in the municipal sector even as
tax receipts have softened, with credit upgrades outpacing downgrades in the first half of this year. Most
notable among the downgrades was that of California's general obligation bonds. Standard and Poor's
lowered California's debt two notches from AA to
A+, citing the financial pressures from the electricity
crisis and the likely adverse effects of the crisis on
the state's economy.

The External Sector
The deficits in U.S. external balances narrowed
sharply in the first quarter of this year, largely
because of a smaller deficit in trade in goods and
services. Most of the financial flows into the United
States continued to come from private foreign
sources.
Trade and Current Account
After widening continuously during the past four
years, the deficits in U.S. external balances narrowed
in the first quarter of 2001. The current account
deficit in the first quarter was $438 billion at an
annual rate, or 4.3 percent of GDP, compared with
$465 billion in the fourth quarter of 2000. Most of the
reduction of the current account deficit can be traced
to changes in U.S. trade in goods and services;
the trade deficit narrowed from an annual rate of
$401 billion in the fourth quarter of 2000 to $380 billion in the first quarter of this year. The trade deficit



U.S. current account
1
Billions of dollars, annual rate

+

0

1995

1996

1997

1998

1999

2000

—

100

—

200

—

300

—

400

2001

in April continued at about the same pace. Net investment income payments were a bit less in the first
quarter than the average for last year primarily
because of a sizable decrease in earnings by U.S.
affiliates of foreign firms.
As U.S. economic growth slowed in the second
half of last year and early this year, real imports of
goods and services, which had grown very rapidly in
the first three quarters of 2000, expanded more slowly
in the fourth quarter and then contracted 5 percent at
an annual rate in the first quarter. The largest declines
were in high-tech products (computers, semiconductors, and telecommunications equipment) and automotive products. In contrast, imports of petroleum
and petroleum products increased moderately. A temporary surge in the price of imported natural gas
pushed the increase of the average price of non-oil
imports above an annual rate of 1 percent in the first
quarter, slightly higher than the rate of increase
recorded in 2000.
U.S. real exports were hit by slower growth abroad,
the strength of the dollar, and plunging global
demand for high-tech products. Real exports of goods
and services, which had grown strongly in the first
three quarters of 2000, fell 6V2 percent at an annual
rate in the fourth quarter of last year and declined
another 1 percent in the first quarter of this year. The
largest declines in both quarters were in high-tech
capital goods and automotive products (primarily in
intra-firm trade with Canada). By market destination,
the largest increases in U.S. goods exports during the
first three quarters of 2000 had been to Mexico and
countries in Asia; the recent declines were mainly in
exports to Asia and Latin America. In contrast, goods
exports to Western Europe increased steadily
throughout the entire period. About 45 percent of
U.S. goods exports in the first quarter of 2001 were

Monetary Policy Report to the Congress

U.S. international securities transactions

Change in real imports and exports of goods and services
Percent, annual rate

—

Exports

mrnm
Ql
1995

1996

1997

1998

1999

2000

20

•

N e t foreign purchases o f U . S . b o n d s

H

N e t foreign purchases of U . S . equities

15
10

I 1

2001

NOTE. Change for the half-year indicated is measured from the preceding
half-year, and the change for 2001 :Q1 is from 2000:Q4. Imports and exports for
each half-year are the average of the levels for component quarters.

capital equipment; 20 percent were industrial supplies; and 5 to 10 percent each were agricultural,
automotive, consumer, and other goods.
After increasing through much of 2000, the spot
price of West Texas intermediate (WTI) crude oil
reached a peak above $37 per barrel in September,
the highest level since the Gulf War. As world economic growth slowed in the latter part of 2000, oil
price declines reversed much of the year's price gain.
In response, OPEC reduced its official production
targets in January of this year and again in March. As
a result, oil prices have remained relatively high in
2001 despite weaker global economic growth and a
substantial increase in U.S. oil inventories. Oil prices
have also been elevated by the volatility of Iraqi oil
exports arising from tense relations between Iraq
and the United Nations. During the first six months of
this year, the spot price of WTI has fluctuated, with
only brief exceptions, between $27 and $30 per
barrel.

Financial Account
In the first quarter of 2001, as was the case in 2000 as
a whole, nearly all of the net financial flows into the
United States came from private foreign sources.
Foreign official inflows were less than $5 billion and
were composed primarily of the reinvestment of
accumulated interest earnings. Reported foreign
exchange intervention purchases of dollars were
modest.
Inflows arising from private foreign purchases of
U.S. securities accelerated further in the first quarter
and are on a pace to exceed last year's record. All of
the pickup is attributable to larger net foreign pur


Billions of dollars
Private f o r e i g n p u r c h a s e s o f U . S . s e c u r i t i e s

I [ Imports
•

515

Private U . S . p u r c h a s e s o f f o r e i g n s e c u r i t i e s
•

N e t U . S . purchases of foreign bonds

H

N e t U . S . purchases of foreign equities

125

100
75

50

25
+
0

1999

2000

SOURCE. Department of Commerce, Survey of Current

2001
Business.

chases of U.S. bonds, as foreign purchases of both
corporate and agency bonds accelerated and private
foreign sales of Treasuries paused. Foreign purchases
of U.S. equities are only slightly below their 2000
pace despite the apparent decline in expected returns
to holding U.S. equities.
The pace at which U.S. residents acquired foreign
securities changed little between the second half
of last year and the first quarter of this year. As
in previous years, most of the foreign securities
acquired were equities.
Net financial inflows associated with direct investment slowed a good bit in the first quarter, as there
were significantly fewer large foreign takeovers of
U.S. firms and U.S. direct investment abroad
remained robust.

The Labor Market
Labor demand weakened in the first half of 2001,
especially in manufacturing, and the unemployment
rate rose. Increases in hourly compensation have

516

Federal Reserve Bulletin • August 2001

continued to trend up in recent quarters, while measured labor productivity has been depressed by the
slower growth of output.

Measures of labor utilization
Percent

Employment and Unemployment
After having risen an average of 149,000 per month
in 2000, private payroll employment increased an
average of only 63,000 per month in the first quarter
of 2001, and it declined an average of 117,000 per
month in the second quarter. The unemployment rate
moved up over the first half of the year and in June
stood at 4Vi percent, Vi percentage point higher than
in the fourth quarter of last year.
Much of the weakness in employment in the first
half of the year was in the manufacturing sector,
where job losses averaged 78,000 per month in the
first quarter and 116,000 per month in the second
quarter. Since last July, manufacturing employment
has fallen nearly 800,000. Factory job losses were
widespread in the first half of the year, with some of
the biggest cutbacks at industries struggling with
sizable inventory overhangs, including metals and
industrial and electronic equipment. The weakness
in manufacturing also cut into employment at helpsupply firms and at wholesale trade establishments.
Apart from manufacturing and the closely related
help-supply and wholesale trade industries, employment growth held up fairly well in the first quarter
but began to slip noticeably in the second quarter.
Some of the slowing in the second quarter reflected a
drop in construction employment after a strong first
quarter that likely absorbed a portion of the hiring
that normally takes place in the spring; on average,
construction employment rose a fairly brisk 15,000
per month over the first half, about the same as
in 2000. Hiring in the services industry (other than
Net change in private nonfarm payroll employment

1991

1993




1995

1997

1999

2001

1970

1975

1980

1985

1990

1995

2000

NOTE. The data extend through June 2001. The augmented unemployment
rate is the number of unemployed plus those w h o are not in the labor force and
want a job, divided by the civilian labor force plus those w h o are not in the labor
force and want a job. In January 1994, a redesigned survey was introduced; data
from that point on are not directly comparable with those of earlier periods.

help-supply firms) also slowed markedly in the second quarter. Employment in retail trade remained on
a moderate uptrend over the first half of the year, and
employment in finance, insurance, and real estate
increased modestly after having been unchanged, on
net, last year.

Labor Costs and Productivity
Through the first quarter, compensation growth
remained quite strong—indeed, trending higher by
some measures. These gains likely reflected the influence of earlier tight labor markets, higher consumer
price inflation—largely due to soaring energy
prices—and the greater real wage gains made possible by faster structural productivity growth. The
upward pressures on labor costs could abate in coming quarters if pressures in labor markets ease and
energy prices fall back.
Hourly compensation, as measured by the employment cost index (ECI) for private nonfarm businesses, moved up in the first quarter to a level about
4LA percent above its level of a year earlier; this
compares with increases of about 4V2 percent over
the preceding year and 3 percent over the year before
that. The slight deceleration in the most recent
twelve-month change in the ECI is accounted for by a
slowdown in the growth of compensation for sales
workers relative to the elevated rates that had prevailed in early 2000; these workers' pay includes a
substantial commission component and thus is especially sensitive to cyclical developments. Compensation per hour in the nonfarm business sector—a measure that picks up some forms of compensation that

Monetary Policy Report to the Congress

Measures of change in hourly compensation

517

Change in output per hour, nonfarm businesses
Percent

Percent

6
—

6

Employment cost index

N o n f a r m c o m p e n s a t i o n per hour

1993

NOTE. The data extend through 2001:Q1. The ECI is for private industry
excluding farm and household workers. Nonfarm compensation per hour is for
the nonfarm business sector.

the ECI omits but that sometimes has been revised
substantially once the data go through the annual
revision process—shows a steady uptrend over the
past couple of years; it rose 6 percent over the year
ending in the first quarter after having risen AVi percent over the preceding year.
According to the ECI, wages and salaries rose at an
annual rate of about AVi percent in the first quarter.
Excluding sales workers, wages rose 5 percent
(annual rate) in the first quarter and 4]A percent over
the year ending in March; this compares with an
increase of 33A percent over the year ending in March
2000. Separate data on average hourly earnings of
production or nonsupervisory workers also show a
discernible acceleration of wages: The twelve-month
change in this series was 4XA percent in June, XH percentage point above the reading for the preceding
twelve months.
Benefit costs as measured in the ECI have risen
faster than wages over the past year, with the increase
over the twelve months ending in March totaling
5 percent. Much of the pressure on benefits is coming
from health insurance, where employer payments
have accelerated steadily since bottoming out in the
mid-1990s and are now going up about 8 percent per
year. The surge in spending on prescription drugs
accounts for some of the rise in health insurance
costs, but demand for other types of medical care is
increasing rapidly as well. Moreover, although there
has been some revamping of drug coverage to counter
the pressures of soaring demand, many employers
have been reluctant to adjust other features of the
health benefits package in view of the need to retain
workers in a labor market that has been very tight in
recent years.



1995

1997

1999

2001

NOTE. Changes are Q4 to Q 4 except the change for 2001:Q1, which is from
2000:Q1.

Measured labor productivity in the nonfarm business sector has been bounced around in recent quarters by erratic swings in hours worked by selfemployed individuals, but on balance, it has barely
risen since the third quarter of last year after having
increased about 3 percent per year, on average, over
the preceding three years. This deceleration coincides
with a marked slowing in output growth and seems
broadly in line with the experience of past business cycles; these readings remain consistent with a
noticeable acceleration in structural productivity having occurred in the second half of the 1990s. Reflecting the movements in hourly compensation and in
actual productivity, unit labor costs in the nonfarm
business sector jumped in the first quarter and have
risen 3 xh percent over the past year.
Looking ahead, prospects for favorable productivity performance will hinge on a continuation of the
rapid technological advances of recent years and on
Change in unit labor costs, nonfarm businesses

Qi

NOTE. Changes are Q 4 to Q 4 except the change for 2001 :Q1, which is from
2000:Q1.

518

Federal Reserve Bulletin • August 2001

the willingness of businesses to expand and update
their capital stocks to take advantage of the new
efficiency-enhancing capital that is becoming available at declining cost in many cases. To be sure, the
current weakness in business investment will likely
damp the growth of the capital stock relative to the
pace of the past couple of years. But once the cyclical
weakness in the economy dissipates, continued
advances in technology should provide impetus to
renewed capital spending and a return to solid
increases in productivity.

Inflation moved higher in early 2001 but has moderated some in recent months. After having risen
2LA percent in 2000, the chain price index for personal consumption expenditures (PCE) increased
about 3LA percent in the first quarter of 2001 as
energy prices soared and as core consumer prices—
which exclude food and energy—picked up. Energy
prices continued to rise rapidly in April and May but
eased in June and early July. In addition, core PCE
price inflation has dropped back after the first-quarter
spurt, and the twelve-month change in this series,
which is a useful indicator of the underlying inflation
trend, stood at 1 Vi percent in May, about the same as
the change over the preceding twelve months. The
core consumer price index (CPI) continued to move
up at a faster pace than the core PCE measure over
the past year, rising 2Vi percent over the twelve
months ending in May, also the same rate as over the
preceding year.
PCE energy prices rose at an annual rate of about
11 percent in the first quarter and, given the big
increases in April and May, apparently posted another

sizable advance in the second quarter. Unlike the
surges in energy prices in 1999 and 2000, the
increases in the first half of 2001 were not driven by
developments in crude oil markets. Indeed, natural
gas prices were the major factor boosting overall
energy prices early this year as tight inventories and
concerns about potential stock-outs pushed spot
prices to extremely high levels; natural gas prices
have since receded as additional supplies have come
on line and inventories have been rebuilt. In the
spring, gasoline prices soared in response to strong
demand, refinery disruptions, and concerns about lean
inventories; with refineries back on line, imports up,
and inventories restored, gasoline prices have since
fallen noticeably below their mid-May peaks. Electricity prices also rose substantially in the first half of
the year, reflecting higher natural gas prices as well
as the problems in California. Capacity problems
in California and the hydropower shortages in the
Northwest persist, though California's electricity consumption has declined recently and wholesale prices
have dropped. In contrast, capacity in the rest of the
country has expanded appreciably over the past year
and, on the whole, appears adequate to meet the
normal seasonal rise in demand.
Core PCE prices rose at a 2VI percent annual rate
in the first quarter—a hefty increase by the standards
of recent years. But the data are volatile, and the
first-quarter increase, no doubt, exaggerates any
pickup. Based on monthly data for April and May,
core PCE inflation appears to have slowed considerably in the second quarter; the slowing was concentrated in the goods categories and seems consistent
with reports that retailers have been cutting prices to
spur sales in an environment of soft demand.
Core consumer price inflation—whether measured
by the PCE index or by the CPI—in recent quarters

Change in consumer prices

Change in consumer prices excluding food and energy

Prices

Percent, annual rate

Percent, annual rate

f ~ | Chain-type price index for P C E

I 1 Chain-type price i n d e x for P C E

•

•

CPI

CPI

Ql

1993

1995

1997

1999

NOTE. The CPI is for all urban consumers (CPI-U).




2001

1993

1995

1997

1999

NOTE. The CPI is for all urban consumers (CPI-U).

2001

Monetary Policy Report to the Congress

almost certainly has been boosted by the effects of
higher energy prices on the costs of producing other
goods and services. Additional pressure has come
from the step-up in labor costs. That said, firms
appear to have absorbed much of these cost increases
in lower profit margins. Meanwhile, non-oil import
prices have remained subdued, thus continuing to
restrain input costs for many domestic industries and
to limit the ability of firms facing foreign competition
to raise prices for fear of losing market share. In
addition, apart from energy, price pressures at earlier
stages of processing have been minimal. Indeed,
excluding food and energy, the producer price index
(PPI) for intermediate materials has been flat over the
past year, and the PPI for crude materials has fallen
11 percent. Moreover, inflation expectations, on balance, seem to have remained quiescent: According to
the Michigan survey, the median expectation for
inflation over the upcoming year generally has been
running about 3 percent this year, similar to the
readings in 2000.
In contrast to the step-up in consumer prices, prices
for private investment goods in the NIPA were up
only a little in the first quarter after having risen
about 2 percent last year. In large part, this pattern
was driven by movements in the price index for
computers, which fell at an annual rate of nearly
30 percent in the first quarter as demand for high-tech
equipment plunged. This drop in computer prices
was considerably greater than the average decrease of
roughly 20 percent per year in the second half of the
1990s and the unusually small 11 percent decrease in
2000. Monthly PPI data suggest that computer prices
were down again in the second quarter, though much
less than in the first quarter.
All told, the GDP chain-type price index rose at an
annual rate of VA percent in the first quarter and has
risen 2LA percent over the past four quarters, an
acceleration of Vi percentage point from the compaAlternative measures of price change
Percent, QI to QI
2000

1998
to
1999

1999
to
2000

2001

Gross domestic product
Gross domestic purchases
Personal consumption expenditures . . .
Excluding food and energy

1.5
1.2
1.5
1.8

1.8
2.3
2.5
1.6

2.3
2.2
2.2
1.7

Fixed-weight
Consumer price index
Excluding food and energy

1.7
2.2

3.3
2.2

3.4
2.7

Pnce measure

10

rable year-earlier period. The price index for gross
domestic purchases—which is defined as the prices
paid for consumption, investment, and government
purchases—also accelerated in the first quarter—to
an increase of about 23/4 percent; the increase in this
measure over the past year was 2LA percent, about the
same as over the preceding year. Excluding food and
energy, the latest four-quarter changes in both GDP
and gross domestic purchases prices were roughly the
same as over the preceding year.

U.S. Financial

Markets

Longer-term interest rates and equity prices have
shown remarkably small net changes this year, given
the considerable shifts in economic prospects and
major changes in monetary policy. To some extent,
the expectations of the economic and policy developments in 2001 had already become embedded in
financial asset prices as last year came to a close;
from the end of August through year-end, the broadest equity price indexes fell 15 percent and
investment-grade bond yields declined 40 to 70 basis
points. In addition, however, equity prices and longterm interest rates were influenced importantly by
growing optimism in financial markets over the second quarter of 2001 that the economy and profits
would rebound strongly toward the end of 2001 and
in 2002. On net, equity prices fell 6 percent in the
first half of this year as near-term corporate earnings
were revised down substantially. Rates on longerterm Treasury issues rose a little, but those on corporate bonds were about unchanged, with the narrowing
spread reflecting greater investor confidence in the
outlook. But risk spreads remained wide by historical
standards for businesses whose debt was rated as
marginally investment grade or below; many of these
firms had been especially hard hit by the slowdown
and the near-term oversupply of high-tech equipment
and services, and defaults by these firms became
more frequent. Nevertheless, for most borrowers the
environment for long-term financing was seen to be
quite favorable, and firms and households tended to
tap long-term sources of credit in size to bolster their
financial conditions and lock in more favorable costs.

Interest Rates

NOTE. A fixed-weight index uses quantity weights from a base year to
aggregate prices from each distinct item category. A chain-type index is the
geometric average of two fixed-weight indexes and allows the weights to change
each year. The consumer price indexes are for all urban consumers. Changes are
based on quarterly averages.




519

In response to the abrupt deceleration in economic
growth and prospects for continued weakness in the
economy, the FOMC lowered the target federal funds
rate 23A percentage points in six steps in the first half

520

Federal Reserve Bulletin • August 2001

Rates on selected Treasury securities

Measures of long-term inflation expectations
Percent

I
Ten-year

N^w/flr

—
~ *

1j

r f ^

—JF*"yn

JFL J

A

Two-year

^ V j y W f A

/ S

JHLAJWS

AIWCS\

M

\ IL

Three-month

—

6.5

—

6.0

I^LTT

5,5

~

5 0

rafc r *
MV
W

—

-

4.0
3.5 •

—

1 I I I I I I I I I I I 1 I I I I I I I I I I I 1I I I I I I I
JFMAMJ

JASONDJ

1999

F MAM J J A S O N D J

FMAMJ J

2000

2001

NOTE. The data are daily and extend through July 12, 2001.

of this year, an unusually steep decline relative to
many past easing cycles. Through March, the policy
easings combined with declining equity prices and
accumulating evidence that the slowdown in economic growth was more pronounced than had been
initially thought led to declines in yields on
intermediate- and longer-term Treasury securities.
Over the second quarter, despite the continued
decrease in short-term rates and further indications of
a weakening economy, yields on intermediate-term
Treasury securities were about unchanged, while
those on longer-term securities rose appreciably. On
net, yields on intermediate-term Treasury securities
fell about 3A percentage point in the first half of this
year, while those on longer-term Treasury securities
rose about LA percentage point.
The increase in longer-term Treasury yields in the
second quarter appears to have been the result of a
number of factors. The main influence seems to have
been increased investor confidence that the economy
would soon pick up. That confidence likely arose in
part from the aggressive easing of monetary policy
and also in part from the improving prospects for, and
passage of, a sizable tax cut. The tax cut and the
growing support for certain spending initiatives
implied stronger aggregate demand and less federal
saving than previously anticipated. The prospect that
the federal debt might be paid down less rapidly may
also have reduced slightly the scarcity premiums
investors were willing to pay for Treasury securities.
Finally, a portion of the rise may have been the result
of increased inflation expectations. Inflation compensation as measured by the difference between nominal Treasury rates and the rates on inflation-indexed
Treasury securities rose about XA percentage point in



JFMAMJ

JASONDJ

1999

FMAMJ I A S O N D J
2000

FMAMJ J
2001

NOTE. The data for the Michigan survey, which are monthly and extend
through June 2001, measure five-year to ten-year inflation expectations. The
data for the FRB Philadelphia survey, which are quarterly and extend through
2001:Q2, measure ten-year inflation expectations. TIIS inflation compensation
is the rate of inflation at which the price of the ten-year Treasury inflationindexed security equals the value of a portfolio of zero-coupon securities that
replicates its payments; data for this measure are weekly averages and extend
through July 13, 2001.

the second quarter. Despite this increase, there is little
evidence that inflation is expected to go up from its
current level. At the end of last year, inflation compensation had declined to levels suggesting investors
expected inflation to fall, and the rise in inflation
compensation in the second quarter largely reversed
those declines. Moreover, survey measures of longerterm inflation expectations have changed little since
the middle of last year.
Yields on longer-maturity corporate bonds were
about unchanged, on net, over the first half of this
year. Yields on investment-grade bonds are near their
lows for the past ten years, but those on speculativegrade bonds are elevated. Spreads of corporate bond
yields relative to swap rates narrowed a bit, although
they still remain high. Amidst signs of deteriorating
credit quality and a worsening outlook for corporate
earnings, risk spreads on speculative-grade bonds
had risen by about 2 percentage points late last year,
reaching levels not seen since 1991. Much of this
widening was reversed early in the year, as investors
became more confident that corporate balance sheets
would not deteriorate substantially, but speculativegrade bond spreads widened again recently in
response to negative news about second-quarter earnings and declines in share prices, leaving these
spreads at the end of the second quarter only slightly
below where they began the year. Nonetheless, investors, while somewhat selective, appear to remain
receptive to new issues with speculative-grade
ratings.

Monetary Policy Report to the Congress

Corporate bond yields

521

remains in the elevated range it shifted to in late
1998. Judging from the widening since 1998 of the
average spread between rates on riskier and less-risky
loans, banks have become especially cautious about
lending to marginal credits.

Equity Markets

NOTE. The data are monthly averages and extend through June 2001. The
A A rate is calculated from bonds in the Merrill Lynch A A index with seven to
ten years remaining to maturity. The high-yield rate is the yield on the Merrill
Lynch 175 high-yield index.

Interest rates on commercial paper and C&I loans
have fallen this year by about as much as the federal
funds rate, although some risk spreads widened. The
average yield spread on second-tier commercial paper
over top-tier paper widened to about 100 basis points
in late January, about four times its typical level,
following defaults by a few prominent issuers. As the
year progressed, investors became less concerned
about the remaining commercial paper borrowers,
and this spread has returned to a more normal level.
According to preliminary data from the Federal
Reserve's quarterly Survey of Terms of Business
Lending, the spread over the target federal funds rate
of the average interest rate on commercial bank C&I
loans edged up between November and May and
Spread of average business loan rate
over intended federal funds rate

After rising in January in response to the initial
easing of monetary policy, stock prices declined in
February and March in reaction to profit warnings
and weak economic data, with the Wilshire 5000, the
broadest major stock price index, ending the first
quarter down 13 percent. Stock prices retraced some
of those losses in the second quarter, rising 7 percent, as first-quarter earnings releases came in a little
above sharply reduced expectations and as investors
became more confident that economic growth and
corporate profits would soon pick up. On net, the
Wilshire 5000 ended the half down 6 percent, the
DJIA declined 3 percent, and the tech-heavy Nasdaq
fell 13 percent. Earnings per share of the S&P 500 in
the first quarter decreased 10 percent from a year
earlier. A disproportionate share of the decline in
S&P earnings—more than half—was attributable to a
plunge in the technology sector, where first-quarter
earnings were down nearly 50 percent from their
peak in the third quarter of last year.
The decline in stock prices has left the Wilshire
5000 down by about 20 percent, and the Nasdaq
down by about 60 percent, from their peaks in March
2000. Both of these indexes are near their levels at
the end of 1998, having erased the sharp run-up in
prices in 1999 and early 2000. But both indexes
remain more than two and one-half times their levels
Major stock price indexes
January 4, 1999 = 100

I1 IIIIIIt IIIIIIIIIIIIIIIIIIIII I
NOTE. The data, which are based on the Federal Reserve's Survey of Terms
of Business Lending, are for loans made by domestic commercial banks. The
survey is conducted in the middle month of each quarter; the final observation is
for May 2001 and is preliminary.




JFMAMJ

JASONDJFMAMJ

1999

I A S O N D J

FMAMJ J

2000

NOTE. The data are daily and extend through July 12, 2001.

2001

522

Federal Reserve Bulletin • August 2001

S&P 500 earnings-price ratio and the real interest rate

NOTE. The data are monthly and extend through June 2001. The earningsprice ratio is based on I/B/E/S consensus estimates of earnings over the coming
year. The real rate is estimated as the difference between the ten-year Treasury
rate and the five-year to ten-year expected inflation rate from the FRB Philadelphia survey.

at the end of 1994, when the bull market shifted into
a higher gear. The ratio of expected one-year-ahead
earnings to equity prices began to fall in 1995 when,
as productivity growth picked up, investors began to
build in expectations that increases in earnings would
remain rapid for some time. This measure of the
earnings-price ratio remains near the levels reached
in 1999, suggesting that investors still anticipate
robust long-term earnings growth, likely reflecting
expectations for continued strong gains in
productivity.
Despite the substantial variation in share prices
over the first half of this year, trading has been
orderly, and financial institutions appear to have
encountered no difficulties that could pose broader
systemic concerns. Market volatility and a less ebullient outlook have led investors to buy a much smaller
share of stock on margin. At the end of May, margin
debt was 1.15 percent of total market capitalization,
equal to its level at the beginning of 1999 and well
below its high of 1.63 percent in March of last year.

generally investing the difference by purchasing other
Treasury securities on the open market. The Federal
Reserve also has increased its holdings of longerterm repurchase agreements (RPs), including RPs
backed by agency securities and mortgage-backed
securities, as a substitute for outright purchases of
Treasury securities. In the first half of the year,
longer-term RPs, typically with maturities of twentyeight days, averaged $13 billion.
As reported in the previous Monetary Policy
Report, the FOMC also initiated a study to evaluate
assets to hold on its balance sheet as alternatives to
Treasury securities. That study identified several
options for further consideration. In the near term, the
Federal Reserve is considering purchasing and holding Ginnie Mae mortgage-backed securities, which
are explicitly backed by the full faith and credit of the
U.S. government, and engaging in repurchase operations against foreign sovereign debt. For possible
implementation later, the Federal Reserve is studying
whether to auction longer-term discount window
credit, and it will over time take a closer look at a
broader array of assets for repurchase and for holding
outright, transactions that would require additional
legal authority.

Debt and the Monetary

Aggregates

The growth of domestic nonfinancial debt in the first
half of 2001 is estimated to have remained moderate,
slowing slightly from the pace in 2000 as a reduction
in the rate of increase in nonfederal debt more than
offset the effects of smaller net repayments of federal
debt. In contrast, the monetary aggregates have
grown rapidly so far this year, in large part because
the sharp decline in short-term market interest rates
has reduced the opportunity cost of holding the
deposits and other assets included in the aggregates.

Debt and Depository Intermediation
Federal Reserve Open Market Operations
As noted earlier, the Federal Reserve has responded
to the diminished size of the auctions of Treasury
securities by modifying its procedures for acquiring
such securities. To help maintain supply in private
hands adequate for liquid markets, since July of last
year the System has limited its holdings of individual
securities to specified percentages, ranging from
15 percent to 35 percent, of outstanding amounts. To
stay within these limits, the System has at times not
rolled over all of its holdings of maturing securities,



The debt of the domestic nonfinancial sectors is estimated to have expanded at a 43A percent annual rate
over the first half of 2001, a touch below the 5lA percent growth recorded in 2000. Changes in the growth
of nonfederal and federal debt this year have mostly
offset each other. The growth of nonfederal debt
moderated from 8V2 percent in 2000 to a still-robust
IV4 percent pace in the first half of this year. Households' borrowing slowed some but was still substantial, buoyed by continued sizable home and durable
goods purchases. Similarly, business borrowing mod-

Monetary Policy Report to the Congress

Growth of domestic nonfinancial debt

523

Percent of all U.S. commercial bank assets
at well-capitalized banks
Percent
Percent

—

100

—

—

80

—

—

60

—

40

1

1

f

1

1991

Nonfederal

Federal

NOTE. Annual growth rates are computed from fourth-quarter averages.
Growth in the first half of 2001 is the June average relative to the fourth-quarter
average at an annual rate and is based on partially estimated data. Domestic
nonfinancial debt consists of the outstanding credit market debt of governments,
households and nonprofit organizations, nonfinancial businesses, and farms.

erated even as bond issuance surged, as a good portion of the funds raised was used to pay down commercial paper and bank loans. Tending to boost debt
growth was a slowing in the decline in federal debt to
a 614 percent rate in the first half of this year from
63/4 percent last year, largely because of a decline in
tax receipts on corporate profits.
The share of credit to nonfinancial sectors held at
banks and other depository institutions edged down
in the first half of the year. Bank credit, which
accounts for about three-fourths of depository credit,
increased at a 3'/2 percent annual rate in the first half
of the this year, well off the 9Vi percent growth
registered in 2000. Banks' loans to businesses and
households decelerated even more, in part because
borrowers preferred to lock in the lower rates available from longer-term sources of funds such as bond
and mortgage markets and perhaps also in part
because banks firmed up their lending stance in reaction to concerns about loan performance. Loan delinquency and charge-off rates have trended up in recent
quarters, and higher loan-loss provisions have
weighed on profits. Nevertheless, through the first



1993

1

I

1
1995

1
1997

1

1
1999

i

I

1

2001

Note. The data are quarterly and extend through 2001:Q1. Capital status is
determined using the regulatory standards for the leverage, tier 1, and total
capital ratios.

quarter, bank profits remained in the high range
recorded for the past several years, and virtually all
banks—98 percent by assets—were well capitalized.
With banks' financial condition still quite sound, they
remain well positioned to meet future increases in the
demand for credit.

The Monetary Aggregates
The monetary aggregates have expanded rapidly so
far this year, although growth rates have moderated
somewhat recently. M2 rose 1014 percent at an annual
rate in the first half of this year after having grown
61/4 percent in 2000. The interest rates on many of the
components of M2 do not adjust quickly or fully to
M2 growth rate
Percent, annual rate

HI

NOTE. M 2 consists of currency, travelers checks, demand deposits, other
checkable deposits, savings deposits (including money market deposit accounts),
small-denomination time deposits, and balances in retail money market funds.
See footnote under the domestic nonfinancial debt chart for details on the computation of growth rates.

524

Federal Reserve Bulletin • August 2001

M3 growth rate
Percent, annual rate

NOTE. M3 consists of M 2 plus large-denomination time deposits, balances
in institutional money market funds, RP liabilities (overnight and term), and
eurodollars (overnight and term). See footnote under the domestic nonfinancial
debt chart for details on the computation of growth rates.

changes in market interest rates. As a consequence,
the steep declines in short-term market rates this year
have left investments in M2 assets relatively more
attractive, contributing importantly to the acceleration in the aggregate. M2 has also probably been
buoyed by the volatility in the stock market this year,
and perhaps by lower expected returns on equity
investments, leading investors to seek the safety and
liquidity of M2 assets.
M3, the broadest monetary aggregate, rose at a
13V4 percent annual rate through June, following
9VA percent growth in 2000. All of the increase in
M3, apart from that accounted for by M2, resulted
from a ballooning of institutional money market
funds, which expanded by nearly a third. Yields on
these funds lag market yields somewhat, and so the
returns to the funds, like those on many M2 assets,
became relatively attractive as interest rates on shortterm market instruments declined.

Monetary authorities in most cases reacted to signs
of slowdown by lowering official rates, but by less
than in the United States. Partly in response to these
actions, yield curves have steepened noticeably so far
in 2001. Although long-term interest rates moved
down during the first quarter, they more than reversed
those declines in most cases as markets reacted to
a combination of the anticipation of stronger real
growth and the risk of increased inflationary pressure.
Foreign equity markets—especially for high-tech
stocks—were buffeted early this year by many of the
same factors that affected U.S. share prices: negative
earnings reports, weaker economic activity, buildups
of inventories of high-tech goods, and uncertainties
regarding the timing and extent of policy responses.
In recent months, the major foreign equity indexes
moved up along with U.S. stock prices, but they have
edged off lately and in most cases are down, on
balance, for the year so far.
Slower U.S. growth, monetary easing by the Federal Reserve, fluctuations in U.S. stock prices, and the
large U.S. external deficit have not undermined dollar
strength. After the December 2000 FOMC meeting,
the dollar lost ground against the major currencies;
but shortly after the FOMC's surprise rate cut on
Foreign interest rates
Percent
Short-term ( t h r e e - m o n t h )

I

International

I

Developments

l

I

I




I

i

I

L o n g - t e r m (ten-year g o v e r n m e n t b o n d s )
Canada

So far this year, average foreign growth has weakened further and is well below its pace of a year ago.
Activity abroad was restrained by the continued high
level of oil prices, the global slump of the hightechnology sector, and spillover effects from the U.S.
economic slowdown, but in some countries domestic
demand softened as well in reaction to local factors.
High oil prices kept headline inflation rates somewhat elevated, but even though core rates of inflation
have edged up in countries where economic slack has
diminished, inflationary pressures appear to be well
under control.

+

Japanese CD

United Kingdom

—

_

_

—

6

—

4

Germany

Japan

l
QI

l
Q2

l
Q3

2000

I
Q4

i
QI

I
Q2

2001

NOTE. The data are weekly and extend through July 11, 2001.

Q3

Monetary Policy Report to the Congress

January 3, the dollar reversed all of that decline as
market participants evidently reassessed the prospects for recovery in the United States versus that
in our major trading partners. The dollar as measured
by a trade-weighted index against the currencies of
major industrial countries gained in value steadily in
the first three months of 2001, reaching a fifteen-year
high in late March. Continued flows of foreign funds
into U.S. assets appeared to be contributing importantly to the dollar's increase. Market reaction to
indications that the U.S. economy might be headed
toward a more prolonged slowdown undercut the
dollar's strength somewhat in early April, and the
dollar eased further after the unexpected April 18 rate
cut by the FOMC. However, the dollar has more than
made up that loss in recent months as signs of weakness abroad have emerged more clearly. On balance,
the dollar is up about 7 percent against the major
currencies so far this year; against a broader index
that includes currencies of other important trading
partners, the dollar has appreciated 5 percent.

Nominal U.S. dollar exchange rates
Week ending January 5, 2000 = 100
E x c h a n g e rate i n d e x e s

Major currencies

S e l e c t e d bilateral rates

Japanese yen

U.K.pound

Canadian dollar

NOTE. The data are weekly and extend through July 11, 2001. Indexes (top
panel) are trade-weighted averages of the exchange value of the dollar against
major currencies and against the currencies of a broad group of important U.S.
trading partners. Bilateral rates (bottom panel) are in foreign currency units per
dollar.




525

The dollar has gained about 9 percent against
the yen, on balance, as the Japanese economy has
remained troubled by structural problems, stagnant
growth, and continuing deflation. Industrial production has been falling, and real GDP declined slightly
in the first quarter, with both private consumption and
investment contracting. Japanese exports also have
sagged because of slower demand from many key
trading partners. Early in the year, under increasing
pressure to respond to signs that their economy was
weakening further, the Bank of Japan (BOJ) slightly
reduced the uncollateralized overnight call rate, its
key policy interest rate. By March, the low level of
equity prices, which had been declining since early
2000, was provoking renewed concerns about the
solvency of Japanese banks. In mid-March, the BOJ
announced that it was shifting from aiming at a
particular overnight rate to targeting balances that
private financial institutions hold at the Bank, effectively returning the overnight rate to zero; the BOJ
also announced that it would continue this easy
monetary stance until inflation moves up to zero or
above. After the yen had moved near the end of
March to its weakest level relative to the dollar in
more than four years, Japanese financial markets
were buoyed by the surprise election in May of
Junichiro Koizumi to party leadership and thereby to
prime minister. The yen firmed slightly for several
weeks thereafter, but continued weak economic fundamentals and increased market focus on the daunting challenges facing the new government helped
push the yen back down and beyond its previous low
level.
At the start of 2001, economic activity in the euro
area had slowed noticeably from the more rapid rates
seen early last year but still was fairly robust. Average GDP growth of near 2 percent was only slightly
below estimated rates of potential growth, although
some key countries (notably Germany) were showing
signs of faltering further. Although high prices for oil
and food had raised headline inflation, the rate of
change of core prices was below the 2 percent ceiling
for overall inflation set by the European Central Bank
(ECB). The euro also was showing some signs of
strength, having moved well off the low it had
reached in October. However, negative spillovers
from the global slowdown started to become more
evident in weaker export performance in the first
quarter, and leading indicators such as business confidence slumped. Nevertheless, the ECB held policy
steady through April, as further weakening of the
euro against the dollar (following a trend seen since
the FOMC's rate cut in early January), growth of M3
in excess of the ECB's reference rate, and signs of an

526

Federal Reserve Bulletin • August 2001

edging up of euro-area core inflation were seen as
militating against an easing of policy.
In early May, the ECB surprised markets with a
25 basis point reduction of its minimum bid rate
and parallel reductions of its marginal lending and
deposit rates. In explaining the step, the ECB noted
that monetary developments no longer posed a threat
to price stability and projected that moderation of
GDP growth would damp upward price pressure. The
euro has continued to fall since then and, on balance,
has declined 9 percent against the dollar since the
beginning of the year. Faced with a similar slowdown
in the U.K. economy that was exacerbated by the
outbreak of foot-and-mouth disease, the Bank of
England also cut its official call rate three times (by a
total of 75 basis points) during the first half of the
year. The Labor Party's victory in parliamentary elections in early June seemed to raise market expectations of an early U.K. euro referendum and put additional downward pressure on sterling, but that was
partly offset by signs of stronger inflationary pressure. On balance, the pound has lost about 6 percent
against the dollar this year, while it has strengthened
against the euro.
The exchange value of the Canadian dollar has
swung over a wide range in 2001. In the first quarter,
the Canadian dollar fell about 5 percent against
the U.S. dollar as the Canadian economy showed
signs of continuing a deceleration of growth that had
started in late 2000. Exports—especially autos, auto
equipment, and electronic equipment—suffered from
weaker U.S. demand. Softer global prices for nonoil commodities also appeared to put downward pressure on the Canadian currency. With inflation well
within its target range, the Bank of Canada cut its
policy rate several times by a total of 125 basis
points. So far this year, industries outside of manufacturing and primary resources appear to have been
much less affected by external shocks, and domestic
demand has maintained a fairly healthy pace. Since
the end of March, the Canadian dollar has regained
much of the ground it had lost earlier and is down
about 2 percent on balance since the beginning of the
year.
Global financial markets were rattled in February
by serious problems in the Turkish banking sector.
Turkish interest rates soared and, after market pressures led authorities to allow the Turkish lira to float,
it experienced a sharp depreciation of more than
30 percent. An IMF program announced in mid-May
that will bring $8 billion in support this year and
require a number of banking and other reforms helped
steady the situation temporarily, but market sentiment
started to deteriorate again in early July.



In Argentina, the weak economy and the government's large and growing debt burden stoked market
fears that the government would default on its debt
and alter its one-for-one peg of the peso to the dollar.
In April, spreads on Argentina's internationally
traded bonds moved up sharply, and interest rates
spiked. In June, the government completed a nearly
$30 billion debt exchange with its major domestic
and international creditors aimed at alleviating the
government's cash flow squeeze, improving its debt
amortization profile, and giving it time to enact fiscal
reforms and revive the economy. Argentine financial
conditions improved somewhat following agreement
on the debt swap. However, this improvement proved
temporary, and an apparent intensification of market
concerns about the possibility of a debt default triggered a sharp fall in Argentine financial asset prices
at mid-July. This financial turbulence in Argentina
negatively affected financial markets in several other
emerging market economies. The turmoil in Argentina took a particular toll on Brazil, where an energy
crisis added to other problems that have kept growth
Emerging markets
Week ending January 5,2000 = 100
D a i l y e x c h a n g e rates

Brazil

130

—

120

110
Argentina

100

Percentage points
B o n d spreads
—

12

—

10

— 8
— 6
—

4

— 2
Q1

Q2

Q3

2000

Q4

Q1

Q2

Q3

2001

NOTE. The data are weekly and extend through July 1 1 , 2 0 0 1 . Exchange rates
(top panel) are in foreign currency units per dollar. Bond spreads (bottom panel)
are the J.P. Morgan Emerging Market Bond Index "plus" (sovereign yield)
spreads over U.S. Treasuries.

Monetary Policy Report to the Congress

very slow since late last year. Intervention purchases
of the real by the Brazilian central bank and a
300 basis point increase in its main policy interest
rate helped take some pressure off the currency, but
the real has declined about 24 percent so far this year.
The weak performance of the Mexican economy at
the end of last year caused largely by a fall in exports
to the United States (notably including a sharp drop
in exports of automotive products) and tight monetary policy carried over into early 2001. With inflation declining, the Bank of Mexico loosened monetary policy in May for the first time in three years.
Problems with Mexican growth did not spill over to
financial markets, however. The peso has remained
strong and is up about 3 percent so far this year, and
stock prices have risen.
Average growth in emerging Asia slowed significantly in the first half; GDP grew more slowly or
even declined in economies that were more exposed
to the effects of the global drop in demand for hightech products. Average growth of industrial production in Malaysia, Singapore, and Hong Kong, for




527

example, fell from a 15 percent annual rate in late
2000 to close to zero in mid-2001. The turnaround of
the high-tech component of industrial production in
those countries was even more abrupt—from more
than a 30 percent rate of increase to a slight decline
by midyear. In the Philippines and Indonesia, economic difficulties were compounded by serious political tensions. Currencies in many of these countries
moved down versus the dollar, and stock prices
declined. In Korea, the sharp slump in activity that
began late last year continued into 2001, as weakness
in the external sector spread to domestic consumption
and investment. The Bank of Korea lowered its target
interest rate a total of 50 basis points over the first
half of the year in response to the weakening in
activity. The Chinese economy, which is less dependent on technology exports than many other countries in the region, continued to expand at a brisk
pace in the first half of this year, as somewhat softer
export demand was offset by increased government
spending.
•

528

Industrial Production and Capacity Utilization
for June 2001
Released for publication July 17
Industrial production fell 0.7 percent in June, to
142.5 percent of its 1992 average; second-quarter
production was down 5.6 percent at an annual rate.
After nine consecutive months of decline, industrial

production in June was more than Wi percent below
its level in June 2000. Manufacturing output, which
also posted its ninth consecutive monthly decline,
contracted 0.8 percent in June, to more than 4 percent
below its year-earlier level. Mining output weakened
0.4 percent, and utilities production increased 0.9 per-

Industrial production

Ratio scale, 1 9 9 2 = 1 0 0

145

Total industrial production

125

-

_ ^

^

Excluding high-tech industries

~~

105

85

1

1

1

1

1

1

1

1

Capacity utilization

Percent o f capacity

Total industry

85

80
75

70

I
1977

I

M l

1979

1
1981

I
1983

I

I
1985

I

I

I

1987

I

! _ •
1989

12-month percent change

High-tech industries are defined as semiconductors and related electronic
components (SIC 3672-9), computers (SIC 357), and communications equipment (SIC 366).




I
1991

1
1993

I

I
1995

I

I
1997

I

I
1999

I

L
2001

Percent o f capacity

Shaded areas are periods of business recession as defined by the NBER.

529

Industrial production and capacity utilization, June 2001
Industrial production, index, 1992= 100
Percent change
2001

Category

2001 1
JuneP

June 2000
to
June 2001

-.7

-3.6

-.4
.0
-.6
-.6
-.7

-.5
-.2
-1.4
-.7
-.9

-2.7
-2.2
-2.0
^1.0
-5.1

-.5
-.3
-.7
-.1
-1.7

-.8
-1.2
-.3
-.4
.9

-4.2
-3.9
-4.6
1.9
-2.2

r

r

June?

Mar/

Apr/

May

142.5

-.3

-.5

-.5

-.2

-.6

-.8

Mar/

Apr/

May

Total

145.0

144.2

143.5

Previous estimate

145.1

144.2

143.1

Major market groups
Products, total2
Consumer goods
Business equipment
Construction supplies
Materials

134.5
122.4
195.6
140.5
163.9

133.6
121.7
193.0
139.6
163.4

133.1
121.7
191.8
138.7
162.2

132.4
121.5
189.0
137.6
160.7

-.1
.1
.1
.4
-.7

-.7
-.6
-1.3
-.7
-.3

Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities

150.0
191.3
112.7
102.7
122.0

149.3
189.9
112.4
102.8
120.0

148.6
189.4
111.7
102.7
118.0

147.4
187.0
111.3
102.3
119.0

-.5
.1
-1.2
1.3
.2

-.5
-.7
-.2
.1
-1.7

Capacity utilization, percent
2000
Average,
1967-00

Low,
1982

2001

High,
1988-89
June

Mar/

Apr/

May1"

June?

Total

82.1

71.1

85.4

82.7

78.7

78.1

77.6

77.0

3.6

Manufacturing
Advanced processing
Primary processing .
Mining
Utilities

81.1
80.6
82.2
87.4
87.6

69.0
71.0
65.7
80.3
75.9

85.7
84.2
88.3
88.0
92.6

82.0
79.9
86.5
86.2
91.7

77.3
77.9
77.4
89.2
89.6

76.8
77.2
77.1
89.3
87.8

76.3
76.9
76.3
89.3
86.1

75.5
76.2
75.4
89.1
86.6

4.0
2.1
7.1
-1.4
3.6

NOTE. Data seasonally adjusted or calculated from seasonally adjusted
monthly data.
1. Change from preceding month.

cent. The rate of capacity utilization for total industry
sank to 77 percent, more than 5 percentage points
below its 1967-2000 average.

MARKET

GROUPS

The output of consumer goods dipped 0.2 percent in
June, despite a gain in the production of consumer
energy goods. Production of automotive products,
which jumped in May, fell back 1.3 percent in June;
the level of production was nearly 7 percent below
that of June 2000. Elsewhere among consumer durables, the production of home audio and video equipment, appliances, and household furniture weakened
noticeably. The output of nondurable consumer goods
was flat. The output of consumer energy products
increased 1.7 percent, with sizable gains in the production of automotive gasoline and in utility sales to
residences. The production of nondurable consumer
goods excluding energy contracted 0.3 percent, as the
production of foods and tobacco and clothing continued to decrease.



2. Contains components in addition to those shown,
r Revised,
p Preliminary.

The output of business equipment fell 1.4 percent
in June. The production of transit equipment dropped
back in June; although output in this category rose,
on average, in the second quarter, it remained more
than 10 percent below its level in June 2000. Medium
and heavy truck production—the hardest-hit transit
industry—was more than 40 percent below its June
2000 level. The 1.2 percent decline in the production
of information-processing equipment reflected, in
part, continued losses in the communications equipment industry; the output of computer and office
equipment was flat in June. The output of industrial
and other equipment fell 1.8 percent, with widespread declines posted within the sector.
Broad-based weakness in the construction supplies
industries led to a reduction in the output of intermediate products. The production of business supplies
edged up slightly after six consecutive months of
decline. The output of materials fell back 0.9 percent
in June, and the losses were widespread. Within
durable materials industries, noticeable cutbacks were
made in the production of both automotive parts and
semiconductors. Among nondurable materials, the

530

Federal Reserve Bulletin • August 2001

output of chemicals and of textiles continued to fall.
The output of energy materials was flat, with small
offsetting changes among the components.

INDUSTRY GROUPS

The weakness in manufacturing production in June
was widespread across industries. Overall manufacturing fell 0.8 percent, and both the manufacturing
aggregate excluding motor vehicles and parts and the
aggregate excluding high-technology industries fell
by nearly the same amount.
Overall manufacturing output fell at an annual rate
of 5.9 percent in the second quarter, after having
dropped 7.9 percent in the first quarter. The weakness
in the second quarter was evident among both durables and nondurables. The largest drops were in
electrical machinery (most notably semiconductors),
textile mill products, industrial machinery and equipment, fabricated metal products, printing and publishing, and chemical products. Only four industries




showed advances in output in the second quarter:
motor vehicles and parts, lumber and products, paper
and products, and petroleum products. The output of
motor vehicles and parts increased at an annual rate
of 35 percent after having fallen at an average rate of
25 percent in each of the previous two quarters.
The factory operating rate dropped 3A of a percentage point, to 75.5 percent in June. The utilization
rate for primary-processing industries declined to
75.4 percent, while the rate for advanced-processing
industries declined to 76.2 percent. With the exceptions of stone, clay, and glass products, petroleum
products, and miscellaneous manufactures, operating
rates for the major manufacturing industries remained
below their long-run averages. Capacity utilization
in high-technology industries (computers, communications equipment, and semiconductors and related
electronic components) dropped 2 percentage points
in June, to 67.5 percent. The operating rate at utilities
picked up slightly to 86.6 percent. The operating rate
for mining edged down to 89.1 percent.
•

531

Testimony of Federal Reserve Officials
Testimony of Roger W. Ferguson, Jr., Vice Chairman,
Board of Governors of the Federal Reserve System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, June 13, 2001
Chairman Sarbanes, Senator Gramm, and members
of the Committee, I am pleased to appear before you
today as President Bush's nominee to serve on the
Board of Governors of the Federal Reserve System. I
am honored that the President has nominated me to
serve a full term as a member of the Board.
As a Governor, I am particularly mindful that the
policy decisions of the Federal Reserve influence the
economic well-being of all Americans. It has been
my privilege to serve our fellow citizens in this
capacity since 1997, giving this role my undivided
attention, and I hope to be able to continue in that
service.
During my tenure we have faced a rapidly changing environment in many of our areas of responsibility, and I would like to review briefly some of those
developments and our responses to them.
The Congress has given the Federal Reserve three
monetary policy objectives: maximum employment,
stable prices, and moderate long-term interest rates.
We have viewed these objectives as congruent with
a goal of maximum sustainable growth, which can
occur only in the context of long-run price stability.
Fostering financial conditions in which Americans
can realize the full productive potential of our economy has presented a number of challenges in recent
years. The most important developments have been a
step-up in the advance of technology—both in terms
of the production of new goods and the more effective harnessing of past innovations—and a rapid
accumulation of physical capital. These developments have made workers increasingly more productive. But faster productivity growth fed back on the
demand for goods and services in ways that complicated the calibration of monetary policy. Faster
growth in productivity, and the reactions of businesses and households to this acceleration of productivity, have combined with other forces—particularly
those associated with the growing interconnectedness
of the global economy—to require substantial adjustments in the Federal Reserve's policy interest rate in
recent years. But those adjustments in our policy



instrument have been in the service of our objective
of promoting maximum sustainable growth.
Making monetary policy has been only part of the
challenge. During my tenure at the Federal Reserve
we have also worked diligently to communicate to
the public what we are doing with policy and why.
Transparency in policymaking is a key part of the
democratic process, as well as being helpful in fostering efficient decisionmaking in the private sector.
Becoming more transparent has been a goal of the
central bank in recent years, keeping in mind that we
must balance the need to be open and accountable
with the need to maintain an effective process of
decisionmaking by the Federal Open Market Committee. Transparency requires that we periodically
review our procedures, as we did in 1999, to ensure
that they appropriately balance these considerations. I
do not know what future changes, if any, might be
called for in how we communicate, but I am confident that the Federal Reserve will continue to look
for ways to communicate clearly our policies and our
supporting rationales.
While macroeconomic conditions are of overriding
importance, the role of the Federal Reserve is broader
than monetary policy. Financial stability is an essential precondition for maintaining a strong economy,
and the Federal Reserve has important supervisory
and regulatory responsibilities for our nation's
banking system. The Federal Reserve, and other
regulators, must continue to foster a competitive
environment that will benefit the users of financial
services, while also promoting safety and soundness.
I believe that we must achieve these goals with a
minimum of regulatory burden and without leaving
the impression that any institution is too big to fail.
To minimize regulatory burden and achieve our other
objectives, we should encourage what to my mind
are the best regulators, namely market discipline and
management accountability. Of late, our challenge
has been to meet these goals as we implement the
financial modernization law. In my opinion, the
Congress wisely removed several antiquated barriers
to a modern financial structure in the United States,
and now we need to design regulatory and supervisory policies that reflect the will of the Congress
and deal effectively with a changing financial services industry.

532

Federal Reserve Bulletin • August 2001

Technology and deregulation, forces for change
that I have just mentioned, have encouraged consolidation in the financial sector. With central bank and
treasury officials from twelve other major industrial
economies, I have reviewed the likely effect of the
global trend toward consolidation and its implication
for central banks and regulators. Because financial
systems will continue to consolidate, as the forces
that motivate that evolution are unabated, the regulatory community needs to monitor developments
closely. But our study also found that existing policies appear adequate to allow regulators to maintain
safe and sound financial industries now and in the
intermediate term and for monetary policy to work
through many of the same mechanisms as in the past.
More than the structure of the financial services
industry has changed of late. That sector has found
uses for consumer information and created an array
of financial products and services unimagined even
a few years ago. These developments, in turn, raise
some new concerns, and have re-ignited some existing ones, among consumers and legislators. The Congress grappled with one of these issues, privacy, in
the financial modernization law. Concerns about
abusive lending practices have also re-emerged of
late. In all areas, but particularly in areas as sensitive
as these, regulators should faithfully administer consumer protection laws as written. Any necessary
regulations should adequately inform consumers and
protect them against abusive practices while also not
discouraging legitimate extensions of credit, especially to those who might previously have been
denied access to such credit. Financial literacy will
certainly play an important role in avoiding the
growth of abusive or deceptive financial practices
and in allowing consumers to protect their interests. I
believe that legislation, careful regulation, and education are all components of the response to these
emerging consumer concerns. I also hope, however,
that businesses recognize that it is in their long-term
interest to maintain the confidence of consumers by
avoiding deceptive and abusive practices and by
respecting the privacy of their customers.

Finally, our payment system affects every consumer and business. This system too has been, and
will continue to be, changed greatly by emerging
technologies. From the time of its very founding, the
Federal Reserve has had the responsibility to foster
an efficient, safe, and accessible payment system.
During much of 1998 and 1999, our primary objective in this regard was to help banks and other participants in the payment system maintain smooth
operations as the century date change passed. Domestically, we achieved this goal by working directly
with the banking sector. Internationally, I was privileged to work through multilateral groups to raise the
awareness of the international regulatory community
of the nature of the Y2K challenge. Now, we can take
a longer-term perspective and consider how we might
facilitate innovation in the payment system.
As an overseer and regulator, the Federal Reserve
needs to approach payment system innovations with
an open mind and a willingness to adapt. In a
dynamic economy, markets need to play a key role
in guiding the development of infrastructure. This
means that innovation and competition will be central
to the future development of the payment system—as
they are in other areas of the economy. Regulators
should strive to remove barriers to innovations when
we can do so without sacrificing important public
policies. We should take every opportunity to foster
competition and maintain the integrity of the payment system, but public policy should not be built on
a single vision or prediction of the future. Ultimately,
consumers and businesses as well as service providers will determine the range of payment services that
best meet their needs.
Mr. Chairman and members of the Committee,
during my years on the Board of Governors, I have
done my best to contribute positively to all aspects of
the Federal Reserve's many responsibilities. I look
forward to the opportunity to continue to work with
you and serve the nation as a member of the Board of
Governors. Thank you for your attention and for
considering my nomination. I would be pleased to
respond to questions.

Testimony of Alan Greenspan, Chairman, Board of
Governors of the Federal Reserve System, before the
Committee on Banking, Housing, and Urban Affairs,
US. Senate, June 20, 2001

today, I would like to raise just a few issues. I have
attached an appendix in which the Federal Reserve
Board staff provides far more detail relevant to the
purpose of these hearings.1

Mr. Chairman and members of the Committee, I am
pleased to be here this morning to discuss the condition of the U.S. banking system. In my presentation

1. The attachment to this statement is available, on request, from
Publications Services, Mail Stop 127, Board of Governors of the
Federal Reserve System, Washington, DC 20551.




Testimony of Federal Reserve Officials

There are, I believe, two salient points to be made
about the current state of the banking system. First,
many of the traditional quantitative and qualitative
indicators suggest that bank asset quality is deteriorating and that supervisors therefore need to be more
sensitive to problems at individual banks, both currently and in the months ahead. Some of the credits
that were made in earlier periods of optimism—
especially syndicated loans—are now under pressure
and scrutiny. The softening economy and/or special
circumstances have especially affected borrowers in
the retail, manufacturing, health care, and telecommunications industries. California utilities, as you
know, have also been under particular pressure. All
of these, and no doubt other problem areas that are
not now foreseeable, require that both bank management and supervisors remain particularly alert to
developments.
Second, we are fortunate that our banking system
entered this period of weak economic performance in
a strong position. After rebuilding capital and liquidity in the early 1990s, followed by several years of
post-World War II record profits and very strong loan
growth, our banks now have prudent capital and
reserve positions. In addition, asset quality was quite
good by historical standards before the deterioration
began. Moreover, in the last decade, as I will discuss
more fully in a moment, banks have improved their
risk management and control systems, which we
believe may have both strengthened the resultant
asset quality and shortened banks' response time to
changing economic events. This potential for an
improved reaction to cyclical weakness, and better
risk management, is being tested by the events of
recent quarters and may well be tested further in
coming quarters.
We can generalize from these recent events to
understand a bit better some relevant patterns in
banking, patterns that appear to be changing for the
better. The recent weakening in loan quality bears
some characteristics typical of traditional relationships of loans to the business cycle—the procyclicality of bank lending practices. The rapid
increase in loans, though typical of a normal expansion of the economy, was unusual in that it was
associated with more than a decade of uninterrupted
economic growth. As our economy expanded, business and household financing needs increased, and
projections of future outcomes turned increasingly
optimistic. In such a context, loan officers, whose
experience counsels that the vast majority of bad
loans are made in the latter stages of a business
expansion, have had the choice of (1) restraining
lending, and presumably losing market share, or



533

(2) hoping for repayment of new loans before conditions turn adverse. Given the limited ability to
foresee turning points, the competitive pressures led,
as has usually been the case, to a deterioration of
underlying loan quality as the peak in the economy
approached. Supervisors have had comparable problems. In a rising economy buffeted by competitive
banking markets, it is difficult to evaluate the embedded risks in new loans or to be sure that adequate
capital is being held. Even if correctly diagnosed,
making that supervisory case to bank management
can be difficult because, regrettably, incentives for
loan officers and managers traditionally have
rewarded loan growth, market share, and the profits
that derive from booking interest income with, in
retrospect, inadequate provisions for possible default.
Moreover, credit-risk specialists at banks historically
have had difficulty making their case about risk
because of their inability to measure and quantify it.
At the same time, with debt service current and
market-risk premiums cyclically low, coupled with
the same inability to quantify and measure risk,
supervisory criticisms of standards traditionally have
been difficult to justify.
When the economy begins to slow and the quality
of some booked loans deteriorates, as in the current
cycle, loan standards belatedly tighten. New loan
applications that earlier would have been judged
creditworthy, especially since the applications are
now being based on a more cautious economic outlook, are nonetheless rejected, when in retrospect it
will doubtless be those loans that would have been
the most profitable to the bank.
Such policies are demonstrably not in the best
interests of banks' shareholders or the economy. They
lead to an unnecessary degree of cyclical volatility in
earnings and, as such, to a reduced long-term capitalized value of the bank. More importantly, such policies contribute to increased economic instability. The
last few years have had some of the traditional characteristics I have just described: the substantial easing of terms as the economy improved, the rapid
expansion of the loan book, the deterioration of loan
quality as the economy slowed, and the cumulative
tightening of loan standards. But this interval has had
some interesting characteristics not observed in earlier expansions. First, in the mid-1990s, examiners
began to focus on banks' risk-management systems
and processes; at the same time, supervisors' observations about softening loan standards came both
unusually early in the expansion and were taken more
seriously than had often been the case. The turmoil
in financial markets in 1998, associated with both
the East Asian crisis and the Russian default, also

534

Federal Reserve Bulletin • August 2001

focused bankers' attention on loan quality during the
continued expansion in this country. And there was a
further induced tightening of standards last year in
response to early indications of deteriorating loan
quality, months before aggregate growth slowed.
All of this might have been the result of idiosyncratic events from which generalizations should not
be made. Perhaps. But at the same time another, more
profound development of critical importance had
begun: the creation at the larger, more sophisticated
banks of an operational loan process with a more or
less formal procedure for recognizing, pricing, and
managing risk. In these emerging systems, loans are
classified by risk, internal profit centers are charged
for equity allocations by risk category, and risk
adjustments are explicitly made. In short, the formal
measurement and quantification of risk has begun to
occur and to be integrated into the loan-making process. This is a sea change—or at least the beginning of one. Formal risk-management systems are
designed to reduce the potential for the unintended
acceptance of risk and hence should reduce the procyclical behavior that has characterized banking history. But, again, the process has just begun.
The federal banking agencies are trying to generalize and institutionalize this process in the current




efforts to reform the Basel Capital Accord. When
operational, near the middle of this decade, the
revised accord, Basel II, promises to promote not
only better risk management over a wider group of
banks but also less intrusive supervision once the
risk-management system is validated. It also promises less variability in loan policies over the cycle
because of both bank and supervisory focus on formal techniques for managing risk.
In recent years, we have incorporated innovative
ideas and accommodated significant change in banking and supervision. Institutions have more ways
than ever to compete in providing financial services.
Financial innovation has improved the measurement
and management of risk and holds substantial promise for much greater gains ahead. Building on bank
practice, we are in the process of improving both
lending and supervisory policies that we trust will
foster better risk management; but these policies
could also reduce the pro-cyclical pattern of easing
and tightening of bank lending and accordingly
increase bank shareholder values and economic stability. It is not an easy road, but it seems that we are
well along it.
•

535

Announcements
FEDERAL OPEN MARKET COMMITTEE
DIRECTIVE AND DISCOUNT RATE ACTION

The Federal Open Market Committee at its meeting
on June 27, 2001, decided to lower its target for the
federal funds rate by 25 basis points to 33A percent.
In a related action, the Board of Governors approved
a 25 basis point reduction in the discount rate to
3LA percent. The action by the FOMC brings the
decline in the target federal funds rate since the
beginning of the year to 275 basis points.
The patterns evident in recent months—declining
profitability and business capital spending, weak
expansion of consumption, and slowing growth
abroad—continue to weigh on the economy. The
associated easing of pressures on labor and product
markets is expected to keep inflation contained.
Although continuing favorable trends bolster longterm prospects for productivity growth and the economy, the Committee continues to believe that against
the background of its long-run goals of price stability
and sustainable economic growth and of the information currently available, the risks are weighted mainly
toward conditions that may generate economic weakness in the foreseeable future.
In taking the discount rate action, the Federal
Reserve Board approved requests submitted by the
boards of directors of the Federal Reserve Banks of
Boston, New York, Philadelphia, Atlanta, Chicago,
Dallas, and San Francisco.
Subsequently, the Federal Reserve Board approved
on June 28, 2001, actions by the boards of directors
of the Federal Reserve Banks of Cleveland, Richmond, Minneapolis, and Kansas City, decreasing the
discount rate at those banks from 3V2 percent to
3 !/4 percent, effective immediately.
The Federal Reserve Board also approved action
by the board of directors of the Federal Reserve Bank
of St. Louis, decreasing the discount rate at that bank
from 3'/2 percent to 3LA percent, effective Friday,
June 29, 2001.
BANKING AGENCIES ISSUE HOST STATE
LOAN-TO-DEPOSIT
RATIOS

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and



the Office of the Comptroller of the Currency issued
on June 28, 2001, the host state loan-to-deposit ratios
that the banking agencies will use to determine
compliance with section 109 of the Riegle-Neal
Interstate Banking and Branching Efficiency Act of
1994. These ratios update data released on March 23,
2000.
In general, section 109 prohibits a bank from establishing or acquiring a branch or branches outside its
home state primarily for the purpose of deposit production. Section 109 also prohibits branches of banks
controlled by out-of-state bank holding companies
from operating primarily for the purpose of deposit
production.
Section 109 provides a process to test compliance
with the statutory requirements. The first step in the
process involves a loan-to-deposit ratio screen that
compares a bank's statewide loan-to-deposit ratio
with the host state loan-to-deposit ratio for banks in a
particular state.
A second step is conducted if a bank's statewide
loan-to-deposit ratio is less than one-half of the published ratio for that state or if data are not available at
the bank to conduct the first step. The second step
requires the appropriate banking agency to determine
whether the bank is reasonably helping to meet the
credit needs of the communities served by the bank's
interstate branches.
A bank that fails both steps is in violation of
section 109 and is subject to sanctions by the appropriate banking agency.

JOINT AGENCY LETTER TO SEC ON
BROKER-DEALER
EXEMPTIONS

The Federal Reserve Board on July 2, 2001, joined
the Office of the Comptroller of the Currency and the
Federal Deposit Insurance Corporation in a letter to
the Securities and Exchange Commission (SEC) concerning the SEC's interim final rules to implement
provisions of the Gramm-Leach-Bliley Act that provide specific exemptions from the broker and dealer
definitions that permit banks to continue providing
trust and fiduciary, as well as other specified traditional banking, products and services.

536

FOMC

Federal Reserve Bulletin • August 2001

MEETING SCHEDULE FOR 2002

The Federal Open Market Committee announced
on July 16, 2001, its tentative meeting schedule for
2002. It is as follows: January 29-30 (TuesdayWednesday), March 19 (Tuesday), May 7 (Tuesday),
June 25-26 (Tuesday-Wednesday), August 13
(Tuesday), September 24 (Tuesday), November 6
(Wednesday), and December 10 (Tuesday).

tion with the operations and activities of the Strategic
Trading Group of the bank.
U.S. Trust Corporation and the United States Trust
Company of New York are paying to the Board a
civil money penalty in the amount of $5 million and
are making a $5 million monetary payment to the
state of New York.

PUBLICATION OF THE ANNUAL REPORT AND
BUDGET REVIEW
ENFORCEMENT

ACTIONS

The Federal Reserve Board announced on June 21,
2001, the issuance of an order of prohibition against
Nelly Kann de Gouverneur, a former employee and
institution-affiliated party of Banco Mercantil, C.A.,
S.A.C.A., New York Agency, New York.
Ms. Kann, without admitting to any allegations,
consented to the issuance of the order based on her
alleged violations of law and unsafe and unsound
practices in connection with the structuring of deposits of cash and monetary instruments by private banking customers of Mercantil resulting in violations of
the Currency and Foreign Transactions Report Act
(31 U.S.C. §5311 et seq.)
The Federal Reserve Board announced on July 2,
2001, the issuance of a cease and desist order against
Harvey Plante, a former officer and institutionaffiliated party of the Bankers Trust Company,
New York, New York.
The Federal Reserve Board announced on July 12,
2001, the issuance of an order to cease and desist
against the Bank of Rogers, Rogers, Arkansas.
The Federal Reserve Board and the New York
State Banking Department announced on July 13,
2001, the joint issuance of a combined consent order
to cease and desist and an assessment of a civil
money penalty and monetary payment against U.S.
Trust Corporation, a bank holding company, and
its subsidiary, the United States Trust Company of
New York, a state-chartered bank.
U.S. Trust Corporation and the United States Trust
Company of New York, without admitting to any
allegations, consented to the issuance of the order in
connection with alleged violations and deficiencies
relating to the lack of internal controls and procedures and inadequate compliance with the Bank
Secrecy Act and relating to the failure to maintain
accurate and complete books and records in connec


The 87th Annual Report, 2000, of the Board of Governors of the Federal Reserve System, covering
operations for the calendar year 2000, is now available from Publications Services, Mail Stop 127,
Board of Governors of the Federal Reserve System,
Washington, DC 20551, or phone 202-452-3244 or
3245. Also available from Publications Services is a
separately printed companion document, Annual
Report: Budget Review, 2001, which describes the
budgeted expenses of the Federal Reserve Banks
for 2001, the 2001 phase of the Board's current
two-year (2000-01) budget, and income and expenses
for 1999 and 2000. This year's report includes a
chapter on the modernization of the Banks' checkprocessing system. Both reports are also available
on the Federal Reserve Board's web site: http://
www.federalreserve.gov.

CHANGES IN BOARD STAFF

The Federal Reserve Board announced on June 11,
2001, the appointments of Donald Kohn as Adviser
to the Board for Monetary Policy in the Office of
Board Members, Vincent Reinhart as Director of the
Division of Monetary Affairs, and Brian Madigan
as Deputy Director of the Division of Monetary
Affairs, all effective July 2, 2001.
Mr. Kohn will continue as Secretary of the Federal
Open Market Committee, with responsibility for
briefing the Committee and for its announcements,
minutes, and transcripts. Mr. Kohn has been the
Director of the Division of Monetary Affairs since
1987 but is relinquishing management of the division
and will focus on issues related to monetary policy.
Mr. Reinhart joined the Federal Reserve Bank of
New York in 1983 and moved to the Division of
Monetary Affairs at the Board in 1988. He was
named an officer of the Board in 1994 and was
named deputy associate director in 1998. In 1999,
Mr. Reinhart transferred to the Division of International Finance where, as deputy director, he had

Announcements

responsibility for the sections for International Banking, Financial Markets, International Financial Transactions, and Trade and Quantitative Studies.
Mr. Madigan joined the Board's staff in 1979 as an
economist in the Division of Research and Statistics.
He was promoted to senior economist in 1984 and
became chief of the banking section in 1985. In 1987,
he was named an officer of the Board. In 1988,
Mr. Madigan joined the Division of Monetary Affairs
and was promoted to associate director in 1993.
The Federal Reserve Board announced on June 18,
2001, the following official staff promotion and
appointment, effective August 6, 2001.
• The promotion of Robert deVere Frierson to
Deputy Secretary of the Board
• The appointment of Margaret McCloskey Shanks
as Assistant Secretary of the Board, replacing
Barbara R. Lowrey, Associate Secretary of the Board,
upon her retirement.




537

Mr. Frierson will oversee all the functions in the
office and directly supervise preparing the Board's
minutes, distributing information to and from the
Board, publishing the Federal Reserve Regulatory
Service and associated manuals, and providing general administrative support. He joined the Office of
the Secretary in 1998 as an associate secretary after
eleven years in the Legal Division, where he attained
the position of assistant general counsel.
Ms. Shanks will supervise managing the Board's
records, responding to requests under the Freedom of
Information Act, providing conference planning and
other visitor services, overseeing the appointment of
Federal Reserve Bank and Branch directors, and providing temporary executive secretarial services. She
joined the Board in 1991 as a senior attorney in the
Legal Division. Ms. Shanks received her undergraduate degree from DePaul University and her J.D.
degree from Loyola University.
•

538

Minutes of the Meeting of the
Federal Open Market Committee
Held on May 15, 2001
A meeting of the Federal Open Market Committee
was held in the offices of the Board of Governors
of the Federal Reserve System in Washington, D.C.,
on Tuesday, May 15, 2001, starting at 9:00 a.m.
Present:
Mr. Greenspan, Chairman
Mr. McDonough, Vice Chairman
Mr. Ferguson
Mr. Gramlich
Mr. Hoenig
Mr. Kelley
Mr. Meyer
Ms. Minehan
Mr. Moskow
Mr. Poole
Messrs. Jordan, McTeer, Santomero, and Stern,
Alternate Members of the Federal Open Market
Committee
Messrs. Broaddus, Guynn, and Parry, Presidents
of the Federal Reserve Banks of Richmond,
Atlanta, and San Francisco respectively
Mr. Kohn, Secretary and Economist
Mr. Gillum, Assistant Secretary
Ms. Fox, Assistant Secretary
Mr. Mattingly, General Counsel
Ms. Johnson, Economist
Mr. Stockton, Economist
Ms. Cumming, Messrs. Fuhrer, Hakkio, Howard,
Lindsey, Rasche, Reinhart, Slifman, and Wilcox,
Associate Economists
Mr. Kos, Manager, System Open Market Account
Mr. Ettin, Deputy Director, Division of Research and
Statistics, Board of Governors
Mr. Simpson, Senior Adviser, Division of Research
and Statistics, Board of Governors
Messrs. Connors,1 Madigan, Oliner, and Struckmeyer,
Associate Directors, Divisions of International
Finance, Monetary Affairs, Research and
Statistics, and Research and Statistics,
Board of Governors
1. Attended portion of meeting relating to staff briefings.




Mr. Whitesell, Assistant Director, Division
of Monetary Affairs, Board of Governors
Mr. Skidmore, Special Assistant to the Board,
Office of Board Members, Board of Governors
Mr. Kumasaka, Assistant Economist, Division
of Monetary Affairs, Board of Governors
Ms. Low, Open Market Secretariat Assistant,
Division of Monetary Affairs, Board
of Governors
Mr. Connolly, First Vice President, Federal Reserve
Bank of Boston
Messrs. Beebe, Eisenbeis, and Goodfriend,
Mses. Mester and Perelmuter,
Messrs. Rosenblum and Sniderman, Senior
Vice Presidents, Federal Reserve Banks
of San Francisco, Atlanta, Richmond,
Philadelphia, New York, Dallas, and
Cleveland respectively
Mr. Sullivan, Vice President, Federal Reserve Bank
of Chicago
Mr. Weber, Senior Research Officer, Federal Reserve
Bank of Minneapolis

By unanimous vote, the minutes of the meeting
of the Federal Open Market Committee held on
March 20, 2001, were approved.
The Manager of the System Open Market Account
reported on recent developments in foreign exchange
markets. There were no open market operations in
foreign currencies for the System's account in the
period since the previous meeting.
The Manager also reported on developments in
domestic financial markets and on System open market transactions in government securities and federal
agency obligations during the period March 20, 2001,
through May 14, 2001. By unanimous vote, the Committee ratified these transactions.
By unanimous vote, the Committee approved the
extension for one year beginning in December 2001
of the System's reciprocal currency ("swap")

539

arrangements with the Bank of Canada and the Bank
of Mexico. The arrangement with the Bank of Canada
is in the amount of $2 billion equivalent and that
with the Bank of Mexico in the amount of $3 billion
equivalent. Both arrangements are associated with
the Federal Reserve's participation in the North
American Framework Agreement. The early vote to
renew the System's participation in the swap arrangements maturing in December relates to the provision
that each party must provide six months prior notice
of an intention to terminate its participation.
The Committee then turned to a discussion of the
economic and financial outlook and the implementation of monetary policy over the intermeeting period
ahead. A summary of the economic and financial
information available at the time of the meeting and
of the Committee's discussion is provided below,
followed by the domestic policy directive that was
approved by the Committee and issued to the Federal
Reserve Bank of New York.
The information reviewed at this meeting suggested that the economic expansion remained very
sluggish. Household spending, especially for housing
and motor vehicles, had held up relatively well, but
business investment was quite weak and appeared to
be decreasing further. Persistent inventory overhangs
in a number of sectors had led to additional substantial cuts in manufacturing production. Reflecting in
part the downtrend in manufacturing output, labor
demand had weakened considerably and unemployment had risen. Price inflation had picked up a little
but, abstracting from energy, had remained relatively
subdued.
Private nonfarm payroll employment fell sharply
in April after a small drop in March. Manufacturing,
construction, and the service sector recorded large
payroll declines in April, and gains elsewhere were
small. The unemployment rate increased further, to
4.5 percent in April, and initial claims for unemployment insurance averaged over the four weeks ended
April 28 were at their highest level since 1993.
Industrial production declined appreciably further
in April. Manufacturing output registered a seventh
consecutive monthly drop, while a robust boost to
mining activity associated with strong gains in crude
oil and gas production was offset by a decrease in
utilities output in a period of unusually warm
weather. In manufacturing, the production of motor
vehicles and parts was unchanged in April after having surged in February and March, but the output
of high-tech equipment continued to trend steeply
downward, and there was widespread weakness in
the manufacture of other industrial products. Reflecting the production cutbacks, the rate of utilization of



manufacturing capacity fell even further below its
long-run average.
Consumer spending had held up relatively well
thus far this year despite the deceleration in personal
incomes, reduced household net worth, and deterioration in consumer sentiment since last autumn. After
a solid first-quarter gain, nominal retail sales rose
briskly in April, reflecting strong outlays at general
merchandise and apparel stores, building and material outlets, and automotive dealers. Growth of spending on services slowed in the first quarter (latest
data), partly because of a weather-related drop in
consumption of energy services.
Low mortgage rates continued to provide support
to residential building activity. The first-quarter average for total housing starts was the strongest quarterly reading in a year despite a March decline in
starts that might have been exaggerated by unusual
weather patterns. In addition, sales of new and existing homes remained brisk through March. New home
sales reached a new high in March, and sales of
existing homes were only a little below their record
high in June 1999.
Against the background of a sluggish economy and
deteriorating earnings, business capital spending on
equipment and software declined somewhat further
in the first quarter. Increased purchases of cars and
trucks were among the few areas of strength in business equipment expenditures; elsewhere, outlays for
high-tech equipment decreased on a quarterly basis
for the first time since the 1990 recession, and spending for equipment such as industrial machinery
changed little. Moreover, recent data on orders for
nondefense capital goods suggested that some further
slippage in future spending for equipment was likely.
By contrast, nonresidential construction continued to
expand briskly; expenditures for oil and gas exploration surged in the first quarter, and nonresidential
building activity continued at a rapid pace, with
sizable gains recorded for most major categories of
buildings.
Business inventories on a book-value basis fell
steeply further in March, with roughly half of the
decline reflecting a runoff of motor vehicle stocks
at the wholesale and retail levels. Despite the sharp
liquidation of inventories in the manufacturing sector
in February and March, the aggregate inventoryshipments ratio for that sector edged higher in March
to a level well above that of a year ago. In the
wholesale trade sector, aggregate stocks dropped
somewhat on balance in the first quarter and the
sector's stock-sales ratio edged lower; nonetheless,
the sector's ratio in March also was above its level of
a year earlier. Retail inventories ran off in February

540

Federal Reserve Bulletin • August 2001

and March after a small January rise, and the sector's
inventory-sales ratio decreased somewhat on balance
to around the middle of its range for the past twelve
months.
The U.S. trade deficit in goods and services narrowed considerably in February, reflecting a further
rise in the value of exports and a sharp drop in the
value of imports. The average deficit for the first two
months of the year was smaller than that for the
fourth quarter. Nonetheless, exports for the JanuaryFebruary period were below the fourth-quarter average, with notable declines occurring in automotive
products, industrial supplies, and semiconductors.
The slowdown in imports in January-February was
broadly spread across trade categories, with the largest decreases occurring in automotive products, hightech goods, and oil. Recent information indicated that
economic activity in the foreign industrial countries
had decelerated since the fourth quarter. Expansion
in the euro area, the United Kingdom, and Canada
appeared to have slowed significantly, while the Japanese economy seemed to have faltered after a brief
rebound late last year. In addition, economic growth
in the major developing countries had softened markedly, with the slowdown in most of those countries
reflecting weaker external demand.
Overall inflation had been held down thus far this
year by a deceleration in energy prices, but by some
measures core price inflation had picked up a bit. The
total consumer price index (CPI) increased moderately in February and March (latest data), and the
increase in that index during the past twelve months
was smaller than that during the previous twelvemonth period, reflecting reduced increases in energy
prices. By contrast, core CPI inflation picked up
slightly in the February-March period and on a yearover-year basis. However, inflation as measured by
the core personal consumption expenditure (PCE)
chain-type price index, though also running a little
higher in February-March, recorded a small decline
on a year-over-year basis. At the producer level, core
finished goods inflation was subdued in March and
April but moved up somewhat on a year-over-year
basis. With regard to labor costs, growth in the
employment cost index (ECI) for hourly compensation picked up noticeably in the first quarter of this
year; however, the gain in compensation for the four
quarters ended in March was a little below the large
increase for the four-quarter period ended in March
2000. By contrast, average hourly earnings of production or nonsupervisory workers rose more briskly in
April and on a year-over-year basis.
At its meeting on March 20, 2001, the Committee
adopted a directive that called for maintaining condi


tions in reserve markets consistent with a decrease of
50 basis points in the intended level of the federal
funds rate, to about 5 percent. This action, in conjunction with a further easing of Vi percentage point on
April 18, was intended to help promote a more satisfactory economic expansion going forward. Under
then-current conditions, the members agreed that the
balance of risks remained weighted toward conditions that could generate economic weakness in the
foreseeable future.
Federal funds traded at rates near the Committee's
target levels over the intermeeting period. Other
short-term interest rates generally fell somewhat less
than the reduction in the federal funds rate because
the markets had anticipated the easing in policy,
though only in part. In contrast to the declines in
short-term rates, longer-term yields rose on balance
as investors apparently became more confident of
a pickup in output growth, supported in part by
improved prospects for substantial federal tax reductions. The more optimistic assessment of the economic outlook and the unexpected intermeeting easing action apparently contributed to a narrowing of
risk premiums on lower-grade private debt obligations and to a rise in equity prices. Better-thanexpected first-quarter earnings also boosted stock
prices, and broad indexes of U.S. stock market prices
moved substantially higher.
In foreign exchange markets, the trade-weighted
value of the dollar in terms of many of the major
foreign currencies changed little on balance over the
intermeeting interval. A number of major foreign
central banks cut their policy rates during the period,
but by less than the two easing steps in the United
States. The dollar's appreciation against the euro was
offset by its decline in terms of the yen and the
Canadian dollar. The dollar also was essentially
unchanged in terms of an index of the currencies
of other important trading partners. The value of the
Mexican peso rose appreciably against the dollar as
monetary authorities maintained their tight policy
stance and as spreads on Mexican debt narrowed. In
contrast, concerns about potential spillovers from
Argentina's worsening financial difficulties depressed
the value of the Brazilian real relative to the dollar.
The broad monetary aggregates continued to grow
rapidly in March and April. In addition to the effects
of lower market interest rates, extensive mortgage
financing activity and a flight to safety from volatile
equity markets likely added to M2's strong upward
trend. The expansion of M3 was bolstered by robust
growth of institution-only money funds and by
greater issuance of managed liabilities included in
this aggregate to help finance faster growth of bank

Minutes of the Federal Open Market Committee

credit and a shift in bank funding from foreign to U.S.
sources. The debt of domestic nonfinancial sectors
had grown at a moderate pace on balance through
April.
The staff forecast prepared for this meeting suggested that, after a period of slow growth associated
in part with an inventory correction, the economic
expansion would gradually regain strength over the
next two years and move back toward a rate near the
staff's current estimate of the growth of the economy's potential output. The period of subpar expansion was expected to foster an easing of pressures on
resources and some moderation in core price inflation. Despite the substantial easing in the stance of
monetary policy, the forecast anticipated that the
expansion of domestic final demand would be held
back to an extent by some of the developments in
financial markets—in particular, the decline in household net worth associated with the earlier downturn
in equity prices, the continuation of relatively stringent terms and conditions on some types of loans
by financial institutions, and the appreciation of the
dollar. Partly as a result of the decline in household
wealth, growth of consumer spending was expected
to remain relatively low for some time, and housing
demand would increase only a little from its recent
level. However, business fixed investment, notably
outlays for equipment and software, would resume
relatively good growth after a period of adjustment of
capital stocks to more desirable levels; a projected
recovery in the growth of foreign economies was
seen as providing increased support for U.S. exports;
and fiscal policy was assumed to become more
expansionary.
In the Committee's discussion of current and prospective economic developments, members commented that the slowdown in the expansion to a now
quite sluggish pace was likely to be more prolonged
than they had anticipated earlier and indeed, with the
economy displaying some signs of fragility and
inventories still appearing excessive in some sectors,
it was not entirely clear that the slowing in the
growth of the economy had bottomed out. Despite
the crosscurrents and uncertainties that were
involved, members saw an upturn in the economic
expansion by later in the year as the most likely
outlook. This view was premised in large measure
on the lagged effects of the Committee's relatively
aggressive easing actions this year, including any
further easing that might be adopted at this meeting,
growing prospects of some fiscal policy stimulus
later in the year, and more generally the favorable
effects of still substantial productivity gains on profit
opportunities and income growth and hence on busi


541

ness and household demands for goods and services.
As business profits stabilized and final demand
firmed, inventory liquidation would come to an end,
adding to the upward momentum of economic activity. The members were uncertain as to the degree and
timing of the strengthening in final demand, and
although a relatively prompt and strong rebound
could not be ruled out, many saw a variety of factors
that pointed to the possibility that the upturn could be
weaker or more delayed than the central tendencies
of their expectations. With regard to the outlook for
inflation, a number of members expressed concern
about a tendency for some measures of inflation to
edge higher this year, but many members expected
that the easing of pressures in labor and product
markets that already had occurred, and that was likely
to continue in the months ahead, would damp inflation going forward.
In their review of developments across the nation,
members referred to quite sluggish economic conditions in many parts of the country. Weakness
remained especially pronounced in manufacturing,
but as reflected in the employment data for April and
in widespread anecdotal reports, softening had spread
to other sectors of the economy as well. At the same
time, pockets of strength could be found in a number
of industries, notably in energy and construction, and
overall business activity continued to display considerable vigor in a number of regions. Members noted
that business confidence had deteriorated, but some
also observed that the pessimism tended to be limited
to the nearer term and was accompanied by favorable
expectations regarding the outlook later in the year
and in 2002.
With regard to the outlook for key sectors of the
economy, a number of members commented that
consumer spending had held up reasonably well in
recent months despite a variety of adverse developments including the negative wealth effects of stock
market declines, widely publicized job cutbacks,
heavy consumer debt loads, and previous overspending by many consumers. A recent survey had indicated that consumer sentiment had firmed a little, but
the survey results had yet to be confirmed by additional surveys and the level of consumer confidence
was still well below earlier highs. As in the past,
consumer spending attitudes likely would depend
importantly on trends in employment and income,
and further increases in unemployment in the period
just ahead along with the negative wealth effects of
earlier stock market price declines and the persistence of high energy costs were likely to constrain
the growth in consumer expenditures over coming
quarters.

542

Federal Reserve Bulletin • August 2001

Household expenditures on home construction had
been maintained at a relatively robust level in recent
months, evidently reflecting the cushioning effects of
very attractive mortgage interest rates. Housing activity was described as a source of strength in many
regions. Housing prices had tended to edge higher
across the nation, though there were signs that the
price appreciation had eased in some parts of the
country, notably on the West Coast. While the prevailing negative influences on household spending
might spill over a bit more to housing activity during
the year ahead, there were few current developments
in housing markets that might be read as signaling
any marked weakening in this sector of the economy.
A softening in business demand for capital equipment had accounted for much of the slowdown in the
growth of final demand in late 2000 and early 2001.
The latest available data on new orders pointed to
further, and possibly larger, declines in business
spending on equipment and software over the months
ahead. Members cited anecdotal and survey reports
that indicated many business firms were canceling,
cutting back, or stretching out planned capital expenditures. It was difficult to see any signs of a significant near-term turnaround in business spending for
equipment and software, and the timing and strength
of a subsequent rebound would depend importantly
on the outlook for sales and profits. With regard to
profit expectations, the most recent data showed continued markdowns, but the pace of downward revisions was diminishing. It was too early to conclude
that the outlook for profits might be approaching a
degree of stability or be near the point of turning up,
and in any event it was clear that business sentiment
currently was quite gloomy. Looking to the future,
however, members anticipated that continuing gains
in efficiency engendered by new technologies would
provide substantial profit opportunities and likely
strengthen investment spending during the course of
the year ahead. In the meantime, nonresidential construction and energy-related investments were a
source of some support to investment spending, but
they provided only a very partial offset to widespread
weakness in other business spending.
Ongoing efforts to reduce excess inventories were
continuing to curb output in manufacturing industries
and to restrain growth in overall economic activity. A
number of members commented that anecdotal and
other evidence suggested that considerable progress
already had been made in scaling down unwanted
inventories, notably of motor vehicles, but substantial
further progress probably would be needed in hightech industries where sales were still falling. How
long inventory cutbacks would continue to exert a



significant drag on the economic expansion remained
a key uncertainty in the economic outlook. In the
view of many members, the adjustment process might
not be substantially completed until much later in the
year and could take even longer for high-tech firms.
This evaluation assumed continued sluggish growth
in final demand during the period immediately ahead.
Stronger growth, which could not be ruled out, would
of course bring inventory-sales ratios to desired
levels more quickly.
Members also expressed concern about the potential implications for U.S. expansion from developments abroad. To some extent, economic difficulties
in foreign nations had occurred in concert with softening activity in the United States, and notable weakness in world high-tech markets along with the downward adjustment in equity prices globally represented
a downside risk factor worldwide. The anticipated
recovery in this country would help to strengthen
many foreign economies and in turn improve prospects for U.S. exports. Members noted, however, that
in some nations persisting structural problems presented threats to national economic prosperity and
international trade. On balance, while the external
risks to the U.S. economy clearly were to the downside, at least over the nearer term, the prospective
rebound in U.S. economic activity and stimulative
macroeconomic policies abroad were expected to
contribute to strengthening growth worldwide and
to improving prospects for exports during the year
ahead.
The nation's fiscal outlook was seen as supportive
of aggregate demand. While the exact structure of tax
cuts was still being negotiated, passage of new fiscal
measures seemed imminent and likely would help
bolster consumption spending beginning later in the
year. Whatever its precise timing, the expansionary
fiscal package would undoubtedly join at some point
in coming quarters with the lagged effects of the
System's policy easing actions to foster strengthening economic expansion.
A number of members commented that the persisting updrift in some key measures of core inflation
had become increasingly worrisome. In this regard,
they noted that some of the recent increases in bond
yields could represent a rise in long-term inflation
expectations. Such a rise would not be entirely unexpected in the context of improving sentiment about
the strength of the expansion, the potentially adverse
implications for costs of the cyclical weakness in
productivity, and the possibility that high energy
prices and their passthrough effects might persist
longer than had been anticipated earlier. To a considerable extent, however, any uptick in inflation expec-

Minutes of the Federal Open Market Committee

tations likely represented a reversal of anticipated
declines in inflation earlier this year when economic
prospects had seemed weaker and survey data did not
confirm any increase in long-term inflation expectations. Moreover, not all measures of core inflation
had accelerated; in particular, core PCE price inflation had been quite stable on a twelve-month basis
for some time.
Looking ahead, most members did not foresee a
significant rise in inflation as a likely prospect. They
cited the prevalence of highly competitive conditions
in most markets, which continued to make it very
difficult for business firms to raise prices despite
pressures to do so in a period of rising labor, energy,
and other costs. Widespread evidence of some lessening of pressures in most labor markets across the
nation had not yet resulted in lower wage inflation,
but the members expected that recent and anticipated
ebbing of pressures on labor and other resources and
associated slack in product markets in a period of
continuing subpar economic growth, along with projected declines in energy prices, would hold down
inflation over the forecast horizon. Nonetheless, there
were some risks of rising inflation. An unexpectedly
strong rebound in economic growth could begin to
put added upward pressure on prices at a time when
labor markets were still tight by historical standards
and accelerating productivity no longer held down
increases in unit labor costs. Given the lags in the
effectiveness of monetary policy, such pressure
might materialize before the effects of countervailing actions by the Committee had a chance to
take hold.
In the Committee's discussion of policy for the
forthcoming intermeeting period, all but one of the
members indicated that they could support a proposal
calling for further easing of reserve conditions consistent with a 50 basis point reduction in the federal
funds rate to a level of 4 percent. One member
expressed a strong preference for a 25 basis point
reduction and two others indicated that they could
have accepted that more limited easing move.
Despite their somewhat differing preferences, all the
members agreed that further easing was desirable in
light of what they viewed as the continuing weakness
in the economy, the absence of evidence that growth
had stabilized or was about to rebound, and still
decidedly downside risks to the economic expansion.
Some members noted that, although policy had been
eased substantially, it might still be considered to be
only marginally accommodative in relation to the
forces that were damping aggregate demand. Accordingly, the action contemplated for today was needed
to provide adequate stimulus to an economy whose



543

outlook for significant strengthening remained tenuous in a climate of fragile business and consumer
confidence. Members noted that the lagged effects
of the monetary policy easing implemented earlier
this year were still very hard to discern, though they
should be felt increasingly over the year ahead. In
this regard the risks of rising inflation could not be
dismissed, and while those risks appeared to be quite
limited for the nearer term, excessive monetary
stimulus had to be avoided to avert rising inflation
expectations and added inflation pressures over time.
Members who preferred or could support a 25 basis
point easing action gave particular emphasis to the
desirability at this point of taking and signaling a
more cautious approach to policy, relative to the
50 basis point federal funds rate reductions the Committee had been implementing, given the lagged
effects of the substantial reduction in the federal
funds rate to date, the accompanying buildup in
liquidity, and the related risk that a further aggressive
easing action would increase the odds of an overly
accommodative policy stance and rising inflation
pressures in the future.
All the members accepted a proposal to include in
the press statement to be released after this meeting a
sentence indicating that the Committee continued to
regard the risks to the economic outlook as being
tilted toward weakness even after today's easing
action. Forecasts of growth in business earnings and
spending continued to be revised down, and until that
process ended, weakness in demand seemed to be the
main threat to satisfactory economic performance.
At the same time the members anticipated that a
neutral balance of risks statement could be appropriate before long, probably well before substantial
evidence had emerged that economic growth had
strengthened appreciably, once the Committee could
see that policy had eased enough to promote a future
return to maximum sustainable economic growth.
Indeed, it was not clear how much more the federal
funds rate might have to be reduced after today in the
absence of further significantly adverse shocks, and
some members noted that the end of the easing
process might be near. Even so, with the economy
perhaps still in the midst of a process of weakening
growth in aggregate demand of unknown persistence
and dimension, the members generally agreed that,
given prevailing uncertainties, it would be premature
for the Committee to shift its balance of risks statement at this time.
At the conclusion of this discussion, the Committee voted to authorize and direct the Federal Reserve
Bank of New York, until it was instructed otherwise, to execute transactions in the System Account

544

Federal Reserve Bulletin • August 2001

in accordance with the following domestic policy
directive:
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability and
promote sustainable growth in output. To further its
long-run objectives, the Committee in the immediate
future seeks conditions in reserve markets consistent with
reducing the federal funds rate to an average of around
4 percent.

The vote encompassed approval of the sentence
below for inclusion in the press statement to be
released shortly after the meeting:
Against the background of its long-run goals of price
stability and sustainable economic growth and of the information currently available, the Committee believes that the
risks continue to be weighted mainly toward conditions
that may generate economic weakness in the foreseeable
future.
Votes for this action: Messrs. Greenspan, McDonough,
Ferguson, Gramlich, Kelley, Meyer, Ms. Minehan,
Messrs. Moskow and Poole. Vote against this action:
Mr. Hoenig.

Mr. Hoenig dissented because he preferred a less
aggressive easing action involving a reduction of




25 basis points in the federal funds rate. While the
risks of weaker economic growth still tended to dominate those of rising inflation and called for some
further easing, the Committee had added significant
liquidity to the economy this year through its cumulatively large easing actions. The lagged effects of
those actions should be felt increasingly over time.
Moreover, following the rapid and aggressive policy
actions already taken, a more cautious policy move at
this point would in his view appropriately limit the
risks of producing an overly accommodative policy
stance and rising inflation over time.
The Chairman called for a recess after this vote
and convened a meeting of the Board of Governors to
consider one-half percentage point reductions in the
discount rate that had been proposed by a number of
Federal Reserve Banks. After the recess, the Chairman informed the Committee that the pending reductions had been approved.
It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday,
June 26-27, 2001.
The meeting adjourned at 1:15 p.m.
Donald L. Kohn
Secretary

545

Legal Developments
ORDERS ISSUED UNDER BANK HOLDING COMPANY
ACT

Orders Issued Under Sections 3 and 4 of the Bank
Holding Company Act
BB&T Corporation
Winston-Salem, North Carolina
Order Approving the Acquisition of a Bank Holding
Company
BB&T Corporation, Winston-Salem, North Carolina
("BB&T"), a financial holding company within the meaning of the Bank Holding Company Act ("BHC Act"), has
requested the Board's approval under section 3 of the BHC
Act (12 U.S.C. § 1842) to acquire F&M National Corporation, Winchester, Virginia ("F&M"), 1 and its eleven
wholly owned subsidiary banks. 2 BB&T also has requested
the Board's approval under sections 4(c)(8) and 4(j) of the
BHC Act (12 U.S.C. §§ 1843(c)(8) and (j)) to acquire
F&M's nonbanking subsidiaries:
(1) F&M Trust Company, also in Winchester, Virginia,
and thereby engage in trust company activities pursuant
to section 225.28(b)(5) of Regulation Y (12 C.F.R.
§ 225.28(b)(5)), and
(2) Johnson Mortgage Company, LLC, Newport News,
Virginia, and thereby engage in mortgage banking activities pursuant to section 225.28(b)(1) of Regulation Y
(12 C.F.R. § 225(b)(1)).
Notice of the proposal, alfording interested persons an
opportunity to submit comments, has been published (66
Federal Register 23,255, and 28,163 (2001)). The time for
filing comments has expired, and the Board has considered
the proposal and all comments received in light of the
factors set forth in sections 3 and 4 of the BHC Act.
BB&T, with total consolidated assets of $59.3 billion,
operates depository institutions in Alabama, North Carolina, Georgia, South Carolina, Maryland, Tennessee, Kentucky, Virginia, West Virginia, and the District of Columbia. 3 BB&T is the sixth largest commercial banking
organization in Virginia, controlling deposits of $5.1 bil-

1. In addition, BB&T has requested the Board's approval to exercise an option to acquire up to 9 percent of F&M's voting shares if
certain events occur. The option would expire on consummation of the
proposal.
2. The subsidiary banks of F&M are listed in Appendix A.
3. Asset data are as of December 31, 2000. In this context, depository institutions include commercial banks, savings banks, and savings associations.




lion, representing approximately 6.3 percent of total deposits in insured depository institutions in the state ("state
deposits"). 4 BB&T is the largest commercial banking
organization in West Virginia, controlling deposits of
$3.8 billion, representing 18.9 percent of state deposits.
BB&T is the eighth largest commercial banking organization in Maryland, controlling deposits of $2.6 billion, representing 4.4 percent of state deposits.
F&M is the seventh largest commercial banking organization in Virginia, controlling total deposits of approximately $3 billion, representing approximately 3.7 percent
of state deposits. F&M is the eleventh largest commercial
banking organization in West Virginia, controlling deposits
of $266 million, representing 1.3 percent of state deposits.
F&M is the 25th largest commercial banking organization
in Maryland, controlling deposits of $193 million, representing less than 1 percent of state deposits.
On consummation of the proposal, and after taking the
proposed divestitures into account, BB&T would become
the fifth largest commercial banking organization in Virginia, controlling deposits of $8 billion, representing approximately 9.8 percent of state deposits. BB&T would
remain the largest commercial banking organization in
West Virginia, controlling deposits of approximately
$4 billion, representing approximately 20 percent of state
deposits. BB&T would remain the eighth largest commercial banking organization in Maryland, controlling deposits
of $2.8 billion, representing approximately 4.7 percent of
state deposits.
Interstate

Analysis

Section 3(d) of the BHC Act allows the Board to approve
an application by a bank holding company to acquire
control of a bank located in a state other than the home
state of such bank holding company if certain conditions
are met. 5 For purposes of the BHC Act, the home state of
BB&T is North Carolina, and F&M's subsidiary banks are
located in Virginia, West Virginia and Maryland. 6 Based
on a review of the facts of record, including a review of the
relevant state statutes, the Board finds that all the condi-

4. Deposit and ranking data are as of June 30, 2000, and reflect
acquisitions as of April 12, 2001.
5. See 12 U.S.C. § 1842(d). A bank holding company's home state
is the state in which the total deposits of all banking subsidiaries of
such company were the largest on July 1, 1966, or the date on which
the company became a bank holding company, whichever is later.
12 U.S.C. § 1841(o)(4)(C).
6. For purposes of section 3(d) of the BHC Act, the Board considers
a bank to be located in the states in which the bank is chartered,
headquartered, or operates a branch.

546

Federal Reserve Bulletin • August 2001

tions enumerated in section 3(d) of the BHC Act for an
interstate acquisition are met in this case.7 In light of all the
facts of record, the Board is permitted to approve the
proposal under section 3(d) of the BHC Act.
Competitive Considerations
Section 3 of the BHC Act prohibits the Board from approving a proposal that would result in a monopoly or would be
in furtherance of an attempt to monopolize the business of
banking. Section 3 also prohibits the Board from approving
a proposal that would substantially lessen competition in
any relevant banking market unless the anticompetitive
effects of the proposal in that banking market are clearly
outweighed in the public interest by the probable effect of
the proposal in meeting the convenience and needs of the
community to be served.8
BB&T and F&M compete directly in the following
seventeen banking markets: Annapolis, Maryland; Alleghany, Charlotte, Charlottesville, Danville, Emporia, Fredericksburg, Harrisonburg, Lynchburg, Newport NewsHampton, Norfolk-Portsmouth, Richmond, Roanoke,
Staunton, and Winchester, all in Virginia; Martinsburg,
West Virginia; and Metropolitan Washington, D.C.9 The
Board has reviewed carefully the competitive effects of the
proposal in each of these banking markets in light of all the
facts of record, including the number of competitors that
would remain in the market, the share of total deposits in
depository institutions in the market ("market deposits")
controlled by the companies involved in the proposal,10 the
concentration level of deposits in the market and the increase in this level as measured by the HerfindahlHirschman Index ("HHI") under the Department of Justice
Merger Guidelines ("DOJ Guidelines"), and other characteristics of each markets.11

7. See 12 U.S.C. §§ 1842(d)(1)(A) and (B) and 1842(d)(2)(A).
BB&T is well capitalized and well managed. On consummation of the
proposal, BB&T would control less than 10 percent of the total
amount of deposits of insured depository institutions in the United
States and less than 30 percent of the total amount of deposits of
insured depository institutions in Virginia, West Virginia, and Maryland. None of the relevant states has minimum age laws that are
applicable to this transaction. See Va. Code Ann. § 6.1-44.20 (Michie
1999); W. Va. Code §§ lA-2-12a(c) and 31A-8A-5(b) (Michie 1996).
8. See 12 U.S.C. § 1842(c).
9. The banking markets are defined in Appendix B.
10. Market share data for all banking markets are as of June 30,
2000. These data are based on calculations that include the deposits of
thrift institutions at 50 percent. The Board previously has indicated
that thrift institutions have become, or have the potential to become,
significant competitors of commercial banks. See, e.g., 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).
11. Under the DOJ Guidelines, 49 Federal Register 26,823
(June 29, 1984), a market is considered unconcentrated when the
post-merger HHI is less than 1000 points, moderately concentrated
when the post-merger HHI is between 1000 and 1800, and highly
concentrated when the post-merger HHI is more than 1800. The
Department of Justice has informed the Board that a bank merger or




Consummation of the proposal without divestitures
would be consistent with Board precedent and the DOJ
Guidelines in the Annapolis, Charlottesville, Danville, Fredericksburg, Harrisonburg, Lynchburg, Newport NewsHampton, Norfolk-Portsmouth, Richmond, Roanoke,
Staunton, Winchester, and Metropolitan Washington, D.C.
banking markets. In each of these markets, the increase in
the HHI as a result of this proposal would be fewer than
200 points, in most cases fewer than 40 points, and numerous competitors would remain.12
In the Martinsburg, West Virginia, and Alleghany, Charlotte, and Emporia, Virginia, banking markets, consummation of the proposal would exceed the DOJ Guidelines. In
order to mitigate potentially adverse competitive effects of
the proposal in these markets, BB&T has proposed divestitures in each market that would reduce the HHIs to levels
consistent with the DOJ Guidelines.13
Martinsburg. BB&T is the largest depository institution
in the Martinsburg banking market, controlling deposits of
$267.4 million, representing approximately 46.6 percent of
market deposits. F&M is the third largest depository institution in the market, controlling deposits of $83.6 million,
representing approximately 14.6 percent of market deposits. The HHI would increase 1357 points to 4215.
BB&T has committed to divest four branches in the
banking market that control $68.4 million in deposits. On
consummation of the proposal, and taking into account the
proposed divestitures, BB&T would remain the largest
depository institution in the Martinsburg banking market,
controlling deposits of $282.5 million, representing approximately 49.2 percent of market deposits, and the HHI
would increase 183 points to 3040. Seven other competitors would remain in the banking market, including three
competitors that each would control at least 10 percent of
market deposits. In addition, the market is attractive for
entry; since 1997, four firms have entered the market
de novo.

acquisition generally will not be challenged (in the absence of other
factors indicating anticompetitive effects) unless the post-merger HHI
is at least 1800 and the merger increases the HHI by more than 200
points. The Department of Justice has stated that the higher than
normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effects of limitedpurpose lenders and other nondepository financial institutions.
12. The competitive analyses for these banking markets are provided in Appendix C.
13. BB&T has committed to execute sales agreements for the
proposed divestitures discussed in this order with purchasers that are
competitively suitable, and has committed to complete the divestitures
within 180 days of consummation of the proposal. BB&T also has
committed that, if it is unsuccessful in completing the divestitures
within the 180-day period, it will transfer the unsold branches to an
independent trustee that is acceptable to the Board and will instruct
the trustee to sell the branches promptly to an alternative purchaser
acceptable to the Board. See BankAmerica Corporation, 78 Federal
Reserve Bulletin 338 (1992); United New Mexico Financial Corporation, 11 Federal Reserve Bulletin 484 (1991). BB&T also has committed to submit to the Board, within 180 days after consummation of the
proposal, executed trust agreements acceptable to the Board stating
the terms of the proposed divestitures.

Legal Developments

Alleghany. BB&T is the third largest depository institution in the Alleghany banking market, controlling deposits
of $65 million, representing approximately 17.9 percent of
market deposits. F&M is the largest depository institution
in the market, controlling deposits of $129 million, representing approximately 35.6 percent of market deposits. On
consummation, the HHI would increase 1244 points to
3628.
BB&T has committed to divest one branch in the banking market that controls approximately $61.5 million in
deposits. On consummation of the proposal and taking into
account the proposed divestiture, BB&T would become the
largest depository institution in the Alleghany banking
market, controlling deposits of $132.5 million, representing approximately 36.6 percent of market deposits. The
HHI would increase by 36 points to 2421. Each of the five
firms in the banking market would control at least
10 percent of market deposits.
Charlotte. BB&T is the second largest depository institution in the Charlotte banking market, controlling deposits
of $29.8 million, representing approximately 25.2 percent
of market deposits. F&M is the third largest depository
institution in the market, controlling deposits of
$18.5 million, representing approximately 15.7 percent of
market deposits. On consummation of the proposal, the
HHI would increase 788 points to 4487.
BB&T has committed to divest F&M's only branch in
the banking market that controls approximately $18.5 million. On consummation of the proposal and taking into
account the proposed divestiture, BB&T would remain the
second largest depository institution in the Charlotte banking market, controlling deposits of $24.8 million, representing approximately 25.2 percent of market deposits, and
the HHI would remain unchanged.
Emporia. BB&T is the second largest depository institution
in the Emporia banking market, controlling deposits of
$62.9 million, representing 33.9 percent of market deposits.
F&M is the largest depository institution in the market, controlling deposits of $63 million, representing 34 percent of
market deposits. The HHI would increase 2307 points
to 4892.
BB&T has committed to divest two branches in the
banking market that control approximately $52.4 million.
On consummation of the proposal and taking into account
the proposed divestitures, BB&T would become the largest
depository institution in the Emporia banking market, controlling deposits of $73.5 million, representing approximately 39.7 percent of market deposits. The HHI would
increase 65 points to 2650. Five competitors in addition to
BB&T would remain in the banking market, including four
competitors that would each control 5 percent or more of
market deposits.
The Board has considered the views of the Department
of Justice and the appropriate State banking agencies on
the competitive effects of the proposal in each relevant
banking market. The Department of Justice has advised the
Board that, in light of the proposed divestitures, consummation of the proposal would not be likely to have a
significantly adverse effect on competition in any relevant



547

banking market. The appropriate State agencies have been
provided an opportunity to comment and have not objected
to consummation of the proposal.
Based on all the facts of record, including the commitments to divest branches in the Alleghany, Charlotte, Emporia, and Martinsburg banking markets, and the number
and size of the competitors that would remain in the
markets, the Board concludes that consummation of the
proposal is not likely to have a significantly adverse effect
on competition or on the concentration of banking resources in these banking markets or in any relevant banking markets.
Other Considerations
The BHC Act requires the Board, in acting on an application, to consider the financial and managerial resources and
future prospects of the companies and banks involved, the
convenience and needs of the communities to be served,
and certain supervisory factors. The Board has reviewed
these factors in light of the record, including supervisory
reports of examination assessing the financial and managerial resources of the organizations and financial information provided by BB&T. BB&T is well capitalized and
would remain so after consummation of the proposal.
Based on all the facts of record, the Board concludes that
the financial and managerial resources and the future prospects of BB&T, F&M, and their respective subsidiary
banks are consistent with approval, as are the other supervisory factors the Board must consider under the BHC Act.
In addition, considerations related to the convenience
and needs of the communities to be served, including the
records of performance of the institutions involved under
the Community Reinvestment Act (12 U.S.C. § 2901
et seq.), are consistent with approval of the proposal.14
BB&T also has filed notice under sections (4)(c)(8) and
4(j) of the BHC Act to acquire F&M's nonbanking subsidiaries and thereby engage in trust and mortgage banking
activities. The Board has determined by regulation that
trust and mortgage banking activities are closely related to
banking for purposes of the BHC Act.15 Moreover, the
Federal Reserve System previously has approved applications by F&M to engage in the proposed activities. BB&T
has committed to conduct these nonbanking activities in
accordance with the limitations set forth in Regulation Y
and the Board's order and interpretations.
In order to approve this notice, the Board is required by
section 4(j)(2)(A) of the BHC Act to determine that the
acquisition of the nonbanking subsidiaries of F&M by
BB&T "can reasonably be expected to produce benefits to
the public . . . that outweigh possible adverse effects, such
as undue concentration of resources, decreased or unfair

14.
rated
CRA
15.

All the insured depository institutions of BB&T and F&M were
satisfactory or better during their most recent examination of
performance.
See 12 C.F.R. 225.28(b)(1) and (5).

548

Federal Reserve Bulletin • August 2001

competition, conflicts of interests, or unsound banking
practices."16
As part of its evaluation of these factors, the Board has
considered the financial and managerial resources of
BB&T and its subsidiaries, including the companies to be
acquired, and the effect of the proposed transaction on
those resources. For the reasons noted above, and based on
all the facts of record, the Board has concluded that financial and managerial considerations are consistent with approval of the notice.
The Board also has considered the competitive effects of
BB&T's proposed acquisition of the nonbanking subsidiaries of F&M in light of all the facts of record. BB&T and
F&M originate mortgages. There are numerous competitors for mortgage originations in the markets where BB&T
and F&M compete, and there are few barriers to entry.
BB&T and F&M also provide trust services. The market
for trust services is unconcentrated, and there are numerous
competitors for this service. As a result, the Board
expects that consummation of the proposal would have a
de minimis effect on competition for these services. Based
on all the facts of record, the Board concludes that it is
unlikely that significantly adverse competitive effects
would result from the nonbanking acquisitions proposed in
this transaction.
The Board also expects that the proposed transaction
would give BB&T an increased ability to serve the needs
of its customers and provide expanded services to the
current customers of F&M. In addition, there are public
benefits to be derived from permitting capital markets to
operate so that bank holding companies can make potentially profitable investments in nonbanking companies and
from permitting banking organizations to allocate their
resources in the manner they consider to be most efficient
when such investments are consistent, as in this case, with
the relevant considerations under the BHC Act.
The Board also concludes that the conduct of the proposed nonbanking activities within the framework of Regulation Y and Board precedent is not likely to result in
adverse effects, such as an undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices, that would outweigh
the public benefits of the proposal, such as increased customer convenience and gains in efficiency. Accordingly,
based on all the facts of record, the Board has determined
that the balance of public interest factors that the Board
must consider under section 4(j)(2)(A) of the BHC Act is
favorable and consistent with approval of this proposal.
Conclusion
Based on the foregoing, and in light of all the facts of
record, the Board has determined that the application and
notice should be, and hereby are, approved. Approval of
the application and notice is specifically conditioned on
compliance by BB&T with all the commitments made in

16. 12 U.S.C. § 1843(j)(2)(A).




connection with the proposal and with the conditions stated
or referred to in this order, including BB&T's divestiture
commitments. The Board's determination on the nonbanking activities also is subject to all the terms and conditions
set forth in Regulation Y, including those in sections 225.7
and 225.25(c)), and the Board's authority to require such
modification or termination of the activities of a bank
holding company or any of its subsidiaries as the Board
finds necessary to ensure compliance with, and to prevent
evasion of, the provisions of the BHC Act and the Board's
regulations and orders thereunder. For purposes of these
transactions, the commitments and conditions referred to in
this order shall be 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 acquisition of the subsidiary banks of F&M shall
not be consummated before the fifteenth calendar day after
the effective date of this order, and the proposal may not be
consummated later than three months after the effective
day of this order, unless such period is extended for good
cause by the Board or by the Federal Reserve Bank of
Richmond, acting pursuant to delegated authority.
By order of the Board of Governors, effective June 25,
2001.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board
Appendix A
Subsidiary Banks of F&M
West Virginia
F&M Bank - West Virginia, Ranson
Virginia
F&M
F&M
F&M
F&M
F&M
F&M
F&M
F&M
F&M

Bank - Atlantic, Gloucester
Bank - Central Virginia, Charlottesville
Bank - Highlands, Covington
Bank - Massanutten, Harrisonburg
Bank - Northern Virginia, Fairfax
Bank - Peoples, Warrenton
Bank - Richmond, Richmond
Bank - Southern Virginia, Emporia
Bank - Winchester, Winchester

Maryland
F&M Bank - Maryland, Bethesda

Legal Developments

Appendix B
Banking Markets in Which BB&T and F&M Compete
Directly
Alleghany, Virginia: Alleghany County and the independent cities of Clifton Forge and Covington, all in Virginia.
Annapolis, Maryland: the Annapolis Rand McNally Marketing Area ("RMA").
Charlotte, Virginia: Charlotte County, Virginia.
Charlottesville, Virginia: the Charlottesville RMA, the
non-RMA portion of Albemarle County, and the counties
of Fluvanna, Greene, and Nelson, all in Virginia.
Danville, Virginia: the Danville RMA, the non-RMA portion of Pittsylvania County, Virginia (excluding the area
around Hurt), and the independent city of Danville, Virginia.
Emporia, Virginia: Greenville County and the city of Emporia, both in Virginia.
Fredericksburg, Virginia: the independent city of Fredericksburg, the counties of Caroline, King George, Spotsylvania, and Stafford (excluding the Washington, D.C.Maryland-Virginia RMA portion), and the towns of
Colonial Beach, Leedstown, Oak Grove, and Potomac
Beach in Westmoreland County, all in Virginia.
Harrisonburg, Virginia: the independent city of Harrisonburg and Rockingham County, both in Virginia.
Lynchburg, Virginia: the Lynchburg RMA, the non-RMA
portions of Henry County, and the independent city of
Martinsville, all in Virginia.
Martinsburg, West Virginia: Berkeley County (excluding
the Hagerstown, Maryland-Pennsylvania-West Virginia
RMA portion).
Metropolitan Washington, D.C.: the Washington, D.C.Maryland-Virginia RMA, the non-RMA portions of the
counties of Calvert, Charles, and St. Mary's, all in Maryland; the non-RMA portions of Fauquier and Loudoun
Counties, both in Virginia; the non-RMA portion of Jefferson County, West Virginia; and the independent cities of
Alexandria, Fairfax, Falls Church, and Manassas, all in
Virginia.
Newport News-Hampton, Virginia: the Newport NewsHampton RMA, the non-RMA portion of the counties of
James City and Mathews, and the independent cities of
Hampton, Newport News, Poquoson, and Williamsburg,
all in Virginia.
Norfolk-Portsmouth, Virginia: the Norfolk-Portsmouth
RMA, the independent cities of Chesapeake, Norfolk,
Portsmouth, Suffolk, and Virginia Beach, all in Virginia,
and Currituck County, North Carolina.
Richmond, Virginia: the Richmond RMA, the non-RMA
portions of Chesterfield, Dinwiddie, Goochland, Hanover,
Henrico, Powhatan, and Prince George Counties; the independent cities of Colonial Heights, Hopewell, Petersburg,
and Richmond; and the counties of Charles City, King and
Queen, King William, and New Kent, all in Virginia.
Roanoke, Virginia: the Roanoke RMA, the non-RMA portions of Botetourt and Roanoke Counties; the independent
cities of Roanoke and Salem; and the town of Boones Mill
in Franklin County, all in Virginia.



549

Staunton, Virginia: the independent cities of Staunton and
Waynesboro, and Augusta County, all in Virginia.
Winchester, Virginia: the independent city of Winchester,
the counties of Clarke and Frederick, and the town of
Strasburg in Shenandoah County, all in Virginia, and
Hampshire County, West Virginia.
Appendix C
Banking Markets Consistent with DOJ Guidelines
Without Divestitures
Annapolis
BB&T is the ninth largest depository institution in
the Annapolis banking market, controlling deposits of
$79.3 million, representing 4.8 percent of market deposits.
F&M is the seventeenth largest depository institution in the
market, controlling deposits of $8.3 million, representing
less than 1 percent of market deposits. On consummation
of the proposal, BB&T would remain the ninth largest
depository institution in the market, controlling deposits of
approximately $87.6 million, representing approximately
5.3 percent of market deposits. The HHI would increase
5 points to 1036.
Charlottesville
BB&T is the fifth largest depository institution in the
Charlottesville banking market, controlling deposits of
$173.4 million, representing 8.9 percent of market deposits. F&M is the sixth largest depository institution in the
market, controlling deposits of $125.1 million, representing 6.4 percent of market deposits. On consummation of
the proposal, BB&T would become the fourth largest depository institution in the market, controlling deposits of
approximately $298.6 million, representing approximately
15.3 percent of market deposits. The HHI would increase
115 points to 1672.
Danville
BB&T is the ninth largest depository institution in the
Danville banking market, controlling deposits of
$35.5 million, representing 2.7 percent of market deposits.
F&M is the seventh largest depository institution in the
market, controlling deposits of $45.2 million, representing
3.5 percent of market deposits. On consummation of the
proposal, BB&T would become the seventh largest depository institution in the market, controlling deposits of
approximately $80.6 million, representing approximately
6.2 percent of market deposits. The HHI would increase
19 points to 1617.
Fredericksburg
BB&T is the largest depository institution in the Fredericksburg banking market, controlling deposits of
$363.6 million, representing 21.9 percent of market depos-

550

Federal Reserve Bulletin • August 2001

its. F&M is the thirteenth largest depository institution in
the market, controlling deposits of approximately 10 million, representing less than 1 percent of market deposits.
On consummation of the proposal, BB&T would remain
the largest depository institution in the market, controlling
deposits of approximately $373.6 million, representing approximately 22.5 percent of market deposits. The HHI
would increase 26 points to 1421.
Harrisonburg
BB&T is the sixteenth largest depository institution in the
Harrisonburg banking market, controlling deposits of
$3.4 million, representing less than 1 percent of market
deposits. F&M is the largest depository institution in the
market, controlling deposits of $226.1 million, representing 18.2 percent of market deposits. On consummation of
the proposal, BB&T would become the largest depository
institution in the market, controlling deposits of approximately $229.6 million, representing approximately
18.5 percent of market deposits. The HHI would increase
10 points to 1222.
Lynchburg
BB&T is the second largest depository institution in
the Lynchburg banking market, controlling deposits of
$525 million, representing 24.4 percent of market deposits.
F&M is the fourteenth largest depository institution in the
market, controlling deposits of $8.1 million, representing
less than 1 percent of market deposits. On consummation
of the proposal, BB&T would remain the second largest
depository institution in the market, controlling deposits of
approximately $533 million, representing approximately
24.7 percent of market deposits. The HHI would increase
18 points to 2170.
Metropolitan Washington, D.C.
BB&T is the seventh largest depository institution in the
Metropolitan Washington, D.C. banking market, controlling deposits of $2.7 billion, representing 4.6 percent of
market deposits. F&M is the fourteenth largest depository
institution in the market, controlling deposits of $1.2 billion, representing 2.1 percent of market deposits. On consummation of the proposal, BB&T would become the
fourth largest depository institution in the market, controlling deposits of $3.9 billion, representing 6.7 percent of
market deposits. The HHI would increase 18 points to 847.
Newport News-Hampton
BB&T is the eighth largest depository institution in the
Newport News-Hampton banking market, controlling deposits of $126.1 million, representing 3.8 percent of market
deposits. F&M is the seventh largest depository institution
in the market, controlling deposits of $162.7 million, representing 4.9 percent of market deposits. On consummation
of the proposal, BB&T would become the fifth largest



depository institution in the market, controlling deposits of
approximately $288.8 million, representing approximately
8.6 percent of market deposits. The HHI would increase
37 points to 1355.
Norfolk-Portsmouth
BB&T is the largest depository institution in the NorfolkPortsmouth banking market, controlling deposits of
$1.5 billion, representing 20.2 percent of market deposits.
F&M is the twentieth largest depository institution in the
market, controlling deposits of $10.5 million, representing
less than 1 percent of market deposits. On consummation
of the proposal, BB&T would remain the largest depository institution in the market, controlling deposits of
approximately $1.5 billion, representing approximately
20.4 percent of market deposits. The HHI would increase
6 points to 1174.
Richmond
BB&T is the sixth largest depository institution in
the Richmond banking market, controlling deposits of
$906 million, representing 6.1 percent of market deposits.
F&M is the tenth largest depository institution in the
market, controlling deposits of $290.9 million, representing 2 percent of market deposits. On consummation of the
proposal, BB&T would become the fifth largest depository
institution in the market, controlling deposits of approximately $1.2 billion, representing approximately 8.1 percent
of market deposits. The HHI would increase 24 points to
1283.
Roanoke
BB&T is the eighth largest depository institution in
the Roanoke banking market, controlling deposits of
$140.3 million, representing 2.7 percent of market deposits. F&M is the seventeenth largest depository institution in
the market, controlling deposits of $14.2 million, representing less than 1 percent of market deposits. On consummation of the proposal, BB&T would remain the eighth largest depository institution in the market, controlling deposits
of approximately $154.4 million, representing approximately 3 percent of market deposits. The HHI would
increase 2 points to 2874.
Staunton
BB&T is the ninth largest depository institution in the
Staunton banking market, controlling deposits of approximately $20 million, representing 2.2 percent of market
deposits. F&M is the tenth largest depository institution in
the market, controlling deposits of $16 million, representing 1.8 percent of market deposits. On consummation of
the proposal, BB&T would become the eighth largest
depository institution in the market, controlling deposits of
approximately $36 million, representing approximately

Legal Developments

4 percent of market deposits. The HHI would increase
8 points to 1978.
Winchester
BB&T is the fourteenth largest depository institution in the
Winchester banking market, controlling deposits of
$8.8 million, representing less than 1 percent of market
deposits. F&M is the largest depository institution in the
market, controlling deposits of $432 million, representing
31.4 percent of market deposits. On consummation of the
proposal, BB&T would become the largest depository institution in the market, controlling deposits of approximately $441.2 million, representing approximately
32.1 percent of market deposits. The HHI would increase
40 points to 1525.

ORDERS ISSUED UNDER BANK MERGER ACT

Central State Bank
Muscatine, Iowa
Order Approving the Acquisition of a Thrift Branch
Central State Bank ("Central"), a state member bank, has
requested the Board's approval under section 18(c) of the
Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) (the
"Bank Merger Act") to purchase the assets and assume the
liabilities of the Muscatine branch ("Branch") of Commercial Federal Bank, A Federal Savings Bank, Omaha, Nebraska ("Commercial Federal"). Central has also requested
the Board's approval to operate Branch as a branch of
Central pursuant to section 9 of the Federal Reserve Act
(12 U.S.C. § 321).'
Notice of the proposal, affording interested persons an
opportunity to submit comments, has been given in accordance with the Bank Merger Act and the Board's Rules of
Procedure (12 C.F.R. 262.3(b)). As required by the Bank
Merger Act, reports on the competitive effects of the
merger were requested from the United States Attorney
General and relevant banking agencies. The time for filing
comments has expired, and the Board has considered the
applications and all the facts of record in light of the
factors set forth in the Bank Merger Act and Federal
Reserve Act.
Central is the 24th largest depository institution in Iowa,
controlling $292.6 million in deposits, representing less
than 1 percent of total deposits in depository institutions in
the state.2 Branch controls $6.2 million in deposits and, on
consummation of this proposal, Central would control deposits of $298.8 million.

1. Branch is at 2400 Second Avenue, Muscatine, Iowa.
2. State deposit data are as of June 30, 2000.




Competitive

551

Considerations

The Bank Merger Act prohibits the Board from approving
an application if the proposal would result in a monopoly
or would be in furtherance of any attempt to monopolize
the business of banking. 3 The Bank Merger Act also prohibits the Board from approving a proposal that would
substantially lessen competition or tend to create a monopoly in any relevant market, unless the Board finds that the
anticompetitive effects of the proposed transaction are
clearly outweighed in the public interest by the probable
effects of the transaction in meeting the convenience and
needs of the community to be served. 4
Central and Branch compete in the Muscatine banking
market. 5 The Board has carefully reviewed the competitive
effects of the proposal in this market in light of all the facts
of record, including the characteristics of the market and
the projected increase in the concentration of total deposits
in insured depository institutions in this market ("market
deposits") 6 as measured by the Herfindahl-Hirschman Index ("HHI") under the Department of Justice Merger
Guidelines ("DOJ Guidelines"). 7
Central is the largest depository institution in the market,
controlling $292.6 million in deposits, representing
35 percent of market deposits. Commercial Federal is the
smallest depository institution in the market, controlling
$6.2 million, representing less than 1 percent of market
deposits. On consummation of the proposal, Central would
remain the largest depository institution in the market,
controlling deposits of $298.8 million, representing
35.8 percent of market deposits. The HHI would increase
by 46 points to 2635.
Several factors indicate that the likely effect of consummation of this proposal on competition in the market would
not be significantly adverse. Although there has been no
de novo entry in recent years, the Muscatine banking

3. 12 U.S.C. § 1828(c)(5)(A).
4. 12 U.S.C. § 1828(c)(5)(B).
5. The Muscatine banking market is defined as Muscatine County,
Iowa.
6. All market data are as of June 30, 2000. Market share data before
consummation 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, significant competitors of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 743 (1984). Since Commercial
Federal is a thrift, Branch's deposits are weighted at 50 percent
pre-merger and 100 percent post-merger. See Norwest
Corporation,
78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal
Reserve Bulletin 669, 670 n.9 (1990).
7. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a
market in which the post-merger HHI is above 1800 is considered to
be highly concentrated. The Department of Justice has informed the
Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive
effects) unless the post-merger HHI is at least 1800 and the merger or
acquisition increases the HHI by at least 200 points. The Department
of Justice has stated that the higher than normal HHI thresholds for
screening bank mergers or acquisitions for anticompetitve effects
implicitly recognize the competitive effects of limited-purpose lenders
and other nondepository financial institutions.

552

Federal Reserve Bulletin • August 2001

market has economic characteristics that suggest that it is
attractive for entry. The averages for Muscatine County
exceed the averages for all Iowa non-Metropolitan Statistical Area counties in population per banking office, deposits
per banking office, increase in deposits, increase in population, per capita income, and increase in per capita income.
Muscatine County also ranks seventh among Iowa's
89 counties in the amount of total bank deposits. Of the six
remaining firms in the Muscatine banking market, three
firms, in addition to Central, would each control 10 percent
or more of market deposits.
As required by the Bank Merger Act, the Board consulted with the Department of Justice and relevant banking
agencies. The Department of Justice has advised the Board
that consummation of the proposal would not likely have a
significantly adverse effect on competition in any relevant
market. No other agency has indicated that there are any
competitive issues raised by this proposal.
After carefully considering all the facts of record, including the factors set forth above and the relatively small
change in concentration as measured by the HHI, the
Board concludes that consummation of this proposal would
not result in a significantly adverse effect on competition or
on the concentration of banking resources in the Muscatine
banking market, or any other relevant banking market.
Financial, Managerial, and Other

Considerations

The Bank Merger Act also requires the Board to consider
the financial and managerial resources and future prospects
of the institutions involved in the proposal and the convenience and needs of the communities to be served. The
Board has reviewed carefully these factors in light of all
the facts of record, including supervisory reports of examination assessing the financial and managerial resources of
the organizations. Based on these and all the facts of
record, the Board concludes that the financial, managerial,
and other supervisory factors are consistent with approval.
In considering the convenience and needs factor, the
Board has reviewed Central's record under the Community
Reinvestment Act ("CRA"). 8 The Board notes that Central
received a "satisfactory" rating at its last CRA performance examination by the Federal Reserve Bank of Chicago, as of October 16, 1998. Based on all the facts of
record, the Board concludes that the convenience and
needs considerations are consistent with approval of the
proposal.
Central has also applied under section 9 of the Federal
Reserve Act to establish a branch at the location of Branch.
The Board has considered the factors it is required to
consider when reviewing an application for establishing
branches pursuant to section 9 of the Federal Reserve Act
and, for the reasons discussed in this order, finds those
factors to be consistent with approval.
Based on the foregoing and all the facts of record, the
Board has determined that these applications should be,

8. 12 U.S.C. § 2901




etseq.

and hereby are, approved. The Board's approval of this
proposal is conditioned on compliance by Central with the
commitments made in connection with these applications.
For purposes of this action, the commitments and conditions relied on in reaching this decision are conditions
imposed in writing by the Board and, as such, may be
enforced in proceedings under applicable law.
The transaction shall not be consummated before the
fifteenth calendar day after 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 Chicago, acting
pursuant to delegated authority.
By order of the Board of Governors, effective June 25,
2001.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley, Meyer, and Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

ORDERS ISSUED UNDER INTERNATIONAL BANKING
ACT

Banco de Bogota S.A.
Santafe de Bogota, D.E., Colombia
Order Approving Establishment of an Agency
Banco de Bogota S.A. ("Bank"), Santafe de Bogota, D.E.,
Colombia, a foreign bank within the meaning of the International Banking Act ("IBA"), has applied under section
7(d) of the IBA (12 U.S.C. § 3105(d)) to establish an
agency in Miami, Florida. The Foreign Bank Supervision
Enhancement Act of 1991, which amended the IBA, provides that a foreign bank must obtain the approval of the
Board to establish an agency in the United States.
Notice of the application, affording interested persons an
opportunity to comment, has been published in a newspaper of general circulation in Miami, Florida (Miami Herald, March 9, 1998). The time for filing comments has
expired, and the Board has considered the application and
all comments received.
Bank, with total consolidated assets of approximately
$3.7 billion, is the third largest bank in Colombia. 1 Bank is
the oldest commercial bank in Colombia, and operates
through 274 branches in Colombia. Bank also owns bank
subsidiaries in Panama and the Bahamas. In the United
States, Bank operates an agency in New York, New York,
and an Edge corporation in Miami, Florida. Grupo Aval
Acciones y Valores, S.A. ("Aval"), a holding company
engaged in financial activities, owns a majority of Bank's
outstanding voting shares. 2

1. Unless otherwise indicated all data are as of December 31, 2000.
2. Aval is controlled by Dr. Luis Carlos Sarmiento Angulo, who
directly and indirectly owns more than 90 percent of its shares.

Legal Developments

The proposed agency would be used to further develop
Bank's trade-related business. Bank also intends to consolidate and enhance the business lines that have been the
primary focus of Bank's Miami Edge corporation: trade
finance, private banking, foreign exchange, and portfolio
investment business.3
In order to approve an application by a foreign bank to
establish an agency in the United States, the IBA and
Regulation K require the Board to determine that the
foreign bank applicant engages directly in the business of
banking outside of the United States, and has furnished to
the Board the information it needs to assess the application
adequately. The Board also shall take into account whether
the foreign bank and any foreign bank parent 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).4 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)(2)- (3)).
The IBA includes a limited exception to the general
requirement relating to comprehensive, consolidated supervision (12 U.S.C. § 3105(d)(6)). This exception provides
that, if the Board is unable to find that a foreign bank
seeking to establish a branch, agency, or commercial lending company is subject to comprehensive supervision or
regulation on a consolidated basis by the appropriate authorities in its home country, the Board may nevertheless
approve an application by such foreign bank if:
(i) The appropriate authorities in the home country of
the foreign bank are actively working to establish
arrangements for the consolidated supervision of
such bank; and
(ii) All other factors are consistent with approval (12
U.S.C. § 3105(d)(6)(A)). In deciding whether to
exercise its discretion to approve an application
under authority of this exception, the Board shall
also consider whether the foreign bank has adopted
and implements procedures to combat money laundering (12 U.S.C. § 3105(d)(6)(B)).
The Board also may take into account whether the home
country of the foreign bank is developing a legal regime
3. Bank intends to close its Miami Edge corporation in connection
with the establishment of the proposed agency.
4. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors:
(i) Ensure that the bank has adequate procedures for monitoring
and controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its
subsidiaries and oflices through regular examination reports,
audit reports, or otherwise;
(iii) Obtain information on the dealings with and relationship
between the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated
on a worldwide basis or comparable information that permits
analysis of the bank's financial condition on a worldwide
consolidated basis;
(v) Evaluate prudential standards, such as capital adequacy and
risk asset exposure, on a worldwide basis.
These are indicia of comprehensive, consolidated supervision. No single factor is essential, and other elements may
inform the Board's determination.




553

to address money laundering or is participating in multilateral efforts to combat money laundering (12 U.S.C.
§ 3105(d)(6)(B)).
As noted above, Bank engages directly in the business of
banking outside the United States. Bank also has provided
the Board with information necessary to assess the application through submissions that address the relevant issues.
With respect to supervision by Bank's home country
authorities, the Board has considered the following information. Bank is supervised by the Colombian Superintendency of Banking ("Superintendency").5 The Superintendency is primarily responsible for the regulation and
supervision of Colombian financial institutions, including
their foreign offices, subsidiaries, and affiliates. The Superintendency issues and promulgates supervisory regulations
concerning accounting requirements, asset quality, management, operations, capital adequacy, loan classification
and loan loss provision standards. The Superintendency is
responsible for monitoring, inspecting, and assessing the
management, operations, and asset quality of financial
institutions. In addition, the Superintendency monitors
compliance by financial institutions with applicable laws
and regulations and may order preventive measures and
impose sanctions on financial institutions.
In connection with its supervisory function, the Superintendency conducts on-site examinations of financial institutions annually and may conduct special targeted examinations if circumstances merit such inspections. For off-site
monitoring purposes, the Superintendency requires extensive reporting from the institutions it supervises, including
monthly, quarterly, and semiannual consolidated financial
data covering liquidity, capitalization, affiliate transactions,
asset quality, and earnings. Additionally, each foreign office and affiliate is required to submit copies of documents
prepared to satisfy the requirements of local authorities.
The Superintendency also has established guidelines for
the external audit of financial institutions and requires
external audits to be conducted annually. Reports of such
audits are submitted to the Superintendency.
The Superintendency is empowered to coordinate and
share information with other domestic governmental agencies regarding the institutions it supervises. The Superintendency has stated that it will generally share information
with supervisors in jurisdictions where Colombian banks
have operations. The Superintendency considers information sharing to be important for the adequate supervision of
financial institutions and has entered into information sharing agreements with several foreign jurisdictions.
The Colombian government has taken a number of steps
to combat money laundering. In the past decade, Colombia
has enacted legislation to prevent money laundering and
has established a regulatory infrastructure to assist this

5. Aval is supervised by the Superintendency of Securities because
of its size and because its shares are registered on the Colombian stock
exchanges. Both the Superintendency and the Superintendency of
Securities are part of the Finance Ministry and may share information.

554

Federal Reserve Bulletin • August 2001

effort. Colombia has established a Financial Information
and Analysis Unit in the Ministry of Finance, which is
responsible for gathering and centralizing information from
public and private entities in Colombia, as well as analyzing such information. The Prosecutor General's office has
established a unit to investigate and prosecute money laundering cases and forfeiture actions. Colombia also participates in international fora that address the issues of asset
forfeiture and the prevention of money laundering.6 In
addition, the Superintendency has issued circulars that
require financial institutions to establish systems for the
prevention of money laundering.
Bank has implemented policies and procedures to ensure
compliance with Colombian law and regulations.7 Bank
has implemented a know your customer policy, which
requires customer identification at the time of contracting
for any product or service (customer identification is updated yearly). Bank also requires employees to identify and
report unusual transactions and suspicious activities and
may close a customer's account if appropriate.8 Additionally, Bank has established recordkeeping procedures and
provides ongoing training for employees on its policies and
procedures for the prevention of money laundering.
Based on all the facts of record, the Board has determined that Bank's home country authorities are actively
working to establish arrangements for the consolidated
supervision of Bank, and that considerations relating to the
steps taken by Bank and its home country to combat
money laundering are consistent with approval under this
standard.
The Board has also taken into account the additional
standards set forth in the IBA (12 U.S.C. § 3105(d)(3)-(4);
12 C.F.R. 211.24(c)(2)). The Superintendency has no objection to the establishment of the proposed agency.
Bank must comply with the minimum capital standards
of the Basel Capital Accord ("Accord"), as implemented
by Colombia. Bank's capital is in excess of the minimum
levels that would be required by the Accord and is considered equivalent to the capital that would be required of a
U.S. banking organization. Managerial and other financial
resources of Bank are also considered consistent with
approval, and Bank appears to have the experience and
capacity to support the proposed agency. Bank has established controls and procedures for the proposed agency to
ensure compliance with U.S. law, as well as controls and
procedures for its worldwide operations generally.

With respect to access to information about Bank's
operations, the Board has reviewed the restrictions on
disclosure in relevant jurisdictions in which Bank operates
and has communicated with relevant government authorities regarding access to information. Bank and its parent
have committed to make available to the Board such information on the operations of Bank and any of its affiliates
that the Board deems necessary to determine and enforce
compliance with the IBA, the Bank Holding Company Act
of 1956, as amended, and other applicable federal law. To
the extent that the provision of such information to the
Board may be prohibited by law, Bank has committed to
cooperate with the Board to obtain any necessary consents
or waivers that might be required from third parties for
disclosure of such information. In addition, subject to
certain conditions, the Superintendency 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 that the
Board may request.
On the basis of all the facts of record, and subject to the
commitments made by Bank and its parent, as well as the
terms and conditions set forth in this order, the Board has
determined that Bank's application to establish an agency
should be, and hereby is, approved. Should any restrictions
on access to information on the operations or activities of
Bank and its affiliates subsequently interfere with the
Board's ability to obtain information to determine and
enforce compliance by Bank or its affiliates with applicable
federal statutes, the Board may require or recommend
termination of any of Bank's direct or indirect activities in
the United States. Approval of this application also is
specifically conditioned on compliance by Bank with the
commitments made in connection with this application and
with the conditions in this order.9 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
against Bank and its affiliates.
By order of the Board of Governors, effective June 11,
2001.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Meyer and Gramlich. Absent and not voting:
Governor Kelley.
ROBERT DEV. FRIERSON

6. Colombia is a party to the 1988 U.N. Convention Against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances ("Convention"), and the United States has certified that Colombia has taken
adequate measures to achieve full compliance with the goals and
objectives of the Convention. Colombia also has signed the U.N.
Convention against Transnational Organized Crime and is a member
of the Organization of American States Inter-American Drug Abuse
Control Commission Experts Group to Control Money Laundering.
7. Bank's foreign bank subsidiaries have adopted the same policies
and procedures for the prevention of money laundering.
8. Employees use computer programs to facilitate the analysis and
reporting of suspicious transactions.




Associate Secretary of the Board

9. The Board's authority to approve the establishment of the proposed agency 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, or
its agent, the Florida Department of Banking and Finance ("Department"), to license the proposed office of Bank in accordance with any
terms or conditions that the Department may impose.

Legal Developments

Banco Pastor S.A.
A Coruna, Spain
Order Approving Establishment of an Agency
Banco Pastor S.A. ("Bank"), A Coruna, Spain, a foreign
bank within the meaning of the International Banking Act
("IBA"), has applied under section 7(d) of the IBA
(12 U.S.C. § 3105(d)) to establish an agency in Miami,
Florida. The Foreign Bank Supervision Enhancement Act
of 1991, which amended the IBA, provides that a foreign
bank must obtain the approval of the Board to establish an
agency in the United States.
Notice of the application, affording interested persons an
opportunity to comment, has been published in a newspaper of general circulation in Miami, Florida (Miami Herald, January 24, 2001). The time for filing comments has
expired, and all comments have been considered.
Bank, with total consolidated assets of approximately
$8.8 billion, is the ninth largest banking group in Spain.1
Bank is a commercial bank, which operates an extensive
network of branches in Spain and a branch in Paris, France.
Bank also operates representative offices in several European and Latin American countries. Bank currently does
not have any operations in the United States. Bank's largest shareholder is the Pedro Barrie de la Maza Foundation
("Foundation"), which owns approximately 44 percent of
its shares.2
The proposed agency would offer a full range of banking
products and services, including deposit, checking, lending, credit card, and investment management services, to
Bank's existing and prospective customers in Latin America.3
In order to approve an application by a foreign bank to
establish an agency in the United States, the IBA and
Regulation K require the Board to determine that the
foreign bank applicant engages directly in the business of
banking outside of the United States, and has furnished to
the Board the information it needs to assess the application
adequately. The Board also shall take into account whether
the foreign bank and any foreign bank parent 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).4 The Board may also take
1. All data are as of December 31, 2000.
2. The Foundation is a nonprofit organization established by Pedro
Barrie de la Maza, who was the principal shareholder of Bank before
he donated his shares to the Foundation. The Foundation, which is
dedicated to promoting the social, cultural, and educational development of Galicia, Spain, awards scholarships, carries out social welfare
projects, supports the arts, and promotes research in the scientific,
technical, historical, and artistic fields. Pedro Barrie de la Maza's
widow currently runs the Foundation and is chairman of Bank. Other
than the Foundation, no person owns more than 10 percent of Bank's
shares.
3. The proposed agency would not ofiFer deposit services to United
States citizens, or residents, or to entities incorporated in the United
States.
4. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors:




555

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)(2)-(3)).
As noted above, Bank engages directly in the business of
banking outside the United States. Bank also has provided
the Board with information necessary to assess the application through submissions that address the relevant issues.
With respect to supervision by home country authorities,
the Board previously has determined, in connection with
applications involving other banks in Spain, that those
banks were subject to home country supervision on a
consolidated basis.5 Bank is supervised by the Bank of
Spain on substantially the same terms and conditions as
those other banks. Based on all the facts of record, it has
been determined that Bank is subject to comprehensive
supervision on a consolidated basis by its home country
supervisor.
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)-(3)) have also been taken into account. The Bank of Spain has no objection to the establishment of the proposed agency.
Spain's risk-based capital standards conform to the European Union capital standards, which are consistent with
those established by the Basel Capital Accord. Bank's
capital is in excess of the minimum levels that would be
required by the Basel Capital Accord and is considered
equivalent to capital that would be required of a U.S.
banking organization. Managerial and other financial resources of Bank also are considered consistent with approval, and Bank appears to have the experience and
capacity to support the proposed agency. In addition, Bank
has established controls and procedures for the proposed
agency to ensure compliance with U.S. law, as well as
controls and procedures for its worldwide operations generally.
With respect to access to information about Bank's
operations, the restrictions on disclosure in relevant jurisdictions in which Bank operates have been reviewed and

(i)

Ensure that the bank has adequate procedures for monitoring
and controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its
subsidiaries and offices through regular examination reports,
audit reports, or otherwise;
(iii) Obtain information on the dealings with and relationship
between the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated
on a worldwide basis or comparable information that permits
analysis of the bank's financial condition on a worldwide
consolidated basis;
(v) Evaluate prudential standards, such as capital adequacy and
risk asset exposure, on a worldwide basis.
These are indicia of comprehensive, consolidated supervision. No
single factor is essential, and other elements may inform the Board's
determination.
5. See Caja de Ahorros de Valencia, Castellon y Alicante, 84
Federal Reserve Bulletin 231 (1998); Banco Exterior de Espana S.A.,
81 Federal Reserve Bulletin 616 (1995); Corporacion Bancaria de
Espana, 81 Federal Reserve Bulletin 598 (1995); Banco Santander
S.A., 79 Federal Reserve Bulletin 622 (1993); Banco de Sabadell S.A.,
79 Federal Reserve Bulletin 366 (1993).

556

Federal Reserve Bulletin • August 2001

the relevant government authorities have been communicated with regarding access to information. Bank and the
Foundation have committed to make available to the Board
such information on the operations of Bank and any of its
affiliates that the Board deems necessary to determine and
enforce compliance with the IBA, the Bank Holding Company Act, and other applicable federal law. To the extent
that the provision of such information to the Board may be
prohibited by law or otherwise, Bank and the Foundation
have committed to cooperate with the Board to obtain any
necessary consents or waivers that might be required from
third parties for disclosure of such information. In addition,
subject to certain conditions, the Bank of Spain 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, it has been determined that Bank has provided
adequate assurances of access to any necessary information
that 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, Bank's application to
establish an agency is hereby approved.6 Should any restrictions on access to information on the operations or
activities of Bank and its affiliates subsequently interfere
with the Board's ability to obtain information to determine
and enforce compliance by Bank or its affiliates with
applicable federal statutes, the Board may require or recommend termination of any of Bank's direct or indirect
activities in the United States. Approval of this application
also is specifically conditioned on compliance by Bank and
the Foundation with the commitments made in connection
with this application and with the conditions in this order.7
The commitments and conditions referred to above are
conditions imposed in writing by the Board in connection
with this decision and may be enforced in proceedings
under 12 U.S.C. § 1818 against Bank and its affiliates.
By order, approved pursuant to authority delegated by
the Board, effective June 28, 2001.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

6. Approved by the Director of the Division of Banking Supervision
and Regulation, with the concurrence of the General Counsel, pursuant to authority delegated by the Board.
7. The authority to approve the establishment of the proposed
agency parallels the continuing authority of the State of Florida to
license offices of a foreign bank. The approval of this application does
not supplant the authority of the State of Florida, or its agent, the
Florida Department of Banking and Finance ("Department") to license the proposed office of Bank in accordance with any terms or
conditions that the Department may impose.




Bank Austria Aktiengesellschaft
Vienna, Austria
Order Approving Establishment of Branches
Bank Austria Aktiengesellschaft ("Bank"), Vienna, Austria, a foreign bank within the meaning of the International
Banking Act ("IBA"), has applied under section 7(d) of
the IBA (12 U.S.C. § 3105(d)) to establish federal branches
in Greenwich, Connecticut, and New York, New York. The
Foreign Bank Supervision Enhancement Act of 1991,
which amended the IBA, provides that a foreign bank must
obtain the approval of the Board to establish branches in
the United States.
Notice of the application, affording interested persons an
opportunity to comment, has been published in a newspaper of general circulation in Greenwich, Connecticut
{Greenwich Time, October 18, 2000), and New York, New
York (The Daily News, October 18, 2000). The time for
filing comments has expired, and the Board has considered
all comments received.
Bank, with total consolidated assets of approximately
€165 billion ($148.2 billion), is the largest banking group
in Austria.1 Bank is a commercial and merchant bank and
engages in a number of banking, financial, and other activities worldwide. Bank is owned by Bayerische Hypo- und
Vereinsbank Aktiengesellschaft ("HVB"), the second largest banking group in Germany.2 HVB provides a broad
range of banking, financial, and related services to its
customers through an extensive network of branches in
Germany and worldwide.
Bank was established through an internal reorganization
undertaken in anticipation of a combination transaction
with HVB. As part of this reorganization, Sparkasse Stockerau Aktiengesellschaft, Vienna, Austria, a savings bank
subsidiary of the former Bank Austria Aktiengesllschaft
("old Bank Austria") succeeded to substantially all the
assets and liabilities of old Bank Austria and changed its
name to Bank Austria Aktiengesellschaft. Old Bank Austria operated branches in Greenwich, Connecticut, and
New York, New York, and Bank has requested authority to
retain and operate these offices.3 Pursuant to Regulation K,
the Board allowed the reorganization to proceed before an
application to establish the offices was filed and acted on
by the Board.4
In order to approve an application by a foreign bank to
establish branches in the United States, the IBA and Regulation K require the Board to determine that the foreign
bank applicant engages directly in the business of banking

1. Data are as of December 31, 2000.
2. Munich Re AG, and Allianz AG, both of Munich, Germany, each
directly and indirectly owns more than 10 percent of the voting shares
of HVB.
3. Bank's original application also requested authority to retain
Old Bank Austria's representative offices in Atlanta, Georgia, and
San Francisco, California. These offices have since been closed and,
therefore, are not addressed in this order.
4. See 12 C.F.R. 211.24(a)(3); Board Letter, dated November 1,
2000, to John C. Murphy, Jr., Esq.

Legal Developments

outside of the United States, and has furnished to the Board
the information it needs to assess the application adequately. The Board also shall take into account whether the
foreign bank and any foreign bank parent 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).5 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)(2)-(3)).
As noted above, Bank and HVB engage directly in the
business of banking outside the United States. Bank also
has provided the Board with information necessary to
assess the application through submissions that address the
relevant issues. With respect to supervision by home country authorities, the Board previously has determined, in
connection with applications involving other banks in Austria, that those banks were subject to home country supervision on a consolidated basis.6 Bank is supervised by the
Austrian Federal Ministry of Finance (the "Ministry") and
the Austrian National Bank on substantially the same terms
and conditions as those other banks. Based on all the facts
of record, the Board has determined that Bank is subject to
comprehensive supervision on a consolidated basis by its
home country supervisor.
With respect to supervision of HVB, the Board previously has determined, in connection with applications involving other banks in Germany, that those banks were
subject to home country supervision on a consolidated
basis.7 HVB is supervised by the German Federal Banking
Supervisory Office ("FBSO") on substantially the same
terms and conditions as those other banks. Based on all the
facts of record, the Board has determined that HVB is
subject to comprehensive supervision on a consolidated
basis by its home country supervisor.

5. In assessing this standard, the Board considers, among other
factors, the extent to which the home country supervisors:
(i) Ensure that the bank has adequate procedures for monitoring
and controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its
subsidiaries and offices through regular examination reports,
audit reports, or otherwise;
(iii) Obtain information on the dealings with and relationship
between the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated
on a worldwide basis or comparable information that permits
analysis of the bank's financial condition on a worldwide
consolidated basis;
(v) Evaluate prudential standards, such as capital adequacy and
risk asset exposure, on a worldwide basis.
These are indicia of comprehensive, consolidated supervision. No
single factor is essential, and other elements may inform the Board's
determination.
6. See Bank Austria Aktiengesellschaft, 86 Federal Reserve Bulletin
67 (2000); Erste Bank der Osterreichischen Sparkassen Aktiengesellschaft, 84 Federal Reserve Bulletin 1123 (1998);
CreditanstaltBankverein, 82 Federal Reserve Bulletin 594 (1996).
7. See Deutsche Hyp Deutsche Hypothekenbank Frankfurt-Hamburg
AG, 86 Federal Reserve Bulletin 658 (2000); Deutsche Bank AG, 85
Federal Reserve Bulletin 509 (1999); Westdeutsche ImmobilienBank,
85 Federal Reserve Bulletin 346 (1999); Commerzbank AG, 85 Federal Reserve Bulletin 336 (1999).




557

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)-(3)). The Ministry has no objection to the
establishment of the proposed branches.
Austria's risk-based capital standards conform to the
European Union capital standards, which are consistent
with those established by the Basel Capital Accord. Bank's
capital is in excess of the minimum levels that would be
required by the Basel Capital Accord and is considered
equivalent to capital that would be required of a U.S.
banking organization. Managerial and other financial resources of Bank also are considered consistent with approval, and Bank appears to have the experience and capacity
to support the proposed branches. In addition, Bank has
established controls and procedures for the branches to
ensure compliance with U.S. law, as well as controls and
procedures for its worldwide operations generally.
With respect to access to information about Bank's
operations, the Board has reviewed the restrictions on
disclosure in relevant jurisdictions in which Bank and
HVB operate and has communicated with relevant government authorities regarding access to information. Bank and
its parents have committed to make available to the Board
such information on the operations of Bank and any of its
affiliates that the Board deems necessary to determine and
enforce compliance with the IBA, the Bank Holding Company Act, and other applicable federal law. To the extent
that the provision of such information to the Board may be
prohibited by law or otherwise, Bank and its parents have
committed to cooperate with the Board to obtain any
necessary consents or waivers that might be required from
third parties for disclosure of such information. In addition,
subject to certain conditions, the Ministry and FBSO 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 that 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 the two branches
should be, and hereby is, approved. Should any restrictions
on access to information on the operations or activities of
Bank and its affiliates subsequently interfere with the
Board's ability to obtain information to determine and
enforce compliance by Bank or its affiliates with applicable
federal statutes, the Board may require or recommend
termination of any of Bank's direct or indirect activities in
the United States. Approval of this application also is
specifically conditioned on compliance by Bank and its
parents with the commitments made in connection with
this application and with the conditions in this order.8 The

8. The Board's authority to approve the establishment of the proposed branches parallels the continuing authority of the Office of the

558

Federal Reserve Bulletin • August 2001

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 against Bank and its affiliates.
By order of the Board of Governors, effective June 4,
2001.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley and Meyer. Absent and not voting: Governor Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

RHEINHYP Rheinische Hypothekenbank AG
Frankfurt am Main, Germany
Order Approving Establishment of a Representative
Office
RHEINHYP Rheinische Hypothekenbank AG ("Bank"),
Frankfurt am Main, Germany, 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 New York,
New York. The Foreign Bank Supervision Enhancement
Act of 1991, 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 New York (The New
York Times, November 20, 2000). The time for filing
comments has expired, and all comments have been considered.
Bank, with total consolidated assets of $79 billion,1 is
the nineteenth largest bank in Germany. Commerzbank
AG, Frankfurt am Main, Germany ("Commerzbank"),
owns approximately 98 percent of the voting stock of
Bank. A chartered mortgage bank, Bank engages primarily
in real estate and public sector financing activities in Germany. Bank operates twenty branches in Germany. It also
operates branches in England, Italy, and Portugal and representative offices in eight European countries. Commerzbank engages in a broad range of commercial and investment banking activities. In the United States,
Commerzbank operates branches in New York, New York;
Chicago, Illinois; and Los Angeles, California; an agency
in Atlanta, Georgia; and two nonbank subsidiaries that
engage in securities, derivatives, and commercial finance
activities.2

Comptroller of the Currency
foreign bank. The Board's
supplant the authority of the
Bank in accordance with any

("OCC") to license federal offices of a
approval of this application does not
OCC to license the proposed offices of
terms or conditions that it may impose.

1. Data are as of December 31, 2000.
2. Commerzbank also has a controlling interest in Korea Exchange
Bank, Seoul, Korea, which has branches in New York, New York;




The proposed representative office is initially intended to
act as a liaison with existing or potential customers of
Bank's European operations, to conduct research, and to
become familiar with the North American market. Bank
ultimately plans to use the representative office to assist the
head office in making commercial mortgage loans. All
decisions on credit extended by Bank would be made at the
head office.
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 the United
States and has furnished to the Board the information it
needs to assess the application adequately. The Board also
shall take into account whether the foreign bank and any
foreign bank parent is subject to comprehensive supervision or regulation on a consolidated basis by its home
country supervisor.3 The Board may take into account
additional standards set forth in the IBA and Regulation K.4
As noted above, Bank engages directly in the business of
banking outside the United States through its banking
operations in Germany and elsewhere. Bank also has provided the Board with the information necessary to assess
the application through submissions that address the relevant issues.
With respect to home country supervision of Bank, the
Board has considered the following information. The German Federal Banking Supervisory Office ("FBSO") is the
principal supervisory authority of Bank and Commerzbank. The Board previously has determined, in connection
with applications involving other German banks, including
Commerzbank, that those banks were subject to comprehensive consolidated supervision by the FBSO.5 In this
case, the Board has determined that Bank is supervised on

Chicago, Illinois; and Seattle, Washington; an agency in Los Angeles,
California; and a subsidiary bank also in Los Angeles.
3. See 12 U.S.C. § 3107(a)(2); 12 C.F.R. 211.24(d)(2). In assessing
this standard, the Board considers, among other factors, the extent to
which the home country supervisors:
(i) Ensure that the bank has adequate procedures for monitoring
and controlling its activities worldwide;
(ii) Obtain information on the condition of the bank and its
subsidiaries and offices through regular examination reports,
audit reports, or otherwise;
(iii) Obtain information on the dealings with and relationship
between the bank and its affiliates, both foreign and domestic;
(iv) Receive from the bank financial reports that are consolidated
on a worldwide basis, or comparable information that permits
analysis of the bank's financial condition on a worldwide
consolidated basis;
(v) Evaluate prudential standards, such as capital adequacy and
risk asset exposure, on a worldwide basis.
These are indicia of comprehensive, consolidated supervision. No
single factor is essential and other elements may inform the Board's
determination.
4. See 12 U.S.C. § 3105(d)(3) and (4); 12 C.F.R. 211.24(c)(2).
5. See Deutsche Hyp Deutsche Hypothekenbank
Frankfurt-Hamburg
AG, 86 Federal Reserve Bulletin 658 (2000); Deutsche Bank AG, 85
Federal Reserve Bulletin 509 (1999); Westdeutsche ImmobilienBank,
85 Federal Reserve Bulletin 346 (1999); Commerzbank AG, 85 Federal Reserve Bulletin 336 (1999).

Legal Developments

substantially the same terms and conditions as those other
banks. Based on this finding and all the facts of record, the
Board concludes that Bank is subject to comprehensive
supervision on a consolidated basis by its home country
supervisor.
The Board has taken into account the additional standards set forth in the IBA and in Regulation K. 6 The FBSO
has granted Bank approval to establish the proposed office.
With respect to the financial and managerial resources of
Bank, taking into consideration Bank's record of operations in its home country, its overall financial resources,
and its standing with its home country supervisor, the
Board has determined that financial and managerial considerations are consistent with approval. In addition, Bank
appears to have the experience and capacity to support the
proposed office and has established controls and procedures in the branch to ensure compliance with applicable
U.S. law, as well as controls and procedures for its worldwide operations generally.
With respect to access to information, the Board has
reviewed the restrictions on disclosure in relevant jurisdictions in which Bank operates and has communicated with
relevant government authorities about access to information. Bank and Commerzbank have committed to 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, and other applicable
federal law. To the extent that the provision of such information may be prohibited or impeded by law or otherwise,
Bank has committed to cooperate with the Board to obtain
any necessary consents or waivers that might be required
from third parties in connection with disclosure of certain
information. In addition, subject to certain conditions, the
FBSO 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
6. See 12 U.S.C. § 3105(d)(3) and (4); 12 C.F.R. 211.24(c)(2).

559

condition described below, the Board has concluded 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
in New York 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 and enforce
compliance by Bank or its affiliates with applicable federal
statutes, the Board may require or recommend termination
of any of Bank's direct or indirect activities in the United
States. Approval of this application also is specifically
conditioned on compliance by Bank and Commerzbank
with the commitments made in connection with this application and with the conditions in this order.7 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 against Bank,
its offices, and its affiliates under applicable law.
By order of the Board of Governors, effective June 4,
2001.
Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley and Meyer. Absent and not voting: Governor Gramlich.
ROBERT DEV. FRIERSON

Associate Secretary of the Board

7. The Board's authority to approve the establishment of the proposed office parallels the continuing authority of the State of New
York to license offices of a foreign bank. The Board's approval of this
application does not supplant the authority of the State of New York
or its agent, the New York State Banking Department ("Department"), to license the proposed office of Bank in accordance with any
terms or conditions that the Department may impose.

APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to
the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.
Section 3
Applicant(s)

Bank(s)

Effective Date

Southern Development Bancorporation, Inc.,
Arkadelphia, Arkansas

Delta Bank and Trust,
Drew, Mississippi

June 7, 2001




560

Federal Reserve Bulletin • August 2001

Section 4
Applicant(s)

Nonbanking Activity/Company

Effective Date

Northern Trust Corporation,
Chicago, Illinois

Gateway Solutions, LLC,
Chicago, Illinois

June 4, 2001

APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT
By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Section 3
Applicant s)

Bank(s)

Reserve Bank

Effective Date

Advantage Bancorp,
Woodbury, Minnesota
Bank of De Soto, N.A., Employee
Stock Ownership Trust,
De Soto, Texas

First Choice Bank,
Geneva, Illinois
D Bancorp, Inc.,
De Soto, Texas
Bank of De Soto, N.A.,
De Soto, Texas
Mansfield Bankstock, Inc.,
Mansfield, Arkansas
Bank of Mansfield,
Mansfield, Arkansas

Chicago

June 8, 2001

Dallas

May 22, 2001

St. Louis

May 23, 2001

Crescent Bank,
Myrtle Beach, South Carolina
Citrus Financial Services, Inc.,
Vero Beach, Florida
Citrus Bank, N.A.,
Vero Beach, Florida
Commerce Financial Corporation,
Topeka, Kansas
Commerce Bank and Trust,
Topeka, Kansas
Crescent State Bank,
Cary, North Carolina
Southern Security Bank Corporation,
Hollywood, Florida
First Liberty Capital Corporation,
Hugo, Colorado

Richmond

June 1, 2001

Chicago

June 5, 2001

Kansas City

June 1, 2001

Richmond

June 18, 2001

New York

May 29, 2001

Kansas City

June 1, 2001

Franco Financial Inc.,
Wabash, Indiana
Frances Slocum Bank and Trust
Company,
Wabash, Indiana
Alamo Corporation of Texas,
Alamo, Texas
Alamo Bank of Texas,
Alamo, Texas
James River Bankshares, Inc.,
Suffolk, Virginia

Chicago

May 25, 2001

Dallas

June 19, 2001

Richmond

May 24, 2001

The Bank of Mulberry Employee
Stock Ownership Trust,
Mulberry, Arkansas
ACME Holding Company, Inc.,
Mulberry, Arkansas
Carolina Financial Corporation,
Charleston, South Carolina
CIB Marine Bancshares, Inc.,
Pewaukee, Wisconsin

Commerce Financial Corporation
ESOP,
Topeka, Kansas
Crescent Financial Corporation,
Cary, North Carolina
First BanCorp,
San Juan, Puerto Rico
First Liberty Capital Corporation
Employee Stock Ownership Plan,
Hugo, Colorado
First Merchants Corporation,
Muncie, Indiana

First National Bank Group, Inc.
Edinburg, Texas

First Virginia Banks, Inc.,
Falls Church, Virginia




Legal Developments

Section 3—Continued
Applicant(s)

Bank(s)

Reserve Bank

Effective Date

GNB Bancshares, Inc.,
Gainesville, Texas
Guaranty National Bancshares, Inc.,
Wilmington, Delaware
Greer Bancshares Incorporated,
Greer, South Carolina
Hutisford Community Bancorp, Inc.,
Hutisford, Wisconsin
Metro North Bancshares, Inc.,
Elk River, Minnesota
Northrim BanCorp, Inc.,
Anchorage, Alaska
Old Florida Bankshares, Inc.,
Fort Myers, Florida
Ottawa Bancshares, Inc.,
Salina, Kansas
Paragon Commercial Corporation,
Raleigh, North Carolina
Promistar Financial Corporation,
Johnstown, Pennsylvania
Puget Sound Financial Services,
Inc.,
Fife, Washington
Republic Bancshares of Texas, Inc.,
Houston, Texas
RBT Holdings, Inc.,
Dover, Delaware
Sterling Bancshares, Inc.,
Houston, Texas
Sterling Bancorporation, Inc.,
Wilmington, Delaware
Washington First Financial Group,
Inc.,
Seattle, Washington
Wewahitchka State Bank Employee
Stock Ownership Plan,
Wewahitchka, Florida

First Bank and Trust,
Ennis, Texas

Dallas

May 9, 2001

Greer State Bank,
Greer, South Carolina
Hustisford State Bank,
Hustisford, Wisconsin
The Bank of Elk River,
Elk River, Minnesota
Northrim Bank,
Anchorage, Alaska
Old Florida Bank,
Fort Myers, Florida
Admire Bancshares, Inc.,
Emporia, Kansas
Paragon Commercial Bank,
Raleigh, North Carolina
FNH Corporation,
Irwin, Pennsylvania
Fife Commercial Bank,
Fife, Washington

Richmond

June 21, 2001

Chicago

June 5, 2001

Minneapolis

June 14, 2001

San Francisco

June 14, 2001

Atlanta

June 8, 2001

Kansas City

June 12, 2001

Richmond

May 25, 2001

Philadelphia

June 11, 2001

San Francisco

June 4, 2001

Republic National Bank,
Houston, Texas

Dallas

May 16, 2001

Lone Star Bancorporation, Inc.,
Houston, Texas

Dallas

May 21, 2001

Washington First International Bank,
Seattle, Washington

San Francisco

June 8, 2001

Gulf Coast Community Bancshares,
Inc.,
Wewahitchka, Florida

Atlanta

June 5, 2001

Applicant(s)

Nonbanking Activity/Company

Reserve Bank

Effective Date

Banco Bradesco S.A.,
Osasco, Brazil

Bradesco Securities, Inc.,
New York, New York

New York

June 13, 2001

Section 4




561

562

Federal Reserve Bulletin • August 2001

Section 4—Continued
Applicant(s)

Nonbanking Activity/Company

Reserve Bank

Effective Date

Banco Espirito Santo, S.A.,
Lisbon, Portugal
E.S. Control Holding S.A.,
Luxembourg
Espirito Santo Financial Group S.A.,
Luxembourg
E.S. International Holding S.A.,
Luxembourg
Espirito Financial (Portugal)
Sociedade Gestora de
Participacoes Sociais, S.A.,
Lisbon, Portugal
Bespar Sociedade Gestora de
Participacoes Sociais, S.A.,
Lisbon, Portugal
Caisse Nationale de Credit Agricole,
Paris, France
Banco Espirito Santo, S.A.,
Lisbon, Portugal
E.S. Control Holding, S.A.,
Luxembourg
Espirito Santo Financial Group,
S.A.,
Luxembourg
E.S. International Holding S.A.,
Luxembourg
Espirito Financial (Portugal)
Sociedade Gestora de
Participacoes Sociais, S.A.,
Lisbon, Portugal
Bespar Sociedade Gestora de
Participacoes Sociais, S.A.,
Lisbon, Portugal
Caisse National de Credit Agricole,
Paris, France
Marshall & Ilsley Corporation,
Milwaukee, Wisconsin
Northview Financial Corporation,
Northfield, Illinois

Clarity Incentive Systems, Inc.,
New York, New York

New York

June 8, 2001

FiNet.com, Inc.,
New York, New York

New York

June 8, 2001

Derivion Corporation,
Atlanta, Georgia
Northview Mortgage L.L.C.,
Northfield, Illinois
Northview Bank & Trust,
Northfield, Illinois
NetBank, Inc.,
Alpharetta, Georgia
NetBank,
Alpharetta, Georgia
NetBank Partners, LLC,
Alpharetta, Georgia

Chicago

May 21, 2001

Chicago

June 21, 2001

Chicago

June 11, 2001

Republic Bancorp Inc.,
Owosso, Michigan




Legal Developments

563

Sections 3 and 4
Applicant(s)

Nonbanking Activity/Company

Reserve Bank

Effective Date

GB&T Bancshares, Inc.,
Gainesville, Georgia

Community Trust Financial Services
Corporation,
Hiram, Georgia
Community Trust Bank,
Hiram, Georgia
Community Loan Company, Inc.,
Cartersville, Georgia
Metroplex Appraisals, Inc.,
Hiram, Georgia
Cash Transactions, LLC,
Dallas, Georgia
Lamar Capital Corporation,
Purvis, Mississippi
Lamar Bank,
Purvis, Mississippi
Larmar Data Solutions, Inc.,
Purvis, Mississippi

Atlanta

May 24, 2001

Atlanta

June 15, 2001

Hancock Holding Company,
Gulfport, Mississippi

APPLICATIONS APPROVED UNDER BANK MERGER ACT
By the Secretary of the Board
Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to
the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System,
Washington, D.C. 20551.

Applicant(s)

Bank(s)

Effective Date

Central Savings Bank,
Sault Sainte Marie, Michigan

North Country Bank & Trust,
Traverse City, Michigan

June 29, 2001

By Federal Reserve

Banks

Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to
the Reserve Banks.
Applicant(s)

Bank(s)

Reserve Bank

Effective Date

Central Virginia Bank,
Powhatan, Virginia
Gold Bank,
Leawood, Kansas
Gold Bank,
Leawood, Kansas
M&I Marshall & Ilsley Bank,
Milwaukee, Wisconsin
Promistar Bank,
Johnstown, Pennsylvania

Guaranty Bank,
Charlottesville, Virginia
North American Savings, F.S.B.,
Grandview, Missouri
Provident Bank, F.S.B.,
St. Joseph, Missouri
Fifth Third Bank, Southwest F.S.B.,
Scottsdale, Arizona
The First National Bank of Herminie,
Herminie, Pennsylvania

Richmond

June 18, 2001

Kansas City

May 25, 2001

Kansas City

June 20, 2001

Chicago

June 8, 2001

Philadelphia

June 11, 2001




564

Federal Reserve Bulletin • August 2001

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.
Artis v. Greenspan, No. 01-CV-0400(ESG) (D.D.C., complaint
filed February 22, 2001. Employment discrimination action.
Dime Bancorp, Inc. v. Board of Governors, No. 00-4249 (2d
Cir., filed December 11, 2000). Petition for review of a
Board order dated September 27, 2000, approving the applications of North Fork Corporation, Inc., Melville, New
York, to acquire control of Dime Bancorp, Inc. and to
thereby acquire its wholly owned subsidiary, The Dime
Savings Bank of New York, FSB, both of New York, New
York.
Nelson v. Greenspan, No. 99-215(EGS) (D.D.C., amended
complaint filed December 8, 2000). Employment discrimination action.
Howe v. Bank for International Settlements, No. 00CV12485
RCL (D. Mass., filed December 7, 2000). Action seeking
damages in connection with gold market activities and the
repurchase of privately-owned shares of the Bank for International Settlements.
Barnes v. Reno, No. 1:00CV02900 (D.D.C., filed December 4,
2000). Civil rights action. On June 13, 2001, the district
court dismissed the action.
Sedgwick v. Board of Governors, No. 00-16525 (9th Cir., filed
August 7, 2000). Appeal of district court dismissal of action
under Federal Tort Claims Act alleging violation of bank
supervision requirements. On May 31, 2001, the court affirmed the district court's dismissal.




Individual Reference Services Group, Inc., v. Board of Governors, et al, No. 01-5175 (D.C. Cir., filed May 25, 2001);
Trans Union LLC v. Federal Trade Commission, et al.,
No. 01-5202 (D.C. Cir., filed June 4, 2001). Appeals of
district court order entered April 30, 2001, upholding an
interagency rule regarding Privacy of Consumer Finance
Information. On June 21, 2001, the court consolidated these
cases with Reed Elsevier Inc. v. Board of Governors,
No. 00-1289 (D.C. Cir., filed June 30, 2000), and related
petitions for review filed against other federal agencies
challenging the same rules. On June 28, 2001, the court
denied the appellants' emergency motion for an injunction
pending appeal.
Bettersworth v. Board of Governors, No. 00-50262 (5th Cir.,
filed April 14, 2000). Appeal of district court's dismissal of
Privacy Act claims. On April 12, 2001, the court denied the
petition for review. On June 12, 2001, the court denied the
petitioner's request for rehearing.
Albrecht v. Board of Governors, No. 00-CV-317 (CKK)
(D.D.C., filed February 18, 2000). Action challenging the
method of funding of the retirement plan for certain Board
employees. On March 30, 2001, the district court granted in
part and denied in part the Board's motion to dismiss.
Guerrero v. United States, No. CV-F-99-6771(OWW) (E.D.
Cal., filed November 29, 1999). Prisoner suit.
Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed
August 3, 1999). Employment discrimination action.
Fraternal Order of Police v. Board of Governors,
No. 1:98CV03116 (WBB)(D.D.C„ filed December 22,
1998). Declaratory judgment action challenging Board labor practices. On February 26, 1999, the Board filed a
motion to dismiss the action.

565

Membership of the Board of Governors
of the Federal Reserve System, 1913-2001
APPOINTIVE

MEMBERS1
Federal R e s e r v e
District

Charles S. Hamlin

....Boston

Paul M. Warburg
Frederic A. Delano
W.P.G. Harding
Adolph C. Miller

....New York
....Chicago
....Atlanta
... .San Francisco

D a t e of initial
oath of office

Aug. 10, 1914
...Aug.
...Aug.
...Aug.
...Aug.

10,
10,
10,
10,

1914
1914
1914
1914

Albert Strauss
... .New York
Henry A. Moehlenpah
....Chicago
Edmund Piatt
... .New York
David C. Wills
....Cleveland
John R. Mitchell
....Minneapolis
Milo D. Campbell
....Chicago
Daniel R. Crissinger
....Cleveland
George R. James
....St. Louis
Edward H. Cunningham . ....Chicago
Roy A. Young
....Minneapolis
Eugene Meyer
....New York
Wayland W. Magee
... .Kansas City
Eugene R. Black
....Atlanta
M.S. Szymczak
....Chicago
J.J. Thomas
....Kansas City
Marriner S. Eccles
...San Francisco

...Oct. 26, 1918
...Nov. 10, 1919
...June 8, 1920
...Sept. 29, 1920
...May 12, 1921
...Mar. 14, 1923
...May 1, 1923
...May 14, 1923
...May 14, 1923
...Oct. 4, 1927
...Sept. 16, 1930
...May 18, 1931
...May 19, 1933
...June 14, 1933
...June 14, 1933
...Nov. 15, 1934

Joseph A. Broderick
...New York
John K. McKee
...Cleveland
Ronald Ransom
...Atlanta
Ralph W. Morrison
...Dallas
Chester C. Davis
...Richmond
Ernest G. Draper
.. .New York
Rudolph M. Evans
.. .Richmond
James K. Vardaman, Jr.
...St. Louis
...Boston
Lawrence Clayton
Thomas B. McCabe
...Philadelphia
Edward L. Norton
...Atlanta
Oliver S. Powell
...Minneapolis
Wm. McC. Martin, Jr. .... ...New York
A.L. Mills, Jr.
...San Francisco
J.L. Robertson
...Kansas City
C. Canby Balderston
...Philadelphia
Paul E. Miller
...Minneapolis
Chas. N. Shepardson
...Dallas
G.H. King, Jr.
...Atlanta
George W. Mitchell
...Chicago
J. Dewey Daane
...Richmond
Sherman J. Maisel
...San Francisco
Andrew F. Brimmer
...Philadelphia
William W. Sherrill
...Dallas
Arthur F. Burns
...New York
John E. Sheehan
...St. Louis
Jeffrey M. Bucher
.. .San Francisco
Robert C. Holland
...Kansas City
Henry C. Wallich
...Boston
Philip E. Coldwell
...Dallas

...Feb. 3, 1936
...Feb. 3, 1936
...Feb. 3, 1936
...Feb. 10, 1936
...June 25, 1936
...Mar. 30, 1938
...Mar. 14, 1942
...Apr. 4, 1946
...Feb. 14, 1947
...Apr. 15, 1948
...Sept. 1, 1950
...Sept. 1, 1950
...April 2, 1951
...Feb. 18, 1952
...Feb. 18, 1952
...Aug. 12, 1954
...Aug. 13, 1954
...Mar. 17, 1955
...Mar. 25, 1959
...Aug. 31, 1961
...Nov. 29, 1963
...Apr. 30, 1965
...Mar. 9, 1966
...May 1, 1967
...Jan. 31, 1970
...Jan. 4, 1972
...June 5, 1972
...June 11, 1973
...Mar. 8, 1974
...Oct. 29, 1974




O t h e r dates and i n f o r m a t i o n relating
to m e m b e r s h i p 2

Reappointed in 1916 and 1926. Served until
Feb. 3, 1936.3
Term expired Aug. 9, 1918.
Resigned July 21, 1918.
Term expired Aug. 9, 1922.
Reappointed in 1924. Reappointed in 1934 from the
Richmond District. Served until Feb. 3, 1936.3
Resigned Mar. 15, 1920.
Term expired Aug. 9, 1920.
Reappointed in 1928. Resigned Sept. 14, 1930.
Term expired Mar. 4, 1921.
Resigned May 12, 1923.
Died Mar. 22, 1923.
Resigned Sept. 15, 1927.
Reappointed in 1931. Served until Feb. 3, 1936.4
Died Nov. 28, 1930.
Resigned Aug. 31, 1930.
Resigned May 10, 1933.
Term expired Jan. 24, 1933.
Resigned Aug. 15, 1934.
Reappointed in 1936 and 1948. Resigned May 31, 1961.
Served until Feb. 10, 1936.3
Reappointed in 1936, 1940, and 1944. Resigned
July 14, 1951.
Resigned Sept. 30, 1937.
Served until Apr. 4, 1946.3
Reappointed in 1942. Died Dec. 2, 1947.
Resigned July 9, 1936.
Reappointed in 1940. Resigned Apr. 15, 1941.
Served until Sept. 1, 1950.3
Served until Aug. 13, 1954.3
Resigned Nov. 30, 1958.
Died Dec. 4, 1949.
Resigned Mar. 31, 1951.
Resigned Jan. 31, 1952.
Resigned June 30, 1952.
Reappointed in 1956. Term expired Jan. 31, 1970.
Reappointed in 1958. Resigned Feb. 28, 1965.
Reappointed in 1964. Resigned Apr. 30, 1973.
Served through Feb. 28, 1966.
Died Oct. 21, 1954.
Retired Apr. 30, 1967.
Reappointed in 1960. Resigned Sept. 18, 1963.
Reappointed in 1962. Served until Feb. 13, 1976.3
Served until Mar. 8, 1974.3
Served through May 31, 1972.
Resigned Aug. 31, 1974.
Reappointed in 1968. Resigned Nov. 15, 1971.
Term began Feb. 1, 1970. Resigned Mar. 31, 1978.
Resigned June 1, 1975.
Resigned Jan. 2, 1976.
Resigned May 15, 1976.
Resigned Dec. 15, 1986.
Served through Feb. 29, 1980.

566

Federal Reserve Bulletin • August 2001

Federal Reserve
District

Name

Philip C. Jackson, Jr. .
J. Charles Partee
Stephen S. Gardner ...
David M. Lilly
G. William Miller ....
Nancy H. Teeters
Emmett J. Rice
Frederick H. Schultz .
Paul A. Volcker
Lyle E. Gramley
Preston Martin
Martha R. Seger
Wayne D. Angell
Manuel H. Johnson ..
H. Robert Heller
Edward W. Kelley, Jr.
Alan Greenspan
John P. LaWare
David W. Mullins, Jr.
Lawrence B. Lindsey
Susan M. Phillips
Alan S. Blinder
Janet L. Yellen
Laurence H. Meyer ..
Alice M. Rivlin
Roger W. Ferguson, Jr.
Edward M. Gramlich
Chairmen

Atlanta
Richmond
Philadelphia
Minneapolis
San Francisco
Chicago
New York
Atlanta
Philadelphia
Kansas City
San Francisco
Chicago
Kansas City
Richmond
San Francisco
Dallas
New York
Boston
St. Louis
Richmond
Chicago
Philadelphia
San Francisco
St. Louis
Philadelphia
Boston
Richmond

Date of initial
oath of office

Other dates and information relating
to membership 2

July 14, 1975
Jan. 5, 1976
Feb. 13, 1976
June 1, 1976
Mar. 8, 1978
Sept. 18, 1978
June 20, 1979
July 27, 1979
Aug. 6, 1979
May 28, 1980
Mar. 31, 1982
July 2, 1984
Feb. 7, 1986
Feb. 7, 1986
Aug. 19, 1986
May 26, 1987
Aug. 11, 1987
Aug. 15, 1988
May 21, 1990
Nov. 26, 1991
Dec. 2, 1991
June 27, 1994
Aug. 12, 1994
June 24, 1996
June 25, 1996
Nov. 5, 1997
Nov. 5, 1997

4

Resigned Nov. 17, 1978.
Served until Feb. 7, 1986.3
Died Nov. 19, 1978.
Resigned Feb. 24, 1978.
Resigned Aug. 6, 1979.
Served through June 27, 1984.
Resigned Dec. 31, 1986.
Served through Feb. 11, 1982.
Resigned August 11, 1987.
Resigned Sept. 1, 1985.
Resigned April 30, 1986.
Resigned March 11, 1991.
Served through Feb. 9, 1994.
Resigned August 3, 1990.
Resigned July 31, 1989.
Reappointed in 1990.
Reappointed in 1992.
Resigned April 30, 1995.
Resigned Feb. 14, 1994.
Resigned Feb. 5, 1997.
Served through June 30, 1998.
Term expired Jan. 31, 1996.
Resigned Feb. 17, 1997.
Resigned July 16, 1999.
Reappointed in 2001.
Vice

Charles S. Hamlin
W.P.G. Harding
Daniel R. Crissinger
Roy A. Young
Eugene Meyer
Eugene R. Black
Marriner S. Eccles
Thomas B. McCabe
Wm. McC. Martin, Jr
Arthur F. Burns
G. William Miller
Paul A. Volcker
Alan Greenspan

Aug. 10, 1914-Aug. 9, 1916
Aug. 10, 1916-Aug. 9, 1922
May 1, 1923-Sept. 15, 1927
Oct. 4, 1927-Aug. 31, 1930
Sept. 16, 1930-May 10, 1933
May 19, 1933-Aug. 15, 1934
Nov. 15, 1934-Jan. 31, 19485
Apr. 15, 1948-Mar. 31, 1951
Apr. 2, 1951-Jan. 31, 1970
Feb. 1, 1970-Jan. 31, 1978
Mar. 8, 1978-Aug. 6, 1979
Aug. 6, 1979-Aug. 11, 1987
Aug. 11, 1987—6

Chairmen4

Frederic A. Delano
Paul M. Warburg
Albert Strauss
Edmund Piatt
J.J. Thomas
Ronald Ransom
C. Canby Balderston
J.L. Robertson
George W. Mitchell
Stephen S. Gardner
Frederick H. Schultz
Preston Martin
Manuel H. Johnson
David W. Mullins, Jr
Alan S. Blinder
Alice M. Rivlin
Roger W. Ferguson, Jr

Aug. 10, 1914-Aug. 9, 1916
Aug. 10, 1916-Aug. 9, 1918
Oct. 26, 1918-Mar. 15, 1920
July 23, 1920-Sept. 14, 1930
Aug. 21, 1934-Feb. 10, 1936
Aug. 6, 1936-Dec. 2, 1947
Mar. 11, 1955-Feb. 28, 1966
Mar. 1, 1966-Apr. 30, 1973
May 1, 1973-Feb. 13, 1976
Feb. 13, 1976-Nov. 19, 1978
July 27, 1979-Feb. 11, 1982
Mar. 31, 1982-Apr. 30, 1986
Aug. 4, 1986-Aug. 3, 1990
July 24, 1991-Feb. 14, 1994
June 27, 1994-Jan. 31, 1996
June 25, 1996-July 16, 1999
Oct. 5, 1999-

Ex-OFFICIO MEMBERS1
Secretaries

of the

Comptrollers

Treasury

W.G. McAdoo
Carter Glass
David F. Houston
Andrew W. Mellon
Ogden L. Mills
William H. Woodin
Henry Morgenthau, Jr

Dec. 23, 1913-Dec. 15, 1918
Dec. 16, 1918-Feb. 1, 1920
Feb. 2, 1920-Mar. 3, 1921
Mar. 4, 1921-Feb. 12, 1932
Feb. 12, 1932-Mar. 4, 1933
Mar. 4, 1933-Dec. 31, 1933
Jan. 1, 1934-Feb. 1, 1936

1. Under the provisions of the original Federal Reserve Act, the Federal
Reserve Board was composed of seven members, including five appointive
members, the Secretary of the Treasury, who was ex-officio chairman of the
Board, and the Comptroller of the Currency. The original term of office was ten
years, and the five original appointive members had terms of two, four, six,
eight, and ten years respectively. In 1922 the number of appointive members was
increased to six, and in 1933 the term of office was increased to twelve years.
The Banking Act of 1935, approved Aug. 23, 1935, changed the name of the
Federal Reserve Board to the Board of Governors of the Federal Reserve System
and provided that the Board should be composed of seven appointive members;
that the Secretary of the Treasury and the Comptroller of the Currency should
continue to serve as members until Feb. 1, 1936; that the appointive




of the

Currency

John Skelton Williams
Daniel R. Crissinger
Henry M. Dawes
Joseph W. Mcintosh
J.W. Pole
J.F.T. O'Connor

Feb. 2, 1914-Mar. 2, 1921
Mar. 17, 1921-Apr. 30, 1923
May 1, 1923-Dec. 17, 1924
Dec. 20, 1924-Nov. 20, 1928
Nov. 21, 1928-Sept. 20, 1932
May 11, 1933-Feb. 1, 1936

members in office on the date of that act should continue to serve until Feb. 1,
1936, or until their successors were appointed and had qualified; and that
thereafter the terms of members should be fourteen years and that the
designation of Chairman and Vice Chairman of the Board should be for a term of
four years.
2. Date after words "Resigned" and "Retired" denotes final day of service.
3. Successor took office on this date.
4. Chairman and Vice Chairman were designated Governor and Vice
Governor before Aug. 23, 1935.
5. Served as Chairman Pro Tempore from February 3, 1948, to April 15,
1948.
6. Served as Chairman Pro Tempore from March 3, 1996, to June 20, 1996.

1

Financial and Business Statistics
A3

DOMESTIC FINANCIAL STATISTICS

Money Stock and Bank Credit
A4
A5
A6

Reserves, money stock, and debt measures
Reserves of depository institutions and Reserve Bank
credit
Reserves and borrowings—Depository
institutions

Policy Instruments
A7
A8
A9

Federal Finance—Continued

GUIDE TO TABULAR PRESENTATION

Federal Reserve Bank interest rates
Reserve requirements of depository institutions
Federal Reserve open market transactions

Federal Reserve Banks
A10 Condition and Federal Reserve note statements
A l l Maturity distribution of loan and security
holding

All

Gross public debt of U.S. Treasury—
Types and ownership
A28 US. government securities
dealers—Transactions
A29 U.S. government securities dealers—
Positions and financing
A30 Federal and federally sponsored credit
agencies—Debt outstanding

Securities Markets and Corporate Finance
A31 New security issues—Tax-exempt state and local
governments and corporations
A3 2 Open-end investment companies—Net sales
and assets
A32 Corporate profits and their distribution
A32 Domestic finance companies—Assets and liabilities
A33 Domestic finance companies—Owned and managed
receivables

Real Estate
Monetary and Credit Aggregates
A12 Aggregate reserves of depository institutions
and monetary base
A13 Money stock and debt measures

Commercial Banking Institutions—
Assets and Liabilities
A15
A16
A17
A19
A20

All commercial banks in the United States
Domestically chartered commercial banks
Large domestically chartered commercial banks
Small domestically chartered commercial banks
Foreign-related institutions

A34 Mortgage markets—New homes
A3 5 Mortgage debt outstanding

Consumer Credit
A3 6 Total outstanding
A3 6 Terms

Flow of Funds
A37
A39
A40
A41

Funds raised in U.S. credit markets
Summary of financial transactions
Summary of credit market debt outstanding
Summary of financial assets and liabilities

Financial Markets
A22 Commercial paper and bankers dollar
acceptances outstanding
A22 Prime rate charged by banks on short-term
business loans
A23 Interest rates—Money and capital markets
A24 Stock market—Selected statistics

Federal Finance
A25 Federal fiscal and financing operations
A26 U.S. budget receipts and outlays
A27 Federal debt subject to statutory limitation



DOMESTIC NONFINANCIAL STATISTICS

Selected Measures
A42
A42
A43
A44
A46
A47
A48
A49

Nonfinancial business activity
Labor force, employment, and unemployment
Output, capacity, and capacity utilization
Industrial production—Indexes and gross value
Housing and construction
Consumer and producer prices
Gross domestic product and income
Personal income and saving

2

Federal Reserve Bulletin • August 2001

INTERNATIONAL STATISTICS

Summary Statistics
A50
A51
A51
A51

U.S. international transactions
U.S. foreign trade
U.S. reserve assets
Foreign official assets held at Federal Reserve
Banks
A52 Selected U.S. liabilities to foreign official
institutions

Reported by Banks in the United States
A52
A53
A55
A56

Liabilities to, and claims on, foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A56 Banks' own claims on unaffiliated foreigners
A57 Claims on foreign countries—Combined
domestic offices and foreign branches

Reported by Nonbanking Business
Enterprises in the United States
A58 Liabilities to unaffiliated foreigners
A59 Claims on unaffiliated foreigners




Securities Holdings and Transactions
A60 Foreign transactions in securities
A61 Marketable U.S. Treasury bonds and
notes—Foreign transactions

Interest and Exchange Rates
A62 Foreign exchange rates
A63 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
SPECIAL TABLES
A64 Assets and liabilities of commercial banks
March 31, 2001
A66 Terms of lending at commercial banks, May 2001
A72 Assets and liabilities of U.S. branches and
agencies of foreign banks, March 31, 2001
A76 Pro forma balance sheet and income statements
for priced service operations, March 31, 2001
A78 INDEX TO STATISTICAL TABLES

3

Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
c
e
n.a.
n.e.c.
P
r

*

0
ABS
ATS
BIF
CD
CMO
CRA
FAMC
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSA
FSLIC

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
Asset-backed security
Automatic transfer service
Bank insurance fund
Certificate of deposit
Collateralized mortgage obligation
Community Reinvestment Act of 1977
Federal Agriculture Mortgage Corporation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Farm Service Agency
Federal Savings and Loan Insurance Corporation

G-7
G-10
GDP
GNMA
HUD
IMF
IOs
IPCs
IRA
MMDA
MSA
NOW
OCDs
OPEC
OTS
PMI
POs
REIT
REMICs
RHS
RP
RTC
SCO
SDR
SIC
VA

Group of Seven
Group of Ten
Gross domestic product
Government National Mortgage Association
Department of Housing and Urban
Development
International Monetary Fund
Interest only, stripped, mortgage-back securities
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Metropolitan statistical area
Negotiable order of withdrawal
Other checkable deposits
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Private mortgage insurance
Principal only, stripped, mortgage-back securities
Real estate investment trust
Real estate mortgage investment conduits
Rural Housing Service
Repurchase agreement
Resolution Trust Corporation
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Department of Veterans Affairs

GENERAL INFORMATION
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




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 2001

1.10

RESERVES, M O N E Y STOCK, A N D DEBT

MEASURES

Percent annual rate of change, seasonally adjusted 1
2000

2001

2001

Monetary or credit aggregate
Q2

Q3

Q4r

Qi r

-10.9
-7.7
-12.5
-3.6

-8.3
-8.6
-9.9
2.5

-8.7
-10.4
-6.4
2.8

-2.1
-3.5
.5
6.4

- 1.9r
6.4
9.0
6.1

-3.7r
5.6r
8.8
4.6r

-3.3
6.3
7.0
4.5

9.0
15.2r

8.5
16.3r

8.0r
13.3r
17.1

Jan.r

Feb/

Mar.r

Apr.r

May

10.0
12.7
14.3
11.2

1.2
-4.5
1.9
3.5

-18.8
-18.0
-19.0
2.6

16.6
20.8
16.9
7.1

3.2
11.5
-1.8
6.3

5.1
10.7
12.2
4.8

12.6
12.2
15.8
3.3

.9
10.9
9.9
5.0

13.8
14.4
9.5
6.0

5.3
10.4
17.6
3.4

-.6
5.1
13.3
n.a.

9.1
8.8

12.3
15.9

12.1
24.1

13.7
7.5

14.6
-1.5

11.8
34.4

6.7
32.0

11.8
10.5
11.5

12.0
5.6
4.1

17.4
2.5
-1.3

13.8
5.3
22.8

24.7
-4.8
-57.4

19.7
-7.0
-46.8

20.4
-9.3
35.6

18.0
-9.2
8.8

1.4r
3.7r
.6

3.1r
10.8
23.2r

.4
9.5
14.0

6.4
6.4
11.9

.3
11.1
32.6

26.5
2.7
6.8

23.6
-3.4
2.3

10.2
1.0
20.2

32.3
6.9
19.9

Money market mutual funds
17 Retail
18 Institution-only

13.4
17.8r

3.9r
29.0r

11.6
18.6

16.9
49.8

20.5
51.2

8.7
86.6

24.6
40.7

18.1
42.4

-11.8
67.2

Repurchase agreements and eurodollars
19 Repurchase agreements10
20 Eurodollars10

11.0
15.0

8.2
.6

-3.6
10.3

-13.7
3.1

-14.0
-14.0

-33.7
4.9

-24.3
14.7

71.5
-61.8

3.3
8.3

-7.5
9.6r

-7.3
7.6r

-8.0
7.5

-5.4
7.2

-7.1
5.7

-2.9
6.8

1.2
7.1

-10.9
6.6

institutions2

1
2
3
4

Reserves of depositor
Total
Required
Nonborrowed
Monetary base3

5
6
7
8

Concepts of money and debt4
Ml
M2
M3
Debt

Nontransaction components
9 In M2 5
10 In M3 only6
Time and savings deposits
Commercial banks
Savings, including MMDAs
Smalltime 7
Large time8'9
Thrift institutions
14
Savings, including MMDAs
15
Small time7
16
Large time8

11
12
13

Debt components4
21 Federal
22 Nonfederal

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. 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 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: (I) 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 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, 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) savings (including MMDAs), (2) small-denomination time deposits (time
deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail
money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh
balances at depository institutions and money market funds. Seasonally adjusted M2 is
calculated by summing savings deposits, small-denomination time deposits, and retail money
fund balances, each seasonally adjusted separately, and adding this result to seasonally
adjusted M1.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2)
balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all




n.a.
n.a.

depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at
foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom
and Canada. Excludes amounts held by depository institutions, the U.S. government, money
market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated
by summing large time deposits, institutional money fund balances, RP liabilities,
and eurodollars, each seasonally adjusted separately, and adding this result to seasonally
adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enterprises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances, each seasonally adjusted separately.
6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) eurodollars (overnight and
term) of U.S. addressees, each seasonally adjusted separately.
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, the U.S. government, and foreign banks and official institutions.
10. Includes both overnight and term.

Money Stock and Bank Credit
1.11

RESERVES OF DEPOSITORY INSTITUTIONS A N D RESERVE B A N K

A5

CREDIT1

Millions of dollars

Factor

Average of
daily figures

Average of daily figures for week ending on date indicated

2001

2001

Mar.

Apr.

May

Apr. 18

Apr. 25

May 2

May 9

May 16

May 23

May 30

577,856

580,694

585,031

581,623

579,189

586,387

580,001

584,842

582,062

590,572

522,787
0

523,962
0

526,810
0

522,374
0

525,432
0

527,036
0

524,714
0

527,258
0

526,099
0

529,168
0

10
0
19,105
0

10
0
20,009
0

10
0
21,907
0

10
0
22,220
0

10
0
17,183
0

10
0
22,443
0

10
0
17,433
0

10
0
20,053
0

10
0
20,915
0

10
0
26,534
0

27
19
0
0
406
35,502

29
35
0
0
251
36,398

129
80
0
0
-91
36,187

4
40
0
0
613
36,362

29
36
0
0
-402
36,900

10
41
0
0
-401
37,247

8
69
0
0
257
37,511

525
88
0
0
-153
37,061

3
83
0
0
130
34,823

22
86
0
0
-507
35,259

11,046
2,200
32,191

11,046
2,200
32,349r

11,046
2,200
32,488

11,046
2,200
32,347r

11,046
2,200
32,382r

11,046
2,200
32,417

11,046
2,200
32,447

11,046
2,200
32,475

11,046
2,200
32,504

11,046
2,200
32,533

585,180
0
496

588,086r
0
500

591,535
0
514

588,863r
0
503

588,00 r
0
512

588,369
0
516

589,718
0
518

590,329
0
517

590,981
0
511

594,970
0
510

5,390
85
6,859
260
18,232
6,789

5,903
92
6,940
352
17,806
6,609

5,149
100
6,946
350
17,971
8,198

5,491
79
6,785
342
17,953
7,200r

6,894
119
7,03 l r
347
17,971
3,941

6,733
86
7,241
357
17,983
10,765

5,053
75
6,877
365
18,034
5,053

5,169
104
6,843
395
17,946
9,261

4,993
76
7,087
342
17,944
5,877

5,148
148
6,879
294
17,960
10,441

May 16

May 23

May 30

SUPPLYING RESERVE FUNDS
1 Reserve Bank credit outstanding
U.S. government securities"
2
Bought outright—System account3
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
Repurchase agreements—triparty4
6
Acceptances
7
Loans to depository institutions
Adjustment credit
8
9
Seasonal credit
10
Special Liquidity Facility credit
11
Extended credit
1?
Float
13
Other Federal Reserve assets
14 Gold stock
15 Special drawing rights certificate account
16 Treasury currency outstanding
ABSORBING RESERVE FUNDS
17 Currency in circulation
18 Reverse repurchase agreements—triparty
19 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
70
Treasury
71
Foreign
Service-related balances and adjustments
77
73
Other
74 Other Federal Reserve liabilities and capital
25 Reserve balances with Federal Reserve Banks

. ..

Wednesday figures

End-of-month figures
Mar.

Apr.

Apr. 18

May

Apr. 25

May 2

May 9

SUPPLYING RESERVE FUNDS

1 Reserve Bank credit outstanding
U.S. government securities2
2
Bought outright—System account3
3
Held under repurchase agreements
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements
Repurchase agreements—triparty4
6
Acceptances
7
Loans to depository institutions
Adjustment credit
8
9
Seasonal credit
10
Special Liquidity Facility credit
11
Extended credit
P
Float
13
Other Federal Reserve assets
14
15 Special drawing rights certificate account
16 Treasury currency outstanding

581,870

587,708

591,914

590,736

580,474

593,177

580,286

594,063

584,945

608,194

523,862
0

525,911
0

527,562
0

525,195
0

527,300
0

526,643
0

526,442
0

528,380
0

525,608
0

529,372
0

10
0
21,995
0

10
0
25,007
0

10
0
30,310
0

10
0
29,264
0

10
0
16,507
0

10
0
29,257
0

10
0
15,007
0

10
0
31,747
0

10
0
23,705
0

10
0
42,380
0

8
14
0
0
180
35,801

44
36

67
86

11
37

0

0
-370
37,069

-998
34,878

0
-274
36,494

0
0

977
37,754

0
-683
34,500

1
84
0
0
478
35,058

1
89

0

10
54
0
0
4
37,200

24
86

0
0

32
34
0
0
-596
37,188

12
83

0

0
846
35,495

11,046
2,200
32,271

11,046
2,200
32,417r

11,046
2,200
32,562

11,046
2,200
32,347r

11,046
2,200
32,382r

11,046
2,200
32,417

11,046
2,200
32,447

11,046
2,200
32,475

11,046
2,200
32,504

11,046
2,200
32,533

585,853
0
478

588,191r
0
516

595,911
0
510

589,793r
0
512

r

516

590,197
0
518

591,330
0
518

591,648
0
511

593,311
0
510

596,594
0
510

5,657
70
6,757
248
17,441
10,882

7,894
102
7,241
403
18,232
10,792

4,396
85
7,045
321
17,845
11,609

6,753
107
6,785
335
17,677
14,368r

7,483
121
7,03 f
330
17,660
4,130

5,714
115
7,241
369
17,792
16,895

4,427
89
6,877
355
17,685
4,697

5,309
76
6,843
355
17,654
17,389

4,788
84
7,087
328
17,685
6,901

4,301
72
6,879
295
17,738
27,583

0

ABSORBING RESERVE FUNDS

17 Currency in circulation
18 Reverse repurchase agreements—triparty
19 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
?0
71
Service-related balances and adjustments
77
Other
74 Other Federal Reserve liabilities and capital
25 Reserve balances with Federal Reserve Banks5 . . .

1. Amounts of cash held as reserves are shown in table 1.12, line 2.
2. Includes securities loaned—fully guaranteed by U.S. government securities pledged
with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back
under matched sale-purchase transactions.
3. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities.




588,83

4. Cash value of agreements arranged through third-party custodial banks. These agreements are collateralized by U.S. government and federal agency securities.
5. Excludes required clearing balances and adjustments to compensate for float,

A6

DomesticNonfinancialStatistics • August 2001

1.12

RESERVES A N D BORROWINGS

Depository Institutions1

Millions of dollars
Prorated monthly averages of biweekly averages
Reserve classification

1
2
3
4
5
6
7
8
9
10
11
12

Reserve balances with Reserve Banks2
Total vault cash3
Applied vault cash4
Surplus vault cash5
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Special Liquidity Facility8
Extended credit9

1998

1999

2000

2000

2001

Dec.

Dec.

Dec.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr/

May

9,026
44,294
36,183
8,111
45,209
43,695
1,514
117
101
15
0
0

5,262
60,619
36,392
24,227
41,654
40,357
1.297
320
179
67
74
0

7,159
45,229r
31,381
13,848r
38,540
37,216
1,325
210
99
111
0
0

7,156
44,636r
31,629
13,007r
38,786
37,584
1,201
283
124
159
0
0

7,159
45,229r
31,381
13,848r
38,540
37,216
1,325
210
99
111
0
0

7,190
47,683r
32,601
15,083r
39,791
38,538
1,253
73
39
34
0
0

6,615
48,517r
32,734
15,783r
39,349
37,917
1,432
51
30
21

6,737
44,104r
30,978
13,127r
37,715
36,329
1,385
58
38
20

6,863
43,656
31,728
11,929
38,591
37,314
1,277
51
15
35

7,612
43,263
31,773
11,490
39,385
38,363
1,022
213
134
79

0

0

0

0

Biweekly averages of daily figures for two-week periods ending on dates indicated
2001

1
2
3
4
5
6
7
8
9
10
11
12

Reserve balances with Reserve Banks2
Total vault cash3
Applied vault cash4
Surplus vault cash5
Total reserves6
Required reserves
Excess reserve balances at Reserve Banks7
Total borrowing at Reserve Banks
Adjustment
Seasonal
Special Liquidity Facility8
Extended credit9

Feb. 7

Feb. 21

Mar. 7

Mar. 21

Apr. 4

Apr. 18r

May 2

May 16

May 30

June 13

6,410
52,714r
34,631
18,083r
41,041
39,844
1,196
34
9
25

6,608
48,624r
32,380
16,245r
38,988
37,361
1,627
38
18
20

6,836
44,107r
31,547
12,561r
38,382
37,103
1,279
95
76
19

6,296
43,875r
30,304
13,571r
36,600
35,419
1,180
38
17
21

7,287
44,424r
31,523
12,902r
38,809
37,062
1,747
60
42
18

6,326
43,409
31,199
12,210
37,525
36,329
1,196
42
4
38

7,350r
43,690r
32,413
1 l,277 r
39,763r
38,549
1,214r
59
20
39

7,159
42,645
31,033
11,612
38,191
37,303
888
346
267
79

8,163
43,900
32,530
11,370
40,693
39,581
1,112
97
13
85

6,768
42,155
30,271
11,884
37,039
35,776
1,262
295
195
101

0

0

0

0

0

0

0

0

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. Data are not break-adjusted or seasonally adjusted.
2. Excludes required clearing balances and adjustments to compensate for float and
includes other off-balance-sheet "as-of' adjustments.
3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by
those banks and thrift institutions that are not exempt from reserve requirements. Dates refer
to the maintenance periods in which the vault cash can be used to satisfy reserve requirements.
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.




0

5. Total vault cash (line 2) less applied vault cash (line 3).
6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash
(line 3).
7. Total reserves (line 5) less required reserves (line 6).
8. Borrowing at the discount window under the terms and conditions established for the
Century Date Change Special Liquidity Facility in effect from October 1, 1999, through
April 7, 2000.
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
with traditional short-term adjustment credit, the money market effect of extended credit is
similar to that of nonborrowed reserves.

Policy Instruments
1.14

A7

FEDERAL RESERVE B A N K INTEREST RATES
Percent per year
Current and previous levels
Seasonal credit2

Adjustment credit'
Federal Reserve
Bank

On
7/6/01

Effective date

Previous rate

On
7/6/01

Effective date

Previous rate

On
7/6/01

Effective date

Previous rate

6/27/01
6/27/01
6/27/01
6/28/01
6/28/01
6/27/01

3.50

3.80

6/28/01

3.95

4.30

6/28/01

4.45

3.50

3.80

6/28/01

3.95

4.30

6/28/01

4.45

3.25

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . . .

Extended credit3

6/27/01
6/29/01
6/28/01
6/28/01
6/27/01
6/27/01

3.25

Range of rates for adjustment credit in recent years4

Effective date

In effect Dec. 31, 1977
1978—Jan.

Range (or
level)—All
F.R. Banks
6

F.R. Bank
of
N.Y.
6

9
20
11
12
3
10
21
22
16
20
1
3

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
July 28
29
Sept. 26
Nov. 17
Dec. 5
8

12-13
13
12-13
12
11-12
11
10-11
10
11
12
12-13
13

13
13
13
12
11
11
10
10
11
12
13
13

1981— May

13-14
14
13-14
13
12

14
14
13
13
12

May
July
Aug.
Sept.
Oct.
Nov.

5
8
Nov. 2
6
Dec. 4

1982—July 20
23
Aug. 2
3
16
27
30

11.5-12
11.5
11-11.5
11
10.5
10-10.5
10

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

11.5
11.5
11
11
10.5
10
10

Range (or
level)—All
F.R. Banks

F.R. Bank
of
N.Y.

1982—Oct. 12
13
Nov. 22
26
Dec. 14
15
17

9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5

9.5
9.5
9
9
9
8.5
8.5

1984—Apr.

9
13
Nov. 21
26
Dec. 24

8.5-9
9
8.5-9
8.5

9
9
8.5
8.5

1985—May 20
24

7.5-8
7.5

7.5
7.5

1986—Mar. 7
10
Apr. 21
23.
July 11
Aug. 21
22

7-7.5
7
6.5-7
6.5
6
5.5-6
5.5

7
7
6.5
6.5
6
5.5
5.5

1987—Sept. 4
11

5.5-6
6

6
6

1988—Aug. 9
11

6-6.5
6.5

6.5
6.5

1989—Feb. 24
27

6.5-7
7

7
7

Effectix

F.R. Bank
of
N.Y.

3-3.5
3.5
3.5^
4
4-4.75
4.75

3.5
3.5
4
4
4.75
4.75

1
9

4.75-5.25
5.25

5.25
5.25

1996—Jan. 31
Feb. 5

5.00-5.25
5.00

5.00
5.00

1998—Oct. 15
16
Nov. 17
19

4.75-5.00
4.75
4.50-4.75
4.50

4.75
4.75
4.50
4.50

1999—Aug. 24
26
Nov. 16
18

4.50-4.75
4.75
4.75-5.00
5.00

4.75
4.75
4.75
5.00

2000—Feb.

5.00-5.25
5.25
5.25-5.50
5.50
5.50-6.00
6.00

5.25
5.25
5.50
5.50
5.50
6.00

5.75-6.00
5.50-5.75
5.50
5.00-5.50
5.00
4.50-5.00
4.50
4.00-4.50
4.00
3.50-4.00
3.50
3.25-3.50
3.25

5.75
5.50
5.50
5.00
5.00
4.50
4.50
4.00
4.00
3.50
3.50
3.25
3.25

3.25

3.25

1994—May 17
18
Aug. 16
18
Nov. 15
17
1995—Feb.

8

8

2
4
Mar. 21
23
May 16
19

2001—Jan.

1990—Dec. 19
1991—Feb.
Apr.
May
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
3.5^1.5
3.5

6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5

2
7

3-3.5
3

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 charged by 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 ordinarily is
charged on extended-credit loans outstanding less than thirty days; however, at the discretion




Range (or
level)—All
F.R. Banks

Effective date

Feb.
Mar.
Apr.
May
June
June

3
4
5
31
1
20
21
18
20
15
17
27
29

In effect July 6, 2001

3
3

of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a
flexible rate somewhat above rates charged 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, 19701979.
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.

A8

DomesticNonfinancialStatistics • August 2001

1.15

RESERVE REQUIREMENTS OF DEPOSITORY

INSTITUTIONS1

Requirement
Type of deposit

Net transaction accounts"
1 $0 million-$42.8 million3
2 More than $42.8 million4

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 the Monetary Control Act of 1980, depository institutions
include commercial banks, savings banks, savings and loan associations, credit unions,
agencies and branches of foreign banks, and Edge Act corporations.
2. Transaction accounts include all deposits against which the account holder is permitted
to make withdrawals by negotiable or transferable instruments, payment orders of withdrawal, or telephone or preauthorized transfers for the purpose of making payments to third
persons or others. However, 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
by check, draft, debit card, or similar order payable directly to third parties) are savings
deposits, not transaction accounts.
3. 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 of each year. Effective with the reserve maintenance period beginning
December 28, 2000, for depository institutions that report weekly, and with the period
beginning January 18, 2001, for institutions that report quarterly, the amount was decreased
from $44.3 million to $42.8 million.
Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the
amount of reservable liabilities subject to a zero percent reserve requirement each year for the




Percentage of
deposits

Effective date

3
10

12/28/00
12/28/00

0

12/27/90

0

12/27/90

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 made in the event of a decrease. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve
maintenance period beginning December 28, 2000, for depository institutions that report
weekly, and with the period beginning January 18, 2001, for institutions that report quarterly,
the exemption was raised from $5.0 million to $5.5 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 1.5 years was reduced from 3 percent to 1.5 percent for
the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that
began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on
nonpersonal time deposits with an original maturity of less than 1.5 years was reduced from 3
percent to zero on Jan. 17, 1991.
The reserve requirement on nonpersonal time deposits with an original maturity of 1.5
years or more has been zero since Oct. 6, 1983.
6. The reserve requirement on eurocurrency liabilities was reduced from 3 percent to zero
in the same manner and on the same dates as the reserve requirement on nonpersonal time
deposits with an original maturity of less than 1.5 years (see note 5).

Policy Instruments

A9

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS 1
M i l l i o n s o f dollars

2001

2000
Type of transaction
and maturity

1998

2000

1999

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

U.S. TREASURY SECURITIES2

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Outright transactions (excluding
transactions)
Treasury bills
Gross purchases
Gross sales
Exchanges
For new bills
Redemptions
Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions
One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges
Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges
All maturities
Gross purchases
Gross sales
Redemptions

matched

Matched
transactions
26 Gross purchases
27 Gross sales
Repurchase
agreements
28 Gross purchases
29 Gross sales
30 Net change in U.S. Treasury securities

3,550
0
450,835
450,835
2,000

0
0
464,218
464,218
0

8,676
0
477,904
477,904
24,522

779
0
38,142
38,142
2,656

2,507
0
45,182
45,182
1,021

509
0
39,428
39,428
1,145

520
0
40,769
40,769
228

2,683
0
42,767
42,767
638

579
0
46,712
46,712
211

308
0
38,317
38,317
3,537

6,297
0
46,062
-49,434
2,676

11,895
0
50,590
-53,315
1,429

8,809
0
62,025
-54,656
3,779

0
0
8,663
-6,608
787

580
0
7,957
-7,012
780

1,420
0
0
0
0

0
0
10,296 r
-6,667
2,422

1,605
0
5,609 r
-6,799
1,529

67
0
0
0
0

3,027
0
12,204
-7,000
4,368

12,901
0
-37,777
37,154

19,731
0
-44,032
42,604

14,482
0
-52,068
46,177

734
0
-8,663
6,608

1,332
0
-5,997
5,737

1,045
0
0
0

925
0
— I0,296 r
6,667

2,983
0
—2,784 r
4,945

1,883
0
0
0

4,480
0
-12,204
7,000

2,294
0
-5,908
7,439

4,303
0
-5,841
7,583

5,871
0
-6,801
6,585

0
0
0
0

510
0
-699
1,275

771
0
0
0

1,283
0
0
0

0
0
- l,855 r
971

0
0
0
0

1,390
0
0
0

4,884
0
-2,377
4,842

9,428
0
-717
3,139

5,833
0
-3,155
1,894

982
0
0
0

0
0
-1,261
0

0
0
0
0

296
0
0
0

495
0
—971r
883

1,000
0
0
0

913
0
0
0

29,926
0
4,676

45,357
0
1,429

43,670
0
28,301

2,495
0
3,443

4,929
0
1,802

3,745
0
1,145

3,024
0
2,650

7,766
0
2,166

3,529
0
211

10,118
0
7,905

4,430,457
4,434,358

4,413,430
4,431,685

4,399,257
4,381,188

344,920
346,428

351,391
351,232

345,680
348,917

356,250
352,336

320,060
322,056

396,029
395,151

381,667
381,895

512,671
514,186

281,599
301,273

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

19,835

5,999

33,439

-2,457

3,286

-637

4,289

3,604

4,196

1,984

0
25
322

0
0
157

0
0
51

0
0
0

0
0
0

0
0
0

0
0
0

0
0
120

0
0
0

0
0
0

284,316
276,266

360,069
370,772

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

7,703

-10,859

-51

0

0

0

0

-120

0

0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

304,989
164,349

890,236
987,501

64,428
62,308

87,125
79,295

95,470
79,365

104,930
129,385

67,655
62,910

86,472
88,142

85,166
82,154

0

140,640

-97,265

2,120

7,830

16,105

-24,455

4,745

-1,670

3,012

27,538

135,780

-63,877

-337

11,116

15,468

-20,166

8,229

2,526

4,996

FEDERAL AGENCY OBLIGATIONS

Outright transactions
31 Gross purchases
32 Gross sales
33 Redemptions
Repurchase
agreements
34 Gross purchases
35 Gross sales
36 Net change in federal agency obligations
Reverse repurchase
37 Gross purchases
38 Gross sales

agreements

Repurchase
agreements
39 Gross purchases
40 Gross sales
41 Net change in triparty obligations
42 Total net change in System Open Market A c c o u n t . . .

1. Sales, redemptions, and negative figures reduce holdings of the System Open Market
Account; all other figures increase such holdings.




2. Transactions exclude changes in compensation for the effects of inflation on the principal
of inflation-indexed securities.

A10
1.18

DomesticNonfinancialStatistics • August 2001
FEDERAL RESERVE BANKS

Condition and Federal Reserve N o t e Statements1

Millions of dollars

Account
May 2

May 9

Wednesday

End of month

2001

2001

May 16

May 23

May 30

Mar. 31

Apr. 30

May 31

Consolidated condition statement
ASSETS

11,046
2,200
1,117

11,046
2,200
1,110

11,046
2,200
1,103

11,046
2,200
1,096

11,046
2,200
1,070

11,046
2,200
1,179

11,046
2,200
1,129

11,046
2,200
1,075

63
0
0

95
0
0

110
0
0

85
0
0

90
0
0

22
0
0

80
0
0

154

29,257

15,007

31,747

23,705

42,380

21,995

25,007

30,310

10

10
0

10
0

10
0

10
0

10
0

10

0

0

10
0

10 Total U.S. Treasury securities3

526,643

526,442

528,380

525,608

529,372

523,862

525,911

527,562

u Bought outright4
12
Bills
13
Notes
14
Bonds
15 Held under repurchase agreements

526,643
181,516
247,967
97,160
0

526,442
178,908
249,369
98,165
0

528,380
178,708
251,534
98,139

529,372
178,786
252,357
98,230

0

525,608
175,026
252,354
98,228
0

0

523,862
184,244
243,661
95,957
0

525,911
180,787
247,965
97,159
0

527,562
177,911
251,415
98,236
0

16 Total loans and securities

555,973

541,554

560,247

549,408

571,853

545,889

551,008

558,035

9,512
1,498

8,911
1,499

7,869
1,499

7,633
1,499

10,612
1,499

6,292
1,487

2,569
1,497

7,670
1,504

14,768
20,734

14,774
21,281

14,780
18.132

14,787
18,587

14,793
19,020

14,554
19,748

14,766
20,602

14,759
18,441

616,847

602,375

616,875

606,256

632,094

602,394

604,818

614,730

559,415
0

560,512

560,786

565,642
0

555,239
0

564,934

0

562,413
0

557,418

0

0

0

30,208

16,110

30,340

18,605

38,664

23,803

26,571

24,040

24,010
5,714
115
369

11,240
4,427
89
355

24,600
5,309
76
355

13,406
4,788
84
328

33,995
4,301
72
295

17,828
5,657
70
248

18,172
7,894
102
403

19,238
4,396
85
321

9,432
3,510

8,067
3,461

8,095
3.418

7,553
3,398

10,050
3,390

5,911
3,858

2,596
3,520

7,910
3,467

602,565

588,151

602,639

591,969

617,746

588,811

590,105

600,351

7,043
6,445
794

7,045
6,479
701

7,027
6,508
701

7,060
6,542
685

7,069
6,566
712

7,029
6,217
336

7,043
6,371
1,299

7,070
6,557
751

616,847

602,375

616,875

606,256

632,094

602,394

604,818

614,730

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

1 Gold certificate account
2 Special drawing rights certificate account
3
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Triparty Obligations
7 Repurchase agreements—triparty2
Federal agency obligations3
8 Bought outright
y Held under repurchase agreements

17 Items in process of collection
18 Bank premises
Other assets
19 Denominated in foreign currencies5
20 All other6
21 Total assets

0

0

LIABILITIES
22 Federal Reserve notes
23 Reverse repurchase agreements—triparty"
24 Total deposits
25
26
27
28

Depository institutions
U.S. Treasury—General account
Foreign—Official accounts
Other

?9 Deferred credit items
30 Other liabilities and accrued dividends7
31 Total liabilities
CAPITAL ACCOUNTS

32 Capital paid in
33 Surplus
34 Other capital accounts
35 Total liabilities and capital accounts

MEMO

36 Marketable U.S. Treasury securities held in custody for
foreign and international accounts

Federal Reserve note statement
37 Federal Reserve notes outstanding (issued to Banks)
38
LESS: Held by Federal Reserve Banks
39
Federal Reserve notes, net
40
41
4?
43

Collateral held against notes, net
Gold certificate account
Special drawing rights certificate account
Other eligible assets
U.S. Treasury and agency securities

44 Total collateral

739,661
180,246
559,415

739,143
178,631
560,512

738.483
177,696
560,786

737,903
175,490
562,413

737,129
171,487
565,642

741,342
186,103
555,239

739,839
182,421
557,418

736,954
172,020
564,934

11,046
2,200
0
546,169

11,046
2,200
5,808
541,459

11,046
2,200

11,046
2,200
0
552,396

11,046
2,200
0
541,993

11,046
2,200

11,046
2,200

0

0

547,541

11,046
2,200
0
549,167

544,172

551,689

559,415

560,512

560,786

562,413

565,642

555,239

557,418

564,934

t. 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. Cash value of agreements arranged through third-party custodial banks.
3. Face value of the securities.
4. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with
Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on
the principal of inflation-indexed securities. Excludes securities sold and scheduled to be
bought back under matched sale-purchase transactions.




0

5. Valued monthly at market exchange rates.
6. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury
bills maturing within ninety days.
7. Includes exchange-translation account reflecting the monthly revaluation at market
exchange rates of foreign exchange commitments.

Federal Reserve Banks
1.19

FEDERAL RESERVE BANKS

All

Maturity Distribution of Loan and Security Holding

Millions of dollars

Type of holding and maturity
May 2

Wednesday

End of month1

2001

2001

May 9

May 16

May 23

May 30

Mar. 31

Apr. 30

May 31

1 Total loans

63

95

109

85

91

22

80

154

2 Within fifteen days2
3 Sixteen days to ninety days
4 91 days to 1 year

15
48
0

27
69
0

50
59
0

81
4
0

86
5
0

22
0
0

72
8
0

132
21
0

526,643

526,442

528,380

525,608

529,372

523,861

525,912

527,562

21,550
116,637
122,016
135,551
56,338
74,552

21,156
116,387
121,476
135,551
56,340
75,531

19,176
112,824
123,384
140,735
57,502
74,759

19,531
111,343
120,829
141,640
57,505
74,760

18,608
116,467
120,387
141,641
57,507
74,762

9,959
126,988
122,234
136,157
54,923
73,600

18,127
113,525
127,821
135,551
56,337
74,551

4,645
115,568
135,422
139,658
57,508
74,762

10

10

10

10

10

10

10

10

0
0
0
10
0
0

0
0
0
10
0
0

0
0
0
10
0
0

0
0
0
10
0
0

0
0
0
10
0
0

0
0
0
10
0
0

0
0
0
10
0
0

0
0
0
10
0
0

5 Total U.S. Treasury securities3
6
7
8
9
10
11

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

12 Total federal agency obligations
13
14
15
16
17
18

Within fifteen days2
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. Denotes last calendar day of the month, but data reflect last Wednesday of the month.
2. Holdings under repurchase agreements are classified as maturing within fifteen days in
accordance with maximum maturity of the agreements.




3. Includes compensation that adjusts for the effects of inflation on the principal of
inflation-indexed securities,

A12
1.20

DomesticNonfinancialStatistics • August 2001
AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS A N D MONETARY

BASE1

Billions of dollars, averages of daily figures
2001

2000
Item

1997
Dec.

1998
Dec.

1999
Dec.

2000
Dec.
Oct.

Total reserves3
Nonborrowed reserves4
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base6

Jan.

Feb.

Mar.

Apr.

May

38.83
38.75
38.75
37.57
589.39r

38.87
38.82
38.82
37.43
591.12r

38.26
38.20
38.20
36.87
592.42r

38.79
38.74
38.74
37.51
595.92r

38.89
38.68
38.68
37.87
599.03

Dec.

Seasonally adjusted

ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS2
1
2
3
4
5

Nov.

46.85
46.52
46.52
45.16
479.47

45.18
45.07
45.07
43.67
513.49

41.78
41.46
41.46
40.48
593.09

38.51
38.30
38.30
37.18
583.96r

39.02
38.60
38.60
37.87
579.70

39.02
38.74
38.74
37.82
581.40

38.51
38.30
38.30
37.18
583.96r

Not seasonally adjusted
6
7
8
9
10

Total reserves7
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves8
Monetary base9

48.01
47.69
47.69
46.33
484.98

45.31
45.19
45.19
43.80
518.27

41.89
41.57
41.57
40.59
600.72

38.60
38.39
38.39
37.27
590.20

38.84
38.42
38.42
37.69
578.29

38.85
38.56
38.56
37.65
582.36

38.60
38.39
38.39
37.27
590.20

39.78
39.70
39.70
38.52
591.50

39.38
39.33
39.33
37.95
589.04

37.76
37.71
37.71
36.38
591.36

38.66
38.61
38.61
37.38
594.92r

39.47
39.25
39.25
38.44
598.54

47.92
47.60
47.60
46.24
491.79
1.69
.32

45.21
45.09
45.09
43.70
525.06
1.51
.12

41.65
41.33
41.33
40.36
608.02
1.30
.32

38.54
38.33
38.33
37.22
597.12
1.33
.21

38.78
38.36
38.36
37.63
585.01
1.15
.42

38.79
38.50
38.50
37.58
589.12
1.20
.28

38.54
38.33
38.33
37.22
597.12
1.33
.21

39.79
39.72
39.72
38.54
598.38
1.25
.07

39.35
39.30
39.30
37.92
595.59
1.43
.05

37.72
37.66
37.66
36.33
598.20
1.39
.06

38.59r
38.54
38.54
37.31r
601.84r
1.28
.05

39.39
39.17
39.17
38.36
605.45
1.02
.21

NOT ADJUSTED FOR
CHANGES IN RESERVE REQUIREMENTS10
11
12
13
14
15
16
17

Total reserves"
Nonborrowed reserves
Nonborrowed reserves plus extended credit5
Required reserves
Monetary base 12
Excess reserves13
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 starting in 1959 and estimates of the effect on required
reserves of changes in reserve requirements are available from the Money 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 "breaks," associated with regulatory
changes in reserve requirements. (See also table 1.10.)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, breakadjusted 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 with traditional short-term adjustment credit, the money market effect
of extended credit is similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (I) seasonally
adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency
component of the money stock, plus (3) (for all quarterly reporters on the "Report of
Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters
whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
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 what required reserves
would have been in past periods had current reserve requirements been in effect. Breakadjusted 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 Cash" and for all
those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted
difference between current vault cash and the amount applied to satisfy current reserve
requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no
adjustments to eliminate the effects of discontinuities associated with regulatory 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
Cash" 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 February 1984, 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).

Monetary and Credit Aggregates
1.21

A13

MONEY STOCK AND DEBT MEASURES 1
Billions of dollars, averages of daily figures

Item

1997
Dec.

1998
Dec.

1999r
Dec.

2000r
Dec.

2001
Feb.r

Mar.r

Apr/

May

Seasonally adjusted

1
2
3
4

Measures2
Ml
M2
M3
Debt

5
6
7
8

Ml components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6

1,073.4
4,031,9r
5,430.8r
15,223.2r

1,097.0
4,385.9r
6,030.8r
16,246. l r

1,124.8
4,653.3
6,530.6
17,315.1

1,088.2
4,945.2
7,100.4
18,222.1

1,100.4
5,040.6
7,252.7
18,347.9

1,113.1
5,101.1
7,310.2
18,440.4

1,118.0
5,145.1
7,417.7
18,492.4

1,117.4
5,167.0
7,500.2
n.a.

424.3
8.1
395.4
245.7

459.2
8.2
379.4
250.1

516.7
8.2
356.1
243.7

529.9
8.0
311.3
239.0

537.7
8.0
313.4
241.4

539.8
7.9
316.5
248.9

542.6
7.8
313.0
254.8

546.1
8.0
312.3
251.1

Nontransaction components
9 In M27
10 In M3 only8

2,958.5r
l,399.0 r

3,288.9r
l,645.0 r

3,528.5
1,877.3

3,857.0
2,155.1

3,940.2
2,212.0

3,988.0
2,209.2

4,027.1
2,272.6

4,049.6
2,333.2

Commercial banks
11 Savings deposits, including MMDAs
12 Small time deposits9
13 Large time deposits10, "

1,021.1
625.5
517.4r

1,185.8
626.4
575.2r

1,287.0
635.2
648.3

1,421.7
699.7
726.5

1,467.6
700.0
704.9

1,491.7
695.9
677.4

1,517.0
690.5
697.5

1,539.7
685.2
702.6

Thrift institutions
14 Savings deposits, including MMDAs
15 Small time deposits9
16 Large time deposits10

376.8
342.9
85.5

414.1
325.8
88.7

449.3
320.9
91.3

451.9
346.6
103.2

462.0
350.6
106.6

471.1
349.6
106.8

475.1
349.9
108.6

487.9
351.9
110.4

Money market mutual funds
17 Retail
18 Institution-only

592. l r
391.8r

736.8r
531.8r

836.2
623.5

937.2
768.3

960.1
858.9

979.8
888.0

994.6
919.4

984.8
970.9

Repurchase agreements and eurodollars
19 Repurchase agreements' 2
20 Eurodollars12

254.3
150.0

297.5
151.8

340.8
173.3

360.2
197.1

346.0
195.6

339.0
198.0

359.2
187.8

360.2
189.1

3,751.2
12,494.9r

3,660.3
13,654.9

3,400.5
14,821.6

3,372.1
14,975.9

3,375.4
15,065.0

3,344.7
15,147.7

n.a.
n.a.

Debt components
21 Federal debt
22 Nonfederal debt

3,800.6
1 l,422.6 r

Not seasonally adjusted

23
24
25
26

Measures"
Ml
M2
M3
Debt

27
28
29
30

MI components
Currency3
Travelers checks4
Demand deposits5
Other checkable deposits6

1,096.9
4,053.2r
5,456.2r
15,218.9r

1,120.4
4,408.2r
6,062.9r
16,241.4r

1,148.3
4,677.3
6,568.1
17,310.5

1,112.4
4,973.8
7,145.5
18,214.7

1,087.8
5,039.4
7,287.5
18,343.3

1,107.8
5,135.6
7,372.4
18,439.4

1,123.2
5,209.1
7,480.4
18,464.5

1,111.4
5,143.0
7,475.8
n.a.

428.1
8.3
412.4
248.2

463.3
8.4
395.9
252.8

521.5
8.4
371.7
246.6

535.2
8.1
326.6
242.5

536.2
8.2
304.3
239.2

539.8
8.0
311.4
248.6

543.0
7.9
313.0
259.3

546.1
8.0
307.2
250.1

Nontransaction components
31 In M27
32 In M3 only8

2,956.3r
l,403.0 r

3,287.8r
1,654.8'

3,529.1
1,890.7

3,861.4
2,171.6

3,951.6
2,248.1

4,027.8
2,236.8

4,085.9
2,271.3

4,031.5
2,332.8

Commercial banks
33 Savings deposits, including MMDAs
34 Small time deposits9
35 Large time deposits10, 11

1,020.4
625.3
516.8r

1,186.0
626.5
574.5r

1,288.5
635.4
647.7

1,426.4
699.9
725.8

1,459.3
702.3
705.3

1,498.5
697.7
682.8

1,542.1
691.1
702.4

1,535.3
682.9
708.4

Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits9
38 Large time deposits10

376.5
342.8
85.4

414.2
325.8
88.6

449.8
321.0
91.2

453.4
346.8
103.1

459.4
351.7
106.7

473.2
350.5
107.6

482.9
350.2
109.4

486.5
350.7
111.3

Money market mutual funds
39 Retail
40 Institution-only

591.3r
398.9r

735.2r
543.7r

834.3
638.4

935.0
786.2

978.8
888.9

1,007.9
905.6

1,019.6
915.3

976.0
957.1

Repurchase agreements and eurodollars
41 Repurchase agreements' 2
42 Eurodollars12

249.5
152.3

293.4
154.5

337.4
176.0

357.1
199.5

350.5
196.7

341.7
199.0

355.9
188.4

365.1
190.9

3,805.8
ll,413.1 r

3,754.9
12,486.5r

3,663.2
13,647.3

3,403.5
14,811.2

3,368.7
14,974.6

3,392.5
15,046.8

3,341.0
15,123.4

Debt components
43 Federal debt
44 Nonfederal debt
Footnotes appear on following page.




n.a.
n.a.

A14

DomesticNonfinancialStatistics • August 2001

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 starting in 1959 are available from the Money and Reserves
Projections 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:
M l : (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 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; 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) savings deposits (including MMDAs), (2) small-denomination time
deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3)
balances in retail money market mutual funds. Excludes individual retirement accounts
(IRAs) and Keogh balances at depository institutions and money market funds. Seasonally
adjusted M2 is calculated by summing savings deposits, small-denomination time deposits,
and retail money fund balances, each seasonally adjusted separately, and adding this result to
seasonally adjusted Ml.
M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more)
issued by all depository institutions, (2) balances in institutional money funds, (3) RP
liabilities (overnight and term) issued by all depository institutions, and (4) eurodollars
(overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and
at all banking offices in the United Kingdom and Canada. Excludes amounts held by
depository institutions, the U.S. government, money market funds, and foreign banks and
official institutions. Seasonally adjusted M3 is calculated by summing large time deposits,
institutional money fund balances, RP liabilities, and eurodollars, each seasonally adjusted
separately, and adding this result to seasonally adjusted M2.
Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial
sectors—the federal sector (U.S. government, not including government-sponsored enter-




prises or federally related mortgage pools) and the nonfederal sectors (state and local
governments, households and nonprofit organizations, nonfinancial corporate and nonfarm
noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and
corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data,
which are derived from the Federal Reserve Board's flow of funds accounts, are breakadjusted (that is, discontinuities in the data have been smoothed into the series) and
month-averaged (that is, the data have been derived by averaging adjacent month-end levels).
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) savings deposits (including MMDAs), (2) small time deposits, and (3) retail
money fund balances.
8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities
(overnight and term) issued by depository institutions, and (4) eurodollars (overnight and
term) of U.S. addressees.
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, the U.S. government, and foreign banks and official institutions.
12. Includes both overnight and term.

Commercial Banking Institutions—Assets and Liabilities
1.26

C O M M E R C I A L B A N K S IN T H E U N I T E D STATES

A15

Assets and Liabilities1

A. All commercial banks
Billions of dollars
Wednesday figures

Monthly averages
2000r

2000

Account

May

Nov.

2001

2001
Dec.

Jan.r

Feb.r

Mar.r

Apr/

May

May 9

May 16

May 23

May 30

Seasonally adjusted
Assets
1 Bank credit
Securities in bank credit
?
U.S. government securities
4
Other securities
5
Loans and leases in bank credit2 . . .
6
Commercial and industrial
7
Real estate
Revolving home equity
8
9
Other
in
Consumer
Security3
11
Other loans and leases
i?
n Interbank loans
14 Cash assets4
15 Other assets5

5,005.8
l,311.1r
819.0
492.1r
3,694.7r
1,059.0
1,577.0
114.2
1,462.7
511.r
148.7
398.9
227.8
273.7
378.9

5,166.5
1,311.4
785.9
525.4
3,855.2
1,084.6
1,649.8
128.1
1,521.7
537.2
165.0
418.6
245.9
256.1
402.7

5,216.3
1,335.4
788.7
546.7
3,880.9
1,090.3
1,655.5
131.2
1,524.3
542.3
168.7
424.2
252.2
267.2
397.1

5,265.0
1,356.4
786.2
570.2
3,908.6
1,103.9
1,657.8
133.6
1,524.2
547.0
169.9
429.9
270.4
273.3
412.2

5,275.9
1,350.8
777.5
573.3
3,925.1
1,110.1
1,668.5
135.3
1,533.2
546.5
168.2
431.8
267.2
265.5
414.2

5,287.2
1,345.3
758.5
586.8
3,941.9
1,109.6
1,676-5
137.2
1,539.3
544.9
173.5
437.5
276.1
268.4
430.4

5309.1
1,360.8
766.6
594.2
3,948.3
1,106.2
1,683.0
138.0
1,545.1
549.3
174.1
435.7
293.2
270.6
429.8

5,318.0
1,369.2
769.3
599.9
3,948.8
1,103.2
1,693.5
139.3
1,554.3
553.0
163.0
436.1
287.1
263.7
423.8

5,320.4
1,367.0
764.6
602.4
3,953.4
1,106.6
1,697.6
139.1
1,558.5
549.0
165.6
434.6
290.8
260.2
430.5

5,314.5
1,369.2
766.8
602.4
3,945.3
1,101.8
1,692.6
139.3
1,553.3
553.5
160.0
437.4
293.7
262.6
413.4

5,308.9
1,367.8
769.0
598.8
3,941.1
1,103.9
1,688.1
139.7
1,548.4
556.1
157.0
436.0
283.5
256.0
424.5

5,329.7
1,372.8
775.9
596.9
3,956.9
1,101.0
1,696.5
139.1
1,557.4
554.3
168.8
436.2
282.2
275.2
425.4

16 Total assets6

5,826-3

6,008.5

6,068.9

6,156.2

6,157.7

6,1973

6,237.5

6,227.4

6,236.8

6,218.9

6,207.6

6,247.7

3,630.8r
629.8
3,001.(f
877.6
2,123.5r
1,204.6
382.0
822.6
254.8
313.5

3,781.1
601.2
3,179.8
917.4
2,262.5
1,202.9
368.7
834.2
244.3
347.2

3,847.6
601.9
3,245.7
934.7
2,311.0
1,242.4
396.7
845.7
225.8
345.4

3,892.0
608.2
3,283.8
941.7
2,342.1
1,264.2
397.3
867.0
221.2
364.8

3,890.6
607.7
3,282.9
936.9
2,346.0
1,259.3
396.2
863.1
219.4
343.2

3,925.0
606.9
3,318.2
934.9
2,383.2
1,243J
395.4
848.1
233.2
355.1

3.987.5
610.3
3,377.2
947.8
2,429.4
1,278.2
404.8
873.4
189.7
348.8

4,000.9
613.0
3,388.0
962.2
2,425.8
1,247.6
385.1
862.5
207.1
339.0

3,959.6
586.1
3,373.5
937.8
2,435.7
1,264.0
384.6
879.4
220.3
350.3

4.001.6
605.8
3,395.9
963.1
2,432.7
1,239.4
390.7
848.7
209.8
335.7

4,006.8
624.6
3,382.1
973.8
2,408.3
1,238.8
385.9
852.9
197.2
332.8

4,038.3
645.5
3,392.8
979.9
2,412.9
1,246.0
380.0
866.0
203.5
336.5

5,403.7r

5,575.4

5,661-3

5,7423

5,71X4

5,756.8

5,804.2

5,794.7

5,794.1

5,786.6

5,775.6

53243

422.5r

433.1

407.6

413.9

445.4

440.5

433.3

432.7

442.7

432.3

432.0

423.4

17
18
19
?n
71
??.
23
74
75
26

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities

27 Total liabilities
28 Residual (assets less liabilities)

7

Not seasonally adjusted
Assets
79 Bank credit
Securities in bank credit
31
U.S. government securities
37.
Other securities
33
Loans and leases in bank credit2 . . .
Commercial and industrial
34
35
Real estate
36
Revolving home equity
Other
37
38
Consumer
39
Credit cards and related plans. .
40
Other
41
Security3
Other loans and leases
4?
43 Interbank loans
44 Cash assets4
45 Other assets5

4,998.0
1,311.0r
820.3
490.6r
3,687.1r
1,061.5
1,577.2
114.2
1,463.0
5l0.ff
n.a.
n.a.
143.3
395.0
226.7
271.8
379.0

5,185.7
1,315.4
787.0
528.4
3,870.3
1,085.7
1,655.3
128.8
1,526.5
537.6
209.3
328.2
171.0
420.7
252.6
263.1
402.4

5,252.7
1,341.0
788.5
552.5
3,911.7
1,092.5
1,660.1
131.3
1,528.8
548.2
218.2
329.9
180.8
430.2
260.9
286.5
403.3

5,279.9
1,361.6
788.4
573.2
3,918.2
1,101.1
1,656.9
132.8
1,524.1
551.4
218.3
333.0
177.7
431.1
272.4
289.4
414.0

5,270.9
1,352.5
779.2
573.3
3,918.4
1,109.5
1,661.9
134.1
1,527.8
547.1
213.4
333.8
171.0
428.8
269.0
266.5
413.3

5,274.5
1,349.4
764.4
585.0
3,925.1
1,111.1
1,669.1
135.5
1,533.5
541.1
209.1
331.9
169.6
434.2
283.5
258.5
429.7

5,301.5
1,362.4
771.5
590.9
3,939.1
1,110.9
1,678.7
137.0
1,541.7
546.1
214.2
331.9
169.8
433.6
299.3
266.4
429.6

5,307.2
1,368.4
770.2
598.2
3,938.8
1,105.5
1,693.9
139.3
1,554.6
550.8
218.8
332.0
157.0
431.7
280.3
261.7
424.0

5,312.4
1,367.1
765.6
601.5
3,945.3
1,111.6
1,698.1
139.1
1,559.0
546.8
215.1
331.7
158.7
430.1
285.9
249.4
433.7

5,305.1
1,368.1
768.1
600.0
3,937.0
1,104.4
1,694.1
139.4
1,554.7
551.6
219.0
332.6
154.3
432.6
286.9
257.1
415.5

5,290.6
1,365.5
769.3
596.3
3,925.1
1,104.0
1,688.4
139.8
1,548.7
553.9
221.8
332.1
149.8
428.8
270.2
241.2
420.6

5,318.6
1,372.0
776.3
595.7
3,946.6
1,101.2
1,696.4
139.1
1,557.3
551.7
220.0
331.7
163.5
433.7
277.3
297.1
424.5

46 Total assets6

5,815.5

6,041.0

6,139.5

6,191.3

6,154.8

6,1813

6^31.9

6,208.1

6,216.1

6,1993

6,157.2

6,252.6

Liabilities
47
48
Transaction
49
Nontransaction
50
Large time
51
Other
5? Borrowings
53
From banks in the U.S
54
From others
55 Net due to related foreign offices . . . .
56 Other liabilities

3,619. l r
619.9
2,999.2r
876.5
2,122.7r
1,211.2
385.7
825.5
254.6
314.3

3,803.1
607.4
3,195.6
924.8
2,270.9
1,211.3
369.5
841.8
246.6
349.1

3,894.2
631.1
3,263.0
948.6
2,314.4
1,245.3
398.6
846.7
230.6
347.9

3,906.8
620.0
3,286.9
954.8
2,332.1
1,281.5
403.5
878.0
225.4
367.2

3,907.5
599.5
3,308.0
948.5
2,359.5
1,262.9
400.6
862.3
225.5
347.2

3,935.4
600.9
3,334.5
938.1
2,396.4
1,241.9
399.0
842.9
232.2
353.8

4,006.7
616.5
3,390.2
949.1
2,441.1
1,278.9
408.0
870.9
182.7
343.9

3,988.9
603.2
3,385.7
960.9
2,424.8
1,252.7
388.2
864.4
206.3
339.7

3,952.2
569.3
3,382.8
939.3
2,443.6
1,276.3
389.8
886.5
218.9
349.9

3,988.5
595.0
3,393.5
960.4
2,433.1
1,246.3
394.3
852.0
207.9
335.6

3,969.6
596.6
3,373.0
971.6
2,401.4
1,234.6
386.2
848.4
196.8
334.2

4,040.5
656.4
3,384.0
977.2
2,406.8
1,249.3
382.6
866.7
203.7
338.5

57 Total liabilities

5^992"

5,610.1

5,718.0

5,780.9

5,743.0

5,7633

5,812.2

5,787.7

5,797.2

5,7783

5,735.2

5,832.0

430.9

421.5

410.4

411.8

418.0

419.7

420.5

418.9

421.0

422.0

420.6

58 Residual (assets less liabilities)
Footnotes appear on p. A21.




7

r

416.3

A16
1.26

Domestic Financial Statistics • August 2001
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities 1 —Continued

B. Domestically chartered commercial banks
Billions of dollars

Monthly averages
Account

2000
May

2000
Nov.

Wednesday figures
2001

Dec.

Jan. r

Feb. r

Mar.r

2001
Apr.'

May

May 9

May 16

May 23

May 30

Seasonally adjusted
Assets
1 Bank credit
7
Securities in bank credit
3
U.S. government securities
4
Other securities
Loans and leases in bank credit2
6
Commercial and industrial
7
Real estate
8
Revolving home equity
9
Other
10
Consumer
11
Security3
Other loans and leases
1?
n Interbank loans
14 Cash assets4
15 Other assets5

4,421.0
l,098.7 r
738.6
360. r
3,322.3 r
853.7
1,559.2
114.2
1,445.0
511.r
67.2
331.1
197.3
230.5
338.4

4.578.4 r
1,115.8
717.9
398.0
3,462.6r
878.5 r
1,631.3r
128.T
1,503.l r
537.2 r
64.6r
350.9 r
219.0 r
217.5
362.7

4,616.9
1,130.3
719.5
410.8
3,486.6 r
881.3 r
l,637.0 r
131.2r
l,505.7 r
542.3 r
68.6 r
357.5 r
225. r
227.3
360.9

4,651.5
1,148.1
719.8
428.3
3,503.4
889.4
1,639.4
133.6
1,505.7
547.0
64.8
362.8
241.2
231.8
375.1

4,668.4
1,151.9
713.2
438.7
3,516.5
892.7
1,650.2
135.3
1,514.9
546.5
62.9
364.2
238.8
223.7
377.7

4,666.4
1,139.7
690.6
449.1
3,526.7
889.0
1,658.3
137.2
1,521.1
544.9
66.9
367.5
245.5
227.7
392.1

4,692.6
1,146.2
691.6
454.6
3,546.3
885.4
1,665.1
138.0
1,527.2
549.3
78.8
367.8
263.8
231.3
388.9

4,715.1
1,158.9
699.5
459.4
3,556.2
884.3
1,675.5
139.3
1,536.2
553.0
75.2
368.3
255.2
226.2
384.9

4,708.5
1,153.2
692.9
460.2
3,555.4
884.6
1,679.3
139.1
1,540.2
549.0
77.4
365.1
262.6
220.9
392.5

4,719.6
1,162.1
698.1
464.0
3,557.5
884.6
1,674.7
139.3
1,535.3
553.5
74.3
370.5
256.8
224.7
373.7

4,711.0
1,157.8
699.1
458.7
3,553.2
885.0
1,670.1
139.7
1,530.4
556.1
73.6
368.3
253.0
219.4
383.8

4,721.6
1,163.4
707.5
455.9
3,558.2
883.0
1,678.5
139.1
1,539.4
554.3
73.4
368.9
248.4
238.7
387.4

16 Total assets 6

5,127.7

5,315.4

5,366.8

5,435.3

5,444.0

5,467.1

5,511.7

5,516.7

5,519.8

5,509.9

5,502.3

5,531.7

3,247.5
618.7
2,628.8
507.3
2,121.5
1,001.6
364.0
637.6
234.2
229.3

3,401.5
590.4
2,811.1
547.2
2,263.9
979.9
350.1
629.8
237.1
271.8

3,467.6
591.3
2,876.3
563.9
2,312.5
1,002.8
374.5
628.3
227.6
272.8

3,505.4
598.0
2,907.4
567.5
2,339.9
1,020.7
372.1
648.6
217.7
285.2

3,510.0
597.4
2,912.7
568.8
2,343.9
1,020.8
373.7
647.1
214.6
266.1

3,546.4
597.4
2,948.9
567.9
2,381.0
1,010.2
371.2
639.0
211.5
272.5

3,594.9
599.8
2,995.1
568.0
2,427.1
1,042.1
381.2
660.9
185.5
260.9

3,594.2
602.5
2,991.7
568.2
2,423.5
1,031.3
365.6
665.6
211.9
252.8

3,576.8
575.3
3,001.5
568.1
2,433.4
1,043.5
363.9
679.6
202.7
263.9

3,592.3
594.5
2,997.8
567.3
2,430.5
1,023.7
368.5
655.2
216.6
249.2

3,589.1
614.6
2,974.5
568.4
2,406.1
1,029.0
367.5
661.4
211.9
246.8

3,615.0
635.4
2,979.6
568.9
2,410.7
1,025.9
362.8
663.1
220.3
250.1

4,712.5

4,890.2

4,970.8

5,029.1

5,011.5

5,040.6

5,083.5

5,090.1

5,086.9

5,081.9

5,076.7

5,111.4

415.2

425.2

396.0 r

406.2

432.4

426.5

428.3

426.6

432.9

428.1

425.6

420.3

17
18
19
70
71
77
74
25
26

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities

....

27 Total liabilities
28 Residual (assets less liabilities)

7

Not seasonally adjusted

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45

Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Credit cards and related plans. .
Other
Security 3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5

46 Total assets 6
47
48
49
50
51
52
53
54
55
56

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices . . . .
Other liabilities

57 Total liabilities
58 Residual (assets less liabilities)
Footnotes appear on p. A21.




7

4,417.4
l,098.6 r
739.9
358.6 r
3,318.8 r
859.0
l,559.4 r
114.2
1,445.3
510.0 r
n.a.
n.a.
62.6
327.8
196.2
229.6
339.1

4,594.9 r
1,119.8
718.9
400.9
3,475.0
879.0 r
l,636.8 r
128.8r
l,508.0 r
537.6 r
209.3 r
328.2 r
69. r
352.6 r
225.8
222.5
362.4

4,642.5
1,135.9
719.3
416.6
3,506.6
881.21"
l,641.6 r
131.3r
l,510.3 r
548.2 r
218.2 r
329.9 r
74.6 r
361.2 r
233.9
243.8
365.4

4,658.3
1,153.3
722.0
431.3
3,505.0
884.9
1,638.4
132.8
1,505.6
551.4
218.3
333.0
67.4
362.9
243.2
245.3
375.7

4,660.2
1,153.7
715.0
438.8
3,506.5
889.9
1,643.6
134.1
1,509.5
547.1
213.4
333.8
64.7
361.1
240.6
224.6
375.9

4,658.5
1,143.8
696.5
447.3
3,514.7
889.4
1,650.9
135.5
1,515.4
541.1
209.1
331.9
68.9
364.3
252.8
219.2
390.7

4,687.9
1,147.8
696.5
451.3
3,540.0
891.9
1,660.8
137.0
1,523.8
546.1
214.2
331.9
75.8
365.5
269.9
228.7
389.6

4,709.1
1,158.1
700.4
457.7
3,550.9
889.6
1,675.9
139.3
1,536.6
550.8
218.8
332.0
70.0
364.7
248.4
225.1
385.7

4,705.2
1,153.2
693.9
459.3
3,551.9
892.6
1,679.8
139.1
1,540.7
546.8
215.1
331.7
71.3
361.4
257.7
211.2
395.7

4,714.2
1,161.0
699.4
461.6
3,553.1
890.0
1,676.1
139.4
1,536.7
551.6
219.0
332.6
69.1
366.4
250.0
219.9
376.2

4,699.4
1,155.6
699.4
456.2
3,543.8
888.8
1,670.5
139.8
1,530.7
553.9
221.8
332.1
67.8
362.7
239.6
205.9
380.8

4,714.9
1,162.7
707.9
454.8
3,552.3
886.4
1,678.4
139.1
1,539.2
551.7
220.0
331.7
68.9
367.0
243.4
261.0
387.4

5,122.8

5 r J43.2 r

5,422.1

5,458.4

5,436.7

5,456.7

5,511.4

5,503.6

5,504.9

5,495.4

5,460.8

5,542.3

3,234.6
609.2
2,625.4
504.7
2,120.7
1,008.1
367.7
640.5
237.2
231.7

3,420.8
596.4
2,824.4
552.1
2,272.3
988.3
350.9
637.4
239.0
273.5

3,503.5
619.8
2,883.7
567.7
2,315.9
1,005.7
376.4
629.3
227.7
273.2

3,510.3
609.6
2,900.7
570.8
2,329.9
1,038.0
378.3
659.7
218.6
286.2

3,518.8
589.4
2,929.4
572.1
2,357.3
1,024.4
378.1
646.3
217.4
268.7

3,552.2
591.7
2,960.5
566.4
2,394.1
1,008.6
374.9
633.7
210.3
271.2

3,611.3
606.6
3,004.7
565.9
2,438.8
1,042.8
384.5
658.4
183.1
258.1

3,581.0
593.1
2,987.9
565.3
2,422.6
1,036.3
368.7
667.6
214.3
254.9

3,566.2
559.1
3,007.1
565.8
2,441.3
1,055.8
369.1
686.7
202.6
264.1

3,579.0
584.2
2,994.8
563.9
2,430.9
1,030.6
372.1
658.4
218.0
250.6

3,551.5
587.0
2,964.4
565.3
2,399.1
1,024.7
367.9
656.9
215.9
250.2

3,616.9
646.3
2,970.5
565.9
2,404.6
1,029.3
365.5
663.8
225.0
254.2

4,711.6

4,921.6

5,010.0

5,053.2

5,029.3

5,042.3

5,095.3

5,086.5

5,088.7

5,078.2

5,042.3

5,125.3

411.2

421.5

412.1

405.3

407.4

414.4

416.1

417.0

416.2

417.1

418.6

417.0

Commercial Banking Institutions—Assets and Liabilities
1.26

C O M M E R C I A L B A N K S IN THE U N I T E D STATES

A17

A s s e t s and Liabilities1—Continued

C. Large d o m e s t i c a l l y chartered c o m m e r c i a l banks
Billions of dollars
Wednesday figures

Monthly averages
Account

2000r

2000
May

Nov.

2001

2001
Dec.

Jan.r

Feb.

r

Mar.

r

Apr.

r

May

May 9

May 16

May 23

May 30

Seasonally adjusted
Assets
1 Bank credit
2
Securities in bank credit
3
U.S. government securities
4
Trading account
5
Investment account
6
Other securities
7
Trading account
8
Investment account
9
State and local government .
10
Other
11
Loans and leases in bank credit2 . . .
12
Commercial and industrial
13
Bankers acceptances
14
Other
15
Real estate
16
Revolving home equity
17
Other
18
Consumer
19
Security3
20
Federal funds sold to and
repurchase agreements
with broker-dealers
21
Other
22
State and local government
23
Agricultural
24
Federal funds sold to and
repurchase agreements
with others
25
All other loans
26
Lease-financing receivables
27 Interbank loans
28
Federal funds sold to and
repurchase agreements with
commercial banks
29
Other
30 Cash assets4
31 Other assets5
32 Total assets6
33
34
35
36
37
38
39
40
41
42

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities

43 Total liabilities
44 Residual (assets less liabilities)7
Footnotes appear on p. A21.




2,502.5r
582.4r
365.1r
22.1
343.0r
217.4
101.9
115.5
25.5
90.0
1,920.(7
584.2r
1.1
583. r
802.7r
74.3
728.4r
229.1
61.1

2,536.7
573.8
348.7
21.6
327.1
225.0
114.5
110.6
26.3
84.3
1,962.9
588.5
1.0
587.6
820.0
82.0
738.1
239.6
58.0

2,554.3
580.9
352.2
28.8
323.4
228.7
119.0
109.8
26.3
83.5
1,973.4
590.7
1.0
589.6
819.0
84.3
734.7
241.5
61.4

2,571.4
592.3
353.4
34.2
319.2
238.9
126.0
112.9
27.1
85.8
1,979.1
594.1
.8
593.2
819.5
86.1
733.4
243.0
57.7

2,581.6
595.4
349.5
37.5
312.0
245.9
129.3
116.6
27.6
89.0
1,986.2
595.4
.8
594.6
825.8
87.3
738.5
245.0
55.3

£588.7
591.2
338.9
35.4
303.4
252.3
132.5
119.9
28.1
91.8
1,997.5
591.0
.8
590.2
834.1
89.1
744.9
246.4
58.8

2,610.4
597.6
341.8
33.7
308.1
255.8
135.9
119.9
28.4
91.5
2,012.8
588.1
.8
587.3
840.7
89.7
751.0
248.0
70.2

2,622.8
607.6
349.8
35.3
314.5
257.8
137.0
120.8
28.1
92.7
2,015.2
587.0
.8
586.2
846.4
90.1
756.3
250.5
66.4

2,623.9
604.8
344.9
31.0
313.9
259.9
139.4
120.5
28.0
92.5
2,019.1
587.9
.8
587.1
851.8
90.1
761.7
248.6
68.8

2,627.6
610.9
349.4
35.5
313.9
261.5
140.1
121.4
28.3
93.1
2,016.7
587.4
.8
586.6
846.0
90.1
755.9
250.8
65.5

2,615.4
605.7
348.6
36.1
312.5
257.1
135.8
121.2
28.3
93.0
2,009.7
587.7
.8
586.8
840.5
90.4
750.1
251.8
64.9

2,623.9
609.7
355.8
39.6
316.2
253.9
133.7
120.2
28.1
92.1
2,014.2
585.4
.8
584.6
847.5
89.6
757.9
251.4
64.7

39.7
21.3
12.5
9.6r

41.7
16.3
12.8
9.8

46.3
15.2
12.6
10.0

41.7
16.0
12.8
10.1

39.4
15.9
13.0
10.3

43.6
15.2
13.2
10.4

53.8
16.4
13.1
10.4

49.3
17.1
13.1
10.7

51.7
17.1
13.2
10.8

49.0
16.4
13.1
10.8

47.6
17.3
13.1
10.7

47.1
17.6
13.0
10.7

13.3
86.6r
121.1
133.1

19.0
86.5
128.7
138.7

21.0
87.8
129.4
137.7

25.8
86.7
129.5
153.9

26.1
85.5
129.8
141.1

26.0
86.4
131.2
137.4

22.9
87.4
132.0
145.3

23.5
85.1
132.5
131.5

22.7
82.9
132.5
142.1

23.5
87.2
132.6
132.4

23.2
85.3
132.5
127.4

24.1
85.0
132.6
122.7

67.5r
65.7
150.1
221.1'

62.1
76.5
139.0
254.1

63.8
73.9
144.1
248.6

79.0
74.9
146.3
260.2

70.4
70.7
137.6
262.6

70.4
67.0
142.0
271.5

81.8
63.5
144.7
264.9

71.0
60.4
139.1
262.2

80.1
62.0
136.1
267.9

72.1
60.3
136.4
252.8

65.9
61.5
133.5
263.7

65.2
57.5
149.3
263.5

2,978.4r

3,032.7

3,048.1

3,094.4

3,085.2

3,102.0

3,127.7

3,118.0

3,1325

3,111.6

3,1023

3,122.1

l,654.8r
317.8r
1,337. l r
251.3r
l,085.8r
655.6r
201.4
454.2
228.2
170.^

1,643.0
296.4
1,346.5
254.5
1,092.0
652.7
196.0
456.7
213.4
217.9

1,672.9
297.2
1,375.7
265.3
1,110.4
666.3
214.0
452.3
206.7
218.7

1,680.7
300.4
1,380.3
267.2
1,113.1
676.8
213.9
462.9
200.9
231.8

1,674.1
298.3
1,375.8
262.7
1,113.2
679.5
215.6
463.9
197.9
212.2

1,700.6
301.5
1,399.1
265.0
1,134.0
676.9
219.6
457.3
196.1
216.4

1,725.0
301.2
1,423.8
264.9
1,158.8
705.5
229.8
475.6
172.7
204.4

1,716.1
301.2
1,414.9
267.2
1,147.7
691.1
212.4
478.7
195.2
195.8

1,708.0
286.3
1,421.6
264.9
1,156.8
704.3
212.5
491.9
185.7
207.6

1,715.5
296.1
1,419.4
266.0
1,153.4
686.7
216.1
470.7
197.7
192.2

1,711.2
305.4
1,405.8
268.7
1,137.1
687.3
212.0
475.3
196.7
189.3

1,727.2
321.4
1,405.8
269.4
1,136.4
683.3
209.0
474.4
203.8
192.7

2,709.4r

2,726.9

2,764.6

2,7903

2,763.8

2,789.9

2,807.6

2,798.2

2,805.6

2,792.2

2,7845

2^07.1

269.(7

305.8

283.5

304.2

321.4

312.1

320.0

319.8

326.9

319.4

317.8

315.0

A18
1.26

DomesticNonfinancialStatistics • August 2001
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities 1 —Continued

C. Large domestically chartered commercial banks—Continued
Billions of dollars

Monthly averages
Account

2000

2000
May

Nov.

r

Wednesday figures
2001

Dec.

Jan. r

Feb. r

Mar.r

2001
Apr/

May

May 9

May 16

May 23

May 30

Not seasonally adjusted
Assets
45 Bank credit
46
Securities in bank credit
47
U.S. government securities
48
Trading account
49
Investment account
50
Mortgage-backed securities . .
51
Other
52
One year or less
One to five years
54
More than five years . . .
55
Other securities
56
Trading account
57
Investment account
58
State and local government . .
59
Other
60
Loans and leases in bank credit2 . .
61
Commercial and industrial
62
Bankers acceptances
63
Other
64
Real estate
65
Revolving home equity
66
Other
67
Commercial
68
Consumer
69
Credit cards and related plans..
70
Other
71
Security 3
72
Federal funds sold to and
repurchase agreements
with broker-dealers . . . .
Other
73
74
State and local government . . . .
75
Agricultural
76
Federal funds sold to and
repurchase agreements
with others
77
All other loans
78
Lease-financing receivables . . . .
79 Interbank loans
80
Federal funds sold to and
repurchase agreements
with commercial banks
81
Other
82 Cash assets 4
83 Other assets5
84 Total assets 6
85
86
87
88
89
90
91
92
93
94

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From nonbanks in the U.S
Net due to related foreign offices . . .
Other liabilities

95 Total liabilities
96 Residual (assets less liabilities)7
Footnotes appear on p. A21.




2,496.7r
580.5r
364.6r
22.1
342.5r
220.0
122.5r
31.7
53.6
37.2
215.9
101.2
114.7
25.3
89.3
l,916.2r
587.4r
1.1
586.3r
802. l r
74.2
443.4r
284.5r
229.5
n.a.
n.a.
56.7

2,552.4
579.5
351.6
21.8
329.8
211.4
118.3
32.7
50.0
35.7
228.0
116.0
112.0
26.6
85.4
1,972.8
589.7
1.0
588.7
825.2
82.4
453.3
289.5
238.1
78.1
160.0
62.1

2,575.5
587.3
352.8
28.9
323.9
213.4
110.6
31.4
45.0
34.1
234.5
122.0
112.5
26.9
85.6
1,988.2
589.7
1.0
588.7
823.5
84.2
448.7
290.7
243.7
82.4
161.3
67.2

2,582.5
598.1
356.2
34.5
321.7
219.7
102.0
31.5
38.5
32.1
241.9
127.6
114.3
27.5
86.8
1,984.4
590.6
.8
589.7
820.1
85.2
445.7
289.1
246.6
83.4
163.2
60.3

2,584.4
599.2
353.2
37.9
315.3
215.6
99.7
33.6
37.1
29.0
246.0
129.3
116.6
27.6
89.0
1,985.3
594.3
.8
593.5
822.5
86.3
445.5
290.8
247.2
83.1
164.1
57.1

2,585.2
593.1
342.5
35.8
306.7
214.0
92.6
33.3
34.1
25.2
250.5
131.5
119.0
27.9
91.1
1,992.2
591.7
.8
590.9
828.3
87.7
449.6
291.0
246.1
82.6
163.5
60.5

2,606.0
596.5
344.0
34.0
310.0
221.4
88.7
31.7
31.2
25.8
252.5
134.2
118.4
28.0
90.3
2,009.5
592.4
.8
591.6
836.7
88.7
456.4
291.6
248.7
84.6
164.0
67.1

2,616.3
605.3
349.1
35.2
313.9
227.9
86.0
28.6
30.9
26.4
256.2
136.1
120.0
28.0
92.1
2,011.0
589.8
.8
589.0
846.0
90.0
462.6
293.4
250.9
86.9
164.0
61.6

2,619.2
602.8
343.8
30.9
312.8
231.1
81.7
27.9
27.5
26.3
259.0
138.9
120.1
27.9
92.2
2,016.4
592.8
.8
592.0
851.9
90.0
468.9
293.0
249.3
85.4
163.9
62.9

2,620.9
608.1
349.1
35.4
313.7
226.4
87.2
28.3
32.7
26.3
259.0
138.8
120.2
28.0
92.3
2,012.8
590.0
.8
589.3
846.6
90.0
463.3
293.2
251.3
86.8
164.5
60.6

2,603.2
602.0
347.4
36.0
311.5
223.0
88.4
29.8
32.2
26.4
254.6
134.5
120.1
28.0
92.1
2,001.2
589.0
.8
588.2
839.4
90.3
456.0
293.1
252.1
88.0
164.0
59.6

2,618.2
607.9
355.2
39.5
315.7
229.3
86.3
27.8
32.1
26.5
252.7
133.1
119.6
28.0
91.6
2,010.3
586.6
.8
585.8
846.8
89.7
462.6
294.5
251.7
87.7
163.9
60.5

36.9
19.8
12.5
9.5

44.6
17.5
12.8
9.8

50.6
16.6
12.6
10.0

43.6
16.7
12.8
10.2

40.7
16.4
13.0
10.1

44.9
15.6
13.2
10.2

51.4
15.7
13.1
10.3

45.7
15.9
13.1
10.7

47.3
15.6
13.2
10.7

45.4
15.2
13.1
10.7

43.8
15.9
13.1
10.7

44.0
16.5
13.0
10.6

13.3
84.8
120.5
135.8r

19.0
87.8
128.4
139.5

21.0
90.7
129.7
141.6

25.8
86.6
131.6
155.3

26.1
83.8
131.2
140.0

26.0
84.4
131.7
138.5

22.9
86.3
132.0
147.4

23.5
83.6
131.9
133.8

22.7
81.0
132.0
141.1

23.5
85.2
131.9
135.1

23.2
82.4
131.8
127.4

24.1
85.2
131.8
129.2

68.9
66.9
150.1r
228.4

62.6
77.0
140.2
253.7

65.6
75.9
155.5
253.0

79.7
75.7
157.2
260.8

69.9
70.2
139.5
260.8

71.0
67.5
137.1
270.2

83.0
64.4
145.0
265.6

72.3
61.5
139.3
263.0

79.6
61.5
130.2
271.1

73.6
61.6
134.7
255.3

65.9
61.5
124.7
260.7

68.6
60.5
165.3
263.5

2,975.8r

3,049.9

3,088.9

3,118^

3,087.0

3,0933

3,126.6

3,114.7

3,123.9

3,108.4

3,078.4

3,138.8

l,646.8r
312.7r
1,334. l r
248.7r
l,085.3r
662.1
205.l r
457. l r
231.2
173.2

1,650.1
298.8
1,351.4
259.4
1,092.0
661.1
196.8
464.3
215.4
219.7

1,690.7
315.0
1,375.6
269.1
1,106.5
669.2
215.9
453.3
206.8
219.0

1,686.9
309.3
1,377.6
270.5
1,107.1
694.1
220.2
473.9
201.8
232.8

1,681.9
295.2
1,386.7
266.0
1,120.8
683.1
220.0
463.1
200.8
214.8

1,699.0
297.8
1,401.2
263.5
1,137.7
675.3
223.2
452.0
194.9
215.1

1,734.1
308.5
1,425.6
262.8
1,162.8
706.2
233.1
473.1
170.3
201.6

1,709.3
297.0
1,412.4
264.4
1,148.0
696.1
215.5
480.7
197.6
198.0

1,698.8
276.2
1,422.6
262.6
1,160.0
716.6
217.6
499.0
185.6
207.8

1,709.0
292.6
1,416.5
262.6
1,153.8
693.6
219.6
473.9
199.1
193.6

1,688.6
289.3
1,399.3
265.6
1,133.7
683.1
212.3
470.7
200.7
192.8

1,733.5
330.6
1,402.9
266.4
1,136.5
686.7
211.6
475.1
208.5
196.8

2,713.4r

2,7463

2,785.7

2,815.7

2,780.6

2,7843

2,812.2

2301.1

2,808.8

2,7953

2,765.2

2,825.4

303.6

303.2

303.1

306.4

309.1

314.4

313.6

315.1

313.1

313.2

313.4

262.5

Commercial Banking Institutions—Assets and Liabilities
1.26

C O M M E R C I A L B A N K S IN T H E U N I T E D STATES

A19

Assets and Liabilities1—Continued

D . Small d o m e s t i c a l l y chartered c o m m e r c i a l banks
Billions of dollars
Wednesday figures

Monthly averages
Account

2000r

2000
Mayr

Nov.

2001

2001
Dec.

Jan.r

Feb.1"

Mar.

r

Apr.

r

May

May 9

May 16

May 23

May 30

Seasonally adjusted

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Security-1
Other loans and leases
Interbank loans
Cash assets4
Other assets5

16 Total assets6
17
18
19
20
21
22
23
24
25
26

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices . . . .
Other liabilities

27 Total liabilities
28 Residual (assets less liabilities)7

1,918.5
516.3
373.5
142.7
1,402.2
269.5
756.5
39.9
716.6
282.0
6.1
88.1
64.2
80.4
110.7

2,041.7
542.1
369.1
172.9
1,499.6
290.0
811.2
46.1
765.1
297.6
6.6
94.2
80.4
78.5
108.6

2,062.6
549.4
367.4
182.1
1,513.2
290.7
818.0
47.0
771.0
300.7
7.1
96.7
87.4
83.1
112.4

2,080.1
555.8
366.4
189.4
1,524.3
295.3
819.9
47.6
772.3
304.0
7.2
97.9
87.3
85.5
114.9

2,086.8
556.5
363.7
192.8
1,530.3
297.3
824.4
48.0
776.4
301.5
7.6
99.5
97.6
86.1
115.1

2,077.6
548.5
351.7
196.8
1,529.1
298.0
824.2
48.0
776.2
298.5
8.1
100.3
108.0
85.6
120.6

2,082.1
548.6
349.8
198.8
1,533.5
297.3
824.4
48.3
776.1
301.2
8.6
102.0
118.5
86.6
123.9

2,092.3
551.3
349.7
201.6
1,541.0
297.3
829.1
49.2
779.9
302.5
8.7
103.4
123.7
87.1
122.7

2,084.6
548.3
348.0
200.3
1,536.3
296.8
827.5
48.9
778.5
300.4
8.6
103.1
120.5
84.7
124.6

2,092.0
551.2
348.7
202.6
1,540.8
297.2
828.6
49.2
779.4
302.7
8.8
103.5
124.4
88.2
120.9

2,095.6
552.1
350.5
201.6
1,543.5
297.3
829.6
49.3
780.3
304.3
8.7
103.5
125.6
85.9
120.1

2,097.7
553.7
351.7
202.0
1,544.0
297.6
831.0
49.5
781.5
303.0
8.8
103.6
125.6
89.4
124.0

2,149J

2,282.7

2318.7

2,340.8

2,358.8

2365.1

2,384.1

2398.6

23873

2,398.4

2,400.0

2,409.6

1,592.7
301.0
1,291.7
256.0
1,035.8
346.0
162.6
183.4
6.0
58.4

1,758.5
294.0
1,464.6
292.7
1,171.9
327.2
154.1
173.1
23.7
53.9

1,794.8
294.1
1,500.7
298.6
1,202.1
336.5
160.5
176.0
20.9
54.1

1,824.7
297.6
1,527.1
300.3
1,226.8
343.9
158.1
185.7
16.8
53.4

1,835.9
299.1
1,536.8
306.1
1,230.7
341.2
158.1
183.2
16.7
53.9

1,845.8
295.9
1,549.9
302.9
1,247.0
333.3
151.6
181.7
15.4
56.1

1,869.9
298.6
1,571.4
303.0
1,268.3
336.7
151.4
185.3
12.8
56.4

1,878.1
301.3
1,576.8
300.9
1,275.8
340.2
153.3
186.9
16.6
57.0

1,868.8
289.0
1,579.9
303.2
1,276.7
339.2
151.4
187.7
17.0
56.3

1,876.8
298.4
1,578.4
301.2
1,277.1
337.0
152.5
184.5
18.9
57.0

1,877.9
309.3
1,568.7
299.7
1,269.0
341.7
155.5
186.2
15.2
57.4

1,887.8
314.0
1,573.8
299.5
1,274.3
342.6
153.9
188.7
16.5
57.4

2,003.1

2,1633

2,2063

2,238.8

2,247.7

2,250.6

2,275.8

2,291.9

2,2813

2,289.7

2,292.2

23043

146.2

119.4

112.5

102.0

111.1

114.5

108.2

106.8

106.1

108.7

107.8

105.3

Not seasonally adjusted

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45

Assets
Bank credit
Securities in bank credit
U.S. government securities
Other securities
Loans and leases in bank credit2
Commercial and industrial
Real estate
Revolving home equity
Other
Consumer
Credit cards and related plans. .
Other
Security3
Other loans and leases
Interbank loans
Cash assets4
Other assets5

46 Total assets6
47
48
49
50
51
52
53
54
55
56

Liabilities
Deposits
Transaction
Nontransaction
Large time
Other
Borrowings
From banks in the U.S
From others
Net due to related foreign offices . . . .
Other liabilities

57 Total liabilities
58 Residual (assets less liabilities)7
Footnotes appear on p. A21.




1,920.7
518.1
375.4
142.7
1,402.6
271.6
757.3
40.0
717.3
280.6
n.a.
n.a.
5.9
87.2
60.4
79.6
110.7

2,042.5
540.3
367.4
172.9
1,502.2
289.3
811.6
46.4
765.2
299.5
131.3
168.2
7.0
94.8
86.2
82.4
108.6

2,067.1
548.6
366.5
182.1
1,518.5
291.4
818.0
47.1
770.9
304.5
135.8
168.7
7.3
97.2
92.3
88.3
112.4

2,075.8
555.2
365.8
189.4
1,520.6
294.4
818.3
47.6
770.7
304.8
134.9
169.9
7.1
96.0
87.8
88.1
114.9

2,075.8
554.6
361.8
192.8
1,521.2
295.6
821.1
47.8
773.3
300.0
130.3
169.7
7.6
96.9
100.6
85.1
115.1

2,073.3
550.7
354.0
196.8
1,522.5
297.7
822.6
47.8
774.7
295.0
126.5
168.5
8.4
98.9
114.3
82.0
120.6

2,081.8
551.3
352.5
198.8
1,530.5
299.4
824.1
48.3
775.8
297.5
129.6
167.9
8.7
100.9
122.5
83.7
123.9

2,092.8
552.9
351.3
201.6
1,539.9
299.9
829.9
49.3
780.5
299.8
131.9
167.9
8.4
102.0
114.7
85.9
122.7

2,086.0
550.5
350.2
200.3
1,535.5
299.8
827.9
49.1
778.8
297.5
129.8
167.8
8.4
101.8
116.5
81.0
124.6

2,093.2
552.9
350.3
202.6
1,540.3
300.0
829.6
49.4
780.2
300.3
132.2
168.0
8.5
102.0
114.8
85.3
120.9

2,096.2
553.6
352.0
201.6
1,542.6
299.8
831.1
49.4
781.7
301.9
133.8
168.1
8.2
101.6
112.2
81.2
120.1

2,096.7
554.7
352.7
202.0
1,542.0
299.7
831.6
49.5
782.1
300.0
132.2
167.8
8.4
102.2
114.2
95.8
124.0

2,146.9

2,293.2

2333.2

2339.7

2349.7

2363.4

2,384.8

2388.8

2381.0

2,387.0

2,3823

2,4033

1,587.8
296.5
1,291.4
256.0
1,035.4
346.0
162.6
183.4
6.0
58.4

1,770.6
297.6
1,473.0
292.7
1,180.3
327.2
154.1
173.1
23.7
53.9

1,812.8
304.8
1,508.0
298.6
1,209.4
336.5
160.5
176.0
20.9
54.1

1,823.4
300.3
1,523.2
300.3
1,222.9
343.9
158.1
185.7
16.8
53.4

1,836.9
294.2
1,542.6
306.1
1,236.5
341.2
158.1
183.2
16.7
53.9

1,853.2
293.9
1,559.3
302.9
1,256.4
333.3
151.6
181.7
15.4
56.1

1,877.2
298.0
1,579.1
303.0
1,276.1
336.7
151.4
185.3
12.8
56.4

1,871.6
296.2
1,575.5
300.9
1,274.5
340.2
153.3
186.9
16.6
57.0

1,867.4
282.9
1,584.5
303.2
1,281.3
339.2
151.4
187.7
17.0
56.3

1,870.0
291.7
1,578.3
301.2
1,277.1
337.0
152.5
184.5
18.9
57.0

1,862.9
297.7
1,565.1
299.7
1,265.4
341.7
155.5
186.2
15.2
57.4

1,883.4
315.7
1,567.6
299.5
1,268.1
342.6
153.9
188.7
16.5
57.4

1,998.2

2,1753

2,2243

2,237.5

2,248.6

2,258.1

2,283.1

2,285.4

2,279.8

2,282.9

2,277.1

2,299.9

148.7

117.9

108.9

102.2

101.0

105.3

101.8

103.4

101.1

104.1

105.4

103.6

A20
1.26

DomesticNonfinancialStatistics • August 2001
COMMERCIAL BANKS IN THE UNITED STATES

Assets and Liabilities 1 —Continued

E. Foreign-related institutions
Billions of dollars

Monthly averages
Account

2000
May

2000
Nov.

Wednesday figures
2001

Dec/

Jan.

r

Feb.

r

Mar.

r

2001
Apr.

May

May 9

May 16

May 23

May 30

Seasonally adjusted
Assets
1 Bank credit
Securities in bank credit
2
U.S. government securities
4
Other securities
Loans and leases in bank credit 2 . . .
5
6
Commercial and industrial
7
Real estate
8
Security 3
Other loans and leases
9
10 Interbank loans
11 Cash assets 4
12 Other assets5

584.8
212.4
80.4
132.0
372.4
205.3
17.7
81.5
67.9
30.4
43.1
40.5

588.1
195.5
68.1
127.5
392.6
206.1
18.5
100.3
67.7
26.8
38.5
40.0

599.4
205.0
69.2
135.9
394.4
209.0
18.5
100.1
66.7
27.0
39.9
36.1

613.5
208.3
66.4
141.9
405.2
214.5
18.5
105.1
67.2
29.2
41.5
37.1

13 Total assets 6

6985

693.1

702.1

720.9

383.3r
11.1
372.2r
203.1
18.1
185.0
20.6
84.2

379.6r
10.8
368.8r
223.0
18.6
204.4
7.3
75.4

380.0
10.6
369.4
239.6
22.2
217.4
-1.8
72.6

386.6
10.2
376.4
243.5
25.2
218.3
3.5
79.6

691.2r

685.2r

690.5

7 m

r

Iff

11.6

14
15
16
17
18
19
20
21

Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities

22 Total liabilities
23 Residual (assets less liabilities)

7

7.4

7.7

620.8
205.6
67.9
137.7
415.2
220.6
18.2
106.6
69.9
30.7
40.7
38.3

616.5r
214.6r
75.0
139.6r
40lff
220.8r
\lff
95.3r
67.9
29.5r
39.3
40.9

602.9
210.3
69.8
140.5
392.6
218.9
18.0
87.8
67.8
31.9
37.5
38.9

611.9
213.8
71.7
142.2
398.1
222.0
18.3
88.3
69.5
28.2
39.3
38.0

594.9
207.1
68.7
138.4
387.8
217.3
18.0
85.7
66.8
36.9
37.9
39.6

597.9
209.9
69.9
140.0
387.9
218.9
18.0
83.4
67.6
30.6
36.5
40.7

608.1
209.4
68.4
140.9
398.7
218.0
18.0
95.3
67.3
33.9
36.5
37.9

730.2

725.8r

710.7

717.0

709.0

7053

716.0

380.5
10.3
370.2
238.5
22.5
216.0
4.8
77.1

378.6
9.4
369.2
233.3
24.2
209.1
21.8
82.5

392.6r
10.5
382. r
236.0
23.5
212.5
4.2
&7ff

406.8
10.5
396.3
216.4
19.5
196.8
-4.7
86.3

382.8
10.8
371.9
220.5
20.7
199.8
17.6
86.4

409.4
11.3
398.1
215.7
22.2
193.5
-6.8
86.5

417.6
10.0
407.7
209.9
18.4
191.5
-14.7
86.1

423.3
10.1
413.2
220.1
17.2
202.9
-16.9
86.4

700.9

716.2

720.7r

704.7

7073

704.7

698.9

712.9

12.9

13.9

5.1

6.1

9.7

4.3

6.4

3.1

607.4
198.8
64.3
134.6
408.6
217.4
18.3
105.3
67.6
28.4
41.8
36.5

Not seasonally adjusted

24
25
26
21
28
29
30
31
32
33
34
35
36
37
38
39

Assets
Bank credit
Securities in bank credit
U.S. government securities
Trading account
Investment account
Other securities
Trading account
Investment account
Loans and leases in bank credit2 . . .
Commercial and industrial
Real estate
Security3
Other loans and leases
Interbank loans
Cash assets 4
Other assets5

40 Total assets 6
41
42
43
44
45
46
47
48

Liabilities
Deposits
Transaction
Nontransaction
Borrowings
From banks in the U.S
From others
Net due to related foreign offices
Other liabilities

49 Total liabilities
50 Residual (assets less liabilities)




7

....

580.6
212.4
80.4
12.4
68.0
132.0
87.7
44.2
368.2
202.6
17.7
80.7
67.2
30.4
42.1
39.9

590.8
195.5
68.1
10.9
57.2
127.5
88.0
39.4
395.3
206.7
18.5
101.8
68.2
26.8
40.6
40.0

610.1
205.0
69.2
11.8
57.3
135.9
90.7
45.1
405.1
211.4
18.5
106.2
69.0
27.0
42.7
37.9

621.6
208.3
66.4
11.4
55.1
141.9
96.3
45.6
413.3
216.2
18.5
110.4
68.3
29.2
44.1
38.3

610.7
198.8
64.3
10.4
53.8
134.6
90.8
43.8
411.9
219.6
18.3
106.3
67.7
28.4
41.9
37.4

616.0
205.6
67.9
9.5
58.4
137.7
94.5
43.2
410.4
221.7
18.2
100.6
69.9
30.7
39.3
39.0

613.7r
214.6r
75.0
14.2
60.8
139.6r
96.5r
43.1
399. l r
219.0
17^
94.0
68.2
29.5r
37.7
40.0

598.2
210.3
69.8
13.4
56.4
140.5
98.2
42.3
387.9
215.8
18.0
87.0
67.0
31.9
36.6
38.3

607.2
213.8
71.7
13.9
57.8
142.2
98.8
43.3
393.4
218.9
18.3
87.4
68.7
28.2
38.2
38.0

591.0
207.1
68.7
13.3
55.4
138.4
95.7
42.7
383.9
214.4
18.0
85.2
66.2
36.9
37.1
39.3

591.2
209.9
69.9
13.5
56.4
140.0
98.3
41.7
381.3
215.2
18.0
82.0
66.1
30.6
35.2
39.8

603.7
209.4
68.4
13.2
55.2
140.9
99.5
41.4
394.3
214.9
18.0
94.6
66.8
33.9
36.1
37.1

692.7

697.9

717.4

732.8

718.1

724.6

720.5r

704.6

711.2

703.9

696.4

7103

384.5r
10.7
373.8r
203.1
18.1
185.0
17.4
82.7

382.3r
11.0
371.3r
223.0
18.6
204.4
7.6
75.6

390.7
11.3
379.4
239.6
22.2
217.4
2.9
74.7

396.5
10.4
386.1
243.5
25.2
218.3
6.8
81.0

388.7
10.1
378.7
238.5
22.5
216.0
8.0
78.5

383.1
9.2
374.0
233.3
24.2
209.1
21.9
82.6

395.4
10.0
385.5r
236.0
23.5
212.5
-.4
85.8r

407.9
10.1
397.8
216.4
19.5
196.8
-7.9
84.8

385.9
10.2
375.7
220.5
20.7
199.8
16.3
85.8

409.5
10.7
398.8
215.7
22.2
193.5
-10.1
84.9

418.1
9.5
408.6
209.9
18.4
191.5
-19.1
84.0

423.6
10.1
413.5
220.1
17.2
202.9
-21.3
84.3

687.6r

688.4r

708.0

727.8

713.7

720.9

716.9"

701.1

708.5

700.0

692.9

706.7

5.r

9.4r

9.4

5.1

4.4

3.6

3.4

2.7

3.9

3.5

3.5

3.6

Commercial Banking Institutions—Assets and Liabilities
1.26

COMMERCIAL BANKS IN THE UNITED STATES

A21

1

Assets and Liabilities —Continued

F. Memo items
Billions of dollars

Wednesday figures

Monthly averages
Account

2000

2000

May

Nov.

2001

2001
Dec. r

Jan. r

Feb. r

Mar. r

Apr.

May

May 9

May 16

May 23

May 30

Not seasonally adjusted

MEMO

1
2
3
4
5
6
7
8
9
10
11

12
13
14
15
16
17
18

Large domestically chartered banks,
adjusted for mergers
Revaluation gains on off-balance-sheet
items 8
Revaluation losses on off-balancesheet items 8
Mortgage-backed securities 9
Pass-through
CMO, REMIC, and other
Net unrealized gains (losses) on
available-for-sale securities 10 . . . .
Off-shore credit to U.S. r e s i d e n t s " . . . .
Securitized consumer loans 12
Credit cards and related plans
Other
Securitized business loans 1 2
Small domestically
chartered
commercial banks, adjusted for
mergers
Mortgage-backed securities 9
Securitized consumer loans 1 2
Credit cards and related plans
Other
Foreign-related
institutions
Revaluation gains on off-balancesheet items 8
Revaluation losses on off-balancesheet items 8
Securitized business loans 12

72.4

68.0

77.8

79.5

77.6

80.6

79.6

81.7

84.1

85.0

80.5

78.1

72.9
253.7
178.6
75.1

72.6
240.6
174.3
66.4

83.1
242.6
177.5
65.0

82.5
248.0
182.6
65.3

81.0
244.5
178.9
65.6

79.8
244.8
180.9
63.9

74.9
252.2
189.8r
62.4r

74.7
258.9
195.2
63.7

74.9
262.3
196.6
65.7

74.6
257.4
194.0
63.4

74.8
253.9
191.8
62.1

74.9
260.0
196.9
63.1

-10.3
23.5
n.a.
n.a.
n.a.
n.a.

-1.2
23.1
80.5
67.3
13.2
17.8

1.4
23.4
82.2
68.6
13.6
18.6

-2.5
23.0
82.4
68.5
13.9
18.4

-.6
22.7
80.8
67.3
13.4
18.6

-.3
22.6
80.2
67.3
12.9
18.7

-.3
21.7
78.8r
66.4r
12.4
18.8

-1.7
21.0
77.0
65.0
12.0
19.8

-1.0
21.1
78.0
65.9
12.1
19.8

-1.7
20.9
77.0
65.0
12.0
19.8

-1.9
21.2
75.8
64.0
11.8
19.8

-2.4
20.6
76.8
65.0
11.8
19.9

205.7
n.a.
n.a.
n.a.

213.0
225.6
216.1
9.5

214.5
231.1
221.9
9.2

218.2
231.5
222.4
9.1

222.7
235.6
226.8
8.9

229.1
238.6
229.9
8.7

237.7r
241.2r
232.6
8.6r

242.3
242.2
233.8
8.4

240.9
242.6
234.1
8.5

241.2
240.5
232.1
8.5

243.5
241.7
233.2
8.4

243.7
243.7
235.3
8.4

50.4

44.6

45.7

51.8

49.4

52.5

54.1

56.2

56.0

54.3

57.7

56.9

47.0
n.a.

40.8
22.8

41.7
23.1

48.9
23.2

47.1
22.4

49.5
21.5

50.6r
19.8

51.6
18.0

51.1
18.4

50.4
18.1

52.8
17.7

51.9
17.5

NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8
statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table
1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28,
"Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer
being published in the Bulletin. Instead, abbreviated balance sheets for both large and small
domestically chartered banks have been included in table 1.26, parts C and D. Data are both
merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S.
branches and agencies of foreign banks have been replaced by balance sheet estimates of all
foreign-related institutions and are included in table 1.26, part E. These data are breakadjusted.
The not-seasonally-adjusted data for all tables now contain additional balance sheet items,
which were available as of October 2, 1996.
1. Covers the following types of institutions in the fifty states and the District of
Columbia: domestically chartered commercial banks that submit a weekly report of condition
(large domestic); other domestically chartered commercial banks (small domestic); branches
and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related
institutions). Excludes International Banking Facilities. Data are Wednesday values or pro
rata averages of Wednesday values. Large domestic banks constitute a universe; data for
small domestic banks and foreign-related institutions are estimates based on weekly samples
and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications
of assets and liabilities.
The data for large and small domestic banks presented on pp. A 1 7 - 1 9 are adjusted to
remove the estimated effects of mergers between these two groups. The adjustment for
mergers changes past levels to make them comparable with current levels. Estimated
quantities of balance sheet items acquired in mergers are removed from past data for the bank
group that contained the acquired bank and put into past data for the group containing the




acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a
ratio procedure is used to adjust past levels.
2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks
in the United States, all of which are included in "Interbank loans."
3. Consists of reverse RPs with brokers and dealers and loans made to purchase and carry
securities.
4. Includes vault cash, cash items in process of collection, balances due from depository
institutions, and balances due from Federal Reserve Banks.
5. Excludes the due-from position with related foreign offices, which is included in "Net
due to related foreign offices."
6. Excludes unearned income, reserves for losses on loans and leases, and reserves for
transfer risk. Loans are reported gross of these items.
7. This balancing item is not intended as a measure of equity capital for use in capital
adequacy analysis. On a seasonally adjusted basis, this item reflects any differences in the
seasonal patterns estimated for total assets and total liabilities.
8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and
equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39.
9. Includes mortgage-backed securities issued by U.S. government agencies, U.S.
government-sponsored enterprises, and private entities.
10. Difference between fair value and historical cost for securities classified as availablefor-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are
restated to include an estimate of these tax effects.
11. Mainly commercial and industrial loans but also includes an unknown amount of credit
extended to other than nonfinancial businesses.
12. Total amount outstanding.

A22
1.32

DomesticNonfinancialStatistics • August 2001
COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING
A. Commercial Paper
Millions of dollars, seasonally adjusted, end of period
Year ending December

2000

2001

Item

1 All issuers

2
3

Financial companies'
Dealer-placed paper, total"
Directly placed paper, total 3

4 Nonfinancial companies

4

1996

1997

1998

1999

2000

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

775,371

966,699

1,163,303

1,403,023

1,615,341

1,624,421

1,615,341

1,566,104

1,544,572

1,511,354

1,519,528

361,147
229,662

513,307
252,536

614,142
322,030

786,643
337,240

973,060
298,848

960,701
312,438

973,060
298,848

976,735
270,922

977,791
263,554

978,225
249,420

995,072
247,333

184,563

200,857

227,132

279,140

343,433

351,282

343,433

318,447

303,227

283,711

277,123

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. As reported by financial companies that place their paper directly with investors.
4. Includes public utilities and firms engaged primarily in such activities as communications, construction, manufacturing, mining, wholesale and retail trade, transportation, and
services.

B. Bankers Dollar Acceptances 1
Millions of dollars, not seasonally adjusted, year ending September 2
Item
1 Total amount of reporting banks' acceptances in existence
2 Amount of other banks' eligible acceptances held by reporting banks
3 Amount of own eligible acceptances held by reporting banks (included in item 1)
4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries
(included in item 1)
1. Includes eligible, dollar-denominated bankers acceptances legally payable in the United
States. Eligible acceptances are those that are eligible for discount by Federal Reserve Banks;
that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal
Reserve Act (12 U.S.C. §372).

1.33

PRIME RATE CHARGED BY BANKS

1997

1998

1999

2000

25,774

14,363

10,094

9,881

736
6,862

523
4,884

461
4,261

462
3,789

10,467

5,413

3,498

3,689

2. Data on bankers dollar acceptances are gathered from approximately 40 institutions;
includes U.S. chartered commerical banks (domestic and foreign offices), U.S. branches and
agencies of foreign banks, and Edge and agreement corporations. The reporting group is
revised every year.

Short-Term Business Loans1

Percent per year

Date of change

1998—Jan.
1
Sept. 30
Oct. 16
Nov. 18

8.50
8.25
8.00
7.75

1999—July
1
Aug. 25
Nov. 17

8.00
8.25
8.50

2000—Feb. 3
Mar. 22
May 17

8.75
9.00
9.50

2001—Jan.
Feb.
Mar.
Apr.
May
June

9.00
8.50
8.00
7.50
7.00
6.75

4
1
21
19
16
28

Period

Rate

Average
rate

1998
1999
2000

8.35
8.00
9.23

1998—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.50
8.49
8.12
7.89
7.75

1. The prime rate is one of several base rates that banks use to price short-term business
loans. The table shows the date on which a new rate came to be the predominant one quoted
by a majority of the twenty-five largest banks by asset size, based on the most recent Call




Period

1999—Jan
Feb
Mar.
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec

Average
rate

7.75
7.75
7.75
7.75
7.75
7.75
8.00
8.06
8.25
8.25
8.37
8.50

Period

Average
rate

2000—Jan
Feb
Mar
Apr.
May
June
July
Aug
Sept
Oct
Nov.
Dec

8.50
8.73
8.83
9.00
9.24
9.50
9.50
9.50
9.50
9.50
9.50
9.50

2001—Jan
Feb
Mar.
Apr
May
June

9.05
8.50
8.32
7.80
7.24
6.98

Report. 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.

Financial Markets
1.35

INTEREST RATES

A23

Money and Capital Markets

Percent per year; figures are averages of business day data unless otherwise noted
2001, week ending

2001
Item

1998

1999

2000
Feb.

Mar.

Apr.

May

Apr. 27

May 4

May 11

May 18

May 25

MONEY MARKET INSTRUMENTS

1 Federal funds 1,2,3
2 Discount window borrowing2-4

5.35
4.92

4.97
4.62

6.24
5.73

5.49
5.00

5.31
4.81

4.80
4.28

4.21
3.73

4.42
4.00

4.53
4.00

4.43
4.00

4.37
3.86

3.98
3.50

Commercial paper1,5,6
Nonfinancial
1-month
3
4
2-month
3-month
5

5.40
5.38
5.34

5.09
5.14
5.18

6.27
6.29
6.31

5.39
5.25
5.14

5.02
4.87
4.78

4.71
4.54
4.44

4.06
3.98
3.93

4.36
4.25
4.19

4.35
4.19
4.14

4.06
3.98
3.93

3.98
3.94
3.90

3.98
3.92
3.87

Financial
1-month
2-month
3-month

5.42
5.40
5.37

5.11
5.16
5.22

6.28
6.30
6.33

5.41
5.29
5.19

5.06
4.93
4.81

4.74
4.57
4.47

4.08
4.00
3.96

4.41
4.28
4.21

4.31
4.23
4.15

4.09
3.99
3.96

4.02
3.96
3.93

4.00
3.94
3.92

9
10
11

Commercial paper (historical)3'5'1
1-month
3-month
6-month

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

12
13
14

Finance paper, directly placed (historical) 3,5,8
1-month
3-month
6-month

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

15
16

Bankers acceptances3"5'9
3-month
6-month

5.39
5.30

5.24
5.30

6.23
6.37

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

17
18
19

Certificates of deposit, secondary market3,10
1-month
3-month
6-month

5.49
5.47
5.44

5.19
5.33
5.46

6.35
6.46
6.59

5.47
5.26
5.12

5.09
4.89
4.74

4.77
4.53
4.41

4.11
4.02
4.01

4.42
4.26
4.20

4.33
4.20
4.17

4.12
4.01
4.00

4.06
4.00
3.99

4.04
3.98
3.98

5.45

5.31

6.45

5.26

4.89

4.55

4.01

4.26

4.19

3.99

3.99

3.97

4.78
4.83
4.80

4.64
4.75
4.81

5.82
5.90
5.78

4.88
4.71
4.51

4.42
4.28
4.11

3.87
3.85
3.80

3.62
3.62
3.60

3.72
3.71
3.65

3.78
3.77
3.72

3.65
3.60
3.58

3.54
3.59
3.58

3.58
3.61
3.59

4.81
4.85
4.85

4.66
4.76
4.78

5.66
5.85
5.85

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

5.05
5.13
5.14
5.15
5.28
5.26
5.72
5.58

5.08
5.43
5.49
5.55
5.79
5.65
6.20
5.87

6.11
6.26
6.22
6.16
6.20
6.03
6.23
5.94

4.68
4.66
4.71
4.89
5.10
5.10
5.62
5.45

4.30
4.34
4.43
4.64
4.88
4.89
5.49
5.34

3.98
4.23
4.42
4.76
5.03
5.14
5.78
5.65

3.78
4.26
4.51
4.93
5.24
5.39
5.92
5.78

3.82
4.19
4.43
4.83
5.11
5.25
5.88
5.76

3.90
4.23
4.49
4.91
5.14
5.28
5.83
5.71

3.76
4.16
4.38
4.78
5.12
5.29
5.85
5.74

3.76
4.30
4.55
4.96
5.30
5.46
5.98
5.83

3.78
4.33
4.58
5.01
5.33
5.46
5.98
5.81

5.69

6.14

6.41

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

4.93
5.14
5.09

5.28
5.70
5.43

5.58
6.19
5.71

5.09
5.86
5.18

5.00
5.80
5.13

5.14
5.96
5.27

5.15
5.94
5.29

5.16
6.01
5.34

5.15
5.96
5.32

5.12
5.92
5.25

5.17
5.98
5.31

5.15
5.92
5.30

6.87

7.45

7.98

7.50

7.41

7.63

7.69

7.68

7.61

7.65

7.73

7.71

6.53
6.80
6.93
7.22

7.05
7.36
7.53
7.88

7.62
7.83
8.11
8.36

7.10
7.32
7.69
7.87

6.98
7.22
7.61
7.84

7.20
7.43
7.82
8.07

7.29
7.50
7.88
8.07

7.26
7.49
7.88
8.09

7.21
7.42
7.81
8.00

7.25
7.46
7.85
8.03

7.34
7.54
7.93
8.11

7.32
7.52
7.90
8.10

1.49

1.25

1.15

1.22

1.33

1.32

1.23

1.27

1.23

1.24

1.22

1.22

6
7
8

3,11
20 Eurodollar deposits, 3-month

24
25
26

U.S. Treasury bills
Secondary market 3,5
3-month
6-month
1-year
Auction high 3,5,12
3-month
6-month
1-year

27
28
29
30
31
32
33
34

Constant maturities13
1-year
2-year
3-year
5-year
7-year
10-year
20-year
30-year

21
22
23

U.S. TREASURY NOTES AND BONDS

Composite
35 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS
Moody's series'4
36 Aaa
37 Baa
38 Bond Buyer series15
CORPORATE BONDS
16
39 Seasoned issues, all industries

40
41
42
43

Rating group
Aaa
Aa
A
Baa
MEMO

Dividend-price ratio17
44 Common stocks

NOTE. Some of the 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.
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. Interest rates interpolated from data on certain commercial paper trades settled by the
Depository Trust Company. The trades represent sales of commercial paper by dealers or
direct issuers to investors (that is, the offer side). See the Board's Commercial Paper web
pages (http://www.federalreserve.gov/releases/cp) for more information.
7. An average of offering rates on commercial paper for firms whose bond rating is AA or
the equivalent. Series ended August 29, 1997.
8. An average of offering rates on paper directly placed by finance companies. Series
ended August 29, 1997.




9. Representative closing yields for acceptances of the highest-rated money center banks.
10. An average of dealer offering rates on nationally traded certificates of deposit.
11. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for
indication purposes only.
12. Auction date for daily data; weekly and monthly averages computed on an issue-date
basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before
that, they are weighted average yields from multiple-price auctions.
13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Department of the Treasury.
14. General obligation bonds based on Thursday figures; Moody's Investors Service.
15. State and local government general obligation bonds maturing in twenty years are used
in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys'
A1 rating. Based on Thursday figures.
16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected
long-term bonds.
17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in
the price index.

A24
1.36

DomesticNonfinancialStatistics • August 2001
STOCK MARKET

S e l e c t e d Statistics

2000
Indicator

1998

1999

2001

2000
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Prices and trading volume (averages of daily figures)
Common stock prices (indexes)
1 New York Stock Exchange
(Dec. 31, 1965 = 50)
2
Industrial
3
Transportation
4
Utility
Finance
5

550.65
684.35
468.61
190.52
516.65

619.52
775.29
491.62
284.82
530.97

643.71
809.40
414.73
478.99
552.48

667.05
829.99
404.23
463.76
616.89

646.53
797.00
403.20
469.16
587.76

646.64
800.88
434.92
455.66
600.45

645.44
792.66
457.53
444.16
621.62

650.55
796.74
471.21
440.36
634.17

648.05
799.38
482.26
424.53
626.41

603.44
744.21
452.36
395.34
583.38

607.06
747.48
455.22
400.49
587.88

644.44
798.94
477.21
414.69
618.74

6 Standard & Poor's Corporation
(1941-43 = 10)1

1,085.50

1,327.33

1,427.22

1,468.06

1,390.14

1,375.04

1,330.93

1,335.63

1,305.75

1,185.85

1,189.84

1,270.37

682.69

770.90

922.22

952.74

913.64

892.60

870.16

898.18

923.99

891.22

891.18

940.73

666,534
28,870

799,554
32,629

1,026,867
51,437

1,026,597
47,047

1,167,025
57,915

1,015,606
58,541

1,183,149
73,759

1,299,986
72,312

1,117,977
70,648

1,251,569
81,666

1,247,382
77,612

1,091,366
66,103

7 American Stock Exchange
(Aug. 31, 1973 = 50)2
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
Free credit balances at brokers4
11 Margin accounts5
12 Cash accounts

140,980

228,530

198,790

250,780

233,380

219,110

198,790

197,110

186,810

165,350

166,940

174,180

40,250
62,450

55,130
79,070

100,680
84,400

70,960
74,766

82,990
73,410

96,730
74,050

100,680
84,400

90,380
81,380

99,390
78,660

106,300
77,520

97,470
77,460

91,990
76,260

Margin requirements (percent of market value and effective date)6

13 Margin stocks
14 Convertible bonds
15 Short sales

Mar. 11, 1968

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. In July 1976 a financial group, composed of banks and insurance companies, was added
to the group of stocks on which the index is based. The index is now based on 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 broker-dealers 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. Series initiated in June 1984.




Jan. 3, 1974
50
50
50

6. Margin 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 on securities 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.

Federal Finance
1.38

A25

FEDERAL FISCAL AND FINANCING OPERATIONS
Millions o f dollars
Fiscal year

Calendar year

Type of account or operation
1999

2000
Dec.

U.S. budget
1 Receipts, total
2
On-budget
Off-budget
3
4 Outlays, total
5
On-budget
6
Off-budget
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 Other 2

2001

2000
1998

Jan.

Feb.

Mar.

Apr.

May

331,796
278,611
53,185
141,999
109,938
32,062
189,796
168,673
21,123

125,194
84,363
40,831
153,112
118,121
34,992
-27,919
-33,758
5,839

1,721,798
1,305,999
415,799
1,652,619
1,336,015
316,604
69,179
-30,016
99,195

1,827,302
1,382,986
444,468
1,702,875
1,382,097
320,778
124,579
889
123,690

2,025,218
1,544,634
480,584
1,788,826
1,458,061
330,765
236,392
86,573
149,819

200,489
161,737
38,752
167,823
132,747
35,075
32,666
28,990
3,677

219,215
171,001
48,214
142,836
144,448
-1,613
76,379
26,553
49,827

110,481
70,555
39,926
158,649
123,573
35,076
-48,168
-53,018
4,850

130,07 l r
84,120 r
45,951
180,733r
145,182r
35,550
-50,662
-61,062
10,401

-51,211
4,743
-22,711

-88,674
-17,580
-18,325

-222,672
3,799
-17,519

-36,689
-9,632
13,655

-23,990
-45,761
-6,628

15,100
45,717
-12,649

32,557
-7,171
25,276

-135,572
-36,846
-17,378

-20,608
58,856
-10,329

38,878
4,952
33,926

56,458
6,641
49,817

52,659
8,459
44,199

21,069
5,149
15,920

66,830
5,256
61,574

21,113
4,956
16,158

28,284
5,657
22,627

65,130
7,894
57,236

6,274
4,396
1,878

MEMO

13 Treasury operating balance (level, end of
period)
14
Federal Reserve Banks
15
Tax and loan accounts

1. Since 1990, off-budget items have been the social security trust funds (Federal Old-Age,
Survivors, and Disability Insurance) and the U.S. Postal Service.
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 IMF loanvaluation adjustment; and profit on sale of gold.
SOURCE. Monthly totals; U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government; fiscal year totals: U.S. Office of Management
and Budget, Budget of the U.S. Government when available.

A26
1.39

DomesticNonfinancialStatistics • August 2001
U.S. B U D G E T R E C E I P T S A N D

OUTLAYS'

Millions of dollars

Fiscal year

Calendar year

Source or type

1999
1999

2000

2001

2000
HI

H2

HI

H2

Mar.

Apr.

May

RECEIPTS
1 All sources
2 Individual income taxes, net
3
Withheld
4
Nonwithheld
5
Refunds
Corporation income taxes
6
Gross receipts
7
Refunds
8 Social insurance taxes and contributions, net . . .
y
Employment taxes and contributions2
10
Unemployment insurance
ii
Other net receipts3
12
13
14
15

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts4

1,827,302

2,025,218

966,045

892,266

1,089,763

952,942

130,071

331,796

125,194

879,480
693,940
308,185
122,706

1,004,462
780,397
358,049
134,046

481,907
351,068
240,278
109,467

425,451
372,012
68,302
14,841

550,208
388,526
281,103
119,477

458,679
395,572
77,732
14,628

33,591
67,068
7,662
41,153

220,015
64,489
187,032
31,518

46,718
63,237
13,753
30,282

216,324
31,645
611,833
580,880
26,480
4,473

235,655
28,367
652,852
620,451
27,640
4,761

106,861
17,092
324,831
306,235
16,378
2,216

110,111
13,996
292,551
280,059
10,173
2,319

119,166
13,781
353,514
333,584
17,562
2,368

123,962
15,776
310,122
297,665
10,097
2,360

26,986
4,849
60,135
59,499
209
427

26,693
2,948
73,887
68,773
4,760
354

6,453
1,349
61,437
52,210
8,786
441

70,414
18,336
27,782
34,929

68,865
19,914
29,010
42,826

31,015
8,440
14,915
15,140

34,262
10,287
14,001
19,569

33,532
9,218
15,073
22,831

35,501
10,676
13,216
16,556

7,064
1,653
2,215
3,276

5,690
1,477
4,471
2,510

4,390
1,501
2,485
3,559

OUTLAYS

16 All types

1,702,875

1,788,826

817,227

882,465

892,947

894,905

180,733

141,999

153,508

17
18
19
20
21
22

National defense
International affairs
General science, space, and technology
Energy
Natural resources and environment
Agriculture

274,873
15,243
18,125
912
23,970
23,011

294,494
17,216
18,637
-1,060
25,031
36,641

134,414
6,879
9,319
797
10,351
9,803

149,573
8,530
10,089
-90
12,100
20,887

143,476
7,250
9,601
-893
10,814
11,164

147,651
11,902
10,389
-595
12,907
20,977

31,144
1,980
1,811
187
1,822
2,083

22,253
1,272
1,547
-390
1,741
1,272

26,028
-1,490
1,892
-25
2,136
711

23
24
2b
26

Commerce and housing credit
Transportation
Community and regional development
Education, training, employment, and
social services

2,649
42,531
11,870

3,211
46,854
10,629

-1,629
17,082
5,368

7,353
23,199
6,806

-2,497
21,054
5,050

4,408
25,841
5,962

1,025
3,899
616

-260
3,593
855

-907
4,850
928

56,402

59,201

29,003

27,532

31,234

29,263

6,874

4,798

5,907

27 Health
28 Social security and Medicare
29 Income security

141,079
580,488
237,707

154,534
606,549
247,895

69,320
261,146
126,552

74,490
295,030
113,504

75,871
306,966
133,915

81,413
307,473
113,212

14,763
57,468
31,652

14,844
50,826
19,913

14,954
55,876
22,005

30
31
32
33
34

43,212
25,924
15,771
229,735
-40,445

47,083
27,820
13,454
223,218
-42,581

20,105
13,149
6,641
116,655
-17,724

23,412
13,459
7,010
112,420
-22,850

23,174
13,981
6,198
115,545
-19,346

22,615
14,635
6,461
104,685
-24,070

6,333
2,559
1,100
18,568
-3,150

2,164
2,562
1,162
17,816
-3,970

2,865
2,450
849
18,363
-3,882

Veterans benefits and services
Administration of justice
General government
Net interest5
Undistributed offsetting receipts6

1. Functional details do not sum to total outlays for calendar year data because revisions to
monthly totals have not been distributed among functions. Fiscal year total for receipts and
outlays do 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. Federal employee retirement contributions and civil service retirement and
disability fund.




4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
5. Includes interest received by trust funds.
6. Rents and royalties for the outer continental shelf, U.S. government contributions for
employee retirement, and certain asset sales.
SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S.
Government, Fiscal Year 2002\ monthly and half-year totals: U.S. Department of the Treasury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government.

Federal Finance
1.40

All

FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
2001

2000

1999
Item
Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

1 Federal debt outstanding

5,681

5,668

5,685

5,805

5,802

5,714

5,702

5,690

5,801

2 Public debt securities
Held by public
3
4
Held by agencies

5,652
3,795
1,857

5,639
3,685
1,954

5,656
3,667
1,989

5,776
3,716
2,061

5,773
3,688
2,085

5,686
3,496
2,190

5,674
3,439
2,236

5,662
3,414
2.249

5,774
3,434
2,339

29
28
1

29
28
1

29
28
1

29
28
1

28
28
0

28
28
0

28
28
0

27
27
0

27
27
0

5 Agency securities
Held by public
6
Held by agencies
7

5,566

5,552

5,568

5,687

5,687

5,601

5,592

5,581

5,693

9 Public debt securities
10 Other debt1

5,566
0

5,552
0

5,568
0

5,687
0

5,686
0

5,601
0

5,591
0

5,580
0

5,692
0

MEMO
11 Statutory debt limit

5,950

5,950

5,950

5,950

5,950

5,950

5,950

5,950

5,950

8 Debt subject to statutory limit

1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District of Columbia stadium bonds.

1.41

GROSS PUBLIC DEBT OF U.S. TREASURY

SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the
United States and Monthly Treasury Statement.

Types and Ownership

Billions of dollars, end of period
2000
Type and holder

1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14
15

B\ type
Interest-bearing
Marketable
Bills
Notes
Bonds
Inflation-indexed notes and bonds'
Nonmarketable2
State and local government series
Foreign issues3
Government
Public
Savings bonds and notes
Government account series4
Non-interest-bearing

By holder 5
16 U.S. Treasury and other federal agencies and trust funds
17 Federal Reserve Banks6
18 Private investors
Depository institutions
19
Mutual funds
20
21
Insurance companies
State and local treasuries7
22
Individuals
Savings bonds
23
24
Pension funds
Private
25
State and Local
26
Foreign and international8
27
Other miscellaneous investors7'9
28

1997

1999

2001

2000
Q2

Q3

Q4

Ql

5,502.4

5,614.2

5,776.1

5,662.2

5,685.9

5,674.2

5,662.2

5,773.7

5,494.9
3,456.8
715.4
2,106.1
587.3
33.0
2,038.1
124.1
36.2
36.2
.0
181.2
1,666.7
7.5

5,605.4
3,355.5
691.0
1,960.7
621.2
67.6
2,249.9
165.3
34.3
34.3
.0
180.3
1,840.0
8.8

5,766.1
3,281.0
737.1
1,784.5
643.7
100.7
2,485.1
165.7
31.3
31.3
.0
179.4
2,078.7
10.0

5,618.1
2,966.9
646.9
1,557.3
626.5
121.2
2,651.2
151.0
27.2
27.2
.0
176.9
2,266.1
44.2

5,675.9
3,070.7
629.9
1,679.1
637.7
109.0
2,605.2
160.4
27.7
27.7
.0
177.7
2,209.4
10.1

5,622.1
2,992.8
616.2
1,611.3
635.3
115.0
2,629.3
153.3
25.4
25.4
.0
177.7
2,242.9
52.1

5,618.1
2,966.9
646.9
1,557.3
626.5
121.2
2,651.2
151.0
27.2
27.2
.0
176.9
2,266.1
44.2

5,752.0
2,981.9
712.0
1,499.0
627.9
128.0
2,770.0
152.9
24.7
24.7
.0
177.4
2,360.3
46.5

1,657.1
430.7
3,414.6
300.3
321.5
176.6
239.3

1,828.1
452.1
3,334.0
237.3
343.2
144.5
269.3

2,064.2
478.0
3,233.9
246.5
348.6
125.3
266.8

2,270.2
511.7
2,880.4
197.8
339.0
116.6
246.2

2,193.6
504.9
2,987.4
219.4
322.8
122.0
256.4

2,226.5
511.4
2,936.2
218.3
324.3
119.3
241.9

2,270.2
511.7
2,880.4
197.8
339.0
116.6
246.2

2,357.0
523.9
2,892.9
188.1
348.2
112.8
234.1

186.5
360.5
143.5
216.9
1,241.6
589.5

186.6
375.3
157.6
217.7
1,278.7
499.0

186.4
378.9r
167.7
211.2r
1,268.7
410.8

184.8
387.7r
181.6
206.1
1,201.4
218.3

184.6
384.1
173.6
210.5
1,248.8
250.4

184.3
383.1
179.2
203.9
1,225.2
237.9

184.8
387.7r
181.6
206.1
1,201.4
218.3

184.8
384.9
181.3
203.6
1,196.2
n.a.

1. The U-S- Treasury first issued inflation-indexed securities during the first quarter of 1997.
2. Includes (not shown separately) securities issued to the Rural Electrification Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
3. Nonmarketable series denominated in dollars, and series denominated in foreign currency held by foreigners.
4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds.
5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual
holdings; data for other groups are Treasury estimates.
6. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin
table 1.18.
7. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable
federal securities was removed from "Other miscellaneous investors" and added to "State and
local treasuries." The data shown here have been revised accordingly.




1998

8. Includes nonmarketable foreign series Treasury securities and Treasury deposit funds.
Excludes Treasury securities held under repurchase agreements in custody accounts at the
Federal Reserve Bank of New York.
9. Includes individuals, government-sponsored enterprises, brokers and dealers, bank
personal trusts and estates, corporate and noncorporate businesses, and other investors.
SOURCES. Data by type of security, U.S. Treasury Department, Monthly Statement of the
Public Debt of the United States; data by holder, Federal Reserve Board of Governors, Flow
of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin,
unless otherwise noted.

A28
1.42

DomesticNonfinancialStatistics • August 2001
Transactions1

U.S. G O V E R N M E N T S E C U R I T I E S D E A L E R S
Millions of dollars, daily averages

2001

2001, week ending

Item
Feb.

1
2
3
4
5
6
7
8
9

OUTRIGHT TRANSACTIONS2
By type of security
U.S. Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed

By type of counterparty
With interdealer broker
U.S. Treasury
Federal agency
Mortgage-backed
With other
13
U.S. Treasury
14
Federal agency
Mortgage-backed
15
10
11
12

Mar.

Apr.

Apr. 4

Apr. 11

Apr. 18

Apr. 25

May 2

May 9

May 16

May 23

May 30

30,923

32,043

32,414

36,299

31,998

44,646

27,625

20,894

17,560

20,596

20,583

34,425

177,374
97,333r
1,673

170,530r
87,263r
1,575

180,666r
82,663r
1,847r

175,696r
84,918r
1,794

159,027r
85,881r
1,676

190,179
78,227
1,770

196,537
82,033
1,995

182,562
82,012
2,044

196,987
94,801
1,629

201,426
94,370
2,650

163,520
80,939
1,469

170,148
74,755
1,633

66,280

62,429

61,242r

57,355

56,842r

61,195

66,497

63,766

59,305

52,421

52,497

56,532

998

1,188

965

647

1,517

1,502

1,352

1,730

1,588

1,194

1,903

19,340
9,935
108,394

16,460
13,912
105,381

18,577
7,125r
107,684

12,047
8,079r
83,096

17,969
6,381r
144,118

18,396
5,274
126,096

23,674
8,070
88,470

17,867
8,307
79,022

15,792
6,490
120,064

18,626
8,903
122,504

17,249
13,506
87,584

14,387
7,244
72,304

164,014
14,732
32,659

151,017
15,012
34,045

152,513
12,924
34,441

153,316
11,034
28,157

142,672
11,672
43,120

160,861
11,608
39,724

156,341
15,939
29,240

150,604
13,632
27,882

159,235
12,476
39,299

165,885
12,561
31,380

140,001
12,696
31,511

144,299
10,856
26,367

143,288
82,229
75,735

140,393
78,786
71,337

145,077
75,208
73,244

145,390
67,411
54,940

135,910
70,167
100,998

153,961
74,774
86,373

151,850
83,805
59,231

136,908
77,660
51,140

151,742
70,842
80,765

153,157
68,977
91,124

126,510
71,750
56,073

136,662
69,211
45,937

l,406

r

FUTURES TRANSACTIONS3
By type of deliverable security
16 U.S. Treasury bills
Coupon securities, by maturity
17
Five years or less
18
More than five years
19 Inflation-indexed
Federal agency
Discount notes
20
Coupon securities, by maturity
21
One year or less
22
More than one year, but less than
or equal to five years
23
More than five years
24
Mortgage-backed

0
4,230
17,291
0

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

4,208
16,989
0

3,482
17,079r
0

3,488
16,395
0

3,919
18,265
0

3,766
16,849
0

3,007
17,124
0

3,161
16,015
0

4,387
16,450
0

5,762
16,392
0

4,177
19,139
0

7,214
22,237
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0
66
0

0
55
0

0

0

0

0

0

0

0

0

0

n.a.

n.a.
0

n.a.
0

n.a.
0

n.a.
0

n.a.

n.a.
0

0

n.a.
0

n.a.
0

0
n.a.

0

0

OPTIONS TRANSACTIONS4
By type of underlying security
25 U.S. Treasury bills
Coupon securities, by maturity
26
Five years or less
27
More than five years
28 Inflation-indexed
Federal agency
Discount notes
29
Coupon securities, by maturity
30
One year or less
31
More than one year, but less than
or equal to five years
32
More than five years
33
Mortgage-backed

0

0

0

0

0

0

0

0

0

0

0

0

971
4,166
0

1,167
4,188
0

1,022
4,119
0

1,739
4,805
0

502
4,563
0

1,908
4,848
0

598
3,615
0

696
2,561
0

1,366
3,060
0

1,140
4,111
0

728
3,133
0

1,285
4,336
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

29
119
1,444

85
133
1,863

72
118
1,024

85
75
802

n.a.
172
1,251

63
29
1,753

n.a.
n.a.
404

70
190
932

130
196
2,435

0
131
1,520

131
n.a.
1,192

119
40
863

1. Transactions are market purchases and sales of securities as reported to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Monthly averages are based on the number of trading days in the month.
Transactions are assumed to be evenly distributed among the trading days of the report week.
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. Outright transactions include immediate and forward transactions. Immediate delivery
refers to purchases or sales of securities (other than mortgage-backed federal 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 mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business
days or less. Stripped securities arereportedat market value by maturity of coupon or corpus.




Forward transactions are agreements made in the over-the-counter market that specify
delayed 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 business days.
3. Futures transactions are standardized agreements arranged on an exchange. All futures
transactions are included regardless of time to delivery.
4. Options transactions are purchases or sales of put and call options, whether arranged on
an organized exchange or in the over-the-counter market, and include options on futures
contracts on U.S. Treasury and federal agency securities.
NOTE, "n.a." indicates that data are not published because of insufficient activity.

Federal Finance
1.43

U.S. G O V E R N M E N T S E C U R I T I E S D E A L E R S

A29

Positions and Financing1

Millions of dollars
2001

2001, week ending

Mar.

Feb.

Apr.

Apr. 4

Apr. 11

Apr. 18

Apr. 25

May 2

May 16

May 9

May 23

Positions2
NET OUTRIGHT POSITIONS3
By type of security
1 U.S. Treasury bills
Coupon securities, by maturity
2
Five years or less
3
More than five years
4 Inflation-indexed
Federal agency
5
Discount notes
Coupon securities, by maturity
6
One year or less
7
More than one year, but less than
or equal to five years
8
More than five years
9
Mortgage-backed

9,779

20,272

30,544

44,155

40,934

57,291

6,395

1,469

387

-1,152

-3,039

-17,917
-3,985
3,907

-14,721
-6,315
4,146

-17,951
-7,938
4,196

-14,819
-6,752
4,188

-16,003
-7,782
4,377

-18,297
-7,227
4,508

-16,403
-8,356
3,827

-24,868
-9,514
4,026

-10,566
-12,556
3,420

-17,324
-13,569
3,907

-20,578
-12,359
5,444

32,994

36,096

49,374

42,037

49,299

54,292

50,340

47,111

47,215

51,112

51,121

18,229

16,162

15,777

16,519

16,307

15,823

14,955

15,529

14,666

12,933

13,294

6,215
5,480
10,110

5,802
8,578
9,611

7,171
8,699
12,181

4,274
9,240
13,082

4,776
9,926
9,749

7,117
8,534
9,762

9,425
7,669
14,961

9,759
8,222
14,358

7,730
7,161
13,940

7,246
5,873
15,511

11,572
6,562
16,402

n.a.

n.a.

n.a.

n.a.

n.a.

NET FUTURES POSITIONS4
By type of deliverable security
10 U.S. Treasury bills
Coupon securities, by maturity
11
Five years or less
12
More than five years
13 Inflation-indexed
Federal agency
14
Discount notes
Coupon securities, by maturity
15
One year or less
16
More than one year, but less than
or equal to five years
17
More than five years
18
Mortgage-backed

n.a.

n.a.

2,344
-11,744
0

-1,421
-10,207
0

-1,673
-5,836
0

-1,353
-8,406
0

n.a.

-1,646
-6,516
0

-424
-6,782
0

n.a.

n.a.

n.a.
-3,011
-4,296
0

-1,842
-3,659
0

-1,949
-6,652
0

1,174
-6,233
0

1,881
-5,458
0
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

n.a.
-300
0

0
-341
0

0
-335
0

0
-385
0

0
-380
0

0
-364
0

0
-293
0

0
-253
0

0
-266
0

0
-372
0

0
-270
0

NET OPTIONS POSITIONS

19
20
21
22
23
24
25
26
27

By type of deliverable security
U.S." Treasury bills
Coupon securities, by maturity
Five years or less
More than five years
Inflation-indexed
Federal agency
Discount notes
Coupon securities, by maturity
One year or less
More than one year, but less than
or equal to five years
More than five years
Mortgage-backed

0

0

0

0

0

0

0

0

0

0

0

604
-815
0

295
730
0

-356
658
0

-612
1,131
0

-1,472
377
0

-719
1,163
0

490
-50
0

735
956
0

1,724
1,429
0

1,356
2,000
0

276
3,246
0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

-578
558
2,002

355
593
2,485

302
103
1,368

519
20
2,220

216
82
823

236
24
1,121

252
74
2,061

411
350
823

565
607
-41

459
135
1,135

328
299
1,543

Financing5
Reverse repurchase agreements
28 Overnight and continuing
29 Term

350,827
845,692

376,076
881,202

366,382
925,786

369,121
841,773

360,179
902,139

361,327
919,879

370,012
977,571

374,868
961,871

377,131
1,018,020

396.864
865,077

376,925
946,881

Securities borrowed
30 Overnight and continuing
31 Term

278,815
120,113

278,034
123,908

280,746
125,608

270,908
123,493

268,931
128,356

279,432
124,767

290,534
124,015

293,294
126,859

294,510
128,300

308,057
115,417

298,110
118,057

3,002
n.a.

3,391
n.a.

3,161
n.a.

2,963
n.a.

3,127
n.a.

3,299
n.a.

3,104
n.a.

3,251
n.a.

3,694
n.a.

3,450
n.a.

3.148
n.a.

Repurchase agreements
34 Overnight and continuing
35 Term

803,148
801,371

836,852
842,163

869,117
852,132

861,690
775,748

864,697
833,753

867,654
860,415

890,133
879,972

853,874
888,398

870,984
934,216

874,702
802,259

862,049
869.971

Securities loaned
36 Overnight and continuing
37 Term

9,648
4,194

9,463
4,429

9,626
4,411

9,386
n.a.

10,065
n.a.

9,561
4,469

9,591
4,431

9,346
4,303

9,681
4,883

10,371
4,552

9,665
4,451

Securities pledged
38 Overnight and continuing
39 Term

51,166
5,029

50,758
5,938

53,318
6,529

49,627
6,174

53,160
6,500

52,868
6,362

53,962
6,766

56,220
6,753

58,123
6,685

57,947
7,753

57,773
7,809

Collateralized loans
40 Total

21,373

23,731

24,336

27,366

22,520

24,447

25,177

23,123

23,209

24,038

20,984

Securities received as pledge
32 Overnight and continuing
33 Term

1. Data for positions and financing are obtained from reports submitted to the Federal
Reserve Bank of New York by the U.S. government securities dealers on its published list of
primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar
days of the report week are assumed to be constant. Monthly averages are based on the
number of calendar days in the month.
2. Securities positions are reported at market value.
3. Net outright positions include immediate and forward positions. 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 for
mortgage-backed agency securities include securities purchased or sold that have been
delivered or are scheduled to be delivered in thirty business days or less.
Forward positions reflect agreements made in the over-the-counter market that specify
delayed 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 business days.
4. Futures positions reflect standardized agreements arranged on an exchange. All futures
positions are included regardless of time to delivery.
5. 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. Financing
data are reported in terms of actual funds paid or received, including accrued interest.
NOTE, "n.a." indicates that data are not published because of insufficient activity.

A30
1.44

DomesticNonfinancialStatistics • August 2001
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES

Debt Outstanding

Millions of dollars, end of period
2001

2000
Agency

1 Federal and federally sponsored agencies
2 Federal agencies
3
Defense Department1
4
Export-Import Bank 2,3
5
Federal Housing Administration4
6
Government National Mortgage Association certificates of
participation5
7
Postal Service6
8
Tennessee Valley Authority
9
United States Railway Association6
10 Federally sponsored agencies7
11
Federal Home Loan Banks
12
Federal Home Loan Mortgage Corporation
13
Federal National Mortgage Association
14
Farm Credit Banks8
15
Student Loan Marketing Association 9
16
Financing Corporation10
17
Farm Credit Financial Assistance Corporation"
18
Resolution Funding Corporation12

1997

1998

1999

2000
Nov.

Dec.

Jan.

Feb.

Mar.

n.a.

1,022,609

1,296,477

1,616,492

1,851,632

1,833,155

1,851,632

1,917,503

1,919,761

27,792
6
552
102

26,502
6
n.a.
205

26,376
6
n.a.
126

25,666
6
n.a.
255

25,555
6
n.a.
239

25,666
6
n.a.
255

25,426
6
n.a.
275

25,141
6
n.a.
291

25,063
6
n.a.
307

n.a.
n.a.
27,786
n.a.

n.a.
n.a.
26,496
n.a.

n.a.
n.a.
26,370
n.a.

n.a.
n.a.
25,660
n.a.

n.a.
n.a.
25,549
n.a.

n.a.
n.a.
25,660
n.a.

n.a.
n.a.
25,420
n.a.

n.a.
n.a.
25,135
n.a.

n.a.
n.a.
25,057
n.a.

994,817
313,919
169,200
369,774
63,517
37,717
8,170
1,261
29,996

1,269,975
382,131
287,396
460,291
63,488
35,399
8,170
1,261
29,996

1,590,116
529,005
360,711
547,619
68,883
41,988
8,170
1.261
29,996

1,825,966
594,404
426,899
642,700
74,181
45,375
8,170
1,261
29,996

1,807,600
580,957
429,617
633,100
71,667
50,016
8,170
1,261
29,996

1,825,966
594,404
426,899
642,700
74,181
45,375
8,170
1,261
29,996

1,873,199
604,904
446,997
654,200
73,925
50,669
8,170
1,261
29,996

1,892,362
598,586
455,623
668,200
73,647
53,886
8,170
1,261
29,996

1,894,698
602,824
461,338
666,600
74,174
47,322
8,170
1,261
29,996

49,090

44,129

42,152

40,575

40,170

40,575

39,348

38,924

39341

MEMO

19 Federal Financing Bank debt 13
20
21
22
23
24

Lending to federal and federally sponsored agencies
Export-Import Bank3
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association6

Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other

552
n.a.
n.a.
n.a.
n.a.
13,530
14,898
20,110

*

fT

T

T

T

T

n.a.
I
i

n.a.
I

n.a.
I
1

n.a.
1

n.a.
I
i

n.a.
I

n.a.
I

9,500
14,091
20,538

6,665
14,085
21,402

5,275
13,126
22,174

5,320
13,023
21,827

5,275
13,126
22,174

5,155
13,197
20,996

5,155
13,281
20,488

5,155
13,371
20,815

T
t

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. Includes
Federal Agricultural Mortgage Corporation; therefore, details do not sum to total. Some data
are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is
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.




*

A
T

n.a.
I

1

T

t

1

1

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 FFB, which began operations in 1974, is authorized to purchase or sell obligations
issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the
purpose of lending to other agencies, its debt is not included in the main portion of the table to
avoid double counting.
14. Includes FFB 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,
whereas the Rural Electrification Administration entry consists of both agency assets and
guaranteed loans.

Securities Markets and Corporate Finance
1.45

N E W SECURITY ISSUES

A31

T a x - E x e m p t State and L o c a l G o v e r n m e n t s

Millions of dollars
2000
Type of issue or issuer,
or use

1998

1999

2001

2000
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

1 All issues, new and refunding1

262,342

215,427

180,403

18,035

18,079

15,348

11,255

19,829

24,495

16,985

26,248

By type of issue
2 General obligation
3 Revenue

87,015
175,327

73,308
142,120

64,475
115,928

5,871
12,163

5,044
13,036

5,060
10,288

6,256
4,999

9,389
10,441

7,668
16,827

6,890
10,094

8,385
17,863

By type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township

23,506
178,421
60,173

16,376
152,418
46,634

19,944
111,695
39,273

3,005
11,224
3,806

1,942
12,311
3,827

1,640
1,053
3,165

1,738
7,061
2,456

3,268
11,011
5,550

1,893
17,280
5,323

1,900
113,344
3,740

3,123
17,281
5,845

7 Issues for new capital

160,568

161,065

154,257

16,387

14,520

13,286

8,758

13,384

15,387

12,264

20,002

36,904
19,926
21,037
n.a.
8,594
42,450

36,563
17,394
15,098
n.a.
9,099
47,896

38,665
19,730
11,917
n.a.
7,122
47,309

3,492
2,575
1,272
n.a.
730
6,558

3,446
2,124
1,973
n.a.
500
3,787

2,919
1,381
1,307
n.a.
615
4,264

2,786
780
678
n.a.
63
3,013

3,102
2,411
1,335
n.a.
281
4,742

5,343
1,219
1,677
n.a.
396
4,368

3,731
1,381
1,447
n.a.
436
3,010

5,714
2,522
2,969
n.a.
422
4,736

8
9
10
11
12
13

By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes

1. Par amounts of long-term issues based on date of sale.
2. Includes school districts.

1.46

N E W SECURITY ISSUES

SOURCE. Securities Data Company beginning January 1990; Investment
Digest before then.

Dealer's

U.S. Corporations

Millions of dollars
2000
Type of issue, offering,
or issuer

1998

1999

2001

2000
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

1 All issues'

1,128,491

1,072,866

942,198

94,492

62,466

95,595

61,378

125,894

96,206

139,267r

92,762

2 Bonds2

1,001,736

941,298

807,281

88,102

53,345

84,094

58,713

118,372

88,806

127,956

86,274

923.771
77,965

818,683
122,615

684,484
122,798

73,516
14,586

47,415
5,930

76,383
7,712

57,189
1,525

115,583
2,789

86,146
2,660

118,779
9,177

81,156
5,117

376

127

5,534

3,709

26

1,897

652

0

By type of offering
3 Sold in the United States
4 Sold abroad
MEMO

5 Private placements, domestic
By industry group
6 Nonfinancial
7 Financial
8 Stocks

1

n.a.

n.a.

n.a.

307,711
694,025

293,963
647,335

242,452
564,829

24,483
63,619

12,547
40,799

25,784
58,310

18,219
40,495

44,443
73,928

34,604
54,201

44,385
83,571

33,549
52,725

182,055

223,968

283,717

18,790

21,521

23,901

15,065

7,522

7,400

n,3ir

6,488

By type of offering
9 Public
10 Private placement4

126,755
55,300

131,568
92,400

134,917
148,800

6,390
12,400

9,121
12,400

11,501
12,400

2,665
12,400

7,522
n.a.

7,400
n.a.

11,31 r
n.a.

6,488
n.a.

By industry group
11 Nonfinancial
12 Financial

74,113
52,642

110,284
21,284

118,369
16,548

6,205
185

8,278
843

10,794
707

2,146
519

4,356
3,166

4,463
2,937

7,718
3,593r

4,823
1,665

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 closedend, intracorporate transactions, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.




2. Monthly data include 144(a) offerings.
3. Monthly data cover only public offerings.
4. Data are not available.
SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve
System.

A32
1.47

DomesticNonfinancialStatistics • August 2001
Net Sales and Assets 1

OPEN-END INVESTMENT COMPANIES
Millions of dollars

2000
Item

1999

2001

2000
Nov.

Oct.

Dec.

Jan.

Feb.

Apr.r

Mar.

May

1 Sales of own shares2

1,791,894

2,279,315

169,071

143,412

170,255

206,765

148,362

162,548

152,327

159,517

2 Redemptions of own shares
3 Net sales3

1,621,987
169,906

2,057,277
222,038

153,067
16,004

138,791
4,621

160,918
9,337

171,819
34,946

141,663
6,699

175,633
-13,085

130,454
21,873

134,634
24,883

4 Assets4

5,233,191

5,123,747

5,442,937

4,993,008

5,123,747

5,280,222

4,879,229

4,594,182

4,910,568

4,956,556

5 Cash5
6 Other

219,189
5,014,002

277,386
4,846,361

302,682
5,140,255

300,133
4,692,875

277,386
4,846,361

280,472
4,999,750

274,077
4,605,152

241,518
4,352,664

247,169
4,663,399

236,053
4,720,503

4. Market value at end of period, less current liabilities.
5. Includes all U.S. Treasury securities and other short-term debt securities.
SOURCE. Investment Company Institute. Data based on reports of membership, which
comprises substantially all open-end investment companies registered with the Securities and
Exchange Commission. Data reflect underwritings of newly formed companies after their
initial offering of securities.

1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual
funds.
2. Excludes reinvestment of net income dividends and capital gains distributions and share
issue of conversions from one fund to another in the same group.
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
1999
Account

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
7 Inventory valuation
8 Capital consumption adjustment

1998

1999

2001

2000

2000
Q2

Q3

Q4

Ql

Q2

Q3

Q4

Ql r

815.0
758.2
244.6
513.6
351.5
162.1

856.0
823.0
255.9
567.1
370.7
196.4

946.2
925.6
284.2
641.4
397.0
244.4

836.8
804.5
250.8
553.7
367.2
186.5

842.0
819.0
254.2
564.8
373.9
190.9

893.2
870.7
270.8
599.9
380.6
219.3

936.3
920.7
286.3
634.4
387.3
247.1

963.6
942.5
292.0
650.4
393.0
257.4

970.3
945.1
290.6
654.4
400.1
254.4

914.7
894.1
267.7
626.4
407.6
218.8

869.0
841.8
254.4
587.4
414.7
172.8

17.0
39.9

-9.1
42.1

-12.9
33.5

-8.9
41.2

-19.7
42.7

-19.2
41.6

-25.0
40.6

-13.6
34.7

-4.5
29.7

-8.5
29.1

-3.5
30.7

SOURCE. U.S. Department of Commerce, Survey of Current Business.

1.51

DOMESTIC FINANCE COMPANIES

Assets and Liabilities1

Billions of dollars, end of period; not seasonally adjusted
1999
Account

1998

1999

2001

2000

2000
Q3

Q4

Ql

Q2

Q3

Q4

Ql

ASSETS

1 Accounts receivable, gross2
7
Consumer
3
Business
Real estate
4

711.7
261.8
347.5
102.3

811.5
279.8
405.2
126.5

915.6
296.1
471.1
148.3

776.3
271.0
383.0
122.3

811.5
279.8
405.2
126.5

848.7
285.4
434.6
128.8

884.4
294.1
454.1
136.2

900.1
301.9
455.7
142.4

915.6
296.1
471.1
148.3

916.6
292.9
472.1
151.6

56.3
13.8

53.5
13.5

60.0
15.1

54.0
13.6

53.5
13.5

54.0
14.0

57.1
14.4

58.8
14.2

60.0
15.1

60.3
15.6

7 Accounts receivable, net
8 All other

641.6
337.9

744.6
406.3

840.5
461.8

708.6
368.5

744.6
406.3

780.7
412.7

813.0
418.3

827.1
441.4

840.5
461.8

840.7
474.8

9 Total assets

979.5

1,150.9

1,302.4

1,077.2

1,150.9

1,193.4

1,231.3

1,268.4

1,302.4

1,315.5

26.3
231.5

35.1
227.9

35.6
235.2

27.0
205.3

35.1
227.9

28.5
230.2

32.5
221.3

35.4
215.6

35.6
235.2

41.2
178.3

61.8
339.7
203.2
117.0

123.8
397.0
222.7
144.5

146.5
463.8
279.7
141.6

84.5
396.2
216.0
148.2

123.8
397.0
222.7
144.5

145.1
412.0
247.6
130.1

137.1
445.4
259.3
135.6

144.3
465.5
269.2
138.3

146.5
463.8
279.7
141.6

138.5
501.9
299.7
151.0

979.5

1,150.9

1,302.4

1,077.2

1,150.9

1,193.4

1,231.3

1,268.4

1,302.4

1,310.6

5 LESS; Reserves for unearned income
Reserves for losses
6

LIABILITIES AND CAPITAL
10 Bank loans
11 Commercial paper
12
13
14
15

Debt
Owed to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits

16 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, as they are not on the books.




2. Before deduction for unearned income and losses. Excludes pools of securitized assets,

Securities Market and Corporate Finance
1.52

DOMESTIC FINANCE COMPANIES

A33

Owned and Managed Receivables 1

Billions of dollars, amounts outstanding
2000
Type of credit

1998

1999

2001

2000
Nov.

Dec.

Jan.

Feb.

Mar.r

Apr.

Seasonally adjusted
1 Total
2
3
4

Consumer
Real estate
Business

875.8
352.8
131.4
391.6

993.9
385.3
154.7
453.9

1,145.2
439.3
174.9
531.0

1,136.2

1,145.2

1,156.7

1,159.7

1,158.6

1,171.5

439.8
176.6
519.7

439.3
174.9
531.0

443.8
177.7
535.2

447.1
179.0
533.6

449.8
177.7
531.1

456.3
182.5
532.6

Not seasonally adjusted

5 Total
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
35
36

Consumer
Motor vehicles loans
Motor vehicle leases
Revolving2
Other3
Securitized assets4
Motor vehicle loans
Motor vehicle leases
Revolving
Other
Real estate
One- to four-family
Other
Securitized real estate assets4
One- to four-family
Other
Business
Motor vehicles
Retail loans
Wholesale loans5
Leases
Equipment
Loans
Leases
Other business receivables6
Securitized assets4
Motor vehicles
Retail loans
Wholesale loans
Leases
Equipment
Loans
Leases
Other business receivables6

884.0

1,003.2

1,156.0

1,137.9

1,156.0

1,156.7

1,159.7

1,163.1

1,173.7

356.1
103.1
93.3
32.3
33.1

388.8
114.7
98.3
33.8
33.1

443.4
122.5
102.9
38.3
32.4

441.4
127.8
104.0
38.0
32.0

443.4
122.5
102.9
38.3
32.4

443.9
117.5
103.3
37.1
32.4

445.1
118.5
102.4
36.9
32.0

445.7
118.9
101.3
35.6
31.3

451.0
127.0
101.9
36.0
28.2

54.8
12.7
8.7
18.1
131.4
75.7
26.6

71.1
9.7
10.5
17.7
154.7
88.3
38.3

97.1
6.6
27.5
16.0
174.9
105.4
42.9

91.5
6.8
25.8
15.5
176.6
107.0
42.7

97.1
6.6
27.5
16.0
174.9
105.4
42.9

103.9
6.3
27.6
15.8
177.7
108.2
43.2

105.2
6.9
27.6
15.5
179.0
109.5
43.4

108.1
6.6
27.6
16.2
177.7
108.1
43.8

106.1
7.0
28.8
16.0
182.5
112.3
43.8

29.0
.1
396.5
79.6
28.1
32.8
18.7
198.0
50.4
147.6
69.9

28.0
.2
459.6
87.8
33.2
34.7
19.9
221.9
52.2
169.7
95.5

24.7
1.9
537.7
95.2
31.0
39.6
24.6
267.3
56.2
211.1
108.6

25.0
1.9
519.9
93.3
32.3
37.3
23.8
259.3
54.7
204.6
103.2

24.7
1.9
537.7
95.2
31.0
39.6
24.6
267.3
56.2
211.1
108.6

24.4
1.9
535.1
93.6
30.8
38.2
24.6
265.6
56.3
209.3
110.4

24.2
1.9
535.6
93.6
30.7
37.6
25.3
262.5
55.6
206.9
114.5

23.9
1.9
539.7
91.9
30.5
35.8
25.6
264.6
57.1
207.5
115.2

23.8
2.6
540.2
91.0
29.9
35.3
25.8
267.5
57.1
210.4
113.5

29.2
2.6
24.7
1.9
13.0
6.6
6.4
6.8

31.5
2.9
26.4
2.1
14.6
7.9
6.7
8.4

37.8
3.2
32.5
2.2
23.1
15.5
7.6
5.6

37.0
3.1
31.5
2.4
21.3
14.6
6.7
5.8

37.8
3.2
32.5
2.2
23.1
15.5
7.6
5.6

37.3
3.1
32.1
2.2
22.5
14.7
7.8
5.6

37.2
2.9
31.7
2.6
22.2
14.5
7.8
5.6

40.0
2.8
34.5
2.6
22.5
14.6
7.9
5.6

40.3
3.1
34.6
2.6
22.2
14.4
7.8
5.7

NOTE. This table has been revised to incorporate several changes resulting from the
benchmarking of finance company receivables to the June 1996 Survey of Finance Companies. In that benchmark survey, and in the monthly surveys that have followed, more detailed
breakdowns have been obtained for some components. In addition, previously unavailable
data on securitized real estate loans are now included in this table. The new information has
resulted in some reclassification of receivables among the three major categories (consumer,
real estate, and business) and in discontinuities in some component series between May and
June 1996.
Includes finance company subsidiaries of bank holding companies but not of retailers and
banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For
ordering address, see inside front cover.
1. Owned receivables are those carried on the balance sheet of the institution. Managed
receivables are outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator. Data are shown




before deductions for unearned income and losses. Components may not sum to totals
because of rounding.
2. Excludes revolving credit reported as held by depository institutions that are subsidiaries of finance companies.
3. Includes personal cash loans, mobile home loans, and loans to purchase other types of
consumer goods, such as appliances, apparel, boats, and recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
5. Credit arising from transactions between manufacturers and dealers, that is, floor plan
financing.
6. 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.

A34
1.53

DomesticNonfinancialStatistics • August 2001
MORTGAGE MARKETS

Mortgages on N e w

Homes

Millions of dollars except as noted
2000
Item

1998

1999

2001

2000
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Terms and yields in primary and secondary markets
PRIMARY MARKETS

1
2
3
4
5

Terms'
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-to-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)2

Yield (percent per year)
6 Contract rate1
7 Effective rate1'3
8 Contract rate (HUD series)4

195.2
151.1
80.0
28.4
.89

210.7
161.7
78.7
28.8
.77

234.5
177.0
77.4
29.2
.70

247.2
184.2
76.2
29.2
.69

250.0
187.3
76.5
29.1
.73

238.7
181.6
78.2
29.4
.71

245.0
185.4
77.9
29.0
.70

244.5
182.9
77.2
28.8
.66

240.8
181.5
77.6
28.5
.71

241.4
181.4
77.6
28.6
.69

6.95
7.08
7.00

6.94
7.06
7.45

7.41
7.52
n.a.

7.36
7.47
n.a.

7.29
7.40
n.a.

7.09
7.20
n.a.

6.99
7.10
n.a.

6.94
7.04
n.a.

6.96
7.07
n.a.

7.02
7.12
n.a.

7.04
6.43

7.74
7.03

n.a.
7.57

n.a.
7.22

n.a.
6.83

n.a.
6.57

n.a.
6.61

n.a.
6.41

n.a.
6.53

n.a.
6.61

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

SECONDARY MARKETS

Yield (percent per year)
9 FHA mortgages (Section 203)5
10 GNMA securities6

Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Mortgage holdings (end of period)
1 1Total
FHA/VA insured
12
Conventional
13

414,515
33,770
380,745

523,941
55,318
468,623

610,122
61,539
548,583

598,951
60,694
538,257

610,122
61,539
548,583

623,950
62,970
560,980

632,850
63,337
569,513

14 Mortgage transactions purchased (during period)

188,448

195,210

154,231

17,322

17,193

20,598

17,230

20,899

24,015

16,825

Mortgage commitments (during period)
15 Issued7
16 To sell8

193,795
1,880

187,948
5,900

163,689
11,786

15,287
676

20,120
1,436

27,325
766

25,471
835

n.a.
n.a.

n.a.
n.a.

n.a.
n.a.

Mortgage holdings (end of period f
17 Total
FHA/VA insured
18
Conventional
19

255,010
785
254,225

324,443
1,836
322,607

385,693
3,332
382,361

372,819
3,321
369,498

385,693
3,332
382,361

391,679
3,307
388,372

407,086
3,319
403,767

421,655
3,329
418,326

430,960
2,878
428,082

437,582
2,785
434,797

Mortgage transactions (during period)
20 Purchases
21 Sales

267,402
250,565

239,793
233,031

174,043
166,901

19,402
18,823

24,313
22,277

15,658
15,364

16,536
15,549

24,648
23,367

n.a.
31,219

n.a.
33,670

22 Mortgage commitments contracted (during period)9

281,899

228,432

169,231

20,012

21,780

18,685

17,664

26,682

32,758

39,897

FEDERAL HOME LOAN MORTGAGE CORPORATION

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 "points" 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 rate 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 yield 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 thirty-year 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, whereas the corresponding data for the Federal
National Mortgage Association exclude swap activity.

Real Estate
1.54

A35

MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
2001

2000
Type of holder and property

1997r

1996r

1998r
Ql

Q2

Q3

Q4

Ql

1 All holders

5,198,237

5,698,389

6,326,415

6,426,515

6,592,329

6,744,667

6,889,962

7,016,475

By type of property
2 One- to four-family residences
3 Multifamily residences
4 Nonfarm, nonresidential
5

3,968,218
302,642
837,077
90,300

4,348,553
330,718
922,612
96,506

4,773,876
372,619
1,076,958
102,962

4,832,886
387,188
1,102,565
103,875

4,962,031
390,753
1,133,107
106,437

5,087,538
399,232
1,149,940
107,957

5,193,000
409,216
1,178,909
108,836

5,284,886
418,762
1,202,752
110,075

2,084,000
1,245,334
745,777
50,705
421,865
26,987
631,826
520,782
59,540
51,150
354
206,840
7,187
30,402
158,779
10,472

2,195.869
1,338,273
798,009
54,174
457,054
29,035
643,957
533,895
56,847
52,798
417
213,640
6,590
31,522
164,004
11,524

2,396,265
1,496,844
880,208
67,666
517,130
31,839
668,634
549,046
59,168
59,945
475
230,787
5,934
32,818
179,048
12,987

2,458,194
1,548,224
905,270
72,509
537,772
32,673
680,745
560,018
57,790
62,444
493
229,225
5,567
32,634
178,043
12,981

2,550,201
1,615,794
949,223
75,795
557,059
33,717
701,992
578,612
59,174
63,688
518
232,415
5,237
33,121
180,701
13,356

2,606,592
1,650,294
968,831
77,031
570,513
33,919
721,563
595,518
60,077
65,437
531
234,735
4,907
33,478
182,646
13,704

2,621,076
1,661,600
966,609
77,821
583,153
34,016
723,534
595,053
61,094
66,852
535
235,942
4,904
33,681
183,757
13,600

2,667,125
1,688,869
978,227
79,890
596,518
34,234
741,114
608,289
62,666
69,589
569
237,142
4,800
33,867
184,774
13,701

286,194
8
8
0
41,195
17,253
11,720
7,370
4,852
3,811
1,767
2,044
0
0
0
0
0
724
117
140
467
0
161,308
149,831
11,477
30,657
1,804
0
48,454
42,629
5,825

293,602
7
7
0
40,851
16,895
11,739
7,705
4,513
3,674
1,849
1,825
0
0
0
0
0
361
58
70
233
0
157,675
147,594
10,081
32,983
1,941
0
57,085
49,106
7,979

322,132
7
7
0
73,871
16,506
11,741
41,355
4,268
3,712
1,851
1,861
0
0
0
0
0
152
25
29
98
0
151,500
141,195
10,305
34,187
2,012
0
56,676
44,321
12,355

322,917
7
7
0
72,899
16,456
11,732
40,509
4,202
3,794
1,847
1,947
0
0
0
0
0
98
16
19
63
0
150,312
139,986
10,326
34,142
2,009
0
57,009
43,384
13,625

332,642
7
7
0
72,896
16,435
11,729
40,554
4,179
3,845
1,832
2,013
0
0
0
0
0
72
12
14
46
0
153,507
142,478
11,029
34,830
2,049
0
56,972
42,892
14,080

336,682
6
6
0
73,009
16.444
11,734
40,665
4,167
3,395
1,327
2,068
0
0
0
0
0
82
13
16
53
0
152,815
141,786
11,029
35,549
2,092
0
57,046
42,138
14,908

343,962
6
6
0
73,323
16,372
11,733
41,070
4,148
3,507
1,308
2,199
0
0
0
0
0
45
7
9
29
0
155,363
144,150
11,213
36,326
2,137
0
59,240
42,871
16,369

346,276
6
6
0
73,361
16,297
11,725
41,247
4,093
2,873
1,276
1,597
0
0
0
0
0
50
8
10
32
0
156,294
145,014
11,280
37,072
2,181
0
60,110
42,771
17,339

2,232,848
536,879
523,225
13,654
579,385
576,846
2,539
709,582
687,981
21,601
2
0
0
0
2
407,000
310,659
20,907
75,434
0

2,581,969
537,446
522,498
14,948
646,459
643,465
2,994
834,517
804,204
30,313
1
0
0
0
1
563,546
405,153
33,754
124,639
0

2,947,760
582,263
565,189
17,074
749,081
744,619
4,462
960,883
924,941
35,942
0
0
0
0
0
655,533
455,021
42,226
158,287
0

2,983,365
589,192
571,506
17,686
757,106
752,607
4,499
975,815
932,178
43,637
0
0
0
0
0
661,252
455,623
43,069
162,560
0

3,034,691
590,708
572,661
18,047
768,641
763,890
4,751
995,815
957,584
38,231
0
0
0
0
0
679,527
464,593
44,290
170,644
0

3,115,138
602,628
584,152
18,476
790,891
786,007
4,884
1,020,828
981,206
39,622
0
0
0
0
0
700,792r
477,899
45,991
176,901
0

3.231,195
611,629
592,700
18,929
822,310
816,602
5,708
1,057,750
1,016,398
41,352
0
0
0
0
0
739,506
499,834
49,322
190,350
0

3,305,311
601,540
581,760
19,780
833,616
827,769
5,847
1,099,049
1,055,412
43,637
0
0
0
0
0
771,106
523,300
50,639
197,167
0

595,195
382,315
72,088
122,013
18,779

626,949
416,335
74,462
116,178
19,974

660,258
441,205
76,740
121,095
21,217

662,039
442,006
77,466
121,174
21,393

674,794
454,314
78,179
120,415
21,886

686,254
470,762
79,587
113,725
22,179

693,729
478,118
79,566
113,697
22,348

697,763
481,485
80,268
113,424
22,586

By type of holder
6 Major financial institutions
Commercial banks2
7
8
One- to four-family
Multifamily
9
10
Nonfarm, nonresidential
Farm
11
12
Savings institutions^
13
One- to four-family
14
Multifamily
Nonfarm, nonresidential
1.5
16
Farm
Life insurance companies
17
18
One- to four-family
19
Multifamily
20
Nonfarm, nonresidential
21
Farm
22 Federal and related agencies
23
Government National Mortgage Association
24
One- to four-family
25
Multifamily
26
Farmers Home Administration4
One- to four-family
27
28
Multifamily
29
Nonfarm, nonresidential
30
Farm
31
Federal Housing and Veterans' Administrations
32
One- to four-family
Multifamily
33
34
Resolution Trust Corporation
35
One- to four-family
Multifamily
36
37
Nonfarm, nonresidential
38
Farm
Federal Deposit Insurance Corporation
39
40
One- to four-family
41
Multifamily
Nonfarm, nonresidential
42
43
Farm
Federal National Mortgage Association
44
45
One- to four-family
Multifamily
46
47
Federal Land Banks
48
One- to four-family
49
Farm
50
Federal Home Loan Mortgage Corporation
51
One- to four-family
52
Multifamily
53 Mortgage pools or trusts5
54
Government National Mortgage Association
One- to four-family
55
Multifamily
56
57
Federal Home Loan Mortgage Corporation
58
One- to four-family
59
Multifamily
Federal National Mortgage Association
60
61
One- to four-family
Multifamily
62
Farmers Home Administration4
63
64
One- to four-family
Multifamily
65
66
Nonfarm, nonresidential
Farm
67
68
Private mortgage conduits
69
One- to four-family 6
Multifamily
70
Nonfarm, nonresidential
71
Farm
72
73 Individuals and others7
74
One- to four-family
Multifamily
75
76
Nonfarm, nonresidential
77
Farm

1. 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:Q4 because of accounting
changes by the Farmers Home Administration.
5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by
the agency indicated.




6. Includes securitized home equity loans.
7. Other holders include mortgage companies, real estate investment trusts, state and local
credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and
finance companies.
SOURCE. Based on data from various institutional and government sources. Separation of
nonfarm mortgage debt by type of property, if not reported directly, and interpolations and
extrapolations, when required for some quarters, are estimated in part by the Federal Reserve.
Line 69 from Inside Mortgage Securities and other sources.

A36
1.55

DomesticNonfinancialStatistics • August 2001
CONSUMER

CREDIT1

Millions of dollars, amounts outstanding, end of period

2000
Holder and type of credit

2001

2000r

1998

Nov.

Dec.'

Jan.'

Feb.'

Mar.'

Apr.

Seasonally adjusted
1 Total

1,301,023

2 Revolving
3 Nonrevolving2

560,504
740,519

1,393,657
595,610
798,047

1,531,469

l,525,073 r

1,531,469

1,548,486

1,562,937

1,570,368

1,584,329

663,830
867,639

r

663,830
867,639

669,780
878,706

681,384
881,553

688,166
882,203

697,360
886,970

660,992
864,08 l r

Not seasonally adjusted
1,331,742

1,426,151

1,566,457

l,532,836 r

1,566,457

1,560,357

1,558,086

1,557,971

1,570,179

By major holder
5 Commercial banks
6 Finance companies
V Credit unions
8 Savings institutions
9 Nonfinancial business
10 Pools of securitized assets3

508,932
168,491
155,406
51,611
74,877
372,425

499,758
181,573
167,921
61,527
80,311
435,061

541,470
193,189
184,434
64,557
82,662
500,145

529,91 l r
197,759
183,772
63,879r
73,786
483,729

541,470
193,189
184,434
64,557
82,662
500,145

539,796
187,029
184,120
64,667
77,685
507,060

535,137
187,493
183,548
64,777
73,020
514,111

534,545
185,874
182,918
64,887
71,757
517,990

540,781
191,161
184,248
64,950
71,510
517,529

By major type of credit4
11 Revolving
12
Commercial banks
13
Finance companies
14
Credit unions
15
Savings institutions
16
Nonfinancial business
17
Pools of securitized assets3

586,528
210,346
32,309
19,930
12,450
39,166
272,327

623,245
189,352
33,814
20,641
15,838
42,783
320,817

693,645
218,063
38,251
22,226
16,560
42,430
356,114

664,463'
206,121
37,956
21,656
16,482'
36,430
345,817

693,645
218,063
38,251
22,226
16,560
42,430
356,114

681,812
211,006
37,098
21,714
16,701
38,934
356,359

682,143
208,192
36,938
21,415
16,842
35,290
363,466

681,139
208,924
35,626
20,902
16,983
34,150
364,554

690,146
215,185
36,044
21,103
16,975
33,815
367,024

18 Nonrevolving
19
Commercial banks
20
Finance companies
21
Credit unions
22
Savings institutions
23
Nonfinancial business
24
Pools of securitized assets3

745,214
298,586
136,182
135,476
39,161
35,711
100,098

802,906
310,406
147,759
147,280
45,689
37,528
114,244

872,812
323,407
154,938
162,208
47,997
40,232
144,031

868,373'
323,789'
159,803
162,116
47,397'
37,356
137,912

872,812
323,407
154,938
162,208
47,997
40,232
144,031

878,545
328,790
149,931
162,406
47,966
38,750
150,701

875,943
326,945
150,555
162,133
47,935
37,729
150,645

876,832
325,621
150,249
162,016
47,904
37,607
153,436

880,033
325,597
155,117
163,145
47,975
37,694
150,506

4 Total

1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals, excluding loans secured by real estate. Data in this table also appear
in the Board's G.19 (421) monthly statistical release. For ordering address, see inside front
cover.
2. Comprises motor vehicle loans, mobile home loans, and all other loans that are not
included in revolving credit, such as loans for education, boats, trailers, or vacations. These
loans may be secured or unsecured.

1.56

TERMS OF CONSUMER

3. Outstanding balances of pools upon which securities have been issued; these balances
are no longer carried on the balance sheets of the loan originator.
4. Totals include estimates for certain holders for which only consumer credit totals are
available.

CREDIT1

Percent per year except as noted
2000
Item

1998

1999

2001

2000
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

INTEREST RATES

Commercial banks2
1 48-month new car
2 24-month personal

8.72
13.74

8.44
13.39

9.34
13.90

n.a.
n.a.

9.63
14.12

n.a.
n.a.

n.a.
n.a.

9.17
13.71

n.a.
n.a.

n.a.
n.a.

Credit card plan
3 All accounts
4 Accounts assessed interest

15.71
15.59

15.21
14.81

15.71
14.91

n.a.
n.a.

15.99
15.23

n.a.
n.a.

n.a.
n.a.

15.66
14.61

n.a.
n.a.

n.a.
n.a.

Auto finance companies
5 New car
6 Used car

6.30
12.64

6.66
12.60

6.61
13.55

4.74
13.87

5.41
13.66

7.45
13.58

7.29
13.11

7.19
13.34

6.80
13.19

6.80
12.82

52.1
53.5

52.7
55.9

54.9
57.0

57.6
57.0

57.3
56.8

55.2
56.6

54.3
57.8

55.5
58.0

55.6
58.0

56.3
57.9

92
99

92
99

92
99

93
100

93
100

91
100

90
98

91
99

91
100

91
100

19,083
12,691

19,880
13,642

20,923
14,058

22,069
13,978

22,443
14,325

21,867
14,591

21,315
14,155

21,993
14,095

22,131
14,214

21,914
14,347

OTHER TERMS3
Maturity (months)
7 New car
8 Used car
Loan-to-value ratio
9 New car
10 Used car
Amount financed (dollars)
11 New car
12 Used car

1. The Board's series on amounts of credit covers most short- and intermediate-term credit
extended to individuals. 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,

Flow of Funds
1.57

A37

FUNDS RAISED IN U.S. CREDIT MARKETS 1
Billions of dollars; quarterly data at seasonally adjusted annual rates

1995

2001

2000

1999
Transaction category or sector

1996
Q3

Q4

Ql

Q2

Q3

Q4

Ql

Nonfinancial sectors
1 Total net borrowing by domestic nonfinancial sectors . . .

711.1

731.3

804.6

1,011.4

1,088.8

1,150.9

1,051.9

917.1

952.3

752.2

829.1

965.5

By sector and instrument
7 Federal government
3 Treasury securities
4
Budget agency securities and mortgages

144.4
142.9
1.5

145.0
146.6
-1.6

23.1
23.2
-.1

-52.6
-54.6
2.0

-71.2
-71.0
-.2

-68.9
-68.9
.0

-34.0
-34.0
.0

-215.5
-213.5
-2.1

-414.0
-415.8
1.8

-219.5
-217.1
-2.4

-334.5
-333.3
-1.2

-10.8
-8.6
-2.2

5 Nonfederal

566.7

586.3

781.5

1,064.0

1,160.0

1,219.8

1,085.9

1,132.6

1,366.2

971.8

1,163.5

976.3

18.1
-48.2
91.1
103.7
67.2
195.8
181.0
6.1
7.1
1.6
138.9

-.9
2.6
116.3
70.5
33.5
275.7
242.1
9.0
22.0
2.6
88.8

13.7
71.4
150.5
106.5
69.1
317.7
252.3
8.2
54.1
3.2
52.5

24.4
96.8
218.7
108.2
74.3
474.0
379.7
19.9
68.2
6.2
67.6

37.4
68.2
229.9
82.7
60.6
586.9
426.1
39.6
115.6
5.5
94.4

49.8
71.3
202.8
112.3
74.0
633.4
473.6
40.6
112.2
7.0
76.2

44.0
52.5
155.2
108.6
39.7
576.3
391.3
51.0
131.6
2.5
109.5

29.8
8.9
186.2
131.9
155.6
475.0
336.5
28.8
102.3
7.3
145.3

110.4
34.0
153.8
163.1
126.6
640.4
482.4
43.9
104.3
9.7
137.9

56.1
29.8
184.4
31.7
-10.1
557.4
428.4
29.5
93.2
6.2
122.5

-4.0
68.6
175.6
86.5
145.1
568.1
413.5
40.3
110.6
3.7
123.7

-207.2
94.3
400.0
-11.3
-8.9
553.8
406.3
40.8
101.5
5.1
155.6

363.5
254.7
227.5
24.3
2.9
-51.5

357.8
235.3
149.1
81.4
4.8
-6.8

337.1
388.2
266.5
115.6
6.2
56.1

472.1
511.7
392.0
112.0
7.7
80.3

532.4
575.3
454.7
115.3
5.2
52.3

574.8
592.6
452.5
131.6
8.5
52.5

492.2
560.1
421.9
132.7
5.6
33.6

516.2
612.7
480.8
116.5
15.4
3.8

632.7
712.7
578.5
125.1
9.1
20.8

550.5
397.6
282.3
109.3
6.0
23.6

565.2
537.9
407.5
116.5
13.9
60.4

559.9
326.5
231.8
85.7
9.1
89.9

78.5
13.5
57.1
8.5
-.5

88.4
11.3
67.0
9.1
1.0

71.8
3.7
61.4
8.5
-1.8

43.3
7.8
34.8
6.7
-6.0

25.3
16.3
14.2
.5
-5.7

77.3
41.1
44.0
-6.6
-1.1

17.6
33.6
-2.7
2.3
-15.5

118.0
57.8
45.7
15.4
-.9

-7.6
12.0
-27.4
5.7
2.0

89.3
7.0
71.8
11.9
-1.5

66.3
50.1
9.2
12.2
-5.2

-27.0
-25.4
-1.4
10.3
-10.5

789.6

819.7

876.3

1,054.7

1,114.1

1,228.2

1,069.5

1,035.1

944.6

841.5

895.4

938.4

6
7
8
9
in
11
1?
n
14
IS
16

By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Multifamily residential
Commercial
Consumer credit
By borrowing sector

17
18
IP
20
71
22

Nonfinancial business
Coiporate
Nonfarm noncorporate
Farm
State and local government

23 Foreign net borrowing in United States
24
Commercial paper
?5
Bonds
?6
Bank loans n.e.c
27
Other loans and advances
28 Total domestic plus foreign

Financial sectors
29 Total net borrowing by financial sectors
30
31
32
33
34
35
36
37
38
39
40
41
4?
43
44
45
46
47
48
49
50
51

By instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government
Open market paper
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
By borrowing sector
Commercial banking
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Brokers and dealers
Funding corporations




454.0

545.7

653.8

1,073.9

1,077.2

1,059.1

1,047.6

586.4

819.3

725.5

1,075.9

893.6

204.2
105.9
98.3
.0

231.4
90.4
141.0
.0

212.9
98.4
114.6
.0

470.9
278.3
192.6
.0

592.0
318.2
273.8
.0

651.6
407.1
244.5
.0

550.1
367.9
182.2
.0

248.6
104.9
143.7
.0

370.4
248.9
121.6
.0

503.4
278.1
225.3
.0

612.1
304.8
307.3
.0

461.1
264.1
197.0
.0

249.8
42.7
195.9
2.5
3.4
5.3

314.4
92.2
173.8
12.6
27.9
7.9

440.9
166.7
210.5
13.2
35.6
14.9

603.0
161.0
296.9
30.1
90.2
24.8

485.3
176.2
211.1
-14.3
107.1
5.1

407.5
89.9
174.4
-5.9
139.8
9.4

497.4
479.0
-36.6
-55.6
107.5
3.2

337.8
130.9
135.1
.3
64.4
7.0

448.9
77.4
233.0
5.4
123.1
10.0

222.1
65.2
188.3
-.7
-36.7
6.0

463.8
237.5
211.6
-6.2
19.1
1.8

432.5
-119.5
456.8
23.6
79.2
-7.5

22.5
2.6
-.1
-.1
105.9
98.3
142.4
50.2
-2.2
4.5
-5.0
34.9

13.0
25.5
.1
1.1
90.4
141.0
150.8
45.9
4.1
11.9
-2.0
64.1

46.1
19.7
.1
.2
98.4
114.6
202.2
48.7
-4.6
39.6
8.1
80.7

72.9
52.2
.6
.7
278.3
192.6
321.4
43.0
1.6
62.7
7.2
40.7

67.2
48.0
2.2
.7
318.2
273.8
223.4
62.4
.2
6.3
-17.2
92.2

107.0
51.9
2.8
1.1
407.1
244.5
215.4
-17.2
-6.1
7.9
17.8
27.0

54.1
5.8
3.3
-4.4
367.9
182.2
108.6
99.2
6.2
11.3
-37.3
250.6

72.4
40.6
-2.9
-.7
104.9
143.7
134.6
52.3
-3.0
11.5
44.4
-11.4

113.2
59.1
.9
-1.1
248.9
121.6
157.1
103.9
2.7
9.8
-.7
4.0

23.5
-23.4
1.1
-.3
278.1
225.3
148.0
96.9
-.3
-2.4
25.4
-46.4

30.8
32.7
1.0
-.7
304.8
307.3
311.3
45.6
1.0
-8.1
-6.6
56.8

138.4
40.8
-.2
-2.4
264.1
197.0
277.0
-43.8
.7
-6.1
-23.9
51.8

A38
1.57

DomesticNonfinancialStatistics • August 2001
F U N D S R A I S E D I N U.S. C R E D I T

MARKETS'—Continued

Billions of dollars; quarterly data at seasonally adjusted annual rates

1999
Transaction category or sector

1995

1996

1997

1998

2000

2001

1999
Q3

Q4

Q1

Q2

Q3

Q4

Q1

All sectors
52 Total net borrowing, all sectors
53
54
55
56
57
58
59
60

Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit

1,243.7

1,365.4

1,530.1

2,128.6

2,191.3

2,287.4

2,117.1

1,621.5

1,763.9

1,567.0

1,971.3

1,832.1

74.3
348.6
-48.2
344.1
114.7
70.1
201.1
138.9

102.6
376.4
2.6
357.0
92.1
62.5
283.5
88.8

184.1
236.0
71.4
422.4
128.2
102.8
332.6
52.5

193.1
418.3
96.8
550.4
145.0
158.5
498.8
67.6

229.9
520.7
68.2
455.2
68.9
162.0
592.0
94.4

180.7
582.7
71.3
421.2
99.8
212.8
642.7
76.2

556.6
516.1
52.5
115.9
55.2
131.7
579.5
109.5

218.4
33.0
8.9
367.0
147.7
219.2
482.0
145.3

199.8
-43.5
34.0
359.5
174.2
251.7
650.4
137.9

128.4
283.8
29.8
444.6
42.9
-48.3
563.4
122.5

283.6
277.6
68.6
396.4
92.5
159.0
569.9
123.7

-352.1
450.3
94.3
855.4
22.6
59.7
546.3
155.6

Funds raised through mutual funds and corporate equities
61 Total net issues
62 Corporate equities
63
Nonfinancial corporations
64
Foreign shares purchased by U.S. residents
65
Financial corporations
66 Mutual fund shares

131.7

231.7

181.2

101.6

161.6

129.6

178.1

366.3

142.4

170.9

-170.9

127.4

-15.7
-58.3
50.4
-7.8
147.4

-5.9
-69.5
82.8
-19.2
237.6

-83.9
-114.4
57.6
-27.1
265.1

-173.0
-267.0
101.2
-7.3
274.6

-26.7
-143.5
114.4
2.4
188.3

2.2
-128.4
121.7
8.8
127.5

5.2
-55.0
71.3
-11.1
172.8

60.2
61.2
63.3
-64.2
306.1

-95.2
-245.2
180.1
-30.2
237.6

-88.9
-87.7
61.1
-62.3
259.8

-342.0
-394.8
90.5
-37.8
171.1

22.7
-33.9
79.8
-23.2
104.7

1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables
F.2 through F.4. For ordering address, see inside front cover.




Flow of Funds
1.58

A3 9

SUMMARY OF FINANCIAL TRANSACTIONS 1
Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates

1995

1996

1997

1998

2001

2000

1999
Transaction category or sector

1999
Q3

Q4

Ql

Q2

Q3

Q4

Ql

NET LENDING IN CREDIT MARKETS 2

1 Total net lending in credit markets
? Domestic nonfederal nonfinancial sectors
Household
4
Nonfinancial corporate business
Nonfarm noncorporate business
6
State and local governments
7 Federal government
8
9
Monetary authority
10
Commercial banking
11
U.S.-chartered banks
1?
Foreign banking offices in United States
n
Bank holding companies
14
Banks in U.S.-affiliated areas
IS;
16
17
18
Bank personal trusts and estates
19 Life insurance companies
?0
Other insurance companies
Private pension funds
?1
77
State and local government retirement funds
Money market mutual funds
n
74
Mutual funds
Closed-end funds
75
Government-sponsored enterprises
?6
Federally related mortgage pools
77
Asset-backed securities issuers (ABSs)
78
79
Finance companies
Mortgage companies
30
31
Real estate investment trusts (REITs)
37
Funding corporations
33

1,243.7

1,365.4

1,530.1

2,128.6

2,191.3

2,287.4

2,117.1

1,621.5

1,763.9

1,567.0

1,971.3

1,832.1

-65.7
29.7
-8.8
4.7
-91.4
-.5
273.9
1,036.0
12.7
265.9
186.5
75.4
-.3
4.2
-7.6
16.2
-8.3
100.0
21.5
19.9
38.3
86.5
52.5
10.5
86.7
98.3
120.6
49.9
-3.4
1.4
90.1
-15.7

81.0
129.3
-10.2
-4.3
-33.7
-7.2
414.4
877.1
12.3
187.5
119.6
63.3
3.9
.7
19.9
25.5
-7.7
69.6
22.5
-4.1
35.8
88.8
48.9
4.7
84.2
141.0
120.5
18.4
8.2
4.4
-15.7
12.6

-17.3
-2.6
-12.7
-2.1
.1
5.1
311.3
1,231.0
38.3
324.3
274.9
40.2
5.4
3.7
-4.7
16.8
-25.0
104.8
25.2
47.6
67.1
87.5
80.9
-2.6
94.3
114.6
163.8
21.9
-9.1
20.2
14.9
50.4

106.3
-12.2
-16.0
.1
134.5
13.5
254.2
1,754.5
21.1
305.2
312.0
-11.9
-.9
6.0
36.1
19.0
-12.8
76.9
20.4
56.4
72.1
244.0
124.8
5.5
261.7
192.6
281.7
51.9
3.2
-5.1
6.8
-6.9

231.5
189.4
-2.8
1.5
43.4
5.8
210.6
1,743.4
25.7
308.2
317.6
-20.1
6.2
4.4
68.6
27.5
27.8
53.5
-4.2
45.0
46.9
182.0
47.2
6.9
235.5
273.8
205.2
94.9
.3
-2.6
-34.7
135.9

202.7
238.4
5.8
.8
-42.4
11.2
385.3
1,688.2
20.6
449.4
421.9
33.2
-12.4
6.6
58.1
27.5
27.8
36.8
-14.4
5.9
40.0
224.8
-13.0
6.9
275.9
244.5
206.9
91.7
-12.1
-2.7
-6.7
20.3

-41.2
2.7
-47.6
1.4
2.4
-11.7
138.7
2,031.3
-42.2
548.7
457.7
42.0
42.6
6.3
20.2
18.8
27.8
30.7
-9.4
49.8
46.2
354.5
-12.7
6.9
225.3
182.2
78.8
114.4
12.3
-7.0
-30.5
416.5

-148.2
-224.5
71.5
2.6
2.3
6.5
325.9
1,437.2
103.4
377.1
409.2
4.8
-42.2
5.4
56.3
35.6
18.9
51.3
-14.0
46.8
63.3
208.8
-77.8
-8.8
138.2
143.7
114.0
132.9
-6.0
-16.3
96.6
-26.6

120.8
61.8
14.9
2.8
41.4
7.7
207.1
1,428.4
-3.9
484.6
505.6
-29.9
3.5
5.4
71.2
36.6
13.8
50.9
-18.1
24.7
31.5
-156.2
63.7
-8.8
222.3
121.6
122.6
138.9
5.5
-2.5
58.6
171.6

-236.9
-218.5
-3.2
3.8
-19.0
4.5
205.6
1,593.8
27.3
369.3
332.8
30.9
-6.7
12.3
58.2
28.5
17.6
81.5
6.0
68.9
1.1
244.9
46.3
-8.8
158.9
225.3
112.8
81.4
-.5
-3.6
181.4
-102.9

-212.5
-233.3
-35.5
4.3
52.1
10.2
381.1
1,792.4
7.9
203.8
111.6
90.4
-3.2
5.1
40.1
25.0
18.1
73.1
-4.0
28.7
80.6
297.9
74.4
-8.8
302.8
307.3
282.4
44.3
2.0
-2.8
-61.0
80.5

-261.2
-279.3
10.3
4.4
3.4
6.1
112.4
1,974.7
55.0
108.4
63.9
40.7
7.3
-3.6
50.5
39.0
10.7
71.9
16.3
35.7
58.8
357.7
56.4
-8.8
289.9
197.0
257.0
-16.7
1.4
4.0
284.1
106.1

1,243.7

1,365.4

1,530.1

2,128.6

2,191.3

2,287.4

2,117.1

1,621.5

1,763.9

1,567.0

1,971.3

1,832.1

8.8
2.2
.7
35.3
10.0
-12.8
96.6
65.6
141.2
110.5
-15.7
147.4
127.5
26.7
45.8
158.8
6.2
6.4
36.5
505.4

-6.3
-.5
.5
85.9
-51.6
15.7
97.2
114.0
145.4
41.4
-5.9
237.6
113.5
52.4
44.5
148.3
16.2
-5.3
-11.9
532.1

.7
-.5
.5
108.9
-19.7
41.2
97.1
122.5
155.9
120.9
-83.9
265.1
132.1
111.0
59.3
201.4
15.7
-49.9
-50.2
487.5

6.6
.0
.6
2.0
-32.3
47.4
152.4
92.1
287.2
91.3
-173.0
274.6
96.0
103.3
48.0
202.1
12.0
-42.5
-50.0
936.5

-8.7
-3.0
1.0
86.5
17.6
151.4
44.7
130.6
249.1
169.7
-26.7
188.3
207.3
104.3
50.8
184.5
16.1
-7.1
-10.8
654.6

-8.5
-4.0
2.0
69.4
-30.8
139.3
119.1
102.7
174.3
191.4
2.2
127.5
257.9
29.7
48.1
191.7
.4
-7.2
-59.6
499.0

-7.0
-4.0
.0
52.7
-40.7
365.2
28.0
359.4
485.5
310.5
5.2
172.8
219.1
321.3
57.6
164.0
18.3
-6.9
7.0
518.4

1.5
.0
2.2
258.5
-64.7
-219.1
104.3
149.2
241.0
257.4
60.2
306.1
211.8
489.9
54.9
212.7
22.7
-5.9
-20.7
962.3

-8.8
-8.0
3.2
8.5
150.3
-65.0
130.3
108.4
48.2
156.8
-95.2
237.6
122.6
-86.2
45.6
262.7
29.9
-10.6
-3.6
1,194.5

.7
-4.0
4.2
-16.0
-148.6
49.2
238.5
141.5
241.9
238.6
-88.9
259.8
135.1
102.2
35.9
197.4
-10.7
-6.6
31.6
1,210.2

4.9
-4.0
.0
192.7
-17.2
-50.2
290.8
75.3
402.2
-209.3
-342.0
171.1
87.1
57.9
65.4
188.7
27.1
-5.5
-2.6
673.5

-10.5
.0
-1.1
40.0
-168.8
83.8
287.6
125.7
623.0
-44.4
22.7
104.7
88.8
-118.8
40.5
273.0
24.5
-14.1
-5.4
590.5

2,746.6

2,928.8

3,245.7

4,182.8

4,391.3

4,131.7

5,143.8

4,645.7

3,985.3

4,178.9

3,577.4

3,773.5

-.3
25.1
25.7
21.1
-208.4

-.4
59.6
-3.3
2.4
23.1
-137.2

-.2
107.4
-19.9
63.2
28.0
-148.6

-.1
-13.0
3.4
60.4
13.9
-207.7

-.7
71.3
3.5
29.9
3.6
-436.0

.2
26.4
-7.0
131.1
3.0
-540.7

-2.2
114.4
-23.7
-225.4
-4.9
-319.1

-1.8
211.5
24.4
560.7
7.9
-437.9

-.7
-77.1
-4.3
56.8
5.7
-323.0

.9
-75.0
-18.3
104.9
-20.1
-49.2

-3.3
160.0
68.6
-286.4
32.3
-189.1

-2.5
17.3
16.4
-87.3
17.4
160.3

-6.0
-3.8
14.1

.5
-4.0
-21.9

-2.7
-3.9
-28.5

2.6
-3.1
-44.6

-7.4
-.8
57.5

8.6
-.3
79.3

-9.2
.0
185.5

28.7
.6
-19.9

-2.6
1.5
-47.8

-2.0
1.9
-41.0

11.9
2.7
41.6

-10.7
3.3
-1.9

2,882.3

3,010.1

3,250.9

4,371.1

4,670.4

4,431.1

5,428.4

4,271.7

4,377.0

4,276.9

3,739.1

3,661.2

RELATION OF LIABILITIES
TO FINANCIAL ASSETS

34 Net flows through credit markets
35
36
37
38
39
40
41
47

43
44
45
46
47
48
49
50
51
57
53
54

Other financial sources
Official foreign exchange
Special drawing rights certificates
Treasury currency
Foreign deposits
Net interbank transactions
Checkable deposits and currency
Small time and savings deposits
Large time deposits
Security repurchase agreements
Corporate equities
Mutual fund shares
Trade payables
Life insurance reserves
Taxes payable
Investment in bank personal trusts
Noncorporate proprietors' equity
Miscellaneous

55 Total financial sources
56
57
58
59
60
61

Liabilities not identified as assets (—)
Treasury currency
Foreign deposits
Net interbank liabilities
Security repurchase agreements
Taxes payable
Miscellaneous

Floats not included in assets ( - )
62 Federal government checkable deposits
63 Other checkable deposits
64 Trade credit
65 Total identified to sectors as assets

-3.1

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
F.l and F.5. For ordering address, see inside front cover.




2. Excludes corporate equities and mutual fund shares.

A40
1.59

DomesticNonfinancialStatistics • August 2001
S U M M A R Y OF CREDIT MARKET DEBT OUTSTANDING1
Billions of dollars, end of period

1999

2000

2001

1999
Q3

Q4

Qi

Q2

Q3

Q4

QI

Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors
By sector and instrument
2 Federal government
3
Treasury securities
4
Budget agency securities and mortgages
5 Nonfederal

14,443.7

15,246.8

16,258.2

17381.6

17,052.5

17381.6

17,609.4

17,784.7

17,984.2

18,263.4

18306.5

3,781.8
3,755.1
26.6

3,804.9
3,778.3
26.5

3,752.2
3,723.7
28.5

3,681.0
3,652.8
28.3

3,633.4
3,605.1
28.3

3,681.0
3,652.8
28.3

3,653.5
3,625.8
27.8

3,464.0
3,435.7
28.2

3,410.2
3,382.6
27.6

3,385.2
3,357.8
27.3

3,408.8
3,382.1
26.8

10,662.0

11,441.9

12,505.9

13,700.6

13,419.1

13,700.6

13,955.9

14,320.7

14,574.0

14,878.2

15,097.6

6
/
8
9
10
11
12
13
14
15
16

By instrument
Commercial paper
Municipal securities and loans
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Home
Multifamily residential
Commercial
Farm
Consumer credit

156.4
1,296.0
1,460.4
934.1
770.4
4,833.1
3,719.0
278.4
748.6
87.1
1,211.6

168.6
1,367.5
1,610.9
1,040.5
839.5
5,150.8
3,971.3
286.6
802.6
90.3
1,264.1

193.0
1,464.3
1,829.6
1,148.8
913.8
5,624.8
4,351.0
306.5
870.8
96.5
1,331.7

230.3
1,532.5
2,059.5
1,231.5
974.6
6,246.1
4,777.1
346.4
1,020.5
102.0
1,426.2

239.3
1,518.6
2,020.7
1,202.9
963.1
6,104.5
4,681.8
333.6
987.6
101.4
1,370.1

230.3
1,532.5
2,059.5
1,231.5
974.6
6,246.1
4,777.1
346.4
1,020.5
102.0
1,426.2

260.8
1,539.2
2,106.0
1,259.1
1,020.1
6,354.7
4,851.1
353.6
1,046.1
103.9
1,416.0

296.8
1,551.6
2,144.5
1,307.2
1,049.5
6,517.1
4,974.1
364.6
1,072.2
106.3
1,454.0

307.0
1,550.3
2,190.6
1,311.6
1,052.2
6,667.1
5,091.8
371.9
1,095.5
107.8
1,495.3

278.4
1,567.8
2,234.5
1,334.8
1,090.0
6,806.3
5,192.4
382.0
1,123.1
108.8
1,566.5

253.2
1,596.6
2,334.5
1,326.2
1,094.6
6,934.7
5,283.9
392.2
1,148.5
110.0
1,558.0

17
18
19
20
21
22

By borrowing sector
Household
Nonfinancial business
Corporate
Nonfarm noncorporate
Farm
State and local government

5,222.5
4,376.1
3,095.3
1,130.9
149.9
1,063.4

5,559.9
4,762.5
3,359.9
1,246.5
156.1
1,119.5

6,032.0
5,274.2
3,751.9
1,358.4
163.8
1,199.8

6,564.6
5,883.9
4,241.0
1,473.8
169.0
1,252.1

6,413.2
5,763.5
4,154.7
1,440.2
168.6
1,242.4

6,564.6
5,883.9
4,241.0
1,473.8
169.0
1,252.1

6,632.7
6,065.9
4,392.5
1,503.2
170.3
1,257.3

6,800.2
6,254.8
4,544.7
1,534.5
175.7
1,265.7

6,968.6
6,342.3
4,603.7
1,561.1
177.5
1,263.1

7,149.9
6,449.1
4,678.3
1,590.6
180.2
1,279.3

7,227.6
6,563.5
4,771.4
1,612.3
179.8
1,306.5

23 Foreign credit market debt held in
United States

542.2

608.0

651.4

676.9

672.9

676.9

704.6

699.3

727.8

743.4

736.6

24
25
26
27

67.5
366.3
43.7
64.7

65.1
427.7
52.1
63.0

72.9
462.5
58.9
57.2

89.2
476.7
59.4
51.7

81.8
477.4
58.8
55.0

89.2
476.7
59.4
51.7

101.6
488.1
63.3
51.7

101.2
481.3
64.7
52.1

109.8
499.2
67.7
51.2

120.9
501.5
70.7
50.3

112.8
501.2
73.3
49.4

14,985.9

15,854.7

16,909.6

18,058.6

17,725.4

18,058.6

18314.0

18,484.0

18,712.0

19,006.8

19,243.1

Commercial paper
Bonds
Bank loans n.e.c
Other loans and advances

28 Total credit market debt owed by nonfinancial
sectors, domestic and foreign

Financial sectors
29 Total credit market debt owed by
financial sectors

4,824.5

5,445.2

6,519.1

7,596.3

7340.1

7,596.3

7,725.8

7,946.3

8,140.2

8,410.0

8,616.4

30
31
32
33
34
35
36
37
38
39

By instrument
Federal government-related
Government-sponsored enterprise securities
Mortgage pool securities
Loans from U.S. government
Private
Open market paper
Corporate bonds
Bank loans n.e.c
Other loans and advances
Mortgages

2,608.2
896.9
1,711.3
.0
2,216.3
579.1
1,378.4
64.0
162.9
31.9

2,821.1
995.3
1,825.8
.0
2,624.1
745.7
1,555.9
77.2
198.5
46.8

3,292.0
1,273.6
2,018.4
.0
3,227.1
906.7
1,852.8
107.2
288.7
71.6

3,884.0
1,591.7
2,292.2
.0
3,712.4
1,082.9
2,064.0
92.9
395.8
76.7

3,745.9
1,499.8
2,246.1
.0
3,594.2
963.4
2,084.3
105.2
365.4
75.9

3,884.0
1,591.7
2,292.2
.0
3,712.4
1,082.9
2,064.0
92.9
395.8
76.7

3,940.1
1,618.0
2,322.1
.0
3,785.7
1,115.7
2,095.7
91.4
404.4
78.5

4,035.3
1,680.2
2,355.2
.0
3,911.0
1,135.2
2,165.2
92.7
436.9
81.0

4,164.0
1,749.7
2,414.3
.0
3,976.1
1,151.6
2,219.4
92.5
430.2
82.5

4,317.6
1,825.9
2,491.7
.0
4,092.5
1,210.7
2,267.9
92.6
438.3
82.9

4,426.1
1,891.9
2,534.2
.0
4,190.2
1,180.8
2,380.6
96.8
450.9
81.1

40
41
42
43
44
45
46
47
48
49
50
51
52

By borrowing sector
Commercial banks
Bank holding companies
Savings institutions
Credit unions
Life insurance companies
Government-sponsored enterprises
Federally related mortgage pools
Issuers of asset-backed securities (ABSs)
Brokers and dealers
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Funding corporations

113.6
150.0
140.5
.4
1.6
896.9
1,711.3
863.3
27.3
529.8
20.6
56.5
312.7

140.6
168.6
160.3
.6
1.8
995.3
1,825.8
1,076.6
35.3
554.5
16.0
96.1
373.7

188.6
193.5
212.4
1.1
2.5
1,273.6
2,018.4
1,398.0
42.5
597.5
17.7
158.8
414.4

230.0
219.3
260.4
3.4
3.2
1,591.7
2,292.2
1,621.4
25.3
659.9
17.8
165.1
506.6

224.2
211.8
255.4
2.5
4.3
1,499.8
2,246.1
1,592.4
34.6
628.5
16.3
162.2
462.0

230.0
219.3
260.4
3.4
3.2
1,591.7
2,292.2
1,621.4
25.3
659.9
17.8
165.1
506.6

242.2
221.4
266.9
2.6
3.0
1,618.0
2,322.1
1,647.3
36.4
670.7
17.1
167.9
510.1

265.4
229.3
280.7
2.9
2.7
1,680.2
2,355.2
1,688.5
36.2
699.2
17.8
170.4
517.9

265.2
236.9
276.0
3.1
2.7
1,749.7
2,414.3
1,733.8
42.6
716.5
17.7
169.8
511.9

266.7
242.5
287.7
3.4
2.5
1,825.9
2,491.7
1,821.1
40.9
734.6
17.9
167.8
507.3

273.9
266.0
294.8
3.3
1.9
1,891.9
2,534.2
1,882.4
35.0
721.4
18.1
166.2
527.2

All sectors

53 Total credit market debt, domestic and foreign . . .
54
55
56
5/
58
59
60
61

Open market paper
U.S. government securities
Municipal securities
Corporate and foreign bonds
Bank loans n.e.c
Other loans and advances
Mortgages
Consumer credit

19,810.4

21300.0

23,428.7

25,654.9

25,065.5

25,654.9

26,039.8

26,430.3

26,852.2

27,416.8

27,859.5

803.0
6,389.9
1,296.0
3,205.1
1,041.7
998.0
4,865.1
1,211.6

979.4
6,626.0
1,367.5
3,594.5
1,169.8
1,101.0
5,197.7
1,264.1

1,172.6
7,044.3
1,464.3
4,144.9
1,314.9
1,259.6
5,696.4
1,331.7

1,402.4
7,565.0
1,532.5
4,600.1
1,383.8
1,422.1
6,322.8
1,426.2

1,284.5
7,379.2
1,518.6
4,582.4
1,366.9
1,383.4
6,180.4
1,370.1

1,402.4
7,565.0
1,532.5
4,600.1
1,383.8
1,422.1
6,322.8
1,426.2

1,478.1
7,593.6
1,539.2
4,689.8
1,413.7
1,476.2
6,433.2
1,416.0

1,533.3
7,499.3
1,551.6
4,791.0
1,464.6
1,538.5
6,598.1
1,454.0

1,568.3
7,574.2
1,550.3
4,909.2
1,471.7
1,533.6
6,749.5
1,495.3

1,610.0
7,702.7
1,567.8
5,003.9
1,498.1
1,578.6
6,889.2
1,566.5

1,546.8
7,834.9
1,596.6
5,216.2
1,496.3
1,594.9
7,015.7
1,558.0

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.




1.60

Flow of Funds

A41

2000

2001

SUMMARY OF FINANCIAL ASSETS AND LIABILITIES 1
Billions of dollars except as noted, end of period
1999
Transaction category or sector

1996

1997

1998

1999
Q3

Q4

25,065.5

25,654.9

Ql

Q2

Q3

Q4

Ql

26,430.3

26,852.2

27,416.8

27,859.5
3,146.6
2,075.2
226.9
41.9
802.5
268.3
2,990.0
21,454.6
523.9
5,016.7
4,425.1
514.9
22.3
54.4
1,101.0
391.3
241.8
1,969.2
528.1
827.1
810.2
1,403.8
1,113.5
100.0
1,677.3
2,534.2
1,650.9
809.3
36.2
37.6
312.3
370.1

CREDIT MARKET DEBT OUTSTANDING2
1 Total credit market assets

19,810.4

21,300.0

23,428.7

25,654.9

26,039.8

3,035.0
2,122.0
270.2
38.0
604.8
200.2
1,926.6
14,648.6
393.1
3,707.7
3,175.8
475.8
22.0
34.1
933.2
288.5
232.0
1,657.0
491.2
627.0
565.4
634.3
820.2
101.1
807.9
1,711.3
773.9
544.5
41.2
30.4
167.7
121.0

2,974.0
2,075.7
257.5
35.9
605.0
205.4
2,257.3
15,863.2
431.4
4,031.9
3,450.7
516.1
27.4
37.8
928.5
305.3
207.0
1,751.1
515.3
674.6
632.5
721.9
901.1
98.5
902.2
1,825.8
937.7
566.4
32.1
50.6
182.6
166.7

3,052.0
2,035.1
241.5
35.9
739.4
219.1
2,539.8
17,617.7
452.5
4,335.7
3,761.2
504.2
26.5
43.8
964.6
324.2
194.1
1,828.0
535.7
731.0
704.6
965.9
1,025.9
104.0
1,163.9
2,018.4
1,219.4
618.4
35.3
45.5
189.4
161.3

3,353.6
2,294.6
238.7
37.5
782.8
258.0
2,678.0
19,365.3
478.1
4,643.9
4,078.9
484.1
32.7
48.3
1,033.2
351.7
222.0
1,886.0
531.6
775.9
751.4
1,147.8
1,073.1
110.9
1,399.5
2,292.2
1,424.6
713.3
35.6
42.9
154.7
296.8

3,239.7
2,185.6
235.1
37.1
781.9
260.7
2,718.1
18,846.9
489.3
4,488.3
3,944.3
475.3
22.0
46.7
1,030.5
348.5
215.0
1,880.4
533.9
763.5
739.9
1,049.7
1,083.0
109.2
1,339.1
2,246.1
1,403.1
678.2
32.5
44.7
166.8
205.3

3,353.6
2,294.6
238.7
37.5
782.8
258.0
2,678.0
19,365.3
478.1
4,643.9
4,078.9
484.1
32.7
48.3
1,033.2
351.7
222.0
1,886.0
531.6
775.9
751.4
1,147.8
1,073.1
110.9
1,399.5
2,292.2
1,424.6
713.3
35.6
42.9
154.7
296.8

3,285.6
2,232.4
232.1
38.1
782.9
259.6
2,763.6
19,731.0
501.9
4,725.0
4,171.3
482.0
22.1
49.6
1,045.8
359.0
226.7
1,900.1
528.0
787.6
767.2
1,217.1
1,053.7
108.7
1,426.4
2,322.1
1,445.4
747.0
34.1
38.8
194.6
301.8

3,289.4
2,217.2
237.6
38.8
795.8
261.6
2,812.8
20,066.5
505.1
4,847.4
4,295.4
478.1
23.0
51.0
1,062.5
370.8
230.2
1,911.6
523.5
793.8
775.1
1,159.4
1,073.9
106.5
1,483.5
2,355.2
1,477.9
780.6
35.5
38.2
187.9
348.0

3,236.4
2,167.2
240.7
39.8
788.7
262.7
2,864.7
20,488.4
511.5
4,931.0
4,368.2
487.5
21.3
54.0
1,082.2
378.6
234.6
1,933.7
525.0
811.0
775.4
1,212.5
1,088.1
104.4
1,532.5
2,414.3
1,514.5
795.5
35.4
37.3
243.3
327.7

3,246.4
2,152.9
250.6
40.8
802.0
265.2
2,957.9
20,947.3
511.8
5,002.6
4,418.7
508.1
20.5
55.3
1,089.7
383.1
239.1
1,950.2
524.0
818.2
795.5
1,296.7
1,099.7
102.2
1,612.1
2,491.7
1,594.5
812.6
35.9
36.6
223.6
327.5

19,810.4

21,300.0

23,428.7

25,654.9

25,065.5

25,654.9

26,039.8

26,430.3

26,852.2

27,416.8

27,859.5

53.7
9.7
18.9
521.7
240.8
1,244.8
2,377.0
590.9
886.7
701.5
2,342.4
358.1
610.6
6,325.1
1,809.3
123.8
871.3
6,349.1

48.9
9.2
19.3
619.7
219.4
1,286.1
2,474.1
713.4
1,042.5
822.4
2,989.4
469.1
665.0
7,323.4
1,941.4
139.5
942.5
6,670.6

60.1
9.2
19.9
639.0
189.0
1,333.4
2,626.5
805.5
1,329.7
913.7
3,610.5
572.3
718.3
8,193.7
2,037.4
151.5
1,001.0
7,332.7

50.1
6.2
20.9
725.8
204.5
1,484.8
2,671.2
936.1
1,578.8
1,083.4
4,553.4
676.6
783.9
9,041.7
2,244.6
167.6
1,130.4
7,788.5

52.1
7.2
20.9
712.3
199.6
1,353.8
2,665.9
837.5
1,444.9
999.4
3,931.5
593.1
756.2
8,363.7
2,169.9
167.5
1,019.0
7,465.5

50.1
6.2
20.9
725.8
204.5
1,484.8
2,671.2
936.1
1,578.8
1,083.4
4,553.4
676.6
783.9
9,041.7
2,244.6
167.6
1,130.4
7,788.5

49.4
6.2
21.4
790.4
169.7
1,392.9
2,728.0
966.5
1,666.0
1,149.2
4,863.3
795.4
801.0
9,237.9
2,271.1
181.0
1,163.0
7,981.8

46.5
4.2
22.1
792.6
210.6
1,409.7
2,738.8
987.4
1,627.1
1,185.0
4,759.6
775.5
806.5
9,166.7
2,302.3
180.0
1,124.1
8,254.0

44.9
3.2
23.2
788.6
173.2
1,385.7
2,790.9
1,025.9
1,697.8
1,238.7
4,815.0
800.4
815.5
9,308.4
2,342.9
182.9
1,122.3
8,701.5

45.3
2.2
23.2
836.7
188.2
1,413.5
2,862.2
1,054.7
1,812.1
1,194.3
4,456.3
817.6
819.4
9,054.1
2,383.8
184.8
1,039.0
8,905.8

42.2
2.2
22.9
846.7
121.8
1,384.1
2,965.4
1,078.3
1,994.7
1.197.5
4.030.6
784.5
817.0
8,590.3
2,379.5
198.6
949.2
8,963.0

53 Total liabilities

45,245.6

49,695.6

54,972.1

60,803.4

57,825.5

60,803.4

62,274.0

62,823.2

64,113.0

64,510.0

64,228.1

Financial assets not included in liabilities (+)
5 4 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncoiporate business

21.4
10,255.8
3,889.2

21.1
13,201.3
4,162.6

21.6
15,492.5
4,428.4

21.4
19,494.5
4,736.4

21.3
16,106.8
4,647.8

21.4
19,494.5
4,736.4

21.4
20,147.2
4,763.1

21.5
19,179.6
4,809.4

21.4
18,990.4
4,865.0

21.6
17,026.1
4,944.9

21.4
14,878.4
5.056.0

-6.1
437.0
-10.6
109.8
76.9
-1,448.9

-6.3
538.3
-32.2
172.9
92.6
-1,785.7

-6.4
541.6
-27.0
233.4
102.0
-2,468.4

-7.1
613.3
-25.5
263.3
95.6
-3,079.3

-6.6
584.3
-13.2
323.7
96.5
-3,143.7

-7.1
613.3
-25.5
263.3
95.6
-3,079.3

-7.6
666.1
-13.9
410.1
89.6
-3,250.3

-7.9
646.9
-11.6
422.6
103.0
-3,319.2

-7.6
628.1
-17.6
447.7
92.5
-3,099.3

-8.5
668.1
-4.1
372.2
96.9
-3,282.3

-9.1
682.1
1.3
370.8
87.2
-3,530.1

-1.6
30.1
171.8

-8.1
26.2
133.5

-3.9
23.1
90.0

-9.9
22.3
148.9

-10.2
14.5
29.3

-9.9
22.3
148.9

-6.5
18.7
89.2

-5.2
22.5
54.3

-7.8
15.5
43.4

-3.0
24.0
128.1

-22.3
21.1
76.3

60,053.7

67,949.4

76,430.1

87,034.2

80,726.8

87,034.2

89,210.1

88,928.3

89,894.8

88,511.2

86,506.7

? Domestic nonfederal nonfinancial sectors
4
5
A

Nonfinancial corporate business
Nonfarm noncorporate business
State and local governments

7
8
9
10
11

P
N

14
15
16

17
18
19
70
71
77
73
74
76

77
78
79
30
31
37
33

Foreign banking offices in United States
Bank holding companies
Banks in U.S.-affiliated areas
Savings institutions
Bank personal trusts and estates
Life insurance companies
Other insurance companies
State and local government retirement funds
Money market mutual funds
Government-sponsored enterprises
Federally related mortgage pools
Asset-backed securities issuers (ABSs)
Finance companies
Mortgage companies
Real estate investment trusts (REITs)
Funding corporations
RELATION OF LIABILITIES
TO FINANCIAL ASSETS

34 Total credit market debt
Other liabilities
35 Official foreign exchange
36 Special drawing rights certificates
37
38
39 Net interbank liabilities
40 Checkable deposits and currency
41 Small time and savings deposits
47 Large time deposits
4 3 Money market fund shares
44 Security repurchase agreements
45
46
47
48
49
50

51 Investment in bank personal trusts
52 Miscellaneous

57
58
59
60
61
62

Liabilities not identified as assets ( - )
Treasury currency
Foreign deposits
Net interbank transactions
Security repurchase agreements
Miscellaneous

Floats not included in assets ( - )
63 Federal government checkable deposits
64 Other checkable deposits
65 Trade credit
66 Total identified to sectors as assets

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables
L.l and L.5. For ordering address, see inside front cover.




2. Excludes corporate equities and mutual fund shares.

A42
2.10

Domestic Nonfinancial Statistics • August 2001
NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

Monthly data seasonally adjusted, and indexes 1 9 9 2 = 1 0 0 , except as noted

2000
Measure

1 Industrial production'

1998

1999

2001

2000
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.r

Mar.r

Apr.

May p

134.0

139.6

147.5

149.0

148.7

148.2

147.3

146.0

145.4

145.1

144.2

143.1

127.2
129.3
118.4
147.1
121.0
145.7

131.2
133.3
120.8
153.8
125.1
154.5

136.2
138.8
123.0
166.1
128.7
167.8

136.7
139.3
123.8
168.3
128.6
171.3

136.3
138.8
122.7
169.1
128.7
171.1

136.3
138.8
122.4
169.9
128.5
169.9

136.0
139.0
123.1
168.9
126.8
167.8

135.0
137.8
121.8
168.0
126.7
165.9

134.6
137.7
122.3
166.2
125.5
165.0

134.7
138.0
122.5
167.1
124.6
163.9

133.7
136.9
121.7
165.1
124.1
163.2

132.7
135.9
120.8
164.1
123.3
161.8

138.2

144.8

153.6

155.1

154.9

154.1

152.6

151.3

150.7

150.1

149.1

148.1

81.3

80.5

81.3

81.7

81.2

80.5

79.3

78.4

77.9

77.4

76.7

76.0

10 Construction contracts3

122.6

135.l r

142.l r

143.0

151.0

143.0

140.0r

152.0

148.0

138.0

142.0

139.0

11 Nonagricultural employment, total4
12
Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production workers
15
Service-producing
16 Personal income, total
Wages and salary disbursements
17
18
Manufacturing
19
Disposable personal income5
20 Retail sales5

123.5
103.0
99.0
100.0
130.0
186.5
184.6
152.3
182.7
178.4

126.3
103.3
97.6
98.4
133.7
196.6
196.9
157.4
191.9
194.7

128.9
104.0
97.0
97.6
136.8
209.0
210.1
164.2
202.0
210.0

129. 5r
104.1'
97.0r
97.0r
137.6r
212.5
212.7
165.1
205.2
212.7

129.6r
104.2r
96.9r
96.9r
137.7r
212.1
214.0
166.6
204.4
212.5

129.7r
104.2r
96.8r
96.6r
137.9r
212.5
214.6
166.9
204.6
211.3

129.8r
104.1r
96.6r
96.2r
138.0r
213.5
215.2
165.5
205.5
211.6

129.91
103.9
96. r
95.7r
138.2r
214.8
216.8
165.8
206.6r
214.4

130.1
103.9
95.8
95.1
138.4
215.9
218.3
166.2
207.6
213.9

130.1
103.8
95.4
94.6
138.5
216.9
219.4
166.4
208.6
213.2

129.9
103.0
94.8
93.9
138.5
217.4
220.1
165.8
209.1
214.9

129.9
102.6
94.1
93.1
138.6
217.8
220.5
164.9
209.5
n.a.

Prices6
21 Consumer (1982-84=100)
22 Producer finished goods (1982=100)

163.0
130.7

166.6
133.0

172.2
138.0

173.7
139.4

174.0
140.1

174.1
140.0

174.0
139.7

175.1
141.2

175.8
141.5

176.2
141.0

176.9
141.7

177.7
142.5

2
3
4
5
6
7
8

Market groups
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials
Industry groups
Manufacturing

9 Capacity utilization, manufacturing (percent)". .

1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in December 2000. The recent annual revision is described in an article in the
March 2001 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see "Industrial Production and Capacity Utilization:
Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserx'e 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, U.S. Department of Commerce, and other sources.

2.11

L A B O R FORCE, EMPLOYMENT, A N D

3. Index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge
Division.
4. Based on data from the 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.
6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price
indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics,
Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series
mentioned in notes 3 and 6, can also be found in the Survey of Current Business.

UNEMPLOYMENT

Thousands of persons; monthly data seasonally adjusted
2000r
Category

1998

1999

2001

2000
Oct.

Nov.

Dec.

Jan.r

Feb/

Mar/

Apr/

May

HOUSEHOLD SURVEY DATA1
1 Civilian labor force2
Employment
7
3
Agriculture
Unemployment
4
Rate (percent of civilian labor force)
5

137,673

139,368

140,863

141,000

141,136

141,489

141,955

141,751

141,868

141,757

141,272

128,085
3,378

130,207
3,281

131,903
3,305

132,223
3,241

132,302
3,176

132,562
3,274

132,819
3,179

132,680
3,135

132,618
3,161

132,162
3,192

131,910
3,193

6,210
4.5

5,880
4.2

5,655
4.0

5,536
3.9

5.658
4.0

5,653
4.0

5,956
4.2

5,936
4.2

6,088
4.3

6,402
4.5

6,169
4.4

125,865

128,786

131,417

132,145

132,279

132,367

132,428

132,595

132,654

132,472

132,453

18,805
590
6,020
6,611
29.095
7,389
37,533
19,823

18,543
535
6,404
6,826
29,712
7,569
39,027
20,170

18,437
538
6,687
6,993
30,191
7,618
40,384
20,570

18,404
551
6,758
7,076
30,439
7,569
40,767
20,581

18,382
548
6,781
7,093
30,465
7,575
40,845
20,590

18,349
548
6,791
7,108
30,474
7,582
40,901
20,614

18,257
550
6,826
7,106
30,482
7,594
40,984
20,629

18,192
555
6,880
7,123
30,536
7,609
41,020
20,680

18,116
557
6,929
7,127
30,523
7,618
41.073
20,711

18,003
560
6,851
7,119
30,572
7,626
40,995
20,746

17,879
564
6,882
7,131
30,553
7,648
41,037
20,759

ESTABLISHMENT SURVEY DATA
6 Nonagricultural payroll employment4
7
8
9
10
II

12
13
14

Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government

1. Beginning January 1994, reflects redesign of current population survey and population
controls from the 1990 census.
2. 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.
3. Includes self-employed, unpaid family, and domestic service workers.




4. 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 1992 benchmark, and only seasonally adjusted data are available at this
time.
SOURCE. Based on data from U.S. Department of Labor, Employment and Earnings.

Selected Measures
2.12

A43

OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1
Seasonally adjusted

2000

2001

2001

2000

2001

2000

Series
Q2

Q3

Qlr

Q4

Output (1992=100)

Q2

Q4

Q3

Ql

Capacity (percent of 1992 output)

Q2

Q3

Q4

Q! r

Capacity utilization rate (percent) 2

1 Total industry

147.1

148.4

148.1

145.5

178.1

180.1

182.1

183.7

82.6

82.4

81.3

79.2

2 Manufacturing

153.0

154.4

153.8

150.7

186.9

189.2

191.5

193.5

81.9

81.7

80.3

77.9

Primary processing 3
Advanced processing 4

178.6
139.0

180.3
140.3

178.7
140.2

172.6
138.5

206.9
174.1

211.2
175.2

216.0
176.2

220.0
177.2

86.4
79.8

85.4
80.1

82.7
79.5

78.4
78.2

Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment

192.9
120.3
137.0
136.1
138.2
249.4
535.1
175.9

196.7
117.0
133.4
130.5
137.0
257.3
581.1
170.8

196.5
113.2
127.5
121.5
134.7
261.9
604.0
159.7

191.6
109.6
121.0
114.9
128.3
256.3
593.7
147.5

233.3
147.5
153.3
153.1
153.4
304.5
591.7
208.2

238.3
147.9
153.4
153.4
153.4
311.1
639.1
209.2

243.6
148.4
153.5
153.6
153.4
317.3
694.1
210.1

248.1
148.7
153.5
153.6
153.5
322.5
741.7
210.9

82.7
81.6
89.4
88.9
90.1
81.9
90.4
84.5

82.5
79.1
87.0
85.1
89.3
82.7
90.9
81.7

80.7
76.3
83.1
79.1
87.8
82.5
87.1
76.0

77.2
73.7
78.8
74.8
83.6
79.5
80.1
69.9

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

20 Mining
?1 Utilities
22
Electric
1973
High

92.9

93.5

94.8

94.0

130.7

130.4

130.2

130.0

71.1

71.7

72.8

72.3

116.7
103.3
117.9
125.8
140.9
118.3

116.2
99.8
114.0
125.4
137.6
117.3

115.3
94.7
114.9
124.5
131.0
116.0

113.6
92.8
110.8
121.9
130.9
115.5

144.1
123.9
137.2
163.0
151.6
123.2

144.4
123.3
137.5
164.1
151.9
123.2

144.6
122.8
137.9
164.8
152.3
123.1

144.7
122.0
138.3
165.0
152.7
123.1

80.9
83.4
85.9
77.2
93.0
96.0

80.5
80.9
82.9
76.4
90.5
95.3

79.7
77.1
83.3
75.5
86.0
94.3

78.5
76.1
80.1
73.9
85.7
93.8

100.0
120.7
124.3

100.6
121.0
123.9

100.3
123.7
127.5

101.8
122.9
125.4

116.5
132.3
130.9

116.3
133.4
132.3

115.8
134.5
133.8

115.3
135.7
135.3

85.8
91.2
94.9

86.6
90.7
93.7

86.6
92.0
95.3

88.2
90.6
92.7

1975

Previous cycle 5

Mar.r

Apr.

May p

77.4

Low

High

Low

Latest cycle 6
High

Low

2000
May

2001
Dec.

Jan.

Feb.

r

Capacity utilization rate (percent) 2
1 Total industry

89.2

72.6

87.3

71.1

85.4

78.1

82.7

80.6

79.7

79.2

78.8

78.2

2 Manufacturing

88.5

70.5

86.9

69.0

85.7

76.6

81.9

79.3

78.4

77.9

77.4

76.7

76.0

91.2
87.2

68.2
71.8

88.1
86.7

66.2
70.4

88.9
84.2

77.7
76.1

86.4
79.9

80.9
79.0

79.2
78.6

78.6
78.1

77.5
77.9

77.0
77.1

76.3
76.5

Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Industrial machinery and
equipment
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment

89.2
88.7
100.2
105.8
90.8

68.9
61.2
65.9
66.6
59.8

87.7
87.9
94.2
95.8
91.1

63.9
60.8
45.1
37.0
60.1

84.6
93.6
92.7
95.2
89.3

73.1
75.5
73.7
71.8
74.2

82.7
81.7
89.2
88.8
89.9

79.5
75.0
82.2
77.2
88.2

77.9
72.9
80.7
75.5
86.9

77.0
73.3
79.0
75.2
83.6

76.8
74.8
76.7
73.8
80.2

75.8
74.3
78.0
76.2
80.1

75.2
75.2
76.1
74.3
78.4

96.0
89.2
93.4

74.3
64.7
51.3

93.2
89.4
95.0

64.0
71.6
45.5

85.4
84.0
89.1

72.3
75.0
55.9

82.0
90.2
85.3

82.1
85.5
72.1

80.5
82.9
65.8

79.1
80.0
69.9

78.9
77.3
74.1

77.1
74.8
73.5

75.8
73.0
75.2

78.4

67.6

81.9

66.6

87.3

79.2

70.6

73.3

72.5

71.9

72.5

72.3

72.2

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

87.8
91.4
97.1
87.6
102.0
96.7

71.7
60.0
69.2
69.7
50.6
81.1

87.5
91.2
96.1
84.6
90.9
90.0

76.4
72.3
80.6
69.9
63.4
66.8

87.3
90.4
93.5
86.2
97.0
88.5

80.7
77.7
85.0
79.3
74.8
85.1

80.9
82.8
84.9
77.5
93.9
96.5

78.9
77.1
81.7
74.5
79.8
93.2

78.8
76.0
81.0
73.8
83.9
93.5

78.8
76.0
81.6
74.3
88.2
94.6

77.9
76.2
77.8
73.4
85.0
93.4

77.7
75.7
81.9
72.1
83.3
94.6

76.9
75.4
80.4
71.2
81.8
93.3

94.3
96.2
99.0

88.2
82.9
82.7

96.0
89.1
88.2

80.3
75.9
78.9

88.0
92.6
95.0

87.0
83.4
87.1

85.4
91.9
95.7

86.1
95.7
97.7

87.5
91.7
94.0

87.9
89.8
91.6

89.3
90.3
92.4

89.3
89.1
92.0

89.0
87.3
89.2

3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Primary processing 3
Advanced processing 4

20 Mining
71 Utilities
Electric
22

1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in December 2000. The recent annual revision is described in an article in the
March 2001 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see "Industrial Production and Capacity Utilization:
Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted
index of industrial production to the corresponding index of capacity.




3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic
materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass;
primary metals; and fabricated metals.
4. Advanced processing includes foods, tobacco, apparel, furniture and fixtures, printing
and publishing, chemical products such as drugs and toiletries, agricultural chemicals, leather
and products, machinery, transportation equipment, instruments, and miscellaneous manufactures.
5. Monthly highs, 1978-80; monthly lows, 1982.
6. Monthly highs, 1988-89; monthly lows, 1990-91.

A44
2.13

Domestic Nonfinancial Statistics • August 2001
INDUSTRIAL PRODUCTION

Indexes and Gross Value1

Monthly data seasonally adjusted

Group

1992
proportion

2000

2001

2000
avg.
May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb/

Mar/

Apr.

May p

Index (1992= 100)
MAJOR MARKETS

1 Total index

100.0

147.5

147.2

147.9

147.6

148.6

149.0

148.7

148.2

147.3

146.0

145.4

145.1

144.2

143.1

2 Products
3
Final products
4
Consumer goods, total
Durable consumer goods
5
6
Automotive products
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied goods . . . .
11
Other
12
Appliances, televisions, and air
conditioners
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

60.5
46.3
29.1
6.1
2.6
1.7
.9
.7
.9
3.5

136.2
138.8
123.0
160.8
153.2
166.9
114.0
221.6
131.7
167.1

135.5
137.5
123.5
163.8
157.9
175.7
119.7
233.7
130.6
168.5

136.0
138.3
124.2
164.4
157.8
174.8
118.1
233.2
131.6
169.8

135.8
138.1
122.9
158.7
149.4
160.5
113.6
209.8
131.6
166.7

136.6
139.2
123.8
160.0
153.8
169.8
120.3
221.8
129.1
165.2

136.7
139.3
123.8
162.8
156.7
172.7
120.5
227.1
132.1
167.7

136.3
138.8
122.7
157.3
148.0
159.1
107.8
212.0
130.2
165.4

136.3
138.8
122.4
154.3
143.6
153.0
103.0
204.3
128.2
163.7

136.0
139.0
123.1
153.4
140.7
144.1
94.3
194.7
133.8
164.7

135.0
137.8
121.8
148.9
133.8
136.2
99.4
175.5
128.4
162.7

134.6
137.7
122.3
150.8
138.2
143.5
100.3
188.6
128.7
162.2

134.7
138.0
122.5
153.7
145.2
154.9
104.0
207.1
129.4
161.0

133.7
136.9
121.7
152.9
144.5
154.9
102.7
208.2
127.9
160.1

132.7
135.9
120.8
154.6
148.7
162.4
105.2
220.3
127.4
159.2

1.0
.8
1.6
23.0
10.3
2.4
4.5
2.9
2.9
.8
2.1

332.6
129.7
120.4
114.2
110.7
85.0
137.0
111.1
116.3
113.0
117.9

334.6
130.8
121.6
114.1
110.3
86.8
138.5
109.0
116.0
113.1
117.1

348.2
130.1
120.5
114.8
110.8
85.1
139.3
111.6
117.0
113.4
118.5

322.3
131.5
121.3
114.5
111.0
85.6
137.4
112.4
114.9
112.6
115.6

325.0
128.6
119.7
115.2
111.4
84.2
139.4
112.4
117.1
113.1
119.0

340.5
131.9
118.1
114.7
110.5
83.1
138.4
112.4
118.4
115.8
119.1

332.5
129.8
117.5
114.5
110.4
82.7
139.0
113.8
115.5
113.0
116.2

332.7
125.4
117.1
114.6
110.7
83.2
138.5
112.5
117.3
115.5
117.6

341.7
127.4
115.5
115.7
110.1
82.4
139.0
112.2
126.1
112.3
134.5

332.0
123.9
116.5
114.9
110.3
82.6
139.1
113.7
119.0
112.0
122.8

322.5
128.2
115.4
115.3
110.7
82.8
141.5
111.1
119.2
114.7
121.3

319.2
127.1
115.0
114.9
110.0
82.4
141.5
110.4
119.6
113.7
122.6

321.0
124.7
114.3
114.1
109.4
81.3
139.2
111.5
118.8
116.1
119.7

320.5
122.1
114.6
112.7
108.6
80.6
136.6
109.9
116.8
114.2
117.6

23
24
25
26
27
28
29
30
31
32
33

Equipment
Business equipment
Information processing and related
Computer and office equipment
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes

17.2
13.2
5.4
1.1
4.0
2.5
1.2
1.3
3.3
.6
.2

166.1
194.2
312.2
1,157.6
144.6
127.7
145.6
145.7
76.2
131.8
116.2

163.1
191.6
302.5
1,087.8
143.4
129.0
153.9
145.8
75.5
130.3
122.9

164.3
192.8
307.0
1,130.8
143.8
130.1
152.9
142.8
76.3
130.8
121.9

166.3
195.0
313.9
1,182.8
144.4
127.6
141.5
148.1
77.9
136.2
116.8

167.9
197.8
322.1
1,229.0
147.7
126.8
142.8
144.8
76.1
137.1
115.5

168.3
199.5
327.2
1,264.1
146.5
127.7
144.2
149.3
73.7
132.8
109.3

169.1
200.0
332.3
1,286.4
146.9
121.6
131.4
154.2
75.3
136.5
98.8

169.9
200.6
336.7
1,305.0
147.4
121.8
130.4
148.6
77.0
138.9
90.9

168.9
199.2
335.9
1,318.3
145.8
117.4
122.0
153.5
77.5
139.1
83.5

168.0
197.4
337.4
1,310.6
145.7
111.7
115.6
149.3
78.5
146.7
73.5

166.2
195.3
330.6
1,307.0
141.4
114.4
120.9
153.9
76.7
147.9
81.9

167.1
195.9
328.2
1,304.3
142.0
117.8
129.0
153.6
78.0
150.7
83.2

165.1
193.1
326.5
1,299.1
138.9
116.6
126.6
148.4
78.1
151.2
81.0

164.1
191.7
323.1
1,291.3
136.6
117.8
130.0
148.2
78.0
152.6
82.0

34
35
36

Intermediate products, total
Construction supplies
Business supplies

14.2
5.3
8.9

128.7
143.2
120.1

129.4
143.1
121.3

129.0
143.4
120.5

128.7
143.8
119.8

128.8
142.7
120.6

128.6
143.1
120.0

128.7
142.3
120.7

128.5
141.6
120.7

126.8
140.6
118.5

126.7
140.7
118.4

125.5
139.9
117.0

124.6
140.7
115.1

124.1
139.2
115.1

123.3
138.8
114.1

37 Materials
Durable goods materials
38
Durable consumer parts
39
40
Equipment parts
41
Other
42
Basic metal materials
43
Nondurable goods materials
44
Textile materials
Paper materials
45
46
Chemical materials
47
Other
Energy materials
48
49
Primary energy
Converted fuel materials
50

39.5
20.8
4.0
7.6
9.2
3.1
8.9
1.1
1.8
3.9
9.7
6.3
3.3

167.8
227.6
165.3
478.3
134.6
128.7
113.8
97.9
115.8
117.0
113.0
103.4
98.1
114.3

168.4
227.6
169.9
466.8
135.9
130.8
115.7
100.9
117.5
119.8
112.4
103.3
98.3
113.7

169.4
230.3
165.7
486.2
135.9
130.7
115.2
101.7
118.1
118.4
112.3
103.1
98.4
112.4

169.0
230.5
158.3
499.9
135.3
128.5
113.9
97.9
114.9
117.0
113.7
102.9
98.7
110.8

170.5
233.8
168.3
505.7
134.7
127.5
112.8
99.3
112.8
116.8
110.2
104.2
98.9
115.1

171.3
235.7
169.0
512.1
135.5
129.2
112.7
95.9
113.8
116.3
112.0
104.3
98.5
116.6

171.1
235.0
168.5
515.9
133.7
125.9
113.4
94.0
117.2
115.9
114.0
103.9
97.8
117.2

169.9
232.9
161.8
521.4
131.8
124.4
110.7
89.5
113.4
113.7
111.9
105.4
99.3
118.7

167.8
230.3
157.6
522.3
129.6
123.6
108.6
90.3
109.4
109.8
113.9
104.5
98.6
117.3

165.9
226.6
146.1
517.5
130.1
121.2
107.5
91.0
110.3
108.5
111.0
104.4
100.3
111.8

165.0
225.2
149.9
514.9
127.2
118.3
107.2
87.7
112.4
108.2
110.2
103.9
99.3
113.1

163.9
223.7
152.1
509.5
125.8
114.8
104.6
87.5
106.0
105.9
109.0
105.0
100.3
114.0

163.2
221.8
151.6
501.0
125.3
116.2
105.8
87.6
111.0
104.9
112.8
104.3
100.2
111.8

161.8
220.1
151.6
497.3
123.9
113.2
104.6
86.2
109.7
103.8
111.5
103.4
99.5
110.2

97.1
95.1

147.2
146.3

146.7
145.8

147.5
146.5

147.5
146.9

148.4
147.4

148.7
147.7

148.8
147.8

148.4
147.7

147.8
147.2

146.6
146.5

145.9
145.4

145.2
144.6

144.4
143.7

143.0
142.4

98.2
27.4
26.2

140.4
120.6
123.9

140.4
120.7
124.4

141.0
121.5
125.0

140.5
120.9
123.9

141.4
121.3
124.5

141.6
121.2
124.4

141.2
120.7
123.6

140.8
120.6
122.9

139.9
121.9
122.5

138.6
120.8
122.0

138.1
121.1
122.6

137.8
120.7
122.7

137.0
119.9
122.0

135.9
118.5
121.2

12.0

200.1

196.1

197.6

201.5

204.5

206.3

208.5

209.4

208.9

207.7

204.6

204.2

201.4

199.2

12.1
29.8

158.4
188.5

157.3
189.3

157.6
190.7

158.6
190.3

160.3
191.8

161.2
193.0

161.2
192.8

161.5
190.4

159.9
187.8

158.4
185.1

156.5
184.1

157.1
182.1

154.7
181.4

153.5
179.9

2.1

SPECIAL AGGREGATES
51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts
53 Total excluding computer and office
equipment
54 Consumer goods excluding autos and trucks .
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding computer and
office equipment
58 Materials excluding energy




Selected Measures
2.13

INDUSTRIAL PRODUCTION

A45

Indexes and Gross Value 1 —Continued

Monthly data seasonally adjusted

Group

SICZ
code

1992
proportion

2000
avg.
May

June

July

Aug.

Sept.

Oct.

Feb.r

Nov.

Mar.r

Apr.

Mayp

Index (1992=100)
MAJOR INDUSTRIES

100.0

147.5

147.2

147.9

147.6

148.6

149.0

148.7

148.2

147.3

146.0

145.4

145.1

144.2

143.1

60 Manufacturing
61 Primary processing
62 Advanced processing

85.4
26.5
58.9

153.6
178.0
139.3

153.1
178.7
139.1

153.8
180.1
139.4

153.7
179.4
139.5

154.6
180.3
140.5

155.1
181.2
140.8

154.9
181.1
140.5

154.1
178.8
140.5

152.6
176.1
139.6

151.3
173.5
139.0

150.7
173.1
138.4

150.1
171.3
138.3

149.1
170.9
137.1

148.1
169.7
136.1

63
64
65
66

45.0
2.0
1.4

193.4
118.3
142.9

193.0
120.5
143.0

194.6
118.7
141.9

194.7
118.6
142.6

196.9
115.5
143.8

198.4
116.8
146.6

197.6
114.8
147.2

196.7
113.2
145.0

195.1
111.5
145.3

192.3
108.3
144.1

191.1
109.1
143.8

191.4
111.3
143.3

189.7
110.6
141.1

188.8
112.1
139.2

2.1
3.1
1.7
.1
1.4
5.0

134.7
133.7
131.1
120.9
136.8
135.6

134.2
136.7
135.9
127.1
137.9
136.2

134.6
136.4
135.5
128.2
137.6
135.7

136.3
133.9
129.9
126.4
138.8
136.1

136.1
132.4
129.7
123.9
135.7
136.3

136.5
133.9
131.9
117.7
136.5
136.0

137.3
129.0
123.7
115.6
135.3
136.0

134.6
127.3
122.0
106.3
133.6
134.7

132.4
126.3
118.7
104.6
135.2
132.9

135.2
124.0
116.0
108.3
133.4
133.5

134.3
121.3
115.5
109.1
128.2
130.3

134.0
117.8
113.3
109.2
123.2
129.8

132.5
119.7
116.9
101.3
123.1
129.0

132.9
116.8
113.8
100.3
120.5
128.6

79
80

Durable goods
"24
Lumber and products
Furniture and fixtures
25
Stone, clay, and glass
32
products
33
Primary metals
331,2
Iron and steel
Raw steel
331PT
333-6,9
Nonfeirous
34
Fabricated metal products . .
Industrial machinery and
equipment
35
Computer and office
357
equipment
Electrical machinery
36
37
Transportation equipment...
Motor vehicles and parts .
371
371PT
Autos and light trucks .
Aerospace and
miscellaneous
transportation
372-6,9
equipment
Instruments
38
39
Miscellaneous

81
82
83
84
85
86
87
88
89
90
91

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

59 Total index

67
68
69
70
71
72
73
74
75
76
77
78

92 Mining
93 Metal
94 Coal
95 Oil and gas extraction
96 Stone and earth minerals
97 Utilities
98 Electric
99 Gas

8.0

252.8

249.9

250.9

253.9

257.9

260.0

261.5

261.9

262.3

258.4

255.0

255.6

250.6

247.5

1.8
7.3
9.5
4.9
2.6

1,343.6
549.7
131.0
170.5
153.0

1,272.3
533.8
133.6
177.6
161.1

1,316.2
555.0
133.5
176.1
160.1

1,370.4
571.2
128.0
163.1
147.8

1,421.6
580.0
132.4
173.9
156.4

1,464.2
592.2
132.4
175.5
158.8

1,487.4
597.4
129.2
167.2
145.8

1,502.8
604.4
126.8
160.1
140.1

1,508.3
610.2
122.8
151.8
131.5

1,497.4
604.3
116.0
138.6
125.9

1,484.2
593.7
119.8
147.4
131.9

1,477.5
583.2
124.5
156.5
141.8

1,471.6
572.2
123.9
155.4
141.6

1,462.8
564.9
125.6
159.1
148.1

4.6
5.4
1.3

93.8
122.2
130.8

92.3
121.3
130.7

93.6
122.2
130.5

94.9
122.6
132.1

93.5
123.3
130.8

92.1
123.7
130.9

93.6
123.5
131.1

95.4
124.6
130.2

95.3
123.1
129.4

94.3
125.0
130.4

93.5
123.3
127.6

94.3
122.8
127.5

94.0
123.6
127.5

93.9
122.9
125.8

21
22
23
26
27
28
29
30
31

40.4
9.4
1.6
1.8
2.2
3.6
6.7
9.9
1.4
3.5
.3

116.9
114.7
95.3
100.1
91.7
116.1
109.9
128.3
117.1
142.3
69.8

116.7
114.2
95.3
102.6
93.0
116.5
109.9
126.3
118.9
142.6
70.5

116.7
114.9
93.8
103.1
91.2
118.8
109.1
125.9
118.8
143.5
69.3

116.3
115.0
95.8
101.4
92.0
114.9
110.0
124.8
117.0
144.4
70.0

116.3
115.1
96.6
99.4
90.7
113.3
110.4
125.9
117.6
142.1
68.8

116.0
114.6
94.5
98.4
89.5
113.7
110.9
125.4
117.4
141.9
69.8

116.3
114.8
93.7
96.7
89.2
117.1
111.6
125.8
116.5
141.3
68.6

115.5
115.0
93.1
92.8
89.2
114.7
111.2
124.8
116.9
139.1
68.9

114.1
114.2
94.2
94.5
88.2
112.7
109.2
122.9
114.7
137.3
66.9

114.0
114.1
95.2
93.0
88.9
111.8
109.6
121.8
115.1
138.5
67.1

114.0
115.0
93.7
92.7
88.7
112.8
107.7
122.6
116.5
137.3
69.3

112.6
114.6
91.7
92.7
88.4
107.7
106.0
121.2
115.0
136.5
67.8

112.3
113.9
92.0
91.8
88.2
113.4
106.0
119.0
116.6
134.5
65.6

111.2
113.4
89.8
91.1
87.4
111.5
104.8
117.4
115.1
134.7
65.9

10
12
13
14

6.9
.5
1.0
4.8
.6

100.0
97.4
108.9
95.0
126.4

99.6
95.7
112.2
94.3
123.9

100.4
97.5
113.6
94.8
127.7

100.5
92.9
110.3
95.7
124.4

101.0
95.8
109.3
96.3
125.0

100.4
99.3
107.0
95.7
123.7

100.1
96.3
110.2
95.1
124.6

101.1
93.7
108.6
96.6
123.2

99.6
99.5
106.1
95.2
119.3

101.0
94.6
115.2
96.1
121.7

101.4
91.7
110.7
96.7
126.4

102.9
89.8
116.6
97.6
130.5

102.7
90.7
116.8
97.4
129.9

102.3
87.4
116.5
97.1
129.3

491.3PT
492,3PT

7.7
6.2
1.6

120.4
123.9
109.3

121.6
125.2
108.7

121.7
124.8
110.5

119.1
121.1
111.0

122.1
126.1
108.4

121.7
124.7
110.5

120.0
124.2
105.8

121.9
127.3
104.5

129.1
131.2
120.2

124.0
126.7
113.7

121.8
123.9
112.9

123.0
125.5
113.2

121.7
125.3
109.0

119.6
122.0
109.9

80.5

152.6

151.7

152.6

153.2

153.5

153.9

154.3

153.8

152.7

152.2

151.1

149.8

148.9

147.5

83.6

145.4

145.2

145.8

145.4

146.2

146.5

146.2

145.4

143.9

142.7

142.2

141.6

140.7

139.7

1,195.2

1,140.2

1,193.1

1,248.0

1,281.6

1,310.3

1,334.8

1,358.1

1,368.9

1,351.7

1,334.1

1,316.4

1,292.3

1,277.4

81.1

128.3

128.4

128.4

127.7

128.2

128.4

128.0

127.1

125.6

124.7

124.3

123.8

123.2

122.3

79.5

125.1

125.4

125.3

124.5

124.9

125.0

124.6

123.6

122.1

121.1

120.8

120.4

119.8

119.0

2,819.8

2,830.0 2,812.7

2,802.8

"20

SPECIAL AGGREGATES

100 Manufacturing excluding motor
vehicles and parts
101 Manufacturing excluding
computer and office
equipment
102 Computers, communications
equipment, and
semiconductors
103 Manufacturing excluding
computers and
semiconductors
104 Manufacturing excluding
computers, communications
equipment, and
semiconductors

5.9

Gross value (billions of 1992 dollars, annual rates)

MAJOR MARKETS

105 Products, total

2,001.9

2,860.5

2,872.7

2,883.5

2,865.7

2,882.9 2,889.1

2,867.4

2,863.2

2,850.2

2,818.1

106 Final
107 Consumer goods
108 Equipment

1,552.1 2,203.4
1,049.6 1,340.0
502.5
865.7

2,205.6
1,349.8
862.2

2,218.6
1,357.8
867.3

2,202.8
1,338.7
872.8

2,220.5
1,348.7
880.8

2,228.1
1,353.7
883.3

2,205.4
1,334.7
880.9

2,203.7
1,331.2
883.3

2,198.2
1,332.8
874.9

2.167.1
1.312.2
864.8

2,174.5
1,322.8
859.8

2,188.3
1,329.1
868.0

666.0

663.9

661.8

661.5

660.2

661.0

658.6

651.2

649.9

644.5

641.2

109 Intermediate

449.9

656.7

1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data
are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The
latest historical revision of the industrial production index and the capacity utilization rates
was released in December 2000. The recent annual revision is described in an article in the
March 2001 issue of the Bulletin. For a description of the methods of estimating industrial
production and capacity utilization, see "Industrial Production and Capacity Utilization:




2,173.3 2,166.2
1,324.9 1,320.9
855.6
852.4
638.8

636.0

Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February
1997), pp. 67-92, and the references cited therein. For details about the construction of
individual industrial production series, see "Industrial Production: 1989 Developments and
Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204.
2. Standard Industrial Classification.

A46
2.14

Domestic Nonfinancial Statistics • August 2001
HOUSING AND

CONSTRUCTION

Monthly figures at seasonally adjusted annual rates except as noted

2000
Item

1998

1999

2001

2000
July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.r

Mar.r

Apr.

Private residential real estate activity (thousands of units except as noted)
NEW UNITS

1 Permits authorized
2
One-family
3
Two-family or more
4 Started
One-family
6
Two-family or more
7 Under construction at end of period'
8
One-family
9
Two-family or more
10 Completed
11
One-family
12
Two-family or more
13 Mobile homes shipped

1,612
1,188
425
1,617
1,271
346
971
659
312
1,474
1,160
315
374

1.664
1.247
417
1.641
1.302
339
953
648
305
1.605
1,270
335
348

1,592
1,198
394
1,569
1,231
338
934
623
310
1,574
1,242
332
250

1,534
1,149
385
1,477
1,148
329
980
658
322
1,489
1,181
308
251

1,544
1,169
375
1,531
1,228
303
975
659
316
1,583
1,235
348
249

1,549
1,173
376
1,508
1,196
312
971
658
313
1,526
1,181
345
231

1,562
1,212
350
1,527
1,218
309
971
659
312
1,509
1,172
337
213

1,614
1,203
411
1,559
1,209
350
969
655
314
1,548
1,236
312
196

1,553
1,187
366
1,532
1,236
296
965
652
313
1,527
1,228
299
176

1,724
1,283
441
1,666
1,336
330
985
669
316
1,424
1,090
334
164

1,663
1,228
435
1,623
1,288
335
989
675
314
1,531
1,201
330
177

1,627
1,209
418
1,592
1,208
384
1,002
676
326
1,478
1,207
271
179

1,587
1,218
369
1,629
1,293
336
998
679
319
1,549
1,219
330
183

886
300

880r
315

877r
301

881
304

839
304

902
301

922
301

882
304

1,001
297

938
295

959
295

964
286

921
287

152.5
181.9

161,0r
195.8

169.0
207.2r

169.0
202.2

166.6
200.2

171.5
208.3

176.3
215.1

174.7
210.7

162.0
208.1

171.3
209.0

169.1
211.0

166.7
209.4

171.0
201.5

18 Number sold

4,970

5,205

5,113

4,820

5,240

5,160

5,070

5,300

4,940

5,200

5,190

5,430

5,220

Price of units sold (thousands
of dollars)2
19 Median
20 Average

128.4
159.1

133.3
168.3

139.0
176.2

143.3
177.7

143.2
183.0

141.6
178.6

138.6
176.9

139.5
176.5

139.7
178.5

137.1
175.8

138.6
174.6

143.4
179.5

143.1
179.9

Merchant builder activity in
one-family units
14 Number sold
15 Number for sale at end of period'
Price of units sold (thousands
of dollars)'
16 Median
17 Average
EXISTING UNITS (one-family)

Value of new construction (millions of dollars)3
CONSTRUCTION
703,533r

763,914r

817,130r

792,253r

803,968r

815,410r

820,805r

826,746r

838,731r

867,056r

876,171

876,111

879,231

22 Private
23
Residential
24
Nonresidential
25
Industrial buildings
26
Commercial buildings
27
Other buildings
28
Public utilities and other

r

550,754
314,514r
236,240r
40,547r
95,760r
39,609r
60,324r

r

595,667
349,560r
246,107r
32,794r
104,53 l r
40,906'
67,876'

r

641,269
375,268r
266,00 l r
31,984r
116,988r
44,505r
72,523r

r

627,733
364,I40 r
263,593r
33,986r
116,193r
44,945r
68,469r

r

630,656
364,039r
266,617'
32,623'
119,139'
45,544'
69,311'

638,850'
364,372'
274,478'
31,384'
121,349'
45,020'
76,725'

644,836'
370,256'
274,580'
32,125'
121,760'
45,645'
75,050'

651,066'
374,281'
276,785'
33,265'
120,587'
45,628'
77,305'

660,849'
379,593'
281,256'
31,398'
125,234'
45,707'
78,917'

673,715'
386,088'
287,627'
35,878'
125,402'
46,567'
79,780'

681,826
398,863
282,963
33,386
124,568
46,264
78,745

681,176
395,080
286,096
34,823
128,792
47,117
75,364

674,043
395,145
278,898
33,316
123,707
45,593
76,282

29 Public
30
Military
Highway
31
32
Conservation and development
33
Other

152,779r
2,539r
45,25 l r
5,415r
99,575'

168,247r
2,142r
52,024r
5,995r
108,086r

175,86 l r
2,334r
52,85 l r
6,043r
114,634r

164,520r
2,196r
49,628r
4,818r
107,878r

173,311'
2,386'
52,777'
5,568'
112,580'

176,559'
2,509'
53,923'
6,425'
113,702'

175,969'
1,883'
48,764'
6,815'
118,507'

175,680'
2,629'
48,858'
5,789'
118,404'

177,883'
2,107'
50,189'
6,339'
119,248'

193,340'
2,270'
58,458'
7,364'
125,248'

194,345
2,342
58,794
7,826
125,383

194,935
2,131
60,289
7,557
124,958

205,188
2,534
61,117
6,564
134,973

21 Total put in place

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 Bureau of the Census 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.




SOURCE. Bureau of the Census 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 19,000 jurisdictions beginning in 1994.

Selected Measures
2.15

A47

CONSUMER AND PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 3 months earlier
(annual rate)

Change from 12
months earlier
Item

2001

2000
2000
May

Change from 1 month earlier
Index
level,
May
20011

2001

2001
May
June

Mar.

Sept.

Dec.

3.3

2.3

4.0

Mar.

Apr.

May

.3

.1

.3

.4

177.7

.3
3.9
.3
.1
.4

.5
-.2
.3
.3
.3

.2
-2.1
.2
-.1
.3

.1
1.8
.2
.0
.3

.3
3.1
.1
-.4
.3

172.5
140.1
185.5
145.7
208.4

.1
— .4
.2
.4
-.1

142.5
141.8
104.1
156.9
139.7

Jan.

Feb.

CONSUMER PRICES2

(1982-84=100)
3.2

1 All items
2 Food
3 Energy items
4 All items less food and energy
5
Commodities
6
Services

3.6

2.4

.6

2.2
14.6
2.4
.7
3.2

3.1
15.8
2.5
.1
3.6

1.9
5.6
2.2
-.6
3.4

4.1
7.9
2.9
1.7
3.2

2.1
3.8
2.0
.0
3.2

4.1
6.0
3.5
1.4
4.2

3.7
2.8
17.3
1.8
.7

3.8
2.6
14.5
2.1
.8

2.3
3.3
6.5
1.3
1.5

2.0
-1.2
6.4
2.4
1.7

2.9
2.7
12.0
1.0
.3

4.9
10.2
12.6
2.1
.0

1.1
,9r
4.4r
.6
.2'

.1
,5r
1.2r
-,3r
-,2r

-.1
1.1
-2.6
.3
.0

.3
.6
.1
.2
.3

5.1
3.2

2.2
.6

3.1
2.7

3.1
.3

1.2
-.3

1.8
1.5

.8
.1

— .2'
.1

-.2
.1

-.3
-.1

.2
.1

132.1
137.5

5.3
38.1
13.2

5.1
31.3
-12.0

-7.3
163.6
-11.9

-8.2
20.0
-8.8

36.5
102.6
-9.2

14.8
-44.1
-13.4

1.6r
31.7r
.0'

3.0
-4.9
-1.3

-.5
3.0
-2.6

-1.1
-3.7
-.2

110.3
139.8
130.9

PRODUCER PRICES

(1982=100)
7 Finished goods
8
Consumer foods
9
Consumer energy
10
Other consumer goods
11
Capital equipment
Intermediate materials
12 Excluding foods and feeds
13 Excluding energy
Crude materials
14 Foods
16 Other

1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence
measure of homeownership.




-i.r
- 31,0r
—2.3r

SOURCE. U.S. Department of Labor, Bureau of Labor Statistics.

A48
2.16

Domestic Nonfinancial Statistics • August 2001
GROSS DOMESTIC PRODUCT AND

INCOME

Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates

2000
Account

1998

1999

2001

2000
Ql

Q2

Q3

Q4

Qi r

GROSS DOMESTIC PRODUCT

1 Total

8,790.2

9,299.2

9,963.1

9,752.7

9,945.7

10,039.4

10,114.4

10,226.8

By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services

5,850.9
693.9
1,707.6
3,449.3

6,268.7
761.3
1,845.5
3,661.9

6,757.3
820.3
2,010.0
3,927.0

6,621.7
826.3
1,963.9
3,831.6

6,706.3
814.3
1,997.6
3,894.4

6,810.8
824.7
2,031.5
3,954.6

6,890.2
815.8
2,046.9
4,027.5

7,002.3
839.2
2,071.8
4,091.3

6 Gross private domestic investment
7
Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures

1,549.9
1,472.9
1,107.5
283.2
824.3
365.4

1,650.1
1,606.8
1,203.1
285.6
917.4
403.8

1,832.7
1,778.2
1,362.2
324.2
1,038.0
416.0

1,755.7
1,725.8
1,308.5
308.9
999.6
417.3

1,852.6
1,780.5
1,359.2
315.1
1,044.1
421.3

1,869.3
1,803.0
1,390.6
330.1
1,060.5
412.4

1,853.3
1,803.5
1,390.4
342.8
1,047.6
413.1

1,788.8
1,814.8
1,392.4
361.0
1,031.4
422.4

77.0
76.4

43.3
43.6

54.5
55.8

29.9
32.4

72.0
72.2

66.4
67.5

49.8
51.0

-26.1
-25.3

14 Net exports of goods and services
15
Exports
16
Imports

-151.5
966.0
1,117.5

-254.0
990.2
1,244.2

-370.7
1,097.3
1,468.0

-335.2
1,051.9
1,387.1

-355.4
1,092.9
1,448.3

-389.5
1,130.8
1,520.3

-402.7
1,113.7
1,516.4

-375.6
1,110.0
1,485.6

17 Government consumption expenditures and gross investment
18
Federal
19
State and local

1,540.9
540.6
1,000.3

1,634.4
568.6
1,065.8

1,743.7
595.2
1,148.6

1,710.4
580.1
1,130.4

1,742.2
604.5
1,137.7

1,748.8
594.2
1,154.6

1,773.6
602.0
1,171.6

1,811.3
617.1
1,194.2

By major type of product
20 Final sales, total
21
Goods
22
Durable
23
Nondurable
24
Services
25
Structures

8,713.2
3,239.3
1,532.3
1,707.1
4,673.0
800.9

9,255.9
3,467.0
1,651.1
1,815.8
4,934.6
854.3

9,908.5
3,739.0
1,806.7
1,932.3
5,254.1
915.6

9,722.8
3,680.3
1,773.7
1,906.6
5,135.2
907.4

9,873.7
3,734.1
1,809.6
1,924.5
5,231.4
908.2

9,973.1
3,776.5
1,830.6
1,945.9
5,281.6
915.0

10,064.6
3,764.9
1,812.7
1,952.2
5,368.0
931.7

10,252.9
3,824.8
1,835.8
1,988.9
5,460.7
967.4

77.0
45.8
31.2

43.3
27.2
16.1

54.5
37.2
17.3

29.9
20.7
9.2

72.0
48.3
23.7

66.4
39.2
27.2

49.8
40.7
9.0

-26.1
-33.0
6.9

8,515.7

8,875.8

9,318.5

9,191.8

9,318.9

9,369.5

9,393.7

9,422.8

30 Total

7,038.1

7,469.7

8,002.0

7,833.5

7,983.2

8,088.5

8,102.8

8,165.0

31 Compensation of employees
32
Wages and salaries
33
Government and government enterprises
34
Other
35
Supplement to wages and salaries
36
Employer contributions for social insurance
37
Other labor income

4,984.2
4,192.8
692.7
3,500.1
791.4
305.9
485.5

5,299.8
4,475.1
724.4
3,750.7
824.6
323.6
501.0

5,638.2
4,769.4
760.9
4,008.5
868.8
344.8
524.0

5,512.2
4,660.4
749.9
3,910.5
851.8
337.8
514.0

5,603.5
4,740.1
760.2
3,980.0
863.3
342.9
520.5

5,679.6
4,804.9
765.4
4,039.5
874.7
347.1
527.6

5,757.5
4,872.0
768.2
4,103.9
885.5
351.5
534.0

5,853.9
4,953.6
782.5
4,171.1
900.3
359.3
541.1

620.7
595.2
25.4

663.5
638.2
25.3

710.4
687.8
22.6

693.9
674.8
19.1

709.5
688.1
21.5

724.8
693.1
31.7

713.2
695.2
18.0

726.0
705.0
21.0

2
3
4
5

12
13

Change in business inventories
Nonfarm

26 Change in business inventories
27
Durable goods
28
Nondurable goods
MEMO

29 Total GDP in chained 1996 dollars
NATIONAL INCOME

38 Proprietors' income'
39
Business and professional1
40
Farm1
41 Rental income of persons2

135.4

143.4

140.0

145.6

140.8

138.1

135.4

137.9

42 Corporate profits'
43
Profits before tax3
44
Inventory valuation adjustment
45
Capital consumption adjustment

815.0
758.2
17.0
39.9

856.0
823.0
-9.1
42.1

946.2
925.6
-12.9
33.5

936.3
920.7
-25.0
40.6

963.6
942.5
-13.6
34.7

970.3
945.1
-4.5
29.7

914.7
894.1
-8.5
29.1

869.0
841.8
-3.5
30.7

46 Net interest

482.7

507.1

567.2

545.4

565.9

575.7

582.0

578.1

1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.




3. For after-tax profits, dividends, and the like, see table 1.48.
SOURCE. U.S. Department of Commerce, Survey of Current Business.

Selected Measures
2.17

A49

PERSONAL INCOME AND SAVING
Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates
2001

2000
Account

1998

1999

2000
Q2

Ql

Q3

Q4

Ql r

PERSONAL INCOME AND SAVING

1 Total personal income
? Wage and salary disbursements
Commodity-producing industries
Manufacturing
4
Distributive industries
6
Government and government enterprises
7
9 Proprietors' income1
in
Business and professional'
II
P
N
14
IS

Rental income of persons2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits
16
17

18
19

LESS: Personal contributions for social insurance
EQUALS: Personal income
LESS: Personal tax and nontax payments

2n EQUALS: Disposable personal income

7,391.0

7,789.6

8,281.7

8,105.8

8,242.1

8,349.0

8,429.7

8,554.2

4,190.7
1,038.6
756.6
949.1
1,510.3
692.7

4,470.0
1,089.2
782.4
1,020.3
1,636.0
724.4

4,769.4
1,153.2
815.9
1,107.3
1,748.0
760.9

4,660.4
1,130.9
802.8
1,070.9
1,708.6
749.9

4,740.1
1,147.1
813.1
1,095.7
1,737.2
760.2

4,804.9
1,161.4
821.4
1,118.1
1,760.1
765.4

4,872.0
1,173.3
826.4
1,144.4
1,786.2
768.2

4,953.6
1,184.4
825.6
1,167.1
1,819.5
782.5

485.5
620.7
595.2
25.4
135.4
351.1
940.8
983.0

524.0
710.4
687.8
22.6
140.0
396.6
1,034.3
1,067.8
622.4

514.0
693.9
674.8
19.1
145.6
386.9
1,011.6

627.2

534.0
713.2
695.2
18.0
135.4
407.2
1,051.5
1,084.0
630.4

541.1
726.0
705.0
21.0
137.9
414.2
1,043.0

607.9

520.5
709.5
688.1
21.5
140.8
392.6
1,031.3
1,066.1
624.3

527.6
724.8
693.1
31.7
138.1

578.0

501.0
663.5
638.2
25.3
143.4
370.3
963.7
1,016.2
588.0

316.2

338.5

360.7

353.4

358.8

363.1

367.6

377.3

7,391.0

7,789.6

8,281.7

8,105.8

8,242.1

8,349.0

8,429.7

8,554.2

1,046.9

399.7

1,042.9
1,074.2

1,115.5

653.3

1,070.9

1,152.0

1,291.9

1,239.3

1,277.2

1,308.1

1,342.7

1,372.2

6,320.0

6,637.7

6,989.8

6,866.5

6,964.9

7,040.9

7,087.0

7,182.0

21

LESS: Personal outlays

6,054.7

6,490.1

6,998.3

6,855.6

6,944.3

7,054.7

7,138.6

7,254.4

22

EQUALS: Personal saving

265.4

147.6

-8.5

11.0

20.6

-13.8

-51.6

-72.4

31,474.2
20,988.5
22,672.0

32,511.9
21,900.4
23,191.0

33,836.1
22,855.1
23,640.0

33,485.6
22,635.5
23,472.0

33,874.7
22,757.7
23,639.0

33,984.3
22,959.1
23,732.0

33,985.9
23,058.3
23,718.0

34,017.2
23,200.6
23,795.0

4.2

2.2

-.1

.2

.3

-.2

-.7

-1.0

1,654.4

1,717.6

1,825.1

1,777.0

1,844.5

1,854.7

1,824.2

1,766.5

1,375.7

1,343.5

1,297.1

1,279.2

1,328.8

1,319.2

1,261.2

1,219.4

MEMO
73
74
25

Per capita (chained 1996 dollars)
Gross domestic product
Personal consumption expenditures
Disposable personal income

26

Saving rate (percent)
GROSS SAVING

27

Gross saving

2 8 Gross private saving
79
30
31

Personal saving
Undistributed corporate profits'
Corporate inventory valuation adjustment

265.4
218.9
17.0

147.6
229.4
-9.1

-8.5
265.0
-12.9

11.0
262.7
-25.0

20.6
278.5
-13.6

-13.8
279.6
-4.5

-51.6
239.4
-8.5

-72.4
200.0
-3.5

37
33

Capital consumption allowances
Corporate
Noncorporate

624.3
265.1

676.9
284.5

739.4
301.1

711.5
294.1

731.1
298.7

750.0
303.3

765.2
308.2

778.4
313.4

278.7
137.4
88.4
49.0
141.3
99.5
41.7

374.1
217.3
92.8
124.4
156.8
106.8
50.0

528.0
351.6
99.8
251.8
176.4
116.8
59.6

497.7
333.0
97.2
235.8
164.7
112.7
52.0

515.7
339.9
98.9
240.9
175.8
115.6
60.1

535.5
354.1
100.8
253.3
181.4
118.2
63.2

563.0
379.3
102.3
277.0
183.7
120.6
63.1

547.1
381.7
103.6
278.1
165.4
123.2
42.2

1,629.6

1,645.6

1,741.3

1,699.3

1,771.9

1,752.8

1,741.3

1,714.8

1,549.9
278.8
-199.1

1,650.1
308.7
-313.2

1,832.7
336.6
-427.9

1,755.7
334.2
-390.7

1,852.6
331.9
-412.5

1,869.3
333.6
-450.1

1,853.3
346.5
-458.5

1,788.8
350.3
-424.2

-24.8

-71.9

-83.7

-77.7

-72.5

-101.8

-82.9

-51.6

34
35
36
37
38
39
40

Gross government saving

41

Gross investment

Consumption of fixed capital
Current surplus or deficit ( - ) , national accounts
State and local
Consumption of fixed capital
Current surplus or deficit ( - ) , national accounts

47 Gross private domestic investment
4 3 Gross government investment
4 4 Net foreign investment
45

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.

A50
3.10

International Statistics • August 2001
U.S. I N T E R N A T I O N A L T R A N S A C T I O N S

Summary

Millions of dollars; quarterly data seasonally adjusted except as noted 1
2000r
Item credits or debits

1 Balance on current account
Balance on goods and services
Exports
Imports
Income, net
Investment, net
Direct
Portfolio
Compensation of employees
Unilateral current transfers, net

?.

3
4
5
6
7
8
9
10

11 Change in U.S. government assets other than official
reserve assets, net (increase, —)

1999r

1998r

2001

2000r
Ql

Q2

Q3

Q4

Qlp

-108,134
-90,784
265,822
-356,606
-4,889
-3,589
18,117
-21,706
-1,300
-12,461

-115,305
-97,340
272,497
-369,837
-4,885
-3,620
21,049
-24,669
-1,265
-13,080

-116,324
-100,293
270,131
-370,424
642
1,971
25,703
-23,732
-1,329
-16,673

-109,562
-95,015
269,297
-364,312
-3,090
-1,730
23,263
-24,993
-1,360
-11,457

-217,457
-166,828
932,694
-1,099,522
-6,202
-1,211
66,253
-67,464
-4,991
-44,427

-324,364
-261,838
957,353
-1,219,191
-13,613
-8,511
67,044
-75,555
-5,102
-48,913

-444,667
-375,739
1,065,702
-1,441,441
-14,792
-9,621
81,231
-90,852
-5,171
-54,136

-104,903
-87,322
257,256
-344,578
-5,657
-4,380
16,365
-20,745
-1,277
-11,924

-422

2,751

-944

-127

-572

114

-359

68

12 Change in U.S. official reserve assets (increase, - )
13
Gold
14
Special drawing rights (SDRs)
15
Reserve position in International Monetary Fund
Foreign currencies
16

-6,783
0
-147
-5,119
-1,517

8,747
0
10
5,484
3,253

-290
0
-722
2,308
-1,876

-554
0
-180
-237
-137

2,020
0
-180
2,328
-128

-346
0
-182
1,300
-1,464

-1,410
0
-180
-1,083
-147

190
0
-189
574
-195

17 Change in U.S. private assets abroad (increase, —)
18
Bank-reported claims2
19
Nonbank-reported claims
20
U.S. purchases of foreign securities, net
21
U.S. direct investments abroad, net

-352,427
-35,572
-38,204
-136,135
-142,516

-448,565
-76,263
-85,700
-131,217
-155,385

-579,718
-138,500
-163,846
-124,935
-152,437

-197,424
-56,234
-75,256
-27,546
-38,388

-95,021
7,455
-29,491
-39,639
-33,346

-107,495
-18,147
-14,585
-33,129
-41,634

-179,779
-71,574
-44,514
-24,621
-39,070

-157,195
-90,027
-5,618
-28,535
-33,015

-19,948
-9,921
6,332
-3,371
-9,501
-3,487

43,551
12,177
20,350
-2,855
12,964
915

37,619
-10,233
40,909
-1,987
5,803
3,127

22,498
16,204
8,107
-474
-2,270
931

6,447
-4,000
10,334
-1,000
209
904

12,247
-9,001
14,272
-220
6,884
312

-3,573
-13,436
8,196
-293
980
980

4,091
-1,027
3,574
-1,244
1,785
1,003

524,412
39,769
23,140
48,581
16,622
218,091
178,209

770,193
54,232
69,075
-20,490
22,407
343,963
301,006

986,599
87,953
177,010
-52,792
1,129
485,644
287,655

234,284
-7,425
85,188
-9,348
-6,847
136,208
36,508

243,560
53,923
24,400
-20,546
989
94,400
90,394

209,861
-1,910
19,078
-12,503
757
128,393
76,046

298,894
43,365
48,344
-10,395
6,230
126,643
84,707

233,412
-476
42,269
538
2,311
147,132
41,638

678
71,947

-3,491
-48,822

705
696

71,947

-48,822

696

173
46,053
8,501
37,552

173
-48,473
-2,380
-46,093

175
749
-9,977
10,726

184
2,367
3,856
-1,489

174
28,822
8,945
19,877

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. banks2
27
Other foreign official assets3
28 Change in foreign private assets in United States (increase, +)
29
U.S. bank-reported liabilities4
30
U.S. nonbank-reported liabilities
31
Foreign private purchases of U.S. Treasury securities, net
3?
U.S. currency flows
33
Foreign purchases of other U.S. securities, net
34
Foreign direct investments in United States, net
35 Capital account transactions, net3
36 Discrepancy
37
Due to seasonal adjustment
38
Before seasonal adjustment
MEMO
Changes in official assets
39 U.S. official reserve assets (increase, - )
40 Foreign official assets in United States, excluding line 25
(increase, +)

-6,783

8,747

-290

-554

2,020

-346

-1,410

190

-16,577

46,406

39,606

22,972

7,447

12,467

-3,280

5,335

41 Change in Organization of Petroleum Exporting Countries official
assets in United States (part of line 22)

-11,531

1,621

11,582

6,143

1,639

3,636

164

-170

1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38^tl.
2. Associated primarily with military sales contracts and other transactions arranged with
or through foreign official agencies.
3. Consists of investments in U.S. corporate stocks and in debt securities of private
corporations and state and local governments.
4. Reporting banks included all types of depository institutions as well as some brokers




and dealers.
5. Consists of capital transfers (such as those of accompanying migrants entering or
leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced
nonfinancial assets.
SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current
Business.

Summary Statistics
3.11

A51

U.S. FOREIGN TRADE 1
Millions of dollars; monthly data seasonally adjusted
2000r
Item

1998

1999

2001

2000
Oct.

Nov.

Dec.

Jan.r

Feb.r

Mar.

Apr.P

1 Goods and services, balance
2
Merchandise
3
Services

-166,686
-246,855
80,169

-261,838
-345,434
83,596

-375,739
-452,207
76,468

-34,025
-40,205
6,180

-32,978
-38,955
5,977

-33,291
-39,361
6,070

-33,332
-39,127
5,795

-28,610
-34,614
6,004

-33,076
-38,781
5,705

-32.174
-37,833
5,659

4 Goods and services, exports
5
Merchandise
6
Services

933,053
670,324
262,729

957,353
684,553
272,800

1,065,702
772,210
293,492

90,412
65,807
24,605

90,478
65,856
24,622

89,241
64,574
24,667

90,104
65,309
24,795

90,475
65,748
24,727

88,716
63,884
24,832

86,917
62,123
24,794

7 Goods and services, imports
8
Merchandise
Services
9

-1,099,739
-917,179
-182,560

-1,219,191
-1,029,987
-189,204

-1,441,441
-1,224,417
-217,024

-124,437
-106,012
-18,425

-123,456
-104,811
-18,645

-122,532
-103,935
-18,597

-123,436
-104,436
-19,000

-119,085
-100,362
-18,723

-121,792
-102,665
-19,127

-119,091
-99,956
-19,135

1. Data show monthly values consistent with quarterly figures in the U.S. balance of
payments accounts.

3.12

SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of
Economic Analysis.

U.S. R E S E R V E A S S E T S
Millions of dollars, end of period
2000
Asset

1997

1998

2001

1999
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June p

1 Total

69,954

81,761

71,516

65,523

67,647

67,542

66,486

64,222

64,731

65,254r

64,847

2 Gold stock1
3 Special drawing rights2,3
4 Reserve position in International Monetary
Fund2
5 Foreign currencies4

11,047
10,027

11,046
10,603

11,048
10,336

11,046
10,369

11,046
10,539

11,046
10,497

11,046
10,641

11,046
10,379

11,046
10,420

11,044r
10,481

11,044
10,409

18,071
30,809

24,111
36,001

17,950
32,182

13,491
30,617

14,824
31,238

15,079
30,920

14,107
30,692

13,777
29,020

13,816
29,449

14,283
29,446

14,619
28,775

1. Gold held "under earmark" at Federal Reserve Banks for foreign and international
accounts is not included in the gold stock of the United States; see table 3.13, 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, sixteen currencies were used; since January 1981, five 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.

3.13

BANKS1

FOREIGN OFFICIAL ASSETS H E L D AT F E D E R A L R E S E R V E
Millions of dollars, end of period

2000
Asset

1997

1998

Nov.
1 Deposits
Held in custody
2 U.S. Treasury securities2
3 Earmarked gold3

Dec.

Jan.

Feb.

Mar.

Apr.

May

June p

457

167

71

104

215

199

196

70

101

86

102

620,885
10,763

607,574
10,343

632,482
9,933

591,071
9,505

594,094
9,451

594,694
9,397

603,906
9,343

609,440
9,289

585,710
9,235

583,655
9,154

586,607
9,100

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, in each case measured at face (not market) value.




2001

1999

3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not
included in the gold stock of the United States.

A52
3.15

International Statistics • August 2001
SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
2000r
Item

1 Total1
2
3
4
5
6
7
8
9
10
11
12

By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable4
U.S. securities other than U.S. Treasury securities5
By area
Europe'
Canada
Latin America and Caribbean
Asia
Africa
Other countries

1998

Oct.

Nov.

Dec.

Jan.

r

Feb.

r

Mar.

Apr.p

759,928

806,318

850,116

849,049

845,926

866,885

864,593

865,466

855,708

125,883
134,177

138,847
156,177

146,452
155,101

147,631
155,061

144,650
153,010

155,295
158,967

155,163
155,667

154,641
155,204

158,997
144,158

432,127
6,074
61,667

422,266
6,111
82,917

419,863
5,280
123,420

414,896
5,313
126,148

415,964
5,348
126,954

418,190
4,923
129,510

418,857
4,953
129,953

419,106
4,984
131,531

410,066
5,017
137,470

256,026
10,552
79,503
400,631
10,059
3,157

244,805
12,503
73,518
463,703
7,523
4,266

264,131
12,632
77,526
481,344
8,323
6,160

262,099
11,744
78,742
481,094
8,012
7,358

253,592
12,394
76,812
488,168
9,165
5,795

259,829
11,220
80,117
499,925
8,965
6,829

256,180
10,794
80,389
501,486
9,586
6,158

250,420
10,396
79,185
511,023
9,102
5,340

248,106
10,474
79,457
500,670
9,341
7,660

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 and Treasury bills issued to official
institutions of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of
zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning
March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue;

3.16

2001

1999

LIABILITIES TO, AND CLAIMS ON, FOREIGNERS
Payable in Foreign Currencies

Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April
1993, 30-year maturity issue.
5. Debt securities of U.S. government corporations and federally sponsored agencies, and
U.S. corporate stocks and bonds.
SOURCE. Based on U.S. Department of the Treasury data and on data reported to the
department by banks (including Federal Reserve Banks) and securities dealers in the United
States, and on the 1994 benchmark survey of foreign portfolio investment in the United
States.

Reported by Banks in the United States1

Millions of dollars, end of period
2000
Item

1 Banks' liabilities
2 Banks' claims
Deposits
3
4
Other claims
5 Claims of banks' domestic customers2

1997

117,524
83,038
28,661
54,377
8,191

1. Data on claims exclude foreign currencies held by U.S. monetary authorities.




1998

101,125
78,162
45,985
32,177
20,718

2001

1999

88,537
67,365
34,426
32,939
20,826

June

Sept.

Dec/

Mar.

85,842
67,862
31,724r
36,138r
18,802

78,852
60,355
26,306r
34,049r
19,123

77,935
57,005
23,407
33,598
24,411

88,653
71,075
27,004
44,071
20,682

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.

Bank-Reported Data
3.17

LIABILITIES TO FOREIGNERS

A53

R e p o r t e d b y B a n k s in t h e U n i t e d S t a t e s 1

P a y a b l e in U.S. dollars
Millions of dollars, end of period
2001

2000

Item

1998

1999

2000

Oct.

Nov.

Dec.

Jan.

Feb.r

Mar.

Apr.P

1,511,173

1,525,179

1,523,669

1,569,027r

1,534,075

1,498,780

1,531,621

1,086,287'
30,864R
187,383R
203,269
664,771

1,050,242
35,765
191,653
198,788
624,036

1,038,209
33,868
182,479
199,882
621,980

1,062,835
31,267
190,704
201,381
639,483

482,740
182,276
66,604R

483,833
179,277
74,282

460,571
171,755
71,460

468,786
159,686
69,228

76,694R
157,166

72,489
157,785

63,169
154,187

78,058
161,814

B Y HOLDER AND TYPE OF LIABILITY
1

Total, all foreigners

2
3
4

1,347,837

1,408,740

1,523,669

Banks' own liabilities
Demand deposits
Time deposits2
Other1
Own foreign offices4

884,939
29,558
151,761
140,752
562,868

971,536
42,884
163,620
155,853
609,179

1,049,070
33,553
191,791
173,233
650,493

1,074,575
29,500
185,454
194,659
664,962

1,073,536
31,701
192,422
187,066
662,347

1,049,070
33,553
191,791
173,233
650,493

462,898
183,494

437,204
185,676

474,599
177,742

436,598
173,984

451,643
173,896

474,599
177,742

11

Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Short-term agency securities7
Other negotiable and readily transferable
instruments8
Other

12
13
14
15
16

Nonmonetary international and regional organizations9 . .
Banks' own liabilities
Demand deposits
Time deposits2
Other3

6
7
8
9
10

17
18
19
20
21
22
73
74
75
26
77
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53

Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Short-term agency securities7
Other negotiable and readily transferable
instruments8
Other
Official institutions' 0
Banks' own liabilities
Demand deposits
Time deposits2
Other3
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Short-term agency securities7
Other negotiable and readily transferable
instruments8
Other
Banks"
Banks' own liabilities
Unaffiliated foreign banks
Demand deposits
Time deposits2
Other3
Own foreign offices4
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Short-term agency securities7
Other negotiable and readily transferable
instruments8
Other
Other foreigners
Banks' own liabilities
Demand deposits
Time deposits2
Other3
Banks' custodial liabilities5
U.S. Treasury bills and certificates6
Short-term agency securities7
Other negotiable and readily transferable
instruments8
Other

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

141,699
137,705

132,617
118,911

144,858
151,999

129,753
132,861

132,453
145,294

144,858
151,999

11,883
10,850
172
5,793
4,885

15,276
14,357
98
10,349
3,910

12,560
12,158
41
6,264
5,853

17,104
16,751
48
5,918
10,785

17,074
16,676
30
6,542
10,104

12,560
12,158
41
6,264
5,853

10,938
10,595
27
5,641
4,927

11,596
11,220
19
4,984
6,217

11,645
11,101
23
5,252
5,826

12,213
11,724
14
5,301
6,409

402
252

343
294
26

376
248
108

544
229
137

489
170
144

23
0

15
5

177
1

175
0

1,033
636

n.a.

919
680

n.a.

402
252

n.a.

353
215

n.a.

398
249

n.a.

n.a.

397
0

233
6

149
1

138
0

147
2

149
1

260,060
80,256
3,003
29,506
47,747

295,024
97,615
3,341
28,942
65,332

297,660
97,052
3,950
35,638
57,464

301,553
102,654
4,361
34,035
64,258

302,692
102,110
4,702
35,335
62,073

297,660
97,052
3,950
35,638
57,464

314,262'
103,447R
3,201R
33,026R
67,220

310,830
99,602
4,444
29,957
65,201

309,845
97,068
3,509
28,001
65,558

303,155
104,064
3,530
32,032
68,502

179,804
134,177

197,409
156,177

200,608
153,010

198,899
155,101

200,582
155,061

200,608
153,010

210,815
158,967
45,384

211,228
155,667
49,594

212,777
155,204
53,295

199,091
144,158
51,107

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

44,953
674

41,182
50

47,360
238

43,753
45

44,828
693

47,360
238

5,337
1,127

5,325
642

4,064
214

3,325
501

885,336
676,057
113,189
14,071
45,904
53,214
562,868

900,379
728,492
119,313
17,583
48,140
53,590
609,179

981,552
789,052
138,559
15,532
67,498
55,529
650,493

963,643
797,391
132,429
12,160
64,301
55,968
664,962

973,539
794,924
132,577
12,834
68,828
50,915
662,347

981,552
789,052
138,559
15,532
67,498
55,529
650,493

1,008,771
810,402
145,631
14,297
70,896
60,438
664,771

976,200
779,504
155,468
12,600
78,599
64,269
624,036

953,725
774,936
152,956
16,433
73,017
63,506
621,980

966,235
784,879
145,396
13,027
72,656
59,713
639,483

209,279
35,359

171,887
16,796

192,500
15,919

166,252
9,972

178,615
10,285

192,500
15,919

198,369
14,484
7,573R

196,696
13,909
8,008

178,789
7,922
2,330

181,356
7,022
2,779

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

45,332
128,588

45,695
109,396

35,104
141,477

34,261
122,019

34,643
133,687

35,104
141,477

30,623R
145,689

29,099
145,680

26,016
142,521

24,062
147,493

190,558
117,776
12,312
70,558
34,906

198,061
131,072
21,862
76,189
33,021

231,897
150,808
14,030
82,391
54,387

228,873
157,779
12,931
81,200
63,648

231,874
159,826
14,135
81,717
63,974

231,897
150,808
14,030
82,391
54,387

235,056R
161,843'
13,339 R
77,820
70,684

235,449
159,916
18,702
78,113
63,101

223,565
155,104
13,903
76,209
64,992

250,018
162,168
14,696
80,715
66,757

72,782
13,322

66,989
12,023

81,089
8,561

71,094
8,696

72,048
8,301

81,089
8,561

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

73,213
8,531
13,621 R

75,533
9,453
16,572

68,461
8,400
15,698

87,850
8,336
15,198

51,017
8,443

45,507
9,459

62,245
10,283

51,601
10,797

52,835
10,912

62,245
10,283

40,7 ll
10,350

38,050
11,458

32,912
11,451

50,496
13,820

27,026

30,345

34,088

27,164

25,854

34,088

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

31,389
125,225'

30,277
120,444

24,518
129,671

25,372
119,141

r

MEMO
54
55

Negotiable time certificates of deposit in custody for
foreigners
Repurchase agreements7

1. Reporting banks include all types of depository institutions as well as some brokers and
dealers. Excludes bonds and notes of maturities longer than one year.
2. Excludes negotiable time certificates of deposit, which are included in "Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiaries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts owed to the head office or parent foreign bank, and to foreign
branches, agencies, or wholly owned subsidiaries of the 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 for foreign customers.




6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official
institutions of foreign countries.
7. Data available beginning January 2001.
8. Principally bankers acceptances, commercial paper, and negotiable time certificates of
deposit.
9. Principally the International Bank for Reconstruction and Development, the InterAmerican Development Bank, and the Asian Development Bank. Excludes "holdings of
dollars" of the International Monetary Fund.
10. Foreign central banks, foreign central governments, and the Bank for International
Settlements.
11. Excludes central banks, which are included in "Official institutions."

A54
3.17

International Statistics • August 2001
LIABILITIES TO FOREIGNERS Reported by Banks in the United States'—Continued
Payable in U.S. dollars
Millions of dollars, end of period

2000

Item

1998

2001

2000

1999

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.P

AREA
56

Total, all foreigners

1347,837

1,408,740

1,523,669

1,511,173

1,525,179

1,523,669

1,569,027r

1,534,075r

1,498,780

1,531,621

57

Foreign countries

1,335,954

1,393,464

1,511,108

1,494,069

1,508,105

1,511,108

1,558,088r

1,522,478r

1,487,134

1,519,407

58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79

Europe
Austria
Belgium12
Denmark
Finland
France
Germany
Greece
Italy
Luxembourg
Netherlands
Norway
Portugal
Russia
Spain
Sweden
Switzerland
Turkey
United Kingdom
Channel Islands & Isle of Man 13
Yugoslavia' 4
Other Europe and other former U.S.S.R."

427,375
3,178
42,818
1,437
1,862
44,616
21,357
2,066
7,103

441,810
2,789
44,692
2,196
1,658
49,790
24,753
3,748
6,775

449,152
2,724
33,401
3,001
1,412
37,840
35,535
2,013
5,079

483,826
2,037
29,648
3,001
1,418
41,736
28,633
3,445
5,594

471,979
2,671
32,389
3,531
1,874
43,534
27,084
3,344
5,521

449,152
2,724
33,401
3,001
1,412
37,840
35,535
2,013
5,079

477,162
2,366
7,357
3,391
1,155
49,045
30,250
1,888
4,997
27,095
8,504
4,762
2,571
17,233
8,129
5,648
83,096
7,783
143,476 R
36,373 R
287
31,756

448,113R
2,124
5,709 R
4,182
1,667
45,435 R
30,432 R
1,963
5,07 R
24,234 R
8,413
6,331
2,625
19,029
8,24 R
5,959
64,748 R
5,382 R
134,449 R
43,087'
294
28,738'

429,275
2,178
5,432
2,919
1,286
42,758
30,662
1,496
5,770
12,585
7,265
8,361
1,731
18,625
9,500
6,738
54,028
5,635
146,942
36,040
294
29,030

433,388
2,773
5,309
3,413
1,769
39,125
30,569
1,336
5,268
16,296
9,954
4,806
1,949
19,917
7,741
6,299
65,806
4,549
137,837
36,013
305
32,354

80

Canada

81
82
83
84
85
86
87
88

Latin America
Argentina
Brazil
Chile
Colombia
Ecuador
Guatemala
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin America16

n.a.
10,793
710
3,236
2,439
15,781
3,027
50,654
4,286
181,554

n.a.
8,143
1,327
2,228
5,475
10,426
4,652
63,485
7,842
172,687

n.a.

n.a.

7,485
2,305
2,404
19,020
7,801
6,498
74,732
7,548
169,484

14,450
4,102
2,262
17,260
9,270
6,247
97,151
8,492
173,254

n.a.
13,283
5,159
2,379
20,022
6,900
7,362
86,154
4,525
172,281

n.a.
7,485
2,305
2,404
19,020
7,801
6,498
74,732
7,548
169,484

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

233
30,225

286
28,858

276
30,594

270
35,556

279
33,687

276
30,594

30,212

34,214

31,059

34,367

31,252

31,059

23,927

23,945

24,253

27,768

121,327
19,014
15,815
5,015
4,624
1,572
1,336
37,157
3,864

121,417
18,746
10,204
5,105
4,945
2,084
1,667
36,054
3,788
1,153
2,512
24,288

121,353
17,886
11,663
5,327
4,560
2,059
1,678
33,856
3,980
1,194
2,944
25,963

121,719
19,493
10,953
5,895
4,555
2,119
1,637
33,157
4,292
1,435
3,006
24,779

118,928
18,936
10,542
5,647
4,552
2,157
1,581
33,721
3,615
1,355
2,798

120,971'
18,011'
11,473
5,955
4,445
2,254
1,535
35,408'
3,885
1,459
2,844

114, 511
12,878
10,571
5,175
4,344
2,179
1,509
34,084
4,014
1,788
3,365

117,444
14,610
10,851
5,449
4,618
2,164
1,557
34,269
3,476
1,767
3,410

840

117,495
18,633
12,865
7,008
5,669
1,956
1,626
30,717
4,415
1,142

2,486
19,894

20,192

121,719
19,493
10,953
5,895
4,555
2,119
1,637
33,157
4,292
1,435
3,006
24,779

9,710

10,886

10,398

10,871

10,243

10,398

26,996
7,028

26,525'
7,177

27,415
7,189

27,847
7,426

94 Caribbean
95
Bahamas
Bermuda
96
British West Indies' 7
97
Caymen Islands' 7
98
99
Cuba
100
Jamaica
Netherlands Antilles
101
Trinidad and Tobago
102
Other Caribbean' 6
103

433,539
118,085
6,846
302,486
n.a.
62
577
5,010
473
n.a.

461,200
135,811
7,874
312,278
n.a.
75
520
4,047
595
n.a.

580,562
189,454
9,695
374,107
n.a.
90
815
5,496
905
n.a.

533,961
178,113
8,730
340,926
n.a.
94
680
4,614
804
n.a.

560,281
176,823
8,404
368,175
n.a.
88
722
5,318
751
n.a.

580,562
189,454
9,695
374,107
n.a.
90
815
5,496
905
n.a.

601,777
186,180
9,488
n.a.
384,398r
130
792
6,565
797
13,427'

590,403'
185,562
8,119'
n.a.
376,109'
84
945
5,537
886
13,161'

577,706
174,174
8,401
n.a.
375,607
85
1,238
4,504
1,048
12,649

606,544
177,533
8,261
n.a.
402,309
83
899
4,516
1,114
11,829

104 Asia
China
Mainland
105
106
Taiwan
Hong Kong
107
108
India
109
Indonesia
no
Israel
Japan
III
112
Korea (South)
Philippines
113
114
Thailand
115
Middle Eastern oil-exporting countries' 8
116
Other

307,960

319,489

306,412

299,164

301,595

306,412

315,128r

317,069'

320,174

310,808

13,441
12,708
20,900
5,250
8,282
7,749
168,563
12,524
3,324
7,359
15,609
32,251

12,325
13,603
27,701
7,367
6,567
7,488
159,075
12,988
3,268
6,050
21,314
41,743

16,538
17,690
26,768
4,532
8,524
8,055
150,434
7,967
2,430
3,129
23,760
36,585

13,719
18,289
25,784
5,548
7,589
6,668
150,196
6,684
1,676
3,178
23,856
35,977

15,835
17,630
25,924
5,173
8,375
6,538
149,679
6,689
2,334
3,477
23,732
36,209

16,538
17,690
26,768
4,532
8,524
8,055
150,434
7,967
2,430
3,129
23,760
36,585

27,451
19,828
27,013
4,197
8,536
7,666
148,730
7,155
1,769
3,157
22,425
37,201r

31,654
18,192'
27,674
4,058
9,027
7,262
150,830'
6,273
1,422
3,455'
21,613
35,609'

39,928
17,891
29,088
4,547
8,605
8,803
146,441
6,096
1,428
3,252
21,634
32,461

34,692
19,962
26,587
4,113
10,733
7,095
144,478
5,370
1,645
2,935
20,534
32,664

8,905
1,339
97
1,522
5
3,088
2,854

9,468
2,022
179
1,495
14
2,914
2,844

10,836
2,622
139
1,011
4
4,052
3,008

9,663
1,546
121
767
4
4,405
2,820

9,515
1,655
100
853
4
4,027
2,876

10,836
2,622
139
1,011
4
4,052
3,008

10,552
2,552
157
843
10
4,317
2,673

10,984
2,336
139
914
10
4,750
2,835

10,564
2,282
133
651
8
4,593
2,897

10,821
2,375
139
791
5
4,753
2,758

124 Other Countries
Australia
125
New Zealand20
126
All other
127

6,636
5,495
n.a.
1,141

9,788
8,377
n.a.
1,411

11,368
10,090
n.a.
1,278

11,671
10,562
n.a.
1,109

12,130
10,961
n.a.
1,169

11,368
10,090
n.a.
1,278

10,614
8,854
1,032
728

10,993
9,519
328
1,146

10,651
9,448
424
779

12,634
11,382
501
751

128 Nonmonetary international and regional organizations . .
International2'
129
130
Latin American regional22
Other regional23
131

11,883
10,221
594
1,068

15,276
12,876
1,150
1,250

12,561
11,288
740
533

17,104
16,133
582
389

17,074
16,068
523
483

12,561
11,288
740
533

10,939
9,024
1,493
422

11,597
10,811
223
534

11,646
10,734
272
640

12,214
10,715
327
620

89
90
91
92
93

117
118
119
120
121
122

123

Egypt
Morocco
South Africa
Congo (formerly Zaire)
Oil-exporting countries19
Other

2,386

12. Before January 2001, combined data reported for Belgium-Luxembourg.
13. Before January 2001, data included in United Kingdom.
14. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
15. Includes the Bank for International Settlements and European Central Bank. Since
December 1992, has included all parts of the former U.S.S.R. (except Russia) and Bosnia,
Croatia, and Slovenia.
16. Before January 2001, "Other Latin America" and "Other Caribbean" were reported as
combined "Other Latin America and Caribbean."
17. Beginning January 2001, Cayman Islands replaced British West Indies in the data
series.




18. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
19. Comprises Algeria, Gabon, Libya, and Nigeria.
20. Before January 2001, included in "All other."
21. Principally the International Bank for Reconstruction and Development. Excludes
"holdings of dollars" of the International Monetary Fund.
22. Principally the Inter-American Development Bank.
23. Asian, African, Middle Eastern, and European regional organizations, except the Bank
for International Settlements, which is included in "Other Europe."

Bank-Reported Data
3.18

A55

BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1
Payable in U.S. dollars
Millions of dollars, end of period
2001

2000
Area or country

1998

1999

2000
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.P
997,303

1 Total, all foreigners

734,995

793,139

911,879

879,626

882,419

911,879

961,897r

918,728r

991,105

2 Foreign countries

731,378

788,576

907,193

874,403

878,579

907,193

958,670r

915,411r

988,329

994,548

233,321
1,043
7,187
2,383
1,070
15,251
15,923
575
7,284
n.a.
5,697
827
669
789
5,735
4,223
46,874
1,982
106,349
n.a.
53
9,407

311,686
2,643
10,193
1,669
2,020
29,142
29,205
806
8,496
n.a.
11,810
1,000
1,571
713
3,796
3,264
79,158
2,617
115,971
n.a.
50
7,562

383,876
2,941
5,540
3,312
7,402
40,303
36,973
658
7,629
n.a.
17,294
5,012
1.382
517
2,848
9,301
82,383
3,175
148,875
n.a.
50
8,281

365,709
2,809
6,044
3,093
4,927
34,217
33,017
628
6,482
n.a.
16,165
4,655
1,574
647
3,360
8,504
103,818
2,831
122,829
n.a.
49
10,060

371,894
2,681
5,060
3,462
6,517
34,547
32,160
876
6,738
n.a.
15,975
6,159
1,249
663
2,593
8,815
107,986
3,260
125,223
n.a.
49
7,881

383,876
2,941
5,540
3,312
7,402
40,303
36,973
658
7,629
n.a.
17,294
5,012
1,382
517
2,848
9,301
82,383
3,175
148,875
n.a.
50
8,281

422,170r
3,664
4,635
3,402
6,772
43,290
39,744
526
6,310
2,825
18,864
2,971
1,109
518
3,808
10,353
102,545
3,300
154,339r
3,127r
50
10,018

406,999r
2,927
5,321
3,499
7,122
44,104
39,375
466
6,315
2,659
21,680
5,339
1,312
561
4,199
10,131
97,186
3,104
140,974'
3,23 l r
49
7,445

443,367
3,101
4,852
3,242
7,185
45,555
45,764
278
6,976
2,569
22,629
8,228
1,426
1,008
4,722
10,286
96,487
2,698
166,367
3,250
49
6,695

442,745
3,728
4,375
2,954
8,901
46,378
49,222
265
7,274
2,012
22,698
5,296
1,535
813
3,445
11,934
104,808
2,773
155,535
3,310
49
5,440

25 Canada

47,037

37,206

40,068

38,648

39,291

40,068

41,654r

42,487

43,839

45,097

76 Latin America
Argentina
27
?8
?9
Chile
Colombia
30
31
Ecuador
3?
Guatemala
33
Mexico
34
35
Peru
36
Uruguay
Venezuela
37
Other Latin America6
38

79,976
9,552
16,184
8,250
6,507
1,400
1,127
21,212
3,584
3,275
1,126
3,089
4,670

74,040
10,894
16,987
6,607
4,524
760
1,135
17,899
3,387
2,529
801
3,494
5,023

76,614
11,546
20,567
5,816
4,370
635
1,246
17,430
2,935
2,808
675
3,520
5,066

73,692
11,166
20,202
5,756
3,846
639
1,245
16,723
2,668
2,653
663
3,321
4,810

74,399
11,468
19,840
5,772
3,938
629
1,247
16,945
2,839
2,713
677
3,451
4,880

76,614
11,546
20,567
5,816
4,370
635
1,246
17,430
2,935
2,808
675
3,520
5,066

74,463r
11,317
20,372
6,223
3,816
563
1,364
17,598
2,775
2,689
641
3,306
3,799r

74,224r
11,612
20,008
5,961
3,941
584
1,176
17,918
2,908
2,673
455
3,264
3,724r

73,905
11,241
20,275
5,932
4,022
534
1,176
17,762
3,008
2,809
366
3,239
3,541

73,810
11,532
20,278
5,628
3,723
522
1,171
18,012
3,162
2,770
367
3,154
3,491

39 Caribbean
40
Bahamas
41
Bermuda
British West Indies7
4?
Caymen Islands7
43
Cuba
44
45
Jamaica
46
Netherlands Antilles
47
Trinidad and Tobago
Other Caribbean6
48

262,678
96,455
5,011
153,749
n.a.
0
239
6,779
445
n.a.

281,128
99,066
8,007
167,189
n.a.
0
295
5,982
589
n.a.

319,512
114,090
9,343
189,315
n.a.
0
355
5,801
608
n.a.

300,805
100,445
8,426
184,812
n.a.
0
379
6,158
585
n.a.

301,544
96,718
8,324
188,994
n.a.
0
355
6,554
599
n.a.

319,512
114,090
9,343
189,315
n.a.
0
355
5,801
608
n.a.

320,544r
109,284r
8,673
n.a.
187,790r
117
357
9,077
658
4,588r

299,191r
101,284r
7,138
n.a.
177,338r
0
331
7,156
663
5,281r

325,134
105,064
8,186
n.a.
199,345
n.a.
348
6,921
710
4,560

332,963
112,425
6,838
n.a.
199,790
3
332
9,384
783
3,408

98,607

75,143

78,762

87,682

83,359

78,762

90,332

81,896

87,626

83,562

1,261
1,041
9,080
1,440
1,942
1,166
46,713
8,289
1,465
1,807
16,130
8,273

2,110
1,390
5,903
1,738
1,776
1,875
28,641
9,426
1,410
1,515
14,267
5,092

1,606
2,247
6,715
2,178
1,914
2,729
35,109
7,784
1,784
1,381
10,091
5,224

1,912
3,691
6,540
1,787
2,009
1,551
35,773
18,589
1,473
1,046
9,867
3,444

1,644
2,483
6,454
1,736
1,958
1,911
36,467
16,189
1,758
1,221
8,487
3,051

1,606
2,247
6,715
2,178
1,914
2,729
35,109
7,784
1,784
1,381
10,091
5,224

1,562
1,037
7,458
1,886
2,075
2,343
38,901
18,736
1,217
1,170
10,549
3,398

1,530
1,365
8,506
1,700
1,987
3,249
34,778r
14,147
1,172
1,244
8,750r
3,468

1,338
1,846
11,068
1,827
2,001
2,339
39,311
12,186
1,195
1,258
9,120
4,137

3,171
2,253
10,461
1,675
2,033
2,526
32,969
13,937
1,835
1,062
7,936
3,704

3,122
257
372
643
0
936
914

2,268
258
352
622
24
276
736

2,151
201
204
366
0
471
909

2,291
201
252
322
0
656
860

1,977
184
235
341
0
342
875

2,151
201
204
366
0
471
909

2,176
170
182
492
19
582
731

1,899
271
185
544
0
153
746

2,111
343
189
586
0
217
776

2,035
308
185
444
0
267
831

69 Other countries
70
Australia
71
New Zealand 10
72
All other

6,637
6,173
n.a.
464

7,105
6,824
n.a.
281

6,210
5,961
n.a.
249

5,576
5,238
n.a.
338

6,115
5,937
n.a.
178

6,210
5,961
n.a.
249

7,331
6,906
283
142

8,715
8,377
207
131

12,347
12,013
208
126

14,336
13,832
325
179

73 Nonmonetary international and regional organizations" . .

3,617

4,563

4,686

5,223

3,840

4,686

3,363

3,317

2,776

2,755

3 Europe
4
Austria
5
Belgium2
6
Denmark
Finland
7
8
9
Germany
10
Greece
11
Italy
Luxembourg2
1?
13
Netherlands
Norway
14
Portugal
15
16
Russia
Spain
17
Sweden
18
19
Switzerland
70
Turkey
21
United Kingdom
Channel Islands & Isle of Man 3
77
?3
Yugoslavia4
Other Europe and other former U.S.S.R.5
24

49
50
51
5?
53
54
55
56
57
58
59
60
61

China
Mainland
Taiwan
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries8
Other

6?
63
64
65
66
67
68

Egypt
Morocco
South Africa
Congo (formerly Zaire)
Oil-exporting countries9
Other

1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.
2. Before January 2001, combined data reported for Belgium-Luxembourg.
3. Before January 2001, data included in United Kingdom.
4. Since December 1992, has excluded Bosnia, Croatia, and Slovenia.
5. Includes the Bank for International Settlements and European Central Bank. Since
December 1992, has included all parts of the former U.S.S.R. (except Russia), and Bosnia,
Croatia, and Slovenia.




6. Before January 2001, "Other Latin America" and "Other Caribbean" were reported as
combined "Other Latin America and Caribbean."
7. Beginning 2001, Cayman Islands replaced British West Indies in the data series.
8. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
9. Comprises Algeria, Gabon, Libya, and Nigeria.
10. Before January 2001, included in "All other."
11. Excludes the Bank for International Settlements, which is included in "Other Europe."

A56
3.19

International Statistics • August 2001
BANKS' OWN AND DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS
Payable in U.S. dollars

Reported by Banks in the United States'

Millions of dollars, end of period

2000

Type of claim

1998

1999

2001

2000

Oct.

Nov.

Dec.

Jan.r

Feb.r

961,897
52,989
647,273
102,473
23,908
78,565
159,162

918,728
54,219
610,256
99,088
25,679
73,409
155,165

1

Total

875,891

944,937

l,103,076 r

2
3
4
5
6
7
8

Banks' claims
Foreign public borrowers
Own foreign offices2
Unaffiliated foreign banks
Deposits
Other
All other foreigners

734,995
23,542
484,535
106,206
27,230
78,976
120,712

793,139
35,090
529,682
97,186
34,538
62,648
131,181

911,879
38,327
630,105
99,622
23,886
75,736
143,825

Claims of banks' domestic customers3
Deposits
Negotiable and readily transferable
instruments4
Outstanding collections and other
claims

140,896
79,363

151,798
88,006

191,197R
100,327R

191,197R
100,327R

210,747
105,554

47,914

51,161

78,147

78,147

91,827

13,619

12,631

12,723

12,723

13,366

9
10
11
12

l,103,076 r

Mar.

879,626
49,693
603,873
83,035
23,598
59,437
143,025

882,419
49,373
610,839
82,962
23,756
59,206
139,245

911,879
38,327
630,105
99,622
23,886
75,736
143,825

Apr.p

1,201,852
991,105
49,122
670,609
112,135
26,233
85,902
159,239

997,303
52,353
682,201
102,706
29,155
73,551
160,043

MEMO
13
14

Customer liability on acceptances
Banks' loans under resale agreements5

15

Dollar deposits in banks abroad, reported by
nonbanking business enterprises in the
United States6

4,520

4,553

n.a.

n.a.

39,978

31,125

4,258

4,258

n.a.

53,153

n.a.

n.a.

53,848

55,899

53,153

122,720

118,705

2,995
134,083

126,871

59,893

70,964

67,204

60,796

branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank.
3. Assets held by reporting banks in the accounts of their domestic customers.
4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial
paper.
5. Data available beginning January 2001.
6. Includes demand and time deposits and negotiable and nonnegotiable certificates of
deposit denominated in U.S. dollars issued by banks abroad.

1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are
for quarter ending with month indicated.
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 quarterly Consolidated Reports of Condition filed with bank regulatory
agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists
principally of amounts due from the head office or parent foreign bank, and from foreign

3.20

n.a.

BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS
Payable in U.S. dollars

Reported by Banks in the United States1

Millions of dollars, end of period
2001

2000
Maturity, by borrower and area2

1 Total
2
3
4
5
6
7

X
9
10
11
1?.
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
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less
Europe
Canada
Latin America and Caribbean
Africa
All other3
Maturity of more than one year
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other3

1997

1998

June

Sept.

Dec.r

Mar.p

276,550

250,418

267,082

268,905r

263,383

281,526

318,275

205,781
12,081
193,700
70,769
8,499
62,270

186,526
13,671
172,855
63,892
9,839
54,053

187,894
22,811
165,083
79,188
12,013
67,175

181,815r
24,849
156,966r
87,090
15,900
71,190

174,650
23,646
151,004
88,733
16,238
72,495

188,731
21,399
167,332
92,795
16,258
76,537

201,518
23,742
177,776
116,757
24,949
91,808

58,294
9,917
97,207
33,964
2,211
4,188

68,679
10,968
81,766
18,007
1,835
5,271

80,842
7,859
69,498
21,802
1,122
6,771

71,492
7,344
66,096
29,092r
1,520
6,271

69,447
8,225
65,881
23,791
1,594
5,712

73,253
8,395
77,304
22,751
1,168
5,860

89,639
7,069
72,423
20,737
970
10,680

13,240
2,525
42,049
10,235
1,236
1,484

14,923
3,140
33,442
10,018
1,232
1,137

22,951
3,192
39,051
11,257
1,065
1,672

25,417
3,323
42,291
12,550
924
2,585

27,589
3,261
41,168
13,132
895
2,688

33,483
3,312
41,870
10,154
891
3,085

42,341
3,249
50,222
17,176
763
3,006

1. Reporting banks include all types of depository institutions as well as some brokers and
dealers.




1999

2. Maturity is time remaining until maturity.
3. Includes nonmonetary international and regional organizations.

Bank-Reported Data
3.21

CLAIMS ON FOREIGN COUNTRIES

A57

Held by U.S. and Foreign Offices of U.S. Banks'

Billions of dollars, end of period
1999
Area or country

1997

2001

2000

1998
Mar.

June

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

721.8

1051.6

993.4

941.2

941.6

945.5

943.7

983.4

955.5

1034.9

1152.0

242.8
11.0
15.4
28.6
15.5
6.2
3.3
7.2
113.4
13.7
28.6

217.7
10.7
18.4
30.9
11.5
7.8
2.3
8.5
85.4
16.8
25.4

220.4
15.6
21.6
34.7
17.8
10.7
4.0
7.8
67.7
15.9
24.6

234.7
16.2
20.7
32.1
16.4
13.3
2.6
8.3
85.5
17.1
22.6

219.4
15.7
20.0
37.4
15.0
11.7
3.6
8.8
63.5
17.9
25.7

243.4
14.3
29.0
38.7
18.1
12.3
3.0
10.3
79.3
16.3
22.1

272.7
14.2
27.3
37.3
20.0
17.1
3.9
10.1
101.9
17.5
23.5

313.7
13.8
32.6
31.5
20.5
16.1
3.5
13.8
138.2
18.3
25.4

280.9
13.0
29.1
37.7
18.6
17.6
4.3
10.9
112.9
18.7
18.1

306.4
14.3
29.9
45.2
21.3
18.7
3.7
13.5
119.8
16.9
23.1

337.1
15.3
30.1
45.2
20.3
18.9
4.7
13.9
145.4
15.4
28.0

13 Other industrialized countries
14
Austria
Denmark
15
16
Finland
17
Greece
18
Norway
19
Portugal
20
Spain
Turkey
21
22
Other Western Europe
23
South Africa
24
Australia

65.5
1.5
2.4
1.3
5.1
3.6
.9
12.6
4.5
8.3
2.2
23.1

69.0
1.4
2.2
1.4
5.9
3.2
1.4
13.7
4.8
10.4
4.4
20.3

80.1
2.8
3.4
1.5
6.5
3.1
1.4
15.7
5.2
10.2
4.8
25.4

79.7
2.8
2.9
.9
5.9
3.0
1.2
16.6
4.9
10.3
4.7
26.6

71.7
3.0
2.1
.9
6.6
3.8
1.2
15.1
4.7
9.2
4.0
21.1

68.4
3.5
2.6
.9
6.0
3.3
1.0
12.1
4.8
6.8
3.8
23.5

62.8
2.6
1.5
.8
5.7
3.0
1.0
11.3
5.1
8.4
4.9
18.6

75.2
2.8
1.2
1.2
6.8
4.6
2.0
12.2
5.6
8.0
4.6
26.3

73.8
3.5
1.8
2.8
6.4
8.5
1.5
10.5
5.6
8.4
4.2
20.5

75.3
4.1
1.9
1.5
8.3
8.3
2.0
10.6
6.0
6.7
3.7
22.2

82.1
3.8
3.1
1.4
4.1
10.2
1.9
12.6
5.2
7.4
4.1
28.2

25 OPEC 2
?6
Ecuador
7.7
Venezuela
28
Indonesia
29
Middle East countries
African countries
30

26.0
1.3
2.5
6.7
14.4
1.2

27.1
1.3
3.2
4.7
17.0
1.0

26.2
1.2
3.5
4.5
16.7
.4

26.2
1.1
3.2
5.0
16.5
.5

30.1
.9
3.0
4.4
21.4
.5

31.4
.8
2.8
4.2
23.1
.5

28.9
.7
3.0
3.9
21.1
.2

32.3
.7
2.9
4.1
24.0
.7

31.8
.6
2.9
4.4
22.7
1.2

29.6
.6
2.5
4.6
21.1
.8

28.2
.6
2.7
4.4
20.1
.5

139.2

143.4

146.4

148.6

144.6

149.4

154.9

158.3

149.6

145.7

144.6

Other

18.4
28.6
8.7
3.4
17.4
2.0
4.1

23.1
24.7
8.3
3.2
18.9
2.2
5.4

24.4
24.2
8.6
3.3
19.7
2.2
5.3

22.8
25.2
8.2
3.1
18.5
2.1
5.5

22.8
23.5
7.7
2.7
19.4
1.8
5.5

23.2
27.7
7.4
2.5
18.7
1.7
5.9

22.4
28.1
8.2
2.5
18.3
1.9
6.6

21.6
28.3
8.1
2.4
20.4
2.1
6.9

21.4
28.6
7.3
2.4
17.5
2.1
6.4

21.4
28.8
7.6
2.4
15.7
2.0
6.5

20.8
29.4
7.4
2.4
16.7
2.0
8.7

39
40
41
42
43
44
45
46
47

Asia
China
Mainland
Taiwan
India
Israel
Korea (South)
Malaysia
Philippines
Thailand
Other Asia

3.2
9.5
4.9
.7
15.6
5.1
5.7
5.4
4.3

3.0
13.3
5.5
1.1
13.7
5.6
5.1
4.7
2.9

5.0
11.8
5.5
1.1
13.7
5.9
5.4
4.5
3.0

5.3
12.6
6.7
2.0
15.3
6.0
5.7
4.2
2.8

3.3
12.3
7.0
1.0
16.0
6.1
5.8
4.0
2.9

3.6
12.0
7.7
1.8
15.2
6.1
6.2
4.1
2.9

4.6
12.6
7.9
3.3
17.3
6.5
5.3
4.3
2.6

3.8
12.6
8.2
1.5
21.1
6.8
5.3
4.0
2.5

3.4
12.8
5.8
1.1
20.8
6.9
4.7
3.9
2.3

2.9
10.8
9.1
2.7
15.1
7.1
5.1
4.0
2.4

3.4
11.1
6.5
2.2
19.3
6.5
5.2
4.2
2.2

48
49
50
51

Africa
Egypt
Morocco
Zaire
Other Africa 3

.9
.6
.0
.8

1.3
.5
.0
1.0

1.4
.5
.0
.9

1.4
.5
.0
1.0

1.3
.5
.0
1.0

1.4
.4
.0
1.0

1.4
.3
.0
.9

1.3
.3
.0
.9

1.1
.4
.0
.8

1.1
.3
.0
.7

1.2
.3
.0
.7

9.1
5.1
4.0

5.5
2.2
3.3

6.8
2.0
4.8

5.7
2.1
3.7

5.4
2.0
3.4

5.2
1.6
3.6

6.3
1.7
4.7

9.4
1.5
7.9

9.0
1.4
7.6

10.1
1.0
9.1

9.5
1.5
8.0

155.1
24.2
9.8
43.4
14.6
3.1
.1
32.2
12.7
.1
99.1

134.4
35.4
4.6
12.8
2.6
3.9
.1
23.3
11.1
.2
495.1

114.4
22.0
3.9
13.9
2.7
3.9
.1
22.8
13.5
.2
430.4

107.5
10.4
5.7
7.2
1.3
3.9
.1
22.0
15.2
.1
380.2

122.5
18.2
8.2
6.3
9.1
3.9
.2
22.4
10.6
.2
391.2

114.5
13.7
8.0
1.3
1.7
3.9
.1
21.0
10.1
.1
387.9

42.0
2.4
7.3
.0
2.5
3.4
.1
22.2
4.1
.1
376.1

47.2
.5
6.3
5.1
2.6
3.3
.1
20.7
13.6
.1
342.1

53.4
9.3
6.3
5.9
1.9
2.5
.1
20.6
12.6
.1
351.1

61.8
13.5
9.0
14.6
1.9
3.2
.1
18.8
15.2
.2
391.2

57.9
7.0
7.9
14.3
2.9
3.8
.1
21.7
14.5
.1
472.7

1 Total
2 G-10 countries and Switzerland
3
Belgium and Luxembourg
4
France
5
Germany
6
Italy
7
Netherlands
8
Sweden
9
Switzerland
10
United Kingdom
11
Canada
12
Japan

31 Non-OPEC developing countries
32
33
34
35
36
37
38

Latin America
Argentina
Brazil
Chile
Colombia
Mexico

52 Eastern Europe
53
Russia4
54
Other
55 Offshore banking centers
56
Bahamas
57
Bermuda
Cayman
Islands and other British West Indies
58
59
Netherlands Antilles
60
Panama5
61
Lebanon
Hong Kong, China
62
Singapore
63
64
Other 6
65 Miscellaneous and unallocated7

1. The banking offices covered by these data include U.S. offices and foreign branches of
U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered
include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include
large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository
institutions as well as some types of brokers and dealers. To eliminate 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.
These data are on a gross claims basis and do not necessarily reflect the ultimate country
risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks
are available in the quarterly Country Exposure Lending Survey published by the Federal
Financial Institutions Examination Council.




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. Beginning March 1994 includes Namibia.
4. As of December 1992, excludes other republics of the former Soviet Union.
5. Includes Canal Zone.
6. Foreign branch claims only.
7. Includes New Zealand, Liberia, and international and regional organizations.

A58
3.22

International Statistics • August 2001
L I A B I L I T I E S T O U N A F F I L I A T E D F O R E I G N E R S R e p o r t e d b y N o n b a n k i n g B u s i n e s s Enterprises in
the U n i t e d States
Millions of dollars, end of period

1999
Type of liability, and area or country

1997

1998

2000

2001

1999
Dec.

Mar.

June

Sept.

Dec.

Mar.p

1 Total

57,382

46,570

53,044

53,044

53,489

70,534

76,644

73,904r

74,484

2 Payable in dollars
3 Payable in foreign currencies

41,543
15,839

36,668
9,902

37,605
15,415

37,605
15,415

35.614
17,875

47,864
22,670

51,451
25,193

48,93 l r
24,973r

46,870
27,614

By type
4 Financial liabilities
Payable in dollars
5
6
Payable in foreign currencies

26,877
12,630
14,247

19,255
10,371
8,884

27,980
13,883
14,097

27,980
13,883
14,097

29,180
12,858
16,322

44,068
22,803
21,265

49,895
26,159
23,736

47,419
25,246
22,173

48,461
23,369
25,092

7 Commercial liabilities
8
Trade payables
Advance receipts and other liabilities
y

30,505
10,904
19,601

27,315
10,978
16,337

25,064
12,857
12,207

25,064
12,857
12,207

24.309
12,401
11,908

26,466
13,764
12,702

26,749
13,918
12,831

26,485r
14,293r
12,192r

26,023
12,657
13,366

10
n

Payable in dollars
Payable in foreign currencies

28,913
1,592

26,297
1,018

23,722
1,318

23,722
1,318

22,756
1,553

25,061
1,405

25,292
1,457

23,685r
2,800r

23,501
2,522

12
13
14
15
16
17
18

By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

18,027
186
1,425
1,958
494
561
11,667

12,589
79
1,097
2,063
1,406
155
5,980

23,241
31
1,659
1,974
1,996
147
16,521

23,241
31
1,659
1,974
1,996
147
16,521

24,050
4
1,849
1,880
1,970
97
16,579

30,332
163
1,702
1,671
2,035
137
21,463

36,175
169
1,299
2,132
2,040
178
28,601

34,172
147
1,480
2,168
2,016
104
26,362

37,990
112
1,557
2,745
2,169
116
29,241

19

Canada

2,374

693

284

284

313

714

249

411

719

20
21
22
23
24
25
26

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,386
141
229
143
604
26
1

1,495
7
101
152
957
59
2

892
1
5
126
492
25
0

892
1
5
126
492
25
0

846
1
1
128
489
22
0

2,874
78
1,016
146
463
26
0

3,447
105
1,182
132
501
35
0

4,125
6
1,739
148
406
26
2

3,651
18
1,837
26
410
32
1

27
28
29

Asia
Japan
Middle Eastern oil-exporting countries'

4,387
4,102
27

3,785
3,612
0

3,437
3,142
4

3,437
3,142
4

3,275
2,985
4

9,453
6,024
5

9,320
4,782
7

7,965
6,216
11

5,389
4,779
15

30
31

Africa
Oil-exporting countries2

60
0

28
0

28
0

28
0

28
0

33
0

48
0

52
0

38
0

643

665

98

98

668

662

656

694

674

10,228
666
764
1,274
439
375
4,086

10,030
278
920
1,392
429
499
3,697

9,262
140
672
1,131
507
626
3,071

9,262
140
672
1,131
507
626
3,071

8,646
78
539
914
648
536
2,661

9,293
178
711
948
562
565
2,982

9,411
201
716
1,023
424
647
2,951

9,629r
293
979
1,047r
300r
502
2,847r

8,950
251
689
982
373
656
2,619

32
33
34
35
36
37
38
39

All other3
Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

40

Canada

1,175

1,390

1,775

1,775

2,024

2,053

1,889

l,933r

1,627

41
42
43
44
45
46
47

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

2,176
16
203
220
12
565
261

1,618
14
198
152
10
347
202

2,310
22
152
145
48
887
305

2,310
22
152
145
48
887
305

2,286
9
287
115
23
805
193

2,607
10
300
119
22
1,073
239

2,443
15
377
167
19
1,079
124

2,381
31
281
114
76
841
284

2.166
5
280
239
64
792
243

48
49
50

Asia
Japan
Middle Eastern oil-exporting countries'

14,966
4,500
3,111

12,342
3,827
2,852

9,886
2,609
2,551

9,886
2,609
2,551

9,681
2,274
2,308

10,965
2,200
3,489

11,133
1,998
3,706

10,983r
2,757r
2,832r

11,558
2,432
3,359

51
52

Africa
Oil-exporting countries2

874
408

794
393

950
499

950
499

y43
536

950
575

1,220
663

948r
483r

1.072
566

53

Other3

1,086

1,141

881

881

729

598

653

614r

650

1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).




2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.

Nonbank-Reported Data
3.23

CLAIMS ON UNAFFILIATED FOREIGNERS
the United States

A59

Reported by Nonbanking Business Enterprises in

Millions of dollars, end of period

1 Total

1997

68,128

1998

77,462

2001

2000

1999
Type of claim, and area or country

1999

76,669

Sept.

Dec.

Mar.p

80,73l r

94,803

90,157r

109,443

r

82,872
11,931

79,558r
10,599r

96,230
13,213

Dec.

Mar.

June

76,669

84,266

62,173
5,955

72,171
5,291

69,170
7,472

69,170
7,472

74,331
9,935

72,300
8,431

By type
4 Financial claims
5
Deposits
6
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
9
Payable in dollars
10
Payable in foreign currencies

36,959
22,909
21,060
1,849
14,050
11,806
2,244

46,260
30,199
28,549
1,650
16,061
14,049
2,012

40,231
18,566
16,373
2,193
21,665
18,593
3,072

40,231
18,566
16,373
2,193
21,665
18,593
3,072

47,798
23,316
21,442
1,874
24,482
19,659
4,823

44,303
17,462
15,361
2,101
26,841
22,384
4,457

58,303
30,928
27,974
2,954
27,375
20,541
6,834

53,031
23,374
21,015
2,359
29,657
25,142
4,515

74,458
29,119
26,944
2,175
45,339
37,480
7,859

11 Commercial claims
12
Trade receivables
13
Advance payments and other claims

31,169
27,536
3,633

31,202
27,202
4,000

36,438
32,629
3,809

36,438
32,629
3,809

36,468
31,443
5,025

36,428r
31,283r
5,145

36,500
31,530
4,970

37,126r
33,104r
4,022 r

34,985
30,493
4,492

14
15

Payable in dollars
Payable in foreign currencies

29,307
1,862

29,573
1,629

34,204
2,207

34,204
2,207

33,230
3,238

34,555r
1,873

34,357
2,143

33,40 r
3,725r

31,806
3,179

16
17
18
19
20
7.1
22

By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

14,999
406
1,015
427
677
434
10,337

12,294
661
864
304
875
414
7,766

13,023
529
967
504
1,229
643
7,561

13,023
529
967
504
1,229
643
7,561

16,789
540
1,835
669
1,981
612
9,044

18,254
317
1,292
576
1,984
624
11,668

23,706
304
1,477
696
2,486
626
16,191

23,136
296
1,206
848
1,396
699
15,900

31,946
430
3,149
1,405
2,313
605
21,070

2 Payable in dollars
3 Payable in foreign currencies

3,313

2,503

2,553

2,553

3,175

5,799

7,517

4,576

4,854

15,543
2,308
108
1,313
10,462
537
36

27,714
403
39
835
24,388
1,245
55

18,206
1,593
11
1,476
12,099
1,798
48

18,206
1,593
11
1,476
12,099
1,798
48

21,945
1,299
11
1,646
15,814
1,979
65

14,874
655
34
1,666
7,751
2,048
78

21,691
1,358
22
1,568
15,722
2,280
101

19,317
1,353
19
1,827
12,596
2,448
87

28,674
561
1,729
1,564
16,366
2,459
31

2,133
823
11

3,027
1,194
9

5,457
3,262
23

5,457
3,262
23

4,430
2,021
29

3,923
1,410
42

4,002
1,726
85

4,697
1,631
80

7,444
4,065
70

Africa
Oil-exporting countries2

319
15

159
16

286
15

286
15

232
15

320
39

284
3

411
57

423
42

All other1

652

563

706

706

1,227

1,133

1,103

894

1,117

12,120
328
1,796
1,614
597
554
3,660

13,246
238
2,171
1,822
467
483
4,769

16,389
316
2,236
1,960
1,429
610
5,827

16,389
316
2,236
1,960
1,429
610
5,827

16,118
271
2,520
2,034
1,337
611
5,354

15,935r
425
2,693r
l,905 r
1,242
562r
4,937r

16,486
393
2,921
2,159
1,310
684
5,193

15,938
452
3,095
1,982
1,729
763
4,502

14,534
395
3,480
1,763
757
666
4,031

23

Canada

74
25
7.6
27
78
29
30

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

31
32
33
34
35
36
37
38
39
40
41
42
43

Japan
Middle Eastern oil-exporting countries'

Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

44

Canada

2,660

2,617

2,757

2,757

3,088

3,250

2,953

3,502r

3,393

45
46
47
48
49
50
51

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

5,750
27
244
1,162
109
1,392
576

6,296
24
536
1,024
104
1,545
401

5,959
20
390
905
181
1,678
439

5,959
20
390
905
181
1.678
439

5,899
15
404
849
95
1,529
435

5,792
48
381
894
51
1,565
466

5,788
75
387
981
55
1,612
379

5,85 l r
37
376
957r
137
1,507
328r

5,306
20
418
1,057
131
1,418
292

8,713
1,976
1,107

7,192
1,681
1,135

9,165
2,074
1,625

9,165
2,074
1,625

9,101
2,082
1,533

9,172r
1,881r
1,241

8,986
2,074
1,199

9,630r
2,796r
1,024

9,544
2,575
966

680
119

711
165

631
171

631
171

716
82

766
160

895
392

672r
180r

773
165

1,246

1,140

1,537

1,537

1,546

1,513

1,392

l,572 r

1,435

"52
53
54

Japan
Middle Eastern oil-exporting countries'

55
56

Africa
Oil-exporting countries2

57

Other1

1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).




2. Comprises Algeria, Gabon, Libya, and Nigeria.
3. Includes nonmonetary international and regional organizations.

A60
3.24

International Statistics • August 2001
FOREIGN T R A N S A C T I O N S IN SECURITIES
Millions of dollars

2001
Transaction, and area or country

1999

2000

2001

2000
Jan.Apr.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr?

301,650
277,706

259,101
249,423

285,528
277,473

251,004
243,731

U.S. corporate securities
STOCKS

1 Foreign purchases
2 Foreign sales

2,340,659
2,233,137

3,605,196
3,430,306

3 Net purchases, or sales (—)

107,522

174,890

4 Foreign countries

107,578

174,903

98,060
3,813
13,410
8,083
5,650
42,902
0
-335
5,187
-1,066
4,445
5,723
372
915

164,656
5,727
31,752
4,915
11,960
58,736
0
5,956
-17,812
9,189
12,494
2,070
415
5

-56

20 Foreign purchases
21 Foreign sales

1,097,283
1,048,333

339,995
323,659

284,909
275,855

48,950

16,336

9,054

11,127

23,944

9,678

8,055

7,273

48,837

16,338

9,068

11,145

23,906

9,707

7,929

7,295

37,733
3,260
3,974
5,487
2,222
12,065
-299
5,993
-4,164
96
10,198
3,517
-261
-758

14,040
1,757
1,383
-135
488
6,283
0
194
-4,400
754
5,840
2,640
-27
-63

7,485
408
988
323
-598
3,210
0
1,477
-2,979
340
3,310
662
80
-645

10,779
40

1,691
-684
7,773
0
1,468
-2,759
277
1,451
1,615
-45
-26

12,329
243
2,380
2,206
70
3,064
-13
1,490
5,445
-554
5,565
1,002
-362
-7

13,713
1,869
1,217
1,379
775
5,120
-32
468
-4,927
264
355
-672
52
-218

7,983
1,041
174
790
1,237
3,280
-110
2,464
-3,516
442
684
512
93
-221

3,708
107
203
1,112
140
601
-144
1,571
-1,166
-56
3,594
2,675
-44
-312

-11

113

-2

-14

-18

38

-29

126

-22

854,692
602,100

1,206,662
871,418

605,411
455,750

103,028
71,686

114,686
77,596

117,904
90,143

138,294
111,327

147,852r
108,792

170,098
124,000

149,167
111,631

22 Net purchases, or sales (—)

252,592

335,244

149,661

31,342

37,090

27,761

26,967

39,060r

46,098

37,536

23 Foreign countries

252,994

335,348

149,474

31,356

37,224

27,759

27,065

39,019r

45,880

37,510

24
25
26
27
28
29
30
31
32
33
34
35
36
37

140,674
1,870
7,723
2,446
4,553
106,344
0
6,043
58,783
1,979
42,817
17,541
1,411
1,287

179,706
2,216
4,067
1,130
3,833
140,152
0
13,287
59,443
2,076
78,280
38,842
938
1,618

84,036
2,846
6,352
1,211
3,376
61,954
644
2,874
27,088
1,922
32,813
7,863
80
661

16,965
347
433
848
350
12,503
0
897
5,018
-54
8,215
3,690
58
257

16,522
272
537
183
483
12,952
0
1,179
6,600
437
11,839
7,435
25
622

16,560
138
-78
275
-89
12,825
0
414
4,126
1,077
5,535
2,932
76
-29

17,397
405
2,450
664
321
11,251
107
376
4,969
726
3,514
910
29
54

22,064r
660
1,352
496
782
17,893r
118
1,031
8,009
443
7,162
914
46
264

26,420
1,262
911
92
1,564
20,347
101
309
6,564
624
11,683
5,570
38
242

18,155
519
1,639
-41
709
12,463
318
1,158
7,546
129
10,454
469
-33
101

-402

-70

188

-14

-134

2

-97

218

26

5 Europe
6
France
7
Germany
Netherlands
8
9
Switzerland
10
United Kingdom
11 Channel Islands & Isle of Man1
12 Canada
13 Latin America and Caribbean
14 Middle East2
15 Other Asia
16
Japan
17 Africa
18 Other countries
19 Nonmonetary international and
regional organizations

286,161
275,034

111

BONDS 3

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Channel Islands & Isle of Man1
Canada
Latin America and Caribbean
Middle East1
Other Asia
Japan
Africa
Other countries

38 Nonmonetary international and
regional organizations

41

Foreign securities
39 Stocks, net purchases, or sales (—)
Foreign purchases
40
41
Foreign sales
42 Bonds, net purchases, or sales (—)
Foreign purchases
43
44
Foreign sales
45 Net purchases, or sales ( - ) , of stocks and bonds
46 Foreign countries
47
48
49
50
51
52
53

Europe
Canada
Latin America and Caribbean
Asia
Japan
Africa
Other countries

54 Nonmonetary international and
regional organizations

....

15,640
1,177,303
1,161,663
-5,676
798,267
803,943

-9,297
1,802,452
1,811,749
-3,878
959,408
963,286

-27,230
534,308
561,538
4,353
437,783
433,430

3,011
152,872
149,861
-3,443
98,519
101,962

5,563
141,600
136,037
8,434
94,938
86,504

-3,195
135,417
138,612
-1,175
83,721
84,896

-2,940
148,111
151,051
-1,360
120,666
122,026

-2,491
130,972
133,463
1,994r
104,235'
102,241'

-14,540
134,166
148,706
-1,450
117,444
118,894

-7,259
121,059
128,318
5,169
95,438
90,269

9,964

-13,175

-22,877

-432

13,997

—4,370

—4,300

—497r

-15,990

-2,090

9,679

-13,311

—22,310

-599

13,758

-3,951

-4,011

-536r

-15,685

-2,078

59,247
-999
-4,726
-42,961
-43,637
710
-1,592

-23,609
-3,856
-15,116
25,975
21,886
947
2,348

-15,873
1,838
-995
-6,732
-8,691
37
-585

-3,879
1,813
1,010
-73
-1,262
14
516

7,373
574
-521
5,742
2,067
-28
618

-4,452
-1,357
-205
1,872
1,824
-4
195

-4,878
767
863
-1,005
164
-70
312

-1,421'
1,588
811
-1,148
-1,963
-15
-351

-13,487
876
34
-3,221
-3,866
25
88

3,913
-1,393
-2,703
-1,358
-3,026
97
-634

285

150

-567

167

239

-419

-289

39

-305

-12

1. Before January 2001, these data were included in United Kingdom.
2. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar,
Saudi Arabia, and United Arab Emirates (Trucial States).




3. 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.

Securities Holdings and Transactions
3.25

MARKETABLE U.S. TREASURY BONDS AND NOTES

A61

Foreign Transactions'

Millions of dollars; net purchases, or sales (—) during period
2000

2001
Area or country

1999

2001

2000
Jan.Apr.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.P

1 Total estimated

-9,953

-53,790

-10,825

-3,037

-14,106

-9,789

-9,064

7,011

4,975

-13,747

2 Foreign countries

-10,518

-53,329

-10,135

-3,222

-13,959

-9,904

-8,531

6,972

4,977

-13,553

-38,228
-81
2,285
0
2,122
1,699
-1,761
-20,232
0
-22,260
7,348

-50,704
73
-7,304
0
2,140
1,082
-10,326
-33,669
0
-2,700
-308

-5,573
88
-1,048
223
-4,177
-1,619
912
3,344
25
-1,525
-1,542

-3,707
320
1,424
0
183
-118
-57
-3,793
0
-1,666
160

-10,991
53
-2,185
0
264
-104
-301
-6,035
0
-2,683
-1,173

-6,850
-96
-1,065
0
-1,622
328
64
-4,199
0
-260
-1,492

-5,000
0
-873
411
-793
218
755
-2,695
-98
-2,089
-2,067

-337
0
-3,180
9
2,808
-1,039
161
937
-68
564
-554

5,363
-152
1,236
-401
-3,704
-993
-120
9,838
222
-868
-169

-5,599
240
1,769
204
-2,488
195
116
-4,736
-31
-563
1,248

-4,914 -574,505
1,288
229
-11,581
7,321
5,379
-7,791
1,639
-3,259
10,580
-1,156
-414
-88
1,372
568

3,963
152
3,030
781
-4,688
1,608
-6
1,056

-507
251
-1,262
504
-1,289
4,445
-16
17

-245
300
-1,746
1,201
-458
-3,855
-44
-815

2,407
227
3,261
-1,081
-4,641
-4,261
-91
861

3,620
292
4,279
-951
4,387
1,468
36
-180

827
-142
3,009
-2,040
-41
-1,426
-60
-943

-7,095
-148
-3,228
-3,719
-2,964
3,063
27
830

115
24
6

-533
-275
1

39
-194
-4

-2
-11
10

-194
-213
25

3
4
5
6
7
8
9
10
11
12
13

Europe
Belgium"
Germany
Luxembourg"
Netherlands
Sweden
Switzerland
United Kingdom
Channel Islands and Isle of Man 3
Other Europe and former U.S.S.R
Canada

14
15
16
17
18
19
70
21

Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Japan
Africa
Other

22 Nonmonetary international and regional organizations
International
7.3
24
Latin American Caribbean regional

-7,523
362
1,661
-9,546
29,359
20,102
-3,021
1,547
565
190
666

-461
-483
76

-690
-693
32

185
39
28

—147
-146

-10,518
-9,861
-657

-53,329
-6,302
-47,027

-10,135
-5,898
-4,237

-3,222
-7,150
3,928

-13,959
-4,967
-8,992

-9,904
1,068
-10,972

-8,531
2,226
-10,757

6,972
667
6,305

4,977
249
4,728

-13,553
-9,040
-4,513

2,207
0

3,483
0

-2,518
-4

-724
0

-888
0

48
0

-176
-6

-719
0

-1,240

-383
0

-1

MEMO
75

76
27

Foreign countries
Official institutions
Other foreign

Oil-exporting countries
78 Middle East 4
29 Africa 5

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. Before January 2001, combined data reported for Belgium and Luxembourg.




2

3. Before January 2001, these data were included in United Kingdom.
4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab
Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.

A62
3.28

International Statistics • August 2001
F O R E I G N E X C H A N G E R A T E S A N D I N D E X E S O F T H E F O R E I G N E X C H A N G E V A L U E O F T H E U.S. D O L L A R 1
Currency units per U.S. dollar except as noted
2001
Item

1998

1999

2000
Jan.

Feb.

Mar.

Apr.

May

June

Exchange rates
COUNTRY/CURRENCY UNIT
1
2
3
4
5
6
7
8
9
10
11
12

Australia/dollar2
Austria/schilling
Belgium/franc
Brazil/real
Canada/dollar
China, P.R./yuan
Denmark/krone
European Monetary Union/euro3 . .
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma

13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

62.91
12.379
36.31
1.1605
1.4836
8.3008
6.7030
n.a.
5.3473
5.8995
1.7597
295.70

64.54
n.a.
n.a.
1.8207
1.4858
8.2783
6.9900
1.0653
n.a.
n.a.
n.a.
306.30

58.15
n.a.
n.a.
1.8301
1.4855
8.2784
8.0953
0.9232
n.a.
n.a.
n.a.
365.92

55.52
n.a.
n.a.
1.9561
1.5032
8.2776
7.9629
0.9376
n.a.
n.a.
n.a.
n.a.

53.38
n.a.
n.a.
2.0060
1.5216
8.2771
8.1103
0.9205
n.a.
n.a.
n.a.
n.a.

50.31
n.a.
n.a.
2.0955
1.5587
8.2775
8.2229
0.9083
n.a.
n.a.
n.a.
n.a.

50.16
n.a.
n.a.
2.1934
1.5578
8.2771
8.3657
0.8925
n.a.
n.a.
n.a.
n.a.

51.99
n.a.
n.a.
2.2926
1.5411
8.2770
8.5256
0.8753
n.a.
n.a.
n.a.
n.a.

51.80
n.a.
n.a.
2.3788
1.5245
8.2770
8.7397
0.8530
n.a.
n.a.
n.a.
n.a.

Hong Kong/dollar
India/rupee
Ireland/pound2
Italy/lira
Japan/yen
Malaysia/ringgit
Mexico/peso
Netherlands/guilder
New Zealand/dollar2
Norway/krone
Portugal/escudo

7.7467
41.36
142.48
1,736.85
130.99
3.9254
9.152
1.9837
53.61
7.5521
180.25

7.7594
43.13
n.a.
n.a.
113.73
3.8000
9.553
n.a.
52.94
7.8071
n.a.

7.7924
45.00
n.a.
n.a.
107.80
3.8000
9.459
n.a.
45.68
8.8131
n.a.

7.7998
46.61
n.a.
n.a.
116.67
3.8000
9.769
n.a.
44.42
8.7817
n.a.

7.7999
46.56
n.a.
n.a.
116.23
3.8000
9.711
n.a.
43.45
8.9180
n.a.

7.7999
46.65
n.a.
n.a.
121.51
3.8000
9.599
n.a.
41.82
8.9859
n.a.

7.7993
46.79
n.a.
n.a.
123.77
3.8000
9.328
n.a.
40.69
9.0920
n.a.

7.7999
46.95
n.a.
n.a.
121.77
3.8000
9.148
n.a.
42.18
9.1380
n.a.

7.7997
47.04
n.a.
n.a.
122.35
3.8000
9.088
n.a.
41.41
9.3014
n.a.

Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound2
Venezuela/bolivar

1.6722
5.5417
1,400.40
149.41
65.006
7.9522
1.4506
33.547
41.262
165.73
548.39

1.6951
6.1191
1,189.84
n.a.
70.868
8.2740
1.5045
32.322
37.887
161.72
606.82

1.7250
6.9468
1,130.90
n.a.
76.964
9.1735
1.6904
31.260
40.210
151.56
680.52

1.7380
7.7786
1,272.63
n.a.
85.833
9.4910
1.6305
32.673
43.149
147.75
700.02

1.7435
7.8214
1,252.85
n.a.
87.136
9.7518
1.6686
32.330
42.665
145.25
703.36

1.7732
7.8980
1,291.41
n.a.
85.730
10.0516
1.6908
32.622
43.988
144.45
706.06

1.8118
8.0783
1,327.76
n.a.
88.205
10.2035
1.7131
32.941
45.494
143.48
710.39

1.8141
7.9789
1,298.90
n.a.
90.848
10.3513
1.7528
33.203
45.525
142.65
714.86

1.8170
8.0595
1,295.05
n.a.
90.371
10.7930
1.7856
34.328
45.263
140.20
717.27

Indexes4
NOMINAL

35 Broad (January 1997= 100)5
36 Major currencies (March 1973= 100)6 . .
37 Other important trading partners (January
1997= 100)7

116.48
95.79

116.87
94.07

119.93
98.34

123.14
100.24

123.77
101.44

125.91
103.98

126.97
105.09

126.77
105.03

127.58
105.91

126.03

129.94

130.26

135.01

134.52

135.56

136.30

135.92

136.43

99.49r
97.23

98.81r
96.66

102.49r
102.85

105.56r
105.90r

106.27r
107.29

108.13r
109.90

109.02r
110.99r

108.98r
110.79'

110.09
112.13

107.98r

r

r

r

r

r

r

114.30

REAL

38 Broad (March 1973 = 100)5
39 Major currencies (March 1973 = 100)6 . . .
40 Other important trading partners (March
1973 = 100)7

108.86r

108.44

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. U.S. cents per currency unit.
3. The euro is reported in place of the individual euro area currencies. By convention, the
rate is reported in U.S. dollars per euro. The bilateral currency rates can be derived from the
euro rate by using the fixed conversion rates (in currencies per euro) as shown below:
Euro equals
13.7603
40.3399
5.94573
6.55957
1.95583
.787564

Austrian schillings
Belgian francs
Finnish markkas
French francs
German marks
Irish pounds




1936.27
40.3399
2.20371
200.482
166.386
340.750

Italian lire
Luxembourg francs
Netherlands guilders
Portuguese escudos
Spanish pesetas
Greek drachmas

111.73

111.59

112.57

113.27

113.43

4. Starting with the February 2001 Bulletin, revised index values resulting from the annual
revision of data that underlie the calculated trade weights are reported. For more information
on the indexes of foreign exchange value of the dollar, see Federal Reserve Bulletin, vol. 84
(October 1998), pp. 811-818.
5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies
of a broad group of U.S. trading partners. The weight for each currency is computed as an
average of U.S. bilateral import shares from and export shares to the issuing country and of a
measure of the importance to U.S. exporters of that country's trade in third country markets.
6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that circulate widely outside the country of issue. The weight for each
currency is its broad index weight scaled so that the weights of the subset of currencies in the
index sum to one.
7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of
broad index currencies that do not circulate widely outside the country of issue. The weight
for each currency is its broad index weight scaled so that the weights of the subset of
currencies in the index sum to one.

63

Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference
Anticipated schedule of release dates for periodic releases

Issue
June 2001

Page
A72

Issue

Page

November
February
May
August

2000
2001
2001
2001

A64
A64
A64
A64

November
February
May
August

2000
2001
2001
2001

A66
A66
A66
A66

November
February
May
August

2000
2001
2001
2001

A72
A72
A72
A72

November 2 0 0 0
February 2001
August 2001

A76
A76
A76

September 1999
September 2000

A64
A64

September 1999
September 2000

A73
A73

September 1999
September 2000

A76
A76

September 1999
September 2000

A79
A79

SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference
Title and Date
Assets and liabilities

of commercial

banks

June 30, 2000
September 30, 2000
December 31, 2000
March 3 1 , 2 0 0 1
Terms of lending at commercial
August 2000
November 2000
February 2001
May 2001

banks

Assets and liabilities of U.S. branches and agencies
June 30, 2000
September 30, 2000
December 31, 2000
March 3 1 , 2 0 0 1

of foreign

banks

Pro forma balance sheet and income statements for priced service
June 30, 2000
September 30, 2000
March 3 1 , 2 0 0 1

operations

Residential
1998
1999

lending reported

Act

Disposition
1998
1999

of applications

Small loans to businesses
1998
1999
Community
1998
1999

development




under the Home Mortgage

for private

mortgage

Disclosure

insurance

and farms

lending reported under the Community Reinvestment

Act

A64
4.20

Special Tables • August 2001
DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities
Consolidated Report of Condition, March 31, 2001
Millions of dollars except as noted

Banks with foreign offices'
Total

1 Total assets
2 Cash and balances due from depository institutions
3
Cash items in process of collection, unposted debits, and currency and coin
4
Cash items in process of collection and unposted debits
5
Currency and coin
6
Balances due from depository institutions in the United States
7
Balances due from banks in foreign countries and foreign central banks
8
Balances due from Federal Reserve Banks
9 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value)
10
U.S. Treasury securities
11
U.S. government agency and corporation obligations (excludes mortgage-backed
securities)
12
Issued by U.S. government agencies
13
Issued by U.S. government-sponsored agencies
14
Securities issued by states and political subdivisions in the United States
15
Mortgage-backed securities (MBS)
16
Pass-through securities
17
Guaranteed by GNMA
18
Issued by FNMA and FHLMC
19
Other pass-through securities
20
Other mortgage-backed securities (includes CMOs. REMICs, and stripped MBS)
21
Issued or guaranteed by FNMA, FHLMC, or GNMA
22
Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA
23
All other mortgage-backed securities
24
Asset-backed securities
25
Credit card receivables
26
Home equity lines
27
Automobile loans
28
Other consumer loans
29
Commercial and industrial loans
30
Other
31
Other debt securities
32
Other domestic debt securities
33
Foreign debt securities
34
Investments in mutual funds and other equity securities with readily determinable
fair value
35 Federal funds sold and securities purchased under agreements to resell
36 Total loans and leases (gross) and lease-financing receivables (net)
37
LESS: Unearned income on loans
38
LESS: Loans and leases held for sale
39 Total loans and leases (net of unearned income)
40
LESS: Allowance for loan and lease losses
41 Loans and leases, net of unearned income and allowance
Total loans and leases, gross, by category
42 Loans secured by real estate
43
Construction and land development
44
Farmland
45
One- to four-family residential properties
46
Revolving, open-end loans, extended under lines of credit
Closed-end loans secured by one- to four-family residential properties
47
Secured by first liens
48
Secured by junior liens
49
Multifamily (five or more) residential properties
50
Nonfarm nonresidential properties
51 Loans to depository institutions and acceptances of other banks
52
Commercial banks in the United States
53
Other depository institutions in the United States
54
Banks in foreign countries
55 Loans to finance agricultural production and other loans to farmers
56 Commercial and industrial loans
57
U.S. addressees (domicile)
58
Non-U.S. addressees (domicile)
59 Loans to individuals for household, family, and other personal expenditures (includes purchased paper)
60
Credit cards
61
Other revolving credit plans
62
Other consumer loans (including single-payment, installment, and all student loans)
63 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated
industrial development obligations)
64 All other loans
65
Loans to foreign governments and official institutions
66
Other loans
67
Loans for purchasing and carrying securities
68
All other loans (excludes consumer loans)
69 Lease-financing receivables
70
71
72
73
74
75
76
77
78
79

Trading assets
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 Act and agreement subsidiaries, and IBFs
Intangible assets
Goodwill
Other intangible assets
All other assets




Dom sstic
tot al

Banks with
domestic
offices only

Total

Domestic

Total

5,486,991

4,240,211

3,495,160

1,991,831

239,932

155,785
114,422
92,898
21,524
26,253
3,243
11,867

84,146
f

1

275,519
116,775
n.a.
n.a.
36,786
110,010
11,950

1,028,839
54,665

575,607
30,460

453,232
24,205

200,041
5,848
194,192
93,286
486 ,289
313,046
75,533
231,163
6,350
173,243
110,295
4,622
58,326
70,574
23,945
20,314
13,832
1,058
5,190
6,235
105,933
43,233
62,700

78,512
3,009
75,503
33,115
319,706
224,451
43,786
175,634
5,032
95,255
64,741
3,181
27,333
28,716
5,713
15,934
2,244
581
1,715
2,529
73,743
15,743
58,000

121,529
2,840
118,689
60,171
166,583
88,595
31,748
55,530
1,318
77,988
45,554
1,441
30,993
41,858
18,232
4,380
11,588
477
3,476
3,705
32,190
27,490
4,700

6,232,042
359,666
I
n.a.
1

n.a.

18,051

n.a.

T

n.a.
1

1

i

6,696

11,355

326,611

253,882

240,538

167,810

86,073

3,780,073
2,704
120,749
3,656,620
63,551
3,593,069

3,492,279
2,074
n.a.
n.a.
n.a.
n.a.

2,506,425
1,444
88 ,907
2,416,074
42,838
2,373,236

2,218,631
814
n.a.
n.a.
n.a.
n.a.

1,273,647
1,260
31,842
1,240,545
20,713
1,219,832

1,68c1,832

1,652,694
172,442
34,269
918,900
129,939

970,382

938,243
8 J,353
6,556
582,994
90,558

714,451
83,089
27,713
335,907
39,381
256,556
39,970
27,542
240,200
16,973
n.a.
n.a.
n.a.
33,688
229,298
n.a.
n.a.
242,329
90,420
6,832
145,077
7,587
10,635
30
10,604
n.a.
n.a.
18,688

n.a.

n.a.

119,079
n.a.
n.a.
n.a.
45,971
1,038,110
n.a.
n.a.
574,870
200,024
26,421
348,425

683,579
105,382
60,914
466,169
103,337
n.a.
n.a.
n.a.
45,103
875,683
n a.
n a.
532,675
185,256
24,259
323,161

102,107
67,760
9,790
24,556
12,283
80 5,811
657,617
151,195
332,541
109,604
19,588
203,349

427,023
65,413
33,372
225,970
8 5,364
66,900
9,703
9,762
11,416
646,384
636,110
10,275
290,346
94,836
17,426
178,084

21,436
129,797
5,880
123,918
n.a.
n.a.
165,977

21,303
101,955
1,958
99,997
n.a.
n.a.
159,528

13,849
119,163
5,849
113,313
n a.
n.a.
147,290

13,716
91,321
1,928
8 9,393
16,682
72,711
140,840

f
T
I

318,525
45,564
1,706
3,023
8,025
n a.
85,179
4 8,601
36,578
219,382

320,058
75,090
3,301
8,992
8,250
n.a.
100,656
58,733
41,923
286,759

n.a.

i

29,770
n.a.
n.a.
n.a.
n.a.

1
n.a.

1
i

29,770
n.a.
n.a.
n.a.
n.a.

1,533
29,526
1,596
970
225
n.a.
15,477
10,132
5,345
67,378

Commercial Banks
4.20

A65

DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued
Consolidated Report of Condition, March 31, 2001
Millions of dollars except as noted

Banks with foreign offices'
Item

Total

Domestic
total
Total

Banks with
domestic
offices only

Domestic

Total

80 Total liabilities, minority interest, and equity capital

6,232,042

n.a.

4,240,211

n.a.

1,991,831

81 Total liabilities

5,688,864

4,943,813

3,885,325

3,140,274

1,803,539

82 Total deposits
83
Individuals, partnerships, and corporations (include all certified and official checks)
84
U.S. government
85
States and political subdivisions in the United States
86
Commercial banks and other depository institutions in the United States
87
Banks in foreign countries
88
Foreign governments and official institutions (including foreign central banks)

4,151,311
3,758,645
n.a.
n.a.
110,688
81,772
35,823

3,480,478
3,258,714
10,569
153,163
43,261
7,491
7,280

2,673,013
2,386,900
n.a.
n.a.
95,380
81,175
35,644

2,002,180
1,886,969
9,774
63,490
27,953
6,893
7,100

1,478,298
1,371,745
795
89,673
15,309
597
179

346,008
298,908
1,729
17,971
21,434
5,344
622

285,079
252,444
445
24,817
7,098
247
29

304,057

180,523

1,656,172
1,588,061
8,045
45,519
6,519
1,550
6,478

1,193,219
1,119,301
350
64,856
8,211
350
150

356,165
n.a.
317,890
5,758
n.a.
152,467
n.a.
n.a.

94,730
538
184,081
225
7,750
n.a.
37,918
691

89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111

Total transaction accounts
Individuals, partnerships, and corporations (include all certified and official checks)
U.S. government
States and political subdivisions in the United States
Commercial banks and other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions (including foreign central banks)

631,087
551,353
2,174
42,787
28,531
5,591
651

Total demand deposits

n a.

Total nontransaction accounts
Individuals, partnerships, and corporations (include all certified and official checks)
U.S. government
States and political subdivisions in the United States
Commercial banks and other depository institutions in the United States
Banks in foreign countries
Foreign governments and official institutions (including foreign central banks)

n a.

2,849,391
2,707,362
8,395
110,376
14,730
1,900
6,628

Federal funds purchased and securities sold under agreements to repurchase
Trading liabilities
Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases)
Banks' liability on acceptances executed and outstanding
Subordinated notes and debentures to deposits
Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs
All other liabilities
Minority interest in consolidated subsidiaries

112 Total equity capital

484,580

495,733
218,150
543,895
5,261
8 (>,877
n.a.
181,638
7,617
535,561

450,894
n.a.
501,971
5,983
n.a.
152,467
n.a.
n.a.
n.a.

401,003
217,612
359,814
5,036
82,127
n.a.
143,720
6,926
347,960

n.a.

187,601

MEMO

113 Trading assets at large banks2
114
U.S. Treasury securities (domestic offices)
115
U.S. government agency obligations (excluding MBS)
116
Securities issued by states and political subdivisions in the United States
117
Mortgage-backed securities
Other debt securities
118
119
Other trading assets
Trading assets in foreign offices
120
121
Revaluation gains on interest rate, foreign exchange rate, and other
commodity and equity contracts
122 Total individual retirement (IRA) and Keogh plan accounts
123 Total brokered deposits
124
Fully insured brokered deposits
Issued in denominations of less than $100,000
125
126
Issued in denominations of $100,000, or in denominations greater than $100,000 and
participated out by the broker in shares of $100,000 or less
127 Money market deposit accounts (MMDAs)
128 Other savings deposits (excluding MMDAs)
129 Total time deposits of less than $100,000
130 Total time deposits of $100,000 or more
131 Number of banks
NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have
foreign offices, the inapplicability of certain items to banks that have only domestic offices, or
the absence of detail on a fully consolidated basis for banks that have foreign offices.
1. All transactions between domestic and foreign offices of a bank are reported in "net due
from" and "net due to" lines. All other lines represent transactions with parties other than the
domestic and foreign offices of each bank. Because these intra-office transactions are nullified
by consolidation, total assets and total liabilities for the entire bank may not equal the sum of
assets and liabilities respectively of the domestic and foreign offices.




320,018
•

n a.

1
87,851
150,251
-

•

n a.

159,954
18,220
5,945
1,305
11,919
27,964
16,563
0

318,524

78,039
160,604
210,320
156,675
74,040

149,937

•

n.a.

87,851

n.a.

82,635
1,055,927
441,039
789,553
562,872
,212

8,212

145

158,461
18,201
5,532
1,071
11,539
27,941
16,452
0

1,494
18
413
234
380
23
111
0

77,725
78,711
94,707
63,663
18,302

314
81,893
115,613
93,012
55,738

45,361
695,872
276,576
367,125
316,599

37,274
360,056
164,462
422,428
246,273

n.a.

8,067

Foreign offices include branches in foreign countries, Puerto Rico, and U.S.-affiliated
insular areas; subsidiaries in foreign countries; all offices of Edge Act and agreement
corporations wherever located; and international banking facility (IBF).
2. Components of "Trading Assets at Large Banks" are reported only by banks that
reported trading assets of $2 million or more any quarter of the preceding calendar year.

A66
4.23

Special Tables • August 2001
TERMS OF LENDING AT COMMERCIAL BANKS

Survey of Loans Made, May 7-11, 2001

A. Commercial and industrial loans made by all commercial banks'
Amount of loans (percent)

Weightedaverage
maturity3

Weightedaverage
effective
loan rate
(percent)2

Amount of
loans
(millions
of dollars)

6.22
6.01
5.44
6.38
6.82

91,790
5,138
19,963
26,568
18,113

575
535
1,306
490
415

378
362
300
587
263

40.6
39.8
19.9
42.9
44.2

By maturity/repricing interval6
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10
Other

6.86
6.96
7.12
7.39
8.19

23,505
269
2,016
4,701
3,242

430
282
479
215
157

387
242
647
465
512

11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other

5.94
6.31
5.18
6.06
6.35

31.780
2,938
9,048
8,268
7,032

705
558
4,025
726
708

16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other

5.80
5.20
5.09
5.76
6.70

14,172
853
3,485
4,336
3,445

21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other

5.90
5.24
5.44
5.77
6.47

26 More than 365 days
27
Minimal risk . . .
28
Low risk
29
Moderate risk . .
30
Other

7.61
7.23
6.97
7.62
8.30

Average loan
size
(thousands of
dollars)

Subject to
prepayment
penalty

Made under
commitment

12.4
8.9
9.9

29.9
17.3
50.9
32.6
22.9

70.0
71.5
74.3
81.4
74.2

60.7
70.7
32.2
48.6
63.9

7.1
22.9
12.3
19.1
12.4

4.0
17.1
19.8
7.3
4.6

65.7
93.9
90.9
94.7
89.9

225
227
155
417
131

28.1
47.5
9.8
30.0
42.2

10.2
9.9
7.0
11.9
12.3

43.3
15.5
66.4
44.7
17.0

66.6
63.8
70.8
88.7
50.4

845
1,581
1,109
999
662

192
124
249
234
127

29.3
7.5
21.5
33.0
37.3

6.2
6.0
9.6
4.6
6.1

38.0
33.3
45.8
43.8
27.2

85.0
96.9
80.4
92.7
88.7

16,512
888
4,215
5,735
3,882

614
445
1,119
561
890

415
723
385
386
366

29.5
23.3
15.3
38.2
31.5

3.5
5.1
7.6
1.3
2.4

43.5
9.9
50.6
45.4
47.1

82.6
63.3
83.6
87.1
90.3

4,323
190
390
3,284
274

325
224
214
632
120

85.2
100.0
62.3
87.0
85.0

36.7
1.3
7.5

8.6

3.4
13.5

59.0
18.9
67.5

3.2
8.3
25.6
38.5

81.8
83.4
76.1
62.9

2.1

67.9
52.6
65.7
84.9
76.2

Days

Secured by
collateral

LOAN RISK 5

1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other

Weightedaverage risk
rating5

Weightedaverage
maturity/
repricing
interval6
Days

SIZE OF LOAN

(thousands of dollars)
31
32
33
34

1-99
100-999
1,000-9,999
10,000 or more

35
36
37
38
39

Prime7
Fed funds
Other domestic
Foreign
Other

8.38
7.59
6.28
5.79

2,840
10,358
28,753
49,840

7.91
5.20
5.50
5.67
6.19

24,142
19,565
10.396
22,571
15,118

2.8

147
148
41
120

3.0
2.8
2.5
2.8
3.3

238
20
15
36
132

3.0

84.3
74.7
39.8
31.5

25.2
17.1

BASE RATE OF LOAN 4

Footnotes appear at end of table.




30.1
50.8

15.5
9.5
11.7
2.7
3.5

25.3
79.6
52.9
12.0

Financial Markets

4.23

TERMS OF LENDING AT COMMERCIAL BANKS

A67

Survey of Loans Made, May 7-11, 2001—Continued

B. Commercial and industrial loans made by all domestic banks'
Amount of loans (percent)

Weightedaverage
maturity3

Weightedaverage
effective
loan rate
(percent)"

Amount of
loans
(millions
of dollars)

6.61
6.92
5.63
6.69
7.28

58,759
2,466
13,533
19,535
10,056

387
262
933
374
245

568
528
444
782
437

47.4
74.8
24.8
51.4
60.4

10.2

7.24
6.92
7.13
7.37

8.01

17,862
252
1,991
4,490
2,698

344
268
486
208
136

489
243
653
466
500

11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other

6.30
7.64
5.23
6.40
6.88

17,512
1,248
5,380
5,460
3,350

16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other

6.01
5.23
5.31
5.90
6.96

21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other

6.23
6.36
5.61

26 More than 365 days
27
Minimal risk . . .
28
Low risk
29
Moderate risk . .
30
Other

Average loan
size
(thousands of
dollars)

Most
common
base pricing
rate4

Subject to
prepayment
penalty

Made under
commitment

16.2
10.2
9.5

23.2
13.1
51.6
26.0
12.3

74.2
92.6
87.1
80.7
83.6

Prime
Prime
Domestic
Prime
Prime

52.1
74.9
32.3
50.2
74.0

9.1
24.4
12.2
19.8
14.1

5.1
19.3
7.5
5.2

55.9
93.5
90.9
94.4

403
240
2,639
504
354

413
506
259
627
283

40.5
95.8
16.4
43.5
43.7

11.3
7.1
9.2
12.8
8.2

40.7

8,389
474
2,052
2,675
1,961

547
1,023
704
695
415

309
212
407
360
202

35.5
13.4
21.9
32.3
62.2

7.4

378
154
824
350
468

615
500
532

7.13

9,483
301
2,908
3,385
1,652

7.61
7.23
6.97
7.62
8.30

4,323
190
390
3,284
274

Days

Secured by
collateral

LOAN RISK 5

1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
By maturity/repricing interval6
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10
Other

6.01

325
224
214
632
120

Weightedaverage risk
rating5

10.1

88.2

Prime
Prime
Prime
Prime
Prime

77.3
50.3
6.0

91.1
97.5
96.6
94.6
71.7

Prime
Prime
Domestic
Domestic
Fed funds

11.5
4.4
6.8

22.9
53.4
42.0
21.5
11.7

93.4
94.4
94.9
96.7
89.9

Other
Domestic
Foreign
Other
Other

39.4
68.7
11.7
45.8
64.0

5.2
15.1
9.5
2.1
3.5

36.9
2.3
53.3
38.7
38.1

86.4
73.5
88.0
86.5
94.3

Foreign
Prime
Foreign
Foreign
Foreign

85.2
100.0
62.3
87.0
85.0

36.7
1.3
7.5

8.6

59.0
18.9
67.5

Prime
Other
Other
Prime
Other

84.6
77.4
45.1
35.2

25.3
17.4
8.7
7.4

10.8

18.2

.0

3.4
13.5

Weightedaverage
maturity/
repricing
interval6
Days

SIZE OF LOAN

(thousands of dollars)
31
32
33
34

1-99
100-999
1,000-9,999
10,000 or more

8.40
7.73
6.61
6.06

2,787
9,294
18,986
27,691

3.1
3.1
3.0
2.7

149
162
52
204

3.0
5.1

81.7

18.0

75.2
70.0

35.0

82.8

Prime
Prime
Prime
Prime
Average size
(thousands
of dollars)

BASE RATE OF LOAN 4

35
36
37
38
39

Prime7
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.




7.90
5.18
5.45
5.96
6.35

21,794
6,244
7,166
12,145
11,409

3.0
3.0
2.5

259
54

2.8

33
176

3.0

16

72.7
35.5
12.1

38.0
37.9

12.4
18.8
16.9
3.5
4.4

1.6

34.6
70.4
36.0
15.2

65.6
60.0
95.3
75.4
84.2

207
4,545
2,561
1,526
335

A68
4.23

Special Tables • August 2001
TERMS OF LENDING AT COMMERCIAL BANKS

Survey of Loans Made, May 7-11, 2001—Continued

C. Commercial and industrial loans made by large domestic banks 1

Weightedaverage
effective
loan rate
(percent)2

Amount of
loans
(millions
of dollars)

Average loan
size
(thousands of
dollars)

Amount of loans (percent)

Weightedaverage
maturity
Days

Subject to
prepayment
penalty

Secured by
collateral

Made under
commitment

LOAN RISK 5

1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other

6.46
6.77
5.48
6.53
7.14

52,177
2,006
12,543
17,519
8,516

655
352
2,018
712
381

558
471
423
760
422

44.1
75.9
22.1
47.3
56.6

9.0
7.2
16.0
8.5
6.9

25.6
14.0
55.3
28.0
13.9

73.4
95.0
88.0

7.15
5.71
7.15
7.21
7.96

15,112
77
1,563
3,683
1,891

636
297
1,554
342
222

516
325
730
480
531

47.8
62.7
27.8
42.3
72.1

5.8
26.0
10.4
14.6
7.8

5.3
45.3
23.3
7.9
5.3

50.2
96.6
95.3
96.2
89.3

11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other

6.22
7.64
5.16

447
255
4,137
601
364

403
507
258
605
275

38.6
95.8
15.3
40.2
42.2

11.1

42.4

6.82

16,760
1,243
5,233
5,134
3,253

7.1
8.7
12.7
8.4

79.4
53.2
6.1

91.0
97.5
96.6
94.7
70.9

16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other

5.96
4.75
5.27
5.83
6.96

7,591
379
1,973
2,536
1,723

745
2,552
794
1,099
698

317
99
402
369
204

34.1
5.5
22.0
30.1
59.6

6.7
6.3
11.8
4.4
3.5

24.9
58.9
43.6
22.7
13.3

93.3
93.7
95.2
96.7
90.0

21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other

5.93
5.67
5.49
5.77
6.96

8,287
192
2,789
3,127
1,420

2,031
1,016
2,895
2,049
1,588

661
667
532
625
775

36.2
77.5
9.2
43.3
61.7

4.2
5.6
9.7

42.1
2.8
55.5
41.8
44.2

88.9
77.9
89.3
87.5
96.9

26 More than 365 days
27
Minimal risk . . .
28
Low risk
29
Moderate risk . .
30
Other

5.45
7.53
7.72

3,279
113
176
2,825
119

1,474
517
439
3,831
230

19.8
99.3
49.2
11.0
86.3

By maturity/repricing interval6
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10
Other

6.28

Weightedaverage risk
rating5

1.6

1.3

82.2
100.0
25.8
85.7
71.8

48.9
2.8

1.8
14.7
2.6
.0
26.8

86.2
74.5
43.9
34.8

26.0
15.2
8.2
7.2

1.9
3.8
19.8
35.5

89.0
86.0
73.6
69.5

70.7
34.7
11.5
38.1
31.8

9.6
18.9
16.5
3.3
3.0

1.1

34.4
71.3
38.4
16.7

61.1
59.4
95.5
73.7
88.5

.2

Weightedaverage
maturity/
repricing
interval6
Days

SIZE OF LOAN

(thousands of dollars)
31
32
33
34

1-99
100-999
1,000-9,999
10,000 or more

8.05
7.56
6.56
6.05

1,463
6,372
17,094
27,246

3.2
3.2
3.0
2.7

7.81
5.15
5.42
5.97
6.12

17,850
6,141
7,069
11,355
9,761

3.0
3.0
2.5
2.8
3.0

43
204

BASE RATE OF LOAN 4

35
36
37
38
39

7

Prime
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.




283
20
6
33

Financial Markets
4.23

TERMS OF LENDING AT COMMERCIAL BANKS

Survey of Loans Made, May 7-11, 2001—Continued

D. Commercial and industrial loans made by small domestic banks'

Weightedaverage
effective
loan rate
(percent)2

Amount of
loans
(millions
of dollars)

Average loan
size
(thousands of
dollars)

Amount of loans (percent)

Weightedaverage
maturity3

Days

Secured by
collateral

Subject to
prepayment
penalty

Made under
commitment

82.1
75.6
81.3

LOAN RISK 3

1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other
6
7
8
9
10

By maturity/repricing interval6
Zero interval
Minimal risk
Low risk
Moderate risk
Other

91
125
119
73
83

652
775
710
986
518

74.0
70.1
59.1
87.5
81.7

19.6
22.9

8.06

6,582
460
990
2,016
1,540

24.4
23.8

5.0
9.3
5.6
8.7
3.4

7.73
7.44
7.06
8.10
8.13

2,750
175
429
806
807

257
139
75
71

329
212
313
396
430

75.9
80.3
48.6
86.5
78.6

27.1
23.7
18.7
43.1
28.6

4.2
6.4
4.7
5.5
5.0

86.9
92.2
75.1
86.3
85.8

8.12

7.82
7.56
7.49
8.16

18.2

82.8

11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other

7.30
7.68
8.17

752
5
148
327

125
16
191
143

638
306
272
1,003
532

84.2
100.0
54.2
94.5
95.0

17.6
13.4
24.4
15.3
1.9

3.1
2.1
1.5
5.2
3.6

92.0
89.7
97.0
92.3
98.1

16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other

6.53
7.16
6.09
7.15
6.95

799
95
79
138
238

156
301
184
90
105

238
663
521
202
191

48.9
45.4
19.5
71.9
81.0

14.1
28.7
1.7
5.3
31.2

4.0
31.7
1.4
.4
.3

94.7
97.2
86.5
97.6
89.4

21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other

8.29
7.57
8.37

57
62
46
32

8.20

1,196
109
119
258
232

295
217
533
393
334

61.3
53.0
68.8
76.1
77.8

32.0
4.1
8.0
17.0

.6
1.4
2.9
.2
.9

69.2
65.7
58.6
75.4
78.4

26 More than 365 days
27
Minimal risk . . .
28
Low risk
29
Moderate risk . .
30
Other

8.31
8.35
8.23
8.19
8.74

1,043
76
214
459
155

94
122
150
103

94.9
100.0
92.5
95.3
95.1

12.5
1.9
26.6
8.3
11.0

13.5
24.4
3.4

63.4
67.1
67.5
53.2

73.7
75.6
89.3

8.82

Weightedaverage risk
rating5

11.6

61.0

Weightedaverage
maturity/
repricing
interval
Days

SIZE OF LOAN
(thousands of dollars)
31
32
33
34

1-99
100-999
1,000-9,999
10,000 or more

8.11

7.05
6.36

1,324
2,922
1,892
444

3.1
3.0
2.7
3.4

257
409
135
209

82.8
83.9
56.4
57.8

24.4
22.2
13.0
16.4

4.2
7.8
2.4

3,944
103
97
790
1,648

3.0
3.0
1.9
3.2
3.0

147
1,782
726
29
620

81.8
81.2
57.2
36.6
73.9

24.7
13.2
46.9
5.2
13.1

4.2
46.6
1.6
1.9
5.9

100.0

BASE RATE OF LOAN 4

35
36
37
38
39

7

Prime
Fed funds
Other domestic
Foreign
Other

Footnotes appear at end of table.




8.28

7.16
8.16
5.82
7.72

86.0
97.1
81.5
98.9
58.6

A69

A70
4.23

Special Tables • August 2001
TERMS OF LENDING AT COMMERCIAL BANKS

Survey of Loans Made, May 7-11, 2001—Continued

E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks 1

Weightedaverage
effective
loan rate
(percent-

Amount of
loans
(millions
of dollars)

5.53
5.17
5.03
5.53
6.23

33,031
2,672
6,431
7,032
8,057

4,226
13,100
8,261
3,604
3,029

Average loan
size
(thousands of
dollars)

Amount of loans (percent)

Weightedaverage
maturity

Days

Secured by
collateral

Subject to
prepayment
penalty

Made under
commitment

62.3
52.1
47.4
83.6
62.5

LOAN RISK 3

1 All commercial and industrial loans
2
Minimal risk
3
Low risk
4
Moderate risk
5
Other

41
202
19
29
43

28.5
7.6
9.5
19.1
23.9

5.9
7.5
4.6
5.3
10.5

41.8
21.2
49.5
50.8
36.1

15.7
4.3
4.5

62.4
2.9
1.5

90.9
99.3
98.4

11.9
3.9
10.0
16.1

46.5
27.0
50.5
33.8
27.0

36.5
38.9
32.9
77.3
31.1

60.0
8.1
51.3
79.7
47.7

72.8
100.0
59.6
86.3
87.0

By maturity/repricing interval6
6 Zero interval
7
Minimal risk
8
Low risk
9
Moderate risk
10
Other

5,643

2,050

6.31
7.80
9.07

24
212
544

227
639
741

94
200
748

24.7
13.5
13.6

11 Daily
12
Minimal risk
13
Low risk
14
Moderate risk
15
Other

5.49
5.32
5.11
5.42
5.86

14,268
1,690
3,667
2,808
3,681

9,175
23,676
17,543
5,052
7,764

2
1
2
1
2

12.8
11.9
3.7
40.8

16 2 to 30 days
17
Minimal risk
18
Low risk
19
Moderate risk
20
Other

5.48
5.17
4.78
5.54
6.36

5,782
379
1,433

4,007
4,955
6,291
3,394
3,119

23
15
28
19
32

20.8
34.1
4.5

7.1
5.0
5.0

21 31 to 365 days
22
Minimal risk
23
Low risk
24
Moderate risk
25
Other

5.46

7,029

52.4

77.4

5.06
5.44
5.98

1,306
2,351
2,230

23.5
27.3
7.4

3.5
.0
1.6

44.4
55.1
53.7

73.9
87.9
87.4

88.0
89.1
77.9
54.1

1,661

1,484

96.6

5,570
4,166
2,678

4.5

26 More than 365 days
27
Minimal risk . . .
28
Low risk
29
Moderate risk . .
30
Other

Weightedaverage risk
rating5

Weightedaverage
maturity/
repricing
interval
Days

SIZE OF LOAN

(thousands of dollars)
31
32
33
34

1-99
100-999
1,000-9,999
10,000 or more

7.17
6.35
5.63
5.45

52
1,063
9,766
22,149

3.7
3.6
3.1
2.8

67.8
51.1
29.5
26.8

22.0
14.4
8.9
4.1

14.8
36.4
40.2
42.9

8.02
5.20
5.59
5.33
5.67

2,347
13,320
3,230
10,426
3,708

3.4
2.7
2.0
2.8
4.8

33.1
22.8
1.3
20.9
90.7

44.5
5.1

6.6
20.9
100.0
72.6
2.2

BASE RATE OF LOAN 4

35
36
37
38
39

7

Prime
Fed funds
Other domestic
Foreign
Other
Footnotes appear at end of table.




49.1

.1

96.0
51.8

Financial Markets

A71

NOTES TO TABLE 4.23
NOTE. The Survey of Terms of Business Lending collects data on gross loan extensions
made during the first full business week in the mid-month of each quarter. The authorized
panel size for the survey is 348 domestically chartered commercial banks and 50 U.S.
branches and agencies of foreign banks. The sample data are used to estimate the terms of
loans extended during that week at all domestic commercial banks and all U.S. branches and
agencies of foreign banks. Note that the terms on loans extended during the survey week may
differ from those extended during other weeks of the quarter. The estimates reported here are
not intended to measure the average terms on all business loans in bank portfolios.
1. As of December 31, 1996, assets of most of the large banks were at least $7.0 billion.
Median total assets for all insured banks were roughly $62 million. Assets at all U.S. branches
and agencies averaged 1.3 billion.
2. Effective (compounded) annual interest rates are calculated from the stated rate and
other terms of the loans and weighted by loan amount. The standard error of the loan rate for
all commercial and industrial loans in the current survey (line 1, column 1) is 0.13 percentage
point. 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 the
universe of all banks.
3. Average maturities are weighted by loan amount and exclude loans with no stated
maturities.
4. The most common base pricing 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 "base" or
"reference" rate); the federal funds rate; domestic money market rates other than the prime
rate and the federal funds rate; foreign money market rates; and other base rates not included
in the foregoing classifications.




5. A complete description of these risk categories is available from the Banking Analysis
Section, Mail Stop 81, Board of Governors of the Federal Reserve System, Washington, DC
20551. The category "Moderate risk" includes the average loan, under average economic
conditions, at the typical lender. The category "Other" includes loans rated "acceptable" as
well as special mention or classified loans. The weighted-average risk ratings published for
loans in rows 31-39 are calculated by assigning a value of "1" to minimal risk loans; "2" to
low risk loans; "3" to moderate risk loans, "4" to acceptable risk loans; and "5" to special
mention and classified loans. These values are weighted by loan amount and exclude loans
with no risk rating. Some of the loans in lines 1, 6, 11, 16, 21, 26, and 31-39 are not rated for
risk.
6. The maturity/repricing interval measures the period from the date the loan is made until it
first may reprice or it matures. For floating-rate loans that are subject to repricing at any
time—such as many prime-based loans—the maturity/repricing interval is zero. For floating-rate
loans that have a scheduled repricing interval, the maturity/repricing interval measures the number
of days between the date the loan is made and the date on which it is next scheduled to reprice. For
loans having rates that remain fixed until the loan matures (fixed-rate loans), the maturity/repricing
interval measures the number of days between the date the loan is made and the date on which it
matures. Loans that reprice daily mature or reprice on the business day after they are made. Owing
to weekends and holidays, such loans may have maturity/repricing intervals in excess of one day;
such loans are not included in the "2 to 30 day" category.
7. For the current survey, the average reported prime rate, weighted by the amount of
loans priced relative to a prime base rate, was 7.55 percent for all banks; 7.54 percent for
large domestic banks, 7.63 percent for small domestic banks; and 7.50 percent for U.S.
branches and agencies of foreign banks.

A72
4.30

Special Tables • August 2001
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 2001'—Continued
Millions of dollars except as noted
All states2
Item

1 Total assets4

Total
including
IBFs3

IBFs
only'

New York
Total
including
IBFs

California

Illinois

IBFs
only

Total
including
IBFs

IBFs
only

Total
including
IBFs

IBFs
only

1,016,396

193,606

861,083

166,776

24,660

5,330

44,580

5,263

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
/
U.S. branches and agencies of other foreign banks
(including IBFs)
Other depository institutions in United States (including IBFs) . . .
8
9
Balances with banks in foreign countries and with foreign central
banks
10
Foreign branches of U.S. banks
11
Banks in home country and home-country central banks
12
All other banks in foreign countries and foreign central banks . . . .
13
Balances with Federal Reserve Banks

798,218
69,417
1,612
13
46,847

77,433
32,333
0
n.a.
13,889

666,120
65,260
1,537
9
44,849

68,788
29,401
0
n.a.
12,908

23,959
539
7
1
501

1,508
125
0

2,758
2,625
0

112

44,580
2,769
26
0
815

40.097
6,750

13,034
854

38,740
6,109

12,390
519

300
202

91
21

499
316

415
300

20,478
318
5,594
14,566
467

18,444
191
5,328
12,925
n.a.

18,509
316
5,586
12,607
355

16,493
191
5,320
10,982
n.a.

15
0
8
7
15

13
0
8
5
n.a.

1,912
0
0
1,912
17

1,910
0
0
1,910
n.a.

14 Total securities and loans

450,399

36,478

362,510

31,094

22,653

1,339

30,016

30

15 Total securities, book value
U.S. Treasury
16
Obligations of U.S. government agencies and corporations
17
IS
Other bonds, notes, debentures, and corporate stock (including state
and local securities)
iy
Securities of foreign governmental units
20
All Other

106,655
10,770
46,175

3,869
n.a.
n.a.

98,500
10,210
44,052

3,386
n.a.
n.a.

1,195
44
179

439
n.a.

4,871
497
1,812

11
n.a.
n.a.

49,710
9,441
40,270

3,869
1,784
2,085

44,239
9,234
35,005

3,386
1,720
1,665

972
164
808

439
51
388

2,562
11
2,550

11
11
0

22
23
24

21 Federal funds sold and securities purchased under agreements to
resell
U.S. branches and agencies of other foreign banks
Commercial banks in United States
Other

125,886
11,286
15,903
98,697

6,480
3,189
11
3,280

123,869
11,039
15,429
97,401

6,314
3,128
10
3,176

287
93
115
79

19
19
0
0

1,075
0
0
1,075

75
0
0
75

25 Total loans, gross
26
LESS: Unearned income on loans
2/
EQUALS: L o a n s , n e t

344,099
354
343,744

32,650
41
32,609

264,292
282
264,010

27,747
39
27,709

21,487
29
21,458

901
1
900

25,159
13
25,145

19
0
19

16,966
26,454
7,130
4,116
3,014
14
19,310
320
18,990
49,066

52
15,330
2,208
1,997
211
0
13,123
271
12,852
1,570

12,417
20,732
5,436
2,771
2,665
0
15,296
273
15,023
39,714

52
12,180
1,739
1,529
210
0
10,441
231
10,210
1,408

2,976
1,187
860
844
15
0
328
40
288
986

0
718
403
403
0
0
315
40
275
0

134
682
432
250
182

0
16
0
0
0
0
16
0
16
0

38 Commercial and industrial loans
39
U.S. addressees (domicile)
40
Non-U.S. addressees (domicile)
41 Acceptances of other banks
42
U.S. banks
Foreign banks
43
44 Loans to foreign governments and official institutions (including
foreign central banks)
45 Loans for purchasing or carrying securities (secured and unsecured) . . .
46 All other loans

225,057
185,407
39,650
606
8
599

13,447
30
13,417
18
0
18

168,296
138,970
29,326
147
3
144

11,989
30
11,959
18
0
18

15,657
14,509
1,149
40
5
35

161
0
161
0
0
0

17,955
15,612
2,343
420
0

0
0
0
0
0

420

0

3.820
13,956
7,557

2,151
0
81

3,186
13,298
6,235

2,036
0
64

234
0
406

22
0

244
330
271

3
0

47
48
49
50
51
52
53
54
55
56
5/
58

616
616
0
116,623
35,892
1,314
552
761
34,579
218,178
218,178

0
0
0
666
1,476
n.a.
n.a.
n.a.
1,476
116,173
n.a.

268
268
0
82,128
32,352
975
474
501
31,377
194,963
194,963

0
0
0
665
1,314
n.a.
n.a.
n.a.
1,314
97,988
n.a.

0
0
0
74
406
52
50
2
354
701
701

0
0
0
0
24
n.a.
n.a.
n.a.
24
3,823
n.a.

348
348
0
8,890
1,829
230
7
223
1,599

0
0

Total loans, gross, by category
28 Real estate loans
19 Loans to depository institutions
30
Commercial banks in United States (including IBFs)
U.S. branches and agencies of other foreign banks
31
32
Other commercial banks in United States
Other depository institutions in United States (including IBFs)
33
34
Banks in foreign countries
35
Foreign branches of U.S. banks
Other banks in foreign countries
36
3 7 Loans to other financial institutions

Lease financing receivables (net of unearned income)
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Trading assets
All other assets
Customers' liabilities on acceptances outstanding
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
Other assets including other claims on nonrelated parties
Net due from related depository institutions5
Net due from head office and other related depository institutions5. . .
Net due from establishing entity, head office, and other related
depository institutions5

59 Total liabilities4
60 Liabilities to nonrelated parties
Footnotes appear at end of table.




0

0

250
0
250
4,775

0

715

0

0
1
28
n.a.
n.a.
n.a.
28
2,504

0

n.a.

116,173

n.a.

97,988

n.a.

3,823

n.a.

2,504

1,016,396

193,606

861,083

166,776

24,660

5,330

44,580

5,263

901,292

175,584

785,729

150,468

9,420

5,225

38,058

4,318

U.S. Branches and Agencies
4.30

A73

ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 2001'—Continued
Millions of dollars except as noted
All states2
Item

61 Total deposits and credit balances
62
Individuals, partnerships, and corporations
63
U.S. addressees (domicile)
64
Non-US. addressees (domicile)
65
Commercial banks in United States (including IBFs)
66
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
67
68
Banks in foreign countries
69
Foreign branches of U.S. banks
70
Other banks in foreign countries
Foreign governments and official institutions
71
(including foreign central banks)
72
All other deposits and credit balances
Certified and official checks
73
74 Transaction accounts and credit balances (excluding IBFs)
Individuals, partnerships, and corporations
75
76
U.S. addressees (domicile)
77
Non-U.S. addressees (domicile)
78
Commercial banks in United States (including IBFs)
79
U.S. branches and agencies of other foreign banks
80
Other commercial banks in United States
81
Banks in foreign countries
82
Foreign branches of U.S. banks
Other banks in foreign countries
83
84
Foreign governments and official institutions
(including foreign central banks)
85
AH other deposits and credit balances
Certified and official checks
86
87 Demand deposits (included in transaction accounts
and credit balances)
Individuals, partnerships, and corporations
88
89
U.S. addressees (domicile)
90
Non-U.S. addressees (domicile)
Commercial banks in United States (including IBFs)
91
92
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
93
94
Banks in foreign countries
Foreign branches of U.S. banks
95
Other banks in foreign countries
96
Foreign governments and official institutions
97
(including foreign central banks)
98
All other deposits and credit balances
99
Certified and official checks
100 Nontransaction accounts (including MMDAs, excluding IBFs)
Individuals, partnerships, and corporations
101
102
U.S. addressees (domicile)
103
Non-U.S. addressees (domicile)
104
Commercial banks in United States (including IBFs)
105
US. branches and agencies of other foreign banks
Other commercial banks in United States
106
107
Banks in foreign countries
Foreign branches of U.S. banks
108
Other banks in foreign countries
109
110
Foreign governments and official institutions
(including foreign central banks)
111
All other deposits and credit balances
112 IBF deposit liabilities
Individuals, partnerships, and corporations
113
114
U.S. addressees (domicile)
Non-U.S. addressees (domicile)
115
Commercial banks in United States (including IBFs)
116
117
U.S. branches and agencies of other foreign banks
118
Other commercial banks in United States
Banks in foreign countries
119
Foreign branches of U.S. banks
120
Other banks in foreign countries
121
Foreign governments and official institutions
122
(including foreign central banks)
123
All other deposits and credit balances
Footnotes appear at end of table.




New York

Illinois

California

IBFs
only3

Total
excluding
IBFs

IBFs
only

Total
excluding
IBFs

IBFs
only

Total
excluding
IBFs

IBFs
only

395,882
302,025
285,675
16,350
45,673
21,576
24,097
11,339
1,723
9,616

130,842
11,250
1
11,249
13,212
11,715
1,497
80,500
3,719
76,781

339,069
253,143
242,669
10,473
41,160
19,217
21,942
11,093
1,723
9,370

118,356
6,006
0
6,006
12,934
11,484
1,450
78,391
3,714
74,676

2,675
2,309
640
l,t 68
314
0
314
10
0
10

1,227
154
0
154
140
120
20
102
5
97

13,477
12,533
12,479
54
478
75
403
0
0
0

2,369
40
0
40
61
61
0
572
0
572

18,401
18,283
161

25,780
99

16,018
17,518
137

20,927
99

11
27
4

832
0

465
0
1

1,696
0

Total
excluding
IBFs3

7,664
6,372
3,876
2,496
61
22
39
498
6
493

6,079
4,967
3,258
1,709
58
21
37
393
6
387

285
268
164
104
0
0
0
10
0
10

315
313
299
14
0
0
0
0
0
0

329
243
161

301
223
137

1
1
4

0
0
1

7,079
5,958
3,741
2,217
44
12
32
485
4
481

5,734
4,778
3,198
1,580
42
12
30
380
4
376

215
199
140
58
0
0
0
10
0
10

313
310
296
14
0
0
0
0
0
0

n.a.

n a.

n.a.

312
119
161

284
114
137

1
1
4

0
0
1

388,218
295,653
281,799
13,854
45,612
21,554
24,058
10,841
1,717
9,124

332,990
248,176
239,412
8,764
41,101
19,196
21,905
10,701
1,717
8,983

2,390
2,040
476
1,564
314
0
314
0
0
0

13,161
12,219
12,180
39
478
75
403
0
0
0

18,071
18,040

15,717
17,295

10
26

464
0

n.a.

130,842
11,250
1
11,249
13,212
11,715
1,497
80,500
3,719
76.781
25.780
99

n.a.

118,356
6,006
0
6,006
12,934
11,484
1,450
78,391
3,714
74.676
20.927
99

n.a.

1,227
154
0
154
140
120
20
102
5
97
832
0

n.a.

n.a.

2,369
40
0
40
61
61
0
572
0
572
1,696
0

A74
4.30

Special Tables • August 2001
ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 2001'—Continued
Millions of dollars except as noted
New York

All statesItem

124 Federal funds purchased and securities sold under agreements to
repurchase
125
U.S. branches and agencies of other foreign banks
Other commercial banks in United States
17.6
Other
177
128 Other borrowed money
129 Owed to nonrelated commercial banks in United States (including
IBFs)
Owed to U.S. offices of nonrelated U.S. banks
no
Owed to U.S. branches and agencies of nonrelated
131
foreign banks
132 Owed to nonrelated banks in foreign countries
133
Owed to foreign branches of nonrelated U.S. banks
134
Owed to foreign offices of nonrelated foreign banks
135 Owed to others

Total
including
IBFs3

IBFs
only5

California

Illinois

Total
including
IBFs

IBFs
only

Total
including
IBFs

IBFs
only

Total
including
IBFs

IBFs
only

187,047
12,637
18,550
155,859
75,248

22,149
4,114
1,734
16,301
20,428

175,353
10,251
16,529
148,573
59,010

14,803
2,419
856
11,529
15,266

941
162
351
428
4,324

312
47
45
220
3,646

5,161
969
1,138
3,054
6,434

1,642
393
333
917
296

11,245
5,085

4,066
660

9,540
4,606

3,548
621

748
57

436
35

269
154

2
0

6,160
14,746
780
13,966
49,257

3,407
12,297
704
11,593
4,065

4,935
10,521
474
10,047
38,949

2,926
8,170
410
7,760
3,548

691
2,731
282
2,449
846

401
2,700
282
2,418
510

115
297
0
297
5,868

2
294
0
294
0

136 All other liabilities
Branch or agency liability on acceptances executed and
137
outstanding
Trading liabilities
138
Other liabilities to nonrelated parties
139

112,275

2,165

93,940

2,042

253

39

10,617

11

1,685
78,583
32,007

n.a.
68
2,097

1,214
64,191
28,536

n.a.
66
1,976

52
51
150

n. a.
0
39

359
8,987
1,271

n.a.
2
9

140 Net due to related depository institutions5
Net due to head office and other related depository institutions5 . . . .
141
Net due to establishing entity, head office, and other related
142
depository institutions5

115,104
115,104

18,022
n.a.

75,355
75,355

16,308
n.a.

15,240
15,240

106
n.a.

6,522
6,522

945
n.a.

n.a.

18,022

n.a.

16,308

n.a.

106

n.a.

945

MEMO

143 Non-interest-bearing balances with commercial banks
in United States
144 Holding of own acceptances included in commercial and
industrial loans
145 Commercial and industrial loans with remaining maturity of one year
or less (excluding those in nonaccrual status)
Predetermined interest rates
146
Floating interest rates
147
148 Commercial and industrial loans with remaining maturity of more
than one year (excluding those in nonaccrual status)
Predetermined interest rates
149
Floating interest rates
150
Footnotes appear at end of table.




1,605
1,725
111,973
61,201
50,772
109,547
24,300
85,247

0

0

1,521

>

•

1,353

n.a.

76,241
38,105
38,136
89,235
21,035
68,200

5

0

>

0

•

201

••

n.a.

13,879
11,434
2,446

n.a.

33

>

•

95

n.a.

7,927
4,046
3,881
7,367
937
6,430

4,049
496
3,553

U.S. Branches and Agencies
4.30

A75

ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 2001'—Continued
Millions of dollars except as noted
All states2
Item

151 Components of total nontransaction accounts,
included in total deposits and credit balances
(excluding IBFs)
152
Time deposits of $100,000 or more
153
Time CDs in denominations of $100,000 or more
with remaining maturity of more than 12 months

New York

Total
excluding
IBFs3

IBFs
only3

Total
excluding
IBFs

IBFs
only

387,041
383,382

n.a.
n.a.

333,154
329,561

3,659

n.a.

3,593

All states2

154 Immediately available funds with a maturity greater than one day
included in other borrowed money
155 Number of reports filed6

Total
excluding
IBFs

IBFs
only

Total
excluding
IBFs

IBFs
only

n.a.
n.a.

2,205
2,205

n.a.
n.a.

13,093
13,091

n.a.
n.a.

n.a.

0

n.a.

2

n.a.

New York

Illinois

California

Total
including
IBFs

IBFs
only

Total
including
IBFs

IBFs
only

Total
including
IBFs

IBFs
only

Total
including
IBFs

IBFs
only

26,775
334

n.a.
0

23,148
173

n.a.
0

2,365
68

n.a.
0

597
26

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." The 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 FR 886a report. Aggregate data from that report were available through the Federal
Reserve monthly statistical release G.l 1, last issued on July 10, 1980. Data in this table and in
the G. 11 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). Since December 31, 1985, data for IBFs have been 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 that no IBF data have been reported for that item,




Illinois

California

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 owed to related
banking institutions in the United States and in foreign countries (see note 5). On the former
monthly branch and agency report, available through the G. 11 monthly 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 1 tables.
5. Related depository institutions includes the foreign head office and other U.S. and
foreign branches and agencies of a bank, a bank's parent holding company, and majorityowned 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.

A76
4.31

Special Tables • August 2001
PRO FORMA FINANCIAL STATEMENTS FOR FEDERAL RESERVE PRICED SERVICES
A.

Pro forma balance sheet

Millions of dollars

Item

Short-term assets (Note 1)
Imputed reserve requirement on clearing balances
Investment in marketable securities
Receivables
Materials and supplies
Prepaid expenses
Items in process of collection

Mar. 31, 2001

649.6
5,846.0
78.7
3.3
41.3
4,045.3

Total short-term assets
Long-term assets (Note 2)
Premises
Furniture and equipment
Leases and leasehold improvements
Prepaid pension costs

Mar. 31, 2000

640.9
5.768.1
80.5
3.5
32.9
2.823.2
10,664.2

465.4
170.6
74.6
685.0

440.2
167.5
48.1
571.7

Total long-term assets
Total assets
Short-term liabilities
Clearing balances and balances arising from early credit
of uncollected items
Deferred-availability items
Short-term debt and payables

1,395.6

1,227.5

12,059.8

10,576.6

6,922.7
3,618.1
123.4

Total short-term liabilities
Long-term liabilities
Long-term debt
Postretirement/postemployment benefits obligation

6,173.2
3,059.0
116.8
10,664.2

481.1
247.4
728.5

626.9

11,392.7

9,976.0

Equity
Total liabilities and equity (Note 3)
NOTE. Components may not sum to totals because of rounding. The priced services
financial statements consist of these tables and the accompanying notes.
(L) SHORT-TERM ASSETS

The imputed reserve requirement on clearing balances held at Reserve Banks by depository
institutions reflects a treatment comparable to that of compensating balances held at correspondent banks by respondent institutions. The reserve requirement imposed on respondent
balances must be held as vault cash or as nonearning balances maintained at a Reserve Bank;
thus, a portion of priced services clearing balances held with the Federal Reserve is shown as
required reserves on the asset side of the balance sheet. The remainder of clearing balances is
assumed to be invested in three-month Treasury bills, shown as investment in marketable
securities.
Receivables are (1) amounts due the Reserve Banks for priced services and (2) the share of
suspense-account and difference-account balances related to priced services.
Materials and supplies are the inventory value of short-term assets.
Prepaid expenses include salary advances and travel advances for priced-service personnel.
Items in process of collection is gross Federal Reserve cash items in process of collection
(CIPC) stated on a basis comparable to that of a commercial bank. It reflects adjustments for
intra-System items that would otherwise be double-counted on a consolidated Federal
Reserve balance sheet; adjustments for items associated with non-priced items, such as those
collected for government agencies; and adjustments for items associated with providing fixed
availability or credit before items are received and processed. Among the costs to be
recovered under the Monetary Control Act is the cost of float, or net CIPC during the period
(the difference between gross CIPC and deferred-availability items which is the portion of
gross CIPC that involves a financing cost), valued at the federal funds rate.




9,349.1

390.5
236.4

Total long-term liabilities
Total liabilities

9,349.1

667.1

600.6

12,059.8

10,576.6

(2) LONG-TERM ASSETS

Consists of long-term assets used solely in priced services, the priced-services portion of
long-term assets shared with nonpriced services, and an estimate of the assets of the Board of
Governors used in the development of priced services. Effective Jan. 1, 1987, the Reserve
Banks implemented the Financial Accounting Standards Board's Statement of Financial
Accounting Standards No. 87, Employers' Accounting for Pensions (SFAS 87). Accordingly,
the Federal Reserve Banks recognized credits to expenses of $25.2 million in the first quarter
of 2001, and $28.9 million in the first quarter of 2000, and corresponding increases in this
asset account.
( 3 ) LIABILITIES AND EQUITY

Under the matched-book capital structure for assets that are not "self-financing," short-term
assets are financed with short-term debt and payables. Long-term assets are financed with
long-term debt and equity in a proportion equal to the ratio of long-term debt to equity for the
fifty largest bank holding companies, which are used in the model for the private-sector
adjustment factor (PSAF). The PSAF consists of the taxes that would have been paid and the
return on capital that would have been provided had priced services been furnished by a
private-sector firm. Other short-term liabilities include clearing balances maintained at
Reserve Banks and deposit balances arising from float. Other long-term liabilities consist of
obligations on capital leases.

Bank-Reported Data

4.31

All

PRO FORMA FINANCIAL STATEMENTS FOR FEDERAL RESERVE PRICED SERVICES
B.

Pro forma income statement

Millions of dollars

Quarter ending Mar. 31, 2001

Item

Quarter ending Mar. 31, 2000

Revenue from services provided to depository institutions (Note 4)

230.8

211.5

Operating expenses (Note 5)

197.9

172.8
38.8

32.9

Income from operations
Inputed costs (Note 6)
Interest on float
Interest on debt
Sales taxes
FDIC insurance

3.2
8.0
2.8
0.0

14.0

2.8
7.9
2.3
0.0

18.9

Income from operations after imputed costs
Other income and expenses (Note 7)
Investment income on clearing balances
Earnings credits

80.9
(78.8)

2.1
21.0

Income before income taxes
Inputed income taxes (Note 8)
Net income

13.0
25.8

104.9
(88.4)

16.4
42.2

6.6

13.3

14.4

28.9

27.3

24.6

MEMO

Targeted return on equity (Note 9)
NOTE. Components may not sum to totals because of rounding. The priced services
financial statements consist of these tables and the accompanying notes.
(4) REVENUE

Revenue represents charges to depository institutions for priced services and is realized from
each institution through one of two methods: direct charges to an institution's account or
charges against its accumulated earnings credits.
(5) OPERATING EXPENSES
Operating expenses consist of the direct, indirect, and other general administrative expenses
of the Reserve Banks for priced services plus the expenses for staff members of the Board of
Governors working directly on the development of priced services. The expenses for Board
staff members were $1.2 million in the first quarter of 2001 and $1.05 million in the first
quarter of 2000. The credit to expenses under SFAS 87 (see note 2) is reflected in operating
expenses.
(6) IMPUTED COSTS

Imputed costs consist of interest on float, interest on debt, sales taxes, and the FDIC
assessment. Interest on float is derived from the value of float to be recovered, either
explicitly or through per-item fees, during the period. Float costs include costs for checks,
book-entry securities, noncash collection, ACH, and funds transfers.
Interest is imputed on the debt assumed necessary to finance priced-service assets. The
sales taxes and FDIC assessment that the Federal Reserve would have paid had it been a
private-sector firm are among the components of the PSAF (see note 3).
Float costs are based on the actual float incurred for each priced service, multiplied by the
appropriate federal funds rate. Other imputed costs are allocated among priced services
according to the ratio of operating expenses less shipping expenses for each service to the
total expenses for all services less the total shipping expenses for all services.
The following list shows the daily average recovery of float (before converting to float
costs) by the Reserve Banks for the first quarter of 2001 and 2000 in millions of dollars:

Total float
Unrecovered float
Float subject to recovery
Sources of float recovery:
Income on clearing balances
As-of adjustments
Direct charges
Per-item fees




2001

2000

797.5
61.0
736.5

222.9
(436.5)
659.4

73.4
512.2
424.2
(273.4)

66.0
451.7
311.3
(169.6)

Unrecovered float includes float generated by services to government agencies and by other
central bank services. Float recovered through income on clearing balances is the result of the
increase in investable clearing balances; the increase is produced by a deduction for float for
cash items in process of collection, which reduces imputed reserve requirements. The income
on clearing balances reduces the float to be recovered through other means. As-of adjustments
are memorandum adjustments to an institution's reserve or clearing position to recover float
incurred by the institution. Direct charges are billed to the institution for float incurred when
an institution chooses to close on a normal business day and for float incurred on interterritory
check transportation. Float recovered through direct charges is valued at cost using the federal
funds rate and charged directly to an institution's account. Float recovered through per-item
fees is valued at the federal funds rate and has been added to the cost base subject to recovery
in the first quarter of 2001 and 2000.
( 7 ) OTHER INCOME AND EXPENSES

Consists of imputed investment income on clearing balances and the actual cost of earnings
credits. Investment income on clearing balances represents the average coupon-equivalent
yield on three-month Treasury bills applied to the total clearing balance maintained, adjusted
for the effect of reserve requirements on clearing balances. Expenses for earnings credits
granted to depository institutions on their clearing balances are derived by applying the
average federal funds rate to the required portion of the clearing balances, adjusted for the net
effect of reserve requirements on clearing balances.
( 8 ) INCOME TAXES

Imputed income taxes are calculated at the effective tax rate derived from the PSAF model
(see note 3).
( 9 ) RETURN ON EQUITY

Represents the after-tax rate of return on equity that the Federal Reserve would have earned
had it been a private business firm, as derived from the PSAF model (see note 3).

78

Federal Reserve Bulletin • August 2001

Index to Statistical Tables
References are to pages A3-A77, although the prefix "A" is omitted in this index.
ACCEPTANCES, bankers (See Bankers acceptances)
Assets and liabilities (See also Foreigners)
Commercial banks, 15-21, 64-65
Domestic finance companies, 32, 33
Federal Reserve Banks, 10
Foreign banks, U.S. branches and agencies, 72-5
Foreign-related institutions, 20
Automobiles
Consumer credit, 36
Production, 44, 45
BANKERS acceptances, 5, 10, 22, 23
Bankers balances, 15-21, 72-5 (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 31
Rates, 23
Business activity, nonfinancial, 42
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 43
Capital accounts
Commercial banks, 15-21, 64-65
Federal Reserve Banks, 10
Certificates of deposit, 23
Commercial and industrial loans
Commercial banks, 15-21, 64-65, 66-71
Weekly reporting banks, 17, 18
Commercial banks
Assets and liabilities, 15-21, 64-65
Commercial and industrial loans, 15-21, 64-65, 66-71
Consumer loans held, by type and terms, 36, 66-71
Real estate mortgages held, by holder and property, 35
Terms of lending, 64-65
Time and savings deposits, 4
Commercial paper, 22, 23, 32
Condition statements (See Assets and liabilities)
Construction, 42, 46
Consumer credit, 36
Consumer prices, 42
Consumption expenditures, 48, 49
Corporations
Profits and their distribution, 32
Security issues, 31, 61
Cost of living (See Consumer prices)
Credit unions, 36
Currency in circulation, 5, 13
Customer credit, stock market, 24
DEBT (See specific types of debt or securities)
Demand deposits, 15—21
Depository institutions
Reserve requirements, 8
Reserves and related items, 4—6, 12, 64-65
Deposits (See also specific types)
Commercial banks, 4, 15-21, 64-65
Federal Reserve Banks, 5, 10
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, 32
EMPLOYMENT, 42
Euro, 62
FARM mortgage loans, 35
Federal agency obligations, 5, 9-11, 28, 29




Federal credit agencies, 30
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 27
Receipts and outlays, 25, 26
Treasury financing of surplus, or deficit, 25
Treasury operating balance, 25
Federal Financing Bank, 30
Federal funds, 23, 25
Federal Home Loan Banks, 30
Federal Home Loan Mortgage Corporation, 30, 34, 35
Federal Housing Administration, 30, 34, 35
Federal Land Banks, 35
Federal National Mortgage Association, 30, 34, 35
Federal Reserve Banks
Balance sheet, priced services, 76, 77
Condition statement, 10, 77
Discount rates (See Interest rates)
U.S. government securities held, 5, 10, 11, 27
Federal Reserve credit, 5, 6, 10, 12
Federal Reserve notes, 10
Federal Reserve System
Balanced sheet for priced services, 76, 77
Condition statement for priced services, 76, 77
Federally sponsored credit agencies, 30
Finance companies
Assets and liabilities, 32
Business credit, 33
Loans, 36
Paper, 22, 23
Float, 5
Flow of funds, 37^11
Foreign banks, U.S. branches and agencies, 71-5
Foreign currency operations, 10
Foreign deposits in U.S. banks, 5
Foreign exchange rates, 62
Foreign-related institutions, 20
Foreign trade, 51
Foreigners
Claims on, 52, 55-7, 59
Liabilities to, 51^1, 58, 60, 61
GOLD
Certificate account, 10
Stock, 5, 51
Government National Mortgage Association, 30, 34, 35
Gross domestic product, 48, 49
HOUSING, new and existing units, 46
INCOME and expenses, Federal Reserve System, 76, 77
Income, personal and national, 42, 48, 49
Industrial production, 42, 44
Insurance companies, 27, 35
Interest rates
Bonds, 23
Commercial banks, 66-71
Consumer credit, 36
Federal Reserve Banks, 7
Money and capital markets, 23
Mortgages, 34
Prime rate, 22, 66-71
International capital transactions of United States, 50-61
International organizations, 52, 53, 55, 58, 59
Inventories, 48
Investment companies, issues and assets, 32

79

Investments (See also specific types)
Commercial banks, 4, 15-21, 66-71
Federal Reserve Banks, 10, 11
Financial institutions, 35
LABOR force, 42
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Commercial banks, 15-21, 64-65, 66-71
Federal Reserve Banks, 5-7, 10, 11
Federal Reserve System, 76, 77
Financial institutions, 35
Foreign banks, U.S. branches and agencies, 72
Insured or guaranteed by United States, 34, 35
MANUFACTURING
Capacity utilization, 43
Production, 43, 45
Margin requirements, 24
Member banks, reserve requirements, 8
Mining production, 45
Mobile homes shipped, 46
Monetary and credit aggregates, 4, 12
Money and capital market rates, 23
Money stock measures and components, 4, 13
Mortgages (See Real estate loans)
Mutual funds, 13, 32
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 26
National income, 48
OPEN market transactions, 9
PERSONAL income, 49
Priced services, Federal Reserve income statements, 76, 77
Prices
Consumer and producer, 42, 47
Stock market, 24
Prime rate, 22, 66-71
Producer prices, 42, 47
Production, 42, 44
Profits, corporate, 32
REAL estate loans
Banks, 15-21, 35
Terms, yields, and activity, 34
Type and holder and property mortgaged, 35
Reserve requirements, 8
Reserves
Commercial banks, 15-21
Depository institutions, 4-6, 12
Federal Reserve Banks, 10
U S . reserve assets, 51




Residential mortgage loans, 34, 35
Retail credit and retail sales, 36, 42
SAVING
Flow of funds, 37-41
National income accounts, 48
Savings deposits (See Time and savings deposits)
Savings institutions, 35, 36, 37^4-1
Securities (See also specific types)
Federal and federally sponsored credit agencies, 30
Foreign transactions, 60
New issues, 31
Prices, 24
Special drawing rights, 5, 10, 50, 51
State and local governments
Holdings of U.S. government securities, 27
New security issues, 31
Rates on securities, 23
Stock market, selected statistics, 24
Stocks (See also Securities)
New issues, 31
Prices, 24
Student Loan Marketing Association, 30
TAX receipts, federal, 26
Thrift institutions, 4 (See also Credit unions and Savings
institutions)
Time and savings deposits, 4, 13, 15-21, 64—65
Trade, foreign, 51
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 10, 25
Treasury operating balance, 25
UNEMPLOYMENT, 42
U.S. government balances
Commercial bank holdings, 15-21
Treasury deposits at Reserve Banks, 5, 10, 25
U.S. government securities
Bank holdings, 15-21, 27
Dealer transactions, positions, and financing, 29
Federal Reserve Bank holdings, 5, 10, 11, 27
Foreign and international holdings and transactions, 10, 27, 61
Open market transactions, 9
Outstanding, by type and holder, 27, 28
Rates, 23
U.S. international transactions, 50-62
Utilities, production, 45
VETERANS Administration, 34, 35
WEEKLY reporting banks, 17, 18
Wholesale (producer) prices, 42, 47
YIELDS (See Interest rates)

80

Federal Reserve Bulletin • August 2001

Federal Reserve Board of Governors
and Official Staff
A L A N GREENSPAN,

Chairman
Vice Chairman

ROGER W . FERGUSON, JR.,

EDWARD W . KELLEY, JR.
LAURENCE H . M E Y E R

OFFICE OF BOARD MEMBERS

DIVISION OF BANKING SUPERVISION

LYNN S. FOX, Assistant to the Board
MICHELLE A. SMITH, Assistant to the Board
DONALD J. WINN, Assistant to the Board
DONALD L. KOHN, Adviser to the Board
WINTHROP P. HAMBLEY, Deputy Congressional
Liaison
NORMAND R. V. BERNARD, Special Assistant to the Board
JOHN LOPEZ, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
ROSANNA PIANALTO-CAMERON, Special Assistant to the Board
DAVID W. SKIDMORE, Special Assistant to the Board

AND

LEGAL DIVISION
J. VIRGIL MATTINGLY, JR., General Counsel
SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
STEPHANIE MARTIN, Assistant General Counsel
ANN E. MISBACK, Assistant General Counsel
STEPHEN L. SICILIANO, Assistant General Counsel
KATHERINE H. WHEATLEY, Assistant General Counsel
CARY K. WILLIAMS, Assistant General Counsel

OFFICE OF THE SECRETARY
JENNIFER J. JOHNSON,

Secretary

ROBERT DEV. FRIERSON, Deputy
Secretary
BARBARA R. LOWREY, Associate Secretary and
MARGARET M. SHANKS, Assistant
Secretary
DIVISION OF BANKING
AND
REGULATION
R I C H A R D SPILLENKOTHEN,

Ombudsman

SUPERVISION
Director

STEPHEN C. SCHEMERING, Deputy Director
HERBERT A. BIERN, Senior Associate
Director
ROGER T. COLE, Senior Associate
Director
WILLIAM A. RYBACK, Senior Associate
Director
GERALD A. EDWARDS, JR., Associate Director and
Chief Accountant,
Supervision
STEPHEN M. HOFFMAN, JR., Associate
Director
JAMES V. HOUPT, Associate
Director
JACK P. JENNINGS, Associate
Director
MICHAEL G. MARTINSON, Associate
Director
MOLLY S. WASSOM, Associate
Director
HOWARD A. AMER, Deputy Associate
Director
NORAH M. BARGER, Deputy Associate
Director
BETSY CROSS, Deputy Associate
Director
DEBORAH P. BAILEY, Assistant
Director
BARBARA J. BOUCHARD, Assistant
Director
ANGELA DESMOND, Assistant
Director
Director
JAMES A. EMBERSIT, Assistant
CHARLES H. HOLM, Assistant
Director
H E I D I W I L L M A N N RICHARDS, Assistant

WILLIAM G. SPANIEL, Assistant
Director
DAVID M. WRIGHT, Assistant
Director




Director

REGULATION—Continued

SIDNEY M . SUSSAN,

Adviser

WILLIAM C. SCHNEIDER, JR., Project
National Information Center

Director,

DIVISION OF INTERNATIONAL FINANCE
KAREN H . JOHNSON,

Director

DAVID H. HOWARD, Deputy
Director
THOMAS A. CONNORS, Associate
Director
DALE W. HENDERSON, Associate
Director
RICHARD T. FREEMAN, Assistant
Director
WILLIAM L. HELKIE, Assistant
Director
STEVEN B. KAMIN, Assistant
Director
RALPH W. TRYON, Assistant
Director
DIVISION

OF RESEARCH

D A V I D J. STOCKTON,

AND

STATISTICS

Director

EDWARD C. ETTIN, Deputy
Director
DAVID WILCOX, Deputy Director
WILLIAM R. JONES, Associate
Director
MYRON L. KWAST, Associate
Director
STEPHEN D. OLINER, Associate
Director
PATRICK M. PARKINSON, Associate
Director
LAWRENCE SLIFMAN, Associate
Director
CHARLES S. STRUCKMEYER, Associate
Director
MARTHA S. SCANLON, Deputy Associate
Director
JOYCE K. ZICKLER, Deputy Associate
Director
Director
WAYNE S. PASSMORE, Assistant
DAVID L. REIFSCHNEIDER, Assistant
Director
JANICE SHACK-MARQUEZ, Assistant
Director
A L I C E PATRICIA W H I T E , Assistant

Director

GLENN B. CANNER, Senior Adviser
DAVID S. JONES, Senior Adviser
THOMAS D. SIMPSON, Senior Adviser

DIVISION OF MONETARY AFFAIRS
VINCENT R . REINHART,

Director

DAVID E. LINDSEY, Deputy
Director
BRIAN F. MADIGAN, Deputy
Director
RICHARD D. PORTER, Deputy Associate
Director
WILLIAM C. WHITESELL, Assistant
Director

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
DOLORES S . S M I T H ,

Director

GLENN E. LONEY, Deputy
Director
SANDRA F. BRAUNSTEIN, Assistant
Director
MAUREEN P. ENGLISH, Assistant
Director
ADRIENNE D. HURT, Assistant
Director
IRENE S H A W N M C N U L T Y , Assistant

Director

81

EDWARD M . GRAMLICH

OFFICE OF
STAFF DIRECTOR FOR MANAGEMENT

AND PAYMENT

STEPHEN R. MALPHRUS, Staff

LOUISE L . ROSEMAN,

Director

MANAGEMENT DIVISION
STEPHEN J. CLARK, Associate Director, Finance Function
DARRELL R. PAULEY, Associate Director, Human Resources
Function
CHRISTINE M. FIELDS, Assistant Director, Human Resources
Function
SHEILA CLARK, EE0 Programs
Director

DIVISION OF RESERVE BANK OPERATIONS
SYSTEMS
Director

PAUL W. BETTGE, Associate
Director
KENNETH D. BUCKLEY, Assistant
Director
TILLENA G. CLARK, Assistant
Director
Director
JOSEPH H. HAYES, JR., Assistant
JEFFREY C. MARQUARDT, Assistant
Director
EDGAR A. MARTINDALE, Assistant
Director
MARSHA W. REIDHILL, Assistant
Director
JEFF J. STEHM, Assistant
Director

DIVISION OF SUPPORT SERVICES

OFFICE OF THE INSPECTOR GENERAL

ROBERT E . FRAZIER,

BARRY R. SNYDER, Inspector
General
DONALD L. ROBINSON, Deputy Inspector

Director

DAVID L. WILLIAMS, Associate
GEORGE M. LOPEZ, Assistant

Director
Director

DIVISION OF INFORMATION TECHNOLOGY
RICHARD C . STEVENS,

Director

MARIANNE M. EMERSON, Deputy Director
MAUREEN T. HANNAN, Associate
Director
RAYMOND H. MASSEY, Associate
Director
GEARY L. CUNNINGHAM, Assistant
Director
WAYNE A. EDMONDSON, Assistant
Director
P o KYUNG KIM, Assistant
Director
SUSAN F. MARYCZ, Assistant
Director
SHARON L. MOWRY, Assistant
Director
DAY W. RADEBAUGH, JR., Assistant
Director




General

82

Federal Reserve Bulletin • August 2001

Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET

COMMITTEE
MEMBERS

A L A N GREENSPAN,

Chairman

WILLIAM J. M C D O N O U G H , Vice

Chairman

ROGER W . FERGUSON, JR.

E D W A R D W . KELLEY, JR.

MICHAEL H . MOSKOW

E D W A R D M . GRAMLICH

LAURENCE H . MEYER

WILLIAM POOLE

THOMAS M . HOENIG

CATHY E. MINEHAN

ALTERNATE MEMBERS
JERRY L . JORDAN

A N T H O N Y M . SANTOMERO

ROBERT D . M C T E E R , JR.

GARY H . STERN

JAMIE B . STEWART, JR.

STAFF
D O N A L D L . K O H N , Secretary

and

Economist

N O R M A N D R . V . BERNARD, Deputy

Secretary

LYNN S. F o x , Assistant

JEFFREY C . FUHRER, Associate

Secretary

GARY P. GILLUM, Assistant

THOMAS C. BAXTER, JR., Deputy

Economist

DAVID H . HOWARD, Associate

Economist

WILLIAM C . H U N T E R , Associate

Secretary

J. VIRGIL MATTINGLY, JR., General

Economist

CRAIG S . HAKKIO, Associate

General

Economist

DAVID E . LINDSEY, Associate

Counsel

Economist

ROBERT H . RASCHE, Associate

Counsel

Economist

K A R E N H . JOHNSON,

Economist

VINCENT R . REINHART, Associate

D A V I D J. STOCKTON,

Economist

LAWRENCE SLIFMAN, Associate

CHRISTINE M . CUMMING, Associate

DAVID WILCOX, Associate

Economist

DINO KOS, Manager,

FEDERAL ADVISORY

System

Open Market

Economist

Account

COUNCIL

D O U G L A S A . WARNER, III,

President

LAWRENCE K . FISH, Vice

President

Seventh District
Eighth District
R . SCOTT JONES, Ninth District
CAMDEN R . FINE, Tenth District
RICHARD W . EVANS, JR., Eleventh District
STEVEN L . SCHEID, Twelfth District

First District
Second District
R O N A L D L . HANKEY, Third District
DAVID A . DABERKO, Fourth District
L . M. BAKER, JR., Fifth District
L . PHILLIP H U M A N N , Sixth District

LAWRENCE K . FISH,

A L A N G . MCNALLY,

D O U G L A S A . WARNER III,

KATIE




Economist
Economist

JAMES A N N A B L E ,
WILLIAM J. KORSVIK,

S.

WINCHESTER,

Co-Secretary
Co-Secretary

83

CONSUMER ADVISORY

COUNCIL
LAUREN ANDERSON, N e w Orleans, Louisiana, Chairman
DOROTHY BROADMAN, San Francisco, California, Vice Chairman

ANTHONY S. ABB ATE, Saddlebrook, N e w Jersey

ANNE S. LI, Trenton, N e w Jersey

TERESA A . BRYCE, S t . L o u i s , M i s s o u r i

J. PATRICK LIDDY, C i n c i n n a t i , O h i o

MALCOLM B U S H , C h i c a g o , I l l i n o i s

OSCAR MARQUIS, Park Ridge, Illinois

M A N U E L CASANOVA, JR., B r o w n s v i l l e , T e x a s

JEREMY NOWAK, P h i l a d e l p h i a , P e n n s y l v a n i a

CONSTANCE K . CHAMBERLIN, R i c h m o n d , V i r g i n i a

ROBERT M. CHEADLE, Oklahoma City, Oklahoma

NANCY PIERCE, Kansas City, Missouri
MARTA RAMOS, San Juan, Puerto Rico

M A R Y E L L E N DOMEIER, N e w U l m , M i n n e s o t a

R O N A L D A . REITER, S a n F r a n c i s c o , C a l i f o r n i a

LESTER W . FIRSTENBERGER, E v a n s v i l l e , I n d i a n a

ELIZABETH RENUART, B o s t o n , M a s s a c h u s e t t s

JOHN C . GAMBOA, S a n F r a n c i s c o , C a l i f o r n i a

RUSSELL W . SCHRADER, S a n F r a n c i s c o , C a l i f o r n i a

EARL JAROLIMEK, Fargo, North Dakota

F R A N K TORRES, JR., W a s h i n g t o n , D i s t r i c t o f C o l u m b i a

WILLIE M . JONES, B o s t o n , M a s s a c h u s e t t s

G A R Y S . WASHINGTON, C h i c a g o , I l l i n o i s

M . D E A N KEYES, T u c s o n , A r i z o n a

ROBERT L . W Y N N II, M a d i s o n , W i s c o n s i n

THRIFT INSTITUTIONS ADVISORY

COUNCIL

THOMAS S. JOHNSON, N e w York, N e w York,
MARK H. WRIGHT, San Antonio, Texas, Vice

President
President

TOM R. DORETY, Tampa, Florida

JAMES F. M C K E N N A , B r o o k f i e l d , W i s c o n s i n

R O N A L D S . ELIASON, P r o v o , U t a h

CHARLES C . PEARSON, JR., H a r r i s b u r g , P e n n s y l v a n i a

D. R. GRIMES, Alpharetta, Georgia

HERBERT M . S A N D L E R , O a k l a n d , C a l i f o r n i a

CORNELIUS D . M A H O N E Y , W e s t f i e l d , M a s s a c h u s e t t s

EVERETT STILES, Franklin, North Carolina
CLARENCE ZUGELTER, Kansas City, Missouri

KAREN L. MCCORMICK, Port Angeles, Washington




84

Federal Reserve Bulletin • August 2001

Federal Reserve Board Publications
For ordering
assistance,
write P U B L I C A T I O N S S E R V I C E S ,
M S - 1 2 7 , Board of Governors of the Federal Reserve System,
Washington, D C 2 0 5 5 1 , or telephone (202) 4 5 2 - 3 2 4 4 , or F A X
( 2 0 2 ) 7 2 8 - 5 8 8 6 . You may also use the publications
order
form
available
on the
Board's
World
Wide
Web
site
(http://www.federalreserve.gov). When a charge is indicated,
payment should accompany
request and be made payable
to the
Board of Governors
of the Federal Reserve System or may be
ordered via Mastercard,
Visa, or American Express. Payment from
foreign residents should be drawn on a U.S. bank.

BOOKS AND MISCELLANEOUS PUBLICATIONS
T H E FEDERAL RESERVE SYSTEM—PURPOSES

AND

FUNCTIONS.

1 9 9 4 . 1 5 7 pp.
A N N U A L REPORT: BUDGET REVIEW, 2 0 0 1 .

SELECTED INTEREST AND EXCHANGE R A T E S — W E E K L Y SERIES OF

CHARTS. Weekly. $ 3 0 . 0 0 per year or $.70 each in the United
States, its possessions, Canada, and M e x i c o . Elsewhere,
$ 3 5 . 0 0 per year or $ . 8 0 each.
REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
RATE

TABLES

(Truth

in

Lending—

Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp.
Vol. II (Irregular Transactions). 1969. 116 pp. Each v o l u m e
$5.00.
TO THE FLOW

OF F U N D S

ACCOUNTS.

January

2000.

1,186 pp. $ 2 0 . 0 0 each.
FEDERAL RESERVE REGULATORY SERVICE. L o o s e - l e a f ;

updated

monthly. (Requests must be prepaid.)
Consumer and Community Affairs Handbook. $ 7 5 . 0 0 per year.
Monetary Policy and Reserve Requirements Handbook. $ 7 5 . 0 0
per year.
Securities Credit Transactions Handbook. $ 7 5 . 0 0 per year.
The Payment S y s t e m Handbook. $ 7 5 . 0 0 per year.
Federal Reserve Regulatory Service. Four vols. (Contains all
four Handbooks plus substantial additional material.) $ 2 0 0 . 0 0
per year.




T H E FEDERAL RESERVE A C T A N D OTHER STATUTORY PROVISIONS
THE FEDERAL RESERVE SYSTEM,

as

amended

T H E U . S . ECONOMY IN AN INTERDEPENDENT WORLD: A M U L T I -

each in the United States, its possessions, Canada, and
M e x i c o . Elsewhere, $ 3 5 . 0 0 per year or $ 3 . 0 0 each.
ANNUAL STATISTICAL DIGEST: period covered, release date, number of pages, and price.
October 1982
2 3 9 pp.
$ 6.50
1981
1982
D e c e m b e r 1983
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$ 7.50
2 6 4 pp.
$11.50
1983
October 1 9 8 4
1984
October 1985
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$12.50
October 1986
$15.00
1985
231 pp.
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$15.00
1986
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1987
N o v e m b e r 1989
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$25.00
1988
7 1 2 pp.
$25.00
1980-89
March 1991
N o v e m b e r 1991
185 pp.
$25.00
1990
N o v e m b e r 1992
2 1 5 pp.
$25.00
1991
$25.00
1992
D e c e m b e r 1993
2 1 5 pp.
$25.00
December 1994
281 pp.
1993
D e c e m b e r 1995
190 pp.
$25.00
1994
N o v e m b e r 1996
4 0 4 pp.
$25.00
1990-95

GUIDE

COMPUTERS. C D - R O M ; updated monthly.
Standalone PC. $ 3 0 0 per year.
Network, m a x i m u m 1 concurrent user. $ 3 0 0 per year.
Network, m a x i m u m 10 concurrent users. $ 7 5 0 per year.
Network, m a x i m u m 5 0 concurrent users. $ 2 , 0 0 0 per year.
Network, m a x i m u m 100 concurrent users. $ 3 , 0 0 0 per year.
Subscribers
outside the United States should add $50 to cover
additional airmail
costs.

through October 1998. 7 2 3 pp. $ 2 0 . 0 0 each.

FEDERAL RESERVE BULLETIN. M o n t h l y . $ 2 5 . 0 0 p e r y e a r o r $ 2 . 5 0

PERCENTAGE

follows

FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL

AFFECTING

A N N U A L REPORT, 1 9 9 9 .

ANNUAL

Rates for subscribers
outside the United States are as
and include additional air mail costs:
Federal Reserve Regulatory Service, $ 2 5 0 . 0 0 per year.
Each Handbook, $ 9 0 . 0 0 per year.

COUNTRY MODEL, M a y 1984. 5 9 0 pp. $ 1 4 . 5 0 each.
INDUSTRIAL

PRODUCTION—1986

EDITION.

December

1986.

4 4 0 pp. $ 9 . 0 0 each.
FINANCIAL

FUTURES

AND

OPTIONS

IN

THE

U.S.

ECONOMY.

D e c e m b e r 1986. 2 6 4 pp. $ 1 0 . 0 0 each.
FINANCIAL SECTORS IN O P E N ECONOMIES: EMPIRICAL

ANALY-

SIS AND POLICY ISSUES. August 1990. 6 0 8 pp. $ 2 5 . 0 0 each.
RISK MEASUREMENT AND SYSTEMIC RISK: PROCEEDINGS OF A
JOINT CENTRAL B A N K RESEARCH CONFERENCE. 1 9 9 6 .

5 7 8 pp. $ 2 5 . 0 0 each.

EDUCATION PAMPHLETS
Short pamphlets
suitable for classroom
available without
charge.

use. Multiple

copies

are

Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection L a w s
A Guide to Business Credit for W o m e n , Minorities, and Small
Businesses
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
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
H o m e Mortgages: Understanding the Process and Your Right
to Fair Lending
H o w to File a Consumer Complaint about a Bank (also available
in Spanish)
Making Sense of Savings
W e l c o m e to the Federal Reserve
W h e n Your H o m e is on the Line: What You Should K n o w
About H o m e Equity Lines of Credit
K e y s to Vehicle Leasing (also available in Spanish)
Looking for the Best Mortgage (also available in Spanish)

85

STAFF STUDIES: Only Summaries

Printed in the

167.

Studies and papers on economic and financial subjects that are of
general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and
169 are out of print, but photocopies of them are available. Staff
Studies 165-174 are available on line at
www.federalreserve.gov/
pubs/staffstudies.
Requests to obtain single copies of any paper or
to be added to the mailing list for the series may be sent to
Publications
Services.

PERFORMANCE"

N E W DATA ON THE PERFORMANCE OF N O N B A N K

VICES

BY

MARKETS
SMALL

AND

AND

THE

USE

SER-

BUSINESSES,

1 7 1 . T H E COST OF B A N K R E G U L A T I O N : A R E V I E W OF THE E V I -

DENCE, by Gregory Elliehausen. April 1998. 35 pp.

1 6 2 . EVIDENCE ON THE S I Z E OF B A N K I N G MARKETS FROM M O R T GAGE L O A N

RATES

IN T W E N T Y

CITIES,

by

Stephen

A.

REAL

ESTATE,

by

Rhoades. February 1992. 11 pp.
164.

THE

1989-92

CREDIT

CRUNCH

FOR

James T. Fergus and John L. Goodman, Jr. July 1993.
20 pp.




U S I N G S U B O R D I N A T E D D E B T AS A N INSTRUMENT OF M A R -

KET DISCIPLINE, by Study Group on Subordinated Notes
and Debentures, Federal Reserve System. December 1999.
6 9 pp.
173.

by

Gregory E. Elliehausen and John D. Wolken. September
1 9 9 0 . 3 5 pp.

"OPERATING

METHODOLOGIES,

LATIONS: A N A N A L Y S I S OF EXPERIENCE WITH THE T R U T H

SUBSIDI-

OF FINANCIAL

MEDIUM-SIZED

STUDY"

IN SAVINGS ACT, by Gregory Elliehausen and Barbara R.
Lowrey. December 1997. 17 pp.

Donald Savage. February 1990. 12 pp.
BANKING

"EVENT

by Stephen A. Rhoades. July 1994. 37 pp.

ARIES OF B A N K HOLDING COMPANIES, b y N e l l i e L i a n g a n d
160.

AND

1 7 0 . T H E COST OF IMPLEMENTING CONSUMER FINANCIAL R E G U -

172.
159.

A SUMMARY OF MERGER PERFORMANCE STUDIES IN B A N K ING, 1 9 8 0 - 9 3 , A N D A N ASSESSMENT OF THE

BULLETIN

IMPROVING

PUBLIC

DISCLOSURE

IN

BANKING,

by

Study

Group on Disclosure, Federal Reserve System. March 2000.
3 5 pp.
174.

B A N K MERGERS A N D B A N K I N G STRUCTURE IN THE U N I T E D

STATES, 1980-98, by Stephen Rhoades. August 2000. 33 pp.

86

Federal Reserve Bulletin • August 2001

Maps of the Federal Reserve System

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 February 1996.

87

1-A

2-B

4-D

3-C

5-E

m

/
«H

•

Buffalo
M . "
^

RI

BOSTON

Pittsburgh

NY

/

N E W YORK

6-F

PHILADELPHIA

MS I
i

• Gificninati
KY
CLEVELAND

RICHMOND

J-H

7-G

JH>

Baltimore MD

, v^r

NY

^w^ji
ville
ni-L

New Orleans

Y
Miami

ATLANTA

Little

CHICAGO

ST. LOUIS

9-1

MINNEAPOLIS

10-J

12-L

KANSAS CITY

11-K




KL

DALLAS

S A N FRANCISCO

88

Federal Reserve Bulletin • August 2001

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

William C. Brainard
William O. Taylor

Cathy E. Minehan
Paul M. Connolly

NEW YORK*

10045

Peter G. Peterson
Charles A. Heimbold, Jr.
Bal Dixit

William J. McDonough
Jamie B. Stewart, Jr.

Buffalo

14240

PHILADELPHIA

19105

Charisse R. Lillie
Glenn A. Schaeffer

Anthony M. Santomero
William H. Stone, Jr.

CLEVELAND*

44101

Jerry L. Jordan
Sandra Pianalto

Cincinnati
Pittsburgh

45201
15230

David H. Hoag
Robert W. Mahoney
George C. Juilfs
Charles E. Bunch

RICHMOND*

23219

J. Alfred Broaddus, Jr.
Walter A. Varvel

Baltimore
Charlotte

21203
28230

Jeremiah J. Sheehan
Wesley S. Williams, Jr.
George L. Russell, Jr.
James F. Goodmon
John F. Wieland
Paula Lovell
Catherine Sloss Crenshaw
Julie K. Hilton
Mark T. Sodders
Whitney Johns Martin
Ben Tom Roberts

Jack Guynn
Patrick K. Barron

Arthur C. Martinez
Robert J. Darnall
Timothy D. Leuliette

Michael H. Moskow
Gordon R. G. Werkema

Charles W. Mueller
Walter L. Metcalfe, Jr.
Vick M. Crawley
Roger Reynolds
Gregory M. Duckett

William Poole
W. LeGrande Rives

James J. Howard
Ronald N. Zwieg
Thomas O. Markle

Gary H. Stern
James M. Lyon

Terrence P. Dunn
Jo Marie Dancik
Kathryn A. Paul
Patricia B. Fennell
Gladys Styles Johnston

Thomas M. Hoenig
Richard K. Rasdall

H. B. Zachry, Jr.
Patricia M. Patterson
Beauregard Brite White
Edward O. Gaylord
Patty P. Mueller

Robert D. McTeer, Jr.
Helen E. Holcomb

Nelson C. Rising
George M. Scalise
William D. Jones
Nancy Wilgenbusch
H. Roger Boyer
Richard R. Sonstelie

Robert T. Parry
John F. Moore

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

Vice President
in charge of branch

Barbara L. Walter1

Barbara B. Henshaw
Robert B. Schaub

William J. Tignanelli 1
Dan M. Bechter1
James M. McKee
Andre T. Anderson
Robert J. Slack
James T. Curry III
Melvyn K. Purcell1
Robert J. Musso 1

David R. Allardice 1

Robert A. Hopkins
Thomas A. Boone
Martha Perine Beard

Samuel H. Gane

Carl M. Gambs 1
Kelly J. Dubbert
Steven D. Evans

Sammie C. Clay
Robert Smith III1
James L. Stull 1

Mark L. Mullinix 2
Raymond H. Laurence1
Andrea P. Wolcott
David K.Webb 1

*Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424;
Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee,
Wisconsin 53202; and Peoria, Illinois 61607.
1. Senior Vice President.
2. Executive Vice President




89

Publications of Interest
FEDERAL RESERVE REGULATORY

SERVICE

To promote public understanding of its regulatory functions, the Board publishes the Federal Reserve Regu-

latory Service, a four-volume loose-leaf 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.
The Monetary

Policy

and Reserve

Requirements

Handbook contains Regulations A, D, and Q, plus
related materials.
The Securities

Credit Transactions Handbook

con-

tains Regulations T, U, and X, dealing with extensions of credit for the purchase of securities, together
with related statutes, Board interpretations, rulings,
and staff opinions. Also included is the Board's list of
foreign margin stocks.
The Consumer

and Community Affairs

Handbook

contains Regulations B, C, E, G, M, P, Z, AA, BB, and
DD, and associated materials.

GUIDE TO THE FLOW OF FUNDS

the Federal Reserve Regulatory

Service and $75 for

each handbook. For subscribers outside the United
States, the price including additional air mail costs is
$250 for the service and $90 for each handbook.
The Federal Reserve Regulatory Service is also avail-

able on CD-ROM for use on personal computers. For a
standalone PC, the annual subscription fee is $300. For
network subscriptions, the annual fee is $300 for 1 concurrent user, $750 for a maximum of 10 concurrent
users, $2,000 for a maximum of 50 concurrent users,
and $3,000 for a maximum of 100 concurrent users.
Subscribers outside the United States should add $50
to cover additional airmail costs. For further information, call (202) 452-3244.
All subscription requests must be accompanied by a
check or money order payable to the Board of Governors of the Federal Reserve System. Orders should be
addressed to Publications Services, mail stop 127, Board
of Governors of the Federal Reserve System, Washington, DC 20551.

ACCOUNTS

A new edition of Guide to the Flow of Funds Accounts

is now available from the Board of Governors. The new
edition incorporates changes to the accounts since the
initial edition was published in 1993. Like the earlier
publication, it explains the principles underlying the
flow of funds accounts and describes how the accounts
are constructed. It lists each flow series in the Board's
flow of funds publication, "Flow of Funds Accounts of
the United States" (the Z.l quarterly statistical release),




The Payment System Handbook deals with expedited
funds availability, check collection, wire transfers, and
risk-reduction policy. It includes Regulations CC, J, and
EE, related statutes and commentaries, and policy
statements on risk reduction in the payment system.
For domestic subscribers, the annual rate is $200 for

and describes how the series is derived from source
data. The Guide also explains the relationship between
the flow of funds accounts and the national income and
product accounts and discusses the analytical uses of
flow of funds data. The publication can be purchased,
for $20.00, from Publications Services, Board of Governors of the Federal Reserve System, Washington, DC
20551.

90

Federal Reserve Bulletin • August 2001

Federal Reserve Statistical Releases
Available on the Commerce Department's
Economic Bulletin Board
The Board of Governors of the Federal Reserve System makes some of its statistical releases available to
the public through the U.S. Department of Commerce's economic bulletin board. Computer access
to the releases can be obtained by subscription.

For further information regarding a subscription to
the economic bulletin board, please call (202) 4821986. The releases transmitted to the economic bulletin board, on a regular basis, are the following:

Reference
Number

Statistical release

Frequency of release

H.3

Aggregate Reserves

Weekly/Thursday

H.4.1

Factors Affecting Reserve Balances

Weekly/Thursday

H.6

Money Stock

Weekly/Thursday

H.8

Assets and Liabilities of Insured Domestically Chartered
and Foreign Related Banking Institutions

Weekly/Monday

H.10

Foreign Exchange Rates

Weekly/Monday

H.15

Selected Interest Rates

Weekly/Monday

G.5

Foreign Exchange Rates

Monthly/end of month

G.17

Industrial Production and Capacity Utilization

Monthly/midmonth

G.19

Consumer Installment Credit

Monthly/fifth business day

Z.l

Flow of Funds

Quarterly