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VOLUME 78 •

NUMBER 12 •

DECEMBER 1 9 9 2

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, WASHINGTON, D . C .
PUBLICATIONS COMMITTEE

Joseph R. Coyne, Chairman • S. David Frost • Griffith L. Garwood
• Donald L. Kohn • J. Virgil Mattingly, Jr. • Michael J. Prell • Edwin M. Truman

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

Table of Contents
879 THE EVOLUTION OF THE
U.S. COMMERCIAL PAPER MARKET
SINCE 1980

The U.S. commercial paper market, an important source of short-term funds for corporations, changed in many ways over the past
decade. At the start of the 1980s, the market
was reserved primarily for the largest and
most creditworthy U.S. companies, and investor holdings of commercial paper were distributed about evenly over several investor
groups. Over the next ten years, the market
grew to about five times its 1979 size; many
new issuers and some new dealers arrived on
the scene; some long-standing issuers all but
withdrew from the market; holdings of paper
became more concentrated by investor group;
and a new form of commercial paper emerged.
This article describes these changes and the
forces that helped produce them.
892 THE STATE AND LOCAL GOVERNMENT
SECTOR: LONG-TERM TRENDS AND
RECENT FISCAL PRESSURES

State and local governments continue to face
budget pressures. The sector has reported a
deficit in its combined operating and capital
account for five and one-half years now.
The fiscal difficulties appear to reflect both
recent developments—including increased
demand for certain services and the economic
recession—and long-term trends in spending,
taxation, and federal grants. This article
focuses on these long-term factors and gives a
brief perspective on the outlook.
902 INDUSTRIAL PRODUCTION AND
CAPACITY UTILIZATION

Industrial production decreased 0.2 percent in
September, following a decline of 0.4 percent
in August and an increase of 0.8 percent in

July. The utilization of total industrial capacity fell 0.3 percentage point in September, to
78.4 percent.
905 STATEMENT TO THE CONGRESS
John P. LaWare, member, Board of Governors, addresses developments in the banking
system and the near-term outlook for bank
failures and says that, although a significant
number of commercial banks remain troubled,
a turnaround in the commercial banking
industry seems well under way, before the
Senate Committee on Banking, Housing, and
Urban Affairs, October 26, 1992.
909 ANNOUNCEMENTS
Revisions to the program for payments system
risk reduction.
Amendments to Regulation C.
Proposed policy statement regarding branch
closings by state member banks; proposal to
change the opening time for the Fedwire funds
transfer service; extension of comment period
on an advance notice of proposed rulemaking
in connection with a review of Regulation T.
Publication of revised Lists of OTC Stocks
and of Foreign Margin Stocks.
Publication of the Annual Statistical Digest,
1991.
911 RECORD OF POLICY ACTIONS OF THE
FEDERAL OPEN MARKET COMMITTEE
At its meeting on August 18, 1992, the Committee adopted a directive that called for maintaining the existing degree of pressure on
reserve positions and that included a bias
toward possible easing during the intermeeting period. Accordingly, in the context of the
Committee's long-run objectives for price

stability and sustainable economic growth,
and giving careful consideration to economic,
financial, and monetary developments,
slightly greater reserve restraint might be
acceptable or slightly lesser reserve restraint
would be acceptable during the intermeeting
period. The reserve conditions contemplated
at this meeting were expected to be consistent
with growth in M2 and M3 at annual rates of
about 2 percent and V2 percent respectively
over the six-month period from June through
December.
918 LEGAL

DEVELOPMENTS

Various bank holding company, bank service
corporation, and bank merger orders; and
pending cases.
A1 FINANCIAL AND BUSINESS STATISTICS

These tables reflect data available as of
October 28, 1992.
A3 GUIDE TO TABULAR PRESENTATION
A4 Domestic Financial Statistics
A44 Domestic Nonfinancial Statistics
A53 International Statistics

A69 GUIDE TO STATISTICAL RELEASES AND
SPECIAL TABLES
A70 INDEX TO STATISTICAL TABLES
A72 BOARD OF GOVERNORS AND STAFF
A74 FEDERAL OPEN MARKET COMMITTEE
AND STAFF; ADVISORY COUNCILS
A76 FEDERAL RESERVE BOARD
PUBLICATIONS
A78 ANTICIPATED SCHEDULE OF RELEASE
DATES FOR PERIODIC RELEASES
A80 INDEX TO VOLUME 78
A92 MAPS OF THE FEDERAL RESERVE
SYSTEM
A94 FEDERAL RESERVE BANKS,
AND OFFICES

BRANCHES,

The Evolution of the U.S.
Commercial Paper Market since 1980
Mitchell A. Post, of the Board's Division of
Research and Statistics, prepared this article.
Michael A. Schoenbeck and Joyce A. Payne provided research assistance.
The U.S. commercial paper market, an important
source of short-term funds for corporations,
changed in many ways over the past decade. At the
start of the 1980s, the market was reserved primarily for the largest and most creditworthy U.S.
companies, and investor holdings of commercial
paper were distributed about evenly over several
investor groups. Over the next ten years, the market grew to about five times its 1979 size; many
new issuers and some new dealers arrived on the
scene; some long-standing issuers all but withdrew
from the market; holdings of paper became more
concentrated by investor group; and a new form of
commercial paper emerged.
In the 1980s, relatively high rates on long-term
funds and bank loans and an expanding economy
fueled a rapid expansion of commercial paper
issuance. Old-line borrowers were a large part of
the growth, but in addition, many new issuers—
including smaller U.S. corporations, foreign corporations, and foreign financial institutions—were
attracted to the market. The heavy activity in
mergers and acquisitions in the second half of the
decade helped drive up issuance. The development
of the swaps market also stimulated the issuance
of commercial paper, as borrowers combined paper
with swaps to create liabilities in other currencies.
Asset-backed commercial paper also came into use,
providing off-balance-sheetfinancingfor trade and
credit card receivables. Finally, the growth of
money market mutual funds, coupled with a shift
in the composition of their investments toward
commercial paper, made them the largest single
source of funds to the market.
As the 1990s unfolded in economic recession,
the commercial paper market began to exhibit some

growing pains and took another turn in its evolution. A series of defaults on commercial paper
began in 1989, and tighter regulations were
imposed on money market mutual fund holdings of
medium-grade paper; these events heightened the
concern about credit quality—always paramount—
to the point that investors effectively forced many
medium-quality issuers to cut back sharply on their
use of the commercial paper market. Some other
issuers of long standing, rated just above mediumgrade, also cut back on their use of the market.
A further change has arisen in the commercial
paper market in the area of services supplied by
banks. As a result of financial stress on banks and
with pressure from the markets and regulators for
banks to raise capital levels, the banks' costs of
providing letters of credit and backup liquidity to
the commercial paper market have increased. The
efforts of banks to increase profit margins on loans
are tending to make commercial paper funding
relatively more attractive. Existing and potential
commercial paper issuers, however, must minimize
their use of these now more costly services to keep
costs down.
Overall, the U.S. commercial paper market
remains an important source of short-term funds
for corporations. New issuers of high credit quality
will continue to be attracted by the liquidity and
low cost of funds available in the market.

SOURCES OF GROWTH IN THE 1980S

Over the 1980s, commercial paper outstanding
grew at an average annual compound rate of about
17 percent (chart 1, table 1). In 1988, the size of the
commercial paper market even temporarily surpassed that of the U.S. Treasury bill market.
Several market forces fueled the dramatic growth
of the commercial paper market in the 1980s. First,

880

Federal Reserve Bulletin • December 1992

1. Commercial paper outstanding, 1975-911
Billions of dollars

2. Spread of the London interbank offered rate over the
composite rate for thirty-day commercial paper placed
by dealers, 1975-911
Basis points

1. Seasonally adjusted. Shading indicates periods of recession as defined
by the National Bureau of Economic Research (NBER). Vertical line
indicates peak; NBER has not yet determined the trough of the 1990-91
recession.
SOURCE. Federal Reserve Bank of New York.

movements in interest rates stimulated the issuance
of commercial paper early in the decade. Commercial paper consists of short-term, unsecured promissory notes issued mostly by corporations. Maturities range up to 270 days, with most issues
maturing within 60 days; thus, nonbank firms seeking short-term funds regard commercial paper as an
alternative to bank loans. At the outset of the
1980s, when the Federal Reserve sought reductions
in the trend rate of money growth to lower the high
rate of inflation, all interest rates soared, and the
high longer-term rates favored short-term borrow1. Commercial paper outstanding, by type of issuer,
1979-91
Billions of dollars at year-end, seasonally adjusted

Year

Total

Financial firms

Nonfinancial
firms

Total

Dealerplaced

Directly
placed

1979
1980
1981
1982
1983
1984

112.8
124.4
165.8
166.4
187.7
237.6

30.7
36.9
53.8
47.4
46.2
70.6

82.2
87.5
112.0
119.0
141.5
167.0

17.4
19.6
30.3
34.6
44.5
56.5

64.8
67.9
81.7
84.4
97.0
110.5

1985
1986
1987
1988
1989

298.8
331.3
359.0
458.5
525.8

85.0
77.7
81.9
103.8
131.3

213.7
253.6
277.0
354.7
394.5

78.4
101.7
102.7
159.8
183.6

135.3
151.9
174.3
194.9
210.9

1990
1991

561.1
530.3

146.2
132.7

414.9
397.6

215.1
214.4

199.8
183.2

16.6
.4

15.6
.5

17.0
.4

26.5
8.1

12.5
-6.8

MEMO

Average annual
compound
growth rate
(percent)
1979-89
1989-91

SOURCE. Federal Reserve Bank of New York.

1975

1980

1985

1990

1. The rate for commercial paper is the average of offering rates of several
leading dealers for industrial firms whose bond rating is AA or the equivalent; the average has been converted to a coupon equivalent to be consistent
with LIBOR.
SOURCE. Board of Governors of the Federal Reserve System and the
Federal Reserve Bank of New York.

ing by all firms. Moreover, the base rate on bank
loans (the London interbank offered rate) increased
markedly relative to the commercial paper rate
(chart 2); the large spread encouraged many firms
to enter the commercial paper market for the first
time. By the end of the decade, the amount of
nonfinancial commercial paper outstanding was
about 21 percent of outstanding commercial and
industrial loans at banks, compared with about
11 percent at the start (table 2).
Second, in 1983, the economy began an expansion that lasted to the end of the decade. In typical fashion, the issuance of commercial paper
expanded with the economy as nonfinancial
firms—manufacturers, commercial concerns, and
utilities—financed growing production, new inventories, or new receivables; and as financial firms,
including banks and finance companies, raised
funds to finance the growing needs of their
customers.
Third, the wave of mergers and acquisitions in
the latter half of the 1980s also produced new
issues because firms often temporarily financed the
transactions with commercial paper before tapping
more permanent sources of funding. ?
Fourth, the development of the derivatives markets, especially for swaps, added to market growth
in the second half of the decade. The growing
internationalization of financial markets allowed
domestic and foreign investment-grade firms to tap
any market for funds, including the commercial

The Evolution of the U.S. Commercial Paper Market since 1980

Nonfinancial commercial paper outstanding as a
proportion o f banks' commercial and industrial loans
outstanding, 1 9 7 9 - 9 1
Billions of dollars except as noted, December average,
seasonally adjusted
Year

Commercial
and industrial
loans

Nonfinancial
commercial
paper

Commercial paper held by taxable m o n e y market
mutual funds as a share o f total fund assets and total
commercial paper outstanding, 1 9 8 0 - 9 1
Year-end, not seasonally adjusted

1979

284.8

30.1

10.6

321.0
360.6
399.0
422.5
484.5

37.7
55.2
50.7
47.0
72.4

11.7
15.3
12.7
11.1
14.9

1985
1986
1987
1988
1989

511.3
548.1
575.9
620.3
653.9

86.9
81.1
84.4
103.5
134.1

17.0
14.8
14.7
16.7
20.5

1990
1991

659.8
636.7

150.5
134.9

22.8
21.2

SOURCES. Board of Governors of the Federal Reserve System and the
Federal Reserve Bank of New York.

paper market, and then to transform the funds into
the currency, maturity, or interest rate index of
choice.
THE INVESTORS AND THEIR SENSITIVITY
TO CREDIT RATINGS
The creation of wealth during the long economic
expansion made vast sums of investible funds
available to meet the burgeoning supply of commercial paper. The six-fold increase in the assets of
money market mutual funds between 1980 and the
end of 1991 accommodated a significant part of the
growth in total commercial paper (table 3). By
year-end 1991, the money market mutual fund
industry held about one-third of all commercial
paper outstanding and was the largest single investor group in the market (table 4). Bank trust companies, on behalf of individuals, were second in share
of paper owned.1 Other important investors in commercial paper in 1991 were nonfinancial corporations, life insurance companies, and the retirement
and savings plans for state and local government
employees.
1. Flow of Funds Section, Board of Governors of the Federal
Reserve System; these data include bankers acceptances. Bank
trusts are part of the sector in the flow of funds accounts that covers
households, personal trusts, and nonprofit organizations; bank trust
departments probably account for most of the commercial paper
held in the sector.

Fund holdings of commercial paper

Total
fund
assets
(billions
of
dollars)

Total
(billions
of dollars)

1980
1981
1982
1983
1984

74.4
181.9
206.6
162.6
209.7

25.0
56.8
50.3
46.8
78.3

33.6
31.2
24.4
28.8
37.3

20.6
35.3
31.0
25.5
33.8

1985
1986
1987
1988
1989

207.4
228.4
254.5
272.0
357.5

87.6
94.9
100.4
117.0
178.5

42.2
41.5
39.4
43.0
49.9

29.9
29.1
26.9
25.9
34.2

1990
1991

414.8
448.3

200.6
187.6

48.4
41.8

36.0
35.5

Paper as a
percent of
loans

1980
1981
1982
1983
1984

881

Year

As a
percent of
As a
total
percent of
total assets commercial
paper

SOURCES. Investment Company Institute and Federal Reserve Bank of
New York.

All of these investors regard commercial paper
as they do other money market instruments, as
assets that are highly liquid and have highly stable
market values. The liquidity of commercial paper
arises, in part, from the vast amount of short-term
funds invested every day. Moreover, dealers bid
regularly on paper that they have placed for issuers,
and direct issuers of paper will often prepay on
their paper at the request of investors. Investors,
however, typically hold paper to maturity, largely
because the maturities of commercial paper are set
to suit investor requirements.
Because commercial paper primarily is the debt
of corporations, default risk is a major concern of
investors. Accordingly, investors place heavy
emphasis on the evaluations made by the credit
rating agencies concerning the financial health of
firms that issue commercial paper. Virtually all
commercial paper is rated by at least one of the
four major credit rating organizations (see box).
Top-rated paper carries a 1+ or 1, and mediumgrade paper generally carries a 2; a 3 is the lowest
investment-grade rating.
The rating agencies grade commercial paper programs according to the inherent credit quality of
the issuers. A firm that agencies consider worthy of
a rating of 3 or better, however, generally receives
the rating only if it also maintains alternative
sources of liquidity sufficient to pay off its out-

882

Federal Reserve Bulletin • December 1992

Distribution of commercial paper and bankers acceptances, by type of investor, selected years, 1 9 8 0 - 9 1
Billions of dollars except as noted, at year-end, not seasonally adjusted
1980

1985

1991

Type of investor

Money market mutual funds
Households, trusts, and nonprofit corporations ...
Nonfinancial corporate business
State and local government retirement plans
and savings plans
Private pension plans
Mutual funds
Life insurance companies
Commercial banks
Other1
Total

Amount

Percent

Amount

Percent

Amount

Percent

31.6
42.6
19.4

19.3
26.0
11.8

99.1
122.1
45.3

27.6
34.1
12.6

191.9
165.7
53.4

33.9
29.3
9.4

n.a.
19.5
3.8
8.3
15.8
22.8

n.a.
11.9
2.3
5.1
9.6
13.9

n.a.
19.9
4.1
20.0
9.7
38.3

n.a.
5.6
1.1
5.6
2.7
10.7

29.4
28.4
21.5
20.8
10.6
44.2

5.2
5.0
3.8
3.7
1.9
7.8

163.8

100

358.5

100

565.9

100

MEMO

Commercial paper outstanding

121.6

293.9

528.1

1. Includes federally sponsored credit agencies, thrift institutions, and
securities brokers and dealers.

SOURCE. Flow of Funds Section, Board of Governors of the Federal
Reserve System.

standing commercial paper and other short-term
liabilities in full at maturity.2 Backup liquidity provides funds if the issuer suddenly finds that it
cannot roll over maturing paper, but only if the
issuer otherwise remains creditworthy. Thus,
backup liquidity does not guarantee investors that
they will be paid off under all circumstances. The

rating agencies generally require that backup
liquidity should equal 100 percent of the size of the
commercial paper program and of other short-term
obligations. Top-rated issuers, however, can get by
with less.
Backup liquidity may come in several forms,
but often the issuer sets up lines of credit with
banks. The rating agencies prefer that bank lines
be revolving credits with same-day availability of
funds. With a revolving line, an issuer has a contractual agreement from the banks, in exchange for
a fee, that the banks will lend up to the stated
amount of money when needed. Nonetheless, most

2. See, for example, Solomon Samson and Mark Bachmann,
"Paper Backup Policies Revised," Standard & Poor's CreditWeek,
September 10, 1990, pp. 23-24; and Jane Maxwell Grant and
others, Alternative Liquidity for Commercial Paper Issuers,
Moody's Special Report (Moody's Investors Service, February
1992).

Short-Term Ratings by the Major Credit Rating Agencies1
Duff & Phelps
Credit
Rating Co.

Category

19922

July'

Aug.

Sept.*

June

Total

108.5

109.3

108.9

108.6

-.4

Previous estimate

108.5

109.2

108.6

-.4

-.5

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

109.0
109.6
124.1
97.2
107.6

109.5
110.3
124.5
98.0
108.9

109.3
110.1
125.1
97.9
108.2

109.1
110.2
124.7
96.8
107.9

-.6
-1.1
-.3
-.6
-.1

.5
.6
.3
.8
1.2

109.6
108.5

110.1
109.0
111.6
100.6
109.3

109.8
109.0
110.9
99.3
108.2

109.4
108.2
110.8
98.1

-.3
-.6
.0
-1.7
-.6

.5
.5
.6
2.6
2.4

June

Major industry groups
Manufacturing
Durable
Nondurable
Mining
Utilities

111.0

98.0
106.7

111.0

July

Aug.

Sept. i
-.2

-.2
-.2
.6
-.1
-.7

-.2
.1
-.3
-1.2
-.2

.2
.8
2.1
.3
.4

-.3
.0
-.6
-1.2
-.9

-.4
-.7
.0
-1.2
2.6

.4
-.1
1.1
-3.2
1.2
MEMO

Capacity utilization, percent
1991
Average,
1967-91

Low,
1982

1992

High,
1988-89

Sept. 1991
to
Sept. 1992

Sept.

June'

Julyr

Aug.r

Sept. P

Capacity,
percentage
change,
Sept. 1991
to
Sept. 1992

Total

82.1

71.8

85.0

79.9

78.6

79.1

78.7

78.4

2.2

Manufacturing
Advanced processing
Primary processing .
Mining
Utilities

81.4
81.0
82.3
87.4
86.7

70.0
71.4
66.8
80.6
76.2

85.1
83.6
89.0
87.2
92.3

78.8
77.7
81.3
88.5
85.1

77.8
76.3
81.4
85.4
82.1

78.0
76.2
82.5
87.6
84.1

77.7
76.1
81.5
86.5
83.2

77.2
75.7
81.0
85.5
85.3

2.5
3.0
1.3
.2
1.0

1. Seasonally adjusted.
2. Change from preceding month to month indicated.

as a whole, industrial production rose at an annual
rate of 1.6 percent; it grew at a 5.2 percent annual
rate in the second quarter. The utilization of total
industrial capacity fell 0.3 percentage point in
September, to 78.4 percent.
When analyzed by market group, the data show
that the output of consumer goods changed little
since July. The output of durable consumer goods
fell in September, mainly because of the reduced
production of goods for the home. The output of
consumer nondurables rose, however, with particularly sharp increases in the use of residential electricity and gasoline; elsewhere within consumer
nondurables, overall production was unchanged.
The output of business equipment, which rose
0.6 percent in August, decreased 0.3 percent in
September. The production of informationprocessing equipment rose a bit, but the production
of industrial equipment remained weak, and the

r Revised,
p Preliminary.

output of transit equipment, which includes trucks
and commercial aircraft, fell sharply. The output of
materials edged down further in September. Among
durables, the output of parts and materials used by
the motor vehicle industry fell sharply, partly as a
result of strikes at two major parts plants. In addition, the production of basic metals, particularly
steel, dropped noticeably. The output of nondurable
materials, which declined 1.4 percent in August,
was unchanged, with gains in paper and textiles
offsetting a drop in chemicals. Higher electricity
output boosted the production of energy materials,
but reduced coal mining and the lingering effects of
Hurricane Andrew on oil and gas extraction tempered this gain.
When analyzed by industry group, the data show
that the output in manufacturing declined 0.4 percent in September and that factory utilization fell
0.5 percentage point, to 77.2 percent. The level of

904

Federal Reserve Bulletin • December 1992

capacity utilization in manufacturing has fallen
1 percentage point since May, its high this year.
The overall factory operating rate for advancedprocessing industries has dropped more than 1 percentage point since May; the most significant losses
have been in transportation equipment, apparel,
furniture, instruments, and printing. For primaryprocessing industries as a whole, the utilization rate
rose sharply in July but has fallen off in the past
two months and now stands 0.5 percentage point
below the May level. In September, the capacity
utilization rates for petroleum refining and fabricated metal products were about IV2 percentage

points below their rates in May. Despite some
recent weakness in output, the operating rate for
primary metals was still well above its level in the
spring of this year. The utilization rates in
construction-related industries have been little
changed, on balance, in recent months.
The utilization rate in mining in September was
about 2 percentage points below its level in July;
the disruptions in the oil and gas extraction industry caused by Hurricane Andrew and reduced coal
mining have contributed to the decline. At utilities,
the operating rate has been volatile lately, oscillating between 82 percent and 85 percent since spring.

905

Statement to the Congress
Statement by John P. LaWare, Member, Board
of Governors of the Federal Reserve System,
before the Committee on Banking, Housing, and
Urban Affairs, U.S. Senate, October 26, 1992
I am pleased to be here to address developments
in the banking system and the near-term outlook
for bank failures. This topic has attracted increasing attention because recently released
studies suggest that the commercial banking industry has problems of the magnitude approaching what we have seen among thrift institutions.
This possibility was raised even during the latest
Presidential debates. One study, in particular,
states that the number and assets of failed commercial banks will soon surge.
A significant number of commercial banks
remain troubled, and their assets are substantial
indeed. However, in my view, there should be no
so-called "December surprise." Several commercial banks will be closed in the coming
months, partly because of implementation of new
authority for prompt corrective action but mainly
as a result of procedures that are already in
place. The costs of these failures may be larger
than we would like, but they should be a small
fraction of some estimates that were recently
cited in the press.
Mention has also been made of the recent pace of
bank and thrift closings, which have been fewer
than previously expected so far this year. In the case
of thrift institutions, some slowdown has resulted
simply because of lack of funding needed by the
Resolution Trust Corporation to resolve institutions
that should be closed. However, I am aware of no
reduction in the pace of resolutions for commercial
banking institutions that was not warranted by conditions at each bank.
This year has been an especially favorable
period for many banks, and the industry's improved profitability has helped some institutions
remain at least temporarily solvent beyond the
period in which they had been expected to fail.

Such favorable events explain the pace of bank
closings better than charges of an orchestrated
slowdown.
In the remainder of my remarks I will provide
an assessment of the outlook for the commercial
banking industry, and, as requested, I will indicate the capitalization and undercapitalization of
particular groups of banks. However, I will defer
to the Federal Deposit Insurance Corporation
(FDIC) for other specific figures regarding the
number and estimated costs of near-term bank
failures and the general strength of the Bank
Insurance Fund (BIF).

SIGNIFICANT

PROBLEMS

REMAIN

During my testimony in June regarding the condition of the commercial banking system, I cited
the stubbornly high number of banks that were
considered to be problem institutions—those
banks with supervisory ratings of 4 or 5. Although the figure has improved slightly since
then, more than 950 banks with assets of nearly
$500 billion remain troubled. This current level
represents significant progress in reducing the
number of problem banks from its peak of nearly
1,600 institutions at the end of 1987, but their
combined assets are clearly large.
Through mid-October, eighty-five BIF-insured
commercial and savings banks holding $28 billion
in assets have failed this year, but only $4.3
billion of these assets were related to commercial
banks. So far, savings banks, which are operationally more akin to thrift institutions, have
dominated this year's results. By comparison,
ninety commercial banks with $42 billion in assets had failed by this time last year. In the
normal course of events, we can expect that
additional commercial banks will fail during the
remaining months of 1992, and not all of them
will be small. Overall, however, their number

906

Federal Reserve Bulletin • December 1992

and especially the amount of affected assets
should be well below the 1991 totals.

PROMPT

CORRECTIVE

ACTION

The provision for prompt corrective action of the
Federal Deposit Insurance Corporation Improvement Act (FDICIA) becomes effective near yearend and will change the rules for closing troubled
banks. Beginning December 19, 1992, authorities
will be able to close institutions that are "critically undercapitalized," although still technically
solvent. Banks critically undercapitalized, in
turn, are defined by statute as those having
tangible equity equal to or less than 2.0 percent
of total assets. The act provides for specific steps
to be taken at that point and at other less-thanadequate levels of capital.
Institutions that are critically undercapitalized
must be placed in conservatorship or receivership within ninety days, unless the appropriate
federal banking agency and the FDIC determine
that other actions are best. To avoid seizure,
such institutions must have positive net worth
and must be improving their condition in several
specified ways. Although we are still developing
operating procedures to implement these requirements, presumably some of the critically undercapitalized institutions would meet the necessary
tests and continue to survive. Others, however,
should expect to be closed in the coming months.
The committee requested information on the
number of banks in each category of capital
rating. As of midyear, 98 percent of all BIFinsured commercial banks met the minimum capital standard for being at least adequately capitalized, and 93 percent of the industry was
considered "well capitalized".1 About 230
banks, however, were undercapitalized and
could be directly affected by prompt corrective
action in some way. Of these banks, less than
fifty institutions with total assets of roughly $8
billion risk being closed because of their critically
undercapitalized designation. The remaining un-

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

dercapitalized banks face other regulatory sanctions if their ratios do not improve.
When evaluating these figures, note that not all
problem banks have ratios that show them as
being undercapitalized. For that reason, the legislation also permits the agencies to reduce by
one category the assessment of a bank's capital
adequacy on the basis of factors other than
capital, with the exception that a bank may not
be downgraded in this manner to the critically
undercapitalized level. Such reclassifications
could occur for any institution deemed to be
engaged in an unsafe or unsound practice, and
FDICIA permits that finding on the basis of a
less-than-satisfactory examination rating and
failure by the institution to correct the deficiency. Although these procedures are not yet
implemented, they will alter the initial classifications derived from published financial statements.

RECENT

STUDIES

I would like at this point to comment on studies
that have been cited recently in the press, particularly the book entitled Banking on the Brink.2
In my view, and as I have stated on behalf of the
Federal Financial Institutions Examination
Council, this publication has serious errors and
shortcomings. Important assumptions are extremely pessimistic and outdated; its methodology is poor; and important calculations reflect a
misunderstanding of bank regulations. As a result, its conclusions significantly overstate the
likely cost of resolving problem banks and contribute to misperceptions about the state of the
industry's health. Other studies have also forecasted large costs to the public for resolving
troubled commercial banks. They, too, overstate
their case and, so far, have been wrong.
Forecasting is difficult, and the best forecasters can make mistakes. Especially in banking,
the industry's outlook depends heavily on future
economic conditions, and those conditions—as I
well know—are hard to predict. Current eco-

2. See Vaughan, Robert, and Edward Hill, Banking on the
Brink (Washington Post Company Briefing Books, 1992).

Statement to the Congress

nomic growth is slow, and any decline could
adversely affect many banks, reverse recent
progress, and increase resolution costs. Forecasters, however, and especially public officials,
have obligations to be reasonable as well as
forthcoming. Considering my outlook for the
economy and that of the Federal Reserve, I
strongly disagree with assertions that we are
facing a "hidden" or unexpected surge of problem banks or a surge in resolution activities.

RECENT PERFORMANCE
BANKING
SYSTEM

OF THE

Part of my more optimistic assessment rests on
the recent performance of the industry, which
continues to improve: Earnings are at record
levels; average capital ratios are at twenty-fiveyear highs; and nonperforming assets continue to
decline. Investors have also recognized improvements and look more positively on publicly
traded bank stocks.
During the first half of this year (the latest
period for which industry data are available),
commercial banks earned almost $16 billion and
more than 0.90 percent on assets—the strongest
annualized rate of profitability in the post-WorldWar II era. This increased profitability was also
widespread, with nearly 62 percent of all banks
reporting returns on assets of more than 1.0
percent. If that share of highly profitable banks is
maintained for the year, it would be the largest
since 1981. Partial third-quarter results suggest
that improvement remains strong, with about 250
of the largest banking companies that have reported indicating nine-month profits averaging 35
percent greater than those for the same period
last year.
Increased earnings, reduced dividends, and
record stock sales have also helped substantially
to strengthen the capitalization of commercial
banking organizations and to intensify a trend
that has been observable for a decade. The
industry's equity capital of nearly $250 billion
represents 7.23 percent of assets, the highest
ratio since 1966. The industry's average riskbased capital ratio improved 0.78 percentage
point during the first six months of this year,
alone, climbing to 11.53 percent, and well above

907

the year-end 1992 minimum standard of 8.0 percent. As mentioned, 98 percent of all banks had
already met that standard by midyear.
The principal concern to the industry and the
main reason that banks fail are poor credit decisions and the subsequent drop in the quality of
their loans. The 1980s were rough years for many
banks, as developing country, agriculture, energy, and commercial real estate loans produced
large losses and caused the volume of problem
loans to surge. This experience has left many
bankers with a greater appreciation of the need to
maintain sound credit standards and to price
their loans right.
Fortunately, however, the tide of growing
problems seems to have turned. Since June 1991,
the volume of nonaccruing loans has steadily
declined, although loss reserves have increased.
At midyear, reserves covered nearly 90 percent
of the industry's aggregate volume of nonaccruing loans. The level of foreclosed real estate,
which increased sharply in 1990 and 1991, is
showing signs that it is beginning to stabilize.
Office vacancy rates remain high, and that problem will not be quickly resolved. Commercial
real estate markets remain weak in many regions
throughout the United States, and some markets
continue to decline. Generally, however, the
implications of these problems for commercial
banks seem to have improved.
Stock markets, generally early indicators, also
view banks with increased favor. Market prices
for the industry's fifty largest companies increased from an average of less than 90 percent
of book value at year-end 1990 to nearly 150
percent earlier this month. Gains in stock prices
of large banks sharply outpaced those of the
Standard and Poor's 500 index and provided
market opportunities for many banking institutions. Since the beginning of 1991, the largest
fifty companies, alone, have taken advantage of
the improvement to issue a record $14 billion of
new common and preferred stock in public and
private offerings. Still other issues are in process.
Although the industry continues to have problems, important restructuring and consolidation
efforts should also provide a boost, enabling
banks to reduce their costs and eliminate excessive pressures to compete. The financial services
industry increased rapidly during the 1980s, as

908

Federal Reserve Bulletin • December 1992

foreign and nonbank organizations expanded
their market shares. Mergers and acquisitions
have helped bankers and regulators strengthen
weak banks in the past, and they should help in
the future as well.

DEPOSIT INSURANCE

SYSTEM

The FDIC can best estimate the effect of recent
events on the strength of the Bank Insurance
Fund. Of course, much depends on the manner in
which bank failures can be resolved. I believe
that experience suggests that merging weak
banks with strong ones, rather than liquidating
them, is generally the best approach. That procedure seems to offer greater possibilities today,
given the improved performance of much of the
industry, including that of many large banks.
The continued strengthening of the industry
and the recently announced higher insurance
premium rates should also begin to reduce pressures and help rebuild the insurance fund. Nevertheless, although the FDIC has provided substantial reserves for future costs that are
available to use, the Bank Insurance Fund has
been depleted, and some Treasury or further
working capital borrowings may be needed before the fund is made whole. In the final analysis,
however, I believe that statutory goals for re-

building the fund to 1.25 percent of insured
deposits will be met well within the allowed
fifteen-year period.
Some banking institutions remain weak, but
the industry's progress should not be overlooked. A few sizable savings banks have been
closed in recent months, and other large savings
and commercial banks may be closed in the
months ahead. In general, though, a turnaround
in the commercial banking industry seems well
under way. Reports of huge future losses make
sensational headlines, but the economy would
need to decline dramatically from current levels
to produce losses that approach estimates seen
recently in the media.
Although recent events are clearly positive, I
do not want to leave the impression that there are
no concerns with the banking industry. Its underlying costs and competitive pressures remain
great, and fundamental reform of banking laws is
still needed. The Congress should consider legislation to permit the integration of our financial
system similar to developments in Canada, Europe, and Japan and should act to remove barriers to interstate branching as well. Reducing the
regulatory burden on banks should also be considered. Such changes would help to further
improve the profitability and the long-term competitiveness and viability of the U.S. banking
system.
•

909

Announcements
REVISIONS TO THE PROGRAM FOR
PAYMENTS SYSTEM RISK REDUCTION

The Federal Reserve Board issued on October 7,
1992, revisions to its program for payments system
risk reduction.
One key provision of the revised program is the
adoption of a fee for daylight overdrafts that occur
in the reserve and clearing accounts of depository
institutions. Another key aspect revises the procedures used to measure the amount of overdrafts in
reserve and clearing accounts during the day.
The Board made the changes after receiving
comments on two occasions over the past three
years.
Under an amendment to the Board's Regulation J (Check Collection and Funds Transfer), a
paying bank will be required to settle for checks as
early as one hour after presentment of those checks
from a Federal Reserve Bank. This change is
needed to implement procedures for posting check
debits and credits to reserve and clearing accounts
of depository institutions to measure daylight overdrafts more accurately. This provision as well as
the modified measurement procedures go into effect
on October 14, 1993.
A fee of 25 basis points at an annual rate, phased
in over a two-year period, will be assessed against
the average daily total daylight overdraft of a
depository institution. Fees of $25 or less per twoweek period will be waived to reduce the administrative burden on affected institutions.
The first phase of overdraft pricing—10 basis
points at an annual rate for the current ten-hour
Fedwire operating day—will go into effect on
April 14, 1994. The fee will rise to 20 basis points
one year later and to 25 basis points a year after
that.
The Board estimated that, when fully phased in,
fewer than 300 institutions will be subject to actual
payment of the fee under current conditions.

AMENDMENTS

TO REGULATION

The Federal Reserve Board issued on October 7,
1992, amendments to its Regulation CC (Availability of Funds and Collection of Checks), that
call for same-day settlement of checks presented
by private-sector banks. The amendments require
paying banks to settle for checks presented by
private-sector banks on the day of presentment
without the imposition of presentment fees if specified conditions are met. The rule becomes effective on January 3, 1994.
Under the new rule, a check would qualify for
same-day settlement if it is presented by 8:00 a.m.
(local time of the place of presentment) at a location designated by the paying bank. The settlement
must be made by the close of Fedwire on the
business day the check is presented by credit to an
account at a Federal Reserve Bank. The rule holds
all parties to a good faith standard. Provisions of
this rule can be varied by agreement.
PROPOSED

ACTIONS

The Federal Reserve Board issued for public comment on October 2, 1992, a proposed policy statement regarding branch closings by state member
banks. Comments should be received by December 4, 1992.
The Federal Reserve Board issued for public
comment on October 7, 1992, a proposal that
would change the opening time for the Fedwire
funds transfer service from 8:30 a.m. Eastern Time
(ET) to 6:30 a.m. ET, effective October 4, 1993.
The Board's proposal also calls for comment on
whether the Fedwire securities transfer service
should open concurrently with the funds transfer
service. In addition, the Board requests input from
depository institutions, their customers, and the
financial markets regarding the costs and benefits
of possible further expansion of Fedwire operating

910

Federal Reserve Bulletin • December 1992

hours over time. Comment is requested by January 8, 1993.
The Federal Reserve Board announced on October 13, 1992, that it had extended the period to
receive public comments on an advance notice of
proposed rulemaking in connection with a review
of Regulation T (Credit by Brokers and Dealers).
Comments were due by November 16, 1992,
instead of October 16, 1992.

PUBLICATION OF REVISED LISTS OF OTC
STOCKS AND OF FOREIGN MARGIN STOCKS
The Federal Reserve Board published on October
23, 1992, a revised List of Marginable OTC Stocks
(OTC List) for over-the-counter (OTC) stocks that
are subject to its margin regulations. Also published was the List of Foreign Margin Stocks
(Foreign List) for foreign equity securities that are
subject to Regulation T (Margin Credit Extended
by Brokers and Dealers). The lists are effective
November 9, 1992, and supersede the previous lists
that were effective August 10, 1992.
The Foreign List indicates those foreign equity
securities that are eligible for margin treatment at
broker-dealers. There were seven new additions
and six deletions from the Foreign List, which now
contains 301 foreign equity securities.
The changes that have been made to the revised
OTC List, which now contains 3,110 OTC stocks,
are as follows:
• One hundred twenty-six stocks have been
included for the first time, 103 under National
Market System (NMS) designation
• Forty stocks previously on the list have been
removed for substantially failing to meet the
requirements for continued listing
• Forty-four stocks have been removed for
reasons such as listing on a national securities
exchange or involvement in an acquisition.

The OTC List is published by the Board for the
information of lenders and the general public. It
includes all OTC securities designated by the Board
pursuant to its established criteria as well as all
OTC stocks designated as NMS securities for
which transaction reports are required to be made
pursuant to an effective transaction reporting plan.
Additional OTC securities may be designated as
NMS securities in the interim between the Board's
quarterly publications and will be immediately
marginable. The next publication of the Board's
list is scheduled for January 1993.
Besides NMS-designated securities, the Board
will continue to monitor the market activity of
other OTC stocks to determine which stocks meet
the requirements for inclusion and continued inclusion on the OTC List.
PUBLICATION OF THE
Annual Statistical Digest, 1991
The Annual Statistical Digest, 1991 is now available. This one-year Digest is designed as a compact
source of economic, and especially financial, data.
The Digest provides a single source of historical
continuations of the statistics carried regularly in
the Federal Reserve Bulletin.
This issue of the Digest covers only 1991 unless
data were revised for earlier years. It serves to
maintain the historical series first published in
Banking and Monetary Statistics, 1941-1970, and
the Digest for 1970-79, for 1980-89, and yearly
issues. A Concordance of Statistics will be included with all orders. The Concordance provides
a guide to tables that cover the same material in the
current and the previous single-year issues of the
Digest, the ten-year Digest for 1980-89, and the
Bulletin.
Copies of the Digest at $25.00 each are available
from Publications Services, mail stop 138, Board
of Governors of the Federal Reserve System,
Washington, DC 20551.
•

911

Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON AUGUST

18,1992

The information reviewed at this meeting suggested that economic activity was continuing to
expand, although at a subdued pace. Consumer
spending had firmed recently; business purchases
of capital equipment had risen further; and falling
mortgage interest rates, which appeared to have
triggered a wave of mortgage refinancings, likely
were providing some impetus to housing demand.
On the other hand, industrial production and
employment had increased little on balance, and a
sizable expansion in the labor force had raised the
unemployment rate to a cyclical high. Recent data
on wages and prices indicated that inflation was
slowing.
A rebound in total nonfarm payroll employment
in July more than offset a decline in June; however,
about half the rise over June and July reflected
temporary hiring associated with a federally sponsored summer jobs program that recently had been
enacted. Apart from the jobs program, moderate
gains in employment were recorded in service
industries, while payrolls declined in both manufacturing and construction. The average workweek
of production or nonsupervisory workers during
the June-July period was at its lowest level of the
year, and the civilian unemployment rate averaged
73A percent.
Industrial production, which had increased
noticeably in earlier months, was about unchanged
on balance over June and July, as a rise in July
retraced a decline that had occurred in June. Much
of the July advance stemmed from a higher level of
output in mining and utilities, where special factors
had held down production in earlier months. Factory output was unchanged in July after a small
decline in June; production of computers and other
information processing equipment continued to
increase at a rapid rate, but output of motor vehicles and parts fell in both months. Production

schedules indicated that domestic assemblies of
motor vehicles would increase in August. The utilization of total industrial capacity slipped on balance over June and July but remained a little above
its December 1991 level.
Retail sales increased moderately in July after
registering little growth in the second quarter. General merchandisers reported sharp gains following
a period of sluggish sales since April, and sales
rose considerably further at apparel outlets and
furniture and appliance stores. Sales of motor vehicles dropped back in July from an elevated June
pace. With mortgage rates falling, sales of new
single-family homes increased in June after leveling off in May, and reports indicated that mortgage
applications for home purchases were rising. Permits issued for the construction of new housing
units advanced slightly in July, but starts of such
units declined further.
Shipments of nondefense capital goods were
up sharply in June, partly reflecting continued
increases in shipments of office and computing
equipment. Data on new orders pointed to a further
substantial rise in business purchases of durable
equipment in coming months. Nonresidential construction slackened again in June; weakness in
industrial construction added to persisting contractions in outlays for commercial office buildings.
Recent information on new contracts continued to
suggest that nonresidential construction would
decline more slowly over the months ahead.
Business inventories surged in June after declining a little in May. At the retail level, inventories
increased by a substantial amount, with the accumulation spread about equally among durable and
nondurable goods. The jump in inventories lifted
retailers' stocks-to-sales ratios to the upper end of
the range of the past year. Wholesale trade inventories also expanded sharply in June, with runups
reported for a wide range of goods; sales increased
by more, however, and the inventory-to-sales ratio

912

Federal Reserve Bulletin • December 1992

in wholesale trade fell slightly. By contrast, manufacturing stocks edged down in June, and the
inventory-to-shipments ratio dropped to its lowest
level since the middle of 1979.
The nominal U.S. merchandise trade deficit widened again in May. For April and May combined,
the deficit was substantially larger than its average
rate in the first quarter. The value of exports fell
considerably over the two-month period, with
reduced shipments of aircraft accounting for the
bulk of the decline. The value of imports rose
substantially, as imports of oil rebounded from
first-quarter lows and imports of a wide range of
other goods also increased. Economic activity in
the major foreign industrial countries appeared to
have slowed on balance in recent months. Canada,
France, and Italy seemed to have experienced modest economic growth, but activity apparently had
slowed or declined in Germany and Japan, and
there was little indication that a recovery had begun
in the United Kingdom.
Producer prices offinishedgoods increased modestly over June and July. Abstracting from the
sometimes volatile food and energy components,
prices of otherfinishedgoods rose at a significantly
slower pace in the twelve months ended in July
than in the preceding twelve months. At the consumer level, prices advanced only a little in July
after a June increase that had been boosted somewhat by a temporary bulge in energy prices. Food
prices, which were unchanged on balance over
June and July, continued to hold down overall
increases in consumer prices. Excluding food and
energy items, consumer price inflation over the
year ended in July was markedly lower than in the
preceding year. Measures of labor costs also evidenced smaller increases. Hourly compensation of
private industry workers rose at a substantially
slower pace in the second quarter and in the twelve
months ended in June. The deceleration in overall
compensation reflected slower growth in both its
benefits and its wage and salary components. For
production or nonsupervisory workers, average
hourly earnings were unchanged in July, and the
twelve-month change in this measure was substantially reduced.
At its meeting on June 30-July 1, the Committee
adopted a directive that called for maintaining the
existing degree of pressure on reserve positions and
that included a bias toward possible easing during

the intermeeting period. Accordingly, the directive
indicated that in the context of the Committee's
long-run objectives for price stability and sustainable economic growth, and giving careful consideration to economic, financial, and monetary developments, slightly greater reserve restraint might be
acceptable or slightly lesser reserve restraint would
be acceptable during the intermeeting period. The
contemplated reserve conditions were expected to
be consistent with a resumption of growth in M2
and M3 at annual rates of about 2 percent and
V2 percent respectively over the three-month period
from June through September.
The day after the meeting, the Board of Governors approved a reduction in the discount rate from
3Vi to 3 percent, and open market operations were
directed at allowing the full amount of the reduction to be reflected in money market rates. These
actions were taken in the context of a continuing
downtrend in inflation and in light of incoming
information that suggested flagging momentum in
the economic recovery and persisting softness in
credit and money. Later in the intermeeting period,
a technical increase was made to expected levels of
adjustment plus seasonal borrowing to reflect rising
demands for seasonal credit. Adjustment plus seasonal borrowing averaged close to expected levels
during the two full reserve maintenance periods
completed since the meeting. The federal funds
rate, which had been around 3% percent prior to
the monetary easing action, averaged 3VA percent
subsequently.
Other market interest rates declined considerably
in early July, reflecting both the sluggishness portrayed by incoming economic data and the monetary policy easing. Commercial banks also lowered
their prime rate from 6V2 percent to 6 percent. In
subsequent weeks, with a steady flow of new information pointing to a hesitant recovery and more
favorable trends in wages and prices, yields on
intermediate- and long-term Treasury securities
dropped further. Over the intermeeting period,
yields on most private securities tended to decline
by amounts comparable to those on Treasury
instruments, but rates on fixed-rate home mortgages fell by somewhat less, apparently owing in
large part to heightened mortgage investor concerns about prepayment risk stemming from a
surge in refinancing activity. Broad indexes of
stock prices changed little over the period.

Record of Policy Actions of the Federal Open Market Committee

In foreign exchange markets, the trade-weighted
value of the dollar in terms of the other G-10
currencies declined on balance over the intermeeting period. Early in the period, the dollar fell in
response to the more uncertain prospects for nearterm growth in the United States and the concurrent easing of U.S. monetary policy. Later, the
dollar fell further following an increase in the discount rate in Germany and the issuance of unfavorable U.S. trade data for May. Conceited centralbank intervention in foreign exchange markets was
undertaken to brake the decline of the dollar, and
the latter tended to stabilize over the remainder of
the intermeeting period.
M2 and M3 contracted somewhat further in July,
despite a resumption of rapid growth in Ml. Both
broad monetary aggregates were substantially
weaker in July than had been anticipated at the
time of the June 30-July 1 meeting. The declines in
these aggregates apparently reflected in part the
continuing redirection of household holdings of
time deposits toward bond and stock funds or the
repayment of debt, and in part the reduced funding
needs of depository institutions owing to the further rechanneling of credit demands outside the
depository sector, a development that was encouraged by the declines in interest rates in long-term
debt markets. To some extent, the persisting weakness in money also might have been associated
with relatively slow expansion in income since the
early months of the year. Through July, both M2
and M3 were appreciably below the lower ends of
the Committee's ranges for their growth in 1992.
The staff projection prepared for this meeting
pointed to a continuation of subdued economic
expansion in the near term followed by a gradual
pickup in growth through next year. The forecast
took account of the further easing of reserve conditions in early July and the substantial rally that had
taken place in the bond markets. Housing construction was expected to pick up in response to the
declines in mortgage interest rates; and in the business sector, lower interest rates and improved profits and cash flows were projected to enhance access
to sources of finance and to provide the basis for an
acceleration in plant and equipment spending as the
recovery gained momentum. The slow pace of hiring and the modest expansion of incomes currently
were tending to restrain consumer spending, but
continued progress by households in restructuring

913

balance sheets and reducing debt-servicing burdens, in conjunction with improving job prospects,
were expected to foster growth in consumer spending more in line with the expansion of income. In
addition, some stimulus to domestic production
was projected to emerge over the forecast horizon
from improving export demand as a result of the
depreciation of the dollar in recent months and
some anticipated strengthening of economic activity in the major foreign industrial countries. In the
government sector, continuing cutbacks in defense
spending were expected to damp federal expenditures, and budget problems at state and local levels
of government to constrain spending and result in
tax increases. A persisting though decreasing margin of slack in resource utilization was projected to
be associated with further progress toward price
stability.
In the Committee's discussion of current and
prospective economic developments, members
referred to statistical and anecdotal indications that
the rate of economic expansion had slowed to a
relatively subdued pace since the early months of
the year. A number of factors seemed to be restraining the expansion, including efforts by business
firms and households to restructure balance sheets,
some apparent deterioration in business and consumer sentiment, and sluggish economic growth
abroad. Nonetheless, the low levels of real and
nominal interest rates in short-term debt markets,
recent decreases in intermediate- and long-term
interest rates and in the foreign exchange value of
the dollar, and the fairly ample liquidity suggested
by some measures all were consistent with expectations of some strengthening in business activity in
coining quarters. Still, in the view of a number of
members, the economic expansion was likely to be
on a slightly lower track over the next several
quarters than they previously had anticipated. At
the same time, many commented that they were
encouraged by the accumulating signs of diminishing price and wage inflation, and some observed
that faster and more convincing progress was being
made toward achieving price stability than they had
anticipated earlier.
The members recognized that the outlook for the
economy was subject to major uncertainties. A
number commented that they could not identify
any sector of the economy that seemed primed to
provide the impetus needed for a vigorous expan-

914

Federal Reserve Bulletin • December 1992

sion, but they also acknowledged the difficulty of
anticipating the pattern and trajectory of an expansion. With regard to domestic economic developments, the ongoing restructuring activities by financial and nonfinancialfirmsand by households were
continuing to exert a restraining effect on economic
activity by diverting cash flows from business
investment and consumer expenditures. Considerable progress appeared to have been made toward
redressing earlier over-expansion and credit
excesses. Over time, cash flows would be redirected toward more normal patterns of spending for
goods and services, with stimulative implications
for the economy. However, the timing and extent of
such a development could not be predicted with
any degree of confidence, and in any case the
positive effects probably would be felt only gradually and there could be substantial restraint on
economic activity for a longer period than was
anticipated earlier. On the more positive side, banking institutions had made a good deal of progress in
improving their capital positions and strengthening
their portfolios, and many of these institutions now
were reported to be seeking lending opportunities
more actively, though the demand for loans
remained unusually depressed.
Turning to developments in key sectors of the
economy, members noted that, for now, consumers
continued to be affected by a high degree of caution that appeared to stem especially from concerns
about job security and job opportunities in an environment of continuing business consolidations, cutbacks by state and local governments, and reductions in defense spending. Against the background
of quite limited growth in overall demand, which
could be met largely through improvements in productivity and lengthening workweeks, business
firms were continuing to hold back in their hiring
of new workers. Ongoing efforts by many consumers to reduce their debt burdens and lower interest
income from declining rates on deposits and market instruments were contributing to the softness in
consumer spending. Against this background, some
members indicated that they would not rule out a
further rise in the personal saving rate.
Overall spending by business firms on fixed
investment and inventories was believed likely to
remain relatively moderate, at least in the quarters
immediately ahead, in light of the negative business sentiment associated in turn with lagging con-

sumer and government expenditures. While spending for equipment was growing at a fairly brisk
pace, spurred by efforts to modernize production
facilities for competitive reasons, business construction continued to be deterred by an oversupply of space in commercial structures, especially office buildings, in numerous areas around
the country. Cautious inventory investment
reflected lackluster demand as well as continuing
efforts to manage inventories more tightly in relation to sales.
The outlook for housing activity appeared to
have improved somewhat after the recent declines
in mortgage rates, though the available data and
anecdotal reports on housing market developments
were mixed. While mortgage refinancing activity
had turned sharply upward across the nation, mortgage loan demand for home purchases was still
lagging in many areas.
Given serious budgetary problems at all levels of
government, the public sector of the economy was
not viewed as likely to provide stimulus to the
expansion over the next several quarters. At the
federal level, continuing declines in defense spending were expected to be offset only in part by fairly
slow growth in other expenditures for goods and
services, and some of the most depressed areas of
the country were strongly affected by trends in the
defense industry. At the state and local government
levels, the well-publicized budget problems of
California were shared to one degree or another by
many other parts of the country; spending curbs
seemed likely to hold down any impetus to demand
from this sector of the economy, while increases in
state and local taxes would tend to restrain business
and household demand.
The outlook for the nation's foreign trade balance was difficult to evaluate. The decline in the
foreign exchange value of the dollar had favorable
implications for net exports over time, but the
outlook for relatively restrained expansion in key
industrial countries pointed to limited growth in the
demand for U.S. exports. At the same time, even
moderate economic growth in the U.S. economy
could be expected to foster some further increases
in imports over coming quarters despite the lower
dollar.
With regard to the outlook for inflation, many of
the members commented on what they viewed as
increasingly persuasive evidence of slower rates of

Record of Policy Actions of the Federal Open Market Committee

increase in wages and prices. Against the background of relatively restrained growth in economic
activity and the related outlook for limited pressures on labor and other productive resources, a
number of members indicated that they had lowered their inflation forecasts for the next several
quarters. There were widespread reports of strong
competitive pressures in most industries and of
successful efforts to hold down costs through
improvements in productivity. On the negative side,
the considerable depreciation of the dollar in recent
months and lingering concerns about future price
pressures, apparently associated especially with
worries about the outlook for the federal budget,
could tend to impair progress toward price stability.
On balance, however, members saw the prospects
for significantly less inflation over the projection
horizon as quite promising.
Turning to policy for the intermeeting period,
a majority of the members indicated that they
favored an unchanged policy, while some
expressed a preference for further easing either at
this meeting or in the near future. The members
who supported a steady policy course recognized
that in a period characterized by relatively sluggish
economic expansion and a wide variety of risks to
the economy, conditions might emerge that would
warrant consideration of some further easing. For
the time being, however, they preferred a wait-andsee approach in view of the recent easing of reserve
conditions and the considerable declines in longerterm interest rates and in the foreign exchange
value of the dollar. The Committee should continue
to evaluate a variety of indicators for signs that the
expansion might be falling short of an acceptable
growth path.
Some members commented that an easing of
monetary policy under current conditions would
incur too great a risk of adversely affecting domestic bond markets. One aspect of that risk was the
possibility of a destabilizing decline of the dollar in
foreign exchange markets; the potential for such a
decline had prompted the recent exchange market
intervention in support of the dollar by the United
States and several other nations. Any further easing
in this view should be implemented only under
conditions or circumstances in which the System's
commitment to its price stability objective was not
likely to be brought into question. An unchanged
policy also would give the Committee more room

915

to respond vigorously, if necessary, to a weakerthan-expected economy or to disruptive conditions
in financial markets, should they develop at some
point.
Members who leaned toward some near-term
easing of reserve conditions commented that such a
policy move was not likely to foster inflationary
pressures under current or prospective economic
conditions, given the appreciable margin of unused
resources in the economy. At the same time, an
easier monetary policy would accelerate balancesheet restructuring activities .and tend to compensate for the adverse effects of such activities on
spending. A greater degree of monetary policy
easing than had been needed in the past seemed to
be required to overcome the depressing effects of
the restructuring activities and to cushion an
already sluggish expansion against the possibility
of some further loss in momentum.
One factor weighing in favor of careful consideration of a more accommodative posture in reserve
markets was the behavior of the broad monetary
aggregates. The staff analysis prepared for this
meeting suggested that some pickup in the growth
of M2 and M3, though to a still quite sluggish pace,
was likely over the months ahead on the assumption of unchanged conditions in reserve markets.
Members observed that the indications of some
renewed M2 growth since late July tended to support that conclusion; some also drew encouragement from the sharp upturn in the growth of
reserves and Ml in July. The members noted that
growth of the broader aggregates in line with current expectations implied expansion for the year at
rates somewhat below the lower ends of the Committee's ranges. Such a development would be
consistent with the Committee's policy objectives
if, as expected, unusual strength in the velocity of
M2 and M3 were to persist over the balance of the
year. In the circumstances, monetary growth and
indicators of velocity behavior would need to be
monitored carefully over coming months.
In the Committee's discussion of possible intermeeting adjustments to the degree of reserve pressure, a majority of the members indicated their
preference or acceptance of a directive that was
biased toward possible easing during the weeks
ahead. Members who preferred some easing over
the near term indicated that they could support a
directive that gave particular weight to develop-

916

Federal Reserve Bulletin • December 1992

ments that might call for an easing move. Some
others noted that while they might have preferred a
symmetric directive in current circumstances, the
proposed bias in the directive was acceptable
because an easing of reserve conditions was more
likely than a tightening in the intermeeting period.
Moreover, a return to a symmetric directive might
well be misread as a change in policy that the
Committee did not intend at this point. Two members expressed a strong preference for a symmetric
directive because they were persuaded that monetary policy should not be eased except in response
to compelling new evidence that current policy was
impeding an expansion of the economy in line with
its long-run potential. They noted that a symmetric
directive would not rule out a policy change, in
either direction, during the intermeeting period if
such a change appeared to be warranted by the
incoming economic orfinancialinformation.
At the conclusion of the Committee's discussion,
all but two of the members indicated that they
favored or could accept a directive that called for
maintaining the existing degree of pressure on
reserve positions and that included a bias toward
possible easing during the intermeeting period.
Accordingly, in the context of the Committee's
long-run objectives for price stability and sustainable economic growth, and giving careful consideration to economic, financial, and monetary developments, slightly greater reserve restraint might be
acceptable or slightly lesser reserve restraint would
be acceptable during the intermeeting period. The
reserve conditions contemplated at this meeting
were expected to be consistent with growth in M2
and M3 at annual rates of about 2 percent and
Vi percent respectively over the six-month period
from June through December.
At the conclusion of the meeting, the following
domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests
that economic activity is continuing to expand at a
subdued pace. Total nonfarm payroll employment rebounded in July after declining in June, and the civilian
unemployment rate edged down to 7.7 percent. Manufacturing output was unchanged in July, but overall industrial production was boosted by a higher level of mining
and utility output. Retail sales increased moderately in
July. Permits issued for the construction of new housing
units rose slightly in July, but housing starts fell. Recent
data on orders and shipments of nondefense capital

goods indicate further increases in outlays for business
equipment, while nonresidential construction has
remained soft. The nominal U.S. merchandise trade deficit in April-May was substantially above its average rate
in the first quarter. Incoming data on wages and prices
suggest that inflation is slowing.
Interest rates have declined considerably since the
Committee meeting on June 30-July 1. The Board of
Governors approved a reduction in the discount rate
from V/z to 3 percent on July 2. In foreign exchange
markets, the trade-weighted value of the dollar in terms
of the other G-10 currencies declined further over the
first several weeks of the intermeeting period, but it has
stabilized more recently.
M2 and M3 contracted somewhat further in July.
Through July, both aggregates were appreciably below
the lower ends of the ranges established by the Committee for the year.
The Federal Open Market Committee seeks monetary
and financial conditions that will foster price stability
and promote sustainable growth in output. In furtherance
of these objectives, the Committee at its meeting on
June 30-July 1 reaffirmed the ranges it had established
in February for growth of M2 and M3 of 2Vi to 6V2 percent and 1 to 5 percent respectively, measured from the
fourth quarter of 1991 to the fourth quarter of 1992. The
Committee anticipated that developments contributing to
unusual velocity increases could persist in the second
half of the year. The monitoring range for growth of total
domestic nonfinancial debt also was maintained at 4V2 to
8V2 percent for the year. For 1993, the Committee on a
tentative basis set the same ranges as in 1992 for growth
of the monetary aggregates and debt measured from the
fourth quarter of 1992 to the fourth quarter of 1993. The
behavior of the monetary aggregates will continue to be
evaluated in the light of progress toward price level
stability, movements in their velocities, and developments in the economy and financial markets.
In the implementation of policy for the immediate
future, the Committee seeks to maintain the existing
degree of pressure on reserve positions. In the context of
the Committee's long-run objectives for price stability
and sustainable economic growth, and giving careful
consideration to economic, financial, and monetary developments, slightly greater reserve restraint might or
slightly lesser reserve restraint would be acceptable in
the intermeeting period. The contemplated reserve conditions are expected to be consistent with growth of M2
and M3 over the period from June through December at
annual rates of about 2 and Vi percent, respectively.
Votes for this action: Messrs. Greenspan, Corrigan,
Angell, Hoenig, Jordan, Kelley, Lindsey, Mullins, Ms.
Phillips, and Mr. Syron. Votes against this action:
Messrs. LaWare and Melzer.

Messrs. LaWare and Melzer dissented because
they did not favor a directive that was biased
toward possible easing during the intermeeting

Record of Policy Actions of the Federal Open Market Committee

period. In their view, monetary policy already was
appropriately stimulative, as evidenced in part by
the low level of short-term interest rates and by the
rapid growth in reserves since early this year, and
was consistent with the promotion of economic
growth in line with the economy's long-run potential. Business and consumer confidence were in
fact at low levels, but they reflected a variety of
problems facing the economy that were unrelated
to the stance of monetary policy. Accordingly, what
was needed at this point was a more patient mone-

917

tary policy—one that was less predisposed to react
to near-term weakness in economic data and that
allowed more time for the effects of earlier easing
actions to be reflected in the economy. Indeed, an
easing move in present circumstances might well
stimulate inflationary concerns by reducing confidence in the System's willingness to pursue
an anti-inflationary policy and thus could have
adverse repercussions on domestic bond markets
and further damaging effects on the dollar in
foreign exchange markets.
•

918

Legal Developments
FINAL RULE—AMENDMENTS TO REGULATIONS
G, T, U, AND X
The Board of Governors is amending 12 C.F.R. Parts
207, 220, 221, and 224, its Reglations G, T, U, and X
(Securities Credit Transactions; List of Marginable
OTC Stocks; and List of Foreign Margin Stocks). The
List of Marginable OTC Stocks (OTC List) is comprised of stocks traded over-the-counter (OTC) in the
United States that have been determined by the Board
of Governors of the Federal Reserve System to be
subject to the margin requirements under certain Federal Reserve regulations. The List of Foreign Margin
Stocks (Foreign List) represents foreign equity securities that have met the Board's eligibility criteria
under Regulation T. The OTC List and the Foreign
List are published four times a year by the Board. This
document sets forth additions to and deletions from
the previous OTC List and the Foreign List. Both
Lists were last published on July 27, 1992 and effective
on August 10, 1992.
Effective November 9, 1992, accordingly, pursuant
to the authority of sections 7 and 23 of the Securities
Exchange Act of 1934, as amended (15 U.S.C. 78g and
78w), and in accordance with 12 C.F.R. 207.2(k) and
207.6 (Regulation G), 12 C.F.R. 220.2(u) and 220.17
(Regulation T), and 12 C.F.R. 221.2(j) and 221.7 (Regulation U), there is set forth below a listing of deletions
from and additions to the OTC List and the Foreign
List.

Deletions from the List of Marginable OTC
Stocks
Stocks Removed for Failing Continued Listing
Requirements
B&H Bulk Carriers, Ltd.: $.01 par common
Banyan Mortgage Investors L.P.: Depositary units
representing $10.00 par units of limited partnership
Banyan Mortgage Investments L.P. II: Depositary
units of limited partnership interest
Bobbie Brooks Incorporated: $.001 par common
Brajdas Corporation: $.10 par common
Calgene, Inc.: $.001 par convertible exchangeable
preferred

Cedar Group, Inc.: $.001 par common; Class A, warrants (expire 11-08-94)
Chemical Leaman Corporation: $2.50 par common
Concorde Career Colleges, Inc.: $.10 par common
Consul Restaurant Corporation: $.10 par common
Cytogen Corporation: $2.50 par convertible exchangeable preferred
EIP Microwave, Inc.: No par common
Employers Casualty Company: $.25 par common
First of American Bank Corporation: Series E, convertible preferred; 9% convertible preferred, $11,00
par value
Glenex Industries, Inc.: No par common
Griffith Consumers Company: $.01 par common
GV Medical, Inc.: $.05 par common
Health Professionals Inc.: $.02 par common
Howard Savings Bank, The (New Jersey): $2.00 par
common
Jean Philippe Fragrances, Inc.: Warrants (expire
01-15-93)
John Adams Lift Corporation: No par common
Long Lake Energy Corporation: $.001 par common
Major Realty Corporation: $.01 par common
Mass Microsystems, Inc.: No par common
Medical Technology Systems, Inc.: Warrants (expire
08-15-92)
Natec Resources, Inc.: No par common
Nu-Med, Inc.: $.01 par common
Nucorp, Inc.: Paired Warrants (expire 10-31-92);
Class C, Warrants (expire 06-30-93)
Pioneer Standard Electronics, Inc.: 9% convertible
subordinated debentures
Reserve Industries Corporation: $1.00 par common
Smith International, Inc.: Class A, Warrants (expire
02-28-95)
Sonora Gold Corporation: N o par common

Legal Developments

Tel-Offshore Trust: No par units of beneficial interest
Transtech Industries, Inc.: $.50 par common
Wolverine Exploration Company: $.50 par common;
$1.00 par convertible exchangeable preferred; Class
A, Warrants (expire 12-31-93)

Stocks Removed for Listing on a National
Securities Exchange or Being Involved in an
Acquisition

919

Niagra Exchange Corporation: $1.00 par common
Nova Pharmaceutical Corporation: $.01 par common;
Class C, Warrants (expire 06-30-93); Class D, Warrants (expire 06-30-98)
PHP Healthcare Corporation: $.01 par common
Provident Life & Accident Insurance Company of
America: Class A, $1.00 par common; Class B,
$1.00 par common
Quantronix Corporation: $.01 par common

Allied Research Corporation: $.10 par common
Applied Power, Inc.: Class A, $.20 par common
Automated Security Holdings PLC: American Depositary Receipts
Basic American Medical, Inc.: No par common

Security Financial Group Inc.: $.10 par common
Society Corporation: $1.00 par common
Sunrise Medical Inc.: $1.00 par common
Sunwest Financial Services, Inc.: No par common
Surgical Care Affiliates, Inc.: $.25 par common

Consolidated-Tamoka Land Co.: $1.00 par common
Cousins Properties Inc.: $1.00 par common

T2 Medical Inc.: $.01 par common

Durr-Fullauer Medical, Inc.: $.50 par common; 7%
convertible subordinated debentures

Washington Energy Company: $5.00 par common
Wicat Systems, Inc.: $.01 par common
Wiland Services, Inc.: $.10 par common

Federated Bank, S.S.B, (Wisconsin): $.10 par common
First American Bancorp: $1.00 par common
First Federal of Alabama, FSB: $.01 par common
First Federal Savings & Loan Association of Lenawee: $1.00 par common
First National Pennsylvania Corp.: $4,166 par common
First Peoples Financial Corporation: $6.00 par common
First Savings Bancorp: $1.00 par common
First Security Corporation of Kentucky: No par common
Fred Meyer, Inc.: $.01 par common
Goal Systems International, Inc.: No par common
Golden Corral Realty Corporation: $.01 par common
Health Insurance of Vermont, Inc.: $3.00 par common
Henley Group, Inc., The: $.01 par common
HMO America, Inc.: $.01 par common
Intermagnetics General Corporation: $.10 par common
KMC Enterprises, Inc.: $.001 par common
Magna International, Inc.: Class A, No par subordinated voting shares
Metro Bancshares Inc.: $.01 par common
New London Inc.: $.10 par common

Additions to the List of Marginable OTC
Stocks
3CI Complete Compliance Corporation: $.01 par common
4th Dimension Software Ltd.: Ordinary Shares, NIS
.01 par value
Abiomed, Inc.: $.01 par common
Adelphia Communications Corporation: Class A, $.01
par common
Alden Press Company, The: $.01 par common
Alpine Meadows of Tahoe, Inc.: $.25 par common
Amber's Stores, Inc.: $.01 par common
American Insurance Group, Inc.: $.10 par common
American Life Holding Company: $.01 par redeemable cumulative preferred
American Residential Holdings Corporation: $.04 par
common
American Studios, Inc.: $.001 par common
Amity Bancshares, Inc.: $.01 par common
Ampex Incorporated: Class A, $.01 par common
Anchor Bancorp Wisconsin, Inc.: $.10 par common
Appliance Recycling Centers of America, Inc.: No par
common
Arbor National Holdings, Inc.: $.01 par common
Arch Petroleum, Inc.: $.01 par common
B.V.R. Technologies Limited: Ordinary Shares NIS
.50 par value
Bank of East Tennessee: $2.00 par common

920

Federal Reserve Bulletin • December 1992

Banyan Systems Incorporated: $.01 par common
Base Ten Systems, Inc.: Series A, rights (expire
11-09-92)
Bestop, Inc.: $.002 par common
BII Enterprises, Inc.: No par common
Biomedical Waste Systems, Inc.: $.001 par common;
Class B, Warrants (expire 06-04-96)
Biotime, Inc.: No par common
Bolsa Chica Company, The: Series A, convertible
preferred
Branford Savings Bank (Connecticut): $1.00 par common

First Federal Savings Bank of Colorado: $1.00 par
common
First Interstate Bank of Southern Louisiana: $2.50 par
common
First Pacific Networks, Inc.: $.001 par common
First United Corporation (Maryland): $5.00 par common
Firstrock Bancorp, Inc.: $.01 par common
Genzyme Corporation: Series N, Warrants (expire
12-31-96)
Hi-Tech Pharmacal Company, Inc.: $.01 par common

California Jamar, Inc.: $.01 par common
Cam-Net Communications: No par common
Capitol Multimedia Inc.: $.10 par common
Caraustar Industries, Inc.: $.10 par common
Cenit Bancorp, Inc. (Virginia): $.01 par common
Chai-Na-Ta Ginseng Products Limited: No par common
Cheesecake Factory Incorporated, The: $.01 par common
Clinicom Incorporated: $.001 par common
Clinicorp, Inc.: $.01 par common
Columbia Banking Systems, Inc. (Washington): No
par common
Comcentral Corporation: $.02 par common
Compania Cervecerias Unides S.A.: American Depositary Receipts
Control Data Systems, Inc.: $.01 par common
Corrections Corporation of America: Warrants (expire
09-14-96)
Creative Technologies Ltd.: $.25 par ordinary shares
Crownamerica, Inc.: No par common
Cryenco Sciences Inc.: Class A, $.01 par common
Cynagen, Inc.: $.01 par common
Danskin, Inc.: $.01 par common
Data Race, Inc.: No par common
DSP Technology, Inc.: No par common
Eagle Hardware & Garden, Inc.: No par common
Electronics for Imaging, Inc.: No par common
Encore Wire Corporation: $.01 par common
Energy Conversion Devices, Inc.: $.01 par common
Envirogen, Inc.: $.01 par common
Ezcony Interamerica Inc.: No par common
F&M Distributors, Inc.: $.01 par common
Fabri-Centers of America, Inc.: 6V4% convertible subordinated debentures
First Banks, Inc.: Class C, 9% increasing rate redeemable cumulative preferred
First Charter Corporation (North Carolina): $5.00 par
common

Interface, Inc.: 8% convertible subordinated debentures due 2013
International Petroleum Corporation: No par common
Jones Spacelink, Ltd.: Class A, $.01 par common
Just Toys, Inc.: $.01 par common
Kennedy-Wilson, Inc.: $.01 par common
Layne, Inc.: $.01 par common
Lifecell Corporation: $.001 par common
Lifequest Medical, Inc.: $.001 par common
Littelfuse, Inc.: $.01 par common; Warrants (expire
12-31-2001)
McAfee Associates, Inc.: $.01 par common
Medco Containment Services, Inc.: 6% convertible
subordinated debentures
Medic Computer Systems, Inc.: $.01 par common
Medical Marketing Group, Inc.: 7.5% convertible subordinated debentures
Medrad, Inc.: $.10 par common
Megafoods Stores, Inc.: $.001 par common
Micro Bio-Medics, Inc.: $.03 par common
Microtek Medical, Inc.: $.01 par common
Mobile America Corporation: $.10 par common
Money Store, Inc., The: No par common
MSB Bancorp, Inc. (New York): $.01 par common
Mutual Savings Bank, F.S.B. (Michigan): $.01 par
common
Netrix Corporation: $.06 par common
Noise Cancellation Technologies, Inc.: $.01 par common
Northstar Computer Forms, Inc.: $.05 par common
Nu-Kote Holding, Inc.: Class A, $.01 par common
On Assignment, Inc.: $.01 par common
Paco Pharmaceutical Services, Inc.: $.01 par common
PDK Labs, Inc.: $.01 par common; Series A, $.01 par

Legal Developments

cumulative convertible preferred; Class B, Warrants
(expire 04-14-97); Class C, Warrants (expire
04-14-97)
Peak Technologies Group, Inc., The: $.01 par common
Petroleum Heat and Power Company, Inc.: Class A,
$.10 par common
Pyxis Corporation: $.01 par common
Research Frontiers Incorporated: $.125 par common
Scios Nova Inc.: Class C, Warrants (expire 06-30-93);
Class D, Warrants (expire 06-30-98)
Softimage Inc.: No par common
Somanetics Corporation: $.01 par common; Class B,
Warrants (expire 03-20-96)
Sportmart, Inc.: $.01 par common
Sports & Recreation, Inc.: $.01 par common
Sports Heros, Inc.: Warrants (expire 11-20-95)
Stratacom, Inc.: $.01 par common
Swing-N-Slide Corporation: $.01 par common
Synetic, Inc.: 1% convertible subordinated debentures

921

Nippon Telegraph & Telephone Corporation: ¥ 50,000
par common
Shimachu Co. Ltd.: ¥ 50 par common

Deletions from the List of Foreign Margin
Stocks
Hammerson Property Investment and Development
Corporation PLC: Common, par value 25 p
Hawker Siddeley Group PLC: Common, par value
25 p
Maxwell Communication Corporation PLC: Ordinary
shares, par value 25 p
Taylor Woodrow PLC: Common, par value 20 p
Trafalgar House PLC: Common, par value 20 p
Ultramar PLC (Lasmo PLC): Ordinary shares, par
value 25 p

FINAL RULE—AMENDMENT TO REGULATION J
Theragenics Corporation: $.01 par common
Todhunter International, Inc.: $.01 par common
Tops Appliance City, Inc.: No par common
Transamerican Waste Industries, Inc.: $.001 par common; Class A, Warrants (expire 11—16—96); Class B,
Warrants (expire 11-12-96)
TW Holdings, Inc.: Series A, 9% cumulative convertible exchangeable preferred
U.S. Bancorp (Oregon): Series A, 8'/s% par cumulative preferred
Union Bank (California): Series A, 8.375% preferred
stock
Uniroyal Technology Corporation: $.01 par common
Universal Standard Medical Laboratories, Inc.: No
par common
Value-Added Communications, Inc.: $.01 par common
Zoll Medical Corporation: $.01 par common

The Board of Governors is amending 12 C.F.R. Part
210, its Regulation J (Collection of Checks and Other
Items by Federal Reserve Banks and Funds Transfers
Through Fedwire) to require paying banks that receive
presentment of checks from a Federal Reserve Bank
to settle for those checks as soon as one hour after
receipt of the checks. This amendment is necessary to
implement the procedures for posting debits and credits to depository institutions' reserve and clearing
accounts in order to measure daylight overdrafts accurately under the Board's payments system risk
reduction program. The intent of the program is to
reduce both Federal Reserve and overall payments
system risk. The Board is also making other technical
and clarifying amendments to Regulation J.
Effective October 14, 1993, 12 C.F.R. Part 210 is
amended as follows:

Part 210—Regulation J (Collection of Checks
and Other Items by Federal Reserve Banks and
Funds Transfers Through Fedwire)

Additions to the List of Foreign Margin Stocks
Canon Inc.: ¥ 50 par common
Cathay Pacific Airways, Ltd.: HK$.20 par common
Citic Pacific Ltd.: HK$.40 par common
Hong Kong & China Gas Co. Ltd.: HK$.25 par
common
Hopewell Holdings Ltd.: HK$.50 par common

1. The authority citation for part 210 continues to read
as follows:
Authority: Federal Reserve Act, sec. 13 (12 U.S.C.
342), sec. ll(i) and (j) (12 U.S.C. 248(i) and (j)), sec. 16
(12 U.S.C. 248(o) and 360), and sec. 19(f) (12 U.S.C.
464); and the Expedited Funds Availability Act
(12 U.S.C. 4001 et seq.).

922

Federal Reserve Bulletin • December 1992

2. The table of contents for subpart A is amended by
revising the entry for 210.9 to read "Settlement and
Payment."
3. Section 210.2 is amended by revising paragraph (d)
and the last sentence of paragraph (g) and adding new
paragraphs (n) and (o) before the concluding text to
read as follows:

Section 210.2—Definitions.
(d) Banking day means the part of a day on which a
bank is open to the public for carrying on substantially
all of its banking functions.

(g)* * * Item does not include a check that cannot be
collected at par, or a payment order as defined in
section 210.26(i) and handled under subpart B of this
part.

(n) Clock hour means a time that is on the hour, such
as 1:00, 2:00, etc.
(o) Fedwire has the same meaning as that set forth in
section 210.26(e) of this part.

4. Section 210.9 is amended by revising the heading
and paragraph (a) to read as follows:

Section 210.9—Settlement and Payment.
(a) Cash items. (1) On the day a paying bank receives1
a cash item directly or indirectly from a Reserve
Bank, it shall settle for the item such that the
proceeds of the settlement are available to the
Reserve Bank by the close of Fedwire on that day,
or it shall return the item by the later of the close of
the paying bank's banking day or the close of
Fedwire. If the paying bank fails to settle for or
return a cash item in accordance with this paragraph
(a)(1), it is accountable for the amount of the item as
of the close of its banking day or the close of

1. A paying bank is deemed to receive a cash item on its next
banking day if it receives the item:
(1) On a day other than a banking day for it; or
(2) On a banking day for it, but after a "cut-off hour" established by
it in accordance with state law.

Fedwire on the day it receives the item, whichever
is earlier.
(2)(i) On the day a paying bank receives a cash item
directly or indirectly from a Reserve Bank, it shall
settle for the item so that the proceeds of the
settlement are available to the Reserve Bank, or
return the item, by the latest of:
(A) The next clock hour that is at least one hour
after the paying bank receives the item;
(B) One hour after the scheduled opening of
Fedwire; or
(C) Such later time as provided in the Reserve
Bank's operating circular.
(ii) If the paying bank fails to settle for or return a
cash item in accordance with paragraph (a)(2)(i) of
this section, it shall be subject to any applicable
overdraft charges. Settlement under paragraph
(a)(2)(i) of this section satisfies the settlement
requirements of paragraph (a)(1) of this section.
(3)(i) If a paying bank closes voluntarily on a day
that is a banking day for a Reserve Bank, and the
Reserve Bank makes a cash item available to the
paying bank on that day, the paying bank shall
either:
(A) On that day, settle for the item so that the
proceeds of the settlement are available to the
Reserve Bank, or return the item, by the latest
of:
(1) The next clock hour that is at least one
hour after the paying bank ordinarily would
have received the item;
(2) One hour after the scheduled opening of
Fedwire; or
(5) Such later time as provided in the Reserve
Bank's operating circular; or
(B) On the next day that is a banking day for
both the paying bank and the Reserve Bank,
settle for the item so that the proceeds of the
settlement are available to the Reserve Bank by
the later of:
(1) One hour after the scheduled opening of
Fedwire on that day; or
(2) Such later time as provided in the Reserve
Bank's operating circular; and compensate
the Reserve Bank for the value of the float
associated with the item in accordance with
procedures provided in the Reserve Bank's
operating circular.
(ii) If a paying bank closes voluntarily on a day
that is a banking day for a Reserve Bank, and the
Reserve Bank makes a cash item available to the
paying bank on that day, the paying bank is not
considered to have received the item until its next
banking day, but it shall be subject to any appli-

Legal Developments

cable overdraft charges if it fails to settle for or
return the item in accordance with paragraph
(a)(3)(i) of this section. The settlement requirements of paragraphs (a)(1) and (a)(2) of this section
do not apply to a paying bank that settles in
accordance with paragraph (a)(3)(i) of this section.
(4)(i) If a paying bank receives a cash item directly or
indirectly from a Reserve Bank on a banking day
that is not a banking day for the Reserve Bank:
(A) The paying bank shall:
(/) Settle for the item so that the proceeds of
the settlement are available to the Reserve
Bank by the close of Fedwire on the Reserve
Bank's next banking day; or
(2) Return the item by midnight of the day it
receives the item.
If the paying bank fails to settle for or return a
cash item in accordance with this paragraph
(a)(4)(i)(A), it shall become accountable for the
amount of the item as of the close of the its
banking day on the day it receives the item.
(B) The paying bank shall:
(7) Settle for the item so that the proceeds of
the settlement are available to the Reserve
Bank by one hour after the scheduled opening of Fedwire on the Reserve Bank's next
banking day or such later time as provided in
the Reserve Bank's operating circular; or
(2) Return the item by midnight of the day it
receives the item.
If the paying bank fails to settle for or return a
cash item in accordance with this paragraph
(a)(4)(i)(B), it shall be subject to any applicable
overdraft charges. Settlement under this paragraph (a)(4)(i)(B) satisfies the settlement requirements of paragraph (a)(4)(i)(A) of this section.
(ii) The settlement requirements of paragraphs
(a)(1) and (a)(2) of this section do not apply to a
paying bank that settles in accordance with paragraph (a)(4)(i) of this section.
(5) Settlement with a Reserve Bank under paragraphs (1) through (4) of this section shall be made
by debit to an account on the Reserve Bank's books,
cash, or other form of settlement to which the
Reserve Bank agrees.
(6) If a cash item is unavailable for return, the paying
bank may send a notice in lieu of return as provided
in section 229.30(f) of this title.

5. Section 210.28 is amended by adding a new paragraph (b)(5) to read as follows:

923

Section 210.28—Agreement of sender.
(b)* * *
(5) If a sender, other than a government sender
described in section 210.25(d) of this part, incurs an
overdraft in its account as a result of a debit to the
account by a Federal Reserve Bank under paragraph
(a) of this section, the account will be subject to any
applicable overdraft charges, regardless of whether
the overdraft has become due and payable. A Federal Reserve Bank may debit a sender's account
under paragraph (a) of this section immediately on
acceptance of the payment order.

FINAL RULE—AMENDMENT TO REGULATION

CC
The Board of Governors is amending 12 C.F.R. Part
229, its Regulation CC (Availability of Funds and
Collection of Checks) to require paying banks to
provide same-day settlement for checks presented by
8:00 a.m. local time at specified locations. The amendments will eliminate presentment fees for these checks
and thereby facilitate their collection. The Board has
adopted these amendments pursuant to its responsibilities under the Expedited Funds Availability Act to
regulate the receipt, payment, collection, or clearing
of checks in order to carry out the provisions of the
Act and to improve the check collection system.
Effective January 3, 1994, 12 C.F.R. Part 229 is
amended as follows:

Part 229—[Amended]
1. The authority citation for part 229 continues to read
as follows:
Authority: 12 U.S.C. 4001 et seq.
2. In the table of contents to part 229, the entry for
section 229.34 is revised to read as follows:

Part 229—Availability of Funds and Collection
of Checks

Subpart C—Collection of Checks

924

Federal Reserve Bulletin • December 1992

Section 229.34—Warranties.

(12 C.F.R. Part 210), or section 229.36(f)(2) of this part
is extended:
$

3. In section 229.1, the last sentence of paragraph
(b)(3) is revised to read as follows:

Section 229.1—Authority and purpose;
organization.

6. In section 229.34, the heading is revised, paragraphs
(c) and (d) are revised and redesignated as paragraphs
(d) and (e), respectively, and a new paragraph (c) is
added to read as follows:

Section 229.34—Warranties.
(b)* * *
(3)* * * These rules cover the direct return of
checks, the manner in which the paying bank and
returning banks must return checks to the depositary bank, notification of nonpayment by the paying
bank, indorsement and presentment of checks,
same-day settlement for certain checks, the liability
of banks for failure to comply with subpart C of this
part, and other matters.
4. In section 229.2, paragraph (mm) is redesignated as
paragraph (pp) and new paragraphs (mm), (nn), and
(oo) are added to read as follows:

Section 229.2—Definitions.
(mm) Fedwire has the same meaning as that set forth in
section 210.26(e) of this chapter,
(nn) Good faith means honesty in fact and the observance of reasonable commercial standards of fair
dealing.
(oo) Interest compensation means an amount of
money calculated at the average of the Federal Funds
rates published by the Federal Reserve Bank of New
York for each of the days for which interest compensation is payable, divided by 360. The Federal Funds
rate for any day on which a published rate is not
available is the same as the published rate for the last
preceding day for which there is a published rate.

5. In section 229.30, paragraph (c) introductory text is
revised to read as follows:

Section 229.30—Paying bank's responsibility
for return of checks.
(c) Extension of deadline. The deadline for return or
notice of nonpayment under the U.C.C., Regulation J

(c) Warranty of settlement amount, encoding, and
offset. (1) Each bank that presents one or more checks
to a paying bank and in return receives a settlement
or other consideration warrants to the paying bank
that the total amount of the checks presented is
equal to the total amount of the settlement demanded by the presenting bank from the paying
bank.
(2) Each bank that transfers one or more checks or
returned checks to a collecting, returning, or depositary bank and in return receives a settlement or
other consideration warrants to the transferee bank
that the accompanying information, if any, accurately indicates the total amount of the checks or
returned checks transferred.
(3) Each bank that presents or transfers a check or
returned check warrants to any bank that subsequently handles it that, at the time of presentment or
transfer, the information encoded after issue in
magnetic ink on the check or returned check is
correct.
(4) A paying bank may set off the amount by which
the settlement paid to a presenting bank exceeds the
total amount of the checks presented against subsequent settlements for checks presented by that
presenting bank.
(d) Damages. Damages for breach of these warranties
shall not exceed the consideration received by the
bank that presents or transfers a check or returned
check, plus interest compensation and expenses related to the check or returned check, if any.
(e) Tender of defense. If a bank is sued for breach of a
warranty under this section, it may give a prior bank in
the collection or return chain written notice of the
litigation, and the bank notified may then give similar
notice to any other prior bank. If the notice states that
the bank notified may come in and defend and that
failure to do so will bind the bank notified in an action
later brought by the bank giving the notice as to any
determination of fact common to the two litigations,
the bank notified is so bound unless after seasonable

Legal Developments

receipt of the notice the bank notified does come in
and defend.
7. In section 229.36, a new paragraph (f) is added to
read as follows:

Section 229.36—Presentment and issuance of
checks.
(f) Same-day settlement. (1) A check is considered
presented, and a paying bank must settle for or
return the check pursuant to paragraph (f)(2) of this
section, if a presenting bank delivers the check in
accordance with reasonable delivery requirements
established by the paying bank and demands payment under this paragraph —
(i) At a location designated by the paying bank for
receipt of checks under this paragraph that is in
the check processing region consistent with the
routing number encoded in magnetic ink on the
check and at which the paying bank would be
considered to have received the check under
paragraph (b) of this section or, if no location is
designated, at any location described in paragraph
(b) of this section; and
(ii) By 8:00 a.m. on a business day (local time of
the location described in paragraph (f)(l)(i) of this
section).
A paying bank may require that checks presented
for settlement pursuant to this paragraph (f)(1) be
separated from other forward-collection checks or
returned checks.
(2) If presentment of a check meets the requirements
of paragraph (f)(1) of this section, the paying bank is
accountable to the presenting bank for the amount
of the check unless, by the close of Fedwire on the
business day it receives the check, it either:
(i) Settles with the presenting bank for the amount
of the check by credit to an account at a Federal
Reserve Bank designated by the presenting bank;
or
(ii) Returns the check.
(3) Notwithstanding paragraph (f)(2) of this section,
if a paying bank closes on a business day and
receives presentment of a check on that day in
accordance with paragraph (f)(1) of this section, the
paying bank is accountable to the presenting bank
for the amount of the check unless, by the close of
Fedwire on its next banking day, it either:
(i) Settles with the presenting bank for the amount
of the check by credit to an account at a Federal
Reserve Bank designated by the presenting bank;
or
(ii) Returns the check.

925

If the closing is voluntary, unless the paying bank
settles for or returns the check in accordance with
paragraph (f)(2) of this section, it shall pay interest
compensation to the presenting bank for each day
after the business day on which the check was
presented until the paying bank settles for the
check, including the day of settlement.
8. In section 229.39, paragraph (d) is redesignated as
paragraph (e), and a new paragraph (d) is added to read
as follows:

Section 229.39—Insolvency of bank.
(d) Preference against presenting bank. If a paying
bank settles with a presenting bank for one or more
checks, and if the presenting bank breaches a warranty
specified in section 229.34(c)(1) or (3) of this part with
respect to those checks and suspends payments before
satisfying the paying bank's warranty claim, the paying bank has a preferred claim against the presenting
bank for the amount of the warranty claim.

APPENDIX E TO PART

229—[AMENDED]

9. The Commentary to section 229.2 is amended by
adding and reserving a new paragraph (mm) and
adding new paragraphs (nn) and (oo) to read as follows:

Section 229.2—Definitions,
(mm) [Reserved]
(nn) Good faith. This definition of good faith derives
from U.C.C. section 3-103(a)(4).
(oo) Interest compensation. This calculation of interest
compensation derives from U.C.C. section 4A-506(b).
(See sections 229.34(d) and 229.36(f).)
10. The Commentary to section 229.30(c) is amended
by revising the introductory text, the first two sentences in numbered paragraph (1), the second sentence
in numbered paragraph (2), the first sentence of the
paragraph immediately following numbered paragraph
(2), and the last two paragraphs to read as follows:

Section 229.30—Paying Bank's Responsibility
for Return of Checks.

926

Federal Reserve Bulletin • December 1992

(c) Extension of deadline. This paragraph permits extension of the deadlines for returning a check for which
the paying bank has previously settled (generally midnight of the banking day following the banking day on
which the check is received by the paying bank) and for
returning a check without settling for it (generally
midnight of the banking day on which the check is
received by the paying bank, or such other time provided by section 210.9 of Regulation J (12 C.F.R. Part
210) or section 229.36(f)(2) of this part), but not of the
duty of expeditious return, in two circumstances:
1. A paying bank may have a courier that
leaves after midnight (or after any other applicable deadline) to deliver its forwardcollection checks. This paragraph removes the
constraint of the deadline for returned checks
if the returned check reaches either the depositary bank or the returning bank to which it is
sent on that bank's banking day following the
expiration of the applicable deadline. * * *
2. * * * In such a case, the U.C.C. deadline
for returning checks received and settled for
on Friday, or for returning checks received
on Saturday without settling for them, might
require the bank to return the checks by
midnight Saturday. * * *
The time limits that are extended in each case are the
paying bank's midnight deadline for returning a check
for which it has already settled and the paying bank's
deadline for returning a check without settling for it in
U.C.C. sections 4-301 and 4-302, sections 210.9 and
210.12 of Regulation J (12 C.F.R. 210.9 and 210.12),
and section 229.36(f)(2) of this part. * * *
The paying bank satisfies its midnight or other return
deadline by dispatching returned checks to another
bank by courier, including a courier under contract with
the paying bank, prior to expiration of the deadline.
This paragraph directly affects U.C.C. sections
4-301 and 4-302 and sections 210.9 and 210.12 of
Regulation J (12 C.F.R. 210.9 and 210.12) to the extent
that this paragraph applies by its terms, and may affect
other provisions.
11. The Commentary to section 229.34 is amended by
revising the heading, revising and redesignating paragraphs (c) and (d) as paragraphs (d) and (e), respectively, and adding a new paragraph (c) to read as
follows:

Section 229.34—Warranties.
(c) Warranty of settlement amount, encoding, and
offset. Paragraph (c)(1) provides that a bank that

presents and receives settlement for checks warrants
to the paying bank that the settlement it demands
(e.g., as noted on the cash letter) equals the total
amount of the checks it presents. This paragraph gives
the paying bank a warranty claim against the presenting bank for the amount of any excess settlement made
on the basis of the amount demanded, plus expenses.
If the amount demanded is understated, a paying bank
discharges its settlement obligation under U.C.C. section 4-301 by paying the amount demanded, but
remains liable for the amount by which the demand is
understated; the presenting bank is nevertheless liable
for expenses in resolving the adjustment.
When checks or returned checks are transferred to a
collecting, returning, or depositary bank, the transferor bank is not required to demand settlement, as is
required upon presentment to the paying bank. However, often the checks or returned checks will be
accompanied by information (such as a cash letter
listing) that will indicate the total of the checks or
returned checks. Paragraph (c)(2) provides that if the
transferor bank includes information indicating the
total amount of checks or returned checks transferred,
it warrants that the information is correct (i.e., equals
the actual total of the items).
Paragraph (c)(3) provides that a bank that presents
or transfers a check or returned check warrants the
accuracy of the magnetic ink encoding that was placed
on the item after issue, and that exists at the time of
presentment or transfer, to any bank that subsequently
handles the check or returned check. Under U.C.C.
section 4-209(a), only the encoder (or the encoder and
the depositary bank, if the encoder is a customer of the
depositary bank) warrants the encoding accuracy, thus
any claims on the warranty must be directed to the
encoder. Paragraph (c)(3) expands on the U.C.C. by
providing that all banks that transfer or present a
check or returned check make the encoding warranty.
In addition, under the U.C.C., the encoder makes the
warranty to subsequent collecting banks and the paying bank, while paragraph (c)(3) provides that the
warranty is made to banks in the return chain as well.
A paying bank that settles for an overstated cash
letter because of a misencoded check may make a
warranty claim against the presenting bank under
paragraph (c)(1) (which would require the paying bank
to show that the check was part of the overstated cash
letter) or an encoding warranty claim under paragraph
(c)(3) against the presenting bank or any preceding
bank that handled the misencoded check.
Paragraph (c)(4) provides that the paying bank may
set off any excess settlement made against settlement
owed to the presenting bank for checks presented
subsequently.
(d) Damages. This paragraph adopts for the warranties

Legal Developments

in section 229.34(a), (b), and (c) the damages provided
in U.C.C. section 4-207(c) and 4A-506(b). (See definition of "interest compensation" in section 229.2(oo).)
(e) Tender of defense. This paragraph adopts for this
regulation the vouching-in provisions of U.C.C. section 3-119.
12. The Commentary to section 229.36 is amended by
adding a new paragraph (f) to read as follows:

Section 229.36—Presentment and Issuance of
Checks.
(f) Same-day settlement. This paragraph provides that,
under certain conditions, a paying bank must settle
with a presenting bank for a check on the same day the
check is presented in order to avail itself of the ability
to return the check on its next banking day under
sections 4-301 and 4-302 of the U.C.C. This paragraph does not apply to checks presented for immediate payment over the counter. Settling for a check
under this paragraph does not constitute final payment
of the check under the U.C.C. This paragraph does not
supersede or limit the rules governing collection and
return of checks through Federal Reserve Banks that
are contained in subpart A of Regulation J (12 C.F.R.
part 210).
(1) Presentment requirements—Location and time.
For presented checks to qualify for mandatory
same-day settlement, information accompanying the
checks must indicate that presentment is being made
under this paragraph—e.g. "these checks are being
presented for same-day settlement"—and must include a demand for payment of the total amount of
the checks together with appropriate payment instructions in order to enable the paying bank to
discharge its settlement responsibilities under this
paragraph. In addition, the check or checks must be
presented at a location designated by the paying
bank for receipt of checks for same-day settlement
by 8:00 a.m. local time of that location. The designated presentment location must be a location at
which the paying bank would be considered to have
received a check under section 229.36(b). The paying bank may not designate a location solely for
presentment of checks subject to settlement under
this paragraph; by designating a location for the
purposes of section 229.36(f), the paying bank
agrees to accept checks at that location for the
purposes of section 229.36(b).
The designated presentment location also must be
within the check processing region consistent with the
nine-digit routing number encoded in magnetic ink on
the check. A paying bank that uses more than one

927

routing number associated with a single check processing region may designate, for purposes of this
paragraph, one or more locations in that check processing region at which checks will be accepted, but
the paying bank must accept any checks with a routing
number associated with that check processing region
at each designated location. A paying bank may designate a presentment location for travelers checks with
an 8000-series routing number anywhere in the country because these travelers checks are not associated
with any check processing region. The paying bank,
however, must accept at that presentment location any
other checks for which it is paying bank that have a
routing number consistent with the check processing
region of that location.
If the paying bank does not designate a presentment
location, it must accept presentment for same-day
settlement at any location identified in section
229.36(b), i.e., at an address of the bank associated
with the routing number on the check, at any branch or
head office if the bank is identified on the check by
name without address, or at a branch, head office, or
other location consistent with the name and address of
the bank on the check if the bank is identified on the
check by name and address. A paying bank and a
presenting bank may agree that checks will be accepted for same-day settlement at an alternative location (e.g., at an intercept processor located in a
different check processing region) or that the cut-off
time for same-day settlement be earlier or later than
8:00 a.m. local time.
In the case of a check payable through a bank but
payable by another bank, this paragraph does not
authorize direct presentment to the bank by which the
check is payable. The requirements of same-day settlement under this paragraph would apply to a payable-through or payable-at bank to which the check is
sent for payment or collection.
Reasonable delivery requirements. A check is considered presented when it is delivered to and payment
is demanded at a location specified in paragraph (f)(1).
Ordinarily, a presenting bank will find it necessary to
contact the paying bank to determine the appropriate
presentment location and any delivery instructions.
Further, because presentment might not take place
during the paying bank's banking day, a paying bank
may establish reasonable delivery requirements to
safeguard the checks presented, such as use of a night
depository. If a presenting bank fails to follow reasonable delivery requirements established by the paying
bank, it runs the risk that it will not have presented the
checks. However, if no reasonable delivery requirements are established or if the paying bank does not
make provisions for accepting delivery of checks
during its non-business hours, leaving the checks at

928

Federal Reserve Bulletin • December 1992

the presentment location constitutes effective presentment.
Sorting of checks. A paying bank may require that
checks presented to it for same-day settlement be
sorted separately from other forward-collection
checks it receives as a collecting bank or returned
checks it receives as a returning or depositary bank.
For example, if a bank provides correspondent check
collection services and receives unsorted checks from
a respondent bank that include checks for which it is
the paying bank and that would otherwise meet the
requirements for same-day settlement under this section, the collecting bank need not make settlement in
accordance with paragraph (f)(2). If the collecting
bank receives sorted checks from its respondent bank,
consisting only of checks for which the collecting bank
is the paying bank and which meet the requirements
for same-day settlement under this paragraph, the
collecting bank may not charge a fee for handling those
checks and must make settlement in accordance with
this paragraph.
(2) Settlement—If a bank presents a check in accordance with the time and location requirements for
presentment under paragraph (f)(1), the paying bank
must either settle for the check on the business day
it receives the check without charging a presentment
fee or return the check prior to the time for settlement. (This return deadline is subject to extension
under section 229.30(c).) The settlement must be in
the form of a credit to an account designated by the
presenting bank at a Federal Reserve Bank (e.g., a
Fedwire transfer). The presenting bank may agree
with the paying bank to accept settlement in another
form (e.g., credit to an account of the presenting
bank at the paying bank or debit to an account of the
paying bank at the presenting bank). The settlement
must occur by the close of Fedwire on the business
day the check is received by the paying bank. Under
the provisions of section 229.34(c), a settlement
owed to a presenting bank may be set off by adjustments for previous settlements with the presenting
bank. (See also section 229.39(d).)
Checks that are presented after the 8:00 a.m. (local
time) presentment deadline for same-day settlement
and before the paying bank's cut-off hour are treated as
if they were presented under other applicable law and
settled for or returned accordingly. However, for purposes of settlement only, the presenting bank may
require the paying bank to treat such checks as presented for same-day settlement on the next business
day in lieu of accepting settlement by cash or other
means on the business day the checks are presented to
the paying bank. Checks presented after the paying
bank's cut-off hour or on non-business days, but otherwise in accordance with this paragraph, are considered

presented for same-day settlement on the next business
day.
(3) Closed paying bank—There may be certain business days that are not banking days for the paying
bank. Some paying banks may continue to settle for
checks presented on these days (e.g., by opening
their back office operations or by using an intercept
processor). In other cases, a paying bank may be
unable to settle for checks presented on a day it is
closed. If the paying bank closes on a business day
and checks are presented to the paying bank in
accordance with paragraph (f)(1), the paying bank is
accountable for the checks unless it settles for or
returns the checks by the close of Fedwire on its next
banking day. In addition, checks presented on a
business day on which the paying bank is closed are
considered received on the paying bank's next banking day for purposes of the U.C.C. midnight deadline
(U.C.C. 4-301 and 4-302) and this regulation's expeditious return and notice of nonpayment provisions.
If the paying bank is closed on a business day
voluntarily, the paying bank must pay interest compensation, as defined in section 229.2(oo), to the
presenting bank for the value of the float associated
with the check from the day of the voluntary closing
until the day of settlement. Interest compensation is
not required in the case of an involuntary closing on a
business day, such as a closing required by state law.
In addition, if the paying bank is closed on a business
day due to emergency conditions, settlement delays
and interest compensation may be excused under
section 229.38(e) or U.C.C. section 4-109(b).
Good faith—Under section 229.38(a), both presenting banks and paying banks are held to a standard of
good faith, defined in section 229.2(nn) to mean honesty in fact and the observance of reasonable commercial standards of fair dealing. For example, designating
a presentment location or changing presentment locations for the primary purpose of discouraging banks
from presenting checks for same-day settlement might
not be considered good faith on the part of the paying
bank. Similarly, presenting a large volume of checks
without prior notice could be viewed as not meeting
reasonable commercial standards of fair dealing and
therefore may not constitute presentment in good
faith. In addition, if banks, in the general course of
business, regularly agree to certain practices related to
same-day settlement, it might not be considered consistent with reasonable commercial standards of fair
dealing, and therefore might not be considered good
faith, for a bank to refuse to agree to those practices if
agreeing would not cause it harm.
U.C.C. sections affected—This paragraph directly
affects the following provisions of the U.C.C. and may
affect other sections or provisions:

Legal Developments

1. Section 4-204(b)(l), in that a presenting
bank may not send a check for same-day
settlement directly to the paying bank, if the
paying bank designates a different location in
accordance with paragraph (f)(1).
2. Section 4-213(a), in that the medium of
settlement for checks presented under this
paragraph is limited to a credit to an account
at a Federal Reserve Bank and that, for
checks presented after the deadline for sameday settlement and before the paying bank's
cut-off hour, the presenting bank may require
settlement on the next business day in accordance with this paragraph rather than accept
settlement on the business day of presentment by cash.
3. Section 4-301(a), in that, to preserve the
ability to exercise deferred posting, the time
limit specified in that section for settlement or
return by a paying bank on the banking day a
check is received is superseded by the requirement to settle for checks presented under this paragraph by the close of Fed wire.
4. Section 4-302(a), in that, to avoid accountability, the time limit specified in that section
for settlement or return by a paying bank on
the banking day a check is received is superseded by the requirement to settle for checks
presented under this paragraph by the close
of Fed wire.

929

Section 229.38—Liability.
(a) Standard of care; liability; measure of damages.
* * * The standard of care is similar to the standard
imposed by U.C.C. sections 1-203 and 4-103(a) and
includes a duty to act in good faith, as defined in
section 229.2(nn) of this regulation.

15. The Commentary to section 229.39 is amended by
redesignating paragraph (d) as paragraph (e) and adding a new paragraph (d) as follows:

Section 229.39—Insolvency of Bank.

(d) Preference against presenting bank. This paragraph gives a paying bank a preferred claim against a
closed presenting bank in the event that the presenting
bank breaches an amount or encoding warranty as
provided in section 229.34(c)(1) or (3) and does not
reimburse the paying bank for adjustments for a settlement made by the paying bank in excess of the value
of the checks presented. This preference is intended to
have the effect of a perfected security interest and is
intended to put the paying bank in the position of a
secured creditor for purposes of the receivership provisions of the Federal Deposit Insurance Act and
similar provisions of state law.

13. The Commentary to section 229.37 is amended by
adding two new paragraphs after lettered paragraph (f)
as follows:
ORDERS ISSUED UNDER BANK HOLDING
COMPANY ACT
Section 229.37—Variations by Agreement.

Orders Issued Under Section 3 of the Bank
Holding Company Act
g. A presenting bank may agree with a paying bank to
present checks for same-day settlement at a location
that is not in the check processing region consistent
with the routing number on the checks. (See section
229.36(f)( 1 )(i).)
h. A presenting bank may agree with a paying bank to
present checks for same-day settlement by a deadline
earlier or later than 8:00 a.m. (See section
229.36(f)(l)(ii).)

14. The Commentary to section 229.38 is amended by
revising the last sentence of the first paragraph of
paragraph (a) as follows:

A M C O R E Financial, Inc.
Rockford, Illinois
Order Approving Acquisition of a Bank Holding
Company
AMCORE Financial, Inc., Rockford, Illinois ("AMCORE"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied under section 3(a)(3) of the BHC Act
(12 U.S.C. § 1842(a)(3)) to acquire by merger Dixon
Bancorp, Inc. ("Dixon"), and thereby indirectly to

930

Federal Reserve Bulletin • December 1992

acquire its subsidiary bank, Dixon National Bank
("Bank"), both of Dixon, Illinois.1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (57 Federal Register 20,686 (1992)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
AMCORE, with total consolidated assets of $1.31
billion,2 controls six subsidiary banks, all located in
Illinois. AMCORE is the thirteenth largest commercial
banking organization in that state, controlling deposits
of $1.1 billion, representing less than 1 percent of total
deposits in commercial banks in Illinois. Dixon, with
one subsidiary bank, controls deposits of $210 million,
representing less than 1 percent of total deposits in
commercial banks in that state. Upon consummation
of the proposal, AMCORE would be the tenth largest
commercial banking organization in that state.
The banking subsidiaries of AMCORE and Dixon do
not compete in any of the same banking markets.
Accordingly, the Board has concluded that this proposal would not have a significantly adverse effect on
competition in any relevant banking market.
Convenience and Needs

Considerations

In considering an application under section 3 of the
BHC Act, the Board must consider the convenience
and needs of the communities to be served and take
into account the records of the relevant depository
institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial supervisory agencies to
encourage financial institutions to help meet the credit
needs of the local communities in which they operate
consistent with the safe and sound operation of such
institutions. To accomplish this end, the CRA requires
the appropriate federal supervisory authority to "assess the institution's record of meeting the credit
needs of its entire community, including low- and
moderate-income neighborhoods, consistent with the
safe and sound operation of such institution", and to
take that record into account in its evaluation of bank
holding company applications.3
In connection with this application, the Board has
received comments from two organizations ("Protes-

1. Under the terms of the merger agreement between AMCORE and
Dixon, AMCORE will form a shell subsidiary corporation to merge
directly with Dixon, with Dixon to be the surviving corporate entity.
AMCORE may liquidate Dixon at a later date, and hold Bank directly.
2. Assets and deposit data are as of March 31, 1992.
3. 12 U.S.C. § 2903.

tants") alleging that AMCORE's subsidiary bank,
AMCORE Bank N.A., Rockford, Rockford, Illinois
("Rockford Bank"), has failed to meet the commercial
credit needs of low-income and minority developers in
southwest Rockford. The Board has carefully reviewed the CRA performance records of AMCORE,
Dixon and their subsidiary banks, as well as all comments received, and the responses to those comments,
and all of the other relevant facts of record, in light of
the CRA, the Board's regulations, and the Statement
of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency
CRA Statement").4

Record of Performance Under the CRA
A. CRA Performance Examinations
The federal banking agencies have indicated in the
Agency CRA Statement that a CRA examination is an
important, and often controlling, factor in the consideration of an institution's CRA record.5 In this case,
the Board notes that all of AMCORE's subsidiary
banks have received "outstanding" or "satisfactory"
ratings from their primary supervisors during the most
recent examination of each institution's CRA performance. In particular, AMCORE's lead subsidiary
bank, Rockford Bank, received a "satisfactory" rating
for CRA performance from the OCC as of October 10,
1991.6 Bank received an "outstanding" rating for CRA
performance in its most recent examination.7

B. Business Lending in Low- and
Moderate-Income Areas
Rockford Bank provides business and development
loans in low- and moderate-income and minority areas
to assist in meeting commercial credit needs. For
example, for the period 1990-91, Rockford Bank made
285 small business loans totalling $32.2 million within

4. 54 Federal Register 13,742 (1989).
5. Id.
6. The OCC's examination revealed technical violations of the
Consumer Credit Protection Act and certain problems in collecting
data under the Home Mortgage Disclosure Act. The OCC has noted
that Rockford Bank has taken satisfactory steps to correct these
deficiencies. AMCORE's other subsidiary banks have been most
recently rated for CRA performance as follows: AMCORE Bank,
N.A., Sterling, Sterling Illinois, received an "outstanding" performance rating from the OCC on March 31, 1991; AMCORE Bank,
N.A., Woodstock, Woodstock, Illinois, received an "outstanding"
performance rating from the OCC on June 18, 1990; AMCORE Bank,
N.A., Pekin, Pekin, Illinois, received a "satisfactory" performance
rating from the OCC on April 25, 1990; and AMCORE Bank, Ogle
County, Mount Morris, Illinois, received a "satisfactory" rating from
the FDIC on August 11, 1989.
7. Bank was examined by the OCC in June 1989.

Legal Developments

12 of the 15 low- and moderate-income or integrated
and minority census tracts in the City of Rockford.8 As
of September 15, 1992, Rockford Bank had commercial loans in the original amount of $55 million outstanding to businesses located in integrated and minority census tracts in the City of Rockford, and
commercial loans in the original amount of $240.1
million outstanding to businesses located in lowincome census tracts in that city. In addition, the bank
participates in the State of Illinois Economically Targeted Investment Program, a linked deposit program
that promotes economic development for small and
emerging businesses and the creation of affordable
housing through special interest-rate financing.9 Rockford Bank also co-sponsors and participates in the
presentation of programs designed to provide practical
guidance in financial management for small businesses.
In addition to small business commercial lending,
Rockford Bank makes loans to low-income, first-time
home buyers for the acquisition or rehabilitation of
properties in the City of Rockford through a number of
public and private programs. These programs include:
(1) Tri-Way Housing Partnership (low-interest home
rehabilitation loans to low-income homeowners);
(2) City of Rockford Homestead Partnership (lowinterest mortgage loans to low-income, first-time
homebuyers of newly acquired and rehabilitated
homes);
(3) UDAG (Urban Development Action Grant)
Housing Partnership Program (home rehabilitation
loans for borrowers meeting annual income limitations);
(4) West Side Alive Participation Certificate Purchase Program (new housing for low-income individuals); and
(5) Illinois Homestart Mortgage Partnership (linked
deposit program offering low-interest mortgage
loans, credit counseling, and flexible underwriting
criteria for low- and moderate-income homebuyers).

8. The average loan amount was approximately $113,000.
9. Protestants allege that Rockford Bank failed to provide conventional financing, in connection with this program, for the development
of a supermarket and pharmacy to be located in a low-income area of
southwest Rockford. In response to Protestants' allegations, Rockford Bank has submitted its credit analysis of this project. The Board
also notes that Rockford Bank has participated in the Economically
Targeted Investment Program, formerly the Linked Deposit Program,
to fund other projects, in the aggregate amount of $1.1 million. These
projects included the rehabilitation of apartment units for low-income
tenants, refinancing an emergency shelter for adolescent women who
are pregnant or have children, and upgrading a tire rubber recycling
facility. In light of all of the facts of record, the Board does not believe
that the decision of the Rockford Bank to refrain from participating in
funding the supermarket and pharmacy project identified by Protestants indicates that the Rockford Bank has failed to help meet the
credit needs of its community.

931

As of August 1, 1992, Rockford Bank also held municipal housing bonds in the face amount of $350,000,
and held fire department bonds in the face amount of
$270,000 to finance projects in southwest Rockford.
Additional Elements of CRA Performance
The Board also has considered other elements of
AMCORE and Rockford Bank's CRA performance.
The record reveals that AMCORE has in place the
types of policies and procedures outlined in the
Agency CRA Policy Statement that contribute to
effective CRA programs. For example, AMCORE has
policies and procedures governing CRA performance
at its subsidiary banks, including Rockford Bank, that
ensure board of director participation and review. In
addition, Rockford Bank ascertains the credit needs of
its community through formal call programs and participation in various community and governmental
organizations. Market efforts for the bank's services
and products include the use of neighborhood newspapers and billboards that target low- and moderateincome consumers. Rockford Bank also engages in
community development and redevelopment activities
through the Rockford Local Development Corporation
(revolving loan funds for higher risk ventures to create
or retain jobs) and the Linked Deposit Program of the
Illinois State Treasurer (use of state deposits to fund
low-interest economic development loans).
The Board has carefully considered the entire
record of the CRA performance of AMCORE, including the comments filed in this case by Protestants, in
reviewing the convenience and needs factors under the
BHC Act. Protestants have raised both specific and
general concerns about the adequacy of the existing
CRA programs of AMCORE. Based on a review of the
entire record of performance by AMCORE, including
the information provided by the Protestants and the
CRA performance examinations by the Rockford
Bank's primary regulator, the Board concludes, with
respect to convenience and needs considerations under the BHC Act, that the efforts of AMCORE and
Dixon to help meet the credit needs of all segments of
the communities served by their subsidiary banks,
including the CRA performance records of the relevant banks, are consistent with approval of this application.10

10. Protestants have requested information regarding attendance at
a public hearing, and the Board has treated these comments as a
request that the Board hold a public hearing or meeting on this
application. However, the Board is not required under section 3 of the
BHC Act to hold a public meeting or hearing unless the primary
supervisor for the bank to be acquired does not approve the proposal.
In this case, the primary supervisor for Bank has not objected to this
proposal.

932

Federal Reserve Bulletin • December 1992

Other Considerations
Considerations relating to the financial and managerial
resources and future prospects of AMCORE, its subsidiary banks, and Bank, and other factors required to
be reviewed by the Board under the BHC Act also are
consistent with approval of this proposal.
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. The Board's approval of this
transaction is specifically conditioned upon compliance with the commitments made by AMCORE in
connection with this application. For purposes of this
action, all these commitments are conditions imposed
in writing by the Board and, as such, may be enforced
in proceedings under applicable laws. The transaction
approved in this Order shall not be consummated
before the thirtieth calendar day following the effective
date of this Order, or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Chicago, pursuant to delegated authority.
By order of the Board of Governors, effective
October 26, 1992.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, Lindsey, and Phillips. Absent and
not voting: Governor LaWare.
JENNIFER J. JOHNSON

Associate Secretary of the Board

Banc One Corporation
Columbus, Ohio
Banc One Texas Corporation
Columbus, Ohio
Order Approving the Merger of Bank Holding
Companies
Banc One Corporation, and its wholly owned subsidiary, Banc One Texas Corporation, both of Columbus,
Ohio (together, "Banc One") and bank holding com-

Under its rules, the Board may, in its discretion, hold a public
hearing or meeting on an application to clarify factual issues related to
the application and to provide an opportunity for testimony, if
appropriate. 12 U.S.C. §§ 262.3(e) and 262.25(d). In the Board's
view, all interested parties have had ample opportunity to present
written submissions, and have submitted substantial written comments. In light of these submissions and all the facts of record, the
Board has determined that a public meeting or hearing is not necessary
to clarify the factual record in these applications, or is otherwise
warranted in this case. Accordingly, the request by Protestants for a
public meeting or hearing on this application is hereby denied.

panies within the meaning of the Bank Holding Company Act ("BHC Act"), have applied for the Board's
approval under section 3 of the BHC Act
(12 U.S.C. § 1842) to acquire Team Bancshares, Inc.,
Dallas, Texas ("Team Bancshares"), and its wholly
owned subsidiary, Team Bancshares II, Inc., Wilmington, Delaware ("Team II") (together, "Team"),
and thereby indirectly acquire Team's subsidiary
bank, Team Bank, Fort Worth, Texas. 1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (57 Federal Register 32,219 (1992)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act.
Banc One, with total deposits of $43.9 billion, controls banking subsidiaries in Ohio, Indiana, Michigan,
Wisconsin, Illinois, Texas, and Kentucky.2 Banc One
operates one subsidiary bank in Texas, Bank One
Texas, N.A., Dallas, Texas ("BOT"). BOT is the
third largest commercial banking organization in
Texas, controlling $13.6 billion in deposits, representing 8.1 percent of total deposits in commercial banks in
Texas. Team Bank is the fifth largest commercial
banking organization in Texas, controlling $5.4 billion
in deposits, representing 3.2 percent of total deposits
in commercial banks in the state. Upon consummation
of this proposal, Banc One would become the second
largest commercial banking organization in the state,
controlling $19 billion in deposits, representing 11.3
percent of total deposits in commercial banking organizations in Texas.
Competitive, Financial, Managerial and Supervisory
Considerations
Banc One and Team compete in eight Texas banking
markets.3 The Board has considered the competitive
effects of the proposal on depository institutions in
each of these markets.4 Upon consummation, all banking markets would remain moderately concentrated or
unconcentrated as measured by the Herfindahl1. Banc One will acquire Team Bancshares through the merger of
Team Bancshares and Team II into Banc One Texas Corporation.
Banc One Texas Corporation will continue as a second-tier subsidiary
of Banc One Corporation.
2. State data are as of December 31, 1991; market data are as of
June 30, 1990.
3. These markets are: Austin, Dallas, Fort Worth, Houston,
Longview, Sherman-Denison, Williamson, and Wichita Falls.
4. In this context, depository institutions include commercial banks,
savings banks, and savings associations. The Board previously has
indicated that thrift institutions have become, or have the potential to
become, major competitors of commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City
Corporation, 70 Federal Reserve Bulletin 743 (1984).

Legal Developments

Hirschman Index ("HHI"). 5 After considering the
competition offered by other depository institutions in
the market, the number of competitors remaining in
the market, the increase in concentration, and the
other facts of record, the Board has concluded that
consummation of the proposal would not result in a
significantly adverse effect on competition in these or
any other relevant banking markets.6
The financial and managerial resources, and future
prospects of Banc One, Team, and their respective
subsidiaries, and the other supervisory factors the
Board must consider under section 3 of the BHC Act,
are consistent with approval of this proposal.
Convenience and Needs

Considerations

In considering the convenience and needs of the
communities to be served by these institutions under
section 3 of the BHC Act, the Board has taken into
account the record of the subsidiary banks of BOT and
Team under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial supervisory agencies to
encourage financial institutions to help meet the credit
needs of the local communities in which they operate
consistent with the safe and sound operation of such
institutions. To accomplish this end, the CRA requires
the appropriate federal supervisory authority to "assess the institution's record of meeting the credit
needs of its entire community, including low- and

5. Under the revised Department of Justice Merger Guidelines,
49 Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is above 1800 is considered to be highly concentrated. The Justice Department has informed the Board that a bank
merger or acquisition generally will not be challenged (in the absence
of other factors indicating anticompetitive effects) unless the postmerger HHI is at least 1800 and the merger increases the HHI by more
than 200 points. The Justice Department has stated that the higher
than normal HHI thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limitedpurpose lenders and other non-depository financial entities.
6. Consummation of the proposal would result in the following
post-merger shares of market deposits (market share data are based on
calculations in which the deposits of thrifts are included at 50 percent)
and changes in the HHI:
(1) Austin market—18.8 percent with an increase of 173 points to
12% points;
(2) Dallas market—19.2 percent with an increase of 118 points to
1106 points;
(3) Fort Worth market—22.8 percent with an increase of 260 points
to 953 points;
(4) Houston market—11.5 percent with an increase of 27 points to
816 points;
(5) Longview market—21.0 percent with an increase of 167 points to
1106 points;
(6) Sherman-Denison market—23.2 percent with an increase of 251
points to 1107 points;
(7) Williamson market—3.5 percent with an increase of 6 points to
777; and
(8) Wichita Falls market—28.5 percent with an increase of 356
points to 1425 points.

933

moderate-income neighborhoods, consistent with the
safe and sound operation of such institution," and to
take this record into account in its evaluation of bank
holding company applications.7
In connection with this application, the Board has
received comments that support and comments that
oppose the proposal. For example, some commenters
have commended the CRA efforts of Banc One and
Team Bank in the Dallas community, especially in the
area of small and minority-owned businesses in the
Southern Dallas community. Several commenters also
support Banc One's current CRA activities and believe that Banc One is building an effective relationship with low- and moderate-income neighborhoods.8
Other commenters ("Protestants") have criticized
the CRA record of performance of Banc One and
Team Bank as insufficient in meeting the need for
credit and deposit services in low- and moderateincome and minority neighborhoods.9 Specifically,
Protestants allege that BOT has an inadequate record
in the following areas:
(1) Lending under government-insured programs
such as the FHA, VA and SBA;
(2) Locating branches in low- and moderate-income
neighborhoods; and
(3) Delineating its service community narrowly
enough to permit effective credit services to lowand moderate-income neighborhoods.
In addition, Protestants believe that Team Bank's
performance has been inadequate in:
(1) Meeting the credit needs of low- and moderateincome neighborhoods in Dallas County ; and
(2) Ascertaining the need for and publicizing the
availability of mortgage loans.
Protestants also allege, on the basis of data reported
under the Home Mortgage Disclosure
Act
("HMDA"), that subsidiary banks of Banc One and
Team Bank do not make a sufficient number of loans in
predominately minority communities and have a high
rate of denying loan applications from minority borrowers.10

7. 12 U.S.C. § 2903.
8. The Southern Dallas Development Corporation, The Minority
Opportunity News ("TMON"), and the Malcolm X Community
Council ("MXCC") commented favorably upon BOT's CRA record.
9. Rainbow Bridge, Inc. has filed comments relating to Banc One
and Team Bank. Comments received from TMON and MXCC raise
issues related to Team Bank.
10. Protestants also suggest that BOT's staff and management
should reflect the ethnic diversity of its local community. While the
Board fully supports affirmative programs designed to promote equal
opportunity in every aspect of a bank's personnel policies and
practices in the employment, development, advancement, and treatment of employees and applicants for employment, the Board believes

934

Federal Reserve Bulletin • December 1992

The Board has carefully reviewed the CRA performance records of Banc One's subsidiary banks and
Team Bank, as well as Protestants' comments and
Banc One's responses to those comments, in light of
the CRA, the Board's regulations, and the Statement
of the Federal Financial Supervisory Agencies Regarding the Community Reinvestment Act ("Agency
CRA Statement")."

Record of Performance Under the CRA
A. CRA Performance Examinations
The Agency CRA Statement provides that a CRA
examination is an important and often controlling
factor in the consideration of an institution's CRA
record and that these reports will be given great weight
in the applications process. 12 The Board notes that
BOT and Team Bank have received "satisfactory"
ratings at their most recent examinations for CRA
performance.13 In addition, all of the other sixty subsidiary banks of Banc One have received either "satisfactory" or "outstanding" ratings from their primary
supervisors in the most recent examinations of their
CRA performance.

B. Corporate Policies
The Board recently has concluded that Banc One's
corporate CRA policies and procedures contribute to
an effective CRA program,14 and Banc One has committed that these policies and procedures will be
implemented at Team Bank. These policies include
monitoring CRA performance at the holding company
level through quarterly reports from subsidiary banks
that are submitted to Banc One's corporate CRA
Committee.
Banc One also has established holding company
subsidiaries that assist banks in the Banc One system
in their CRA programs. For example, Banc One has a
corporate Community Development Corporation
("CDC") with resources to assist all bank affiliates in
financing projects designed to promote community
welfare, housing availability and economic develop-

that the bank's general personnel practices are beyond the scope of
factors that may be assessed under the CRA.
11. 54 Federal Register 13,732 (1989).
12. 54 Federal Register 13,745 (1989).
13. BOT received a satisfactory rating by the Office of the Comptroller of the Currency, its primary federal supervisor, as of March 31,
1991. Team Bank received a satisfactory rating by the FDIC, its
primary federal supervisor, as of January 25, 1991.
14. Banc One Corporation, 78 Federal Reserve Bulletin 699, 701-02
(1992).

ment.15 Banc One also has a mortgage subsidiary,
Banc One Mortgage Corporation, which assists affiliates by offering specialized mortgage products designed for low- and moderate-income applicants. Banc
One's corporate CRA Research Division assists Banc
One's subsidiary banks in collecting and analyzing
lending data to monitor the distribution of loan products throughout their delineated market areas. BOT's
CRA officer and other officers periodically report to
BOT's board of directors on progress made under the
bank's CRA program in meeting the credit needs of all
its communities, including low- and moderate-income
areas.

C. Ascertainment and Marketing
BOT annually develops a plan that includes specific
programs for identifying banking needs in each of its
markets. Findings made pursuant to the plan are
reviewed at the holding company level on a quarterly
basis. BOT also has undertaken activities to ascertain
the credit needs of its eighteen markets in Texas. 16 For
example, BOT has contacted a broad array of groups
and individuals including community and neighborhood improvement or development organizations,
consumer credit organizations, private businesses, religious leaders, members of various ethnic organizations, and housing and other public officials. In addition, several bank offices have established Community
Advisory Councils to provide a method for assessing
needs on an ongoing basis.
Banc One markets specific banking products by
advertising on television, radio, and in print. In addition, BOT has taken several steps to target its marketing to minority and low- and moderate-income areas of
its community. BOT conducts advertising campaigns
in low-and moderate-income areas by the use of direct
mail, flyers placed on door knobs, and specialized
print. The types of credit advertised in these targeted
campaigns include home-improvement and other
housing loans, and loans related to used car, debt
consolidation, and income tax payments. As part of
these campaigns, Spanish language materials are used
where appropriate.17 BOT also conducts public education seminars in both English and Spanish to instruct
individuals on the home buying process in general and
15. To date, the CDC has provided $18 million in equity for
low-income housing projects utilizing the low-income housing tax
credit.
16. The most recent performance examination by the OCC noted
certain markets, which are not the subject of Protestants' comments,
in which BOT's ascertainment efforts could be improved. The Board
expects BOT to take steps to address these issues.
17. In addition, BOT provides Spanish language instruction for
certain of its customer contact employees, and provides ATM machines with Spanish-language screens.

Legal Developments

on how to apply for credit products. The OCC noted
that BOT's marketing efforts have been responsive to
identified community needs.

D. Lending and Other Activities

935

of Housing and Community Affairs loans, and participates in the GE Capital Community Homebuyers
Program. BOT has its own program in which it offers
Bank One "American Dream" loans. All of these
credit products are offered through BOT's affordable
lender program.
BOT established a small business lending unit at the
end of 1991 that targets low- and moderate-income
census tracts. In 1992, $8.5 million of the $12.3 million
in loans extended by the unit have been in low- and
moderate-income census tracts. Approval rates in
both upper income and low- and moderate-income
tracts are approximately equal. BOT is the largest
contributor to the Southern Dallas Development Fund
and also participates as a substantial lender.20 In
addition, BOT is a certified lender in the Dallas/Ft.
Worth Minority and Women Owned Business Consortium. BOT has also organized a task force to work
with the Association of General Contractors to assist
small contractors to obtain contracts through a "big
brother" program.

BOT has instituted or participates in a range of
programs designed to provide a variety of credit
products to low- and moderate-income borrowers.
BOT employs eight lenders to originate loans under
its affordable lender program. In Dallas, a total of
five employees (two loan officers) are employed to
originate and process mortgage loans in low- and
moderate-income areas of Dallas. In 1991, through
its affordable housing lender program, BOT made 99
mortgage loans, for a total of $4 million, in low- and
moderate-income areas, most of which were in South
Dallas. In 1992, BOT has made 150 loans for a total
of $6.6 million in these same areas. BOT also has
played a leading role in the establishment and funding of the Dallas Affordable Housing Partnership,
which seeks to develop housing opportunities for
low-income residents of Dallas.
BOT has responded to ascertained needs for housing-related lending in local communities with specific
programs. For example, BOT developed a program to
provide loans for closing costs as part of an "urban
homesteading" program in Abilene. In Houston and
several other markets, BOT promoted the availability
of home improvement loans with longer than normal
terms (fifteen years) and lower than normal minimum
income limits in response to a perceived need for those
loans. In San Antonio, BOT worked with the Eastside
Development Council to provide purchase and rehabilitation loans for homes held by HUD and the RTC.
BOT also supports more than a dozen other neighborhood development groups, several of which are located in Dallas.18
In addition, BOT has become recertified within the
last two years to issue VA and FHA loans after these
certifications lapsed under prior owners of its banks.
BOT also offers Fannie Mae/Community Homebuyer
loans. BOT's mortgage company affiliate is now
offering, on a limited basis, the HUD 203(k) purchase-rehabilitation loan program.19 BOT also offers
Texas Veterans Land Board and Texas Department

The OCC's examination noted that BOT is seeking to
expand its network of branch offices. Since January
1990, BOT has acquired branch offices in transactions
involving failed institutions, and this program has
resulted in expansion into previously unserved or
underserved low- and moderate-income areas in Dallas. For example, BOT has opened, through acquisition or de novo, two new offices in Dallas and one in
Houston in low- and moderate-income areas of those
cities. BOT now has a total of six offices in low- and
moderate-income areas of Dallas.
The OCC's examination also concluded that BOT's
service area was generally reasonable and that none of
the community delineations excludes low- and moderate-income neighborhoods. In some areas, however,
examiners noted that BOT's delineated market was
geographically larger than its existing resources could
effectively serve.21 BOT has revised its market delineations in response to its most recent CRA examination by the OCC, and has stated to the OCC that it will
make additional revisions as further acquisitions are
completed.

18. For example, BOT supports Dallas Adopt-A-Block; the Dallas
Center for Nonprofit Management; the Downtown Family Shelter of
Dallas; Inter-Faith Housing of Dallas; Consumer Credit Counseling of
Greater Dallas; the Nonprofit Loan Center of Dallas; and the Oak Cliff
Development Corporation of Dallas.
19. BOT's loan volume under all governmental guaranteed loan
programs has increased as a result of its marketing efforts. The Board
expects BOT to continue its efforts under these programs and will
review its progress in future applications.

20. BOT has loaned $220,000 as participations in four Southern
Dallas Development Corporation ("SDDC")-sponsored projects and
made an $800,000 investment in a multi-bank community development
corporation sponsored by the SDDC that provides debt and equity
financing to small and minority-owned businesses.
21. Examiners also found that BOT made a concerted effort to serve
extensive low- and moderate-income neighborhoods in some market
areas regardless of the locations of its offices.

E. Branch Offices and Service Area

936

Federal Reserve Bulletin • December 1992

F. HMD A Data and Lending Practices
The Board has reviewed the 1990 and 1991 HMDA
data reported by subsidiaries of Banc One and Team,
and comments from the commenters regarding these
data. Data cited by the Protestants indicate some
disparities in rates of housing-related loan applications, and in approvals and denials that vary by racial
or ethnic group in certain areas served by BOT and
Team.
Because all banks are obligated to ensure that their
lending practices are based on criteria that assure not
only safe and sound lending, but also assure equal
access to credit by creditworthy applicants regardless
of race, the Board is concerned when the record of an
institution indicates disparities in lending to minority
applicants. The Board recognizes, however, that
HMDA data alone provide only a limited measure of
any given institution's lending in the communities that
the institution serves. The Board also recognizes that
HMDA data have limitations that make the data an
inadequate basis, absent other information, for conclusively determining whether an institution has engaged in illegal discrimination on the basis of race or
ethnicity in making lending decisions.
The most recent examinations for CRA compliance
and performance conducted by bank supervisory
agencies found no evidence of illegal discrimination at
BOT or Team.22 In the case of BOT, examiners
concluded that the bank affirmatively encourages
credit applications from all segments of the community, including low- and moderate-income neighborhoods, for all types of credit offered. The examination
report of BOT also indicated that in no instance were
low- and moderate-income areas being excluded from
obtaining loans, and that BOT's efforts to increase
lending were reasonable and appropriate.
HMDA data for 1991 show that Team and BOT have
made progress in improving their lending records in
low- and moderate-income neighborhoods, including
the Dallas MSA. In addition, BOT's housing-related
lending in these Dallas neighborhoods has increased
significantly under its affordable housing lender program. This program features flexible underwriting
standards and a review by a regional underwriting
manager of all mortgage applications from minority
22. Examiners noted some violations of anti-discrimination laws
involving procedures and income calculations which had not adversely affected any individual borrowers. The OCC examiners recommended uniform policies, review procedures and forms for all the
BOT branches to address these issues, and BOT management has
committed to undertake sufficient actions to preclude the recurrence
of these violations. The OCC has advised the Board that Banc One is
taking appropriate actions to address recommendations made by the
OCC in BOT's most recent CRA performance examination, and that
these actions support a satisfactory CRA performance record at BOT.

borrowers proposed to be denied. Through August
1992, BOT has exceeded its total 1991 lending to lowand moderate-income areas in Dallas under this program by more than 50 percent. In addition, although
the number of housing-related loans made by Banc
One in the Dallas MSA increased 52 percent from 1990
to 1991, the number of housing-related loans made to
black borrowers in the Dallas MSA increased more
than 70 percent over the same period.

G. Conclusion Regarding Convenience and
Needs Factors
The Board has carefully considered all of the facts of
record, including the comments filed in this case, in
reviewing the convenience and needs factors under the
BHC Act. Based on a review of the entire record of
performance, including information provided by commenters supporting and opposing the proposal and the
performance examinations by the banks' primary regulators, the Board believes that the efforts of Banc
One and Team to help meet the credit needs of all
segments of the communities served by their subsidiary banks, including low- and moderate-income
neighborhoods, are consistent with approval.
The Board recognizes that the record compiled in
this application points to some areas for improvement
in the CRA performance of BOT and Team Bank. The
Board expects Banc One to continue its progress in
addressing the housing-related credit needs of lowand moderate-income and minority neighborhoods in
its service communities, and to implement fully the
CRA initiatives and commitments discussed in this
Order and contained in its application. Banc One's
progress in these areas will be monitored by the
Federal Reserve Bank of Cleveland and in future
applications requiring the Board's review of its CRA
performance record.23

23. Protestants have requested a public hearing or meeting on the
issues raised in their comments, including the role of race and income
in lending in South Dallas. Section 3(b) of the BHC Act does not
require the Board to hold a hearing on an application unless the
appropriate supervisory authority for the bank to be acquired makes a
timely written recommendation of denial of the application. In this
case, the Texas State Banking Commissioner has not recommended
denial of the proposal.
Generally, under the Board's rules, the Board may, in its discretion,
hold a public hearing or meeting on an application to clarify factual
issues related to the application and to provide an opportunity for
testimony, if appropriate. 12 U.S.C. §§ 262.3(e) and 262.25(d). The
Board has carefully considered this request. In the Board's view,
Protestants have had ample opportunity to present written submissions, and Protestants have submitted written comments that have
been considered by the Board. Further, Protestants have not identified facts that are material to the Board's decision and that are in
dispute. Therefore, the Board has determined that a public meeting or
hearing is not necessary to clarify the factual record in this applica-

Legal Developments

Based on the foregoing, including the conditions and
commitments described in this Order and those made
in the application, and all of the facts of record, the
Board has determined that the application should be,
and hereby is, approved. The Board's approval of this
proposal is specifically conditioned on compliance by
Banc One and its subsidiaries with these conditions
and commitments. For the purposes of this action,
commitments and conditions will both be considered
conditions imposed in writing and, as such, may be
enforced in proceedings under applicable law.
The acquisition shall not be consummated before the
thirtieth calendar day 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 by the Federal Reserve Bank
of Cleveland, acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 28, 1992.
Voting for this action: Vice Chairman Mullins and Governors Angell, Kelley, LaWare, Lindsey, and Phillips. Absent
and not voting: Chairman Greenspan.
JENNIFER J. JOHNSON

Associate Secretary of the Board

Carolina First Corporation
Greenville, South Carolina
Order Approving Acquisition of Shares of a Bank
Holding Company
Carolina First Corporation, Greenville, South Carolina ("CFC"), a bank holding company within the
meaning of the Bank Holding Company Act (the
"BHC Act"), has applied for the Board's approval
under
section
3(a)(3)
of
the
BHC
Act
(12 U.S.C. § 1842(a)(3)) to acquire up to 9.8 percent of
the outstanding voting shares of ComSouth Bankshares, Inc., Columbia, South Carolina ("CornSouth").1
Notice of the application, affording interested persons an opportunity to submit comments, has been
published (57 Federal Register 36,649 (1992)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 3(c) of
the BHC Act. CFC is the tenth largest commercial

tion, or otherwise warranted in this case, and the request for a public
meeting or hearing on this application is denied.
1. ComSouth controls two subsidiary banks, Commercial Bank of
the South, N.A., Columbia, South Carolina, and Bank of Charleston,
N.A., Charleston, South Carolina.

937

banking organization in South Carolina, controlling
deposits of $283.6 million, representing approximately
1.5 percent of the total deposits in commercial banking
organizations in the state.2 ComSouth is the 21st
largest commercial banking organization in South
Carolina, controlling deposits of $83.3 million, representing less than one percent of the total deposits in
commercial banking organizations in the state.
The Board has carefully reviewed comments filed by
some members of ComSouth's board of directors
opposing this proposal ("Protestants"). Protestants
assert that the presence of CFC as a significant minority shareholder would increase dissension within the
ComSouth board of directors. Protestants also believe
that such an investment would impair the ability of
ComSouth to obtain a more desirable merger partner
and to raise capital.
The Board previously has approved the acquisition
by a bank holding company of less than a controlling
interest in a bank, noting that "nothing in section 3(c)
of the [BHC] Act requires denial of an application
solely because a bank holding company proposes to
acquire less than a controlling interest in a bank or
bank holding company." 3 CFC has indicated that it
will remain a passive investor in ComSouth following
consummation of this proposal, and CFC has made
commitments of the type relied on by the Board in
previous cases that ensure that CFC will not exercise
a controlling influence over ComSouth.4 These commitments include a commitment not to seek or accept
any representation on the board of directors of ComSouth, and a commitment not to attempt to influence
the management or policies of ComSouth. CFC may
not, therefore, participate in the deliberation or decisionmaking of the ComSouth board of directors. In
addition, CFC may not participate in the evaluation or
acceptance of future merger proposals involving ComSouth other than through the exercise of its voting
rights as a shareholder of ComSouth.
Protestants have not provided any significant support for their contention that this investment will
interfere with the ability of ComSouth to raise capital,
and the Board's experience in evaluating other, simi-

2. All banking data are as of June 30, 1992; state ranking data are as
of December 31, 1991.
3. United Counties Bancorporation, supra; Marine Midland Banks,
Inc., 75 Federal Reserve Bulletin 455 (1989); Midlantic Banks, Inc., 70
Federal Reserve Bulletin 776 (1984). The Board has noted in these
orders that the requirement in section 3(a)(3) of the BHC Act that the
Board's approval be obtained before a bank holding company acquires
more than 5 percent of the voting shares of a bank also suggests that
Congress contemplated the acquisition by bank holding companies of
between 5 and 25 percent of the voting shares of banks.
4. Summit Bancorp, Inc., 77 Federal Reserve Bulletin 952 (1991);
United Counties Bancorporation, 75 Federal Reserve Bulletin 114
(1989). These commitments are set forth in the Appendix.

938

Federal Reserve Bulletin • December 1992

lar, proposals under the BHC Act has not indicated, as
a general matter, any diminished capacity to raise
capital in other cases involving passive minority investors.5 Based on the facts of record and CFC's commitments, the Board has concluded that CFC would not
acquire control or the ability to exercise a controlling
influence over ComSouth upon consummation of this
proposal.6
CFC and ComSouth do not operate bank subsidiaries in the same banking markets. Moreover, CFC has
committed that there will be no officer or director
interlocks between CFC and ComSouth, that the investment by CFC in ComSouth will remain passive,
and that CFC will not act alone or in concert with any
other entity to control ComSouth. On the basis of the
record, the Board concludes that consummation of
this proposal would not have a significantly adverse
effect on competition in any relevant banking market.7
In light of all the facts of record, the Board concludes that the financial and managerial resources and
future prospects of CFC and ComSouth and their
subsidiaries, and other factors the Board must consider under section 3 of the BHC Act, are consistent
with approval of this application. Considerations relating to the convenience and needs of the communities to be served by CFC's and ComSouth's subsidiary
banks also are consistent with approval.
Based on the foregoing, including the conditions and
commitments described in this Order and those made
in the application, and all of the facts of record, the
Board has determined that the application should be,
and hereby is, approved. The Board's approval of this
proposal is specifically conditioned on compliance by
CFC and its subsidiaries with all of the conditions and
commitments referenced in this order or made in the
application as supplemented. The commitments and
conditions relied on in reaching this decision are
conditions imposed in writing by the Board in connection with its findings and decision, and may be enforced in proceedings under applicable law.
The transaction shall not be consummated before
the thirtieth calendar day following the effective date
of this Order, or later than three months after the
5. See Summit Bancorp, Inc., and United Counties Bancorporation,
supra. See also, The Summit Bancorporation, 75 Federal Reserve
Bulletin 712 (1989).
6. The Office of the Comptroller of the Currency, the primary
regulator of the subsidiary banks of ComSouth, has informed the
Board that it has no objection to approval of this proposal.
7. The Board has previously noted that noncontrolling interests in
competing banks or bank holding companies may raise serious questions under the BHC Act. The Board believes that one company need
not acquire control of another in order to substantially lessen competition between them, and that the specific facts of each case will
determine whether the minority investment in a company will be
anticompetitive. See Sun Banks, Inc., 71 Federal Reserve Bulletin 243
(1985).

effective date of this Order, unless such period is
extended for good cause by the Board or by the
Federal Reserve Bank of Richmond, acting pursuant
to delegated authority.
By order of the Board of Governors, effective
October 26, 1992.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, Lindsey, and Phillips. Absent and
not voting: Governor La Ware.
JENNIFER J. JOHNSON

Associate Secretary of the Board

Appendix
As part of this proposal, CFC has committed that it
will not, without the Board's prior approval:
(1) Exercise or attempt to exercise a controlling influence over the management or policies of ComSouth or
its bank subsidiaries;
(2) Have or seek to have any employees or representative serve as an officer, agent or employee of ComSouth or its bank subsidiaries;
(3) Take any action causing ComSouth or its bank
subsidiaries to become a subsidiary of Carolina First;
(4) Acquire or retain shares that would cause the
combined interest of Carolina First and its officers,
directors and affiliates to equal or exceed 25% of the
outstanding voting shares of ComSouth;
(5) Propose a director or slate of directors in opposition to a nominee or slate of nominees proposed by the
management or board of directors of ComSouth;
(6) Attempt to influence the dividend policies or practices of ComSouth or its bank subsidiaries;
(7) Solicit or participate in soliciting proxies with
respect to any matter presented to the shareholders of
ComSouth;
(8) Attempt to influence the loan and credit decisions
or policies of ComSouth and its bank subsidiaries, the
pricing of services, any personnel decision, the location of any officers, branching, the hours of operation,
or similar activities of ComSouth and its bank subsidiaries;
(9) Dispose or threaten to dispose of shares of ComSouth in any manner as a condition of specific action
or nonaction by ComSouth;
(10) Enter into any other banking or nonbanking
transactions with ComSouth, except that Carolina
First may establish and maintain deposit accounts with
bank subsidiaries of ComSouth, provided that the
aggregate balances of all such accounts do not exceed
$500,000 and that the accounts are maintained on
substantially the same terms as those prevailing for

Legal Developments

comparable accounts of persons unaffiliated with
ComSouth; or
(11) Seek or accept representation on the board of
directors of ComSouth.

939

First Interstate BancSystem of Montana, Inc.
Billings, Montana

resenting 9.0 percent of the total deposits in commercial banking organizations in the state.2 This proposal
represents a reorganization of FIBM's subsidiary
banks and the establishment of new branches. Accordingly, consummation of the proposal would not have a
significantly adverse effect on competition in any
relevant banking market.

Order Approving Acquisition of Bank, Membership
in the Federal Reserve System, and Merger of Banks

Considerations Under the Convenience and Needs
Factor

First Interstate BancSystem of Montana, Inc., Billings, Montana ("FIBM"), a bank holding company
within the meaning of the Bank Holding Company Act
("BHC Act"), has applied under section 3 of the BHC
Act (12 U.S.C. § 1842), to acquire First Interstate
Bank of South Missoula, N.A., a de novo bank
("South Missoula Bank"). A subsidiary bank of
FIBM, First Interstate Bank of Commerce, Billings,
Montana ("Billings Bank"), also has applied pursuant
to section 9 of the Federal Reserve Act
(12 U.S.C. § 321) for membership in the Federal Reserve System. In addition, Billings Bank has applied
pursuant to section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) (the "Bank Merger
Act") to merge South Missoula Bank and its six other
subsidiary banks1 into Billings Bank, and to establish
branches at the present offices of these banks listed in
the Appendix pursuant to section 9 of the Federal
Reserve Act.
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (57 Federal Register 39,203 (1992)) and
given in accordance with applicable law. As required
by the Bank Merger Act, reports on the competitive
effects of the merger were requested from the United
States Attorney General, the Office of the Comptroller
of the Currency ("OCC"), and the Federal Deposit
Insurance Corporation ("FDIC"). The time for filing
comments has expired, and the Board has considered
the applications and all the comments received in light
of the factors set forth in section 3(c) of the BHC Act,
the Bank Merger Act and the Federal Reserve Act.
Billings Bank and all of the other banks to be merged
into Billings Bank, except for the newly chartered
South Missoula bank, are subsidiaries of FIBM. FIBM
is the third largest commercial banking organization in
Montana, controlling deposits of $576.7 million, rep-

A. Colstrip Bank

1. These banks are: First Interstate Bank of Missoula, N.A.,
Missoula; First Interstate Bank of Hardin, Hardin ("Hardin Bank");
First Interstate Bank of West Billings, Billings; First Interstate Bank
of Miles City, Miles City; First Interstate Bank of Billings Heights,
Billings; and First Interstate Bank of Colstrip, Colstrip ("Colstrip
Bank"), all in Montana.

In considering applications under section 3 of the BHC
Act, the Bank Merger Act and the Federal Reserve
Act, the Board must consider the convenience and
needs of the community to be served, and take into
account the records of the relevant depository institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). The CRA requires the federal financial supervisory agencies to
encourage financial institutions to help meet the credit
needs of the local communities in which they operate
consistent with the safe and sound operation of such
institutions. To accomplish this end, the CRA requires
the appropriate federal supervisory authority to "assess the institution's record of meeting the credit
needs of its entire community, including low- and
moderate-income neighborhoods, consistent with the
safe and sound operation of such institution," and to
take this record into account in its evaluation of bank
holding company applications.3
In October 1991, the Board denied an application by
FIBM to merge with an affiliated holding company on
the basis of the record of performance under the CRA
of one of FIBM's subsidiary banks, Colstrip Bank.4
The Board found that deficiencies in Colstrip Bank's
record of meeting the credit needs of its community,
particularly on the Northern Cheyenne Indian Reservation ("Reservation"), had continued through consecutive CRA performance examinations by Colstrip
Bank's primary supervisor, the FDIC. The Board also
found that FIBM had not taken sufficient steps to
address these deficiencies. The Colstrip Order noted
that the denial of FIBM's application was without
prejudice to future applications by FIBM at such time
as Colstrip Bank's CRA record of performance was in
place and that its policies and programs were working
well.

2. All banking data are as of June 30, 1992.
3. 12 U.S.C. § 2903.
4. First Interstate BancSystems of Montana,
Reserve Bulletin 1007 (1991) ("Colstrip Order").

Inc., 77 Federal

940

Federal Reserve Bulletin • December 1992

The Colstrip Order outlined specific aspects of Colstrip Bank's CRA performance that the Board believed should be addressed, including Colstrip Bank's
delineation of its service community, ascertainment
and marketing efforts related to the Reservation, and
record of offering and extending credit to the residents
of the Reservation. For example, the Board noted that
the bank had excluded the Reservation from its service
area, and had only recently undertaken some steps to
increase its contacts in order to ascertain the credit
needs of the residents of the Reservation. In addition,
Colstrip Bank's efforts to market credit-related services to the residents of the Reservation were found to
be minimal. The Board also found only nominal
amounts of lending to residents of the Reservation,
including housing-related loans and government sponsored lending programs.
The Board believes that the ability of Colstrip Bank
to demonstrate that its CRA record of performance is
in place and that its programs and policies are working
well is an important consideration in light of the
Board's findings in the Colstrip Order. The record of
these applications reflects additional steps taken by
Colstrip Bank to address the deficiencies noted in the
Colstrip Order.
Colstrip Bank has revised its community delineation
to include all of the Reservation and FIBM has committed that it will not amend the community delineation for any of its banks or branches without the prior
approval of the Federal Reserve Bank of Minneapolis.
In addition, Colstrip Bank has expanded its ascertainment efforts regarding the Reservation through a number of steps that include direct mail surveys, community and consumer panel meetings, and presentations
to residents of the Reservation. Colstrip Bank officers
and directors have also met with local community and
business organization such as the Northern Cheyenne
Livestock Association and the Northern Cheyenne
Chamber of Commerce.5 Other outreach efforts that
Colstrip Bank is arranging include intercultural training for the staff, officers and directors of the bank.
Colstrip Bank's board of directors has convened its
meetings on the Reservation to permit discussions
with residents.6
Marketing efforts for the Reservation have been
improved by a number of activities. For example,
Colstrip Bank now uses direct mailings and other
traditional marketing techniques to make the residents

5. An officer of Colstrip Bank currently serves as treasurer for the
Chamber of Commerce which focuses on economic development
issues related to the Reservation.
6. A Reservation resident and Northern Cheyenne tribal member
serves on the Colstrip Bank board of directors and this director will
continue to serve as a director of Billings Bank following the proposed
mergers.

of the Reservation aware of its credit products and
services. In addition, a bank loan officer visits the
Reservation on a monthly basis to take loan applications and to provide general assistance to potential
borrowers.
Colstrip Bank has increased the amount of lending
to Reservation residents since its lending activities
were reviewed by the FDIC and the Board. For the
first two quarters in 1992, Colstrip Bank overall made
$315,000 in new loans to Reservation borrowers, compared to total lending in 1991 of $309,000. Agricultural
loans to Reservation borrowers during this same period total $120,000, compared to $53,000 in total agricultural lending in 1991.
Colstrip Bank also has shown some improvement in
the types of credit products it offers to borrowers on
the Reservation. The bank has started making FHA
home improvement loans on the Reservation and has
started accepting loan applications under the FHA 248
loan program which lessens restrictions under federal
law regarding liens on real property located on the
Reservation. Colstrip Bank also actively supports several programs designed to benefit the Reservation's
small businessmen, including the Circle Banking Project and MicroBusiness Finance Program.
FIBM and Colstrip Bank have committed to take
additional steps to enhance the CRA record of performance regarding the Reservation. These steps include
establishing a liaison committee that will meet quarterly, increasing its participation in government lending programs, providing technical assistance to small
businesses, and establishing flexible lending criteria
for loans. In addition, FIBM and Colstrip Bank have
set a goal of $4 million in new lending to Reservation
residents over the next five years.
On the basis of these and other facts of record, the
Board concludes that the CRA performance record of
Colstrip Bank is now consistent with approval under
the convenience and needs factor. The Board expects
FIBM to continue its progress in improving this performance and to comply with all commitments regarding its CRA activities on the Reservation. Upon consummation of this proposal, Colstrip Bank will
become a branch of a state member bank, and the
Federal Reserve Bank of Minneapolis will have supervisory authority over these activities and will monitor
FIBM's progress and compliance. In addition, the
Board will closely review this record in future applications by FIBM that require consideration of its CRA
performance record.

B. Hardin and Billings Banks
In reviewing the convenience and needs factor, the
Board also has considered comments from the Crow

Legal Developments

Tribal Council and several individuals (collectively,
"Protestants") critical of the CRA performance of
Hardin Bank and Billings Bank.7 Protestants allege
generally that:
(1) Hardin Bank has not adequately ascertained the
credit needs of Crow Tribal members;8
(2) Hardin Bank has not provided adequate banking
services to the Crow Reservation; and
(3) Hardin Bank and the FIBM banks in Billings9 do
not make sufficient loans to Crow Tribal members.
The Board has carefully reviewed the CRA performance records of Hardin Bank and the Billings banks,
as well as Protestants' comments and the responses of
FIBM to those comments, and all of the other relevant
facts, in light of the CRA, the Board's regulations, and
the jointly issued Statement of the Federal Financial
Supervisory Agencies Regarding the Community Reinvestment Act ("Agency CRA Statement").10
Initially, the Board notes that both Hardin Bank and
the Billings banks have received a "satisfactory" rating
for CRA performance from their primary regulators,
the FDIC or the OCC, in their most recent examinations for CRA performance.11 The Agency CRA Statement provides that a CRA examination is an important
and often controlling factor in the consideration of an
institution's CRA record and that these reports will be
given great weight in the applications process.12
Ascertainment and Marketing. Hardin Bank's board
of directors has formalized a CRA policy and a written
Community Reinvestment Act Goals and Description
of Needs Ascertainment Program for its ascertainment
efforts throughout its delineated service area. This

7. One commenter has alleged that Billings Bank did not approve a
business loan because of (1) her age and sex, and (2) the fact that her
corporation was a small business. FIBM has responded that Billings
Bank denied the loan on the basis of the applicant's financial condition. Based on all the facts of record, including relevant reports of
examination, the Board concludes that these comments do not warrant denial of these applications.
8. Protestants also allege that Crow Tribal members are inadequately represented on the Hardin Bank's board of directors. Two
Crow Tribal members, including the Hardin Bank's president, currently sit on its board of directors. The Board believes that the
adequacy of a group's representation on the board of a bank is
generally beyond the scope of factors that are required to be assessed
under the CRA.
9. In addition to FIBM's lead Billings Bank, two small FIBM
subsidiaries, First Interstate Bank of West Billings ("West Billings
Bank") and First Interstate Bank of Billings Heights ("Billings
Heights Bank"), are located in Billings, Montana.
10. 54 Federal Register 13,742 (1989).
11. The most recent CRA examination by the FDIC for Hardin Bank
was as of August 1991, and the most recent CRA examination by the
OCC for Billings Bank was as of November 1988. In addition, West
Billings Bank and Billings Heights Bank were most recently examined
by the FDIC as of December 1990. None of these examinations found
any evidence of illegal discriminatory lending practices by these
FIBM subsidiary banks.
12. 54 Federal Register at 13,745.

941

service area includes the Crow Reservation and the
bank's ascertainment activities within this service area
include calls on customers and non-customers to obtain information concerning credit and deposit needs
and communicate services available to the local community. Ascertainment efforts are also conducted
through officer and employee involvement in local
community groups. For example, Hardin Bank management has discussed FHA 248 financing for real
estate loans on trust land held by the Bureau of Indian
Affairs ("BIA") with both the Cheyenne and Crow
tribal councils. In addition, Hardin Bank has participated in workshops in Crow Agency and Hardin for
Native American business borrowers.
Hardin Bank also markets its banking products
throughout its service area by mixed media advertising
that includes local television, radio and newspaper. In
addition, Hardin Bank has recently mailed a brochure
to Crow Reservation residents describing its services.
After consummation of the proposal, the CRA committees at Hardin Bank and Billings Bank, as well as the
other subsidiary FIBM banks, will become branch
CRA committees and will meet regularly with Community Advisory Boards to address CRA concerns. FIBM
states that the Community Advisory Boards will play a
central role in identifying community credit needs,
working with bank and branch management on efforts
to address such needs and assessing the success of
these efforts. Records of these meetings will be forwarded to FIBM's CRA committee and will be presented to the Billings Bank's board of directors at each
regular meeting. FIBM's board of directors will communicate directly with the Community Advisory
Boards and branch management on matters of CRA
policy.
Lending Activities. Lending to residents of the Crow
Reservation for housing-related, consumer and small
business purposes comprises a substantial percentage
of Hardin Bank's overall lending activity, and the bank
currently has a number of these types of loans outstanding that were originated to Crow Reservation borrowers.13 For example, Hardin Bank has 30 home mortgage
and home improvement loans with total balances of
approximately $700,000, and 425 consumer loans with
total balances of approximately $1.7 million. Small
business loans total 27 with current balances totaling
approximately $1.1 million. Hardin Bank's outstanding
agricultural loans originated to the Crow Reservation
currently total 107 loans, with total balances of approximately $3.2 million.14

13. All FIBM lending data are as of September 1992.
14. Hardin Bank also has an additional 5 real estate loans for
agricultural properties to the Crow Reservation totaling approximately $700,000.

942

Federal Reserve Bulletin • December 1992

FIBM's lending activities in Billings for Crow Reservation borrowers are conducted primarily through
the lead Billings Bank. For example, Billings Bank
currently has 204 consumer loans originated to Crow
Reservation borrowers with total balances of approximately $1.2 million. In addition, Billings Bank had
extended 5 agricultural loans totaling approximately
$400,000 to the Crow Reservation.15
On the basis of all the facts of record, including all of
the comments received and relevant examination reports, the Board believes that the CRA performance
records of Hardin Bank and the Billings banks, as well
as the other FIBM subsidiary banks, are consistent
with approval of these applications.16

Other Considerations
The Board also concludes that the financial and managerial resources and future prospects of FIBM, Billings Bank, South Missoula Bank, and all the other
subsidiary banks of FIBM, as well as other factors
required to be considered by the Board, are consistent
with approval under the BHC Act and the Bank
Merger Act. 17
Billings Bank also has applied under section 9 of the
Federal Reserve Act to become a member of the
Federal Reserve System and to establish branches at
the present offices of the banks to be merged into
Billings Bank. The Board has considered the factors it
is required to consider when reviewing applications

15. The total number of agricultural loans extended by all FIBM
affiliates to the Crow Reservation is 125, with total outstanding
balances of approximately $4.6 million.
16. One Protestant has requested that the Board hold a public
hearing or meeting to assess further facts surrounding the CRA
performance of FIBM and its subsidiary banks relating to the Crow
Reservation. The Board is not required under the Federal Reserve
Act, the Bank Merger Act or the BHC Act to hold a public hearing or
meeting in this case. Under the Board's rules, the Board may, in its
discretion, hold a public hearing or meeting on an application to clarify
factual issues related to the application and to provide an opportunity
for testimony, if appropriate. 12 U.S.C. §§ 262.3(e) and 262.25(d).
The Board has carefully considered this request. In the Board's
view, interested parties have had a sufficient opportunity to present
written submissions, and have submitted written comments that have
been considered by the Board. In light of this, the Board has
determined that a public meeting or hearing is not necessary to clarify
the factual record in these applications, or otherwise warranted in this
case. Accordingly, the request for a public meeting or hearing on these
applications is hereby denied.
17. Several commenters have alleged that shareholders of FIBM
may have violated section 2 of the Crow Indian Allotment Act, 41
Stat. 751 (1920), as amended by 54 Stat. 252 (1940), by purchasing real
estate located on the Crow Reservation. These allegations do not
involve any actions by management on behalf of FIBM banks. In
addition, these allegation are subject to ongoing court proceedings
that will provide the plaintiffs with an adequate remedy if the alleged
misconduct can be established. Based on a review of all the facts of
record, the Board concludes that these comments do not provide a
basis for denying these applications.

pursuant to section 9 of the Federal Reserve Act and
finds those factors to be consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. This approval is specifically
conditioned upon compliance by FIBM and its subsidiaries with the commitments made in connection with
these applications. For purposes of this action, all of
the commitments and conditions will be considered
conditions imposed in writing and, as such, may be
enforced in proceedings under applicable law. These
transactions shall not be consummated before the
thirtieth calendar day following the effective date of
this Order, or later than three months after the effective date of this Order, unless such period is extended
for good cause by the Board or by the Federal Reserve
Bank of Minneapolis, acting pursuant to delegated
authority.
By order of the Board of Governors, effective
October 26, 1992.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, Lindsey, and Phillips. Absent and
not voting: Governor LaWare.
JENNIFER J. JOHNSON

Associate Secretary of the Board

Appendix
Billings Bank will establish the following
branches:
(1) 101 E. Front Street, Missoula, Montana;
(2) 402 North Center, Hardin, Montana;
(3) 1115 Main Street, Miles City, Montana;
(4) 730 Main Street, Billings, Montana;
(5) 2501 Central Avenue, Billings, Montana;
(6) 12 Cherry Street, Colstrip, Montana; and
(7) 3502 Brooks, Missoula, Montana.

Meridian Bancorp, Inc.
Reading, Pennsylvania
Order Approving Acquisition of a Bank Holding
Company
Meridian Bancorp, Inc., Reading, Pennsylvania ("Meridian"), a bank holding company within the meaning
of the Bank Holding Company Act ("BHC Act"), has
applied for the Board's approval under section 3 of the
BHC Act (12 U.S.C. § 1842) to acquire all of the
voting shares of Peoples Bancorp, Inc., Lebanon,
Pennsylvania ("Peoples"), and thereby to acquire
indirectly Peoples' subsidiary bank, The Peoples Na-

Legal Developments

tional Bank of Lebanon, Lebanon, Pennsylvania
("Peoples Bank"). Meridian's wholly owned subsidiary state member bank, Meridian Bank, Reading,
Pennsylvania ("Meridian Bank"), also has applied for
the Board's approval under section 18(c) of the Federal Deposit Insurance Act (the "Bank Merger Act")
to merge with Peoples Bank and under section 9 and
section 24A of the Federal Reserve Act to establish
additional branches and invest in bank premises.1
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (57 Federal Register 34,494 (1992)). The
time for filing comments has expired, and the Board
has considered these applications and all comments
received in light of the factors set forth in section 3(c)
of the BHC Act, the Bank Merger Act, and the Federal
Reserve Act. 2 As required by the Bank Merger Act,
reports on the competitive effects of the merger were
requested from the United States Attorney General,
the Office of the Comptroller of the Currency
("OCC"), and the Federal Deposit Insurance Corporation ("FDIC").
Meridian, with approximately $11.9 billion in consolidated assets, controls two subsidiary banks located
in Pennsylvania and one subsidiary bank located in
Delaware.3 Meridian controls deposits of $9 billion in
Pennsylvania, and is the fourth largest commercial
banking organization in that state. Peoples, with approximately $143 million in consolidated assets, controls one bank in Pennsylvania. Upon consummation
of the transaction, Meridian would remain the fourth
largest commercial banking organization in Pennsylvania, controlling deposits of approximately $9.1 billion
in that state, representing 6.6 percent of deposits in
commercial banks in that state.
Competitive

943

organization ("depository institution") in the market,
controlling $559 million in deposits in the market,
representing 8.1 percent of total deposits held by
depository institutions in the market ("market deposits"). 5 Peoples is the tenth largest depository institution in the market, controlling $131 million in deposits,
representing 1.9 percent of market deposits. The market would remain moderately concentrated upon consummation of the proposal, and the HerfindahlHirschman Index ("HHI") would increase by 31
points to 1047.6 Thirty-five depository institutions operating a total of 235 offices would remain in the
market. The Board also has sought comments concerning the competitive effects of this proposal from
the United States Attorney General, the OCC, and the
FDIC. None of these agencies has provided any
objection to consummation of this proposal nor indicated that the proposal would have any significantly
adverse competitive effects.
After considering the competition offered by other
depository institutions in the market, the number of
competitors remaining in the market, the increase in
concentration as measured by the HHI Index, and
other facts of record, the Board has concluded that
consummation of the proposal would not result in a
significantly adverse effect on competition in the Harrisburg/Lebanon/Carlisle MSA banking market or in
any other relevant banking markets.7
Convenience and Needs

Considerations

In considering an application under section 3 of the
BHC Act, the Bank Merger Act, and the Federal
Reserve Act, the Board must consider the convenience and needs of the communities to be served, and

Considerations

Meridian and Peoples compete directly in the Harrisburg/Lebanon/Carlisle MSA banking market.4 Meridian is the fifth largest commercial banking or thrift

1. Meridian will establish branches at the following locations:
(1) 8th and Cumberland Streets, Lebanon, Pennsylvania;
(2) East Walnut at Cumberland Street, Lebanon, Pennsylvania;
(3) North Eighth Street, Lebanon, Pennsylvania;
(4) East Chocolate Avenue and Derry Road, Hershey, Pennsylvania; and
(5) Dutch Way Farm Market Complex, Schaefferstown, Pennsylvania.
2. The Board has also considered comments filed after the close of
the comment period. Under the Board's rules, the Board may in its
discretion take into consideration the substance of such comments.
12 C.F.R. 262.3(e).
3. Asset and state deposit data are as of June 30, 1992.
4. The Harrisburg/Lebanon/Carlisle MSA banking market comprises Cumberland, Dauphin, Lebanon, and Perry Counties in Pennsylvania.

5. Market share data are based on calculations in which the deposits
of thrift institutions are included at 50 percent. The Board previously
has indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. Midwest
Financial Group, 75 Federal Reserve Bulletin 386 (1989); National
City Corporation, 70 Federal Reserve Bulletin 743 (1984). Market
deposit data are as of June 30, 1991, and have been updated to reflect
mergers and acquisitions since that date.
6. Under the revised Department of Justice Merger Guidelines,
49 Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is between 1000 and 1800 is considered moderately
concentrated. The Justice Department has informed the Board that a
bank merger or acquisition generally will not be challenged (in the
absence of other factors indicating anti-competitive effects) unless the
post-merger HHI is at least 1800 and the merger increases the HHI by
200 points. The Justice Department has stated that the higher than
normal HHI thresholds for screening bank mergers for anti-competitive effects implicitly recognize the competitive effect of limitedpurpose lenders and other non-depository financial entities.
7. The Board has received comments opposing the proposal on the
grounds that Meridian would exercise monopoly or near-monopoly
power in this local banking market. For the reasons discussed above,
the Board does not believe that the proposal would result in significantly anti-competitive effects in any relevant banking market.

944

Federal Reserve Bulletin • December 1992

take into account the records of the relevant depository institutions under the Community Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"). The
CRA requires the federal financial supervisory agencies to encourage financial institutions to help meet
the credit needs of the local communities in which
they operate consistent with the safe and sound
operation of such institutions. To accomplish this
end, the CRA requires the appropriate federal supervisory authority to "assess the institution's record of
meeting the credit needs of its entire community,
including low- and moderate-income neighborhoods,
consistent with the safe and sound operation of such
institution," and to take that record into account in
its evaluation of bank holding company applications. 8
In connection with this application, the Board has
received comments from an organization ("Protestant") alleging that Meridian has failed to ascertain or
meet the credit needs of low-income and minority
neighborhoods, and minority-owned small businesses,
in North Philadelphia. Protestant also alleges that
Meridian Bank has illegally discriminated in making
housing-related loans in North Philadelphia on the
basis of 1990 data submitted under the Home Mortgage Disclosure Act ("HMDA"). 9
The Board has carefully reviewed the CRA performance records of Meridian's subsidiary banks and
Peoples Bank, as well as the comments received and
Meridian's response to those comments, in light of the
CRA, the Board's regulations, and the Statement of
the Federal Financial Supervisory Agencies Regarding
the Community Reinvestment Act ("Agency CRA
Statement").10

8. 12 U.S.C. § 2903.
9. Several other commenters have questioned Meridian Bank's
ability to maintain an adequate level of responsiveness to local
banking needs in Lebanon County, Pennsylvania, where Peoples
Bank is located. Meridian has responded that its retail and commercial
functions are organized on a geographic basis, and following consummation of this proposal, the bank's retail manager and commercial
manager for its Susquehanna Valley division will maintain offices in
Lebanon County. In addition, Meridian has stated that the lending
authority of these managers and of other lending officers based in
Lebanon County will approximate the legal lending limit of Peoples
Bank, and that the variety of products and services offered by
Meridian Bank will be broader than those of Peoples Bank. The main
office of Peoples Bank and three of its four branches will continue to
be operated as branches of Meridian Bank. The Hershey, Pennsylvania, branch of Peoples Bank will be closed because Meridian Bank
operates four branches within two miles of this branch.
Other commenters have raised issues regarding potential unemployment as a result of this proposal, which issues are not related to
Meridian's record of performance under the CRA. Meridian has
committed that it will assist any displaced employees to find employment with Meridian within the geographic area surrounding Lebanon
County, and will provide severance benefits to persons who cannot be
so employed.
10. 54 Federal Register 13,742 (1989).

Record of Performance Under the CRA
A. CRA Performance Examinations
The Agency CRA Statement indicates that decisions
by agencies to allow financial institutions to expand
will be made pursuant to an analysis of the institution's
overall CRA performance and will be based on the
actual record of performance of the institution. The
Board also has reviewed the CRA examination records
of these institutions.11
Initially, the Board notes that Meridian Bank received an "outstanding" rating from the bank's primary federal regulator, the Federal Reserve Bank of
Philadelphia, in its most recent examination for CRA
performance as of July 1, 1991 (the "1991 Examination"). Additionally, Peoples Bank and the other subsidiary banks of Meridian received "outstanding" or
"satisfactory" ratings from their primary federal regulators in their most recent CRA performance examinations.12

B. Corporate Policies
Meridian Bank has in place the types of policies and
procedures that the Board and other federal bank
supervisory agencies have indicated contribute to an
effective CRA program. Meridian Bank established
the Meridian Community Partnership Program
("MCPP") in 1988 to institutionalize its CRA activities. MCPP is administered and implemented by the
Corporate Community Affairs Department of the
bank. This department is headed by the bank's CRA
officer. Meridian Bank also has established a CRA
Monitoring Committee, which meets quarterly and is
responsible for reviewing the bank's CRA performance and making CRA-related policy decisions. This

11. The Agency CRA Statement provides that a CRA examination
is an important and often controlling factor in the consideration of an
institution's CRA record and that these reports will be given great
weight in the applications process. 54 Federal Register 13,745 (1989).
Protestant alleges that the most recent examination of Meridian Bank
for CRA performance does not accurately reflect the bank's CRA
performance because the chairman of the board and chief executive
officer of Meridian is a Class A member of the board of directors of the
Federal Reserve Bank of Philadelphia, the bank's primary federal
regulator. Federal Reserve Bank directors do not participate in the
direct supervision of banks or bank holding companies or in matters
such as applications processing, examinations, or enforcement proceedings, and did not participate in or review the CRA examination in
this case.
12. Peoples Bank received a "satisfactory" performance rating
from the OCC on January 22, 1990; Delaware Trust Company,
Wilmington, Delaware, received an "outstanding" performance rating from the FDIC on July 20, 1990; and The First National Bank of
Pike County, Milford, Pennsylvania, received a "satisfactory" performance rating from the OCC on August 30, 1982. Delaware Trust
Company and The First National Bank of Pike County are wholly
owned subsidiaries of Meridian.

Legal Developments

committee includes the chairman of the board and
chief executive officer of Meridian, the president and
chief executive officer of Meridian Bank, and other
executive officers of Meridian Bank, Meridian Mortgage Corporation, the bank's mortgage banking subsidiary ("MMC"), and other banking affiliates.
Additional committees involving senior managers of
Meridian Bank exist to investigate, promote, or review
CRA activities in specific areas, such as the use of tax
credits and the participation of the bank with community development corporations. MCPP and CRA activities in general are discussed at meetings of Meridian Bank's board of directors.13 In addition, the 1991
Examination found that the allocation of human and
financial resources by the bank to MCPP had increased and that the scope of the program had expanded since the previous examination.

C. Ascertainment and Marketing Efforts
Meridian Bank has an established program to gather
and evaluate information about the communities it
serves, their credit needs, and the receptivity of those
communities to the bank's products and services. This
program also serves to facilitate the development of
new products and services to address the identified
needs. For example, the 1991 Examination noted that
Meridian Bank officers made calls on over 1,500
community organizations and public sector agencies
during the preceding two-year period. Information
from these calls is entered into a central database,
where it is reviewed by departmental managers and
the Corporate Community Affairs Department. Meridian Bank also operates the Meridian Community Forum, a speakers bureau designed to educate the communities Meridian Bank serves concerning the bank's
credit products and to learn from these communities
about their credit needs. Forums frequently are conducted as workshops or seminars on specialized subjects; forum subjects have included non-profit organization management, mortgage and small business
lending, and basic banking services. Over sixty forum
presentations were made in Philadelphia alone during
1990 and 1991.
Meridian Bank also ascertains the credit needs of
the communities it serves by encouraging its officers
and employees to serve on advisory boards of com-

13. For example, during the two-year period preceding the 1991
Examination, the board of directors of Meridian twice approved an
expanded CRA statement for the bank and reviewed the bank's
community delineation and distribution of credits, the bank's lowincome housing tax credit activities, MCPP loan products, a proposal
to establish a community development corporation subsidiary, and a
proposal to participate in a special financial assistance package for the
City of Philadelphia during its fiscal crisis.

945

munity and public sector organizations serving lowand moderate-income groups. As a result of this participation, Meridian Bank has provided bridge financing to such organizations facing delays in the receipt of
public funds. Officers and employees serve on over 40
such boards, including, in the City of Philadelphia, the
North Broad Street Revitalization Project, North Philadelphia Germantown/Lehigh Action Planning Committee, Philadelphia Council for Community Advancement, and United Black Business Association.
Meridian Bank also has invited leaders from nonprofit, public sector, minority, and religious organizations to join with Meridian Bank employees on internal
advisory committees established in each of the bank's
four geographic divisions. Advisory committees meet
at least quarterly to review the bank's loan activity
reports, geocoded loan data, and marketing information. The staff of the Corporate Community Affairs
Department reviews all records of these meetings to
evaluate and develop the bank's products.14
Meridian Bank's market research department also
assembles and evaluates demographic data, information on consumer habits, and competitive data. It
regularly conducts focus groups among Meridian Bank
employees to improve the delivery of services. For
example, Meridian Bank has implemented suggestions
from these focus groups to hire bilingual personnel,
introduce Spanish language ATM screens, and develop Spanish and Korean language advertising materials. The market research department also creates
demographic profiles for each county and MSA served
by Meridian Bank. These profiles are provided to bank
management, included in the bank's CRA statement,
and made available to community organizations. The
participation of community groups in this process has
prompted additional ascertainment efforts.15 Market
research also tracks the distribution of Meridian
Bank's housing, consumer, and commercial loan products based on census tracts, gender, income, and race.
On the basis of this information, Meridian Bank has
introduced new products and altered the marketing of
old products. For example, NEED (Necessary Emergency Expense Disbursement) Loans of up to $1,500,
repayable at an interest rate one-half percent below

14. Advisory subcommittees also have been established when
appropriate to address specific local needs. In the Susquehanna Valley
division of the bank, an advisory subcommittee identified the need to
increase minority lending in that area and arranged for the bank to
make a lending commitment to Lancaster Enterprise, Inc., to be used
to fund smaller loans to minority businesses in Lancaster, Pennsylvania.
15. For example, in Berks County, Pennsylvania, community
organizations identified the need for more detailed information about
local housing needs, and Meridian Bank participated in the creation of
a funding consortium to contract for the performance of the targeted
survey.

946

Federal Reserve Bulletin • December 1992

the prevailing consumer loan rate, were introduced as
a result of this analysis.
In addition, Meridian Bank has well-established
marketing and advertising programs. These programs
are approved, reviewed, and monitored by senior
management, and inform all communities served by
the bank, including low- and moderate-income neighborhoods, of the availability of the bank's products
and services. The bank uses minority newspapers,
business directories, and radio stations, and the bank's
printed advertising reflects the diversity of the neighborhoods in its target markets. Many materials have
been produced in the Spanish language, and mass
mailings have been made to hispanic civic, community, and service organizations throughout Meridian
Bank's service communities. Newsletters have been
developed specifically for distribution to non-profit
organizations, small businesses, and agribusinesses.
Internally, CRA training manuals have been tailored to
each of the bank's four geographic divisions. These
manuals focus on the products, community contacts,
public sector agencies, and demographic data appropriate to that area.

D. Lending and Other Activities
Meridian Bank offers and participates in a number of
programs designed to assist in meeting the housingrelated credit needs of its service communities, including low- and moderate-income neighborhoods.16 For
example, Meridian Bank's mortgage lending department, under the Meridian Community Partnership
Loan Program, offers a variety of conventional and
governmentally insured, guaranteed, or subsidized
loan programs designed to meet the credit needs of
low- and moderate-income homebuyers.17
Meridian Bank originated 148 loans in the aggregate
amount of $7.9 million in 1990 under the Pennsylvania
Housing Finance Agency ("PHFA") conventional
loan program, and a total of 226 loans aggregating

16. The 1991 examination found that the geographic distribution of
Meridian Bank's housing-related credit extensions, applications, and
denials demonstrated a reasonable penetration into all segments of the
delineated service area.
17. Meridian Bank's residential mortgage lending department offers
a standard product array of fourteen permanent mortgage loan types,
four construction loan and permanent financing facilities, and various
special credit programs. Special credit programs include FHA Section
203(B), which provides mortgage insurance for loans with loan-tovalue ratios in excess of 80 percent, FHA Section 221(D)(2), which
provides loans to low- and moderate-income homebuyers, Pennsylvania Housing Finance Agency programs, which finance loans to creditworthy, low-income, first-time homebuyers at reduced interest rates,
with reduced or assisted settlement costs, and the Delaware Valley
Mortgage Plan, which offers low- to moderate-income homebuyers
flexible underwriting criteria, reduced interest rates, higher loan-tovalue ratios, and reduced settlement costs.

$14.5 million under all of its standard, governmentallyassisted programs. Meridian Bank has also actively
participated in other special housing-related lending
programs in Philadelphia, including the Philadelphia
Redevelopment Authority 203(K) Program (bridge financing to support loans to individuals and investors
to acquire and rehabilitate deteriorated properties) and
the Philadelphia MEND Program (loans to developers
to rehabilitate abandoned and deteriorated properties
for low- to moderate-income housing).
MMC, a wholly owned subsidiary of Meridian
Bank, provides financing for single-family housing,
multi-unit housing, and low- and moderate-income
projects through a full line of fixed rate, variable rate,
FHA, and VA loans. MMC participates in the State of
Pennsylvania First Time Home Buyer's Mortgage
Bond Program and in the Community Home Buyer's
Program (a partnership among the lender, a private
mortgage insurer, and the Federal National Mortgage
Association to permit less stringent loan underwriting
and lower settlement costs and to provide credit and
home maintenance counseling). From January 1991
through August 1992, Meridian Bank and MMC made
77 mortgage loans totaling approximately $4.5 million
in census tracts located in North Philadelphia.18
Meridian Bank's small business lending activities
are conducted through a separate department within
the bank, and its programs emphasize lending to small
businesses in low- and moderate-income areas. During
1990, Meridian Bank extended 104 loans aggregating
$6.9 million to small businesses with an employee base
of 20 or less. Meridian Bank is a Certified Preferred
SBA Lender, which reduces substantially the time
required to process SBA loan applications, and the
bank is an active SBA lender.19 During 1990, Meridian
Bank originated over $18.6 million in SBA loans, and
during the first six months of 1991 it originated 25 loans
aggregating $8.5 million.20 In Philadelphia, Meridian
Bank participates in several credit programs designed

18. The 1991 Examination expressed some concern that, when
examined alone, MMC's presence as a mortgagor in low- and moderate-income census tracts in Philadelphia County, Pennsylvania, declined from 1989 to 1990. However, the 1991 Examination also noted
the increased emphasis that Meridian Bank had placed during that
period on its newly formed internal mortgage lending department to
deliver credit services in low- and moderate-income census tracts.
The 1991 Examination called for a more coordinated joint effort from
Meridian Bank and MMC.
19. Meridian Bank has been the largest volume SBA lender in the
six-state mid-Atlantic region that includes Pennsylvania during each
of the past six years.
20. Meridian Bank also has an agribusiness lending department that
offers a variety of credit and banking services to small, independent
farming operations and to larger agricultural enterprises. Meridian
Bank is a Certified Preferred Lender under the Farmers Home
Administration guaranteed loan program, which, as in the SBA
program, permits the bank to reduce substantially the time required to
process loan applications.

Legal Developments

to assist in meeting the credit needs of small businesses, including the Philadelphia Commercial Development Corporation ("PCDC")(promotion of entrepreneurial development, especially among women and
minorities), the PCDC Housing Contractor Program,
and the West Philadelphia Neighborhood Enterprise
Center (micro-loan pool and peer group lending facility). Small business lending in North Philadelphia
census tracts from January 1991 through September
1992 totalled 25 loans for approximately $1.7 million.
Meridian Bank also offers special consumer credit
products for low- and moderate-income consumers
under guidelines used by PHFA for its special credit
programs. Qualified applicants are eligible for reduced
interest rates, and the underwriting criteria are more
flexible in evaluating the credit histories of low- and
moderate-income consumers.21 Consumer lending
from January 1991 through June 1992 totalled 863
loans amounting to approximately $5.4 million in
North Philadelphia census tracts.
Community development activities by Meridian
Bank also support residents in North Philadelphia. For
example, the bank supports the Allegheny West Foundation with board participation, loans, and grants to
promote housing development and related programs
for limited income families in North Philadelphia,
including a 41-unit low-income rental housing project,
and to encourage the development of neighborhood
small businesses. Meridian Bank made 10 community
development loans in North Philadelphia census tracts
totalling approximately $1.2 million from January 1991
through October 1992.

E. HMDA Data and Lending Practices
The Board has reviewed the 1990 HMDA data reported by Meridian Bank in light of Protestant's comments. Data cited by the Protestant indicate disparities
in rates of housing-related loan applications, and in
approvals and denials that vary by racial or ethnic
group in certain areas served by Meridian Bank.
Because all banks are obligated to ensure that their
lending practices are based on criteria that assure not
only safe and sound lending, but also assure equal
access to credit by creditworthy applicants regardless
of race, the Board is concerned when the record of an
institution indicates disparities in lending to minority
applicants. The Board recognizes, however, that
HMDA data alone provide only a limited measure of
any given institution's lending in its community. The
Board also recognizes that HMDA data have limita-

21. Under these guidelines, Meridian Bank made 2,692 loans
totalling $14.5 million during 1990, and it made 3,485 loans totalling
$20.2 million during the first six months of 1991.

947

tions that make the data an inadequate basis, absent
other information, for conclusively determining
whether an institution has engaged in illegal discrimination on the basis of race or ethnicity in making
lending decisions.
The 1991 Examination found no evidence of illegal
discrimination at Meridian Bank. In addition, the 1991
Examination found that Meridian Bank's board of
directors and senior management periodically assess
the adequacy of its implemented nondiscriminatory
policies, procedures, and training programs through
internal reviews and management reporting systems.
The bank's policies and procedure manuals also contain information that is intended to inform operating
personnel of the provisions of the various consumer
regulations adopted to prevent discriminatory or illegal credit practices.
Meridian Bank has undertaken a number of steps
designed to improve its lending to minorities and lowand moderate-income neighborhoods. For example, to
assist potential borrowers, Meridian Bank has increased its own credit counseling efforts and its efforts
in conjunction with community groups, such as the
Harrisburg Fair Housing Council. The bank has also
increased the promotion of the PHFA First Time
Home Buyer's Lending Program to improve the lending opportunities for these borrowers. Meridian Bank
is also participating in programs such as the Community Home Buyers Program with more flexible underwriting criteria which permit higher debt to income
ratios.

G. Conclusion Regarding Convenience and
Needs Factors
The Board has carefully considered the entire record
of this application, including the comments filed in this
case, in reviewing the convenience and needs factor
under the BHC Act. Based on a review of the entire
record of performance, including information provided
by the commenters and the performance examinations
by the banks' primary regulators, the Board believes
that the efforts of Meridian and Peoples to help meet
the credit needs of all segments of the community it
serves, including low- and moderate-income neighborhoods, are consistent with approval of this application.
The Board recognizes that the record compiled in
these applications points to areas for improvement in
the CRA performance of Meridian Bank. In this regard, Meridian has initiated steps designed to
strengthen its housing-related lending to low- and
moderate-income and minority borrowers. On the
basis of all the facts of record, the Board concludes
that the convenience and needs considerations, including the performance records of Meridian and Peoples

948

Federal Reserve Bulletin • December 1992

Bank, are consistent with approval of these applications. The Board expects Meridian Bank to implement
fully the CRA initiatives and commitments discussed
in this Order and contained in its application. Meridian
Bank's progress in implementing these initiatives and
commitments will be monitored by the Federal Reserve Bank of Philadelphia and in future applications
to expand its deposit-taking facilities.
Other Considerations
The Board also concludes that the financial and managerial resources22 and future prospects of Meridian
and Peoples, and their subsidiary banks, and the other
factors that the Board must consider under section 3 of
the BHC Act and the Bank Merger Act are consistent
with approval. Meridian Bank also has applied under
sections 9 and 24A of the Federal Reserve Act to
establish branches and invest in branch premises. The
Board has considered the factors it is required to
consider when reviewing applications pursuant to
these sections of the Federal Reserve Act and finds
those factors to be consistent with approval.
Based on the foregoing and other facts of record, the
Board has determined that the applications should be,
and hereby are, approved. The Board's approval of
this transaction is specifically conditioned upon compliance by Meridian with the commitments it has made
in connection with this application. For purposes of
this action, these commitments are considered conditions imposed in writing by the Board in connection
with its findings and decision and may be enforced in
proceedings under applicable laws. The transaction
approved in this Order shall not be consummated
before the thirtieth calendar day following the effective
date of this Order, or later than three months after the
effective date of this Order, unless such period is
extended for good cause by the Federal Reserve Bank
of Philadelphia, pursuant to delegated authority.
By order of the Board of Governors, effective
October 26, 1992.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, Lindsey, and Phillips. Absent and
not voting: Governor La Ware.
JENNIFER J. JOHNSON

Associate Secretary of the Board

22. The Board has considered a comment alleging that Meridian
Bank has employed wrongful demand and collection procedures in
connection with loans made to a minority-owned partnership. On the
basis of all the facts of record, including an investigation of the
allegations and relevant reports of examination by the Federal Reserve Bank of Philadelphia, the Board concludes that these comments
do not raise issues that would warrant a denial of these applications.

Orders Issued Under Section 4 of the Bank
Holding Company Act
First Bank System, Inc.
Minneapolis, Minnesota
Order Approving Acquisition of a Savings
Association
First Bank System, Inc., Minneapolis, Minnesota
("FBS"), and its wholly owned subsidiary, Central
Bancorporation, Inc., Denver, Colorado ("CBI"),
both bank holding companies within the meaning of
the Bank Holding Company Act ("BHC Act"), have
applied pursuant to section 4(c)(8) of the BHC Act
(12 U.S.C. § 1843(c)(8)) to acquire Western Capital
Investment Corporation, Denver, Colorado ("Western Capital"), and its savings association subsidiary,
Bank Western, Denver, Colorado, pursuant to the
Board's Regulation Y (12 C.F.R. 225.25(b)(9)).1 Western Capital has also applied to acquire the nonbanking
subsidiaries of Western Capital and thereby engage in
mortgage lending activities, credit insurance, and general insurance agency activities pursuant to the
Board's Regulation Y. 2
Notice of the applications, affording interested persons an opportunity to submit comments, has been
published (57 Federal Register 34,780 (1992)). The
time for filing comments has expired, and the Board
has considered the applications and all the comments
received in light of the factors set forth in section
4(c)(8) of the BHC Act.
The Board has determined that the operation of a
savings association is closely related to banking and
permissible for bank holding companies. 12 C.F.R.
225.25(b)(9). In making this determination, the Board
required that savings associations acquired by bank
holding companies conform their direct and indirect
activities to those permissible for bank holding companies under section 4 of the BHC Act. In this regard,

1. Western Capital will merge with and into CBI, with CBI as the
surviving entity. FBS has also requested approval to acquire 19.9
percent of Western Capital's stock under a stock option agreement.
This agreement becomes moot upon consummation of this proposal.
2. These nonbanking subsidiaries are: Field Mortgage Co., Denver,
Colorado (mortgage lending activities pursuant to 12 C.F.R.
225.25(b)(1)); and Teton National Insurance Company, Cheyenne,
Wyoming (credit insurance activities pursuant to 12 C.F.R.
225.25(b)(8)(i)). FBS, a bank holding company grandfathered to engage in general insurance agency activities under section 4(c)(8)(G) of
the BHC Act, has also applied to acquire Western Capital's Western
Insurance Services, Inc., Denver, Colorado, and thereby continue to
engage in these activities pursuant to 12 C.F.R. 225.25(b)(8)(vii). FBS
is seeking approval from the Colorado Insurance Commissioner to
engage in these activities and the Board's action is specifically
conditioned upon obtaining approval to continue these activities from
the state commissioner.

Legal Developments

the Board has previously determined that the activities
of Western Capital's nonbanking subsidiaries that FBS
and CBI propose to retain are permissible activities for
bank holding companies.3
In considering applications under section 4(c)(8) of
the BHC Act, the Board is required to determine that
the performance of the proposed activities "can reasonably be expected to produce benefits to the public
. . . that outweigh possible adverse effects, such as
undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8).
FBS, with total consolidated assets of approximately $17.8 billion, controls 24 banks in Colorado,
Minnesota, Montana, North Dakota, Washington and
Wisconsin.4 FBS is the fourth largest commercial
banking organization in Colorado, controlling deposits
of $2.2 billion, representing 9.2 percent of total deposits in commercial banking organizations in the state.
Western Capital is the second largest thrift organization in Colorado, controlling deposits of $2.1 billion,
representing 31.2 percent of total thrift deposits in the
state. Upon consummation of the proposed transaction, FBS would become the second largest bank and
thrift institution (together, "depository institutions")
in Colorado, controlling deposits of $4.3 billion, representing 14.0 percent of total deposits in depository
institutions in the state.
FBS and Western Capital compete directly in the
Colorado Springs, Denver, Fort Collins, Grand Junction, Greeley and Pueblo banking markets, all in
Colorado. After considering the competition offered
by other depository institutions in these markets,5 the
number of competitors remaining in the markets, the
increase in concentration6 and other facts of record,
3. FBS has committed to divest any impermissible real estate
investments within two years of consummation of the proposal.
4. Asset data are as of June 30, 1992. State deposit data are as of
December 31, 1991. Market deposit data are as of June 30, 1990, for
banks and March 31, 1990, for thrift institutions.
5. Market deposit 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, major competitors of
commercial banks. See Midwest Financial Group, 75 Federal Reserve
Bulletin 386 (1989); National City Corporation, 70 Federal Reserve
Bulletin 743 (1984). Because the deposits of Western Capital would be
controlled by a commercial banking organization under FBS's proposal, those deposits are included at 100 percent in the calculation of
the pro forma market share. See Norwest Corporation, 78 Federal
Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal Reserve
Bulletin 669, 670 n.9 (1990).
6. Under the revised Department of Justice Merger Guidelines, 49
Federal Register 26,823 (June 29, 1984), a market in which the
post-merger HHI is less than 1000 is considered unconcentrated, a
market in which the post-merger HHI is between 1000 and 1800 is
considered moderately concentrated, and a market in which the
post-merger HHI is above 1800 is considered highly concentrated.
The Justice Department has informed the Board that a bank merger or
acquisition generally will not be challenged (in the absence of other

949

the Board has concluded that consummation of the
proposal would not result in a significantly adverse
effect on competition in any relevant banking market.7
Accordingly, the Board concludes that consummation
of this proposal would not result in a significantly
adverse effect on competition in any relevant market.
Community Reinvestment Act

Considerations

In considering applications to acquire a savings association under section 4 of the BHC Act, the Board also
reviews the records of performance of the relevant
institutions under the Community Reinvestment Act
(12 U.S.C. § 2901 et seq.) ("CRA"). 8 The CRA requires the federal financial supervisory agencies to
encourage financial institutions to help meet the credit
needs of the local communities in which they operate,
consistent with the safe and sound operation of such
institutions. To accomplish this end, the CRA requires
the appropriate federal supervisory authority to "assess an institution's record of meeting the credit needs
of its entire community, including low- and moderateincome neighborhoods, consistent with the safe and
sound operation of the institution," and to take that
record into account in its evaluation of bank holding
company applications.9

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 Justice Department has stated that the higher-than-normal
HHI thresholds for screening bank mergers for anticompetitive effects
implicitly recognize the competitive effect of limited-purpose lenders
and other non-depository financial institutions.
7. In the Colorado Springs banking market, FBS would become the
fourth largest depository institution, representing 12.5 percent of total
deposits in depository institutions in the market ("market deposits"),
and the HHI would increase by 34 points to 1240. FBS would become
the second largest depository institution in the Denver-Boulder banking market, representing 16.8 percent of market deposits, and the HHI
would increase by 131 points to 954. In the Fort Collins banking
market, FBS would become the fourth largest depository institution,
representing 6.3 percent of market deposits, and the HHI would
decrease by 59 points to 2081. FBS would become the second largest
depository institution in the Grand Junction banking market, representing 23.8 percent of market deposits, and the HHI would increase
by 74 points to 1750. In the Greeley banking market, FBS would
become the fourth largest depository institution, representing 8.0
percent of market deposits, and the HHI would decrease by 34 points
to 1508. FBS would become the sixth largest depository institution in
the Pueblo banking market, representing 13.5 percent of market
deposits, and the HHI would decrease by 13 points to 1593.
8. The Board previously has determined that the CRA by its terms
does not generally apply to applications by bank holding companies to
acquire nonbanking companies under section 4(c)(8) of the BHC Act.
The Mitsui Bank, Ltd., 76 Federal Reserve Bulletin 381 (1990). The
Board also has stated that, unlike other companies that may be
acquired by bank holding companies under section 4(c)(8) of the BHC
Act, savings associations are depository institutions, as that term is
defined in the CRA, and thus, acquisitions of savings associations are
subject to review under the express terms of the CRA. Norwest
Corporation, 76 Federal Reserve Bulletin 873 (1990).
9. 12 U.S.C. § 2903.

950

Federal Reserve Bulletin • December 1992

In connection with these applications, the Board
has reviewed comments received from the Denver
Community Reinvestment Alliance ("Protestant")
regarding the lending activities of the FBS operations
in Denver on the basis of data submitted under the
1990 Home Mortgage Disclosure Act ("HMDA").
Protestant also alleges that FBS Mortgage Corporation ("FBS Mortgage"), a mortgage company subsidiary of FBS, has inadequate outreach and marketing efforts to minority communities in Denver and
that FBS Mortgage denies a greater percentage of
mortgage loans to minorities than to non-minorities
in Denver. 10
The Board has carefully reviewed the CRA performance records of FBS and Bank Western, as well as
Protestant's comments and FBS's responses to those
comments, and all of the other relevant facts, in light
of the CRA, the Board's regulations, and the Statement of the Federal Financial Supervisory Agencies
Regarding the Community Reinvestment Act ("Agency CRA Statement").11
Initially, the Board notes that FBS's lead bank, First
Bank, Minneapolis, Minnesota, received a "satisfactory" rating for CRA performance from its primary
regulator, the Office of the Comptroller of the Currency ("OCC"), in its most recent examination for
CRA performance in January 1991.12 The Agency
CRA Statement provides that a CRA examination is an
important and often controlling factor in the consideration of an institution's CRA record and that these

10. The Board also has considered that the Department of Housing
and Urban Development ( " H U D " ) has been requested by a community group to investigate the lending practices of FBS Mortgage in
Denver. This request was made in early October 1992, and HUD is in
the initial stages of the review of this matter. The Board will monitor
HUD's investigation and will take appropriate action, including supervisory action, if appropriate, following completion of the review by
HUD.
11. 54 Federal Register 13,742 (1989).
12. All of the 24 subsidiary banks of FBS have received an
"outstanding" or a "satisfactory" CRA rating from their primary
regulator in their latest examination for CRA performance with the
exception of Central Bank Grand Junction, Grand Junction, Colorado
("GJ Bank"). GJ Bank, which constitutes less than 1 percent of FBS's
consolidated assets, received a "needs to improve" CRA performance rating from the OCC as of June 1991. Following this examination, GJ Bank promptly undertook a number of steps to address
identified areas of weakness in CRA performance. For example, the
bank has improved its efforts to ascertain community credit needs
through a demographic analysis and community contacts. GJ Bank
also increased its marketing efforts, including to low- and moderateincome communities, through media advertisements, direct mail,
product brochures, telemarketing and realtor calls, and is working
directly with community groups involved in building low-income
housing. In addition, GJ Bank is participating in new lending programs
to meet the needs of its community, such as the Community Enterprise Loan Initiative, a microlending program. On the basis of these
and other facts of record, the Board believes that these initiatives
sufficiently address relevant areas of weakness in GJ Bank's record of
performance under the CRA.

reports will be given great weight in the applications
process.13
Bank Western, which is the insured depository
institution that FBS and CBI propose to acquire,
received a "needs to improve" CRA rating in its most
recent examination by its primary regulatory, the
Office of Thrift Supervision ("OTS"), in May 1992.
FBS has committed to initiate CRA training programs
for Bank Western staff immediately upon consummation of this proposal. In addition, FBS has committed
to institute its corporate CRA policies and programs,
discussed below, at Bank Western upon consummation of this proposal.
FBS Policies and Programs. FBS has a Vice-President for Community Relations that coordinates and
provides support to all community reinvestment efforts within FBS. In addition, FBS has a nine-member
Senior CRA Policy Committee which is charged with
overseeing the overall CRA performance of FBS's
subsidiary banks and resolving any CRA issues that
arise. CBI also has its own full-time Community
Relations Department to oversee FBS's CRA activities in Colorado markets and to provide technical
assistance on CRA matters. CBI will form a Senior
CRA Policy Committee for Colorado.14
Each of the subsidiary banks of FBS has a market
manager whose primary responsibility is developing
and implementing the local community reinvestment
efforts. To assist these market managers, FBS has
developed a Community Reinvestment Evaluation and
Planning Handbook ("CRA Handbook"). The CRA
Handbook requires each of FBS's subsidiary banks to
annually complete a six step CRA planning process
which includes: delineating the bank's community;
evaluating the bank's CRA performance for the prior
year; assessing community needs through community
involvement and analyzing pertinent economic and
demographic information; identifying specific community credit needs, including for low- and moderateincome individuals; developing specific plans for meeting these credit needs, including the development of
products and outreach mechanisms to targeted borrowers; and involving the bank's board of directors in
CRA planning.15
HMDA Data. The Board has reviewed the 1990 and
1991 HMDA data reported by FBS in Denver, and

13. 54 Federal Register at 13,745.
14. Senior managers from Bank Western will also be included in
CBI's Senior CRA Policy Committee for Colorado.
15. Bank Western managers will receive a copy of FBS's CRA
Handbook. FBS will work with Bank Western to develop and implement a written CRA plan for Bank Western for 1993. The CRA plan
will include the six steps set forth above in the CRA planning process
as outlined in the CRA Handbook.

Legal Developments

Protestant's comments regarding these data.16 These
data indicate that loan originations vary for FBS
Mortgage by racial or ethnic group and income level in
Denver.
The Board has evaluated the HMDA data for FBS
Mortgage in light of several factors. First, the Board
notes that FBS serves Denver through a combination
of CBI's subsidiary banks in the Denver area (the
"Central Banks")17 and FBS Mortgage. Thus, the
Board has considered the combined record in Denver
of the Central Banks and FBS Mortgage. Second, the
Board has considered, in light of the generally satisfactory record of FBS, the steps that FBS has committed to take to improve the record of FBS Mortgage
in Denver.
The Board believes that the lending record of FBS
Mortgage must be considered in the context of the
Central Banks lending activities in the Denver area.
For example, the Central Banks provide a number
credit products and services to residents and businesses located in low- and moderate-income and minority communities in Denver. As of year-end 1991,
the Central Banks originated $7.3 million in consumer
loans to consumers from low- and moderate-income
zip codes in the Denver MSA. Central Bank, N.A.
also has outstanding approximately $11.4 million in
loans to minority-owned businesses and approximately $4.4 million in loans to businesses owned by
women. In addition, Central Bank, N.A. has committed to provide $300,000 over a three-year period to the
Cole Coalition, a community development partnership
initiated to help strengthen a low-income neighborhood in Denver. 18 The Central Banks have extended
$500,000 in credit to support the construction of housing for persons with disabilities in the Denver MSA.
In addition, the Central Banks have also recently
introduced the Community Enterprise Lending Initiative ("CELI") to provide technical assistance and
credit to small and emerging businesses. A CELI
Advisory Council that the Central Banks have formed
to discuss the needs of small and emerging businesses
and to assess the effectiveness of the CELI program

16. Depository and mortgage company subsidiaries were required
for the first time in 1990 to report the information regarding both loan
approvals and denials to the banking agencies and the public. This
information includes data on the race, gender and income of individual
applicants, as well as the location of the property securing the
potential loan and the disposition of the application.
17. CBI's lead bank in Colorado, Central Bank, N.A., Denver,
Colorado, received a "satisfactory" CRA rating from its primary
regulator, the OCC, in its most recent examination for CRA performance in May 1991. The examination found no evidence of illegal
discrimination.
18. Senior officers and board members of Central Bank N.A. serve
on the board of directors of several organizations related to community development and affordable housing, including the Capital Hill
Community Center and the Cole Neighborhood Project.

951

includes several key organizations that represent minority communities.19 Central Bank N.A. also has
provided $150,000 in grants to community organizations in 1991, including Colorado Housing Assistance
Corporation, Greater Denver Local Development Corporation, and MiCasa Resource Center for Women.
FBS Mortgage has made 88 mortgage loans to lowand moderate-income areas in Denver totaling approximately $5.7 million in 1991. During 1992 to date, FBS
Mortgage has made 129 loans to low- and moderateincome areas in Denver for a total of approximately
$10.5 million. FBS Mortgage also assists in meeting
the housing-related credit needs of low- and moderateincome residents in Denver by participating in special
programs. For example, FBS Mortgage made 100
loans in Denver, for a total of $4.2 million, in 1991 to
low- and moderate-income persons in connection with
the Colorado Housing Finance Agency ("CHFA").
During 1992 to date, FBS Mortgage has made 78 loans
in Denver, for a total of $3.5 million, in connection
with the CHFA.
FBS Mortgage also has taken a number of steps
designed to improve its record of ascertainment, marketing and lending to minority and low- and moderateincome communities in Denver. For example, FBS
Mortgage has hired a new Community Lending Manager who is responsible for community outreach and
marketing of affordable mortgage programs. FBS
Mortgage is also hiring two additional mortgage originators who will devote their time exclusively to mortgage programs for low- and moderate-income borrowers. In addition, FBS Mortgage and the Central Banks
will convene at least four focus group meetings in the
Denver metropolitan area in 1993 to ascertain community awareness of credit products and services offered
by both the Central Banks and FBS Mortgage and to
solicit feedback on performance.20
FBS Mortgage also has introduced a new mortgage
product, Home Advantage, for first mortgages. The
Home Advantage product was designed with more
flexible underwriting criteria and requires a downpayment of only $1,000, which can be met in several
different ways, including through a secured or unsecured loan. As part of the Home Advantage program,
FBS Mortgage has established a Financial Assistance
Program to assist borrowers in obtaining funds, includ-

19. The Central Banks also offer SBA lending and provide small
business loans through their Mainstreet Credit department. Mainstreet Credit uses simplified application forms and guarantees a
48-hour response after receiving a completed loan application.
20. CBI is planning to conduct a survey in 1993 of all available
publications, including neighborhood newspapers and newspapers
directed to specific ethnic populations, to determine appropriate
vehicles for FBS Mortgage and the Central Banks to reach minority
and low- and moderate-income communities in Colorado.

952

Federal Reserve Bulletin • December 1992

ing through FBS Mortgage, for closing costs, downpayment and property rehabilitation. In connection
with the Home Advantage program, FBS Mortgage
also plans to form partnerships with community organizations and/or government entities in Denver to
provide counseling, help with outreach and provide
feedback on product design.
FBS Mortgage has also introduced a home equity
loan for home improvement with liberalized underwriting criteria. The minimum loan amount under this
program is $2,000, and borrowers may get loans for up
to 100 percent of the equity in their home. In addition,
FBS Mortgage participates as an originator in the
Colorado Housing & Finance Authority 1992 bond
issue, which provides low interest rate mortgage loans
to low- and moderate-income first time homebuyers
throughout Colorado.
Based on a review of the entire record of performance of FBS, including relevant examination reports, the Board believes that the efforts of FBS to
help meet the credit needs of all segments of its
communities, including low- and moderate-income
neighborhoods, are generally consistent with approval
of this proposal. In reaching this conclusion, the Board
has also considered that FBS Mortgage has already
initiated some, and has committed to initiate additional, steps designed to strengthen home mortgage
lending to minority and low- and moderate-income
communities in Denver.
On the basis of all the facts of record, the Board
concludes that convenience and needs considerations,
including the CRA records of FBS and Western Capital, are consistent with approval of these applications.21 The Board expects FBS to implement fully the
CRA initiatives and commitments discussed in this
Order and contained in its application, including the
steps FBS has proposed to improve the lending record
of FBS Mortgage and Bank Western in Denver. FBS's

21. Protestant has requested that the Board hold a public hearing or
meeting to permit Protestant to attempt to elicit additional information
regarding the mortgage lending performance of FBS Mortgage in
Denver and to obtain information on FBS's lending activities relating
to disabled borrowers and to minority-owned small businesses. In
considering this request, the Board has considered that Protestant has
been provided an opportunity to seek information directly from
Applicant and to submit written comments to the Board regarding the
CRA performance of Applicant, and has in fact submitted written
comments regarding its CRA allegations. In addition, in response to
Protestant's request for a meeting with FBS, the Federal Reserve
Bank of Minneapolis moderated an informal meeting on October 20,
1992, as provided for under the Board's Rules of Procedure
(12 C.F.R. 262.25(c)). In light of these facts and all the facts of record
relating to the CRA performance of FBS Mortgage and the Central
Banks in Denver, including relevant examination information and the
steps taken by FBS Mortgage to improve its housing-related lending in
low-and moderate-income areas, the Board believes that a public
hearing or meeting requested would serve no useful purpose or be
required in this case.

progress in implementing these initiatives and commitments will be monitored by the Board and taken into
account in the Board's consideration of future applications by FBS to expand its deposit-taking facilities.
Financial, Managerial and Other

Considerations

The financial and managerial resources of FBS and its
subsidiaries and Western Capital and its subsidiaries
are consistent with approval. In assessing the financial
factors, the Board believes that bank holding companies must maintain adequate capital at savings associations that they propose to acquire. Upon consummation, FBS will meet all applicable capital requirements
and has committed that Bank Western will meet all
current and future minimum capital ratios adopted for
savings associations by the OTS or the FDIC. 22
In considering FBS's acquisition of the nonbanking
activities of Western Capital, the Board notes that
these subsidiaries compete in geographic markets that
are regional or national in scope. These markets are
served by numerous competitors, and FBS does not
have a significant market share in any of these markets. Accordingly, the Board concludes that consummation of this proposal would not have a significant
adverse effect on competition in any relevant market.
FBS has also stated that the proposal will result in an
increase in credit availability and improved services
for customers of Bank Western. The record does not
indicate that consummation of this proposal is likely to
result in any significantly adverse effects, such as
undue concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound banking
practices.
Based upon consideration of all the facts in this
case, the Board has determined that the balance of the
public interest factors it must consider under section
4(c)(8) of the BHC Act is favorable and consistent with
approval of the FBS's applications to acquire Western
Capital. Accordingly, the Board has determined that
the applications should be, and hereby are, approved.
This approval is specifically conditioned on compliance by FBS with all of the commitments made in
connection with these applications and with the conditions referenced in this order. The determinations as
to Western Capital's nonbanking activities are also
subject to all the conditions contained in the Board's
Regulation Y, including those in sections 225.4(d) and
225.23(b)(3) (12 C.F.R. 225.4(d) and 225.23(b)(3)), and
to the Board's authority to require such modification
or termination of the activities of a holding company or

22. For purposes of this commitment, investments in impermissible
real estate projects and developments will be excluded from the
definition of capital.

Legal Developments

any of its subsidiaries as it finds necessary to assure
compliance with, or prevent evasions of, the provisions and purposes of the BHC Act and the Board's
regulations and orders issued thereunder. For purposes of this approval, the commitments and conditions relied on in reaching this decision are both
conditions imposed in writing by the Board and, as
such, may be enforced in proceedings under applicable
law.
The transaction shall not be consummated later than
three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of Minneapolis,
acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 29, 1992.
Voting for this action: Vice Chairman Mullins and Governors Angell, Kelley, LaWare, Lindsey, and Phillips. Absent
and not voting: Chairman Greenspan.
JENNIFER J. JOHNSON

Associate Secretary of the Board

National Westminster Bank PLC
London, England
Order Approving Application to Engage in the
Execution and Clearance of Futures Contracts and
Options on Futures Contracts and Providing
Investment Advice on These Instruments
National Westminster Bank PLC, London, England
("Applicant"), a registered bank holding company,
has applied under section 4(c)(8) of the Bank Holding
Company Act ("BHC Act"), 12 U.S.C. § 1843(c)(8),
and section 225.23(a)(3) of the Board's Regulation Y,
12 C.F.R. 225.23(a)(3), to acquire all of the outstanding shares of Burns Fry Futures, Inc., Chicago, Illinois
("Company"), and, through Company, engage in the
execution and clearance on major commodity exchanges of certain futures contracts and options on
futures contracts as a futures commission merchant
("FCM"), and provide investment advice on these
instruments. The activities would be conducted in the
United States and abroad.
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (57 Federal Register 1185 (1992)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the public interest factors set forth in
section 4(c)(8) of the BHC Act.
Applicant, with total consolidated assets equivalent
to approximately U.S. $229.3 billion, is the 16th larg

953

est banking organization in the world, and provides a
full range of retail and wholesale banking services
worldwide.1 In the United States, Applicant operates
numerous representative offices, branches in New
York and Illinois, an agency in California, and numerous nonbanking subsidiaries engaged in a variety of
activities. Applicant also controls NatWest Holdings,
Inc., New York, New York, and its subsidiaries,
National Westminster Bank USA, New York, New
York, and National Westminster Bank NJ, Jersey
City, New Jersey. Applicant engages in various activities in the United States under section 4(c)(8) of the
BHC Act.
Company is a wholly owned subsidiary of Burns Fry
Limited, Toronto, Canada, and is registered with the
Commodity Futures Trading Commission ("CFTC")
as a futures commission merchant ("FCM"). Company engages in the execution and clearance of futures
contracts and options on futures contracts set forth in
the Appendix and provides related investment advice
on these instruments.
The Board has previously determined by regulation
that the execution and clearance of futures contracts
and options on futures contracts for a variety of
financial instruments, and providing advisory services
with respect to such futures contracts are activities
that are closely related to banking.2 The Board by
Order has previously approved the execution and
clearance of, and the provision of advisory services
with respect to, all the specific futures contracts,
options thereon, and exchanges in this proposal, except the Nikkei Stock Average traded on the Chicago
Mercantile Exchange.3 The Nikkei Stock Average is
essentially identical to instruments previously approved by the Board.4 Based on the facts of record,
the Board concludes that the proposed activities,
including trading Nikkei Stock Average futures contracts and options thereon on the Chicago Mercantile
Exchange, are closely related to banking.

1. Asset data are as of December 31, 1991. Ranking is as of
December 31, 1990.
2. 12 C.F.R. 225.25(b)(18) and (la).
3. See, e.g., The Sanwa Bank, Limited, 77 Federal Reserve Bulletin
64 (1991); Chemical Banking Corporation, 76 Federal Reserve Bulletin 660 (1990); The Long-Term Credit Bank of Japan, Limited, 76
Federal Reserve Bulletin 554 (1990); The Long-Term Credit Bank of
Japan, Limited, 74 Federal Reserve Bulletin 573 (1988); The Chase
Manhattan Corporation, 72 Federal Reserve Bulletin 203 (1986).
4. The Nikkei Stock Average futures contract is a broad based bond
index that has been approved by the Board on the Singapore International Monetary Exchange. The Board has also approved several
futures contracts and options thereon traded on the Chicago Mercantile Exchange. See Chemical Banking Corporation, supra, and orders
cited therein. The Board also notes that in conducting investment
advisory activities related to this instrument, an FCM is subject to
regulation under the Commodity Exchange Act and the regulations of
the CFTC as a registered advisor.

954

Federal Reserve Bulletin • December 1992

Under section 4 of the BHC Act, the Board is also
required to determine that the performance of the
proposed activities by Applicant "can reasonably be
expected to produce benefits to the public . . . that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair competition, conflicts of interests, or unsound banking
practices." 12 U.S.C. § 1843(c)(8).
In cases involving a nonbanking acquisition by a
bank holding company under section 4 of the BHC
Act, the Board considers the financial condition and
resources of the applicant and its subsidiaries and the
effect of the transaction on these resources.5 In this
case, the proposed activities will require a direct de
minimis capital investment by Applicant. The Board
also has considered Applicant's record of financial
support to its U.S. operations to be an important
factor in assessing this proposal. Based on all the facts
of record, the Board concludes that the financial and
managerial resources of Applicant are consistent with
approval. There is no evidence in the record that
consummation of the proposal would result in any
significant adverse effects such as undue concentration
of resources, decreased or unfair competition, conflicts of interests, or unsound banking practices. In
addition, the Board has taken into account and has
relied on the regulatory framework established pursuant to law by the CFTC for the trading of futures, as
well as the conditions set forth in section 225.25(b)(18)
of Regulation Y with respect to executing and clearing
futures contracts and options on futures contracts, and
in section 225.25(b)(19) of Regulation Y with respect to
the provision of investment advice as a FCM as to
futures contracts or options thereon. Based on consideration of all the relevant facts, the Board concludes
that the balance of the public interest factors that it is
required to consider under section 4(c)(8) is favorable.
Based on all the facts of record, and subject to the
commitments made by Applicant, as well as all of the
terms and conditions set forth in this order and in the
above noted Board orders that relate to these activities, the Board has determined that the application
should be, and hereby is, approved. The Board's
determination is also subject to all of the conditions set
forth in Regulation Y, including those in sections
225.4(d) and 225.23(b), and to the Board's authority to
require modification or termination of the activities of
a bank holding company or any of its subsidiaries as
the Board finds necessary to assure compliance with,
and to prevent evasion of, the provisions of the BHC
Act and the Board's regulations and orders issued

5. 12 C.F.R. 225.24; The Fuji Bank, Limited, 75 Federal Reserve
Bulletin 94 (1989); Bayerische Vereinsbank AG, 73 Federal Reserve
Bulletin 155, 156 (1987).

thereunder. The commitments and conditions relied
on in reaching this decision are conditions imposed in
writing by the Board in connection with its findings
and decision and may be enforced in proceedings
under applicable law.
This transaction shall not be consummated later
than three months after the effective date of this order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of New York,
pursuant to delegated authority.
By order of the Board of Governors, effective
October 7, 1992.
Voting for this action: Chairman Greenspan and Governors
Mullins, Kelley, LaWare, Lindsey, and Phillips. Absent and
not voting: Governor Angell.
JENNIFER J. JOHNSON

Associate Secretary of the Board

Appendix
Chicago Board of Trade
Major Market Index futures contract1
Bond Buyer Municipal Board Index futures contract2
Long-Term Municipal Bond Index futures contract3
Chicago Mercantile Exchange
Standard & Poor's 500 Stock Price Index futures
contract ("S&P 500")4
Options on the S&P 5005
Financiele Termijnmarkt Amsterdam NV
Dutch Government Bond Index futures contract6
Hongkong Futures Exchange Limited
Hang Seng Stock Index futures contracts7
Kansas City Board of Trade
Value Line Futures (Maxi) Index futures contract8

1. Hongkong and Shanghai Banking Corporation, 76 Federal Reserve Bulletin 770 (1990) ("Hongkong and Shanghai").
2. Id.
3. Id.
4. Chemical Banking Corporation, 76 Federal Reserve Bulletin 660
(1990) ("Chemical").
5. Id.
6. Hongkong and Shanghai.
1. Id.
8. Id.

Legal Developments

Value Line Futures (Mini) Index futures contract9

955

Saban, S.A.
Panama City, Panama

London International Financial Futures Exchange
Financial Times-Stock Exchange 100 Index
("FT-SE 100")10
FT-SE 100 futures contracts and options thereon11
Options on foreign exchange12
UK Bond futures contracts13
Eurodollar and Sterling deposit interest rate futures
contracts14
Marche a Terme d'Instruments Financiers
French Government Bond Index futures contracts15
New York Futures Exchange
New York Stock Exchange Composite Index
("NYSECI") 16
Options of the NYSECI 17
Singapore International Monetary Exchange
Nikkei 225 futures contract18
Sydney Futures Exchange
All Ordinaries Share Index futures contracts19
Australian Government Bond futures contracts20
Tokyo Stock Exchange
Tokyo Stock Price Index futures contracts21
Japanese Government Bond futures contracts22

9. id.
10. Chase Manhattan Corporation, 72 Federal Reserve Bulletin 203
(1986).
11. Id.
12. Hongkong and Shanghai.
13. Id.
14. Id.
15. Id.
16. Id.
17. Id.
18. Id.
19. Id.
20. Id.
21. Id.
22. Id.

Republic New York Corporation
New York, New York
Order Approving Application to Engage in Various
Securities-Related Activities, Including Acting as a
"Conduit" in Securities Borrowing and Lending
Saban, S.A., Panama City, Panama ("Saban"), and its
subsidiary, Republic New York Corporation, New
York, New York ("Republic")(together, the "Applicant"), have applied pursuant to section 4(c)(8) of the
Bank Holding Company Act (12 U.S.C. § 1843(c)(8))
("BHC Act") and section 225.23(a) of the Board's
Regulation Y (12 C.F.R. 225.23(a)), for prior approval
to engage de novo, on a domestic and international
basis, through the Applicant's wholly owned subsidiary, Republic New York Securities Corporation, New
York, New York ("Company"), in the following activities:
(1) Providing investment advisory services and financial advisory services, including advice regarding mergers, acquisitions, and capital raising proposals by institutional customers, pursuant to
section 225.25(b)(4) of Regulation Y;
(2) Providing securities brokerage services on an
individual basis as well as in combination with
investment advisory services ("full-service brokerage"), including exercising limited investment discretion on behalf of institutional customers;
(3) Purchasing and selling all types of securities on
the order of institutional and retail customers as a
"riskless principal;" and
(4) Engaging in securities credit activities under the
Board's Regulation T, pursuant to section
225.25(b)(15)of Regulation Y, including acting as a
"conduit" or "intermediary" in securities borrowing and lending.
Notice of the application, affording interested persons an opportunity to submit comments, has been
duly published (57 Federal Register 2098 (1992)). The
time for filing comments has expired, and the Board
has considered the application and all comments received in light of the factors set forth in section 4(c)(8)
of the BHC Act.
Republic, with $32.2 billion in total consolidated
assets, is the 11th largest commercial banking organization in New York State.1 Republic operates one

1. Asset data are as of March 31, 1992.

956

Federal Reserve Bulletin • December 1992

subsidiary bank and one subsidiary savings bank in
New York, and engages directly and through its subsidiaries in a broad range of permissible nonbanking
activities throughout the United States.
Saban is organized under the laws of Panama and
operates a branch office in Gibraltar and a second-tier
holding company in Luxembourg. These jurisdictions
have laws limiting the disclosure of business or banking information.
To address the Board's concerns about issues
arising from the operations of foreign companies that
operate banking organizations in the United States,
Saban and its principal shareholder have exercised
their right to waive certain provisions of foreign
secrecy laws and have made various commitments
designed to enable the Board to have ready and
complete access to the books and records of Saban
and its affiliates, and to monitor the operations of
Saban and its affiliates in the same manner that the
Board inspects and monitors the activities of domestic banking organizations. Among other commitments, Saban and its principal shareholder each have
committed:
(1) To submit to personal jurisdiction in the U.S.
with respect to all aspects of enforcement of U.S.
banking laws, and have exercised their rights to
waive certain defenses to assertions of personal
jurisdiction over Saban and its principal shareholder
in the U.S.;
(2) To appoint a registered agent in the U.S. acceptable to the Board for service of process; and
(3) To permit the Board at any time to inspect books
and records of Saban and its subsidiaries, as well as
the companies controlled by this shareholder.
Local counsel in relevant jurisdictions have given
opinions that local law would not prevent access to
books and records of these companies under these
circumstances. The Board believes that these steps are
important in order to ensure that the Board has access
to relevant information necessary to monitor compliance with the banking laws and to ensure that the
location of an applicant or affiliate in a foreign jurisdiction does not impede the Board's ability to enforce
compliance with applicable U.S. banking laws.
The Board previously has determined by regulation
that engaging in the proposed:
(1) Investment advisory and financial advisory services, including providing advice regarding mergers,
acquisitions, and capital raising proposals by institutional customers; and
(2) Securities brokerage activities, including full-service brokerage and exercising limited investment
discretion on behalf of institutional customers, are

closely related to banking under section 4(c)(8) of
the BHC Act. 2
Applicant has committed that Company will conduct
these activities in accordance with the conditions and
limitations set forth in Regulation Y. 3
"Riskless principal" is the term used in the securities business to refer to a transaction in which a
broker/dealer, after receiving an order to buy (or sell)
a security from a customer, purchases (or sells) the
security for its own account to offset a contemporaneous sale to (or purchase from) the customer.4 Riskless
principal transactions are understood in the industry to
include only transactions in the secondary market.
Applicant thus proposes that Company would not sell
securities at the order of a customer that is the issuer
of the securities to be sold or in any transaction where
Company has a contractual agreement to place the
securities as agent of the issuer. In acting as a riskless
principal, Company also would not engage in any
transaction involving a security for which it makes a
market.
The Board previously has determined by order that,
subject to certain prudential limitations that address
the potential for conflicts of interests, unsound banking practices or other adverse effects, the proposed
riskless principal activities are so closely related to
banking as to be a proper incident thereto within the
meaning of section 4(c)(8) of the BHC Act. The Board
also has determined that purchasing and selling securities on the order of investors as a riskless principal
does not constitute underwriting and dealing in securities for purposes of section 20 of the Glass-Steagall
Act, and that revenue derived from this activity is not
subject to the 10 percent revenue limitation on ineligible securities underwriting and dealing. Applicant has
committed that Company will conduct its riskless
principal activities using the same methods and procedures, and subject to the same prudential limitations
established by the Board in the Bankers Trust and J.P.
Morgan orders.5
2. See 12 C.F.R. 225.25(b)(4), (b)(15).
3. See id. Company will provide discretionary investment management for institutional customers only, in accordance with the provisions of sections 225.2(g) and 225.25(b)(15)(ii) of Regulation Y.
4. See Securities and Exchange Commission Rule 10b-10(a)(8)(i)
(12 C.F.R. 240.10b-10(a)(8)(i)).
5. Bankers Trust New York Corporation, 75 Federal Reserve
Bulletin 829 (1989) ("Bankers Trust"); J.P. Morgan and Company,
Inc., 76 Federal Reserve Bulletin 26 (1990) ("J.P. Morgan"). As
detailed more fully in those orders, in addition to the commitments
imposed by the Board in connection with underwriting and dealing in
securities, Company will maintain specific records that will clearly
identify all riskless principal transactions, and Company will not
engage in any riskless principal transactions for any securities carried
in its inventory. When acting as a riskless principal, Company will
only engage in transactions in the secondary market, and not at the

Legal Developments

Acting as a Conduit in Securities Borrowing and
Lending
As part of its securities brokerage activities, Applicant
proposes that Company engage in securities credit
activities under the Board's Regulation T, 6 including
engaging in securities borrowing and lending activities.
Regulation T, which restricts the extent to which securities broker/dealers may obtain and extend credit,
permits securities borrowing and lending transactions
by broker/dealers if these activities are conducted "for
the purpose of making delivery of the securities in the
case of short sales, failure to receive securities required
to be delivered, or other similar situations."7
The Board previously has permitted a bank holding
company subsidiary to engage, as part of its securities
brokerage activities, in lending and borrowing securities that the bank or bank holding company holds on
behalf of customers.8 In addition, banks and bank
holding companies are permitted to borrow and lend
securities held in their own portfolios.9
In this case, Applicant also proposes that Company
borrow and lend the securities of non-customer third
parties. Company would seek out counterparties to
securities borrowing and lending transactions and
would assume much the same risk in these transactions as if Company were borrowing or lending its own
securities or its customers' securities. In this capacity,
Company would act as a "conduit" or "intermediary"
in securities borrowing and lending. Company would
supply—upon the request of another broker/dealer
who is unable to obtain securities needed to satisfy
customer investment or operational needs—securities
not available in Company accounts or customer accounts by seeking out third party non-customer lenders. In addition to locating the securities, Company
proposes to coordinate, on behalf of the borrower and

order of a customer that is the issuer of the securities to be sold, will
not act as riskless principal in any transaction involving a security for
which it makes a market, nor hold itself out as making a market in the
security that it buys and sells as a riskless principal. Moreover,
Company will not engage in riskless principal transactions on behalf of
its foreign affiliates that engage in securities dealing activities outside
the United States.
6. See 12 C.F.R. 225.25(b)(15).
7. See 12 C.F.R. 220.16.
8. See The Chase Manhattan Corporation, 69 Federal Reserve
Bulletin 725 (1983) ("Chase Manhattan"). The Board found that
securities borrowing and lending is closely related to banking and
incidental to permissible discount securities brokerage activities and the
extension of margin credit under Regulation T. See also Canadian
Imperial Bank of Commerce, 74 Federal Reserve Bulletin 571, 572 n.l
(1988).
9. See the Federal Financial Institutions Examination Council's
("FFIEC") Supervisory Policy Statement on Securities Lending,
F.R.R.S. § 3-1579.5 (1985) (articulating guidelines for securities
lending activities of banks).

957

lender, the exchange of securities and collateral necessary to the transaction.10
In order to approve an application submitted pursuant to section 4(c)(8) of the BHC Act, the Board is
required to determine that the proposed activity is "so
closely related to banking as to be a proper incident
thereto." 12 U.S.C. § 1843(c)(8).

Closely Related!Proper Incident to Banking
Analysis
A. Closely Related to Banking Analysis
Under the National Courier test, the Board may find
that an activity is closely related to banking for purposes of section 4(c)(8) if banks generally:
(1) Conduct the proposed activity;
(2) Provide services that are operationally or functionally so similar to the proposed activity as to
equip them particularly well to provide the proposed
services; or
(3) Provide services that are so integrally related to
the proposed service as to require their provision in
a specialized form.11
The Board believes that banks generally perform
services that are operationally or functionally so similar
to the proposed conduit services as to equip them
particularly well to provide these services. In particular, the proposed conduit activity is operationally and
functionally similar to the securities borrowing and
lending activities banks conduct. Currently, national
and state banks are permitted to lend securities from
their own portfolio and, with the customer's consent,
from the accounts of customers, and banks regularly do
borrow securities to meet their own needs and the
needs of customers.12 The substitution of a third party
in place of a trust or other customer of a bank does not
change significantly the way in which the securities
lending activity is conducted, either operationally or

10. Company will coordinate this exchange through accounts established at the Depository Trust Company ("DTC"), a privately-held
national clearinghouse for the settlement of transactions in corporate
and municipal securities. Once Company has located the desired
securities, the securities will be transferred to an account maintained
by Company at DTC and simultaneously delivered to an account of
the borrower at DTC. At the same time, the borrower must post
collateral which Company will receive into its DTC account and
simultaneously deliver to an account maintained by the lender at
DTC.
11. See National Courier Association v. Board of Governors, 516
F.2d 1229, 1237 (D.C. Cir. 1975)("National Courier")- The Board
may also consider any other factor that an applicant may advance to
demonstrate a reasonable or close connection or relationship to
banking. 49 Federal Register 794, 806 (1984); Securities Industry
Ass'n v. Board of Governors, 468 U.S. 207, 210-11 n.5.
12. See supra note 9.

958

Federal Reserve Bulletin • December 1992

functionally. The same steps and procedures necessary
to effectuate the loan of a customer's securities are
followed in loaning the securities of a non-customer
third party.
The risk associated with the proposed conduit activity is substantially the same risk that a bank must
manage in lending securities from its own portfolio or
the portfolio of a customer. The risk to Company in
acting as a conduit is limited to ensuring that the
collateral posted by the borrower reflects continuously
the market value of the securities loaned. Company
has committed to mark this collateral to market on a
daily basis and make calls for supplemental collateral
where necessary. 13 Company also has represented that
it will not provide any indemnification to non-customer third party lenders of securities.
For these reasons, the Board believes that the
proposed conduit activity is closely related to banking
for purposes of section 4(c)(8) of the BHC Act.

B. Proper Incident to Banking Analysis
In determining whether an activity is a proper incident
to banking, the Board must consider whether the activity "can reasonably be expected to produce benefits to
the public, such as greater convenience, increased
competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of
interests, or unsound banking practices."
1. Public Benefits. Applicant maintains that performing the proposed conduit activity through Company will
provide competition to the relatively few institutions in
the United States that engage in this activity. Additionally, the de novo participation of Company in this
activity should promote the efficient operation of the
securities market by facilitating the completion of short
sales and the satisfaction of the operational needs of
broker/dealers in the market. Acting as a conduit in
securities borrowing and lending also will provide
greater convenience both to Company's customers and
to other participants in the securities markets. In this
regard, Company maintains that its ability to borrow
securities for its own or its customers' accounts will be

13. If the price of the borrowed securities increases, the borrower is
required under Regulation T to provide additional collateral to Company, which in turn through transactions at DTC, passes the collateral
to the initial lender of the securities. In the event the borrower is
unable to meet this requirement, Company will have the contractual
right to terminate the borrowing transaction by purchasing the securities in the open market and delivering them to the lender, who will
then be obligated to return the borrower's collateral to Company.
Because the borrowed securities will be marked to market by Company daily, the maximum exposure to Company in directly or indirectly borrowing or lending securities is one day's movement in the
price of the borrowed securities.

significantly enhanced if it has developed a role in the
marketplace as an intermediary.
2. Adverse Effects. Applicant contends that acting
as a conduit in securities borrowing and lending poses
the risks to Company that:
(1) The borrower will not replace the securities
loaned;
(2) The lender of the securities will not return the
collateral posted by the borrower; and
(3) The collateral posted by the borrower will not
cover sufficiently the value of the securities borrowed.
These risks are the same as the risks inherent in
engaging in securities borrowing and lending involving
customer securities or securities in the lending company's portfolio.14
To minimize risk, Company would act as a conduit
only in situations where the potential borrower and
lender are matched before the transaction.15 In addition, Company will take various measures to minimize
operational risks, including conducting its conduit activities in accordance with the collateral requirements
imposed on the borrowers of securities by Regulation
T.16 At the end of each day, Company will mark to
market the collateral posted by the borrower in all
transactions in which Company has loaned securities or
acted as an intermediary for a lender. Company also
proposes to establish credit guidelines for potential
borrowers and lenders,17 and Applicant has committed
that Company's conduit activities will comply, in all
regards, with the guidelines, as applicable, set forth in

14. In a 1947 Board interpretation of the parameters of securities
borrowing and lending under Regulation T, the Board acknowledged
that Regulation T does not require that securities be borrowed only
from the customer accounts or portfolio of the broker/dealer lending
the securities: "The present language of the provision does not require
that the delivery for which the securities are borrowed must be on a
transaction which the borrower has himself made, either as agent or as
principal; he may borrow under the provision in order to relend to
someone else for the latter person to make such a delivery." 33
Federal Reserve Bulletin 981 (1947).
15. A conduit transaction would only commence when a broker/
dealer needing to borrow securities approaches Company. Company
has committed that it will not, under any circumstances, borrow
securities in anticipation of a transaction.
16. Applicant has committed that the Board's Regulation T—
requiring that all securities borrowing and lending transactions be
collateralized by at least 100 percent of the value of the securities as
computed on a daily basis—shall be Company's minimum guideline
for posting collateral, and that Company will require many transactions to be collateralized in excess of 100 percent of the value of the
securities marked-to-market.
17. These credit policies will include a review of all lenders and
borrowers and the establishment of a credit committee which will
determine limits on the credit exposure of any single borrower.
Applicant proposes that Company will transact its business only with
a select group of well-capitalized broker/dealers—most of which are
members of the New York Stock Exchange—that will not be brokerage customers of Company.

Legal Developments

the FFIEC Supervisory Policy Statement on Securities
Lending.18
Based on all the facts of record, including the
termsand conditions under which the Applicant proposes to conduct these activities, the Board believes
that Company's engaging in the proposed conduit
activity is not likely to result in significantly adverse
effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of interests,
or unsound banking practices that would outweigh the
public benefits of Applicant's proposal, such as greater
convenience, increased competition or gains in efficiency. 19
Other

Considerations

The financial and managerial resources of Applicant
and Company also are consistent with approval of this
application. The record also indicates that the conduct
of all of the activities that Applicant has applied to
conduct through Company can reasonably be expected
to produce public benefits that outweigh the possible
adverse effects associated with this proposal. In particular, the de novo entry of Company into the markets for
all of these services should increase competition among
the providers of these services. Thus, based on consideration of all the relevant facts, the Board concludes
that the balance of the public interest factors that it is
required to consider under section 4(c)(8) is favorable.
Accordingly, based on all the facts of record, and
subject to all the conditions and commitments in this
Order, the Board has determined that the proposed
application should be, and hereby is, approved.
Approval of this proposal is specifically conditioned
on compliance by Applicant and its principal shareholder and Company with the commitments made in
connection with this application, as supplemented, and
with the conditions referenced in this Order and in

18. In addition to establishing credit policies and a credit committee,
Company has committed that it will institute written policies and
procedures prescribed by the FFIEC, which include, among other
provisions, the establishment of:
(1) An adequate record-keeping system;
(2) Administrative procedures for marking securities to market and
making timely margin calls;
(3) Collateral requirements and procedures; and
(4) Written guidelines for selecting investments for cash collateral
where third party securities are loaned, and providing for written
agreements with both borrowers and lenders of securities.
19. Company would not be involved in making any public offering of
new securities as agent for an issuer, and thus, Company would not be
engaged in underwriting. Moreover, Company would not be involved
in the public sale of securities or in acting as a dealer for its own
account in buying or selling securities. Instead, Company would be
limited to borrowing or lending securities in transactions that do not
involve the sale or distribution of securities. For these and other
reasons, the proposed conduit activity does not appear to be prohibited by the Glass-Steagall Act.

959

previous Board orders. The Board's determination also
is subject to all of the conditions set forth in Regulation
Y, including those in sections 225.4(d) and 225.23(b),
and to the Board's authority to require modification or
termination of the activities of a bank holding company
or any of its subsidiaries as the Board finds necessary to
assure compliance with, and to prevent evasion of, the
provisions of the BHC Act and the Board's regulations
and orders issued thereunder. For purposes of this
action, these commitments and conditions are both
considered conditions imposed in writing by the Board
in connection with its findings and decision and, as
such, may be enforced in proceedings under applicable
law. This transaction shall not be consummated later
than three months after the effective date of this Order,
unless such period is extended for good cause by the
Board or by the Federal Reserve Bank of New York,
pursuant to delegated authority.
By order of the Board of Governors, effective
October 9, 1992.
Voting for this action: Chairman Greenspan and Governors
Mullins, Kelley, LaWare, Lindsey, and Phillips. Absent and
not voting: Governor Angell.
WILLIAM W . WILES

Secretary of the Board

ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT
INSURANCE CORPORATION IMPROVEMENT ACT

By the Board
Citizens Bancshares of Marysville, Inc.
Marysville, Kansas
Order Approving Conversion Transaction through
Merger Pursuant to Section 5(d)(3) of the Federal
Deposit Insurance Act
Citizens Bancshares of Marysville, Inc., Marysville,
Kansas ("Citizens"), a bank holding company within
the meaning of the Bank Holding Company Act, has
applied pursuant to section 5(d)(3)(A)(ii) of the Federal
Deposit Insurance Act ("FDI Act") (12 U.S.C.
§ 1815(d)(3)(A)(ii)) to acquire and assume, through its
subsidiary The Citizens State Bank of Marysville,
Marysville, Kansas ("Bank"), a state non-member
bank, certain assets and liabilities of the Marysville,
Kansas, branch of First Savings Bank, F.S.B., Manhattan, Kansas ("First Savings Branch").1 Section

1. This transaction also is subject to approval by the Federal
Deposit Insurance Corporation ("FDIC") under the FDI Act and the

960

Federal Reserve Bulletin • December 1992

5(d)(3) of the FDI Act requires the Board to approve the
transfer of such assets and liabilities to a bank holding
company's subsidiary bank that is a Bank Insurance
Fund member and to follow the procedures and consider the factors set forth in the Bank Merger Act
(12 U.S.C. § 1828(c)).2
Notice of the application, affording interested persons an opportunity to submit comments, has been
given in accordance with the Bank Merger Act. As
required by the Bank Merger Act, reports on the
competitive effects of the proposal were requested from
the United States Attorney General, the Office of the
Comptroller of the Currency ("OCC"), and the FDIC.
The time for filing comments has expired, and the
Board has considered the application and all the comments received in light of the factors set forth in the
Bank Merger Act and section 5(d)(3) of the FDI Act.
Citizens is the 70th largest commercial banking
organization in Kansas, controlling deposits of
$73.8 million, representing less than 1 percent of total
deposits in commercial banks in the state.3 Upon
acquiring First Savings Branch, Citizens would assume deposits of $15 million, and would become the
51st largest commercial banking organization in Kansas, controlling deposits of $88.8 million, representing
less than 1 percent of total deposits in commercial
banks in the state.4
Citizens and First Savings Branch compete in the
Marshall County, Kansas, banking market.5 Citizens
is the largest commercial banking or thrift organization
(together, "depository institution") in the market,
controlling deposits of $73.8 million, representing approximately 29 percent of total deposits in depository
institutions in the market ("market deposits").6 Con-

Bank Merger Act, and the FDIC has approved this proposal. See
12 U.S.C. §§ 1815(d)(3)(A)(i) and 1828(c).
2. These factors include considerations relating to competition, the
financial and managerial resources and future prospects of the existing
and proposed institutions, and the convenience and needs of the
communities to be served. 12 U.S.C. § 1828(c).
3. Bank deposit data are as of December 31, 1991. Thrift deposit
data are as of June 30, 1991.
4. First Savings Branch currently controls $38.2 million in deposits.
Citizens has committed that Bank will not assume deposits or acquire
assets from First Savings Branch in an amount greater than
$15 million.
5. The Marshall County, Kansas, banking market is approximated
by Marshall County, Kansas.
6. In this context, depository institutions include commercial banks,
savings banks and savings associations. Market share data are based
on calculations in which the deposits of thrift institutions are included
at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, major competitors of commercial banks. See WM Bancorp, 76 Federal Reserve
Bulletin 788 (1990); Midwest Financial Group, 75 Federal Reserve
Bulletin 386 (1989); National City Corporation, 70 Federal Reserve
Bulletin 743 (1984). Because the assumed deposits would be controlled
by a commercial banking organization under Citizens' proposal, those
deposits are included at 100 percent in the calculation of its pro forma
market share. See Norwest Corporation, 78 Federal Reserve Bulletin

sidered as a thrift institution with its deposits weighted
at 50 percent, the portion of First Savings Branch to be
acquired would constitute the seventh largest depository institution in the market, holding deposits representing approximately 3 percent of market deposits.
Upon consummation of the proposed transaction, Citizens would control deposits of $88.8 million, representing approximately 36 percent of market deposits.
The Herfindahl-Hirschman Index ("HHI") would increase by 395 points to 2224.7
A number of characteristics of the Marshall County
banking market indicate that the increase in concentration levels as measured by the HHI for this market
overstates the effect of this proposal on competition in
the market. First, the market has experienced a significant economic decline in recent years. Marshall
County is a rural county in northeastern Kansas on the
Nebraska border that has experienced a population
decrease of 9.3 percent to 11,600 between 1980 and
1990. During the same period, Kansas as a whole
experienced a population increase of 5.4 percent. There
is currently one depository institution competitor for
every 967 residents in the market, a ratio that is more
than three times greater than the average for this ratio
statewide in Kansas. Moreover, per capita income in
the market is approximately 78 percent of the state
average. Banking organizations in the Marshall County
banking market experience below-average profitability,
with an average return on assets of less than 1 percent
in 1991, which is approximately 15 percent below the
average in Kansas.8 These and other facts of record
regarding the market suggest that the ability of the
Marshall County banking market to support a large
number of competitors has deteriorated.9
The Board also notes that eleven depository institutions would continue to operate in the market after
consummation of this proposal, and the second largest
depository institution in the market would control ap-

452 (1992); First Banks, Inc., 76 Federal Reserve Bulletin 669, 670
n. 9 (1990).
7. Under the revised Department of Justice Merger Guidelines,
49 Federal Register 26,823 (1984), a market in which the post-merger
HHI is above 1800 is considered to be highly concentrated. In such
markets, the Justice Department is likely to challenge a merger that
increases the HHI by more than 50 points. The Department of Justice
has informed the Board that, as a general matter, a bank merger or
acquisition 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 200 points. The Justice
Department has stated that the higher-than-normal HHI thresholds for
screening bank mergers for anticompetitive effects implicitly recognize the competitive effect of limited-purpose lenders and other
non-depository financial entities.
8. Data are based on financial reports submitted by Kansas financial
institutions and the Rand McNally Commercial Atlas and Marketing
Guide (1992).
9. See, e.g., First Formoso, Inc., 76 Federal Reserve Bulletin 541
(1990).

Legal Developments

proximately 27 percent of market deposits. The Board
also has considered that the sale of First Savings
Branch will assist First Savings Bank, F.S.B., to increase its capital ratios and that there does not appear
to be an alternative purchaser.
The United States Attorney General has indicated
that the proposal would not have a significantly adverse effect on competition in any relevant banking
market. The FDIC has approved this proposal pursuant to the FDI Act and the Bank Merger Act. The OCC
has not objected to consummation of this proposal or
indicated that the proposal would have any significant
adverse competitive effects.
Based on these and other facts of record, the Board
has determined that consummation of this proposal is
not likely to result in a significantly adverse effect on
competition in the Marshall County banking market or
any other relevant banking market.
The financial and managerial resources and future
prospects of Citizens and Bank are consistent with
approval of this proposal. Considerations relating to
the convenience and needs of the communities to be
served, and the other factors the Board must consider
under provisions of the Bank Merger Act, also are
consistent with approval.
Moreover, the record in this case shows that:
(1) The transaction will not result in the transfer of
any federally insured depository institution's federal
deposit insurance from one federal deposit insurance fund to the other;
(2) Citizens and Bank currently meet, and upon
consummation of the proposed transaction will continue to meet, all applicable capital standards; and

961

(3) Since Bank is located in Kansas and is acquiring
certain assets and assuming certain liabilities of a
Kansas branch office of a federal savings bank, the
proposed transaction would comply with the Douglas
Amendment if First Savings Bank, F.S.B., were a
state bank which Citizens were applying to acquire
directly. See 12 U.S.C. § 1815(d)(3)(E) and (F).
Based on the foregoing and other facts of record, the
Board has determined that the application should be,
and hereby is, approved. This approval is specifically
conditioned upon compliance by Citizens with all of
the commitments made in connection with this application, and these commitments have been relied on in
reaching this decision. For the purpose of this action,
these commitments will be considered 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
shall not be consummated before the thirtieth calendar
day following the effective date of this Order, or later
than three months after the effective date of this
Order, unless such period is extended for good cause
by the Board or by the Federal Reserve Bank of
Kansas City, acting pursuant to delegated authority.
By order of the Board of Governors, effective
October 19, 1992.
Voting for this action: Chairman Greenspan and Governors
Mullins, Angell, Kelley, LaWare, Lindsey, and Phillips.
JENNIFER J. JOHNSON

Associate Secretary of the Board

ACTIONS TAKEN UNDER THE FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT
ACT OF 1991

By the Director of the Division of Banking Supervision and Regulation and the General Counsel
of the Board
Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of
Governors of the Federal Reserve System, Washington, D.C. 20551.

Bank Holding Company
BW3 Bancorporation,
West Des Moines, Iowa
Citizens Bancshares of Eldon,
Inc.,
Eldon, Missouri

Acquired
Thrift
Midland Savings Bank,
F.S.B.,
Des Moines, Iowa
United Savings and Loan
Association,
Lebanon, Missouri

Surviving
Bank(s)
Liberty Bank &
Trust, NA,
Fonda, Iowa
Citizens Bank of
Eldon,
Eldon, Missouri

Approval
Date
September 25, 1992

October 8, 1992

962

Federal Reserve Bulletin • December 1992

Actions taken—Continued
Bank Holding Company

Acquired
Thrift

First Fidelity Bancorporation,
Lawrenceville, New Jersey

The Howard Savings
Bank,
Newark, New Jersey

Mid Am, Inc.,
Bowling Green, Ohio

The Citizens Loan and
Building Company,
Lima, Ohio
Home Savings of
America, F.S.B.,
Irwindale, California
Colony Bank
Clearwater, Florida

Mid Am, Inc.,
Bowling Green, Ohio
SouthTrust Corporation,
Birmingham, Alabama
SouthTrust of Florida Inc.
Jacksonville, Florida

Surviving
Bank(s)
First Fidelity Bank,
N.A., New Jersey,
Newark, New
Jersey
The Farmers Banking
Company N.A.,
Lake view, Ohio
The Farmers Banking
Company N.A.,
Lake view, Ohio
SouthTrust Bank of
West Florida,
St. Petersburg,
Florida

Approval
Date
October 2, 1992

September 25, 1992

October 2, 1992

October 30, 1992

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)
Security Capital Bancorp,
Salisburg, North Carolina

Bank(s)
OMNIBANK, Inc., A State Savings
Bank, SSB,
Salisbury, Maryland
Citizens Savings, Inc., SSB
Concord, North Carolina
Home Savings Bank, Inc., SSB
Kings Mountain,
North Carolina

Effective
Date
October 30, 1992

Legal Developments

By Federal Reserve

963

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)
ABC Bancorp,
Moultrie, Georgia
Acquisition Corporation,
Leawood, Kansas
Bellwood Community Holding
Company,
Bellwood, Nebraska
Boatmen's Bancshares, Inc.,
St. Louis, Missouri
Boatmen's Bancshares, Inc.,
St. Louis, Missouri
BOK Financial Corporation,
Tulsa, Oklahoma

Carrollton Bancshares
Corporation,
Carrollton, Missouri
Central Bancshares, Inc.,
St. Paris, Ohio

Childress Bancshares, Inc.,
Childress, Texas

Childress Bancshares of
Delaware, Inc.,
Wilmington, Delaware
Coal City Corporation,
Coal City, Illinois
Decatur Investment, Inc.,
Oberlin, Kansas
Deuel County Interstate Bank
Company,
Chappell, Nebraska
Dunlap Iowa Holding Co.,
Dunlap, Iowa

Reserve
Bank

Bank(s)

Effective
Date

Atlanta

September 25, 1992

Kansas City

October 13, 1992

Kansas City

October 13, 1992

Catoosa Bancshares, Inc.,
Catoosa, Oklahoma
Security Bancshares,
Inc.,
Tulsa, Oklahoma
Southwest Trustcorp,
Inc.,
Oklahoma City,
Oklahoma
The First National Bank
of Carrollton,
Carrollton, Missouri
The First Central
National Bank of
St. Paris,
St. Paris, Ohio
Childress Bancshares of
Delaware, Inc.,
Wilmington, Delaware
First Bank & Trust of
Childress,
Childress, Texas
First Bank & Trust of
Childress,
Childress, Texas
Manufacturers National
Corporation,
Chicago, Illinois
State Bank of Atwood,
Atwood, Kansas
Deuel County State Bank,
Chappell, Nebraska

St. Louis

September 28, 1992

St. Louis

September 28, 1992

Kansas City

October 1, 1992

Kansas City

September 29, 1992

Cleveland

October 9, 1992

Dallas

October 19, 1992

Dallas

October 19, 1992

Chicago

September 25, 1992

Kansas City

October 8, 1992

Kansas City

October 6, 1992

Soldier Valley Financial
Services, Inc.,
Soldier, Iowa

Chicago

September 28, 1992

Cairo Banking Company,
Cairo, Georgia
LeavCorp, Inc.,
Leavenworth, Kansas
Bank of the Valley,
Bellwood, Nebraska

964

Federal Reserve Bulletin • December 1992

Section 3—Continued

Applicant(s)
Firstar Corporation,
Milwaukee, Wisconsin
Firstar Corporation of Illinois,
Milwaukee, Wisconsin
First Bancorp of Kansas,
Wichita, Kansas
First Midwest Corporation of
Delaware,
Elmwood Park, Illinois
Georgia Bank Financial
Corporation,
Augusta, Georgia
Harbor Bankshares Corporation,
Baltimore, Maryland
Hawkeye Bancorporation,
Des Moines, Iowa

Heartland Bancorp, Inc.,
El Paso, Illinois

Key Centurion Bancshares, Inc.,
Charleston, West Virginia

Liberty Bancorp, Inc.,
Oklahoma City, Oklahoma
Liberty Bancorp, Inc.,
Oklahoma City, Oklahoma
Mercantile Acquisition
Corporation of Kansas I,
St. Louis, Missouri

Bank(s)

Reserve
Bank

Effective
Date

DSB Corporation,
Deerfield, Illinois

Chicago

October 6, 1992

WRB Bancshares, Inc.,
Oklahoma City,
Oklahoma
West Central Illinois
Bancorp, Inc.,
Monmouth, Illinois
FCS Financial
Corporation,
Martinez, Georgia
The Harbor Bank of
Maryland,
Baltimore, Maryland
Jasand, Inc.,
Cedar Rapids, Iowa
City National Bank of
Cedar Rapids,
Cedar Rapids, Iowa
First National Bank and
Trust Company in
Gibson City,
Gibson City, Illinois
Peoples Bank of Charles
Town,
Charles Town,
West Virginia
F & M Bancorporation,
Inc.,
Tulsa, Oklahoma
Mid City Bank, N.A.,
Midwest City,
Oklahoma
Johnson County
Bankshares, Inc.,
Prairie Village,
Kansas

Kansas City

October 16, 1992

Chicago

October 13, 1992

Atlanta

October 21, 1992

Richmond

October 2, 1992

Chicago

October 13, 1992

Chicago

September 23, 1992

Richmond

September 30, 1992

Kansas City

October 16, 1992

Kansas City

October 16, 1992

St. Louis

October 9, 1992

Legal Developments

965

Section 3—Continued
Applicant(s)
Mercantile Bancorporation Inc.,
St. Louis, Missouri

MNB Bancshares, Inc.,
Manhattan, Kansas
Mohler Bancshares, Inc.,
Harvey ville, Kansas
New Mexico National Financial
Incorporated,
Roswell, New Mexico

Resource One, Inc.,
Ulysses, Kansas
Second Century Financial
Corporation,
Perry, Kansas
Sun Financial Corporation,
Earth City, Missouri

Synovus Financial Corporation,
Columbus, Georgia
TB&C Bancshares, Inc.,
Columbus, Georgia
Fort Rucker Bancshares, Inc.,
Fort Rucker, Alabama
Synovus Financial Corporation,
Columbus, Georgia

Reserve
Bank

Bank(s)

Effective
Date

Crown Bancshares II,
Inc.,
Shawnee Mission,
Kansas
Johnson County
Bankshares, Inc.,
Prairie Village, Kansas
MidAmerican
Corporation,
Shawnee Mission,
Kansas
Manhattan National
Bank,
Manhattan, Kansas
First National Bank of
Harvey ville,
Harvey ville, Kansas
Western Bancshares of
Truth or Consequences,
Inc.,
Truth or Consequences,
New Mexico
FirstBank Truth or
Consequences,
Truth or Consequences,
New Mexico
The Grant County State
Bank,
Ulysses, Kansas
Bank of Perry,
Perry, Kansas

St. Louis

October 9, 1992

Kansas City

October 20, 1992

Kansas City

October 1, 1992

Dallas

October 16, 1992

Kansas City

October 22, 1992

Kansas City

October 7, 1992

The Security Bank of
Mountain Grove,
Mountain Grove,
Missouri
First Commercial
Bancshares, Inc.,
Jasper, Alabama

St. Louis

October 8, 1992

Atlanta

October 7, 1992

TB&C Bancshares, Inc.,
Columbus, Georgia
Interim CB&T Bank of
Russell County,
Phenix City, Alabama

Atlanta

October 7, 1992

966

Federal Reserve Bulletin • December 1992

Section 3—Continued
Applicant(s)
Tomoka Bancorp, Inc.,
Ormond Beach, Florida
United Nebraska Financial
Company,
Grand Island, Nebraska

Bank(s)
Tomoka State Bank,
Ormond Beach, Florida
First Security Bank of
Holdrege,
Holdrege, Nebraska

Reserve
Bank

Effective
Date

Atlanta

October 9, 1992

Kansas City

October 16, 1992

Section 4
Applicant(s)
Brooke Corporation,
Jewell, Kansas
Fidelity Southern Corporation,
Decatur, Georgia
Mercantile Bancorporation Inc.,
St. Louis, Missouri

Mid Am, Inc.,
Bowling Gree, Ohio
NBD Bancorp, Inc.,
Detroit Michigan
NBD Indiana, Inc.,
Detroit, Michigan

Norwest Corporation,
Minneapolis, Minnesota

Prairieland Bancorp, Inc.,
Bushnell, Illinois
Wabasha Holding Company,
Wabasha, Minnesota

Nonbanking
Activity/Company
Brooke State Bank,
Jewell, Kansas
Fidelity National Capital
Investors, Inc.,
Decatur, Georgia
MidAmerican Insurance
Agency, Inc.,
Shawnee Mission,
Kansas
Ultra Bancorp,
Xenia, Ohio
INB Financial
Corporation,
Indianapolis, Indiana
BHC Financial, Inc.,
Philadelphia,
Pennsylvania
PN Financial Services,
Inc.,
Piscataway, New
Jersey
Dunteman and Co.,
Bushnell and
Lewistown, Illinois
First State Insurance of
Wabasha, Inc.,
Wabasha, Minnesota

Reserve
Bank

Effective
Date

Kansas City

October 16, 1992

Atlanta

October 15, 1992

St. Louis

October 9, 1992

Cleveland

October 2, 1992

Chicago

October 6, 1992

Minneapolis

October 8, 1992

Chicago

October 8, 1992

Minneapolis

October 16, 1992

Sections 3 and 4
Applicant(s)
Deuel County Interstate Bank
Company,
Chappell, Nebraska

Nonbanking
Activity/Company
Community Insurance
Agency, Inc.,
Hastun, Colorado

Reserve
Bank
Kansas City

Effective
Date
October 6, 1992

Legal Developments

967

APPLICATIONS APPROVED UNDER BANK MERGER ACT

By Federal Reserve Banks
Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon
request to the Reserve Banks.
Reserve
Bank

Applicant(s)

Bank(s)

Centura Bank,
Rocky Mount, North Carolina

Peoples Federal Savings
Bank,
Wilmington, North
Carolina
Cole Taylor
Bank/Yorktown,
Lombard, Illinois
Green Mountain Bank,
Fountain Branch,
Fountain, Colorado
Standard Federal Savings
Bank,
Gaithersburg, Maryland

Cole Taylor Bank,
Chicago, Illinois
Custer County Bank,
Westcliflfe, Colorado
Mellon Bank (MD),
Rockville, Maryland

Effective
Date

Richmond

October 7, 1992

Chicago

October 9, 1992

Kansas City

October 9, 1992

Richmond

October 2, 1992

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.
Castro v. Board of Governors, No. 92-1764 (D. District of Columbia, filed July 29, 1992). Freedom of
Information Act case.
Board of Governors v. bin Mahfouz, No. 92-CIV-5096
(S.D. New York, filed July 8, 1992). Action to freeze
assets of individual pending administrative adjudication of civil money penalty assessment by the Board.
On July 8, 1992, the court issued a temporary restraining order restraining the transfer or disposition
of the individual's assets. On July 23, the court
denied the individual's motion for expedited discovery on the ground that, as a fugitive from a criminal
indictment, he is disentitled from seeking relief from
the court.
Zemel v. Board of Governors, No. 92-1057 (D. District
of Columbia, filed May 4, 1992). Age Discrimination
in Employment Act case.
Fields v. Board of Governors, No. 92-3920 (6th Cir.,
filed September 14, 1992). Federal Tort Claims Act
complaint alleging misrepresentation during application process. The district court for the Northern
District of Ohio granted the Board's motion to

dismiss on August 10, 1992. On September 14, 1992,
the plaintiff filed a notice of appeal.
State of Idaho, Department of Finance v. Board of
Governors, No. 92-70107 (9th Cir., filed February
24, 1992). Petition for review of Board order returning without action a bank holding company application to relocate its subsidiary bank from Washington
to Idaho. The Board's brief was filed on June 29,
1992. Oral argument was held October 6, 1992.
In re Subpoena Served on the Board of Governors,
Nos. 91-5427, 91-5428 (D.C. Cir., filed December
27, 1991). Appeal of order of district court, dated
December 3, 1991, requiring the Board and the
Office of the Comptroller of the Currency to produce
confidential examination material to a private litigant. On June 26,1992, the court of appeals affirmed
the district court order in part, but held that the bank
examination privilege was not waived by the agencies' provision of examination materials to the examined institution, and remanded for further consideration of the privilege issue.
First Interstate BancSystem of Montana, Inc. v.
Board of Governors, No. 91-1525 (D.C. Cir., filed
November 1, 1991). Petition for review of Board's
order denying on Community Reinvestment Act
grounds the petitioner's application under section 3

968

Federal Reserve Bulletin • December 1992

of the Bank Holding Company Act to merge with
Commerce BancShares of Wyoming, Inc. On August 19, 1992, the court granted petitioner First
Interstate's motion for a stay of the proceedings.
Board of Governors v. Kemal Shoaib, No. CV 91-5152
(C.D. California, filed September 24, 1991). Action
to freeze assets of individual pending administrative
adjudication of civil money penalty assessment by
the Board. On October 15, 1991, the court issued a
preliminary injunction restraining the transfer or
disposition of the individual's assets.
Board of Governors v. Ghaith R. Pharaon, No. 91CIV-6250 (S.D. New York, filed September 17,
1991). Action to freeze assets of individual pending
administrative adjudication of civil money penalty
assessment by the Board. On September 17, 1991,
the court issued an order temporarily restraining the
transfer or disposition of the individual's assets.
Fields v. Board of Governors, No. 3.91CV069 (N.D.
Ohio, filed February 5, 1991). Appeal of denial of
request for information under the Freedom of Information Act. The Board's motion for summary judgment was granted in part and its motion to dismiss
was denied on June 23, 1992.

FINAL ENFORCEMENT DECISION ISSUED BY THE
BOARD OF GOVERNORS

United States of America
Before the Board of Governors of the Federal
Reserve System
Washington, D.C.

In the Matter of
James L. Magee
An Institution-Affiliated
Party of Farmers Bank and
Trust Company,
Blytheville, Arkansas and
Farmers Bancorp, Inc.
Blytheville, Arkansas
Respondent.

Docket No. 91-024-E II

FINAL DECISION
This is an administrative enforcement proceeding
instituted by the enforcement staff ("Enforcement
Counsel") of the Board of Governors of the Federal
Reserve System (the "Board") against Respondent
James L. Magee, an officer and director of Farmers
Bank and Trust Co., Blytheville, Arkansas ("FBT"
or the "Bank") and Farmers Bancorp, Inc.,
Blytheville, Arkansas, ("Bancorp"). Following an
administrative hearing, Administrative Law Judge
("ALJ") Frederick M. Dolan, Jr. issued a Recommended Decision finding that from 1984 to 1990,
Magee used his official position at FBT to extract
from FBT's "Miscellaneous Expense" account payments to himself totalling hundreds of thousands of
dollars in excess of his salary and bonus, and that
Magee caused FBT to pay to another individual,
Gaylon Lawrence, Sr. ("Lawrence"), hundreds of
thousands of dollars in excess of the amount called
for in Lawrence's consulting agreement with FBT.
The ALJ found that this misconduct satisfies the
statutory criteria for the Board to issue against
Magee an Order of Removal and Prohibition ("Prohibition Order") pursuant to section 8(e)(1) of the
Federal Deposit Insurance Act ("FDI Act") as
amended, 12 U.S.C. § 1818(e)(1), prohibiting Magee
from further participation in the affairs of any federally-supervised financial institution without the approval of the appropriate supervisory agencies.
In his exceptions to the Recommended Decision,
Magee does not deny that he caused the payments to
be made, that the payments to himself constituted
unsafe or unsound practices, or that he was negligent. Magee instead argues that the practices were
insufficiently grave in effect, and displayed insufficient culpability on his part, to justify his prohibition
from banking. Magee has also, without stating any
reasons, requested the opportunity to present oral
argument before the Board with respect to his exceptions.
Upon review of the administrative record, the
Board hereby makes its Final Decision, and adopts
the ALJ's Recommended Decision, Recommended
Findings of Fact and Recommended Conclusions of
Law, except as specifically supplemented or modified herein. The Board therefore determines that the
attached Order of Removal and Prohibition shall
issue against Magee, prohibiting him from future
participation in the affairs of any federally-supervised financial institution without the approval of the
appropriate supervisory agency.
Because the legal and factual issues have been
thoroughly explained in the written submissions, the
Board denies Magee's request for oral argument.

Legal Developments

Statement of the Case
A. Statutory Framework
1. Procedure and Standards for Prohibition Order
The FDI Act assigns responsibility to the ALJ for the
conduct of an administrative hearing on a notice of
intention to remove from office or prohibit participation. 12 U.S.C. § 1818(e)(4). Following the hearing,
the ALJ issues a recommended decision that is referred to the Board. The parties may then file with the
Board exceptions to the ALJ's recommendations. The
Board makes the final findings of fact, conclusions of
law, and determination whether to issue an order of
prohibition. Id.; 12 C.F.R. 263.40 (1991).1
The Board is assigned substantive authority under
the FDI Act to issue an order of prohibition against a
bank official2 when the Board determines that the
record establishes each of three tiers of elements:
(1) There must be a specified type of misconduct —
violation of law or regulatory restrictions, unsafe or
unsound practice, or breach of fiduciary duty;
(2) The misconduct must have a prescribed effect —
financial gain to the respondent, financial loss or
other damage to the institution, or prejudice to the
depositors; and
(3) The misconduct must involve culpability of a
certain degree — personal dishonesty or willful or
continuing disregard for the safety or soundness of
the institution.3 12 U.S.C. § 1818(e)(1), (e)(4).
Once an order of prohibition is issued against an
official with respect to a particular bank, it is unlawful
for that person to participate in any manner in the
conduct of the affairs of any federally insured depository institution, savings association, credit union, farm
credit bank, banking regulatory agency or any bank
holding company without the prior approval of the
appropriate federal banking agency. 12 U.S.C.
§§ 1818(b)(3), (e)(7) and (j).

1. While the Board's Rules of Practice and Procedure for Hearings,
12 C.F.R. Part 263, were amended during the pendency of this case,
the parties agree that the pre-Amendment rules govern this case. See
12 C.F.R. Part 263 (1991).
2. As used in this Decision, "official" is used to denote an
"institution-affiliated party". See 12 U.S.C. § 1813(u).
3. While the specific substantive criteria for prohibition were
modified by the 1989 amendments to the FDI Act effected by the
Financial Institutions Reform, Recovery, and Enforcement Act of
1989 ("FIRREA"), Pub. L. No. 101-73, 103 Stat. 183 (1989), which
became effective during the course of conduct at issue in this case,
neither Enforcement Counsel nor Magee has suggested that the
amendments have any substantive bearing on the issues in this case.
See, e.g., Magee Exceptions at ii (citing post-amendment law as
controlling).

969

2. Standards for Cease and Desist Order
The FDI Act also provides that the Board may issue a
cease and desist notice against a financial institution or
institution-affiliated party within its jurisdiction if the
Board has reasonable cause to believe, inter alia, that
the institution or party has engaged in an unsafe or
unsound practice or has violated a law, rule, or regulation. 12 U.S.C. § 1818(b).
3. Reporting Requirements
The Federal Reserve Act provides that banks that are
members of the Federal Reserve System shall make
reports of condition upon the call of the appropriate
Federal Reserve Bank ("Call Reports") in the form
and containing the information prescribed by the
Board. 12 U.S.C. § 234 employees to civil and criminal penalties. Id.; 18 U.S.C. § 1005.

B. Related Proceedings
The Board has initiated two other supervisory proceedings related to this prohibition proceeding. On
April 10, 1991, the same day that the Board issued the
Notice that initiated this proceeding, the Board issued
an interim Order of Suspension from Office and Prohibition of Participation that suspended Magee from
his positions pending the resolution of this prohibition
proceeding. In addition, prior to the hearing in this
case, the Board issued a cease and desist notice
against FBT and Bancorp that was the subject of a
hearing before ALJ Dolan, who issued a recommended decision before FBT consented to issuance of
the cease and desist order.4

Findings and Conclusions
Upon review of the record of this proceeding, the
Board hereby adopts such of the ALJ's recommended

4. Testimony from the cease-and-desist proceeding was introduced
in this prohibition proceeding, and the ALJ made reference in his
prohibition recommended decision to his previous recommended
decision in the cease-and-desist proceeding. In the cease-and-desist
proceeding, ALJ Dolan found that:
(1) Magee, as Chairman and Chief Executive Officer of the Bank,
had set his own compensation without disclosure of the amount to
FBT's board of directors and consequently without the board's prior
approval or contemporary ratification ("the Flawed Procedure");
(2) That Magee's total compensation was excessive and that the
portion of Magee's total compensation that was accounted for as
"miscellaneous expense" was unexplained and appeared to be
unjustified and without consideration (the "Excess Compensation");
(3) That the Call Report filed with the Federal Reserve was inaccurate, in violation of the law, in that a portion of Magee's total
compensation was reported as "miscellaneous expense" rather
than as "Officers' Salary" (the "Inaccurate Call Reports"); and
(4) That the record in the case showed that the payments to
Lawrence in excess of the amounts to which he was entitled under
the consulting agreement between Lawrence and FBT were undocumented and unjustified (the "Lawrence Payments"). RD 4-5.

970

Federal Reserve Bulletin • December 1992

decision, findings, and conclusions as are not specifically modified herein as the findings and conclusions of
the Board, and incorporates by reference the ALJ's
reasoning and citations to the record.

A. Relevant Individuals and Business Entities
FBT is a bank chartered by the state of Arkansas and
a member of the Federal Reserve System. As such,
FBT is subject to the provisions of the FDI Act and the
supervision of the Federal Reserve System, including
both the Board and the Federal Reserve Bank of
St. Louis (the "Reserve Bank"). 12 U.S.C.
§ 1813(q)(2)(A). Bancorp is a bank holding company,
also subject to the Board's supervision (12 U.S.C.
§ 1813(q)(2)(F», that owns all of FBT's outstanding
stock except for qualifying shares held by FBT's
directors. Recommended Decision ("RD") 7. Magee
owns approximately 25 percent of Bancorp and is the
sole voting trustee of the remaining 75 percent of
Bancorp's outstanding shares, which are held in trust
for the benefit of Lawrence's son. RD 8.
At all times pertinent to this case, Magee has been
the chairman of FBT's board of directors, FBT's chief
executive officer, chairman of Bancorp's board of
directors, and president of Bancorp. Lawrence was a
paid consultant to FBT, but was not an officer or
employee. RD 8.

B. Misconduct
The ALJ found that Magee's conduct embodied a
number of unsafe and unsound banking practices,5 a
breach of his fiduciary duty to FBT, and a violation of
the Federal Reserve Act, which prohibits the filing of
false or misleading Call Reports with the Reserve Bank.
12 U.S.C. § 324. RD 44-57. While Magee continues to
dispute in principle some of the ALJ's determinations
as to misconduct, Magee concedes that his conduct
represented an unsafe and unsound banking practice in
at least some respects,6 and so concedes that Enforce-

5. While the FDI Act does not define the term "unsafe or unsound
practice", which may be the predicate for cease and desist orders,
prohibition orders, and civil money penalties (see 12 U.S.C.
§§ 1818(b)(1); 1818(e)(l)(A)(ii), 1818(i)(B)(i)(H), and 1818(i)(C)(i)(II)),
agencies and courts have interpreted the term to address any conduct
contrary to prudent banking practices that potentially exposes a
financial institution to an abnormal risk of harm or loss. See, e.g., Van
Dyke v. Board of Governors, 876 F.2d 1377,1380 (8th Cir. 1989); First
Nat'I Bank of Eden v. Comptroller, 568 F.2d 610, 611 n.2 (8th Cir.
1978) (per curiam); First Nat'l Bank of Bellaire v. Comptroller, 697
F.2d 674,685 (5th Cir. 1983). The Van Dyke court affirmed the Board's
application of that standard to the related term, "disregard for safety
or soundness" as it relates to culpability. 876 F.2d at 1380; see
12 U.S.C. § 1818(e)(l)(C)(ii).
6. Magee concedes that the procedure by which he paid himself
amounts charged to the "miscellaneous expense" account without

ment Counsel has established the Misconduct tier of
elements necessary for entry of an order of prohibition.
RD 44-45; Magee Exceptions ("Except.") ii.
The Board adopts the ALJ's findings and conclusions as the Magee's misconduct, as modified below, 7
and therefore determines that the disguised payments
to Magee reflected a number of unsafe and unsound
banking practices and a violation of law
(12 U.S.C. § 324) and that the payments to Lawrence
also were an unsafe and unsound banking practice and
a breach of Magee's fiduciary duty to the Bank.
1. The Disguised Payments to Magee
The payments to Magee from the miscellaneous expense account began soon after Magee became Chairman, CEO, and one of three members of the executive
committee of FBT's board of directors in January
1984. Every January, FBT's board of directors passed
a resolution delegating to its executive committee the
authority to set officers' salaries. RD 45. Before Magee's time, officers' compensation consisted of a salary
plus a fixed ten percent bonus, which the officers
considered to be part of their salary, with no discretionary bonuses. RD 45. When Magee became a
member of the executive committee in 1984, he established his own salary and ten percent bonus, which
were paid from FBT's "salary and bonus" account.
RD 46-47. In addition to this compensation, however,
Magee caused varying additional amounts of money to
be paid to him by FBT by charging the payments to
FBT's miscellaneous expense account, an account
normally reserved for expenses that cannot be categorized in any other general ledger account. RD 47.
Magee would instruct the Bank's Executive Secretary
to have checks and debit tickets prepared and presented to the Bank's president or executive vice
president — or in their absence to Magee himself —
for approval and signature. Board Exhibit ("Bd. Ex.")
23 ! 30. Magee initiated this practice unilaterally and
determined in his sole discretion the amounts he would
take, without notifying the board of directors. RD 46.
The ALJ found that, in so doing, Magee exceeded the
authority delegated by the board of directors.8 RD 46.
informing the board of directors, and the resulting inaccuracies in the
Call Reports, constituted unsafe or unsound practices, but continues
to dispute in principle the ALJ's findings that the payments to
Lawrence were improper, and that the total amount of the payments
to Magee represented excessive compensation that was unsafe and
unsound. RD 44-45; Except, ii.
7. As explained below, the Board does not reach the ALJ's
alternative finding that the amount of the payments to Magee, if
viewed as legitimate compensation, would in itself have constituted an
unsafe or unsound practice.
8. The ALJ found that the board of directors' delegation to the
executive committee to establish "salaries" included the fixed ten
percent bonus, but did not constitute an open-ended authorization to
pay additional amounts to FBT's officers. RD 46 n.8.

Legal Developments

These "miscellaneous expense" amounts totalled
$46,000 in 1984, $120,000 in 1985, $205,000 in 1986,
$200,000 in 1987, $75,500 in 1988, $139,200 in 1989,
and $159,250 in 1990. RD 48 n.9.9
The payments to Magee through the miscellaneous
expense account caused the nature of the payments to
be disguised and FBT's reporting to be distorted in a
number of respects. While various officers and other
employees were aware of the practice, Magee testified
that he made no disclosure of the practice to the full
board of directors. Transcript ("Tr.") 202. The practice resulted in inaccurate reporting of FBT's payments to Magee on its quarterly Call Reports, the
formal mechanism for reporting to the Reserve Bank.
The instructions on the Call Reports expressly require
that all payments to bank employees in connection
with their employment, however characterized
(whether gross salaries, wages, overtime, bonuses,
incentive compensation or extra compensation) be
reported as salaries and employee benefits. RD 63.
Contrary to the instructions, FBT's call reports listed
the excess payments to Magee under another category
— consistent with their nominal label of "miscellaneous expenses" — which, the ALJ found, had the
effect of concealing from Federal Reserve supervisors
and the public amounts that Magee was causing FBT
to pay to him.10 RD 63-64.
Similarly, the practice concealed the payments from
other forms of formal disclosure, including an officer
questionnaire connected with the 1991 FBT examination. RD 64. On FBT's audited financial statements
and tax returns, the payments to Magee were listed in
the categories of "consulting fees" or "managing
fees", without attribution to Magee (or to any other
recipient). RD 47. The payments were reported to the
Internal Revenue Service as income to Magee on
Form 1099 "Miscellaneous Income" forms, which
report non-employee income, instead of on W-2 wage
and salary forms. RD 47.
Magee's characterization of the nature of the payments has varied. In a sworn statement prior to the

9. While the Notice made charges only with respect to the years
1988-1991, Magee introduced evidence relating to the years 1984-1987
with respect to the payments from the miscellaneous expense account
(see, e.g., Resp. Ex. 16) and therefore tacitly consented to the ALJ's
and the Board's consideration of that evidence. In any event, the
nature of Magee's conduct with respect to those payments did not
substantively change after 1987, so that the Board's conclusion would
be the same whether or not the evidence relating to the years
1984-1987 is considered.
10. Magee signed some of the Call Reports in his capacity as a
director of FBT. See, e.g., Bd. Ex. 6,16. According to the Call Report
form, the director's signatures "attest to the correctness of this Report
of Condition . . . and declare that it has been examined by us and to
the best of our knowledge and belief has been prepared in conformance with the instructions issued by the appropriate Federal regulatory authority and is true and correct." Id.

971

hearing, Magee referred to the payments as "consulting fees", even though he testified that he did not have
any management or consulting arrangement with FBT.
RD 47-48; Bd. Ex. 23 1111 30,39. 11 Magee testified at the
hearing that the payments were in the nature of
"discretionary bonuses" that he set based upon FBT's
performance measured against a formula that Magee
devised: FBT's return on assets, capital level, and
asset quality. RD 50. Magee testified that he did not
confide this formula to the board of directors. Tr. 271.
This testimony conflicted with Magee's previous denial to Reserve Bank examiners that any such "performance criteria" existed. RD 50; Bd. Ex. 20 at
(c)(1).
The ALJ did not credit the characterization of the
payments as "discretionary bonuses" in light of the
conflicting prior statements by Magee, and in the
absence of a correlation between the "bonuses" and
FBT's performance. RD 50-52. 12 Furthermore, the
ALJ determined that there was no appropriate authority for Magee to set his own compensation.13 RD
46-47. In the absence of any credible explanation for
these funds, the ALJ reasonably concluded that "Magee was simply taking money from FBT for his own
use." RD 48. The Board adopts these findings.14

11. Besides the services Magee performed in the normal course of
his duties as chairman of FBT's board of directors and CEO, Magee
provided no other documented services. RD 48. The ALJ therefore
reasonably concluded that the payments did not represent appropriate
management or consulting fees. RD 49.
12. The performance figures for the Bank, when compared to
Magee's "expense" payments and his total compensation, indicate
that to the extent that Magee had a self-adopted scale for the
payments, he felt free to depart from that scale at will. For example,
as the ALJ pointed out, FBT's return on assets and capital level
declined from 1986 to 1987, but Magee still increased the overall total
of payments to himself in 1987. RD 51-52.
13. The ALJ found that the payments exceeded the scope of the
delegation of authority to the executive committee and that it would
have been an unsafe and unsound practice for the board of directors to
authorize such a limitless delegation of authority over compensation.
RD 46-47.
14. The ALJ also found that, to the extent that the payments were
viewed as procedurally legitimate compensation, the amounts of the
payments were so excessive as to constitute a distinct unsafe or
unsound practice. In light of its other findings as to Magee's misconduct, the Board need not and does not reach the issue of excessive
compensation as an independent unsafe and unsound practice, and
does not adopt either the ALJ's findings or Magee's proposed findings
as to this issue.
At the same time, however, the Board notes that the evidence
relating to the total amount Magee was taking from FBT as compared
with the compensation of executives at other institutions supports the
ALJ's findings as to Magee's motivation in paying himself from the
miscellaneous expense account, and thus his culpability. The ALJ
found that the practice of taking compensation from the "miscellaneous expense" account was designed to disguise the nature of the
payments so as to avoid inevitable regulatory criticism and that it had
that effect for seven years. RD 54-55. The desire to avoid unwelcome
attention from Bank regulators provides a plausible motive for Magee's practice in the absence of any reasonable alternative explanation
from Magee.

972

Federal Reserve Bulletin • December 1992

2. The Lawrence Payments
The ALJ also found that Magee's practice of paying
sums to Lawrence in excess of the amounts called for
in his consulting contract, a payment reserved to
Magee's sole discretion, was another unsafe or unsound practice and a breach of Magee's fiduciary duty
to FBT. RD 57; Recommended Conclusion of Law
("RCL") 17.
The Reserve Bank made Magee aware of its concern about the amount of money paid to Lawrence as
a consultant when FBT's shareholders in 1987 filed
an application with the Reserve Bank to form a bank
holding company, Bancorp, to hold the stock of
FBT. Recommended Finding of Fact ("RFF") 90103. In order to allay the Reserve Bank's concerns,
FBT submitted a new Lawrence consulting agreement, signed by Lawrence and by Magee on FBT's
behalf, that limited the services that Lawrence would
perform for FBT and limited the corresponding payments that Lawrence would receive from FBT to
$96,000 per year plus $400 director's fees per FBT
board of directors meeting he attended. RFF 97-102.
The Reserve Bank relied upon the agreement in
approving the application. RFF 102.
In practice, Lawrence received payments in excess of those called for in the consulting agreement.
In 1988, Lawrence was paid $25,000 from FBT's
consultant fee account and $100,800 from the FBT's
"miscellaneous expense" account. RFF 106-107. In
1989, Lawrence was paid $100,800 under the consulting agreement and $115,000 in bonus. RFF 109. In
1990, Lawrence was paid $215,400 in nonemployee
compensation, of which $114,600 was in addition
to the amount called for by the consulting agreement.
RFF 110. Additional payments were made from the
"miscellaneous expense" account in 1991. RFF 111.
FBT's books and records contain no documentation
of any services rendered by Lawrence to FBT. RFF
113.
Magee variously characterized the excess payments to Lawrence as compensation for services
rendered in addition to those called for in the consulting agreement (RFF 120; Magee Tr. 322) and as
bonuses based on the Bank's performance (RFF 115;
117, 121; Bd. Ex. 23 If 26, 37). Lawrence, in a sworn
statement, stated that the payments were bonuses
based on the Bank's performance. RFF 119; Bd. Ex.
22 11 15.
The ALJ reasonably concluded that the payments
made to Lawrence in Magee's sole discretion and
in excess of the amounts specified in Lawrence's
consulting agreement represented an unsafe or unsound practice and a breach of Magee's fiduciary
duty to FBT. RD 57. The Board adopts these conclusions.

C. Effect
1. Financial gain or other benefit to Magee
Under the FDI Act, the second tier of elements
necessary for an order of prohibition may be satisfied
by a showing that the respondent "has received financial gain or other benefit by reason o f ' the misconduct. 12 U.S.C. § 1818(e)(l)(B)(iii). The ALJ reasonably concluded that Magee received financial gain
from the payments to himself from the miscellaneous
expense account.15 RD 57-58. It is undisputed that the
amounts extracted from the miscellaneous expense
account totalled, over a seven-year period, in over
$900,000. RD 51.16
Magee's argument to the contrary is that he received no material gain from the disputed practice
since, as a major shareholder, he could have
achieved the same financial gain through legitimate
means, either by simply having the Bank pay dividends or through a straightforward compensation
scheme approved by the board of directors. Except,
v-vii. The Board concludes that the ALJ properly
rejected these arguments. First, whether or not Magee could have achieved the same financial result by
legitimate means, the facts on the record of this case
are that in practice he incurred the gain illegitimately.
Second, it is not clear that Magee would have
achieved the same gain had he made the total amount
of the payments known to the board of directors, to
the public and to supervisors. The after-the-fact
ratification of the payments to Magee by the board of
directors17 does not necessarily mean that the directors would have been equally generous at an earlier
and more uncertain time, and is not a substitute for
contemporaneous approval. In addition, disclosure
to the Reserve Bank at an earlier time would have
run the risk that the Federal Reserve would act to
reduce the amount of compensation paid to Magee,
as in fact happened when the disguised compensation
came to light in 1991.18 RD 54. Furthermore, Magee
could not have achieved the same financial result by
paying himself dividends, since Bancorp became the
shareholder of FBT in 1988 and, as a bank holding
15. The ALJ did not find that the payments to Lawrence caused any
financial gain or other benefit to Magee.
16. This figure takes into account the $52,000 Magee returned to
FBT in 1988. RD 51-52. For the years 1988-1990 specified in the
Notice, the amount totalled roughly $374,000. See RD 51.
17. In April, 1991, upon Magee's disclosure (under pressure from
the Federal Reserve) of the amount and nature of the payments to him,
the board of directors adopted a resolution purporting to ratify the past
miscellaneous expense payments to Magee as compensation. RFF 53.
18. Contrary to Magee's argument (Except, xi), he did not report his
total compensation from FBT to the Reserve Bank in a meaningful
way. While he did disclose his total income from all sources to the
Reserve Bank in 1987, the total was not broken down in such a way as
to indicate the portion of his income that came from FBT. RFF 56.

Legal Developments

company, Bancorp is restricted in the dividends that
it can pay relative to its outstanding debt. RD 58. 19
2. Financial Loss or Other Damage to FBT
Because the payments extracted from the miscellaneous expense fund for Lawrence and Magee were
unjustified by any corresponding benefit to FBT, the
ALJ properly found that they caused loss or damage to
FBT for purposes of the "effects" criterion for prohibition. RD 61.20
Magee's argument to the contrary depends upon a
misinterpretation of the statutory test for "loss or
other damage" to the institution: Magee argues that
the test is not satisfied unless there is a "direct and
substantial risk to the financial integrity of the institution and the government's insurance risks"21 and
submits that the test is not met here because FBT is in
a financially sound condition.22 Except, iii-x. The
statutory language for the loss element simply states:
"(B) by reason of [the misconduct] —
(i) "such insured depository institution or business institution has suffered or will probably suffer financial loss or other damage".
12 U.S.C. § 1818(e)(l)(B)(i). There is no textual basis
for grafting onto this language the requirement that the
losses or other damage be so severe as to threaten the
survival of the institution before the Board may bring
a prohibition action.23 Such a rule would permit the
diversion of funds from a prosperous institution with
relative immunity so long as the institution remained
solvent. 24

19. Bancorp undertook debt in order to purchase the shares of FBT.
As part of the application to form Bancorp, the Reserve Bank required
Magee and Lawrence to file projections of the retirement of that debt
by means of dividends from FBT. RD 58. As Magee acknowledged, it
is extremely doubtful that the Reserve Bank would have approved the
payment of dividends from Bancorp to its shareholders, Magee and
the Trust, until Bancorp's debt had been reduced. Resp. Ex. 15A at 3.
20. Further, the ALJ noted that Bancorp was lagging behind its
schedule of debt retirement and that it would not have been had FBT
paid the amount in dividends to Bancorp that was instead paid to
Magee in miscellaneous expenses. RD 58 n.12.
21. Magee's cited authority for this proposition is inapposite in that
it does not at all address the "loss" provision of section 1818(e), but
instead construes the meaning of an "unsafe or unsound practice" for
purposes of a cease and desist order under section 1818(b). See Gulf
Fed. Sav. & Loan Ass'n v. Federal Home Loan Bank Bd., 651 F.2d
259 (5th Cir. 1981), cert, denied 458 U.S. 1121 (1982). Indeed, Gulf
Federal involved interest overcharges by a savings and loan association, a practice that financially benefitted the institution in the short
term and created virtually no risk of any real loss in the long term.
Accordingly, the practice was found not to be unsafe or unsound. 651
F.2d at 262 n.2.
22. It is not disputed that FBT is a financially sound institution, with
a composite rating of 2, the second-highest rating on the Board's
5-point scale for rating banks.
23. Indeed, when Congress amended section 1818(e) in 1989, one of
the most significant changes was the deletion of the previous requirement that the losses be "substantial".
24. As the Eighth Circuit held in Van Dyke v. Board of Governors,
876 F.2d 1377, 1380 (8th Cir. 1989), where a check kite was cleared

973

Accordingly, the ALJ properly rejected Magee's
argument that these payments did not cause financial
loss to FBT within the meaning of the statute because
they were not so great as to create a risk to FBT's
financial integrity.
D. Culpability
The culpability requirement for prohibition under the
FDI Act requires a determination that the misconduct
at issue
"(i) Involves personal dishonesty on the part of
such party; or
(ii) Demonstrates willful or continuing disregard
by such party for the safety or soundness of such
insured depository institution or business institution."
12 U.S.C. § 1818(e)(1)(C). The ALJ found that the
misconduct at issue here reflected Magee's personal
dishonesty as well as both willful and continuing
disregard for FBT's safety and soundness. RD 62-69.
1. Personal Dishonesty
The ALJ properly rejected Magee's arguments that the
proper test for "personal dishonesty" requires a
"compelling sense of conscious wrong", an "intent to
deceive", or conduct that amounts to fraud (Except,
xii-xiii), since the Board's past decisions apply a
broader standard that encompasses concepts such as a
lack of integrity, trustworthiness, fairness or straightforwardness. See, e.g., Van Dyke v. Board of Governors, 876 F.2d at 1379 (8th Cir. 1989); Greenberg v.
Board of Governors, 968 F.2d 164, 171 (2d Cir.
1992)(dishonesty established by failure to disclose
aspects of insider transactions to board of directors).25
Under this legal standard, the Board adopts the
ALJ's rejection of Magee's attempts to mitigate his
culpability. Magee acknowledges that his actions were
"negligent" (Except, xiv), but denies that his actions
reflected any greater degree of culpability, arguing that
his fault lay in his lack of education and understanding
of the correct procedures required, not in any intent to
deceive or defraud. Except, xvii. In support of the

with no lasting damage to the bank involved, "we think it unrealistic
for Van Dyke to suggest the Board is powerless to respond to an
officer's manipulative, self-dealing activity unless actual harm to the
bank occurs." Van Dyke, 876 F.2d at 1380 (interpreting meaning of
"disregard for safety or soundness").
25. In the Van Dyke case, the Eighth Circuit affirmed the Board's
rejection of a narrow standard limiting personal dishonesty to "an
intent to gain at the expense of others" and affirmed the Board's
interpretation of "personal dishonesty" as extending beyond civil
fraud to "encompass a broad range of conduct". Van Dyke, 876 F.2d
at 1379; see also In re Stanford C. Stoddard, No. AA-EC-85-44 at 42
n.24 (Jan. 29, 1988)(rejecting limitation of personal dishonesty to
fraud), rev'd on other grounds, Stoddard v. Board of Governors, 894
F.2d 1499 (D.C. Cir. 1989).

974

Federal Reserve Bulletin • December 1992

relative innocence of his actions Magee points out
that he owned 25% of the Bank from 1984 until 1987,
and, thereafter, he owned 25% of Bancorp and was
the sole voting trustee of the remaining 75% interest.
Except, xiii-xiv. Magee argues that his policies and
management caused the Bank to improve its profitability and to receive consistent high ratings for
financial soundness. Except, xiv. He argues that the
misreporting of his compensation did not affect the
overall picture of the Bank's financial position presented to regulators, since the bottom line for the Bank
was the same, whether the amounts were reported as
expenses or compensation. Magee states that he disclosed all of his compensation to the Internal Revenue
Service, even though he misreported the nature of the
miscellaneous expense payments. Magee argues that he
did not devise the method of taking payments charged
to miscellaneous expenses, but merely carried the practice over from another bank, where he had learned the
business, and where it was a standard practice for
management to take payments charged to miscellaneous expenses. Except, xvi. He argues that the practices were never criticized from 1984 to 1990, notwithstanding repeated examinations by state and federal
regulators, even though the "miscellaneous expense"
totals were above the average for FBT's peer banks,
which should have flagged the practice for the regulators. Except, xvi. Furthermore, Magee argues that he
orally disclosed the total amount of his compensation to
the Arkansas State Banking Commissioner (though he
did not detail the method by which he was taking the
miscellaneous expense payments), and that the Commissioner stated that he was untroubled by the amount
so long as the earnings and capital position of the Bank
remained strong. He states that he delegated the responsibility for compliance with reporting requirements
to FBT's auditors. Except, xvi.
The Board adopts the ALJ's rejection of these
arguments, and determination, based in large part on
the ALJ's credibility determinations, that Magee's
actions reflected personal dishonesty. The ALJ
found that Magee's method of extracting money from
FBT evidenced deception, misrepresentation, and a
lack of candor. RD 62. There is no question that
Magee did not inform the board of directors of his
claimed formula for self-payment, or the amounts he
was in fact taking, before the practice was brought to
light through the examination process. The ALJ
found that the evidence indicated that Magee engaged in a "deliberate, concerted effort to mislead
regulators, FBT's depositors, and the public" with
regard to the amounts he extracted from FBT. RD
63. The ALJ found that Magee's motive for concealing the payments was to reduce the risk that exposure would cause pressure for the amount of the

payments to be reduced. RD 63. 26 The ALJ also
properly rejected Magee's defense that he simply did
not know that there was anything wrong with the
practice of extracting funds from the miscellaneous
expense account because he had learned it from
others. Nor did the ALJ accept Magee's argument
that the federal and state banking examiners, other
bank employees or his accountant should have
alerted him to the impropriety of the payments. The
ALJ found these arguments legally insufficient to
shift Magee's responsibility as the president and
CEO of FBT to other parties. RD 55.
The ALJ found other indications of dishonesty in the
conflicting explanations that Magee proffered after the
payments were discovered by Federal Reserve examiners in early 1991; Magee at various times characterized the payments to himself as bonuses determined
without regard to criteria, as consulting fees, and as
discretionary bonuses based on self-determined criteria. RD 66. The ALJ reasonably concluded that the
pattern indicates a continuing attempt to mislead supervisors as to the nature of the payments. RD 66. The
ALJ found that Magee exhibited a similar lack of candor
with regard to the payments to Lawrence. RD 66-67.
The Board adopts the ALJ's conclusions as to Magee's dishonesty, which are based largely on credibility
determinations. The nature of Magee's offenses, disguised payments to insiders, is the sort of insider abuse
that can rapidly deplete a financial institution's capital
and liquidity. Supervisors monitor payments to insiders
by means such as Call Reports, officer questionnaires,
and audited financial statements, the procedures that
Magee circumvented in this case. The ALJ's factual
finding that Magee deliberately concealed the payments
from supervisors displays a lack of integrity that satisfies the statutory standard for personal dishonesty.
2. Willful and Continuing Disregard for Safety or
Soundness
The Board also adopts the ALJ's conclusion that Magee's misconduct satisfied the statutory standard for
both willful and continuing disregard for safety or
soundness. A "willful disregard for safety or soundness" is established by intentional conduct that constitutes an unsafe or unsound banking practice, i.e., that is
contrary to prudent banking practices, and that is of a
sort that potentially exposes an institution to abnormal
risk of harm or loss. Van Dyke, 876 F.2d at 1380.27
26. The ALJ reasonably rejected Magee's arguments that he had
disclosed the nature of the payments to the state banking regulator and
to the Federal Reserve, finding that the disclosures made to each
regulator were sufficiently misleading as to disguise the nature of the
payments from further regulatory inquiry. RD 65 n. 15.
27. "Willfulness" has been defined as an "unreasonable failure to
conform intentional conduct to the law's dictates", United States v.
Donovan, No. 91-1574, slip op. at 11 (1st Cir. Feb.6, 1992) (criminal

Legal Developments

"Continuing" disregard has been held to require a
lesser showing of scienter akin to "recklessness."
Brickner v. Federal Deposit Insurance Corporation,
747 F.2d 1198, 1203 n.6 (8th Cir. 1984).
Applying these standards to the facts of this case, it is
clear that Magee's conduct constituted both willful and
continuing disregard for FBT's safety or soundness.
Magee concedes that his conduct constituted an unsafe
or unsound banking practice. Furthermore, it is clear
that Magee "willfully" engaged in the practice, since he
unilaterally controlled his practice of payments to himself and to Lawrence.
Indeed, Magee's own characterization of his actions
displays an obliviousness to fundamental precepts of
banking governance and regulation, notwithstanding a
career in banking that began in 1957 and included a
short term as an examiner for the Arkansas Bank
Department and offices in statewide banking organizations. Magee regarded it to be unnecessary to even
inform his board of directors of his total compensation
or of the self-generated formula he claims to have used
to determine that compensation. Tr. 271. By his own
testimony, Magee was unconcerned as to how the
payments from the miscellaneous expense account
were represented to the auditors, to regulators, or to the
public, regarding that as a responsibility for someone
other than himself. Tr. 281-284. Notwithstanding the
Reserve Bank's manifest concern with the payments to
Lawrence, Magee professed ignorance of the commitments made on FBT's behalf and felt himself unfettered
in his discretion to make additional payments to
Lawrence. Tr. 309-313. In sum, Magee portrays himself as deliberately engaging in actions that displayed a
fundamental lack of understanding of sound banking
practice, thereby supporting the Board's conclusion
that he acted with willful and continuing28 disregard for
safety or soundness, and warranting the issue of an
order of prohibition against him.

975

FINAL ENFORCEMENT ORDERS ISSUED BY THE
BOARD OF GOVERNORS

The Genoa Banking Company
Genoa, Ohio
The Federal Reserve Board announced on October 14,
1992, the issuance of a Cease and Desist Order against
The Genoa Banking Company, Genoa, Ohio.

Marshall County Bankshares, Inc.
Beattie, Kansas
The Federal Reserve Board announced on October 5,
1992, the issuance of an Order of Assessment of a Civil
Money Penalty against Marshall County Bankshares,
Inc., Beattie, Kansas and Edwin L. Nutt, an institution-affiliated party of Marshall County Bankshares,
Inc.

Midwest Securities Trust Company
Chicago, Illinois
The Federal Reserve Board announced on October 29,
1992, the issuance of a Cease and Desist Order against
Midwest Securities Trust Company, Chicago, Illinois.
The Board's Order was issued in conjunction with
enforcement proceedings initiated on October 29,
1992, by the Securities and Exchange Commission
against Midwest Clearing Corporation, Chicago, Illinois, and Midwest Securities Trust Company.

WRITTEN AGREEMENTS APPROVED BY FEDERAL
RESERVE BANKS

Farmers Savings Bank
Norwood, Ohio

Conclusion
For the foregoing reasons, the Board orders that the
attached Order of Removal and Prohibition shall
issue.

currency transaction violation), and may be shown where an officer
and directors in a heavily regulated industry, who is chargeable with
responsibility for conducting his affairs in accordance with regulatory
requirements, is conscious of the facts that constitute the misconduct.
Premex, Inc. v. CFTC, 785 F.2d 1403, 1406 n.9 (9th Cir. 1986).
28. "Continuing disregard for safety and soundness" is established
in that the practices continued over a period of years and the
determination that Magee's disregard was willful establishes, a
fortiori, that Magee was "reckless" in so acting. See Brickner, 747
F.2d at 1203 n.6.

The Federal Reserve Board announced on October 30,
1992, the execution of a Written Agreement among the
Federal Reserve Bank of Cleveland, the Superintendent of Banks of the State of Ohio, and the Farmers
Savings Bank, Norwood, Ohio.

Glendale Bank of Pennsylvania
Philadelphia, Pennsylvania
The Federal Reserve Board announced on October 5,
1992, the execution of a Written Agreement between
the Federal Reserve Bank of Philadelphia and the
Glendale Bank of Pennsylvania, Philadelphia, Pennsylvania.

976

Federal Reserve Bulletin • December 1992

Guardian Bank
Los Angeles, California

Shawmut National Corporation
Boston, Massachusetts

The Federal Reserve Board announced on October 20,
1992, the execution of a Written Agreement between
the Federal Reserve Bank of San Francisco and the
Guardian Bank, Los Angeles, California.

The Federal Reserve Board announced on October 6,
1992, the execution of an Amendment to the Written
Agreement, dated October 1, 1991, between the
Federal Reserve Bank of Boston and Shawmut
National Corporation, with dual headquarters in
Hartford, Connecticut and Boston, Massachusetts.
The Amendment eliminates the requirements for
Shawmut National Corporation to obtain the written
approval of the Federal Reserve prior to declaring or
paying preferred stock dividends.

High Point Financial Corp.
Branch ville, New Jersey
The Federal Reserve Board announced on October 26,
1992, the execution of a Written Agreement between
the Federal Reserve Bank of New York and High
Point Financial Corp., Branchville, New Jersey.

Financial and Business Statistics
CONTENTS

WEEKLY REPORTING COMMERCIAL BANKS

A3 Guide to Tabular Presentation

Assets and liabilities
A21 All reporting banks
A23 Branches and agencies of foreign banks

Domestic Financial Statistics
MONEY STOCK AND BANK CREDIT

FINANCIAL MARKETS

A24 Commercial paper and bankers dollar
acceptances outstanding
A24 Prime rate charged by banks on short-term
business loans
A25 Interest rates—money and capital markets
A26 Stock market—Selected statistics
A27 Selected financial institutions—Selected assets
and liabilities

A5
A6
A7

Reserves, money stock, liquid assets, and debt
measures
Reserves of depository institutions, Reserve Bank
credit
Reserves and borrowings—Depository
institutions
Selected borrowings in immediately available
funds—Large member banks

POLICY INSTRUMENTS
A8 Federal Reserve Bank interest rates
A9 Reserve requirements of depository institutions
A10 Federal Reserve open market transactions

FEDERAL RESERVE BANKS
A l l Condition and Federal Reserve note statements
A12 Maturity distribution of loan and security
holdings

FEDERAL FINANCE
All
A28
A29
A29

Federal fiscal and financing operations
U.S. budget receipts and outlays
Federal debt subject to statutory limitation
Gross public debt of U.S. Treasury—Types
and ownership
A30 U.S. government securities
dealers—Transactions
A31 U.S. government securities dealers—Positions
and financing
A3 2 Federal and federally sponsored credit
agencies—Debt outstanding

MONETARY AND CREDIT AGGREGATES
A13 Aggregate reserves of depository institutions
and monetary base
A14 Money stock, liquid assets, and debt measures
A16 Bank debits and deposit turnover
A17 Loans and securities—All commercial banks

COMMERCIAL BANKING INSTITUTIONS
A18 Major nondeposit funds
A19 Assets and liabilities, last-Wednesday-of-month
series

SECURITIES MARKETS AND
CORPORATE FINANCE
A3 3 New security issues—State and local
governments and corporations
A34 Open-end investment companies—Net sales
and asset position
A34 Corporate profits and their distribution
A34 Total nonfarm business expenditures on new
plant and equipment
A35 Domestic finance companies—Assets and
liabilities and business credit

Federal Reserve Bulletin • December 1992

Domestic Financial Statistics—Continued
REAL ESTATE
A3 6 Mortgage markets
A3 7 Mortgage debt outstanding

A54 U.S. reserve assets
A54 Foreign official assets held at Federal Reserve
Banks
A55 Foreign branches of U.S. banks—Balance
sheet data
A57 Selected U.S. liabilities to foreign official
institutions

CONSUMER INSTALLMENT CREDIT
A3 8 Total outstanding and net change
A3 8 Terms
FLOW OF FUNDS
A39 Funds raised in U.S. credit markets
A41 Direct and indirect sources of funds to credit
markets
A42 Summary of credit market debt outstanding
A43 Summary of credit market claims, by holder

Domestic Nonfinancial Statistics

REPORTED BY BANKS
IN THE UNITED STATES
A57
A58
A60
A61

Liabilities to and claims on foreigners
Liabilities to foreigners
Banks' own claims on foreigners
Banks' own and domestic customers' claims on
foreigners
A61 Banks' own claims on unaffiliated foreigners
A62 Claims on foreign countries—Combined
domestic offices and foreign branches

REPORTED BY NONBANKING BUSINESS
ENTERPRISES IN THE UNITED STATES

SELECTED MEASURES
A44 Nonfinancial business activity—Selected
measures
A45 Labor force, employment, and unemployment
A46 Output, capacity, and capacity utilization
A47 Industrial production—Indexes and gross value
A49 Housing and construction
A50 Consumer and producer prices
A51 Gross domestic product and income
A52 Personal income and saving

A63 Liabilities to unaffiliated foreigners
A64 Claims on unaffiliated foreigners

SECURITIES HOLDINGS AND TRANSACTIONS
A65 Foreign transactions in securities
A66 Marketable U.S. Treasury bonds and
notes—Foreign transactions

INTEREST AND EXCHANGE RATES

International Statistics
SUMMARY STATISTICS

A67 Discount rates of foreign central banks
A67 Foreign short-term interest rates
A68 Foreign exchange rates

A53 U.S. international transactions—Summary
A54 U.S. foreign trade

A69 Guide to Statistical Releases and
Special Tables

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

0
ATS
CD
CMO
FFB
FHA
FHLBB
FHLMC
FmHA
FNMA
FSLIC
G-7
G-10

Corrected
Estimated
Not available
Not elsewhere classified
Preliminary
Revised (Notation appears on column heading
when about half of the figures in that column
are changed.)
Amounts insignificant in terms of the last decimal
place shown in the table (for example, less than
500,000 when the smallest unit given is millions)
Calculated to be zero
Cell not applicable
Automatic transfer service
Certificate of deposit
Collateralized mortgage obligation
Federal Financing Bank
Federal Housing Administration
Federal Home Loan Bank Board
Federal Home Loan Mortgage Corporation
Farmers Home Administration
Federal National Mortgage Association
Federal Savings and Loan Insurance Corporation
Group of Seven
Group of Ten

GNMA
GDP
HUD
IMF
IO
IPCs
IRA
MMDA
NOW
OCD
OPEC
OTS
PO
REIT
REMIC
RP
RTC
SAIF
SCO
SDR
SIC
SMSA
VA

Government National Mortgage Association
Gross domestic product
Department of Housing and Urban
Development
International Monetary Fund
Interest only
Individuals, partnerships, and corporations
Individual retirement account
Money market deposit account
Negotiable order of withdrawal
Other checkable deposit
Organization of Petroleum Exporting Countries
Office of Thrift Supervision
Principal only
Real estate investment trust
Real estate mortgage investment conduit
Repurchase agreement
Resolution Trust Corporation
Savings Association Insurance Fund
Securitized credit obligation
Special drawing right
Standard Industrial Classification
Standard metropolitan statistical area
Veterans Administration

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.

Domestic Financial Statistics • December 1992

1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES
Percent annual rate of change, seasonally adjusted 1
1991

1992

Monetary and credit aggregate

1
2
3
4

Reserves of depository
Total
Required
Nonborrowed
Monetary base

5
6
7
8
9

Concepts
Ml
M2
M3
L
Debt

15.2
15.4
20.0
8.2

23.4
23.5
24.0
9.2

14.9
15.4
14.8
7.1

11.1
2.4
1.0
.2
3.9 1

16.5
4.2 r
2.2 r
1.5
4.2 r

-.6
-5.4

and

Time and savings
deposits
Commercial banks
Savings, including MMDAs
Small time
Large time '
Thrift institutions
15
Savings, including MMDAs
16
Small time
17
Large time •

12
13
14

Money market mutual funds
18 General purpose and broker-dealer
19 Institution-only

9.3
9.9
8.4
10.5

12.1
15.8
10.5
7.7

-6.3
-4.3
-8.1
3.9

6.2
5.0
4.9
9.5

20.2 r
21.3 r
21.lr
16.6 r

24.4
23.2
23.7
16.7

9.9
•3r
-1.3r
.5
5.2 r

10.5
.1
-.3
n.a.
n.a.

14.6
.6
-.2r
-2.4r
4.4 r

-3.1
-3.2r
-3.4r
2.7 r
5.3 r

11.3
-1.1
-1.9"
4.7 r

16.0
2.9 r
3.1 r
4.2
4.5

19.7
3.6
1.5
n.a.
n.a.

-.r
-7.5

-3.r
-9.4r

-3.8
-2.3

-4.7r
—3.91

-3.2
-4.6r

-5.6r
—2.2r

-2.0
3.9 1

-2.7
-8.7

16.0
-8.4
-14.4

19.1
-18.9
-18.2

12.0
—13.3r
—14.8

10.1
-16.4
-16.1

8.0
-16.7
—8.3r

4.9
-14.2r
-14.91

9.3
-16.8r
—24.0r

13.6
— 19.2 r
—10.2r

17.6
-16.4
-16.7

10.2
-22.5
-36.5

22.4
-24.3
-29.7

18.8
-29.4
-36.7

8.2
-19.9
-17.1

18.8
-24.3
-40.7

5.2
-17.8
-25.2

5.2
-19.6
-5.2

8.9
-21.7
-22.4

10.8
-19.7
-3.5

-4.0
37.2

-,3r
26.9

-4.8r
20.0

-8.1
40.0

2.7 r
35.5

-6.4r
30.2

— 11.5 r
48.1

-5.8r
54.9

-17.2
.0

10.0"
2.4 r

14.2 r
2.3 r

n.a.
n.a.

12.3 r
1.8 r

14.8 r
2.1 r

10.7 r
2.6

9.5
2.7

n.a.
n.a.

debt4

11.5 r
1.5r

1. Unless otherwise noted, rates of change are calculated from average
amounts outstanding during preceding month or quarter.
2. Figures incorporate adjustments for discontinuities, or "breaks," associated with regulatory changes in reserve requirements. (See also table 1.20.)
3. Seasonally adjusted, break-adjusted monetary base consists of (1) seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits, and Vault
Cash" and for all weekly reporters whose vault cash exceeds their required
reserves) the seasonally adjusted, break-adjusted difference between current vault
cash and the amount applied to satisfy current reserve requirements.
4. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions, less cash items in
the process of collection and Federal Reserve float; and (4) other checkable
deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and
automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U . S . banks worldwide, (2) savings (including MMDAs) and small time deposits (time deposits—including retail repurchase
agreements (RPs)—in amounts of less than $100,000), and (3) balances in both
taxable and tax-exempt general-purpose and broker-dealer money market funds.
Excludes individual retirement accounts (IRAs) and Keogh balances at depository
institutions and money market funds. Also excludes all balances held by U.S.
commercial banks, money market funds (general purpose and broker-dealer),
foreign governments and commercial banks, and the U.S. government. Seasonally adjusted M2 is computed by adjusting its non-Mi component as a whole and
then adding this result to seasonally adjusted M l .
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking

Sept.

June

components

Debt
components4
20 Federal
21 Nonfederal

July

Aug.

May

institutions

of money, liquid assets,

Nontrqnsaction
10 In M2 5
11 In M3 only 6

offices in the United Kingdom and Canada, and (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U . S . government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U . S . savings bonds, short-term
Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding creditmarket debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Data on debt of domestic nonfinancial
sectors are monthly averages, derived by averaging adjacent month-end levels.
Growth rates for debt reflect adjustments for discontinuities over time in the levels
of debt presented in other tables.
5. Sum of (1) overnight RPs and Eurodollars, (2) money market fund balances
(general purpose and broker-dealer), (3) MMDAs, and (4) savings and small time
deposits.
6. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U . S .
residents, and (4) money market fund balances (institution-only), less (5) a
consolidation adjustment that represents the estimated amount of overnight RPs
and Eurodollars held by institution-only money market funds. This sum is
seasonally adjusted as a whole.
7. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRA and Keogh account balances at commercial banks and
thrift institutions are subtracted from small time deposits.
8. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
9. Large time deposits at commercial banks less those held by money market
funds, depository institutions, and foreign banks and official institutions.

Money Stock and Bank Credit

1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1
Millions of dollars

July

Average of
daily figures

Average of daily figures for week ending on date indicated

1992

Aug.

Sept.

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

S U P P L Y I N G RESERVE F U N D S

1 Reserve Bank credit outstanding
U.S. government securities 2
2
Bought outright—System account
3
Held under repurchase agreements . . .
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements . . .
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10
Float
11
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding

313,136

315,617 r

325,916

317,051

313,092 r

317,517

320,853

323,716

324,993

335,310

274,511
772

276,117
1,699

280,746
6,452

276,050
2,698

276,435
0

277,088
3,248

281,700
1,477

280,4%
4,167

280,594
5,901

281,532
13,947

5,677
7
0

5,603
26
0

5,538
293
0

5,612
76
0

5,600
0
0

5,571
36
0

5,539
11
0

5,534
168
0

5,534
195
0

5,534
855
0

87
202
0
586
31,294

28
224
0
655 r
31,264 r

94
192
0
541
32,060

45
223
0
807
31,541

35
232
0
715r
30,076 r

29
220
0
776
30,548

23
191
0
347
31,564

244
182
0
1,095
31,830

24
194
0
477
32,074

102
197
0
153
32,990

11,060
10,018
21,272

11,060
10,018
21,292 r

11,059
10,018
21,324

11,059
10,018
21,292 r

11,060
10,018
21,295 r

11,059
10,018
21,298

11,059
10,018
21,309

11,060
10,018
21,320

11,059
10,018
21,331

11,058
10,018
21,342

313,739
594

315,783 r
553

318,628
530

316,302 r
551

315,33 I r
542

316,410
539

319,409
535

319,953
531

318,149
529

317,314
522

5,666
236

5,729
211

11,390
309

5,291
212

5,620
195

5,744
213

5,923
267

6,284
257

13,697
297

21,297
438

5,534
233

5,612
267

5,773
290

5,592
294

5,611
268

5,768
276

5,667
297

5,708
293

5,756
289

5,%3
275

ABSORBING R E S E R V E F U N D S

15 Currency in circulation
16 Treasury cash holdings
Deposits, other than reserve balances, with
Federal Reserve Banks
17
Treasury
18
Foreign
19
Service-related balances and
adjustments
20
Other
21 Other Federal Reserve liabilities and
capital
22 Reserve balances with Federal
Reserve Banks

8,493

8,496

8,508

8,269

8,184

8,665

9,058

8,274

8,235

8,279

20,991

21,336 r

22,890

22,910

19,715r

22,279

22,084

24,814

20,450

23,641

Sept. 30

End-of-month figures
July

Aug.

Wednesday figures

Sept.

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

S U P P L Y I N G RESERVE F U N D S

1 Reserve Bank credit outstanding
U.S. government securities
2
Bought outright—System account
3
Held under repurchase agreements . . .
Federal agency obligations
4
Bought outright
5
Held under repurchase agreements . . .
6
Acceptances
Loans to depository institutions
7
Adjustment credit
8
Seasonal credit
9
Extended credit
10
Float
11
Other Federal Reserve assets
12 Gold stock
13 Special drawing rights certificate account .
14 Treasury currency outstanding

313,930

319,410 r

336,583

314,923

313,088 r

322,658

323,399

325,472

333,889

336,583

275,969
0

274,537
7,616

279,712
16,685

277,500
582

276,823
0

277,254
7,452

281,509
4,775

283,122
2,682

280,683
14,303

279,712
16,685

5,625
0
0

5,571
53
0

5,534
1,475
0

5,612
0
0

5,571
0
0

5,571
100
0

5,534
40
0

5,534
307
0

5,534
224
0

5,534
1,475
0

29
227
0
305
31,776

28
216
0
195r
31,195 r

425
184
0
-229
32,796

70
230
0
518
30,412

46
229
0
480"^
29,939"

31
208
0
737
31,305

20
181
0
-606
31,945

1,398
191
0
154
32,083

44
200
0
136
32,765

425
184
0
-229
32,7%

11,059
10,018
21,286

11,059
10,018
21,298 r

11,058
10,018
21,342

11,059
10,018
21,292 r

11,059
10,018
21,295 r

11,059
10,018
21,298

11,060
10,018
21,309

11,060
10,018
21,320

11,059
10,018
21,331

11,058
10,018
21,342

314,338
578

316,136 r
539

317,923
527

316,118 r
542

315,712 r
539

317,750
536

320,466
531

319,266
530

317,713
522

317,923
527

6,923
264

6,232
297

24,586
546

4,412
253

5,679
224

5,316
236

3,982
183

7,881
501

21,7%
310

24,586
546

5,473
220

5,768
254

5,963
295

5,592
321

5,611
283

5,768
302

5,667
278

5,708
328

5,756
256

5,%3
295

ABSORBING RESERVE F U N D S

8,846

9,275

8,023

8,086

8,010

9,032

8,119

8,104

8,107

8,023

19,651

23,284 r

21,138

21,967

19,403r

26,095

26,560

25,550

21,836

21,138

1. For amounts of cash held as reserves, see table 1.12.
2. Includes securities loaned—fully guaranteed by U.S. government securities
pledged with Federal Reserve Banks—and excludes any securities sold and
scheduled to be bought back under matched sale-purchase transactions.

3. Excludes required clearing balances and adjustments to compensate for
float,

Domestic Financial Statistics • December 1992

1.12 RESERVES AND BORROWINGS

Depository Institutions1

Millions of dollars
Prorated monthly averages of biweekly averages

Reserve classification

1
2
3
4
5
6
7
8
9
10

Reserve balances with Reserve Banks 2
Total vault cash 3
Applied vault cash
Surplus vault cash
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks
Seasonal borrowings
Extended credit 9

...

1989

1990

1991

1992

Dec.

Mar.

Apr.

May

June

July

Aug.

Sept.

35,436
29,828
27,374
2,454
62,810
61,887
923
265
84
20

30,237
31,786
28,884
2,903
59,120
57,456
1,664
326
76
23

26,659
32,513
28,872
3,641
55,532
54,553
979
192
38
1

28,057
31,647
28,225
3,422
56,282
55,254
1,028
91
32
2

22,655
31,071
27,800
3,271
50,455
49,318
1,137
90
47
2

21,071
31,197
27,754
3,442
48,825
47,825
1,000
155
98
0

21,223
31,729
28,273
3,456
49,4%
48,584
913
229
149
0

21,206
32,145
28,617
3,528
49,823
48,857
965
284
203
0

21,272 r
32,457
28,890
3,567
50,162 r
49,227 r
935 r
251
223
0

22,629
32,343
28,894
3,448
51,523
50,517
1,006
287
193
0

Biweekly averages of daily figures for weeks ending
1992

1
2
3
4
5
6
7
8
9
10

Reserve balances with Reserve Banks
Total vault cash 3
Applied vault cash 4 ,
Surplus vault cash
Total reserves 6
Required reserves
Excess reserve balances at Reserve Banks
Total borrowings at Reserve Banks 8
Seasonal borrowings
Extended credit 9

...

May 27

June 10

June 24

July 8

July 22

Aug. 5

Aug. 19

Sept. 2

Sept. 16

Sept. 30

20,356
32,069
28,418
3,651
48,774
47,277
1,497
157
113
0

21,374
30,909
27,591
3,318
48,965
48,492
474
152
125
0

21,205
31,946
28,487
3,459
49,692
48,521
1,171
188
150
0

21,014
32,589
28,910
3,679
49,924
48,884
1,041
455
187
1

21,277
32,233
28,779
3,455
50,056
49,106
950
215
199
0

21,264
31,613
28,105
3,508
49,369
48,447
922
241
222
0

21,515
32,687
29,166
3,521
50,681
49,856
825
249
221
0

20,991 r
32,541
28,8%
3,645
49,887 r
48,820 r
l,067 r
258
226
0

23,439
31,625
28,438
3,187
51,876
51,081
795
321
187
0

22,052
33,033
29,351
3,682
51,403
50,1%
1,207
259
1%
0

1. Data in this table also appear in the Board's H.3 (502) weekly statistical
release. For ordering address, see inside front cover.
2. Excludes required clearing balances and adjustments to compensate for float
and includes other off-balance-sheet " a s - o f ' adjustments.
3. Total "lagged" vault cash held by depository institutions subject to reserve
requirements. Dates refer to the maintenance periods during which the vault cash
can be used to satisfy reserve requirements. Under contemporaneous reserve
requirements, maintenance periods end thirty days after the lagged computation
periods during which the balances are held.
4. All vault cash held during the lagged computation period by "bound"
institutions (that is, those whose required reserves exceed their vault cash) plus
the amount of vault cash applied during the maintenance period by "nonbound"
institutions (that is, those whose vault cash exceeds their required reserves) to
satisfy current reserve requirements.

5. Total vault cash (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. Also includes adjustment credit.
9. Consists of borrowing at the discount window under the terms and conditions established for the extended credit program to help depository institutions
deal with sustained liquidity pressures. Because there is not the same need to
repay such borrowing promptly as there is with traditional short-term adjustment
credit, the money market impact of extended credit is similar to that of
nonborrowed reserves.

Money Stock and Bank Credit
1.13 SELECTED BORROWINGS IN IMMEDIATELY AVAILABLE FUNDS

Large Banks1

Millions of dollars, averages of daily figures
1992, week ending Monday
Source and maturity

1
2
3
4

5
6
7
8

Federal funds purchased, repurchase agreements,
and
other selected
borrowings
From commercial banks in the United States
For one day or under continuing contract
For all other maturities
From other depository institutions, foreign banks and
official institutions, and U.S. government agencies
For one day or under continuing contract
For all other maturities
Repurchase agreements on U.S. government
agency
securities
Brokers and nonbank dealers in securities
For one day or under continuing contract
For all other maturities
All other customers
For one day or under continuing contract
For all other maturities

and

July 6

July 13

July 20

July 27

Aug. 3

Aug. 10

Aug. 17

Aug. 24

Aug. 31

74,072 r
19,118

74,503
16,208

70,973
15,230

69,234
14,941

72,386
15,291

75,784
15,877

72,514
15,772

69,943
15,760

69,674
15,420

17,450
19,502

18,725
19,694

18,371
19,555

21,257
20,271

19,314
19,092

17,607
19,173

17,988
20,827

18,137
19,917

17,874
19,493

9,589"
14,051

10,969
13,649

11,284
12,812

11,841
11,875

12,644
12,086

13,697
14,188

13,289
15,289

15,753
14,874

15,305
15,983

20,553 r
15,292r

22,983 r
12,826r

22,610 r
12,903 r

24,561 r
12,770

24,609
12,675

24,862
12,672

24,794
12,914

25,358
13,282

25,113
13,568

48,216 r
22,205 r

42,555
21,153 r

43,544
17,929"

40,404
17,881

45,321
16,393

41,718
20,327

42,271
19,248

40,058
18,911

42,411
17,663

federal

MEMO: Federal funds loans and resale agreements in
immediately available funds in maturities of one day
or under continuing contract
9 To commercial banks in the United States
10 To all other specified customers 2

1. Banks with assets of $4 billion or more as of Dec. 31, 1988.
Data in this table also appear in the Board's H.5 (507) weekly statistical release.
For ordering address, see inside front cover.

2. Brokers and nonbank dealers in securities, other depository institutions,
foreign banks and official institutions, and U.S. government agencies.

Domestic Financial Statistics • December 1992

1.14 FEDERAL RESERVE BANK INTEREST RATES
Percent per year
Current and previous levels
Adjustment credit 1
Federal Reserve
Bank

Boston
N e w York
Philadelphia
Cleveland
Richmond
Atlanta

On
10/30/92
3

Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco . . .

Seasonal credit 2

Effective date

Previous rate

On
10/30/92

7/2/92
7/2/92
7/2/92
7/6/92
7/2/92
7/2/92

3.5

3.20

7/2/92
7/7/92
7/2/92
7/2/92
7/2/92
7/2/92

3.5

3.20

Extended credit 3

Effective date

Previous rate

On
10/30/92

10/29/92
10/29/92
10/29/92
10/29/92
10/29/92
10/29/92

3.15

3.70

10/29/92
10/29/92
10/29/92
10/29/92
10/29/92
10/29/92

3.15

3.70

Effective date

Previous rate

10/29/92
10/29/92
10/29/92
10/29/92
10/29/92
10/29/92

3.65

10/29/92
10/29/92
10/29/92
10/29/92
10/29/92
10/29/92

3.65

Range of rates for adjustment credit in recent years 4

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

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

6.5
6.5
7
7
7.25
7.25
7.75
8
8.5
8.5
9.5
9.5

1981—May

In effect Dec. 31, 1977
1978-—Jan.
May
July
Aug.
Sept.
Oct.
Nov.

9
70
11 . .
17
3 , .
10
71
77
16
70
1
3

1979-- J u l y 70
Aug. 17
70
Sept. 19
71
Oct.
8 . .
10
1980-- F e b .
May
June
July
Sept.
Nov.
Dec.

15
19
79
30
13 . .
16
79
78 . .
26..
17
5

Effective date

10
10-10.5
10.5
10.5-11
11
11-12
12
12-13
13
12-13
12
11-12
11
10
10-11
11
12
12-13

10
10.5
10.5
11
11
12
12
13
13
13
12
11
11
10
10
11
12
13

Nov.

5
8
2

Dec.

Effective date

Range (or
level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

1986—Aug. 21
22

5.5-6
5.5

5.5
5.5

1987—Sept.

4
11

5.5-6
6

6
6

11.5-12
11.5
11-11.5
11
10.5
10-10.5
10
9.5-10
9.5
9-9.5
9
8.5-9
8.5-9
8.5

11.5
11.5
11
11
10.5
10
10
9.5
9.5
9
9
9
8.5
8.5

1988—Aug.

9
11

6-6.5

6.5

1989—Feb. 24

6.5-7
7

7
7

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.

7-7.5
7
6.5-7
6

7
7
6.5
6

1982—July

20
23
2
3
16
27
30
Oct. 12
13
Nov. 22
26
Dec. 14
15
17

Aug.

1984—Apr.

13-14
14
13-14
13
12

F.R.
Bank
of
N.Y.
14
14
13
13
12

27
1990—Dec. 19
1991—Feb.
Apr.
May
Sept.
Sept.
Nov.
Dec.
1992 —July

1
4
30
2
13
17
6
7
20
24
2
7

In effect Oct. 30, 1992
7
10
Apr. 21
July 11

1. Available on a short-term basis to help depository institutions meet temporary needs for funds that cannot be met through reasonable alternative sources.
The highest rate established for loans to depository institutions may be charged on
adjustment-credit loans of unusual size that result from a major operating problem
at the borrower's facility.
2. Available to help relatively small depository institutions meet regular
seasonal needs for funds that arise from a clear pattern of intrayearly movements
in their deposits and loans and that cannot be met through special industry
lenders. The discount rate on seasonal credit takes into account rates on market
sources of funds and ordinarily is reestablished on the first business day of each
two-week reserve maintenance period; however, it is never less than the discount
rate applicable to adjustment credit.
3. May be made available to depository institutions when similar assistance is
not reasonably available from other sources, including special industry lenders.
Such credit may be provided when exceptional circumstances (including sustained deposit drains, impaired access to money market funds, or sudden
deterioration in loan repayment performance) or practices involve only a particular institution, or to meet the needs of institutions experiencing difficulties
adjusting to changing market conditions over a longer period (particularly at times
of deposit disintermediation). The discount rate applicable to adjustment credit

Range (or
level)—
All F.R.
Banks

6.5

6.65
6
5.5-6
5.5
5-5.5
5
4.5-5
4.5
3.5-4.5
3.5

6
6
5.5
5.5
5
5
4.5
4.5
3.5
3.5

3-3.5
3

3
3

ordinarily is charged on extended-credit loans outstanding less than thirty days;
however, at the discretion of the Federal Reserve Bank, this time period may be
shortened. Beyond this initial period, a flexible rate somewhat above rates on
market sources of funds is charged. The rate ordinarily is reestablished on the first
business day of each two-week reserve maintenance period, but it is never less
than the discount rate applicable to adjustment credit plus 50 basis points.
4. For earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics,
1914-1941, and 1941-1970; and the Annual
Statistical Digest,
1970-1979.
In 1980 and 1981, the Federal Reserve applied a surcharge to short-term
adjustment-credit borrowings by institutions with deposits of $500 million or more
that had borrowed in successive weeks or in more than four weeks in a calendar
quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7,
1980. A surcharge of 2 percent was reimposed on N o v . 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 N o v . 17, 1981.

Policy Instruments

1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1
Requirements
Type of deposit 2

Net transaction
accounts3
$0 million-$42.2 million

1. Required reserves must be held in the form of deposits with Federal Reserve
Banks or vault cash. Nonmember institutions may maintain reserve balances with
a Federal Reserve Bank indirectly on a pass-through basis with certain approved
institutions. For previous reserve requirements, see earlier editions of the Annual
Report or the Federal Reserve Bulletin. Under provisions of the Monetary
Control Act, depository institutions include commercial banks, mutual savings
banks, savings and loan associations, credit unions, agencies and branches of
foreign banks, and Edge corporations.
2. The Garn-St Germain Depository Institutions Act of 1982 (Public Law
97-320) requires that $2 million of reservable liabilities of each depository
institution be subject to a zero percent reserve requirement. The Board is to adjust
the amount of reservable liabilities subject to this zero percent reserve requirement each year for the succeeding calendar year by 80 percent of the percentage
increase in the total reservable liabilities of all depository institutions, measured
on an annual basis as of June 30. N o corresponding adjustment is to be made in
the event of a decrease. On Dec. 17, 1991, the exemption was raised from $3.4
million to $3.6 million. The exemption applies in the following order: (1) net
negotiable order of withdrawal (NOW) accounts (NOW accounts less allowable
deductions); and (2) net other transaction accounts. The exemption applies only to
accounts that would be subject to a 3 percent reserve requirement.
3. Include all deposits against which the account holder is permitted to make
withdrawals by negotiable or transferable instruments, payment orders of withdrawal, and telephone and preauthorized transfers in excess of three per month
for the purpose of making payments to third persons or others. However, money
market deposit accounts (MMDAs) and similar accounts subject to the rules that

Percent of
deposits

Effective date

3
10

12/17/91
4/2/92

12/27/90

permit no more than six preauthorized, automatic, or other transfers per month,
of which no more than three may be checks, are not transaction accounts (such
accounts are savings deposits).
The Monetary Control Act of 1980 requires that the amount of transaction
accounts against which the 3 percent reserve requirement applies be modified
annually by 80 percent of the percentage change in transaction accounts held by
all depository institutions, determined as of June 30 each year. Effective Dec. 17,
1991, for institutions reporting quarterly, and Dec. 24, 1991, for institutions
reporting weekly, the amount was increased from $41.1 million to $42.2 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 Vi years was reduced from 3
percent to 1 Vz percent for the maintenance period that began Dec. 13, 1990, and
to zero for the maintenance period that began Dec. 27, 1990. The reserve
requirement on nonpersonal time deposits with an original maturity of 1V5 years
or more has been zero since Oct. 6, 1983.
For institutions that report quarterly, the reserve requirement on nonpersonal
time deposits with an original maturity of less than 1 Vt> years was reduced from 3
percent to zero on Jan. 17, 1991.
6. The reserve requirement on Eurocurrency liabilities was reduced from 3
percent to zero in the same manner and on the same dates as were the reserve
requirement on nonpersonal time deposits with an original maturity of less than
M years (see note 4).

A10

Domestic Financial Statistics • December 1992

1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1
Millions of dollars
1992
Type of transaction

1989

1990

1991
Feb.

Mar.

Apr.

May

June

July

Aug.

U . S . TREASURY SECURITIES

Outright transactions
transactions)

(excluding

matched

1
2
3
4

Treasury bills
Gross purchases
Gross sales
Exchanges
Redemptions

14,284
12,818
231,211
12,730

24,739
7,291
241,086
4,400

20,158
120
277,314
1,000

123
0
24,435
0

505
0
21,674
0

0
0
27,526
0

4,110
0
24,275
(f

306
0
22,392
0

0
0
27,755
0

271
0
25,041
0

5
6
7
8
9

Others within one year
Gross purchases
Gross sales
Maturity shifts
Exchanges
Redemptions

327
0
28,848
-25,783
500

425
0
25,638
-27,424
0

3,043
0
24,454
-28,090
1,000

0
0
6,020
-2,742
0

0
0
2,552
-2,512
0

0
0
1,100
-1,863
0

0
0
3,754
-5,225
0

0
0
2,152
-1,854
0

0
0
687
-1,669
0

0
0
5,415
-4,617
0

10
11
12
13

One to five years
Gross purchases
Gross sales
Maturity shifts
Exchanges

1,436
490
-25,534
23,250

250
200
-21,770
25,410

6,583
0
-21,211
24,594

1,027
0
-6,020
2,292

1,425
0
-2,552
2,512

0
0
-877
1,484

200 r
0
-2,113
4,311

2,278
0
-3,447
1,854

0
0
-216
1,478

400
0
-4,036
3,567

14
15
16
17

Five to ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges

287
29
-2,231
1,934

0
100
-2,186
789

1,280
0
-2,037
2,894

0
0
0
300

0
0
0
0

0
0
-223
379

0
0
-346
614

597
0
0
0

0
0
-471
191

0
0
-412
700

18
19
20
21

More than ten years
Gross purchases
Gross sales
Maturity shifts
Exchanges

284
0
-1,086
600

0
0
-1,681
1,226

375
0
-1,209
600

0
0
0
150

0
0
0
0

0
0
0
300

655
0
0
0

0
0
0
0

195
0
0
350

22
23
24

All maturities
Gross purchases
Gross sales
Redemptions

16,617
13,337
13,230

25,414
7,591
4,400

31,439
120
1,000

1,150
0
0

1,930
0
0

0
0
0

4,310
0

3,836
0
0

0
0
0

866
0
0

1,323,480
1,326,542

1,369,052
1,363,434

1,570,456
1,571,534

123,000
124,654

128,230
126,673

125,999
128,149

118,972
117,524

126,977
129,216

127,051
126,137

104,873
102,575

129,518
132,688

219,632
202,551

310,084
311,752

9,824
13,353

48,758
46,953

18,432
20,237

38,777
38,533

10,792
11,036

12,224
12,224

39,484
31,868

-10,055

24,886

29,729

-725

2,178

345

3,107 r

5,831

-914

6,184

0
0
442

0
0
183

0
5
292

0
0
0

0
0
49

0
0
160"

0
0
40

0
0
85

0
0
54

Repurchase
agreements2
33 Gross purchases
34 Gross sales

38,835
40,411

41,836
40,461

22,807
23,595

571
706

1,640
1,640

224
224

402
402

94
94

601
548

35 Net change in federal agency obligations

-2,018

1,192

-1,085

-135

-49

-40

-85

-1

36 Total net change in System Open Market
Account

-12,073

26,078

28,644

-860

2,178

295

5,791

-1,000

6,183

Matched
transactions
25 Gross sales
26 Gross purchases
Repurchase
agreements2
27 Gross purchases
28 Gross sales
29 Net change in U.S. government securities

F E D E R A L A G E N C Y OBLIGATIONS

Outright
transactions
30 Gross purchases
31 Gross sales
32 Redemptions

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

1,281
1,281

2,946

2. In July 1984 the Open Market Trading Desk discontinued accepting bankers
acceptances in repurchase agreements.

Federal Reserve Banks
1.18 FEDERAL RESERVE BANKS

All

Condition and Federal Reserve Note Statements1

Millions of dollars

Account
Sept. 2

Sept. 9

Wednesday

End of month

1992

Sept. 16

Sept. 23

Sept. 30

July 31

Aug. 31

Sept. 30

Consolidated condition statement

ASSETS

1 Gold certificate account
2 Special drawing rights certificate account
3 Coin
Loans
4 To depository institutions
5 Other
6 Acceptances held under repurchase agreements
Federal agency
obligations
7 Bought outright
8 Held under repurchase agreements

11,059
10,018
493

11,060
10,018
482

11,060
10,018
492

11,059
10,018
498

11,058
10,018
500

11,059
10,018
477

11,059
10,018
499

11,058
10,018
500

239
0
0

201
0
0

1,589
0
0

244
0
0

609
0
0

256
0
0

244
0
0

609
0
0

5,571
100

5,534
40

5,534
307

5,534
224

5,534
1,475

5,625
0

5,571
53

5,534
1,475

284,706

286,284

285,804

294,986

296,397

275,969

282,153

2%,397

10 Bought outright 2
11
Bills
12
Notes
13
Bonds
14 Held under repurchase agreements

277,254
136,626
107,822
32,807
7,452

281,509
137,049
110,876
33,584
4,775

283,122
138,162
111,376
33,584
2,682

280,683
135,072
112,026
33,584
14,303

279,712
133,752
112,376
33,584
16,685

275,%9
135,935
106,974
33,059
0

274,537
133,908
107,822
32,807
7,616

279,712
133,752
112,376
33,584
16,685

15 Total loans and securities

290,616

292,060

293,235

300,988

304,015

281,849

288,020

304,015

6,248
1,016

7,093
1,017

6,354
1,020

5,426
1,019

5,125
1,019

4,428
1,014

2,267
1,015

5,125
1,019

24,746
5,560

24,800
6,296

24,433
6,630

24,503
7,170

24,432
7,423

24,734
6,113

24,742
5,472

24,432
7,423

349,755

352,825

353,241

360,681

363,591

339,692

343,093

363,591

9 Total U.S. Treasury securities

16 Items in process of collection
17 Bank premises
Other assets
18 Denominated in foreign currencies
19 All other 4
20 Total assets
LIABILITIES

297,481

300,169

298,968

297,402

297,609

294,107

295,876

297,609

22 Total deposits

39,273

57,086

40,454

50,533

53,094

40,270

36,206

53,094

23
24
25
26

31,722
5,316
236
302

32,244
3,982
183
278

31,743
7,881
501
328

28,171
21,7%
310
256

27,666
24,586
546
295

25,302
6,923
264
220

29,422
6,232
297
254

27,666
24,586
546
295

3,971
1,938

-12,548
1,849

5,715
1,807

4,637
1,814

4,865
1,840

-3,531
1,988

1,736
1,960

4,865
1,840

342,662

346,556

346,944

354,387

357,407

332,834

335,778

357,407

2,958
2,652
1,484

2,959
2,652
659

2,972
2,652
674

2,974
2,652
669

2,977
2,652
555

2,931
2,652
1,276

2,957
2,652
1,707

2,977
2,652
555

33 Total liabilities and capital accounts

349,755

352,825

353,241

360,681

363,591

339,692

343,093

363,591

34 MEMO: Marketable U . S . Treasury securities held in
custody for foreign and international accounts

295,956

294,432

291,497

282,343

283,556

291,950

2%,756

283,556

21 Federal Reserve notes

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

27 Deferred credit items
^
28 Other liabilities and accrued dividends
29 Total liabilities
CAPITAL ACCOUNTS

30 Capital paid in
31 Surplus
32 Other capital accounts

Federal Reserve note statement

35 Federal Reserve notes outstanding (issued to Bank)
36
LESS: Held by Federal Reserve Bank
37
Federal Reserve notes, net
38
39
40
41

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

42 Total collateral

357,713
60,232
297,481

357,837
57,668
300,169

357,784
58,816
298,968

357,903
60,500
297,402

357,4%
59,887
297,609

360,881
66,774
294,107

357,972
62,0%
295,876

357,4%
59,887
297,609

11,059
10,018
0
276,403

11,060
10,018
0
279,091

11,060
10,018
0
277,890

11,059
10,018
0
276,326

11,058
10,018
0
276,533

11,059
10,018
0
273,030

11,059
10,018
0
274,799

11,058
10,018
0
276,533

297,481

300,169

298,968

297,402

297,615

294,107

295,876

297,615

1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly
statistical release. For ordering address, see inside front cover.
2. Includes securities loaned—fully guaranteed by U . S . Treasury securities
pledged with Federal Reserve Banks—and excludes securities sold and scheduled
to be bought back under matched sale-purchase transactions.

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

A12

Domestic Financial Statistics • December 1992

1.19 FEDERAL RESERVE BANKS

Maturity Distribution of Loan and Security Holding 1

Millions of dollars

Type and maturity grouping

Wednesday

End of month

1992

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

July 31

Aug. 31

Sept. 30

1 Total loans

239

201

1,589

244

609

256

244

609

85
153
0

64
137
0

1,570
19
0

211
33
0

506
103
0

125
131
0

110
134
0

506
103
0

5 Total acceptances

0
0
0

7
a

Within fifteen days
Sixteen days to ninety days
Ninety-one days to one year

9 Total U.S. Treasury securities

284,706

286,284

285,804

294,986

296,397

275,969

282,153

296,397

Within fifteen days 2
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

18,343
68,373
89,647
66,029
16,415
25,899

17,798
66,664
89,997
68,029
17,165
26,631

19,062
64,481
89,937
68,529
17,165
26,631

27,251
67,652
87,108
69,179
17,165
26,631

24,468
67,062
91,423
69,648
17,165
26,631

9,389
68,366
89,667
67,064
15,932
25,549

13,027
70,616
90,167
66,029
16,415
25,899

24,468
67,062
91,423
69,648
17,165
26,631

16 Total federal agency obligations

5,671

5,574

5,841

5,758

7,009

5,625

5,624

7,009

Within fifteen days 2
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

180
911
1,278
2,391
757
154

120
911
1,278
2,354
757
154

558
715
1,223
2,454
737
154

475
715
1,223
2,454
737
154

1,685
747
1,221
2,465
737
154

98
836
1,297
2,483
757
154

463
573
1,286
2,391
757
154

1,685
747
1,221
2,465
737
154

10
11
12
13
14
15

17
18
19
20
21
22

1. Holdings under repurchase agreements are classified as maturing within 15
days in accordance with maximum maturity of the agreements.

Monetary and Credit Aggregates

A13

1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE 1
Billions of dollars, averages of daily figures
1992
1988
Dec.

Item

1989
Dec.

1990
Dec.

1991
Dec.
Feb.

Total reserves 3
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base

Apr.

May

June

July

Aug.

Sept.

Seasonally adjusted

A D J U S T E D FOR
C H A N G E S IN RESERVE REQUIREMENTS 2

1
2
3
4
5

Mar.

40.47
38.75
40.00
39.42
256.97

40.56
40.29
40.31
39.64
267.77

41.83
41.51
41.53
40.17
293.29

45.60
45.41
45.41
44.62
317.25

47.75
47.67
47.67
46.68
323.41

48.48
48.39"
48.39
47.45
324.51

49.00
48.91
48.91
47.86
326.50

49.49
49.34
49.34
48.49
328.58

49.49
50.32
49.23
49.01 r
49.21" 50.07
49.01" 49.21" 50.07
48.32
48.52
49.39
329.64 332.26 336.87"

51.35
51.06
51.06
50.34
341.55

49.52
49.24
49.24
48.56
334.09

49.81"
49.56"
49.56"
48.88
336.59"

51.11
50.83
50.83
50.11
340.11

49.82
49.54
49.54
48.86
339.87
.97
.28

50.16"
49.91
49.91
49.23
342.49"
.94
.25

51.52
51.24
51.24
50.52
346.21
1.01
.29

Not seasonally adjusted
6
7
8
9
10

Total reserves
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base
N O T A D J U S T E D FOR
C H A N G E S IN RESERVE REQUIREMENTS

11
12
13
14
15
16
17

Total reserves"
Nonborrowed reserves
Nonborrowed reserves plus extended credit
Required reserves
Monetary base
Excess reserves 1 3
Borrowings from the Federal Reserve

41.65
39.93
41.17
40.60
260.41

41.77
41.51
41.53
40.85
271.18

43.07
42.74
42.77
41.40
296.68

63.75
62.03
63.28"
62.70
283.00
1.05
1.72

62.81
62.54
62.56
61.89
292.55
.92
.27

59.12
55.53
58.80" 55.34
58.82
55.34
57.46
54.55
313.70 333.61
1.66
.98
.33
.19

47.69
47.59
47.60
46.66
322.69

50.02" 48.62
49.93" 48.47
48.47
49.93
48.88
47.62
327.45 328.37

49.25
49.02
49.02
48.33
330.94"

56.28
56.19
56.19
55.25
335.82
1.03
.09

50.46" 48.83" 49.50
50.37" 48.67
49.27
50.37
48.67
49.27
49.32
47.83" 48.58
332.69 333.79 336.43
1.14
.91
.09
.16"
.23

1. Latest monthly and biweekly figures are available from the Board's H.3 (502)
weekly statistical release. Historical data and estimates of the impact on required
reserves of changes in reserve requirements are available from the Monetary and
Reserves Projections Section, Division of Monetary Affairs, Board of Governors
of the Federal Reserve System, Washington, DC 20551.
2. Figures reflect adjustments for discontinuities, or "breaks," associated with
regulatory changes in reserve requirements. (See also table 1.10)
3. Seasonally adjusted, break-adjusted total reserves equal seasonally
adjusted, break-adjusted required reserves (line 4) plus excess reserves (line 16).
4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally
adjusted, break-adjusted total reserves (line 1) less total borrowings of depository
institutions from the Federal Reserve (line 17).
5. Extended credit consists of borrowing at the discount window under
the terms and conditions established for the extended credit program to help
depository institutions deal with sustained liquidity pressures. Because there is
not the same need to repay such borrowing promptly as there is with traditional
short-term adjustment credit, the money market impact of extended credit is
similar to that of nonborrowed reserves.
6. The seasonally adjusted, break-adjusted monetary base consists of (1)
seasonally adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally
adjusted currency component of the money stock, plus (3) (for all quarterly
reporters on the "Report of Transaction Accounts, Other Deposits and Vault
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

46.98" 46.85
46.78
46.77
46.78
46.77
46.00
45.78
321.07" 320.38

55.24
55.16
55.16
54.17
333.19
1.07"
.08

1.00

changes in reserve requirements, a multiplicative procedure is used to estimate
what required reserves would have been in past periods had current reserve
requirements been in effect. Break-adjusted required reserves 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 weekly reporters whose vault cash exceeds
their required reserves) the break-adjusted difference between current vault cash
and the amount applied to satisfy current reserve requirements.
10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no adjustments to eliminate the effects of discontinuities associated
with changes in reserve requirements.
11. Reserve balances with Federal Reserve Banks plus vault cash used to
satisfy reserve requirements.
12. The monetary base, not break-adjusted and not seasonally adjusted,
consists of (1) total reserves (line 11), plus (2) required clearing balances and
adjustments to compensate for float at Federal Reserve Banks, plus (3) the
currency component of the money stock, plus (4) (for all quarterly reporters on
the "Report of Transaction Accounts, Other Deposits and Vault 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 the introduction of changes in reserve requirements
(CRR), currency and vault cash figures have been measured over the computation
periods ending on Mondays.
13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14).

A14

Domestic Financial Statistics • December 1992

1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES1
Billions of dollars, averages of daily figures
1992
1988
Dec.

Item

1989
Dec.

1990
Dec.

1991
Dec.
June

July

Aug.

Sept.

960.8
3,460.8"
4,162.0
5,005.3"
11,526.2

973.6
3,469.3"
4,172.8"
5,023.0
11,569.1

989.6
3,479.7
4,178.1
n.a.
n.a.

Seasonally adjusted

1
2
3
4
5

Measures2
Ml
M2
M3
L
Debt

6
7
8
9

Ml
components
Currency 3
Travelers checks
Demand deposits 5
Other checkable deposits 6

Nontransaction
10 In M2
11 In M3 8

786.9
3,071.1
3,923.1
4,677.l r
9,326.3 r

794.1
3,227.3
4,059.8
4,890.6 r
10,076.7 r

826.1
3,339.0
4,114.6
4,965.2 r
10,751.3 r

898.1
3,439.9
4,171.0
4,988.l r
ll,200.4 r

212.3
7.5
286.5
280.6

222.6
7.4
279.0
285.1

246.8
8.3
277.1
293.9

267.3
8.2
289.5
333.2

2,284.2
852.0

2,433.2
832.5

2,512.9
775.6

2,541.8
731.1

2,511.6"
702.5"

2,499.9"
701.2"

2,495.8"
703.5"

2,490.1
698.4

951.8
3,463.4 r
4,165.9"
5,013.1 r
11,481.7"
276.2
7.9
311.0
356.7

279.0
7.8
315.6
358.4"

282.3
7.9
320.7
362.7

286.4
8.3
327.8
367.1

components

Commercial
banks
12 Savings deposits, including MMDAs
13 Small time deposits
14 Large time deposits 1 0 , 11

542.7
447.0
366.9

541.5 r
531.0
398.2

581.9
606.4
374.0

664.9
598.5
354.0

710.8
551.5"
325.5

716.3
543.8
319.0"

724.4
535.1"
316.3"

735.0
527.8
311.9

Thrift institutions
15 Savings deposits, including MMDAs
16 Small time deposits
17 Large time deposits 1 0

383.5
585.9
174.3

349.7
617.5
161.1

338.8
562.3
120.9

377.7
464.5
83.1

416.2
404.6
69.8

418.0
398.0
69.5

421.1
390.8
68.2

424.9
384.4
68.0

Money market mutual funds
18 General purpose and broker-dealer .
19 Institution-only

241.9
91.0

316.3
107.2

348.9
133.7

360.5
179.1

354.2"
199.7

350.8"
207.7

349.1"
217.2

344.1
217.2

2,101.5
7,224.8 r

2,249.5 r
7,827.2 r

2,493.4 r
8,258.0"

2,764.8 r
8,435.6 r

2,942.0"
8,539.7"

2,968.2"
8,558.0"

Debt
components
20 Federal debt
21 Nonfederal debt

2,991.6
8,577.5

n.a.
n.a.

971.1
3,468.4"
4,175.5"
5,016.6
11,531.1

984.0
3.471.1
4.169.2
n.a.
n.a.

282.9
8.8
319.2
360.2"

284.7
8.9
325.4
365.0

2,497.3"
707.2"

2,487.2
698.1

Not seasonally adjusted

22
23
24
25
26

Measures2
Ml
M2
M3
L
Debt

27
28
29
30

Ml
components
Currency
Travelers checks 4
Demand deposits 5
Other checkable deposits 6

804.1
3,083.8
3,934.7
4,694.2"
9,312.5"

811.9
3,240.0
4,070.3
4,909.9"
10,063.6"

844.1
3,351.9
4,124.7
4,984.9"
10,739.9"

917.3
3,453.7
4,181.7
5,008.3"
11,190.5"

214.8
6.9
298.9
283.5

225.3
6.9
291.5
288.1

249.5
7.8
289.9
296.9

270.0
7.7
303.0
336.5

2,279.7
850.8

2,428.1
830.3

2,507.8
772.8

Commercial
banks
33 Savings deposits, including MMDAs
34 Small time deposits .
35 Large time deposits 1 0 ,

543.8
446.0
365.9

543.0
529.5
397.1

Thrift institutions
36 Savings deposits, including MMDAs
37 Small time deposits
38 Large time deposits 1 0

381.1
584.9
175.2

Money market mutual funds
39 General purpose and broker-dealer
40 Institution-only
Repurchase
41 Overnight
42 Term

Nontransaction
31 In M2
32 In M3 8

952.1
3,459.3"
4,163.0"
5,000.3"
11,434.0"

963.3
3,463.9"
4,163.0"
4,997.0"
11,480.8"

277.3
8.2
310.6
356.1

280.8
8.6
317.2
356.6

2,536.5
728.0

2,507.2"
703.7"

2,500.6"
699.2"

580.0
606.3
373.0

662.4
598.7
352.8

714.1
549.5"
326.8"

719.9
543.6
318.9

726.2
534.8
318.0"

734.0
527.4
313.1

347.6
616.0
162.0

337.7
562.2
120.6

376.3
464.6
82.8

418.2
403.2
70.1

420.1
397.8
69.4

422.2
390.5
68.6

424.3
384.1
68.3

240.8
91.4

314.6
107.8

346.8
134.4

358.1
180.3

349.8"
195.7

346.4"
202.2

347.4"
213.8

343.0
210.0

83.2
227.4

77.5
178.5

74.7
158.3

76.3
127.7

72.4
125.3"

72.9"
123.3"

76.1"
122.5"

74.3
121.1

2,098.9
7,213.5"

2,247.5
7,816.2"

2,491.3
8,248.6"

2,765.0
8,425.5"

2,912.2
8,521.9"

2,937.5
8,543.3"

components

agreements

and

Debt
components
43 Federal debt
44 Nonfederal debt
For notes see following page.

eurodollars

2,970.3
8,560.8

n.a.
n.a.

Monetary and Credit Aggregates

A15

NOTES TO TABLE 1.21
1. Latest monthly and weekly figures are available from the Board's H.6 (508)
weekly statistical release. Historical data are available from the Money and
Reserves Projection Section, Division of Monetary Affairs, Board of Governors of
the Federal Reserve System, Washington, DC 20551.
2. Composition of the money stock measures and debt is as follows:
Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults
of depository institutions; (2) travelers checks of nonbank issuers; (3) demand
deposits at all commercial banks other than those due to depository institutions,
the U.S. government, and foreign banks and official institutions, less cash items in
the process of collection and Federal Reserve float; and (4), other checkable
deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and
automatic transfer service (ATS) accounts at depository institutions, credit union
share draft accounts, and demand deposits at thrift institutions. Seasonally
adjusted Ml is computed by summing currency, travelers checks, demand
deposits, and OCDs, each seasonally adjusted separately.
M2: Ml plus (1) overnight (and continuing-contract) repurchase agreements
(RPs) issued by all depository institutions and overnight Eurodollars issued to
U.S. residents by foreign branches of U.S. banks worldwide, (2) savings (including MMDAs) and small time deposits (time deposits—including retail RPs—in
amounts of less than $100,000), and (3) balances in both taxable and tax-exempt
general purpose and broker-dealer money market funds. Excludes individual
retirement accounts (IRAs) and Keogh balances at depository institutions and
money market funds. Also excludes all balances held by U.S. commercial banks,
money market funds (general purpose and broker-dealer), foreign governments
and commercial banks, and the U.S. government. Seasonally adjusted M2 is
computed by adjusting its non-Mi component as a whole and then adding this
result to seasonally adjusted M l .
M3: M2 plus (1) large time deposits and term RP liabilities (in amounts of
$100,000 or more) issued by all depository institutions, (2) term Eurodollars held
by U.S. residents at foreign branches of U.S. banks worldwide and at all banking
offices in the United Kingdom and Canada, and (3) balances in both taxable and
tax-exempt, institution-only money market funds. Excludes amounts held by
depository institutions, the U . S . government, money market funds, and foreign
banks and official institutions. Also excluded is the estimated amount of overnight
RPs and Eurodollars held by institution-only money market funds. Seasonally
adjusted M3 is computed by adjusting its non-M2 component as a whole and then
adding this result to seasonally adjusted M2.
L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term

Treasury securities, commercial paper, and bankers acceptances, net of money
market fund holdings of these assets. Seasonally adjusted L is computed by
summing U.S. savings bonds, short-term Treasury securities, commercial paper,
and bankers acceptances, each seasonally adjusted separately, and then adding
this result to M3.
Debt: Debt of domestic nonfinancial sectors consists of outstanding credit
market debt of the U.S. government, state and local governments, and private
nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers
acceptances, and other debt instruments. Data are derived from the Federal
Reserve Board's flow of funds accounts. Debt data are based on monthly
averages. This sum is seasonally adjusted as a whole.
3. Currency outside the U . S . Treasury, Federal Reserve Banks, and vaults of
depository institutions.
4. Outstanding amount of U . S . dollar-denominated travelers checks of nonbank issuers. Travelers checks issued by depository institutions are included in
demand deposits.
5. Demand deposits at commercial banks and foreign-related institutions other
than those due to depository institutions, the U.S. government, and foreign banks
and official institutions, less cash items in the process of collection and Federal
Reserve float.
6. Consists of NOW and ATS account balances at all depository institutions,
credit union share draft account balances, and demand deposits at thrift institutions.
7. Sum of (1) overnight RPs and overnight Eurodollars, (2) money market fund
balances (general purpose and broker-dealer), (3) MMDAs, and (4) savings and
small time deposits.
8. Sum of (1) large time deposits, (2) term RPs, (3) term Eurodollars of U . S .
residents, and (4) money market fund balances (institution-only), less a consolidation adjustment that represents the estimated amount of overnight RPs and
Eurodollars held by institution-only money market funds.
9. Small time deposits—including retail RPs—are those issued in amounts of
less than $100,000. All IRAs and Keogh accounts at commercial banks and thrift
institutions are subtracted from small time deposits.
10. Large time deposits are those issued in amounts of $100,000 or more,
excluding those booked at international banking facilities.
11. Large time deposits at commercial banks less those held by money market
funds, depository institutions, and foreign banks and official institutions.

A16
1.22

Domestic Financial Statistics • December 1992
B A N K DEBITS A N D DEPOSIT TURNOVER1
Debits are in billions of dollars; turnover is ratio of debits to deposits; monthly data are at annual rates
1992
Bank group, or type of customer

1989 2

1990 2

1991 2
Feb.

D E B I T S TO

Mar.

Apr.

May

June

July

Seasonally adjusted

Demand
deposits
1 All insured banks
2 Major N e w York City b a n k s . .
3 Other banks
4 A T S - N O W accounts 4
5 Savings deposits

256.150.4
129,319.9
126.830.5

277,916.3
131,784.0
146,132.3

281,050.1
140.905.5
140.144.6

298,098.7
154,751.0
143,347.7

305,837.0
164,171.5
141,665.5

315,651.2
167,177.5
148,473.7

292,177.4
154,225.3
137,952.1

302.259.2
149.743.3
152,515.9

336,868.4
179,593.4
157,275.0

2,910.5
547.5

3,349.6
558.8

3,624.6
1,377.4

3,787.2
3,142.5

3,670.2
3,361.0

3,957.0
3,356.5

3,552.6
3,241.4

4,070.7
3,838.9

4,024.0
3,724.9

735.1
3,421.5
408.3

800.6
3,804.1
467.7

817.6
4,391.9
449.6

817.6
4,633.3
432.8

832.5
4,974.4
423.7

857.4
5,029.1
443.3

771.2
4,438.0
400.9

814.2
4,470.1
451.6

910.5
5,425.1
466.9

15.2
3.0

16.5
2.9

16.1
3.3

15.1
4.7

14.5
4.9

15.6
4.7

13.7
4.4

15.6
5.1

15.3
5.0

DEPOSIT TURNOVER

6
7
8
9
10

Demand
deposits3
All insured banks
Major N e w York City b a n k s . .
Other banks
A T S - N O W accounts 4
Savings deposits

D E B I T S TO

Not seasonally adjusted

Demand
deposits
11 All insured banks
12 Major N e w York City b a n k s . .
13 Other banks
14 A T S - N O W accounts 4
15 MMDAs 6
16 Savings deposits

256,133.2
129,400.1
126,733.0

277,400.0
131,784.7
145,615.3

280,922.8
140,563.0
140,359.7

276,158.6
143,476.0
132,682.6

313,513.5
168,122.2
145,391.3

314,388.6
164,994.4
149,394.3

290,950.2
153,163.7
137,786.5

311,175.8
154,953.8
156,222.0

336,160.9
178,555.6
157,605.3

2,910.7
2,677.1
546.9

3,342.2
2,923.8
557.9

3,622.4
n.a
1,408.3

3,450.5
n.a
2,872.0

3,747.2
n.a
3,363.7

4,104.5
n.a
3,459.2

3,515.5
n.a
3,031.2

4,032.5
n.a
3,472.9

3,925.6
n.a
3,461.5

735.4
3,426.2
408.0

799.6
3,810.0
466.3

817.5
4,370.1
450.6

778.4
4,387.6
412.0

878.2
5,308.9
446.9

849.3
5,042.4
442.7

785.8
4,551.3
409.3

842.5
4,668.3
464.7

903.0
5,312.2
465.4

15.2
7.9
2.9

16.4
8.0
2.9

16.1
n.a
3.4

13.7
n.a
4.2

14.7
n.a
4.9

15.7
n.a
4.9

13.7
n.a
4.3

15.6
n.a
4.9

15.2
n.a
4.8

DEPOSIT TURNOVER

Demand
deposits3
17 All insured banks
18 Major N e w York City b a n k s . .
19 Other banks
20 A T S - N O W accounts 4
21 MMDAs 6
22 Savings deposits

1. Historical tables containing revised data for earlier periods can be obtained
from the Banking and Money Market Statistics Section, Division of Monetary
Affairs, Board of Governors of the Federal Reserve System, Washington, DC
20551.
Data in this table also appear on the Board's G.6 (406) monthly statistical
release. For ordering address, see inside front cover.
2. Annual averages of monthly figures.

3. Represents accounts of individuals, partnerships, and corporations and of
states and political subdivisions.
4. Accounts authorized for negotiable orders of withdrawal (NOWs) and
accounts authorized for automatic transfer to demand deposits (ATSs).
5. Excludes ATS and N O W accounts.
6. Money market deposit accounts.

Commercial Banking Institutions
1.23 LOANS AND SECURITIES

A17

All Commercial Banks1

Billions of dollars, averages of W e d n e s d a y figures

1991

1992

item
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

2,865.9 r

2,870.0

2,870.0"

2,882.9 r

2,898.4

615.4
174.3 r
2,080.2
596.4
7.6

630.3 r
174.6 r
2,078.0"
594. l r
7.4

634.5
174.9
2,089.1
596.6
7.2

Seasonally adjusted
1 Total loans and securities 1
2 U.S. government securities
i Other securities
4 Total loans and leases 1
Commercial and industrial . . . . .
6
Bankers acceptances held . . .
7
Other commercial and
industrial
8
U.S. addressees 3
9
Non-U.S. addressees 3
10
Real estate
11
Individual
12
Security
13
Nonbank financial
institutions
14
Agricultural
15
State and political
subdivisions
16
Foreign banks
17
Foreign official institutions
18
Lease-financing receivables
19
All other loans

2,805.5

2,822.8

2,838.4

2,849.0

538.7
177.9
2,088.9
622.6
6.6

550.8
178.8
2,093.2
621.7
7.2

562.6
179.2
2,096.5
617.9
7.3

565.7
178.5r
2,104.7
616.6
7.5

616.1
609.4
6.7
869.8
364.2
51.1

614.6
607.9
6.7
871.9
363.1
53.5

610.6
603.2
7.4
873.1
363.5
54.5

609.1
602.7
6.4
873.3
363.1
59.4

37.2
34.1

37.8
33.8

40.6
34.0

29.7
6.6
2.4
31.6
39.5

29.4
6.9
2.5
31.5
41.1

29.1
7.4
2.4
31.7
42.4

2,849.5

2,855.8 r

570.4
178.6
2,100.5
612.2
7.7

2,868.3 r

578.6
175.6
2,101.6 r
609.5
7.6

590.6
175.6
2,102.1 r
606.6 r
7.2

599.1
173.9
2,092.9"
603.0
7.4

608.0"
172.3 r
2,089.7
598.9
6.9

604.5
598.1
6.4
877.0
363.6
57.1

601.9
595.4
6.5
878.7
362.1
60.4

599.3
592.7
6.6
880.9
360.8
65.2

595.6
588.8
6.8
882.1
359.2
61.9

592.0
585.3
6.7
881.1
359.6
64.3

588.7 r
581.6
7.1
879.2
359.3
61.1

586.7 r
579.7
7.0
878.4
357.9
63.0

589.4
582.2
7.2
882.3
357.2
66.7

40.3
33.7

41.4
33.5

41.9
34.2

41.0
34.2

41.3
34.0

40.4
34.3

38.6
34.3 r

39.5
34.7

42.0
34.8

28.1
7.2
2.3
31.5
49.2

28.2
6.7
2.2
31.6
47.0

28.2
6.5
2.2
31.6
46.4

28.0
6.6
2.1
31.5
45.3

27.7
7.2
2.1
31.4
42.9

27.5
8.0
2.1
31.6
42.0

27.0
8.3
2.2
30.6
43.2

26.6
7.6
2.2
30.3
43.7

26.6
8.6
2.2
30.4
41.7

2,870.9

2,862.5 r

2,879.5 r

2,897.8

612.7
173.4 r
2,076.4
596.2
7.2

628. l r
174.7 r
2,076.6
592.5
7.2

632.4
174.8
2,090.6
593.9
7.1

Not seasonally adjusted
20 Total loans and securities 1

2,808.3

2,828.1

2,844.8

2,845.7

21 U.S. government securities
22 Other securities
23 Total loans and leases 1
24
Commercial and industrial . . . . .
25
Bankers acceptances held . . .
26
Other commercial and
industrial
27
U . S . addressees
28
Non-U.S. addressees
29
Real estate
30
Individual
31
Security
32
Nonbank financial
institutions
33
Agricultural
34
State and political
subdivisions
35
Foreign banks
36
Foreign official institutions
37
Lease-financing receivables . . . .
38
All other loans

537.6
178.3
2,092.4
621.1
6.6

551.7
179.0
2,097.4
620.4
7.3

558.5
179.5
2,106.7
619.2
7.6

565.2
179.1
2,101.4
613.5
7.5

614.5
608.3
6.2
871.2
365.1
50.8

613.1
606.9
6.2
873.2
364.5
53.5

611.6
604.6
7.0
873.4
368.1
55.1

36.9
35.0

38.1
34.1

29.8
6.9
2.4
31.8
41.6

29.4
7.3
2.5
31.6
42.6

2,856.5

574.3
178.6r
2,099.1
611.4
7.8

583.9
175.7r
2,096.9
612.1
7.5

605.9
599.1
6.9
872.7
367.4
59.0

603.6
596.8
6.8
874.0
363.6
61.7

41.9
34.0

40.7
33.2

29.0
7.9
2.4
31.7
44.1

28.5
7.0
2.3
31.8
45.4

1. Adjusted to exclude loans to commercial banks in the United States.
2. Includes nonfinancial commercial paper held.

2,852.1

2,867.4 r

2,861.5 r

592.8
175.2
2,099.3
609.4
7.0

599.2
173.6
2,088.7
605.4
7.4

607.0
172.4
2,091.5
600.9
7.0

604.7
598.0
6.7
875.2
359.6
62.2

602.4
595.5
6.9
879.6
358.2
66.7

598.0
591.2
6.8
882.8
357.6
58.5

593.9
586.9
7.0
881.4
357.4
64.1

589.0
581.8
7.1
880.4
356.6
58.9

585.2
578.3
7.0
880.4
357.0
61.1

586.8
579.6
7.1
883.3
358.5
64.6

41.0
32.6

41.3
32.9

40.5
33.2

40.6
33.6 r

40.7
34.5

38.8
35.0

39.7
35.6

41.5
35.8

28.3
6.6
2.2
31.8
45.9

28.2
6.3
2.2
31.7
45.1

27.9
6.4
2.1
31.5
43.7

27.7
7.1
2.1
31.4
41.9

27.4
7.7
2.1
31.3
43.9

26.8
8.2
2.2
30.4
42.8

26.5
7.5
2.2
30.1
44.0

26.6
8.7
2.2
30.3
45.4

3. United States includes the fifty states and the District of Columbia.

A18

Domestic Financial Statistics • December 1992

1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS 1
Billions of dollars, monthly averages
1991

1992

Source of funds

Seasonally
adjusted
1 Total nondeposit funds 2
2 Net balances due to related foreign offices 3
3 Borrowings from other than commercial banks
in United States
4
Domestically chartered banks
5
Foreign-related banks
Not seasonally
adjusted
6 Total nondeposit funds
7 Net balances due to related foreign offices 3
8
Domestically chartered banks
9
Foreign-related banks
10 Borrowings from other than commercial banks
in United States
11
Domestically chartered banks
12
Federal funds and security RP
borrowings 5
13
Other
14
Foreign-related banks 6

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

264.7
30.9

268.1
33.1

282.1
39.2

285.9
43.6

290.3
42.4

291.4
45.5

295.2
49.9

297.5
55.0

302.9
61.1

306.3
63.2

310.2
59.8

317.0
62.9

233.8
154.7
79.1

235.0
151.9
83.1

242.9
155.1
87.8

242.3
157.2
85.0

248.0
160.6
87.4

245.8
156.6
89.2

245.3
154.7
90.6

242.5
153.2
89.3

241.8
153.8
88.0

243.0
154.8
88.3

250.4
160.7
89.7

254.0
162.2
91.8

266.0
30.5
-7.2
37.7

272.4
34.0
-4.4
38.5

280.3
42.7
-3.8
46.5

281.7
44.3
-4.5
48.8

290.9
42.5
-.6
43.1

295.3
45.9
-.7
46.6

292.4
48.4
-4.9
53.4

303.4
57.4
-4.2
61.6

304.4
60.8
-6.3
67.1

302.6
59.7
-7.0
66.7

307.1
58.2
-9.3
67.5

314.3
62.3
-10.9
73.1

235.4
155.5

238.4
156.2

237.6
153.7

237.5
152.9

248.4
161.1

249.3
159.7

243.9
152.7

246.0
156.0

243.6
154.0

242.9
153.2

248.9
158.9

252.0
161.1

152.3
3.2
79.9

153.0
3.2
82.2

150.6
3.1
83.8

149.5
3.4
84.6

157.6
3.5
87.3

156.4
3.3
89.6

149.3
3.4
91.2

152.1
3.9
90.0

149.9
4.1
89.6

149.0
4.2
89.7

155.0
3.9
90.1

157.3
3.8
90.9

429.5
429.7

426.1
425.8

423.9
422.6

416.0
413.6

413.7
412.6

406.9
407.4

399.9
398.8

396.7
398.0

392.4
393.7

386.1
385.9

384.5
386.1

381.1
382.3

29.2
28.7

34.2
28.5

26.4
25.4

27.8
33.1

19.5
25.2

21.8
20.1

19.9
17.7

17.0
21.0

25.8
25.2

21.9
19.7

32.6
22.4

25.4
28.7

MEMO

Gross large time deposits7
15 Seasonally adjusted
16 Not seasonally adjusted
U.S. Treasury demand balances
banks8
17 Seasonally adjusted
18 Not seasonally adjusted

commercial

1. Commercial banks are nationally and state-chartered banks in the fifty states
and the District of Columbia, agencies and branches of foreign banks, N e w York
investment companies majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign banks.
Data in this table also appear in the Board's G.10 (411) release. For ordering
address, see inside front cover.
2. Includes federal funds, repurchase agreements (RPs), and other borrowing
from nonbanks and net balances due to related foreign offices.
3. Reflects net positions of U . S . chartered banks, Edge Act corporations, and
U . S . branches and agencies of foreign banks with related foreign offices plus net
positions with own International Banking Facilities (IBFs).
4. Borrowings through any instrument, such as a promissory note or due bill,

given for the purpose of borrowing money for the banking business. This includes
borrowings from Federal Reserve Banks and from foreign banks, term federal
funds, loan RPs, and sales of participations in pooled loans.
5. Figures are based on averages of daily data reported weekly by approximately 120 large banks and quarterly or annual data reported by other banks.
6. Figures are partly averages of daily data and partly averages of Wednesday
data.
7. Time deposits in denominations of $100,000 or more. Estimated averages of
daily data.
8. U.S. Treasury demand deposits and Treasury tax-and-loan notes at commercial banks. Averages of daily data.

Commercial Banking Institutions
1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKS

A19

Last-Wednesday-of-Month Series1

Billions of dollars
1992
Account
Sept. 9

Sept. 16

Sept. 23

Sept. 30

3,065.0
770.8
610.5
160.3
38.7
23.6
2.4
12.7
2,255.5
169.0
2,086.6
592.3
882.0
72.7
809.3
358.3
254.0

3,048.0
772.4
611.5
160.9
37.5
22.6
2.5
12.4
2,238.2
156.2
2,082.0
590.3
884.1
72.8
811.3
357.7
249.9

3,071.6
769.1
607.9
161.3
36.7
22.7
2.4
11.6
2,265.7
171.1
2,094.6
594.3
883.4
72.9
810.4
358.7
258.3

3,034.3
769.3
608.6
160.7
35.1
21.0
2.5
11.6
2,229.9
141.6
2,088.2
594.3
882.4
73.0
809.3
359.4
252.2

3,066.6
771.3
611.1
160.2
36.6
22.5
2.8
11.3
2,258.7
160.5
2,098.2
597.4
882.9
73.2
809.8
358.2
259.7

201.3
22.5
31.2
29.3
70.4
47.9
287.0

222.4
28.1
30.6
31.0
83.9
48.8
299.6

229.7
28.9
31.7
31.2
88.0
49.9
294.9

224.4
27.8
31.3
31.1
84.3
49.9
295.4

205.4
25.1
31.1
27.3
73.4
48.6
291.9

215.3
23.6
31.0
27.7
84.3
48.7
291.9

3,527.5

3,516.8

3,587.0

3,572.7

3,591.4

3,531.6

3,573.8

2,460.3
685.5
2.9
37.4
645.1
720.2
661.4
393.2
493.4
17.4
476.1
314.2

2,455.8
682.2
2.8
37.0
642.3
719.4
659.2
395.0
482.6
17.3
465.4
318.0

2,499.7
721.3
3.5
40.1
677.7
726.1
658.6
393.6
509.2
24.7
484.4
316.2

2,511.1
728.9
3.7
43.1
682.1
730.5
658.4
393.2
484.0
10.3
473.8
314.3

2,505.0
728.8
7.3
41.0
680.4
731.0
655.9
389.3
515.7
31.9
483.8
308.0

2,454.7
688.5
3.3
37.7
647.5
725.4
653.3
387.6
495.9
34.2
461.6
318.4

2,488.2
727.7
4.0
39.9
683.8
726.0
653.0
381.5
493.4
34.1
459.2
329.3

3,266.0

3,267.9

3,256.4

3,325.0

3,309.5

3,328.7

3,269.0

3,310.9

259.5

259.6

260.4

262.0

263.2

262.7

262.6

263.0

Aug. 12

Aug. 19

Aug. 26

3,041.3
763.9
603.1
160.8
36.3
22.9
1.7
11.7
2,241.2
165.2
2,076.0
594.8
881.1
71.9
809.1
356.0
244.1

3,029.2
764.1
602.8
161.3
36.2
23.1
1.6
11.6
2,229.0
156.1
2,072.9
593.6
881.2
72.2
809.0
355.8
242.3

3,033.0
764.6
603.2
161.4
38.9
24.6
2.3
12.0
2,229.5
156.8
2,072.7
592.2
878.5
72.2
806.2
357.0
245.0

3,028.5
765.1
604.3
160.9
36.3
21.8
2.2
12.4
2,227.1
150.4
2,076.7
590.1
879.4
72.3
807.1
357.5
249.7

215.8
31.1
28.4
29.6
77.2
49.4
293.9

202.1
22.6
30.4
29.2
72.8
46.9
294.2

201.8
24.4
30.6
28.8
70.1
47.9
292.7

25 Total assets

3,551.0

3,525.5

26 Total deposits
27
Transaction accounts
28
Demand, U.S. government
29
Demand, depository institutions
30
Other demand and all checkable deposits
31
Savings deposits (excluding checkable)
37.
Small time deposits
33
Time deposits over $100,000
34 Borrowings
35
Treasury tax and loan notes
36
Other
37
Other liabilities

2,486.0
706.1
3.6
38.5
664.1
720.8
666.2
392.8
495.2
13.8
481.4
311.1

2,475.7
696.5
2.9
36.6
657.1
722.0
663.5
393.7
483.6
17.8
465.8
306.7

38 Total liabilities

3,292.2
258.8

Aug. 5

Sept. 2

A L L COMMERCIAL B A N K I N G INSTITUTIONS 2

1 Loans and securities
Investment securities
?
3
U.S. government securities
4
Other
5
Trading account assets
6
U.S. government securities
7
Other securities
8
Other trading account assets
9
Total loans
10
Interbank loans
Loans excluding interbank
11
1?
Commercial and industrial
N
Real estate
Revolving home equity
14
IS
Other
16
Individual
17
All other
18 Total cash assets
19
Balances with Federal Reserve Banks
20
Cash in vault
21
Demand balances at U.S. depository institutions
22
Cash items
23
Other cash assets
24 Other assets

39 Residual (assets less liabilities) 5

A20

Domestic Financial Statistics • December 1992

1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKS

Last-Wednesday-of-Month Series1—Continued

Billions of dollars

1992
Account
Aug. 5

Aug. 12

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

DOMESTICALLY C H A R T E R E D COMMERCIAL B A N K S 2

40 Loans and securities
41
Investment securities
42
U.S. government securities
43
Other
44
Trading account assets
45
U.S. government securities
Other securities
46
47
Other trading account assets
48
Total loans
49
Interbank loans
50
Loans excluding interbank
M
Commercial and industrial
52
Real estate
53
Revolving home equity
54
Other
55
Individual
56
All other
5 7 Total cash assets
58
Balances with Federal Reserve Banks
59
Cash in vault
60
Demand balances at U . S . depository institutions
61
Cash items
62
Other cash assets
63 Other assets

2,708.1
707.5
567.9
139.6
36.3
22.9
1.7
11.7
1,964.4
138.0
1,826.3
442.6
827.7
71.9
755.7
356.0
200.1
185.6
30.3
28.4
28.3
75.1
23.6
173.2

2,701.6
707.7
567.7
140.0
36.2
23.1
1.6
11.6
1,957.7
133.3
1,824.4
440.9
827.8
72.2
755.6
355.8
199.9
172.0
22.2
30.4
27.8
70.3
21.3
173.0

2,702.6
708.7
568.6
140.2
38.9
24.6
2.3
12.0
1,955.0
133.5
1,821.5
440.0
825.1
72.2
752.8
357.0
199.4
170.9
23.8
30.5
27.3
67.7
21.6
169.7

2,697.2
709.6
569.8
139.8
36.3
21.8
2.2
12.4
1,951.3
125.6
1,825.7
438.1
826.1
72.3
753.9
357.5
204.0
170.3
21.9
31.1
27.8
67.9
21.6
166.3

2,727.7
715.6
576.1
139.5
38.7
23.6
2.4
12.7
1,973.4
139.9
1,833.5
440.0
828.8
72.7
756.1
358.3
206.4
190.8
27.4
30.5
29.5
81.2
22.2
174.7

2,716.9
715.8
576.2
139.6
37.5
22.6
2.5
12.4
1,963.7
134.3
1,829.3
437.5
831.0
72.8
758.2
357.7
203.1
197.7
28.4
31.6
29.6
85.8
22.3
171.1

2,732.2
713.5
573.6
139.9
36.7
22.7
2.4
11.6
1,982.1
142.2
1,839.9
440.6
830.3
72.9
757.4
358.7
210.2
192.4
27.0
31.3
29.5
82.1
22.5
173.0

2,700.1
713.8
574.3
139.5
35.1
21.0
2.5
11.6
1,951.2
119.2
1,832.0
439.9
829.3
73.0
756.3
359.4
203.5
174.9
24.7
31.0
25.8
71.1
22.1
171.0

2,725.7
715.0
575.6
139.4
36.6
22.5
2.8
11.3
1,974.1
133.3
1,840.9
443.1
831.5
73.2
758.3
358.2
208.1
183.8
22.5
31.0
26.2
81.9
22.2
174.6

64 Total assets

3,066.9

3,046.7

3,043.2

3,033.8

3,093.2

3,085.8

3,097.6

3,046.0

3,084.2

65 Total deposits
66
Transaction accounts
67
Demand, U . S . government
68
Demand, depository institutions
69
Other demand and all checkable deposits
Savings deposits (excluding checkable)
70
Small time deposits
71
72
Time deposits over $100,000
Borrowings
Treasury tax and loan notes
74
75
Other
76
Other liabilities

2,330.6
696.5
3.6
36.0
656.9
715.8
663.5
254.8
354.2
13.8
340.5
127.6

2,318.9
686.6
2.9
34.1
649.6
717,2
660.8
254.3
345.9
17.8
328.1
126.6

2,302.5
675.5
2.9
34.9
637.6
715.6
658.7
252.6
356.8
17.4
339.5
128.6

2,295.1
672.3
2.8
34.3
635.1
714.7
656.5
251.5
353.6
17.3
336.3
128.9

2,339.0
710.8
3.5
37.4
669.9
721.5
655.9
250.7
367.7
24.7
343.0
128.7

2,351.1
718.9
3.7
40.4
674.7
725.8
655.8
250.6
346.5
10.3
336.2
129.2

2,346.4
718.0
7.3
38.0
672.7
726.3
653.3
248.8
367.8
31.9
335.9
124.9

2,297.8
678.5
3.3
35.1
640.1
720.5
650.6
248.2
362.0
34.2
327.8
127.8

2,330.8
716.9
4.0
37.1
675.9
721.1
650.3
242.4
359.1
34.1
325.0
135.5

77 Total liabQities

2,812.4

2,791.4

2,787.8

2,777.6

2,835.4

2,826.8

2,839.1

2,787.6

2,825.4

254.6

255.3

255.4

256.2

257.8

259.0

258.5

258.4

258.8

Residual (assets less liabilities) 5

1. Data are partly estimated. They include all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries.
2. Includes insured domestically chartered commercial banks, agencies and
branches of foreign banks, Edge Act and Agreement corporations, and N e w York
State foreign investment corporations. Data are estimates for the last Wednesday
of the month based on a sample of weekly reporting foreign-related institutions

and quarter-end condition reports.
3. This balancing item is not intended as a measure of equity capital for use in
capital adequacy analysis.
4. Includes all member banks and insured nonmember banks. Loans and
securities data are estimates for the last Wednesday of the month based on a
sample of weekly reporting banks and quarter-end condition reports.

Weekly Reporting Commercial Banks

A21

1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS
Millions of dollars, Wednesday figures
1992
Account
Aug. 5

Aug. 12

Aug. 19

Aug. 26

97,852
258,064
20,503
237,561
80,176

96,869
262,111
22,337
239,774
79,763

96,810
259,952
19,588
240,364
79,235

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

ASSETS

1 Cash and balances due from depository institutions
2 U.S. Treasury and government securities
Trading account
4
Investment account
Mortgage-backed securities 1
5
All others, by maturity
6
One year or less
7
One year through five years
8
More than five years
9 Other securities
10
Trading account
Investment account
11
12
State and political subdivisions, by maturity
N
One year or less
14
More than one year
15
Other bonds, corporate stocks, and securities
16 Other trading account assets
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44

Federal funds sold 2
To commercial banks in the United States
To nonbank brokers and dealers
To others 3
Other loans and leases, gross
Commercial and industrial
Bankers acceptances and commercial paper
All other
U.S. addressees
Non-U.S. addressees
Real estate loans
Revolving, home equity
All other
To individuals for personal expenditures
To financial institutions
Commercial banks in the United States
Banks in foreign countries
Nonbank financial institutions
For purchasing and carrying securities
To finance agricultural production
To states and political subdivisions
To foreign governments and official institutions
All other loans
Lease-financing receivables
LESS: Unearned income
Loan and lease reserve
Other loans and leases, net
Other assets

45 Total assets

Footnotes appear on the following page.

109,889
257,752
20,126
237,626
80,497

111,924
265,615
21,295
244,320
79,940

116,759
265,463
20,464
244,998
79,808

113,616
262,247
20,778
241,469
78,376

102,325
259,534
19,105
240,429
78,085

105,797
267,244
20,482
246,763
79,153

24,920
74,131
58,078
54,473
1,537
52,936
21,720
4,007
17,713
31,216
11,567

24,644
74,581
58,160
54,513 r
1,425
53,088 r
21,518
3,838
17,681
31,570 r
11,429

24,701
76,828
58,482
55,628 r
2,145
53,483 r
21,568
3,919
17,649
31,915 r
11,807

24,762
78,170
58,197
55,385 r
2,087
53,298 r
21,659
4,007
17,652
31,639"
12,217

25,479
77,656
61,245
55,382
2,291
53,090
21,594
4,009
17,585
31,496
12,506

26,413
77,925
60,852
55,073
2,376
52,697
20,975
3,375
17,600
31,722
12,208

26,504
77,020
59,569
54,992
2,299
52,693
21,019
3,397
17,622
31,674
11,445

26,394
76,409
59,541
55,035
2,384
52,651
21,049
3,432
17,617
31,602
11,459

26,684
76,558
64,367
55,009
2,715
52,293
20,988
3,411
17,577
31,306
11,043

84,964
58,907
21,892
4,164
972,100
278,069 r
1,776
276,293 r
274,597 r
1,696
397,926 r
42,017
355,909"
175,938r
37,499
14,058
2,529
20,913
13,758 r
6,199
15,650
871
21,977 r
24,215
2,681
38,264
931,156
162,227

82,146
55,027
22,676
4,443
970,179 r
277,077 r
1,722
275.355 1
273,642'
1,713
397,499 r
42,117
355,382 r
176,339*
36,794
14,213
1,940
20,641
14,563 r
6,339
15,592
1,052
20,812 r
24,112
2,696
38,432
929,051 r
163,151

84,247
56,856
22,295
5,095
966,612 r
276,658 r
1,646
275,013 r
273,427 r
1,585
394,923 r
42,181
352,743 r
177,113r
35,949
13,649
2,043
20,257
13,752 r
6,420
15,569
944
21,130"
24,152
2,697
38,403
925,513 r
160,629

80,060
49,992
24,932
5,135
966,898 r
274,857 r
1,791
273,066 r
271,532 r
1,534
395,412 r
42,214
353,198 r
177,024 r
35,213
13,549
1,672
19,991
15,762 r
6,356
15,619
888
21,615 r
24,152
2,710 r
38,308
925,880 1
157,773 r

89,941
59,855
24,412
5,674
971,352
276,249
1,713
274,537
272,650
1,887
397,127
42,161
354,966
177,109
36,624
13,382
1,940
21,303
15,102
6,306
15,596
925
22,131
24,183
2,717
38,524
930,111
164,273

80,429
52,407
22,565
5,457
969,311
274,369
1,578
272,791
271,112
1,679
398,366
42,143
356,223
176,719
37,593
13,749
2,533
21,311
13,957
6,256
15,541
844
21,554
24,111
2,754
38,776
927,781
160,275

97,332
65,874
25,371
6,087
974,624
276,975
1,599
275,376
273,762
1,614
397,468
42,236
355,232
177,629
36,202
12,502
2,519
21,181
17,417
6,243
15,552
953
22,061
24,123
2,750
38,733
933,141
162,444

78,322
48,514
23,917
5,892
968,733
275,618
1,635
273,983
272,304
1,679
396,044
42,250
353,794
177,953
35,893
12,723
2,347
20,824
14,098
6,188
15,614
853
22,334
24,137
2,741
38,232
927,759
160,450

83,823
56,241
24,064
3,518
977,704
278,545
1,594
276,951
275,082
1,869
3%,986
42,440
354,546
176,908
38,238
13,555
3,018
21,666
15,932
6,244
15,632
906
24,000
24,313
2,693
37,583
937,429
162,521

l,596,803 r l,588,077 r

1,629,751

1,617,987

1,635,218

1,594,885

1,622,865

1,612,028

l,596,206 r

A22

Domestic Financial Statistics • December 1992

1.26 ASSETS AND LIABILITIES OF LARGE WEEKLY REPORTING COMMERCIAL BANKS—Continued
Millions of dollars, Wednesday figures

1992
Account
Aug. 5

Aug. 12

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

1,116,383
250,444
202,092
48,351
8,188
2,227
21,591
5,359
646
10,340
107,674
758,265
730,61 l r
27,654 r
22,665
2,110
2,614 r
265

1,109,309
247,428
202,658
44,770
7,527
1,747
20,569
4,792
528
9,606
105,089
756,792
728,864"
27,929"
22,820
2,178
2,662"
269

1,098,709"
241,648"
195,789"
45,859
8,002
1,794
21,490
4,812
710
9,051
104,540"
752,520"
724,640"
27,881"
22,801"
2,166
2,605"
309

1,092,794"
240,185"
193,132"
47,053
7,802
1,750
20,556"
4,802
677"
11,466
103,323"
749,286"
721,341"
27,945"
22,795
2,208
2,633
309

1,120,896
260,674
210,992
49,682
8,548
2,106
23,127
4,935
725
10,242
107,543
752,679
724,884
27,795
22,641
2,178
2,674
302

1,125,407
262,682
210,261
52,422
8,010
2,494
24,211
6,084
781
10,842
107,981
754,744
727,031
27,713
22,683
2,165
2,566
299

1,128,443
267,409
213,431
53,978
8,692
5,291
23,213
5,168
979
10,636
107,748
753,285
726,501
26,784
22,543
2,152
1,790
299

1,093,056
245,365
195,861
49,504
8,246
2,272
21,048
5,418
780
11,740
102,969
744,722
718,074
26,648
22,332
2,168
1,844
304

1,111,373
265,734
215,315
50,419
8,484
2,359
21,856
6,524
934

266,682 r

258,308"

277,627

260,400

13,919
249,799"

21,600
256,027

8,122
252,279

278,734
1,350
27,248
250,137

270,155

14,802
243,506"

267,412"
30
14,305
253,077"

263,718"

11,503
255,179"

271,106
380
28,973
241,753

98,030"

99,891"

100,344"

99,909

100,117

96,107

98,965

106,694

1,465,648" 1,466,012"

1,456,856"

1,498,432

1,485,925

1,503,284

1,462,176

1,489,173

131,319

132,062

131,934

132,709

133,692

1,321,558
135,280
1,067
587
480
24,547
-14,127

1,316,326
135,159
1,074
592
482
24,551
-10,082

1,322,264
133,619
1,139
596
543
24,674
-14,043

1,311,847
131,898
1,130
585
546
24,747
-10,693

1,325,027
126,893
1,056
515
541
24,834
-12,044

LIABILITIES

46 Deposits
47
Demand deposits
48
Individuals, partnerships, and corporations
49
Other holders
50
States and political subdivisions
51
U . S . government
52
Depository institutions in the United States . . .
53
Banks in foreign countries
54
Foreign governments and official institutions . .
55
Certified and officers' c h e c k s
56
Transaction balances other than demand deposits 4 .
57
Nontransaction balances
58
Individuals, partnerships, and corporations
59
Other holders
60
States and political subdivisions
61
U . S . government
62
Depository institutions in the United States . . .
63
Foreign governments, official institutions, and banks .
64 Liabilities for borrowed m o n e y 5
65
Borrowings from Federal R e s e r v e Banks
66
Treasury tax and loan notes
67
Other liabilities for borrowed m o n e y 6
68 Other liabilities (including subordinated notes and
debentures)
69 Total liabilities
70 Residual (total assets less total liabilities) 7

99,029"
1,482,093

129,935

130,558

130,791

131,221

1,307,891
138,599"
1,102
638
464
24,848
-9,788

1,307,091"
138,281"
1,104
639
465
24,744
-11,064

1,309,899"
136,844"
1,081
618
463
24,476
-9,538

1,310,970"
135,921"
1,090
613
476
24,371
-8,015

29,180
240,975

10,262
106,317
739,323
713,718
25,604
21,700
1,787
1,815
303

MEMO

71
72
73
74
75
76
77

Total loans and leases, gross, adjusted, plus securities'
Time deposits in amounts of $100,000 or more
Loans sold outright to affiliates 9
Commercial and industrial
Other
Foreign branch credit extended t o U . S . residents 1 ®...
N e t due to related institutions abroad

1. Includes certificates of participation, issued or guaranteed by agencies of the
U . S . government, in pools o f residential mortgages.
2. Includes securities purchased under agreements to resell.
3. Includes allocated transfer risk reserve.
4. Includes negotiable order of withdrawal accounts ( N O W s ) , automatic transfer service (ATS), and telephone and preauthorized transfers of savings deposits.
5. Includes borrowings only from other than directly related institutions.
6. Includes federal funds purchased and securities sold under agreements t o
repurchase.
7. This balancing item is not intended as a measure of equity capital for use in
capital-adequacy analysis.
8. E x c l u d e s loans to and federal funds transactions with commercial banks in
the United States.

9, Affiliates include a bank's o w n foreign branches, nonconsolidated nonbank
affiliates o f the bank, the bank's holding c o m p a n y (if not a bank), and nonconsolidated nonbank subsidiaries of the holding c o m p a n y .
10. Credit extended by foreign branches of domestically chartered w e e k l y
reporting banks to nonbank U . S . residents. Consists mainly of commercial and
industrial loans, but includes an unknown amount of credit extended to other than
nonfinancial businesses.
NOTE. Data that formerly appeared in table 1.28, A s s e t s and Liabilities of Large
Weekly Reporting Commercial Banks in N e w York City, can be obtained f r o m the
Board's H . 4 . 2 (504) w e e k l y statistical release. F o r ordering address, s e e inside
front cover.

Weekly Reporting Commercial Banks
1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS
Liabilities1

A23

Assets and

Millions of dollars, Wednesday figures
1992
Account
Aug. 5
1 Cash and balances due from depository
institutions
2 U.S. Treasury and government agency
securities
3 Other securities
4 Federal funds sold 1
5
To commercial banks in the United States . . .
6
To others 2
7 Other loans and leases, gross
8
Commercial and industrial
9
Bankers acceptances and commercial
paper
10
All other
11
U.S. addressees
1?
Non-U.S. addressees
13
Loans secured by real estate
14
To financial institutions
15
Commercial banks in the United States..
16
Banks in foreign countries
17
Nonbank financial institutions
18
For purchasing and carrying securities . . . .
19
To foreign governments and official
institutions
70
All other
21 Other assets (claims on nonrelated parties) . .
22 Total assets 3
23 Deposits or credit balances due to other
than directly related institutions
24 Demand deposits
25
Individuals, partnerships, and
corporations
76
Other
27 Nontransaction accounts
28
Individuals, partnerships, and
corporations
79
Other
30 Borrowings from other than directly
related institutions
31 Federal funds purchased
From commercial banks in the
32
United States
33
From others
34 Other liabilities for borrowed money
35
To commercial banks in the
United States
36
To others
37 Other liabilities to nonrelated parties
38 Total liabilities 6

Aug. 12

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

19,868

19,758

20,388

20,431

20,838

21,108

21,151

20,115

20,787

24,253
8,540
19,130
5,831
13,299
159,545
95,859

24,127
8,624
15,175
3,999
11,176
160,043
96,127

23,848
8,562
16,921
4,331
12,591
160,341
95,823

23,717
8,492
18,393
5,246
13,147
159,646
95,728

23,683
8,363
21,090
7,051
14,039
160,972
95,846

24,255
8,596
16,668
3,773
12,895
160,620
96,217

23,577
8,636
21,016
7,193
13,823
162,071
96,778

23,610
8,520
17,804
4,162
13,643
162,201
97,231

24,419
8,368
22,126
6,822
15,303
161,548
97,185

2,477
93,382
90,521
2,861
36,197
21,904
7,091
2,107
12,706
3,179

2,466
93,661
90,775
2,887
36,213
22,123
6,832
2,119
13,172
3,165

2,349
93,474
90,573
2,902
36,203
22,471
6,598
2,184
13,689
3,353

2,273
93,455
90,583
2,872
36,071
21,903
6,303
2,055
13,545
3,474

2,444
93,401
90,559
2,843
36,069
22,560
6,665
2,045
13,850
3,925

2,490
93,727
90,878
2,849
35,980
22,651
6,457
2,241
13,954
3,569

2,362
94,416
91,443
2,972
35,924
22,880
6,415
2,486
13,978
4,315

2,336
94,895
91,908
2,987
35,974
22,531
6,262
2,307
13,961
4,303

2,679
94,505
91,511
2,994
34,865
22,772
5,6%
2,610
14,466
4,479

356
2,051
29,616

352
2,062
29,773

388
2,104
29,268

372
2,098
29,377

385
2,187
29,965

385
1,817
30,972

381
1,794
29,791

377
1,785
29,597

377
1,870
30,382

301,119

297,739

301,244

300,425

307,381

302,932

307,404

302,088

304,700

97,565
3,265

98,594
3,4%

99,836
3,648

102,104
3,394

102,295
3,816

101,998
3,536

99,834
3,812

99,088
3,627

99,198
4,422

2,517
748
94,301

2,583
912
95,099

2,669
979
96,188

2,610
785
98,710

2,800
1,016
98,480

2,745
791
98,461

2,824
988
96,023

2,751
876
95,461

3,442
981
94,775

67,668
26,632

68,524
26,575

69,136
27,052

70,692
28,018

71,241
27,238

70,431
28,030

68,784
27,239

69,391
26,070

68,639
26,136

99,397
56,533

97,082
53,241

96,297
53,147

90,953
50,009

99,719
55,688

96,979
52,170

104,344
59,781

94,369
48,767

94,624
48,017

15,734
40,799
42,864

15,589
37,652
43,842

13,431
39,716
43,150

12,633
37,376
40,944

16,966
38,722
44,031

14,183
37,987
44,809

22,620
37,161
44,563

10,836
37,931
45,602

17,050
30,%7
46,607

10,522
32,342
28,538

10,249
33,592
28,618

9,577
33,573
28,854

9,607
31,337
29,421

9,892
34,139
29,741

9,030
35,778
30,061

9,117
35,446
29,690

8,822
36,780
29,878

9,766
36,841
30,338

301,119

297,739

301,244

300,425

307,381

302,932

307,404

302,088

304,700

198,546
35,451

197,137
33,205

198,744
34,341

198,699
37,578

200,391
33,155

199,909
33,181

201,692
32,374

201,712
38,512

203,942
43,470

MEMO

39 Total loans (gross) and securities, adjusted . .
40 Net due to related institutions abroad

1. Includes securities purchased under agreements to resell.
2. Includes transactions with nonbank brokers and dealers in securities.
3. includes net due from related institutions abroad for U . S . branches and
agencies of foreign banks having a net "due from" position.
4. Includes other transaction deposits.

5. Includes securities sold under agreements to repurchase.
6. Includes net to related institutions abroad for U.S. branches and agencies of
foreign banks having a net "due to" position.
7. Excludes loans to and federal funds transactions with commercial banks in
the United States.

A24
1.32

DomesticNonfinancialStatistics • December 1992
COMMERCIAL PAPER A N D BANKERS DOLLAR ACCEPTANCES OUTSTANDING
Millions of dollars, end of period
1992

Year ending December
Item
1988r

1987

1989r

1990r

1991r

Mar.

Apr.

May

June

July

Aug.

Commercial paper (seasonally adjusted unless noted otherwise)
1 All issuers

2
3
4
5

358,997

458,464

525,831

561,142

530,300

539,749

537,020

533,719

542,205

547,242

545,801

102,742

159,777

183,622

215,123

214,445

219,287

225,989

226,552

234,212

226,943

231,586

1,428

1,248

n.a.

174,332

194,931

210,930

199,835

183,195

181,485

172,136

168,914

171,321

179,725

173,772

Financial companies1
Dealer-placed paper
Total
Bank-related (not seasonally
adjusted)
Directly placed paper4
Total
Bank-related (not seasonally
adjusted)

6 Nonfinancial companies 5

43,173

43,155

n.a.

81,923

103,756

131,279

146,184

132,660

138,977

138,895

138,253

136,672

140,574

140,443

Bankers dollar acceptances (not seasonally adjusted) 6
7 Total
Holder
Accepting banks
Own bills
Bills bought
Federal Reserve Banks
Own account
Foreign correspondents
Others

Basis
14 Imports into United States
15 Exports from United States
16 All other

8
9
10
11
12
13

70,565

66,631

62,972

54,771

43,770

39,309

39,335

38,384

37,767

37,733

37,090

10,943
9,464
1,479

9,086
8,022
1,064

9,433
8,510
924

9,017
7,930
1,087

11,017
9,347
1,670

9,640
8,296
1,344

9,821
8,427
1,394

9,255
7,954
1,301

9,680
8,129
1,551

9,225
7,808
1,417

9,190
7,744
1,446

0
965
58,658

0
1,493
56,052

0
1,066
52,473

0
918
44,836

0
1,739
31,014

0
1,492
28,177

0
1,598
27,915

0
1,477
27,653

0
1,338
26,749

0
1,269
27,239

0
1,851
26,049

16,483
15,227
38,855

14,984
14,410
37,237

15,651
13,683
33,638

13,0%
12,703
28,973

12,843
10,351
20,577

11,569
9,403
18,337

12,045
9,168
18,121

11,893
8,702
17,790

11,569
9,062
17,135

11,825
9,015
16,893

11,600
7,861
17,628

1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, personal, and mortgage financing; factoring, finance leasing, and other
business lending; insurance underwriting; and other investment activities.
2. Includes all financial-company paper sold by dealers in the open market.
3. Bank-related series were discontinued in January 1989.
4. As reported by financial companies that place their paper directly with
investors.
5. Includes public utilities and firms engaged primarily in such activities as

1.33

communications, construction, manufacturing, mining, wholesale and retail trade,
transportation, and services.
6. Data on bankers acceptances are gathered from institutions whose acceptances total $100 million or more annually. The reporting group is revised every
January. In January 1988, the group was reduced from 155 to 111 institutions. The
current group, totaling approximately 100 institutions, accounts for more than 90
percent of total acceptances activity.

PRIME RATE CHARGED BY B A N K S on Short-Term Business Loans 1
Percent per year

Period

Date of change

Average
rate

1989—Jan. 1
Feb. 10
24
June 5
July 31

10.50

1989
1990
1991

10.87
10.01
8.46

10.50

1990—Jan.

10.00

1991—Jan. 2
Feb. 4
May 1
Sept. 13 .
Nov. 6
Dec. 23

9.50
9.00
8.50
8.00
7.50
6.50

1989—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

10.50
10.93
11.50
11.50
11.50
11.07
10.98
10.50
10.50
10.50
10.50
10.50

1990—Jan.
Feb.
Mar.

10.11
10.00
10.00

1992—July

11.00
11.50
11.00

6.00

1. Data in this table also appear in the Board's H.15 (519) weekly and G.13
(415) monthly statistical releases. For ordering address, see inside front cover.

Average
rate
1990-—Apr. ..
May ...
June ..
July ...
Aug. ..
Sept. ..
Oct. ...
Nov. ..
Dec. ..
1991Feb. .
Mar. .
May ..

10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
9.52
9.05
9.00
9.00
8.50
8.50

Period
1991—July ...
Sept. ..
Oct. ...
Nov. ..
Dec. ..
1992—Jan. ...
Feb. ..
Mar. ..
Apr. ..
June ..
July ...
Aug. ..
Sept. ..
Oct. ...

Financial Markets
1.35

A25

INTEREST RATES Money and Capital Markets
Averages, percent per year; weekly, monthly, and annual figures are averages of business day data unless otherwise noted
1992
1989

Item

1990

1992, week ending

1991
June

July

Aug.

Sept.

Aug. 28

Sept. 4

Sept. 11

Sept. 18

Sept. 25

MONEY MARKET INSTRUMENTS

1 Federal funds 1,2 ' 3
2 Discount window borrowing

9.21
6.93

8.10
6.98

5.69
5.45

3.76
3.50

3.25
3.02

3.30
3.00

3.22
3.00

3.27
3.00

3.33
3.00

3.09
3.00

3.28
3.00

3.07
3.00

3
4
5

Commercial paper3,5,6
1-month
3-month
6-month

9.11
8.99
8.80

8.15
8.06
7.95

5.89
5.87
5.85

3.91
3.92
3.99

3.43
3.44
3.53

3.38
3.38
3.44

3.25
3.24
3.26

3.39
3.39
3.45

3.37
3.37
3.42

3.17
3.17
3.21

3.18
3.17
3.20

3.27
3.25
3.27

6
7
8

Finance paper, directly placed3'5'7
1-month
3-month
6-month

8.99
8.72
8.16

8.00
7.87
7.53

5.73
5.71
5.60

3.81
3.82
3.80

3.33
3.33
3.35

3.28
3.27
3.29

3.13
3.08
3.11

3.28
3.28
3.30

3.27
3.25
3.27

3.07
3.04
3.05

3.07
3.01
3.04

3.13
3.05
3.07

9
10

Bankers acceptances3'5'8
3-month
6-month

8.87
8.67

7.93
7.80

5.70
5.67

3.80
3.88

3.32
3.42

3.28
3.35

3.10
3.13

3.31
3.36

3.25
3.29

3.05
3.08

3.05
3.07

3.12
3.14

11
12
13

Certificates qf deposit, secondary
marker,9
1-month
3-month
6-month

9.11
9.09
9.08

8.15
8.15
8.17

5.82
5.83
5.91

3.83
3.86
3.97

3.35
3.37
3.50

3.29
3.31
3.40

3.14
3.13
3.17

3.32
3.34
3.45

3.27
3.28
3.35

3.08
3.08
3.11

3.07
3.07
3.10

3.16
3.15
3.19

9.16

8.16

5.86

3.87

3.40

3.33

3.15

3.36

3.08

3.05

3.19

8.11
8.03
7.92

7.50
7.46
7.35

5.38
5.44
5.52

3.66
3.77
3.98

3.21
3.28
3.45

3.13
3.21
3.33

2.91
2.96
3.06

3.16
3.25
3.38

3.10
3.16
3.26

2.91
2.94
3.04

2.89
2.92
3.03

2.89
2.93
3.04

8.12
8.04
7.91

7.51
7.47
7.36

5.42
5.49
5.54

3.70
3.81
4.07

3.28
3.36
3.65

3.14
3.23
3.28

2.97
3.01
3.02

3.14
3.24
3.28

3.17
3.26
n.a.

2.91
2.95
n.a.

2.89
2.90
n.a.

2.91
2.93
3.02

8.53
8.57
8.55
8.50
8.52
8.49
.8.45

7.89
8.16
8.26
8.37
8.52
8.55
8.61

5.86
6.49
6.82
7.37
7.68
7.86
8.14

4.17
5.05
5.60
6.48
6.90
7.26
7.84

3.60
4.36
4.91
5.84
6.36
6.84
7.60

3.47
4.19
4.72
5.60
6.12
6.59
7.39

3.18
3.89
4.42
5.38
5.96
6.42
7.34

3.52
4.25
4.79
5.69
6.23
6.67
7.44

3.39
4.07
4.58
5.48
6.06
6.53
7.37

3.17
3.85
4.35
5.26
5.85
6.32
7.26

3.15
3.86
4.40
5.37
5.93
6.39
7.32

3.16
3.91
4.44
5.46
6.04
6.47
7.41

8.58

8.74

8.16

7.72

7.40

7.19

7.08

7.26

7.16

6.99

7.05

7.14

7.00
7.40
7.23

6.%
7.29
7.27

6.56
6.99
6.92

6.19
6.57
6.49

5.72
6.10
6.13

5.67
6.03
6.16

5.92
6.27
6.25

5.95
6.28
6.31

6.02
6.35
6.24

5.91
6.26
6.16

5.83
6.19
6.27

5.94
6.31
6.33

9.66

9.77

9.23

8.63

8.44

8.29

8.26

8.32

8.28

8.19

8.23

8.31

9.26
9.46
9.74
10.18

9.32
9.56
9.82
10.36

8.77
9.05
9.30
9.80

8.22
8.56
8.70
9.05

8.07
8.37
8.49
8.84

7.95
8.21
8.34
8.65

7.92
8.17
8.31
8.62

7.97
8.25
8.37
8.69

7.93
8.20
8.33
8.64

7.87
8.11
8.25
8.54

7.91
8.15
8.29
8.58

7.%
8.22
8.37
8.69

37 A-rated, recently offered utility bonds16

9.79

10.01

9.32

8.62

8.38

8.16

8.11

8.20

8.08

8.06

8.10

8.17

MEMO: Dividend-price ratio17
38 Preferred stocks
39 Common stocks

9.05
3.45

8.%
3.61

8.17
3.25

7.53
3.06

7.47
3.00

7.21
2.97

7.14
n.a.

7.11
3.00

7.19
2.99

7.16
3.00

7.12
2.98

7.14
3.03

14 Eurodollar deposits, 3-month3,10

18
19
20

U.S. Treasury bills
Secondary market 3,5
3-month
6-month
1-year
Auction average • •
3-month
6-month
1-year

21
22
23
24
25
26
27

Constant maturities12
1-year
2-year
3-year
5-year
7-year
10-year
30-year

15
16
17

U . S . TREASURY NOTES AND BONDS

Composite
28 More than 10 years (long-term)
STATE AND LOCAL NOTES AND BONDS

Moody's series13
29
30 Baa
31 Bond Buyer series14
CORPORATE BONDS

32 Seasoned issues, all industries15
33
34
35
36

Rating group
Aaa
Aa
A
Baa

1. The daily effective federal funds rate is a weighted average of rates on
trades through New York brokers.
2. Weekly figures are averages of seven calendar days ending on Wednesday
of the current week; monthly figures include each calendar day in the month.
3. Annualized using a 360-day year or bank interest.
4. Rate for the Federal Reserve Bank of New York.
5. Quoted on a discount basis.
6. An average of offering rates on commercial paper placed by several leading
dealers for firms whose bond rating is AA or the equivalent.
7. An average of offering rates on paper directly placed by finance companies.
8. Representative closing yields for acceptances of the highest-rated money
center banks.
9. An average of dealer offering rates on nationally traded certificates of
deposit.
10. Bid rates for Eurodollar deposits at 11 a.m. London time. Data are for
indication purposes only.
11. Auction date for daily data; weekly and monthly averages computed on an
issue-date basis.

12. Yields on actively traded issues adjusted to constant maturities. Source:
U.S. Treasury.
13. General obligations based on Thursday figures; Moody's Investors Service.
14. General obligations only, with twenty years to maturity, issued by twenty
state and local governmental units of mixed quality. Based on figures for
Thursday.
15. Daily figures from Moody's Investors Service. Based on yields to maturity
on selected long-term bonds.
16. Compilation of the Federal Reserve. This series is an estimate of the yield
on recently offered, A-rated utility bonds with a thirty-year maturity and five
years of call protection. Weekly data are based on Friday quotations.
17. Standard and Poor's corporate series. Preferred stock ratio based on a
sample of ten issues: four public utilities, four industrials, one financial, and one
transportation. Common stock ratios on the 500 stocks in the price index.
NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases.
For ordering address, see inside front cover.

A26
1.36

DomesticNonfinancialStatistics • December 1992
STOCK MARKET

Selected Statistics
1992

Indicator

1989

1990

1991
Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

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
5
Finance

180.13
228.04
174.90
94.33
162.01

183.66
226.06
158.80
90.72
133.21

206.35
258.16
173.97
92.64
150.84

229.34
286.62
201.55
99.30
174.50

228.12
286.09
205.53
96.19
174.05

225.21
282.36
204.09
94.15
173.49

224.55
281.60
201.28
94.92
171.05

228.55
285.17
207.88
98.24
175.89

224.68
279.54
202.02
97.23
174.82

228.17
281.90
198.36
101.18
180.96

230.07
284.44
191.31
103.41
180.47

230.13
285.76
191.61
102.26
178.27

6 Standard & Poor's Corporation
(1941-43 = 10)'

323.05

335.01

376.20

416.08

412.56

407.36

407.41

414.81

408.27

415.05

417.93

418.48

7 American Stock Exchange
(Aug. 31, 1973 = 50?

356.67

338.32

360.32

409.08

413.74

404.09

388.06

392.63

385.56

384.07

385.80

382.67

165,568
13,124

156,359
13,155

179,411
12,486

239,903
20,444

226,476
18,126

185,581
15,654

206,251
14,096

182,027
13,455

195,089
11,216

194,138
10,722r

174,003
11,875

191,774
11,198

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

34,320

28,210

36,660

36,350

38,200

39,090

38,750

39,890

39,690

39,640

39,940

41,250

Free credit balances at brokers4
11 Margin accounts
12 Cash accounts

7,040
18,505

8,050
19,285

8,290
19,255

7,865
19,990

7,620
20,370

7,350
19,305

8,780
16,400

7,700
18,695

7,780
19,610

7,920
18,775

8,060
18,305

8,060
19,650

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

Jan. 3, 1974

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

50
50
50

1. Effective July 1976, includes a new financial group, banks and insurance
companies. With this change the index includes 400 industrial stocks (formerly
425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40
financial.
2. On July 5, 1983, the American Stock Exchange rebased its index, effectively
cutting previous readings in half.
3. Since July 1983, under the revised Regulation T, margin credit at brokerdealers has included credit extended against stocks, convertible bonds, stocks
acquired through the exercise of subscription rights, corporate bonds, and
government securities. Separate reporting of data for margin stocks, convertible
bonds, and subscription issues was discontinued in April 1984.
4. Free credit balances are amounts in accounts with no unfulfilled commitments to brokers and are subject to withdrawal by customers on demand.
5. New series since June 1984.
6. These requirements, stated in regulations adopted by the Board of Governors pursuant to the Securities Exchange Act of 1934, limit the amount of credit
that can be used to purchase and carry "margin securities" (as defined in the
regulations) when such credit is collateralized by securities. Margin requirements

on securities other than options are the difference between the market value (100
percent) and the maximum loan value of collateral as prescribed by the Board.
Regulation T was adopted effective Oct. 15,1934; Regulation U, effective May 1,
1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1,
1971.
On Jan. 1, 1977, the Board of Governors for the first time established in
Regulation T the initial margin required for writing options on securities, setting
it at 30 percent of the current market value of the stock underlying the option. On
Sept. 30, 1985, the Board changed the required initial margin, allowing it to be the
same as the option maintenance margin required by the appropriate exchange or
self-regulatory organization; such maintenance margin rules must be approved by
the Securities and Exchange Commission. Effective Jan. 31, 1986, the SEC
approved new maintenance margin rules, permitting margins to be the price of the
option plus 15 percent of the market value of the stock underlying the option.
Effective June 8, 1988, margins were set to be the price of the option plus 20
percent of the market value of the stock underlying the option (or 15 percent in the
case of stock-index options).

Financial Markets A25
1.37

SELECTED FINANCIAL INSTITUTIONS

Selected Assets and Liabilities

Millions of dollars, end of period
1991
Account

1989

1992

1990
Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June1"

July

SAIF-insured institutions
1,249,055

1 Assets
2 Mortgages
3 Mortgage-backed
securities
4 Contra-assets to
mortgage assets .
5 Commercial loans
6 Consumer loans
7 Contra-assets to nonmortgage loans ..
8 Cash and investment
securities
9 Other

1,084,821

937,787

934,539

919,979

909,077

906,204'

883,468r

872,088

870,396

861,524

856,379

529,144r

524,937r

521,899r

516,709

512,312

733,729

633,385

561,152

557,513

551,322

545,682

541,688

170,532

155,228

134,895

133,341

129,461

127,371

127,766

125,402

124,930

124,388

123,449

122,367

25,457
32,150
58,685

16,897
24,125
48,753

12,445
17,765
43,064

12,303
17,147
42,763

12,307
17,139
41,775

11,916
16,827
40,903

11,607r
16,050
39,954

10,977r
15,400
38,740

10,953r
15,069
38,027

11,lW
14,607
37,889r

11,278
14,020
37,423

11,048
13,930
37,239

3,592

1,939

1,373

1,150

1,239

1,115

992

980

949"^

947

908

166,053
116,955

146,644
95,522

120,824
73,905

123,380
73,849

120,077
73,751

118,611
72,714

121,969"
71,498r

119,410
67,341r

116,291
64,766r

120,5%
63,084r

119,394
61,753

120,211
62,276

10 Liabilities and net worth . 1,249,055

1,084,821

937,787

934,539

919,979

909,077

906,204r

883,468r

872,088

870,396

861,524

856,379

945,656
252,230
124,577
127,653
27,556
23,612

835,496
197,353
100,391
96,962
21,332
30,640

741,360
127,356
66,609
60,747
20,381
48,690

737,555
125,147
66,005
59,142
21,690
50,148

731,937
121,923
65,842
56,081
17,560
48,559

721,099
119,965
62,642
57,323
19,003
49,010

717,026
118,554
63,138
55,416
21,391
49,233r

703,809
110,031
62,628
47,403
18,357r
51,271r

689,777
111,262
62,268
48,994
18,944
52,105

688,199
110,126
61,439
48,687
19,687
52,384

682,536
108,941
62,759
46,182
17,724
52,322

676,139
109,034
62,358
46,676
18,546
52,658

11
12
13
14
15
16

Savings capital
Borrowed money
FHLBB
Other
Other
Net worth

NOTE. Components do not sum to totals because of rounding. Data for credit
unions and life insurance companies have been deleted from this table. Starting in
the December 1991 issue, data for life insurance companies are shown in a special
table of quarterly data.
SOURCE. Savings Association Insurance Fund (SAIF)-insured institutions:
Estimates by the Office of Thrift Supervision (OTS) for all institutions insured by
the SAIF and based on the OTS thrift institution Financial Report.

1. Contra-assets are credit-balance accounts that must be subtracted from the
corresponding gross asset categories to yield net asset levels. Contra-assets to
mortgage assets, mortgage loans, contracts, and pass-through securities—include
loans in process, unearned discounts and deferred loan fees, valuation allowances
for mortgages "held for sale," and specific reserves and other valuation allowances. Contra-assets to nonmortgage loans include loans in process, unearned
discounts and deferred loan fees, and specific reserves and valuation allowances.
2. Includes holding of stock in Federal Home Loan Bank and finance leases
plus interest.

1.38

1,115

FEDERAL FISCAL A N D FINANCING OPERATIONS
Millions of dollars
Fiscal year

Calendar year
1992

Type of account or operation
1990

1991

1992
Apr.

May

June

July

Aug.

Sept.

138,503r
103,478r
35,025
123,894r
102,858r
21,036r
14,609
620"
13,989"

62,303r
36,926r
25,377
109,089"^
86,402rr
22,687
-46,786 r
-49,476
2,69c

120,92C
91,438r
29,482
117,137r
102,329r
14,808r
3,783
-10,891
14,674r

79,080r
55,977r
23,103
122,226r
99,935r
22,291r
-43,146
-43,958 r
812r

78,218r
55,434r
22,784
102,920"
79,128 r
23,792
-24,702 r
-23,694
-1,008 r

118,344
92,813
25,531
112,943
86,709
26,235
5,400
6,104
-704

U.S. budget
1 Receipts, total
2
On-budget
3 Off-budget
4 Outlays, total
5 On-budget
6 Off-budget
7 Surplus or deficit ( - ) , total
8
On-budget
9
Off-budget
Source of financing (total)
10 Borrowing from the public
11 Operating cash (decrease, or increase (-)) . . .
12 Other 2

1,031,308
749,654
281,654
1,251,766
1,026,701
225,064
-220,458
-277,047
56,590

1,054,265
760,382
293,883
1,323,757
1,082,072
241,685
-269,492
-321,690
52,198

1,091,692
789,266
302,426
1,381,895
1,129,337
252,559
-290,204
-340,071
49,867

220,101
818
-461

276,802
-1,329
-5,981

310,918
-17,305
3,409

6,292
-21,262
361

33,840
20,977
-8,031

22,318
-26,919
818

26,839
9,542
6,765

38,841
1,523
-15,662

9,853
-22,807
7,554

40,155
7,638
32,517

41,484
7,928
33,556

58,789
24,586
34,203

41,105
4,692
36,413

20,128
5,583
14,545

47,047
13,630
33,417

37,505
6,923
30,581

35,982
6,232
29,749

58,789
24,586
34,203

MEMO

13 Treasury operating balance (level, end of
period)
14 Federal Reserve Banks
15 Tax and loan accounts

1. In accordance with the Balanced Budget and Emergency Deficit Control Act
of 1985, all former olf-budget entries are now presented on-budget. Federal
Financing Bank (FFB) activities are now shown as separate accounts under the
agencies that use the FFB to finance their programs. The act also moved two
social security trust funds (federal old-age survivors insurance and federal
disability insurance) off budget. The Postal Service is included as an off-budget
item in the Monthly Treasury Statement beginning in 1990.
2. Includes special drawing rights (SDRs); reserve position on the U.S. quota

in the International Monetary Fund (IMF); loans to the IMF; other cash and
monetary assets; accrued interest payable to the public; allocations of SDRs;
deposit funds; miscellaneous liability (including checks outstanding) and asset
accounts; seigniorage; increment on gold; net gain or loss for U.S. currency
valuation adjustment; net gain or loss for IMF loan-valuation adjustment; and
profit on sale of gold.
SOURCES. Monthly Treasury Statement of Receipts and Outlays of the U.S.
Government (MTS) and the Budget of the U.S. Government.

A28
1.39

DomesticNonfinancialStatistics • December 1992
U.S. BUDGET RECEIPTS A N D OUTLAYS 1
Millions of dollars
Calendar year
Source or type

Fiscal
year
1990

Fiscal
year
1991

1990

1992

July

Aug.

Sept.

RECEIPTS

1 All sources
2 Individual income taxes, net
3
Withheld
4 Presidential Election Campaign Fund .
5
Nonwithheld
6
Refunds
Corporation income taxes
7 Gross receipts
8
Refunds
9 Social insurance taxes and contributions
net
10 Employment taxes and
contributions
11
Self-employment taxes and
contributions
12 Unemployment insurance
13 Other net receipts
14
15
16
17

Excise taxes
Customs deposits
Estate and gift taxes
Miscellaneous receipts 3

1,031,308

1,054,265

503,123

540,504

519,293

561,125r

79,080"

78,218"

118,344

466,884
388,384
32
151,285
72,817

467,827
404,152
32
142,693
79,050

230,745
207,469
3
31,728
8,455

232,389
193,440
31
109,405
70,487

234,949r
210,552

35,192"
34,034
2,920
1,851"

34,718"
32,584
8
3,184
1,058"

55,4%
33,184

31,875
7,480r

237,052r
198,868
19
110,995
74,163r

24,161
1,850

110,017
16,510

113,599
15,513

54,044
7,603

58,903
7,904

54,016
8,649"

61,681
9,402r

3,890
1,087"

2,443
864

21,365
1,469

380,047

396,011

178,468

214,303

186,840"

224,569"

31,723"

33,142"

33,322

353,891

370,526

167,224

199,727

175,802

208,110

29,514

28,9%

32,597

21,795
21,635
4,522

25,457
20,922
4,563

2,638
8,9%
2,249

22,150
12,2%
2,279

3,306
8,721
2,317

20,433
14,070
2,389"

1,770
439"

3,762
384"

3,988
316
409

35,345
16,707
11,500
27,316

42,430
15,921
11,138
22,852

17,535
8,568
5,333
16,032

20,703
7,488
5,631
8,991

24,428r
8,694
5,507r
13,508

22,389"
8,145
5,701"
10,992"

3,546"
1,658
%2
3,197"

4,051
1,579
827
2,323"

4,093
1,552
1,004
2,980

OUTLAYS

18 All types

1,251,776

1,323,757

647,461

632,153

694,474

705,068"

122,226"

102,920"

112,943

19
20
21
22
23
24

National defense
International affairs
General science, space, and technology .
Energy
Natural resources and environment
Agriculture

299,331
13,762
14,444
2,372
17,067
11,958

272,514
16,167
15,946
2,511
18,708
14,864

149,497
8,943

122,089
7,592
7,4%
1,235
8,324
7,684

147,531
7,651
8,473
1,536
7,335

146,963
8,464
7,952
1,442
8,625
7,514

30,180
684
1,417
275
1,677
468

21,238
186
1,352
508
1,516
381

25,842
1,727
1,159
665
1,742
195

25
26
27
28

Commerce and housing credit
Transportation
Community and regional development ..
Education, training, employment, and
social services

67,160
29,485
8,498

75,639
31,531
7,432

37,491

36,579
17,094
3,784

15,583
15,681
3,901

846
3,144
676

-2,721

3,939

17,992
14,748
3,552

570

585
3,618
764

8,081

1,222
9,933
6,878
16,218

11,221

2,818

41,479

18,988

21,234

21,104

23,224

3,125

3,492

2,233

29 Health
30 Social security and medicare
31 Income security

57,716
346,383
147,314

71,183
373,495
171,618

31,424
176,353
75,948

35,608
190,247
88,778

41,458
193,156
87,923

43,698
205,443
105,911"

7,164
35,553
18,306"

7,593
33,593
14,616"

8,834
34,460
15,173

32
33
34
35
36

29,112
10,004
10,724
184,221
-36,615

31,344
12,295
11,358
195,012
-39,356

15,479
5,265
6,976
94,650
-19,829

14,326
6,187
5,212
98,556
-18,702

17,425
6,586

15,597
7,438
5,538
100,324
-18,229

4,010
1,217
411
16,670
-3,597

1,369
1,155
917
17,274
-2,937

3,213
1,277
1,869
15,435
-5,847

Veterans benefits and services
Administration of justice
General government
Net interest 6
Undistributed offsetting receipts

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 outlays does not correspond to calendar year data because revisions from
the Budget have not been fully distributed across months.
2. Old-age, disability, and hospital insurance, and railroad retirement accounts.
3. Old-age, disability, and hospital insurance.
4. Federal employee retirement contributions and civil service retirement and
disability fund.

6,821

99,405
-20,435

5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts.
6. Includes interest received by trust funds.
7. Consists of rents and royalties for the outer continental shelf and U.S.
government contributions for employee retirement.
SOURCES. U.S. Department of the Treasury, Monthly Treasury Statement of
Receipts and Outlays of the U.S. Government, and the U.S. Office of Management and Budget, Budget of the U.S. Government, Fiscal Year 1993.

Federal Finance
1.40

A29

FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars, end of month
1990

1992

1991

Item
Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

1 Federal debt outstanding

3,266

3,397

3,492

3,563

3,683

3,820

3,897

n.a.

n.a. r

2 Public debt securities
3 Held by public
4 Held by agencies

3,233
2,438
796

3,365
2,537
828

3,465
2,598
867

3,538
2,643
895

3,665
2,746
920

3,802
2,833
969

3,881
2,918
964

3,985
n.a.
n.a.

4,065r
n.a. r
n.a. r

33
33
0

33
32
0

27
26
0

25
25
0

18
18
0

19
19
0

16
16
0

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

n.a. r
n.a. r
n.a. r

3,161

3,282

3,377

3,450

3,569

3,707

3,784

3,891

3,973r

3,161
0

3,281
0

3,377
0

3,450
0

3,569
0

3,706
0

3,783
0

3,890
0

3,972r
0"

3,195

4,145

4,145r

5 Agency securities
6 Held by public
7 Held by agencies
8 Debt subject to statutory limit
9 Public debt securities
10 Other debt 1
MEMO

11 Statutory debt limit

1. Consists of guaranteed debt of Treasury and other federal agencies, specified
participation certificates, notes to international lending organizations, and District
of Columbia stadium bonds.

1.41

GROSS PUBLIC DEBT OF U.S. TREASURY

SOURCES. U.S. Treasury Department, Monthly Statement of the Public Debt of
the United States and Treasury Bulletin.

Types and Ownership

Billions of dollars, end of period
1991
Type and holder

1 Total gross public debt
2
3
4
5
6
7
8
9
10
11
12
13
14

By type
Interest-bearing
Marketable
Bills
Notes
Bonds
Nonmarketable 1
State and local government series
Foreign issues
Government
Public
Savings bonds and notes.
Government account series3
Non-interest-bearing

By holder 4
15 U.S. Treasury and other federal agencies and trust funds
16 Federal Reserve Banks
17 Private investors
18 Commercial banks
19 Money market funds
20 Insurance companies
21 Other companies
22 State and local treasuries
Individuals
Savings bonds
23
24
Other securities
25
Foreign and international
26
Other miscellaneous investors 6

1988

1990

1992

1991
Q4

2,684.4

2,953.0

3,364.8

3,801.7

3,881.3

3,984.7

4,064.6

2,663.1
1,821.3
414.0
1,083.6
308.9
841.8
151.5
6.6
6.6
.0
107.6
575.6
21.3

2,931.8
1,945.4
430.6
1,151.5
348.2
986.4
163.3
6.8
6.8
.0
115.7
695.6
21.2

3,362.0
2,195.8
527.4
1,265.2
388.2
1,166.2
160.8
43.5
43.5
.0
124.1
813.8
2.8

3,798.9
2,471.6
590.4
1,430.8
435.5
1,327.2
159.7
41.9
41.9
.0
135.9
959.2
2.8

3,878.5
2,552.3
615.8
1,477.7
443.8
1,326.2
157.8
42.0
42.0
.0
139.9
956.1
2.8

3,981.8
2,605.1
618.2
1,517.6
454.3
1,376.7
161.9
38.7
38.7
.0
143.2
1,002.5
2.9

4,061.8
2,677.5
634.3
1,566.4
461.8
1,384.3
157.6
37.0
37.0
.0
148.3
1,011.0
2.8

589.2
238.4
1,858.5
184.9
11.8
118.6
87.1
471.6

707.8
228.4
2,015.8
164.9
14.9
125.1
93.4
487.5

828.3
259.8
2,288.3
171.5
45.4
142.0
108.9
490.4

968.7
281.8
2,563.2
233.9
80.0
172.9
150.8
498.8

963.7
267.6
2,664.0
240.0
84.8
175.0
166.0
500.0

n.a.

109.6
79.2
362.2
433.0

117.7
98.7
392.9
520.7

126.2
107.6
421.7
674.5

138.1
125.8
453.4
709.5

142.0
126.1
468.0
762.1

1. Includes (not shown separately) securities issued to the Rural Electrification
Administration, depository bonds, retirement plan bonds, and individual retirement bonds.
2. Nonmarketable series denominated in dollars, and series denominated in
foreign currency held by foreigners.
3. Held almost entirely by U.S. Treasury and other federal agencies and trust
funds.
4. Data for Federal Reserve Banks and U.S. government agencies and trust
funds are actual holdings; data for other groups are Treasury estimates.

1989

5. Consists of investments of foreign balances and international accounts in the
United States.
6. Includes savings and loan associations, nonprofit institutions, credit unions,
mutual savings banks, corporate pension trust funds, dealers and brokers, certain
U.S. Treasury deposit accounts, and federally sponsored agencies.
SOURCES. U.S. Treasury Department, data by type of security, Monthly
Statement of the Public Debt of the United States; data by holder, the Treasury
Bulletin.

A30
1.42

DomesticNonfinancialStatistics • December 1992
U.S. GOVERNMENT SECURITIES DEALERS

Transactions 1

Millions of dollars, daily averages
1992

1992, week ending

Item
June
IMMEDIATE TRANSACTIONS

1
2
3
4
5
6
7
8
9
10

11
12
13
14
15
16

By type of security
U.S. Treasury securities
Bills
Coupon securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency securities
Debt, maturing in
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed
Pass-throughs
All others
By type of counterparty
Primary dealers and brokers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed
Customers
U.S. Treasury securities
Federal agency securities
Debt
Mortgage-backed

July

Aug.

Aug. 5

Aug. 12

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Sept. 30

39,314

39,895

35,523

37,082

32,442

35,450

38,131

34,875

38,338

41,851

42,769

44,531

37,879
31,278r
13,912
11,926

42,881
43,378r
19,672r
16,132

45,267
36,672
22,308
16,539

45,115
41,506
23,702
16,508

47,289
34,995
28,207
19,111

43,465
37,334
23,075
18,962

50,806
37,657
18,688
14,264

35,819
31,889
15,837
12,034

39,308
35,730
22,815
14,286

42,698
39,574
23,107
15,362

45,148
37,171
18,130
14,874

41,634
40,468
20,177
13,329

4,461
513
553

4,334
670
646

4,343
684
536

4,579
859
517

3,938
865
451

4,342
566
446

4,318
539
676

4,826
648
616

4,891
617
509

4,109
670
910

4,490
391
742

6,471
654
1,069

14,190r
3,865r

13,806r
4,llO7

12,787
3,95l r

10,368
3,011r

17,008
3,159*

12,948
4,645

10,861
4,122

11,116
4,767

14,496
2,713

17,269
4,617

12,592
4,157

11,220
5,168

83,394r

101,221r

99,904

103,687

103,519

100,019

104,664

81,971

91,237

104,696

102,125

101,875

1,007
8,405r

1,097
8,02 R

1,016
7,240

1,035
5,586r

1,146
9,214r

998
7,489

766
6,913

1,225
5,735

1,072
7,441

1,397
9,854

1,283
8,049

1,732
5,568

50,915

60,737

56,405

60,227

58,525

58,267

54,883

48,483

59,240

57,8%

55,966

58,264

4,520
9,65 f

4,554
9,895r

4,548
9,498r

4,921
7,792r

4,108
10,953r

4,354
10,104

4,768
8,070

4,865
10,147

4,944
9,769

4,292
12,032

4,340
8,699

6,463
10,820

2,939r

2,886r

2,354r

2,096

2,501

2,588

2,467

1,791

2,121

4,960

2,827

2,271

1,715
l,391r
1,319
6,576

1,762
l,326r
1,969
9,620

2,216
1,329*
2,713r
10,152r

2,174
1,420
3,537
10,453

2,468
1,217
2,529
10,359

2,104
1,060
2,714
10,025

2,341
1,280
2,642
11,091

1,815
1,952
2,311
8,153

2,373
2,224
2,482
10,535

1,962
1,857
3,859
12,172

2,037
1,820
3,283
10,808

1,418
1,545
2,336
7,712

45
63
22

20
61
37

81
147
44

9
47
10

11
120
18

185
329
115

31
87
21

182
87
44

8
156
8

13
141
13

132
58
12

59
11
6

12,869"
2,657

16,925rr
3,246

15,902
2,832

17,486
2,977

21,058
2,306

13,493
3,207

14,087
2,941

12,766
2,755

17,497
1,845

17,826
2,490

15,341
2,410

17,327
2,920

1,255
317
484
1,576

1,550
635
685
2,520

1,431
433
1,054
2,795

1,377
251
728
3,037

1,463
572
1,014
3,247

1,434
226
641
2,239

1,817
688
1,693
3,548

784
301
1,070
1,471

1,365
619
1,132
2,469

1,052
603
633
1,700

807
808
1,064
3,000

1,287
568
436
1,174

389

499

343

302

290

257

456

427

1,079

401

308

155

FUTURES AND FORWARD
TRANSACTIONS 4

By type of deliverable security
U.S. Treasury securities
17 Bills
Coupon securities, by maturity
18 Less than 3.5 years
19 3.5 to 7.5 years
20 7.5 to 15 years
21
15 years or more
Federal agency securities
Debt, maturing in
22
Less than 3.5 years
23
3.5 to 7.5 years
24
7.5 years or more
Mortgage-backed
25
Pass-throughs
26
Others
OPTIONS TRANSACTIONS 5

27
28
29
30
31

By type of underlying security
U.S. Treasury, coupon
securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency, mortgagebacked securities
Pass-throughs

1. Transactions are market purchases and sales of securities as reported to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Averages for transactions are based on the
number of trading days in the period. Immediate, forward, and futures transactions are reported at principal value, which does not include accrued interest;
options transactions are reported at the face value of the underlying securities.
Dealers report cumulative transactions for each week ending Wednesday.
2. Transactions for immediate delivery include purchases or sales of securities
(other than mortgage-backed agency securities) for which delivery is scheduled in
five business days or less and "when-issued" securities that settle on the issue
date of offering. Transactions for immediate delivery of mortgage-backed agency
securities include purchases and sales for which delivery is scheduled in thirty days or
less. Stripped securities are reported at market value by maturity of coupon or corpus.
3. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),
and principal-only securities (POs).

4. Futures transactions are standardized agreements arranged on an exchange.
Forward transactions are agreements made in the over-the-counter market that
specify delayed delivery. All futures transactions are included regardless of time
to delivery. Forward contracts for U.S. Treasury securities and federal agency
debt securities are included when the time to delivery is more than five business
days. Forward contracts for mortgage-backed agency securities are included
when the time to delivery is more than thirty days.
5. Options transactions are purchases 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. In tables 1.42 and 1.43, " n . a . " indicates that data are not published
because of insufficient activity.
Data formerly shown under options transactions for U.S. Treasury securities,
bills; Federal agency securities, debt; and mortgage-backed securities, other than
pass-throughs are no longer available because of insufficient activity.

Federal Finance
1.43

U.S. GOVERNMENT SECURITIES DEALERS

A31

Positions and Financing 1

Millions of dollars
1992, week ending

1992
Item
June

July

Aug.

Aug. 5

Aug. 12

Aug. 19

Aug. 26

Sept. 2

Sept. 9

Sept. 16

Sept. 23

Positions2
NET IMMEDIATE POSITIONS3

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

By type of security
U.S. Treasury securities
Bills
Coupon securities, by maturity
Less than 3.5 years
3.5 to 7.5 years
7.5 to 15 years
15 years or more
Federal agency securities
Debt, maturing in
Less than 3.5 years
3.5 to 7.5 years
7.5 years or more
Mortgage-backed
Pass-throughs
All others
Other money market instruments
Certificates of deposit
Commercial paper
Bankers acceptances

9,816

10,399

8,264

7,100

6,846

7,888

8,132

12,122

13,595

12,450

18,295

-7,838
-6,907
-3,706
-177

-7,674
-7,629
-6,825
2,970

-2,799
-10,045
-6,464
5,204

-5,088
-8,602
-9,255
5,321

-789
-9,727
-5,464
5,100

-4,903
-11,509
-4,950
6,924

-621
-8,594
-6,498
3,499

-3,427
-11,916
-7,148
5,212

-3,476
-15,727
-8,733
5,926

-4,158
-14,788
-10,700
5,119

-130
-10,329
-11,045
5,654

5,265
2,178
3,482

4,944
2,908
3,481

6,256r
3,194
4,233

5,349
3,288
3,833

6,571
3,226
4,219

6,540
3,267
4,117

5,526
3,093
4,429

7,348
3,0%
4,543

6,432
3,106
4,569

5,595
2,964
4,319

7,071
2,942
4,366

31,088
18,708

30,255r
22,090

30,749"^
23,366

21,276r
23,942

34,285
23,490

38,339
21,812

32,921
23,314

21,604
24,863

33,745
24,672

37,553
26,538

29,645
28,267

2,796
6,416
1,045

2,811
6,021
1,158

3,734
5,542
978

3,074
5,524
935

3,666
5,552
892

4,701
5,191
1,207

3,087
5,611
837

4,042
5,941
1,019

3,600
6,545
1,023

4,254
6,919
1,066

3,558
5,713
793

-2,667 r

-6,214 r

-6,189"^

-4,927 r

-6,994

-8,876

-5,121

-4,055

-5,734

-8,014

-6,015

2,178
3,201
-493
-7,518

2,260
3,031
-450
-7,870

1,543
3,030
399
-7,645

1,931
2,458
2,361
-9,349

1,912
3,333
936
-9,200

757
4,042
-687
-9,381

1,820
2,824
-81
-4,750

1,354
2,050
-121
-5,384

1,826
1,639
-463
-6,061

1,807
1,665
44
-4,254

1,876
2,609
246
-2,891

17
-19
-11

59
-79
45

3r
-2
-20

-10
15
73

32
133
-124

-54
-143
-70

-2
-13
102

65
2
-70

-23
-76
-81

7
-153
-70

14
14
-10

-20,201 rr -18,255
4,672
5,955
-232,567 -251,401

-10,082
5,123
-237,681

-22,147
5,763
-243,912

-27,277
6,326
-254,808

-18,173
7,150
-265,826

-8,463
4,862
-250,638

-17,543
6,272
-251,740

-22,571
7,347
-257,037

-14,714
7,466
-226,981

FUTURES AND FORWARD POSITIONS5

By type of deliverable security
U.S. Treasury securities
14 Bills
Coupon securities, by maturity
15 Less than 3.5 years
16 3.5 to 7.5 years
17 7.5 to 15 years
18 15 years or more
Federal agency securities
Debt, maturing in
19
Less than 3.5 years
20
3.5 to 7.5 years
21
7.5 years or more
Mortgage-backed
Pass-throughs
22
23
All others
24 Certificates of deposit

-23,361
2,486
-222,803

Financing6
Reverse repurchase agreements
25 Overnight and continuing
26 Term

208,440
297,759

214,805
315,020

218,808
320,431

226,800
326,783

219,461
343,506

227,464
307,694

210,614
323,007

209,252
295,997

220,175
313,881

214,663
333,993

202,%1
343,265

Repurchase agreements
27 Overnight and continuing
28 Term

339,382
266,179

356,881
287,022

361,098
300,209

349,820
297,761

353,449
320,519

375,964
293,181

360,499
309,378

363,112
271,228

376,527
282,138

379,964
307,902

371,852
321,059

Securities borrowed
29 Overnight and continuing
30 Term

84,573
35,187

92,740
37,846

97,726
40,171

96,914
36,142

97,500
38,794

97,303
39,853

97,898
43,148

99,204
42,404

102,780
42,274

103,327
42,940

103,169
45,998

Securities loaned
31 Overnight and continuing
32 Term

7,627
801

8,173
1,008

8,822
1,496

9,158
955

9,120
941

8,651
1,431

8,527
3,007

8,723
790

9,398
667

9,491
839

10,547
1,317

Collateralized loans
33 Overnight and continuing

14,879

17,919

19,635

18,744

20,838

19,724

19,516

18,886

17,366

17,416

17,475

MEMO: Matched book7
Reverse repurchase agreements
34 Overnight and continuing
35 Term

148,092
255,829

152,606
269,912

151,137
272,361

155,924
280,990

151,233
296,730

156,883
258,105

148,128
269,495

142,383
253,585

150,089
269,694

148,377
288,004

141,458
294,999

Repurchase agreements
36 Overnight and continuing
37 Term

187,957
200,805

194,278
212,775

182,822
229,511

182,920
230,950

183,944
251,880

179,657
225,325

179,467
230,112

190,283
201,772

188,294
218,264

195,613
233,305

183,730
243,500

1. Data for positions and financing are obtained from reports submitted to the
Federal Reserve Bank of New York by the U.S. government securities dealers on
its published list of primary dealers. Weekly figures are close-of-business Wednesday data; monthly figures are averages of weekly data.
2. Securities positions are reported at market value.
3. Net immediate positions include securities purchased or sold (other than
mortgage-backed agency securities) that have been delivered or are scheduled to
be delivered in five business days or less and "when-issued" securities that settle
on the issue date of offering. Net immediate positions of mortgage-backed agency
securities include securities purchased or sold that have been delivered or are
scheduled to be delivered in thirty days or less.
4. Includes such securities as collateralized mortgage obligations (CMOs), real
estate mortgage investment conduits (REMICs), interest-only securities (IOs),
and principal-only securities (POs).
5. Futures positions are standardized contracts arranged on an exchange.
Forward positions reflect agreements made in the over-the-counter market that
specify
delayed delivery. All futures positions are included regardless of time to
for FRASER

Digitized

delivery. Forward contracts for U.S. Treasury securities and federal agency debt
securities are included when the time to delivery is more than five business days.
Forward contracts for mortgage-backed agency securities are included when the
time to delivery is more than thirty days.
6. Overnight financing refers to agreements made on one business day that
mature on the next business day; continuing contracts are agreements that remain
in effect for more than one business day but have no specific maturity and can be
terminated without advance notice by either party; term agreements have a fixed
maturity of more than one business day.
7. Matched-book data reflect financial intermediation activity in which the
borrowing and lending transactions are matched. Matched-book data are included
in the financing breakdowns given above. The reverse repurchase and repurchase
numbers are not always equal because of the "matching" of securities of different
values or types of collateralization.
NOTE. Data for futures and forward commercial paper and bankers acceptances and
for term financing of collateralized loans are no longer available because of insufficient
activity.

A32
1.44

DomesticNonfinancialStatistics • December 1992
FEDERAL A N D FEDERALLY SPONSORED CREDIT AGENCIES

Debt Outstanding

Millions of dollars, end of period
1992
1988

Agency

1 Federal and federally sponsored agencies
2 Federal agencies
3 Defense Department 1
4 Export-Import Bank 2,
5 Federal Housing Administration
6 Government National Mortgage Association certificates of
participation
7 Postal Service6
8 Tennessee Valley Authority
9 United States Railway Association
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 Corporation
17 Farm Credit Financial Assistance Corporation
18 Resolution Funding Corporation 12

1989

1990

1991
Mar.

Apr.

May

June

July

381,498

411,805

434,668

442,772

445,646

449,472

449,561

457,182

456,885

35,668
8
11,033
150

35,664
7
10,985
328

42,159
7
11,376
393

41,035
7
9,809
397

41,322
7
8,644
421

40,788
7
8,644
419

40,535
7
8,644
427

40,388
7
8,156
432

39,773
7
8,156
194

0
6,142
18,335
0

0
6,445
17,899
0

0
6,948
23,435
0

0
8,421
22,401
0

0
9,771
22,479
0

0
9,771
21,947
0

0
9,771
21,686
0

0
10,123
21,670
0

0
10,123
21,293
0

345,830
135,836
22,797
105,459
53,127
22,073
5,850
690
0

375,407
136,108
26,148
116,064
54,864
28,705
8,170
847
4,522

392,509
117,895
30,941
123,403
53,590
34,194
8,170
1,261
23,055

401,737
107,543
30,262
133,937
52,199
38,319
8,170
1,261
29,996

404,324
106,511
25,154
141,315
52,651
39,216
8,170
1,261
29,996

408,684
107,011
25,233
145,856
52,368
38,739
8,170
1,261
29,9%

409,026
106,368
27,612
144,655
52,080
38,885
8,170
1,261
29,9%

416,794
106,050
32,479
149,013
51,805
38,020
8,170
1,261
29,9%

417,112
107,343
33,959
147,377
49,241
39,765
8,170
1,261
29,9%

142,850

134,873

179,083

185,576

185,849

186,879

179,617

180,848

177,700

11,027
5,892
4,910
16,955
0

10,979
6,195
4,880
16,519
0

11,370
6,698
4,850
14,055
0

9,803
8,201
4,820
10,725
0

8,638
9,551
4,820
10,025
0

8,638
9,551
4,820
9,325
0

8,638
9,551
4,820
9,025
0

8,150
9,903
4,820
9,025
0

8,150
9,903
4,820
8,475
0

58,496
19,246
26,324

53,311
19,265
23,724

52,324
18,890
70,896

48,534
18,562
84,931

48,534
18,424
85,857

47,634
18,440
88,471

45,434
18,473
83,676

44,784
18,199
85,%7

43,209
18,227
84,916

MEMO

19 Federal Financing Bank debt13
20
21
22
23
24

Lending to federal and federally sponsored agencies
Export-Import Bank
Postal Service6
Student Loan Marketing Association
Tennessee Valley Authority
United States Railway Association 6

Other lending14
25 Farmers Home Administration
26 Rural Electrification Administration
27 Other

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 1969 by the Government
National Mortgage Association acting as trustee for the Farmers Home Administration, the Department of Health, Education, and Welfare, the Department of
Housing and Urban Development, the Small Business Administration, and the
Veterans' Administration.
6. Off-budget.
7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Some data are estimated.
8. Excludes borrowing by the Farm Credit Financial Assistance Corporation,
shown in line 17.
9. Before late 1982, the Association obtained financing through the Federal
Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is
shown on line 22.

10. The Financing Corporation, established in August 1987 to recapitalize the
Federal Savings and Loan Insurance Corporation, undertook its first borrowing in
October 1987.
11. The Farm Credit Financial Assistance Corporation, established in January
1988 to provide assistance to the Farm Credit System, undertook its first
borrowing in July 1988.
12. The Resolution Funding Corporation, established by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, undertook its first
borrowing in October 1989.
13. The 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 in order 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, while the Rural Electrification Administration entry consists of both agency assets and guaranteed loans.

Securities Market and Corporate Finance
1.45

NEW SECURITY ISSUES

A33

Tax-Exempt State and Local Governments

Millions of dollars
1992
Type of issue or issuer,
or use

1989

1 All issues, new and refunding1

1990

1991
Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

113,646

120,339

154,402

14,032

15,956

15,141

14,155

20,501

16,184

18,006

17,513

By type of issue
2 General obligation
3 Revenue

35,774
77,873

39,610
81,295

55,100
99,302

6,102
7,930

6,212
9,744

4,455
10,686

5,429
8,726

7,213
13,288

6,808
9,376

6,451
11,555

7,095
10,418

By type of issuer
4 State
5 Special district or statutory authority2
6 Municipality, county, or township

11,819
71,022
30,805

15,149
72,661
32,510

24,939
80,614
48,849

3,023
6,605
4,404

3,174
7,511
5,271

575
9,802
4,764

1,165
8,251
4,739

2,063
12,894
5,544

2,836
8,838
4,510

1,933
9,435
n.a.

1,857
9,435
6,221

7 Issues for new capital, total

84,062

103,235

116,953

9,467

10,637

9,020

9,259

14,096

7,565

11,993

11,046

By use of proceeds
Education
Transportation
Utilities and conservation
Social welfare
Industrial aid
Other purposes

15,133
6,870
11,427
16,703
5,036
28,894

17,042
11,650
11,739
23,099
6,117
34,607

21,121
13,395
21,039
25,648
8,376
30,275

2,604
1,996
800
1,925
123
2,019

1,075
1,412
2,104
1,811
528
3,707

2,208
921
1,380
2,582
558
1,371

1,651
1,669
771
2,045
133
2,990

2,132
2,618
1,851
4,266
724
2,505

1,747
571
629
887
91
3,640

1,737
2,130
2,604
767
503
4,252

1,388
1,962
2,245
2,033
1,092
2,326

8
9
10
11
12
13

1. Par amounts of long-term issues based on date of sale.
2. Since 1986, has included school districts.

1.46

NEW SECURITY ISSUES

SOURCES. Investment Dealer's Digest beginning April 1990. Securities Data/
Bond Buyer Municipal Data Base beginning 1986. Public Securities Association
for earlier data.

U.S. Corporations

Millions of dollars
1992
Type of issue, offering,
or issuer

1989

1990

1991
Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

1 All issues'

377,836

339,052

455,291

45,017r

37,494r

38,303

28,948r

44,947"

47,985"

46,020"

36,586

2 Bonds2

319,965

298,814

389,933

38,333r

27,958r

31,946

23,610"

38,031"

38,988"

39,543"

31,310

By type of offering
3 Public, domestic
4 Private placement, domestic
5 Sold abroad

179,694
117,420
22,851

188,778
86,982
23,054

287,041
74,930
27,962

34,662r
n.a.
3,671

26,33l r
n.a.
1,626

29,417
n.a.
2,529

22,236"
n.a.
1,373

35,059"
n.a.
2,972

35,960"
n.a.
3,027

37,618"
n.a.
1,924"

28,500
n.a.
3,200

76,175
49,465
10,032
18,656
8,461
157,176

52,635
40,018
12,711
17,621
6,597
169,231

85,535
37,809
13,628
23,994
9,331
219,637

7,229
2,751
455
3,816r
2,467
21,616

3,940"
1,664
1,004
3,569
416
17,364

8,955
3,670
641
1,8%
725
16,060

4,170"
2,351"
140"
3,462
1,205
12,282"

6,046"
2,472
621
3,041
1,590
24,261"

7,263"
1,630
899
4,251
1,028
23,916"

5,509"
3,476"
766
6,909"
2,081"
20,801"

4,694
2,230
393
4,401
928
18,665

12 Stocks2

57,870

40,165

75,467

6,684

9,536

6,357

5,338

6,916

8,997

6,477

5,276

By type of offering
13 Public preferred
14 Common
15 Private placement3

6,194
26,030
25,647

3,998
19,443
16,736

17,408
47,860
10,109

739
5,945
n.a.

4,306
5,230
n.a.

625
5,732
n.a.

334
5,004
n.a.

1,552
5,364
n.a.

2,916
6,081
n.a.

2,413
4,064
n.a.

1,148
4,129
n.a.

9,308
7,446
1,929
3,090
1,904
34,028

5,649
10,171
369
416
3,822
19,738

24,154
19,418
2,439
3,474
475
25,507

2,098
993
426
268
163
2,736

2,541
3,194
78
489
0
3,234

2,637
1,595
193
704
53
1,175

1,523
1,162
0
577
333
1,691

2,499
2,010
176
826
12
1,324

3,000
1,070
1,064
610
0
3,254

857
1,599
0
564
0
3,457

713
1,287
0
921
0
2,327

6
7
8
9
10
11

16
17
18
19
20
21

By industry group
Manufacturing
Commercial and miscellaneous
Transportation
Public utility
Communication
Real estate and financial

1. Figures represent gross proceeds of issues maturing in more than one year;
they are the principal amount or number of units calculated by multiplying by the
offering price. Figures exclude secondary offerings, employee stock plans,
investment companies other than closed-end, intracorporate transactions, equities sold abroad, and Yankee bonds. Stock data include ownership securities
issued by limited partnerships.

2. Monthly data cover only public offerings.
3. Monthly data are not available.
SOURCES. IDD Information Services, Inc., the Board of Governors of the
Federal Reserve System, and, before 1989, the U.S. Securities and Exchange
Commission.

A34
1.47

DomesticNonfinancialStatistics • December 1992
O P E N - E N D INVESTMENT COMPANIES

Net Sales and Assets

Millions of dollars
1992
Item 1

1990

1991
Jan

Feb.

Mar.

Apr.

May

June

July r

Aug.

1 Sales of own shares2

344,420

464,488

66,048

48,015

50,462

52,309

48,127

51,457

54,915

50,627

2 Redemptions of own shares
3 Net sales3

288,441
55,979

342,088
122,400

41,917
24,131

30,869
17,146

35,464
14,998

39,302
13,007

31,409
16,718

37,457
14,000

34,384
20,703

35,223
15,404

4 Assets4

568,517

807,001

823,767

846,868

848,842

870,011

897,211

911,218

951,806

957,145

5 Cash 5
6 Other

48,638
519,875

60,937
746,064

62,289
761,478

64,022
782,846

64,216
781,626

67,632
802,379

67,270
829,941

69,508
841,710

72,732
879,074

77,245
879,900

1. Data on sales and redemptions exclude money market mutual funds but
include limited-maturity municipal bond funds. Data on assets exclude both
money market mutual hinds and limited-maturity municipal bond funds.
2. Includes reinvestment of dividends. Excludes reinvestment of capital gains
distributions.
3. Does not includes sales or redemptions resulting from transfers of shares
into or out of money market mutual funds within the same fund family.

1.48

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 new
companies.

CORPORATE PROFITS A N D THEIR DISTRIBUTION
Billions of dollars; quarterly data at seasonally adjusted annual rates
1990
Account

1989

1990

1991

1992

1991
Q3

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

362.8
342.9
141.3
201.6
134.6
67.1

361.7
355.4
136.7
218.7
149.3
69.4

346.3
334.7
124.0
210.7
146.5
64.2

351.4
367.0
143.0
224.0
150.6
73.4

344.0
354.7
133.7
221.0
151.9
69.1

349.6
337.6
121.3
216.3
150.6
65.7

347.3
332.3
122.9
209.4
146.2
63.2

341.2
336.7
127.0
209.6
145.1
64.5

347.1
332.3
125.0
207.4
143.9
63.4

384.0
366.1
136.4
229.7
143.6
86.2

388.4
376.8
144.1
232.7
146.6
86.1

7 Inventory valuation
8 Capital consumption adjustment

-17.5
37.4

-14.2
20.5

3.1
8.4

-32.6
17.0

-21.2
10.5

6.7
5.3

9.9
5.1

-4.8
9.3

.7
14.1

-5.4
23.3

-15.5
27.0

Q41

SOURCE. U.S. Department of Commerce, Survey of Current Business.

1.50

TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data at seasonally adjusted annual rates
1991
Industry

1990

1991

1992

19921
Ql

1 Total nonfarm business

532.61

528.39

551.03

534.27

525.02

526.59

529.87

535.72

540.91

565.16

562.36

Manufacturing
2 Durable goods industries
3 Nondurable goods industries

82.58
110.04

77.64
105.17

75.70
101.72

80.99
109.84

79.31
107.20

74.94
102.55

76.40
102.66

74.19
99.79

74.26
97.52

76.10
106.69

78.25
102.86

Nonmanufacturing
4 Mining
Transportation
5 Railroad
6 Air
7 Other
Public utilities
8 Electric
9
Gas and other
10 Commercial and other 2

9.88

10.02

9.21

9.94

10.08

10.09

9.99

8.87

9.18

9.76

9.01

6.40
8.87
6.20

5.95
10.17
6.54

6.74
9.58
7.34

5.68
10.89
6.41

6.25
9.95
6.67

6.32
9.61
6.63

5.44
10.41
6.45

6.65
8.86
6.37

6.50
9.75
7.27

7.08
9.60
7.77

6.74
10.12
7.95

44.10
23.11
241.43

43.76
22.82
246.32

48.85
23.85
268.05

43.62
23.40
243.51

43.09
22.00
240.46

43.27
23.25
249.94

44.75
22.67
251.11

46.06
22.75
262.17

48.45
24.19
263.80

50.16
24.37
273.62

50.74
24.11
272.59

1. Figures are amounts anticipated by business.
2. "Other" consists of construction, wholesale and retail trade, finance and
insurance, personal and business services, and communication.

SOURCE. U.S. Department of Commerce, Survey of Current Business.

Securities Markets and Corporate Finance
1.51

DOMESTIC FINANCE COMPANIES

A35

Assets and Liabilities

Billions of dollars, end of period; not seasonally adjusted
1990
Account

1988

1992

1991

1990

1989

ASSETS

1 Accounts receivable, gross1
2 Consumer
3 Business
4 Real estate

437.3
144.7
245.3
47.3

462.9
138.9
270.2
53.8

492.9
133.9
293.5
65.5

482.9
127.1
291.7
64.1

488.5
127.5
295.2
65.7

484.7
125.3
293.2
66.2

480.3
121.9
292.6
65.8

475.7
118.4
291.6
65.8

477.0
116.7
293.9
66.4

52.4
7.8

54.7
8.4

57.6
9.6

57.2
10.7

58.0
11.1

57.6
13.1

55.1
12.9

53.6
13.0

51.2
12.3

7 Accounts receivable, net
8 All other

377.1
86.6

399.8
102.6

425.7
113.9

415.0
118.7

419.3
122.8

414.1
136.4

412.3
149.0

409.1
145.5

413.6
139.4

9 Total assets

463.7

502.4

539.6

533.7

542.1

550.5

561.2

554.6

553.0

23.9
152.1

27.0
160.7

31.0
165.3

35.6
155.5

36.9
156.1

39.6
156.8

42.3
159.5

38.0
154.4

37.8
147.7

n.a.
n.a.
36.8
147.0
60.0
44.0

n.a.
n.a.
35.2
162.7
61.5
55.2

n.a.
n.a.
37.5
178.2
63.9
63.7

n.a.
n.a.
32.4
182.4
64.3
63.4

n.a.
n.a.
34.2
184.5
67.1
63.3

n.a.
n.a.
36.5
185.0
68.8
63.8

n.a.
n.a.
34.5
191.3
69.0
64.8

n.a.
n.a.
34.5
189.8
72.0
66.0

n.a.
n.a.
34.8
191.9
73.4
67.1

463.7

502.4

539.6

533.7

542.1

550.5

561.2

554.6

548.4

5 LESS: Reserves for unearned income
6
Reserves for losses

LIABILITIES AND CAPITAL

10 Bank loans
11 Commercial paper
12
13
14
15
16
17

Debt
Other short-term
Long-term
Due to parent
Not elsewhere classified
All other liabilities
Capital, surplus, and undivided profits

18 Total liabilities and capital
1. Excludes pools of securitized assets.

1.52

DOMESTIC FINANCE COMPANIES

Business Credit Outstanding and Net Change 1

Millions of dollars, end of period; seasonally adjusted except as noted
1992
Type of credit

1989

1990

1991
Mar.

Apr.

May

June

July

Aug.

SEASONALLY ADJUSTED

1 Total

481,436

523,023

519,573

521,174

520,242

519,668

520,804

522,834r

528,403

2 Consumer
3 Real estate 2
4 Business

157,766
53,518
270,152

161,070
65,147
296,807

154,786
65,388
299,400

157,106
66,323
297,744

156,103
67,032
297,107

154,989
66,898
297,781

154,850
66,433
299,521

153,588
66,843
302,403

155,044
67,913
305,446

484,566

526,441

522,853

521,282

522,017

520,682

524,587

522,686r

523,740

158,542
84,126
54,732
13,690
5,994
53,781
272,243
90,416
29,505
34,093
26,818
122,246
29,828
6,452
85,966
57,560
n.a.
710
n.a.
1,311

161,965
75,045
58,818
19,837
8,265
65,509
298,967
92,072
26,401
33,573
32,098
137,654
31,968
11,101
94,585
63,774
5,467
667
3,281
1,519

155,677
63,413
58,488
23,166
10,610
65,764
301,412
90,319
22,507
31,216
36,596
141,399
30,962
9,671
100,766
60,887
8,807
576
5,285
2,946

155,753
60,655
57,697
25,723
11,678
65,752
299,777
88,006
20,688
30,799
36,519
142,6%
31,601
9,265
101,830
60,876
8,199
480
5,098
2,621

155,106
61,717
56,647
24,697
12,045
66,604
300,307
89,105
20,842
31,161
37,102
143,510
31,824
9,217
102,469
59,573
8,119
206
5,137
2,776

154,414
59,399
56,740
26,529
11,746
66,650
299,618
88,585
20,143
30,893
37,549
143,431
31,569
9,116
102,746
59,291
8,311
1%
5,147
2,968

154,859
60,056
56,634
26,195
11,974
66,437
303,291
90,075
20,674
30,505
38,8%
145,994
32,610
9,194
104,190
57,586
9,636
178
5,231
4,227

154,099"
60,400
56,568
25,392
11,739
67,065
301,522
87,686"
21,086
27,158
39,443
145,787
32,370
9,128
104,289
59,099"
8,951"
170
4,649
4,132"

155,846
60,670
56,821
26,852
11,503
68,264
299,630
85,470
20,469
n.a.
39,889
145,828
32,250
9,084
104,493
58,%5
9,367
158
5,193
4,016

NOT SEASONALLY ADJUSTED

5
6 Consumer
7 Motor vehicles
8 Other consumer
9 Securitized motor vehicles4
10 Securitized other consumer
11 Real estate
12 Business
13 Motor vehicles
14
Retail5
15
Wholesale6
16
Leasing
17 Equipment
18
Retail
19
Wholesale6
Leasing
20
21 Other business
22 Securitized business assets
23
Retail
24
Wholesale
25
Leasing

1. Includes finance company subsidiaries of bank holding companies but not of
retailers and banks. Data are before deductions for unearned income and losses.
Data in this table also appear in the Board's G.20 (422) monthly statistical release.
For ordering address, see inside front cover.
2. Includes all loans secured by liens on any type of real estate, for example,
first and junior mortgages and home equity loans.
3. Includes personal cash loans, mobile home loans, and loans to purchase other
types of consumer goods such as appliances, apparel, general merchandise, and
recreation vehicles.
4. Outstanding balances of pools upon which securities have been issued; these

balances are no longer carried on the balance sheets of the loan originator.
5. Passenger car fleets and commercial land vehicles for which licenses are
required.
6. Credit arising from transactions between manufacturers and dealers, that is,
floor plan financing.
7. Includes loans on commercial accounts receivable, factored commercial
accounts, and receivable dealer capital; small loans used primarily for business or
farm purposes; and wholesale and lease paper for mobile homes, campers, and
travel trailers.

A36
1.53

DomesticNonfinancialStatistics • December 1992
MORTGAGE MARKETS Conventional Mortgages on New Homes
Millions of dollars, except as noted
1992
Item

1989

1990

1991
Mar.

Apr.

May

June

July

Aug.

Sept.

Terms and yields in primary and secondary markets
PRIMARY MARKETS

1
2
3
4
5
6

Terms1
Purchase price (thousands of dollars)
Amount of loan (thousands of dollars)
Loan-price ratio (percent)
Maturity (years)
Fees and charges (percent of loan amount)
Contract rate (percent per year)

Yield (percent per year)
7 OTS series3
8 HUD series4

159.6
117.0
74.5
28.1
2.06
9.76

153.2
112.4
74.8
27.3
1.93
9.68

155.0
114.0
75.0
26.8
1.71
9.02

167.0
123.2
76.1
25.2
1.75
8.21

162.5
122.7
76.9
26.6
1.88
8.26

158.7
119.7
77.3
26.4
1.69
8.30

154.4
116.1
77.3
25.0
1.57
8.15

173.5
132.6
77.5
26.4
1.19
7.81

148.4
113.6
78.7
24.8
1.62
7.72

146.0
109.3
77.0
25.7
1.52
7.68

10.11
10.21

10.01
10.08

9.30
9.20

8.51
8.91

8.58
8.78

8.59
8.66

8.43
8.42

8.00
8.14

8.00
8.01

7.93
7.95

10.24
9.71

10.17
9.51

9.25
8.59

8.85
8.20

8.79
8.10

8.66
8.00

8.56
7.90

8.12
7.63

8.08
7.28

8.06
7.31

SECONDARY MARKETS

Yield (percent per year)
9 FHA mortgages (HUD series)
10 GNMA securities 6

Activity in secondary markets
FEDERAL NATIONAL MORTGAGE ASSOCIATION

Mortgage holdings (end of period)
11 Total
12 FHA/VA-insured
13 Conventional

104,974
19,640
85,335

113,329
21,028
92,302

122,837
21,702
101,135

136,506
21,902
114,604

139,808
21,914
117,894

140,899
21,924
118,975

142,148
22,218
119,930

142,465
22,263
120,202

142,246
22,199
120,047

144,904
22,275
122,629

Mortgage transactions (during period)
14 Purchases

22,518

23,959

37,202

7,282

7,258

5,576

5,809

4,191

3,651

6,779

Mortgage commitments (during period)1
15 Issued
16 To sell9

n.a.
n.a.

23,689
5,270

40,010
7,608

6,738
1,143

5,400
2,219

4,392
1,695

4,662
1,831

4,663
807

6,053
10

8,880
148

Mortgage holdings (end of period)9
17 Total
18 FHA/VA-insured
19 Conventional

20,105
590
19,516

20,419
547
19,871

24,131
484
23,283

28,821
446
28,376

30,077
438
29,639

28,710
432
28,278

28,621
426
28,195

28,510
419
28,091

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

Mortgage transactions (during period)
20 Purchases
21 Sales

78,588
73,446

75,517
73,817

97,727
92,478

16,001
13,639

18,109
16,139

16,405
17,214

14,222
13,740

12,172
11,849""

n.a.
11,984

n.a.
13,993

Mortgage commitments (during period
22 Contracted

88,519

102,401

114,031

19,098

23,748

13,334

19,114

26,488

n.a.

FEDERAL HOME LOAN MORTGAGE CORPORATION

1. Weighted averages based on sample surveys of mortgages originated by
major institutional lender groups; compiled by the Federal Housing Finance
Board in cooperation with the Federal Deposit Insurance Corporation.
2. Includes all fees, commissions, discounts, and "points" paid (by the
borrower or the seller) to obtain a loan.
3. Average effective interest rates on loans closed, assuming prepayment at
the end of ten years; from Office of Thrift Supervision (OTS).
4. Average contract rates on new commitments for conventional first mortgages; from U.S. Department of Housing and Urban Development (HUD).
5. Average gross yields on thirty-year, minimum-downpayment, first mortgages insured by the Federal Housing Administration (FHA) for immediate
delivery in the private secondary market. Based on transactions on first day of
subsequent month. Large monthly movements of average yields may reflect
market adjustments to changes in maximum permissible contract rates.
6. Average net yields to investors on fully modified pass-through securities
backed by mortgages and guaranteed by the Government National Mortgage

Association (GNMA), assuming prepayment in twelve years on pools of thirtyyear mortgages insured by the Federal Housing Administration or guaranteed by
the Department of Veterans Affairs carrying the prevailing ceiling rate. Monthly
figures are averages of Friday figures from the Wall Street Journal.
7. Includes some multifamily and nonprofit hospital loan commitments in
addition to one- to four-family loan commitments accepted in the Federal National
Mortgage Association's (FNMA's) free market auction system, and through the
FNMA-GNMA tandem plans.
8. Does not include standby commitments issued, but includes standby
commitments converted.
9. Includes participation loans as well as whole loans.
10. Includes conventional and government-underwritten loans. The Federal
Home Loan Mortgage Corporation's mortgage commitments and mortgage transactions include activity under mortgage securities swap programs, while the
corresponding data for FNMA exclude swap activity.

Real Estate
1.54

A37

MORTGAGE DEBT OUTSTANDING 1
Millions of dollars, end of period
1991
Type of holder and property

1 All holders
2
3
4
5

By type of property
One- to four-family residences
Multifamily residences
Commercial
Farm

By type of holder
6 Major financial institutions
7 Commercial banks
8
One- to four-family
9
Multifamily
10
Commercial
11
Farm
12 Savings institutions
13
One- to four-family
14
Multifamily
15
Commercial
16
Farm
17 Life insurance companies
18
One- to four-family
Multifamily
19
20
Commercial
21
Farm
22

Finance companies4

1988

1989

1992

1990
Q2

Q4'

Ql'

Q2P

3,275,697r

3,561,685r

3,807,306r

3,898,924'

3,912,518'

3,927,396

3,971,687

3,999,102

2,203,973r
292,59C
693,888r
85,247

2,432,222r
304,612r
740,826r
84,025

2,649,436r
310,6191
763,281r
83,%9r

2,726,425r
315,404r
773,315r
83,779r

2,758,976'
308,047'
762,33C
83,165'

2,781,078
308,844
754,300
83,173

2,833,365
308,510
746,902
82,910

2,873,755
301,007
740,760
83,579

1,831,472
674,003
334,367
33,912
290,254
15,470
924,606
671,722
110,775
141,433
676
232,863
11,164
24,560
187,549
9,590

1,931,537
767,069
389,632
38,876
321,906
16,656
910,254
669,220
106,014
134,370
650
254,214
12,231
26,907
205,472
9,604

1,914,315
844,826
455,931
37,015
334,648
17,231
801,628
600,154
91,806
109,168
500
267,861
13,005
28,979
215,121
10,756

l,898,492r
871,416
476,363
37,564
339,450
18,039
755,403r
570,015'
86,483r
98,457r
448r
271,674
11,743
30,006
219,204
10,721

1,860,710'
870,937'
478,851
36,398
337,365
18,323
719,679'
547,799'
81,883'
89,595'
402
270,094
11,720
29,962
218,179
10,233

1,846,910
876,284
486,572
37,424
333,852
18,436
705,367
538,358
79,881
86,741
388
265,258
11,547
29,562
214,105
10,044

1,825,983
880,377
492,910
37,710
330,837
18,919
682,338
524,536
77,166
80,278
358
263,269
11,214
29,693
212,865
9,497

1,807,045
884,598
4%,518
38,314
330,229
19,538
660,547
509,397
74,837
75,%9
345
261,900
11,087
29,745
211,913
9,155

37,846

45,476

48,777

48,972

50,658

51,567

50,573

55,933

200,570
26
26
0
42,018
18,347
8,513
5,343
9,815
5,973
2,672
3,301
103,013
95,833
7,180
32,115
1,890
30,225
17,425
15,077
2,348

209,498
23
23
0
41,176
18,422
9,054
4,443
9,257
6,087
2,875
3,212
110,721
102,295
8,426
29,640
1,210
28,430
21,851
18,248
3,603

250,761
20
20
0
41,439
18,527
9,640
4,690
8,582
8,801
3,593
5,208
116,628
106,081
10,547
29,416
1,838
27,577
21,857
19,185
2,672

276,797'
2C
2C
0
41,430
18,521
9,898
4,750
8,261
10,210
3,729
6,480
122,806
111,560
11,246
29,152
2,041
27,111
23,649
21,120
2,529

282,115'
2C
2C
0
41,566
18,598
9,990
4,829
8,149
10,057'
3,649'
6,408'
125,451
113,6%
11,755
29,053
2,124
26,929
23,906
21,489
2,417

282,856
19
19
0
41,713
18,4%
10,141
4,905
8,171
10,733
4,036
6,697
128,983
117,087
11,8%
28,777
1,693
27,084
26,809
24,125
2,684

2%,664
19
19
0
41,791
18,488
10,270
4,%1
8,072
11,332
4,254
7,078
136,506
124,137
12,369
28,776
1,693
27,083
28,895
26,182
2,713

297,618
23
23
0
41,628
17,718
10,356
4,998
8,557
11,798
4,124
7,674
142,148
129,392
12,756
28,775
1,693
27,082
28,621
26,001
2,620

44 Mortgage pools or trusts 6
45 Government National Mortgage Association
46
One- to four-family
47
Multifamily
48
Federal Home Loan Mortgage Corporation
49
One- to four-family
50
Multifamily
51
Federal National Mortgage Association
52
One- to four-family
53
Multifamily
54 Farmers Home Administration
55
One- to four-family
Multifamily
56
57
Commercial
58
Farm

811,847
340,527
331,257
9,270
226,406
219,988
6,418
178,250
172,331
5,919
104
26
0
38
40

946,766
368,367
358,142
10,225
272,870
266,060
6,810
228,232
219,577
8,655
80
21
0
26
33

1,110,555
403,613
391,505
12,108
316,359
308,369
7,990
299,833
291,194
8,639
66
17
0
24
26

1,188,626'
416,082'
403,679'
12,403
341,132
332,624
8,509
331,089
322,444
8,645
55
13
0
21
21

1,229,836'
422,500'
412,715'
9,785'
348,843
341,183
7,660
351,917
343,430
8,487
52
12
0
20
20

1,262,685
425,295
415,767
9,528
359,163
351,906
7,257
371,984
362,667
9,317
47
11
0
19
17

1,302,217
421,977
412,574
9,404
367,878
360,887
6,991
389,853
380,617
9,236
43
10
0
18
16

1,339,172
422,922
413,828
9,094
382,797
376,177
6,620
413,226
403,940
9,286
43
9
0
18
15

59 Individuals and others 7
60 One- to four-family
61 Multifamily
62 Commercial
63 Farm

431,808rr
262,713
80,394r
69,270r
19,431

473,884r
297,050'
82,83C
74, e t ^
19,395

531,674r
333,532r
87,95c
90,894r
19,298r

535,009'
333,256'
87,002'
95,573'
19,178'

539,858'
336,711'
87,351'
%,687'
19,109'

534,945
330,062
87,440
98,409
19,034

546,823
340,561
86,975
100,321
18,966

555,267
348,631
86,390
101,358
18,887

23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

Federal and related agencies
Government National Mortgage Association
One- to four-family
Multifamily
Farmers Home Administration
One- to four-family
Multifamily
Commercial
Farm
Federal Housing and Veterans' Administrations
One- to four-family
Multifamily
Federal National Mortgage Association
One- to four-family
Multifamily
Federal Land Banks
One- to four-family
Farm
Federal Home Loan Mortgage Corporation
One- to four-family
Multifamily

1. Based on data from various institutional and governmental sources; figures
for some quarters estimated in part by the Federal Reserve. Multifamily debt
refers to loans on structures of five or more units.
2. Includes loans held by nondeposit trust companies but not loans held by
bank trust departments.
3. Includes savings banks and savings and loan associations. Beginning 1987:1,
data reported by institutions insured by the Federal Savings and Loan Insurance
Corporation include loans in process and other contra-assets (credit balance
accounts that must be subtracted from the corresponding gross asset categories to
yield net asset levels).

4. Assumed to be entirely loans on one- to four-family residences.
5. Securities guaranteed by the Farmers Home Administration (FmHA) sold to
the Federal Financing Bank were reallocated from FmHA mortgage pools to
FmHA mortgage holdings in 1986:4 because of accounting changes by the FmHA.
6. Outstanding principal balances of mortgage-backed securities insured or
guaranteed by the agency indicated. Includes private pools, which are not shown
as a separate line item.
7. Other holders include mortgage companies, real estate investment trusts,
state and local credit agencies, state and local retirement funds, noninsured
pension funds, credit unions, and other U.S. agencies.

A38
1.55

DomesticNonfinancialStatistics • December 1992
CONSUMER INSTALLMENT CREDIT Total Outstanding and Net Change 1
Millions of dollars, amounts outstanding, end of period
1992
Holder and type of credit

1988

1989

1990
Mar.

Apr.

May

June

Jul/

Aug.

Seasonally adjusted
1 Total

662,553

716,825

735,338

727,404

723,821

722,928

722,919'

721,820

720,861

2 Automobile
3 Revolving
4 Other

285,364
174,269
202,921

292,002
199,308
225,515

284,993
222,950
227,395

262,125
245,259
220,020

260,376
245,905
217,541

259,834
246,220
216,874

257,339"
247,418r
218,162'

257.743
247,332
216.744

257,706
247,909
215,246

Not seasonally adjusted
5 Total

673,320

728,877

748,524

721,091

718,676

718,420

719,845'

718,599

722,189

324,792
144,677
88,340
48,438
63,399
3,674
n.a.

342,770
138,858
93,114
44,154
57,253
3,935
48,793

347,087
133,863
93,057
44,822
46,969
4,822
77,904

327,697
118,353
91,164
39,454
37,142
3,988
103,293

326,205
118,364
91,339
39,553
36,499
4,094
102,622

324,791
116,138
91,605
37,824
36,224
4,193
107,645

324,171
116,690
92,340"
37,438
35,782r
4,360
109,064

323,899
117,002
91,778
37,219
35,552
4,506
108,643

323,866
117,491
91,500
38,791
35,029
4,542
110,970

By major type of credit3
13 Automobile
14 Commercial banks
15 Finance companies
16 Pools of securitized assets 2

285,421
123,392
98.338

292,060
126,288
84,126
18,185

285,050
124,913
75,045
24,428

259,530
110,047
60,655
29,942

258,449
109,056
61,717
28,679

258,665
108,610
59,399
31,406

257,442*
106,645
60,056
31,024

258,104
107,722
60,400
30,454

259,897
107,978
60,670
31,833

17 Revolving
18 Commercial banks
19 Retailers
20 Gasoline companies
21 Pools of securitized assets 2

184,045
123,020
43,833
3,674
n.a.

210,310
130,811
39,583
3,935
23,477

235,056
133,385
40,003
4,822
44,335

242,267
128,550
34,892
3,988
60,953

242,708
128,506
34,989
4,094
61,190

243,315
128,013
33,245
4,193
63,801

245,092*
127,925
32,844
4,360
65,784

244,661
127,476
32,617
4,506
65,791

246,917
126,922
34,167
4,542
66,985

22 Other
23 Commercial banks
24 Finance companies
25 Retailers
26 Pools of securitized assets 2

203,854
78,380
46.339
4,605

226,507
85,671
54,732
4,571
7,131

228,418
88,789
58,818
4,819
9,141

219,294
89,100
57,698
4,562
12,398

217,519
88,643
56,647
4,564
12,753

216,440
88,168
56,739
4,579
12,438

217,311'
89,601
56,634
4,594
12,256

215,834
88,701
56,602
4,602
12,398

215,375
88,966
56,821
4,624
12,152

6
7
8
9
10
11
12

By major holder
Commercial banks
Finance companies
Credit unions
Retailers
Savings institutions
Gasoline companies
Pools of securitized assets 2 ..

1. The Board's series on amounts of credit covers most short- and intermediate-term credit extended to individuals that is scheduled to be repaid (or has the
option of repayment) in two or more installments.
Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.

1.56

2. Outstanding balances of pools upon which securities have been issued; these
balances are no longer carried on the balance sheets of the loan originator.
3. Totals include estimates for certain holders for which only consumer credit
totals are available.

TERMS OF CONSUMER INSTALLMENT CREDIT 1
Percent per year except as noted
1992
Item

1989

1990

1991
Feb.

Mar.

Apr.

May

June

July

Aug.

INTEREST RATES

Commercial bankS2
48-month new c a r
24-month personal
120-month mobile home
Credit card

12.07
15.44
14.11
18.02

11.78
15.46
14.02
18.17

11.14
15.18
13.70
18.23

9.89
14.39
12.93
18.09

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

9.52
14.28
12.82
17.97

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

9.15
13.94
12.57
17.66

Auto finance companies
5 New car
6 Used car

12.62
16.18

12.54
15.99

12.41
15.60

10.19
14.00

10.92
14.19

10.84
14.14

10.67
14.01

10.24
13.89

9.94
13.67

8.88
13.49

54.2
46.6

54.6
46.0

55.1
47.2

53.8
48.0

54.3
48.0

54.5
47.8

54.7
47.9

54.4
48.0

53.6
47.9

91
97

87
95

88
%

89
97

90
97

12,001
7,954

12,071
8,289

12,494
8,884

13,340
8,912

13,137
8,908

13,208
8,905

13,373
9,247

13,369
9,201

13,570
9,293

13,745
9,238

1
2
3
4

OTHER TERMS 4

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. Data in this table also appear in the Board's G.19 (421) monthly statistical
release. For ordering address, see inside front cover.
the second month of each quarter.

2. Data are available for only

3. Before 1983 the maturity for new car loans was 36 months, and for mobile
home loans was 84 months.
4. At auto finance companies.

Flow of Funds
1.57

A39

F U N D S RAISED IN U.S. CREDIT MARKETS 1
Billions of dollars; quarterly data at seasonally adjusted annual rates
1990
Q4

1992

1991

Nonfinancial sectors

1 Total net borrowing by domestic nonfinancial sectors ..

721.2

775.8

740.8

665.0

452.5

503.9

455.4

544.4

404.5

405.7

648.2

534.9

By sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages

143.9
142.4
1.5

155.1
137.7
17.4

146.4
144.7
1.6

246.9
238.7
8.2

278.2
292.0
-13.8

270.8
271.8
-1.0

227.4
251.4
-24.0

276.7
282.9
-6.2

288.4
317.2
-28.8

320.4
316.6
3.8

368.9
380.1
-11.2

351.9
351.5
.4

5 Private

577.3

620.7

594.4

418.2

174.3

233.0

228.0

267.7

116.1

85.3

279.3

183.0

6
7
8
9
10
11
12
13
14
15
16
17
18

By instrument
Debt capital instruments
Tax-exempt obligations
Corporate bonds
Mortgages
Home mortgages
Multifamily residential
Commercial
Farm
Other debt instruments
Consumer credit
Bank loans n.e.c
Open market paper
Other

487.2
83.5
78.8
325.0
235.3
24.4
71.6
-6.4
90.1
32.9
9.9
1.6
45.7

474.1
53.7
103.1
317.3
241.8
16.7
60.8
-2.1
146.6
50.1
41.0
11.9
43.6

441.8
65.0
73.8
303.0
245.3
16.4
42.7
-1.5
152.6
41.7
40.2
21.4
49.3

342.3
51.2
47.1
244.0
219.4
3.7
21.0
-.1
75.8
17.5
4.4
9.7
44.2

254.5
45.8
78.6
130.0
142.2
-2.0
-9.4
-.8
-80.2
-12.5
-33.4
-18.4
-15.8

277.9
40.6
65.2
172.1
162.3
3.9
7.2
-1.3
-44.9
-6.6
-8.4
-34.1
4.3

296.0
35.6
76.7
183.7
153.0
6.2
24.5
-.1
-68.0
-10.4
-15.0
-14.3
-28.3

331.1
48.5
96.5
186.0
158.1
12.9
15.6
-.7
-63.3
-7.8
-34.5
-15.9
-5.2

180.8
53.5
81.7
45.6
122.4
-29.7
-44.5
-2.5
-64.8
-24.0
-18.2
-36.3
13.7

210.0
45.5
59.7
104.8
135.1
2.7
-33.1
.0
-124.7
-8.0
-66.1
-7.0
-43.6

293.6
47.0
76.1
170.5
203.4
-1.6
-30.2
-1.1
-14.3
3.1
-26.9
12.6
-3.2

223.9
68.0
78.1
77.7
137.0
-33.5
-28.5
2.7
-40.9
-13.5
-27.0
-3.4
3.1

19
20
21
22
23
24

By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate

83.0
296.4
197.8
-10.6
65.3
143.1

48.9
318.6
253.1
-7.5
61.8
198.8

63.2
305.6
225.6
1.6
50.4
173.6

48.3
254.2
115.6
2.5
26.7
86.4

38.5
158.0
-22.3
.9
-23.6
.4

34.7
159.8
38.6
-.3
7.9
31.0

36.0
160.8
31.1
3.9
13.2
14.0

38.6
188.8
40.3
2.1
9.8
28.4

37.6
136.1
-57.6
-.3
-65.9
8.6

41.9
146.3
-103.0
-2.2
-51.5
-49.3

41.1
208.8
29.4
-1.6
-22.7
53.7

58.4
155.4
-30.8
7.0
-67.6
29.8

25 Foreign net borrowing in United States
26 Bonds
27 Bank loans n.e.c
28 Open market paper
29 U.S. government loans

6.2
7.4
-3.6
3.8
-1.4

6.4
6.9
-1.8
8.7
-7.5

10.2
4.9
-.1
13.1
-7.6

23.9
21.4
-2.9
12.3
-6.9

14.1
14.9
3.1
6.4
-10.2

24.2
29.6
-5.2
15.6
-15.8

63.1
11.1
8.1
46.7
-2.8

-63.2
10.6
-3.5
-51.9
-18.3

15.6
15.5
1.4
16.0
-17.2

41.0
22.3
6.5
14.9
-2.7

9.5
4.7
1.4
-7.8
11.2

64.5
12.6
21.2
27.7
2.9

30 Total domestic plus foreign

727.4

782.2

750.9

688.9

466.6

528.1

518.5

481.3

420.1

446.7

657.7

599.3

Financial sectors
31 Total net borrowing by financial sectors

259.0

211.4

220.1

187.1

139.2

296.8

108.9

103.1

144.3

200.5

108.7

217.5

By instrument
U.S. government-related
Sponsored-credit-agency securities
Mortgage pool securities
Loans from U.S. government

171.8
30.2
142.3
-.8

119.8
44.9
74.9
.0

151.0
25.2
125.8
.0

167.4
17.1
150.3
-.1

147.7
9.2
138.6
.0

188.3
37.1
151.6
-.5

154.6
13.1
141.5
.0

127.4
-29.7
157.1
.0

156.3
20.6
135.8
.0

152.7
32.6
120.1
-.1

126.8
11.5
115.3
.0

199.5
48.3
151.2
.0

36 Private
37 Corporate bonds
38 Mortgages
39 Bank loans n.e.c
40 Open market paper
41 Loans from Federal Home Loan Banks

87.2
39.1
.4
-3.6
26.9
24.4

91.7
16.2
.3
.6
54.8
19.7

69.1
46.8
.0
1.9
31.3
-11.0

19.7
34.4
.3
1.2
8.6
-24.7

-8.6
57.7
.6
3.2
-32.0
-38.0

108.6
98.6
.6
1.4
24.7
-16.7

-45.7
41.4
.2
1.0
-52.5
-35.8

-24.3
72.6
-.2
-2.9
-46.0
-47.7

-12.0
29.3
.9
10.2
-16.7
-35.7

47.8
87.5
1.5
4.5
-12.7
-33.0

-18.0
-24.2
.9
7.2
7.6
-9.5

18.1
25.0
.2
4.9
-17.6
5.7

By borrowing sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private
45 Commercial banks
46 Bank affiliates
47 Savings and loan associations
48 Mutual savings banks
49 Finance companies
50 Real estate investment trusts (REITs)
51 Securitized credit obligation (SCO) issuers

29.5
142.3
87.2
6.2
14.3
19.6
8.1
-.5
.4
39.1

44.9
74.9
91.7
-3.0
5.2
19.9
1.9
31.5
3.6
32.5

25.2
125.8
69.1
-1.4
6.2
-14.1
-1.4
59.7
-1.9
22.0

17.0
150.3
19.7
-1.1
-27.7
-29.9
-.5
35.6
-1.9
45.2

9.1
138.6
-8.6
-13.3
-2.5
-39.5
-3.5
14.5
.0
35.6

36.7
151.6
108.6
14.7
-30.2
-20.7
1.4
81.9
.3
61.3

13.1
141.5
-45.7
-18.4
-9.3
-42.9
2.0
-10.3
.1
33.2

-29.7
157.1
-24.3
-11.7
-3.5
-48.7
-1.7
3.4
-.8
38.7

20.6
135.8
-12.0
-9.2
-6.8
-41.1
-5.5
12.2
.0
38.5

32.5
120.1
47.8
-14.1
9.6
-25.1
-8.7
52.9
.8
32.3

11.5
115.3
-18.0
7.2
2.7
-20.3
4.3
-39.0
4.6
22.4

48.3
151.2
18.1
-.6
-9.2
4.2
-1.2
-20.9
2.4
43.3

32
33
34
35

A40

DomesticNonfinancialStatistics • December 1992

1.57—Continued
1990
Transaction category or sector

1987

1988

1989

1990

1992

1991

1991
Q4

All sectors
52 Total net borrowing, all sectors

986.4

993.6

971.0

876.0

605.8

824.9

627.4

584.4

564.4

647.1

766.4

816.9

53
54
55
56
57
58
59
60

316.4
83.5
125.2
325.4
32.9
2.7
32.3
68.0

274.9
53.7
126.3
317.5
50.1
39.9
75.4
55.8

297.3
65.0
125.5
303.0
41.7
41.9
65.9
30.6

414.4
51.2
102.9
244.3
17.5
2.8
30.7
12.4

426.0
45.8
151.2
130.6
-12.5
-27.1
-44.0
-64.2

459.6
40.6
193.4
172.8
-6.6
-12.2
6.1
-28.8

382.0
35.6
129.2
183.9
-10.4
-5.9
-20.2
-66.9

404.1
48.5
179.7
185.8
-7.8
-40.9
-113.8
-71.2

444.8
53.5
126.4
46.5
-24.0
-6.7
-37.0
-39.1

473.2
45.5
169.5
106.2
-8.0
-55.1
-4.9
-79.3

495.7
47.0
56.6
171.4
3.1
-18.2
12.4
-1.5

551.4
68.0
115.7
77.9
-13.5
-.9
6.7
11.6

U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans

External corporate equity funds raised in United States
61 Total net share issues
62 Mutual funds
63 All other
64
Nonfinancial corporations
65
Financial corporations
66
Foreign shares purchased in United States

7.1

-118.4

-65.7

22.1

198.8

28.2

112.4

178.9

235.2

268.9

271.8

283.6

70.2
-63.2
-75.5
14.5
-2.1

6.1
-124.5
-129.5
4.1
.9

38.5
-104.2
-124.2
2.7
17.2

67.9
-45.8
-63.0
9.8
7.4

150.5
48.3
18.3
-.1
30.2

85.2
-57.0
-61.0
1.2
2.8

98.1
14.3
-6.0
-6.7
27.0

125.6
53.3
12.0
4.7
36.6

182.5
52.7
19.0
-.4
34.1

195.9
72.9
48.0
2.0
22.9

189.8
82.0
46.0
6.0
30.0

223.3
60.3
36.0
2.9
21.4

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.2 through F.5. For ordering address, see inside front cover.

Flow of Funds
1.58

A41

SUMMARY OF FINANCIAL TRANSACTIONS 1
Billions of dollars, except as noted; quarterly data at seasonally adjusted annual rates
1990
Transaction category or sector

1987

1988

1989

1990

1992

1991

1991
Q4

824.9

627.4

584.4

564.4

647.1

N E T LENDING IN CREDIT MARKETS1

1 Total net lending in credit markets
2 Private domestic nonfinancial sectors
Households
4 Nonfarm noncorporate business
5 Nonfinancial corporate business
6 State and local governments
7 U.S. government
8 Foreign
9 Financial sectors
10 Sponsored credit agencies
11 Mortgage pools
12 Monetary authority
13 Commercial banking
14
U.S. commercial banks
15
Foreign banking offices
Bank affiliates
16
17
Banks in U.S. possession
18
Private nonbank finance
19
Thrift institutions
20
Savings and loan associations
21
Mutual savings banks
22
Credit unions
Insurance
23
24
Life insurance companies
25
Other insurance companies
Private pension funds
26
27
State and local government retirement funds . . .
28
Finance n.e.c
29
Finance companies
Mutual funds
30
31
Money market funds
Real estate investment trusts (REITs)
32
33
Brokers and dealers
34
Securitized credit obligation (SCOs) issuers . . .

986.4

993.6

237.4
180.7
-5.6
18.5
43.9
-7.9
61.8
695.0
27.0
142.3
24.7
135.3
99.1
34.2
2.0
.1
365.8
136.9
93.5
25.6
17.8
153.5
91.7
39.5
-4.7
27.0
75.4
38.2
25.8
1.8
1.0
-30.6
39.1

226.2
198.9
3.1
5.7
18.6
-10.6
96.3
681.8
37.1
74.9
10.5
157.1
127.1
29.4
-.1
.7
402.2
119.0
87.4
15.3
16.3
186.2
103.8
29.2
18.1
35.1
96.9
49.2
11.9
10.7
.9
-8.2
32.5

766.4

816.9

209.6
203.8
21.4
54.8
190.8 -135.2
49.0
179.5
172.3 -14.1
7.9
174.4 -177.8
12.0
-1.4
-.8
-1.8
-1.9
-1.6
-2.0
-1.6
12.9
6.6
21.1
-6.8
32.2
13.3
29.0
17.9
26.2
16.3
35.5
45.4 -10.6
12.1
-3.1
33.7
-1.1
35.2
-2.1
10.0
24.8
74.1
58.4
44.7
85.1
19.1
51.4
37.3
690.4
580.2
529.7
524.1
317.4
686.0
664.3
16.4
-.5
14.2
-8.4
27.4 -22.3
33.7
125.8
150.3
151.6
141.5
157.1
138.6
135.8
-7.3
8.1
31.1 -11.6
58.1
-4.0
48.1
176.8
125.4
84.0
69.5
114.4
34.7
82.4
145.7
95.2
38.9
30.7
77.0
6.4
26.5
26.7
28.4
48.5
37.9
42.2
33.7
56.7
2.8
-2.8
-1.5
-1.7
-4.7
-2.6
2.4
1.6
4.5
-1.9
2.7
-.1
-2.8
-3.3
395.7
279.9
182.7
364.4
261.8
484.8
152.0
-91.0 -151.9 -144.9 -178.5 -188.3 -164.8 -176.8
-93.9 -143.9 -140.9 -177.9 -179.8 -144.0 -156.3
- 4 . 8 -16.5 -15.5
- 9 . 8 -11.7 -31.1 -30.8
7.7
8.5
11.5
9.2
3.3
10.2
10.3
188.5
207.7
215.4
197.2
236.2
219.5
254.5
93.1
94.4
83.2
73.4
112.9
132.8
73.8
29.7
26.5
34.7
28.8
32.7
37.0
36.8
36.2
16.6
60.6
55.6
42.1
.7
110.5
48.7
51.0
37.0
39.5
48.5
33.4
49.0
278.9
243.3
466.2
134.7
191.3
97.4
286.7
69.3
41.6 -13.1
26.0 -18.5 -14.5
-5.2
23.8
41.4
56.2
90.3
44.0
75.3
117.1
67.1
80.9
30.1
83.3
134.2 -68.9
1.1
.5
-.7
-.7
-2.1
-1.2
-.1
-.6
96.3
34.9
49.0
241.5 -56.9
66.8
135.8
22.0
45.2
35.6
61.3
33.2
38.7
38.5

-18.8
86.2
-65.1
93.6
-2.1
-2.1
30.1
11.1
18.2 -16.5
-17.9
13.7
89.1
71.0
612.9
577.4
17.8
93.0
120.1
115.3
33.2
22.3
104.3
97.9
90.7
45.6
.9
61.3
6.4
-1.1
-1.5
.0
348.3
238.0
-49.7 -102.1
-83.3 -137.9
11.5
7.6
22.2
28.2
151.4
142.4
13.2
80.6
32.1
33.1
89.2 -18.9
17.0
47.6
246.5
197.7
-14.1
.8
124.8
105.3
53.9
61.8
-.9
-.7
50.5
8.1
32.3
22.4

65.2
62.0
-2.5
-1.5
7.2
-12.1
144.2
619.6
47.9
151.2
9.8
53.2
.1
53.8
-1.7
1.0
357.6
-51.4
-78.4
-3.7
30.6
194.0
93.3
22.2
41.3
37.2
215.0
-23.0
156.1
-20.9
-.5
60.0
43.3

986.4

993.6

971.0

876.0

605.8

824.9

627.4

584.4

647.1

816.9

-9.7
4.0
24.8
.5
.5
4.1
26.0
25.3
28.8
104.5
193.6
221.4
34.8
2.9 -16.5
141.1
259.9
290.0
3.9
43.2
6.1
76.5
120.8
96.7
50.6
53.6
17.6
24.0
21.9
90.1
-10.9
23.5
78.3
-3.1
-3.1
1.1
70.2
6.1
38.5
-63.2 -124.5 -104.2
-27.4
3.0
15.6
57.7
89.2
60.0
5.4
5.3
2.0
-60.9 -31.2 -32.5
241.2
222.3
269.9

2.0
2.5
25.7
186.8
34.2
96.8
44.2
59.9
-66.7
70.3
-23.5
12.6
67.9
-45.8
3.5
44.1
-.5
-39.3
120.5

-5.9
.0
22.0
268.1
-2.1
58.0
75.8
16.7
-60.9
41.3
-16.4
1.5
150.5
48.3
51.4
11.2
-9.1
-1.3
157.0

4.0
1.5
8.2
-1.2
23.7
19.9
253.0
284.1
-18.5
4.5
233.2
244.8
59.5
76.2
69.1
97.3
-69.0
15.1
57.6
193.0
97.9 -160.7
18.2
24.0
85.2
98.1
-57.0
14.3
36.5 -17.5
-13.1 -36.7
- 3 . 7 -34.8
-22.2 -21.3
-34.7
273.7

-4.8
.4
29.4
193.9
-81.6
-75.4
7.9
-1.1
-63.0
-58.7
43.1
-3.6
125.6
53.3
20.1
41.8
-11.5
-34.1
84.9

971.0

876.0

605.8

RELATION OF LIABILITIES
TO FINANCIAL ASSETS

35 Net flows through credit markets
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54

Other financial sources
Official foreign exchange
Treasury currency and special drawing rights
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small-time and savings
Large-time
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Corporate equities
Security credit
Trade debt
Taxes payable
Noncorporate proprietors' equity
Miscellaneous

55 Total financial sources

564.4

-15.5
-5.0
.4
.5
19.4
19.2
339.6
254.7
97.9 -29.0
27.3
35.3
114.4
104.5
-42.4
13.0
-78.1 -117.4
4.0
26.8
36.3
16.0
3.0 -17.5
182.5
195.9
52.7
72.9
82.4
120.7
48.2
-8.5
13.0
-3.3
44.9
5.1
41.3
228.3

766.4

3.5
-6.4
.1
.3
21.2
24.6
112.7
225.5
45.6 -12.6
152.0 -12.0
89.4
97.6
-13.7 -77.4
-82.0 -106.3
106.1 -38.3
15.4
96.5
36.8
16.0
189.8
223.3
82.0
60.3
-70.0 -47.7
70.1
58.8
-2.9
1.4
-20.4
30.4
82.8
204.2

1,506.7

1,650.2

1,772.7

1,374.3

1,354.0

1,319.6

1,456.9

926.3

1,498.6

1,534.1

1,432.9

1,566.9

Floats not included in assets (—)
56 U.S. government checking deposits
57 Other checkable deposits
58 Trade credit

.0
.4
-8.5

1.6
.8
-.9

8.4
-3.2
.6

3.3
2.5
21.5

-13.1
2.0
19.4

-8.0
7.7
54.6

-18.8
13.3
13.4

15.6
3.0
41.2

23.9
-2.1
27.8

-73.1
-6.1
-4.8

4.4
-13.3
27.7

-10.8
-17.5
1.2

Liabilities not identified as assets
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous

-.1
-4.0
-21.2
6.7
10.0

-.1
-3.0
-29.8
6.3
4.4

-.2
-4.4
23.9
2.3
-95.6

.2
1.6
-34.8
6.5
-13.8

1,523.4

1,670.7

1,841.0

1,387.5

59
60
61
62
63

64 Totals identified to sectors as assets

(-)

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables F.6 and F.7. For ordering address, see inside front cover.

-.6
1.5
-1.9
26.2 -14.9
55.3
9.7
45.7 -115.4
7.4
14.9 -14.4
-26.0 -112.2 -111.4
1,329.1

1,330.2

1,636.7

-.3
-.2
20.8
28.4
76.2
36.9
2.0
23.4
8.4 -195.4
759.4

1,556.0

-.1
-.4
-.1
.2
13.4 -13.8
41.1 -23.5
78.2
18.5 -16.7
16.3
194.3 -148.9 -128.3
1,364.1

2. Excludes corporate equities and mutual fund shares,

1,590.2

1,641.7

A42

Domestic Financial Statistics • December 1992

1.59

SUMMARY OF CREDIT MARKET DEBT OUTSTANDING 1
Billions of dollars, end of period
1990

1991

1992

1991
Q4

Nonfinancial sectors
1 Total credit market debt owed by
domestic nonfinancial sectors

9,316.3

10,087.1

10,760.8

11,210.7

10,760.8

10,832.3

10,960.5

11,082.5

11,210.7

11,331.7

11,459.8

By lending sector and instrument
2 U.S. government
3 Treasury securities
4 Agency issues and mortgages

2,104.9
2,082.3
22.6

2,251.2
2,227.0
24.2

2,498.1
2,465.8
32.4

2,776.4
2,757.8
18.6

2,498.1
2,465.8
32.4

2,548.8
2,522.4
26.4

2,591.9
2,567.1
24.8

2,687.2
2,669.6
17.6

2,776.4
2,757.8
18.6

2,859.7
2,844.0
15.8

2,923.3
2,907.4
15.9

5 Private

7,211.4

7,835.9

8,262.6

8,434.3

8,262.6

8,283.5

8,368.6

8,395.3

8,434.3

8,472.0

8,536.5

6
7
8
9
10
11
12
13
14
IS
lb
17
18

5,119.0
939.4
852.2
3,327.3
2,257.5
286.7
696.4
86.8
2,092.5
742.1
710.6
85.7
554.1

5,577.9
1,004.4
926.1
3,647.5
2,515.1
304.4
742.6
85.3
2,258.0
791.8
760.7
107.1
598.4

5,936.0
1,055.6
973.2
3,907.3
2,760.0
305.8
757.6
84.0
2,326.7
809.3
758.0
116.9
642.6

6,190.4
1,101.4
1,051.8
4,037.3
2,902.1
303.8
748.2
83.2
2,243.9
796.7
724.6
98.5
624.1

5,936.0
1,055.6
973.2
3,907.3
2,760.0
305.8
757.6
84.0
2,326.7
809.3
758.0
116.9
642.6

5,997.7
1,061.5
992.3
3,943.8
2,788.9
307.3
763.7
83.9
2,285.8
785.3
748.3
120.8
631.5

6,087.8
1,072.5
1,016.5
3,998.9
2,836.9
310.5
767.6
83.8
2,280.8
786.7
742.0
119.4
632.6

6,138.4
1,089.3
1,036.9
4,012.2
2,869.5
303.1
756.5
83.1
2,256.9
785.9
734.1
107.0
629.8

6,190.4
1,101.4
1,051.8
4,037.3
2,902.1
303.8
748.2
83.2
2,243.9
796.7
724.6
98.5
624.1

6,252.0
1,110.3
1,070.8
4,070.8
2,943.9
303.4
740.7
82.9
2,220.0
775.7
712.5
110.3
621.6

6,315.8
1,126.1
1,090.4
4,099.4
2,987.3
295.0
733.5
83.6
2,220.6
775.5
708.1
111.7
625.3

19
20
21
22
23
24

By borrowing sector
State and local government
Household
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate

752.5
3,177.3
3,281.6
137.6
1,127.1
2,016.9

815.7
3,508.2
3,512.0
139.2
1,177.5
2,195.3

864.0
3,780.6
3,618.0
140.5
1,204.2
2,273.4

902.5
3,938.6
3,593.2
138.8
1,180.6
2,273.8

864.0
3,780.6
3,618.0
140.5
1,204.2
2,273.4

870.1
3,788.3
3,625.2
136.8
1,207.1
2,281.2

878.5
3,848.3
3,641.8
139.6
1,210.8
2,291.4

891.4
3,888.7
3,615.3
140.4
1,191.0
2,283.9

902.5
3,938.6
3,593.2
138.8
1,180.6
2,273.8

910.0
3,958.8
3,603.2
136.3
1,174.4
2,292.5

923.4
4,010.8
3,602.3
140.2
1,159.0
2,303.1

244.6

254.8

278.6

292.7

278.6

291.3

277.6

282.2

292.7

282.3

300.6

83.1
21.5
49.9
90.1

88.0
21.4
63.0
82.4

109.4
18.5
75.3
75.4

124.2
21.6
81.8
65.2

109.4
18.5
75.3
75.4

112.1
20.5
87.0
71.6

114.8
19.7
74.0
69.1

118.6
20.0
78.0
65.6

124.2
21.6
81.8
65.2

125.4
22.0
70.5
64.4

128.5
27.3
77.5
67.3

9,560.9

10,341.9

11,039.4

11,503.4

11,039.4

11,123.6

11,238.2

11,364.7

11,503.4

11,614.0

11,760.4

25 Foreign credit market debt held in
United States
26
27
28
29

Bonds
Bank loans n.e.c
Open market paper
U.S. government loans

30 Total credit market debt owed by nonfinancial
sectors, domestic and foreign

Financial sectors
31 Total credit market debt owed by
financial sectors
32
33
34
35
36
37
38
39
40
41

By instrument
U.S. government-related
Sponsored credit-agency securities
Mortgage pool securities
Loans from U.S. government
Private
Corporate bonds
Mortgages
Bank loans n.e.c
Open market paper
Loans from Federal Home Loan Banks

By borrowing sector
42 Sponsored credit agencies
43 Mortgage pools
44 Private financial sectors
45 Commercial banks
46 Bank affiliates
47 Savings and loan associations
48 Mutual savings banks
49 Finance companies
SO Real estate investment trusts (REITs)
SI Securitized credit obligation (SCO) issuers...

2,082.9

2,333.0

2,524.2

2,667.8

2,524.2

2,546.3

2,571.1

2,608.2

2,667.8

2,686.9

2,739.7

1,098.4
348.1
745.3
5.0
984.6
415.1
3.4
35.6
377.7
152.8

1,249.3
373.3
871.0
5.0
1,083.7
491.9
3.4
37.5
409.1
141.8

1,418.4
393.7
1,019.9
4.9
1,105.8
528.2
4.2
38.6
417.7
117.1

1,566.2
402.9
1,158.5
4.8
1,101.6
590.2
4.8
41.8
385.7
79.1

1,418.4
393.7
1,019.9
4.9
1,105.8
528.2
4.2
38.6
417.7
117.1

1,452.1
397.0
1,050.3
4.9
1,094.1
545.4
4.3
36.5
400.9
107.0

1,482.8
389.6
1,088.4
4.9
1,088.4
562.3
4.2
37.0
390.1
94.7

1,524.4
394.7
1,124.8
4.9
1,083.9
569.5
4.4
39.0
387.0
83.9

1,566.2
402.9
1,158.5
4.8
1,101.6
590.2
4.8
41.8
385.7
79.1

1,592.9
405.7
1,182.4
4.8
1,093.9
578.4
5.0
41.3
392.9
76.3

1,641.6
417.8
1,219.0
4.8
1,098.1
583.3
5.1
43.7
389.2
76.9

353.1
745.3
984.6
78.8
136.2
159.3
18.6
444.6
11.4
135.7

378.3
871.0
1,083.7
77.4
142.5
145.2
17.2
504.2
10.1
187.1

398.5
1,019.9
1,105.8
76.3
114.8
115.3
16.7
539.8
10.6
232.3

407.7
1,158.5
1,101.6
63.0
112.3
75.9
13.2
557.9
11.4
268.0

398.5
1,019.9
1,105.8
76.3
114.8
115.3
16.7
539.8
10.6
232.3

401.8
1,050.3
1,094.1
68.1
114.4
104.2
16.4
539.6
10.8
240.6

394.4
1,088.4
1,088.4
65.9
113.3
91.0
16.6
540.4
10.8
250.3

399.5
1,124.8
1,083.9
64.6
110.6
79.0
15.2
543.7
259.9

407.7
1,158.5
1,101.6
63.0
112.3
75.9
13.2
557.9
11.4
268.0

410.5
1,182.4
1,093.9
60.8
115.0
71.2
13.5
547.1
12.7
273.6

422.6
1,219.0
1,098.1
61.3
112.4
70.7
13.9
541.8
13.5
284.4

11.0

All sectors
52 Total credit market debt, domestic and foreign..
53
54
SS
56
57
58
59
60

U.S. government securities
State and local obligations
Corporate and foreign bonds
Mortgages
Consumer credit
Bank loans n.e.c
Open market paper
Other loans

11,643.9

12,674.9

13,563.6

14,171.2

13,563.6

13,669.9

13,809.3

13,973.0

14,171.2

14,300.9

14,500.1

3,198.3
939.4
1,350.4
3,330.7
742.1
767.7
513.4
801.9

3,495.6
1,004.4
1,506.0
3,650.9
791.8
819.6
579.2
827.5

3,911.7
1,055.6
1,610.7
3,911.5
809.3
815.1
609.9
839.9

4,337.7
1,101.4
1,766.2
4,042.1
796.7
788.0
565.9
773.2

3,911.7
1,055.6
1,610.7
3,911.5
809.3
815.1
609.9
839.9

3,996.1
1,061.5
1,649.9
3,948.1
785.3
805.3
608.8
814.9

4,069.8
1,072.5
1,693.5
4,003.1
786.7
798.7
583.6
801.4

4,206.7
1,089.3
1,725.0
4,016.7
785.9
793.2
572.0
784.2

4,337.7
1,101.4
1,766.2
4,042.1
796.7
788.0
565.9
773.2

4,447.8
1,110.3
1,774.6
4,075.8
775.7
775.8
573.7
767.1

4,560.1
1,126.1
1,802.2
4,104.4
775.5
779.1
578.4
774.3

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.

Flow of Funds
1.60

A43

SUMMARY OF FINANCIAL ASSETS A N D LIABILITIES 1
Billions of dollars, except as noted, end of period

1988

1989

1990

1992

1991

1990
Transaction category or sector

1991
Q4

14,171.2

13,563.6

13,669.9

13,809.3

13,973.0

14,171.2

14,300.9

14,500.1

2,644.2 2,658.2
1,882.3 1,860.8
55.0
53.2
186.9
208.1
519.9
536.2
238.7
246.2
792.4
848.8
9,888.3 10,418.0
383.6
397.7
1,019.9 1,158.5
241.4
272.5
2,769.3 2,853.3
2,463.6 2,502.5
270.8
319.2
13.4
11.9
21.6
19.7
5,474.1 5,735.9
1,335.5 1,190.6
945.1
804.2
227.1
211.5
163.4
174.9
2,329.1 2,544.6
1,116.5 1,199.6
344.0
378.7
431.3
491.9
437.4
474.3
1,809.4 2,000.7
658.7
645.6
360.2
450.5
372.7
402.8
7.7
7.0
177.9
226.9
232.3
268.0

2,644.2
1,882.3
55.0
186.9
519.9
238.7
792.4
9,888.3
383.6
1,019.9
241.4
2,769.3
2,463.6
270.8
13.4
21.6
5,474.1
1,335.5
945.1
227.1
163.4
2,329.1
1,116.5
344.0
431.3
437.4
1,809.4
658.7
360.2
372.7
7.7
177.9
232.3

CREDIT MARKET DEBT OUTSTANDING 2

1 Total credit market assets
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

Private domestic nonfinancial sectors
Households
Nonfarm noncorporate business
Nonfinancial corporate business
State and local governments
U.S. government
Foreign
Financial sectors
Sponsored credit agencies
Mortgage pools
Monetary authority
Commercial banking
U.S. commercial banks
Foreign banking offices
Bank affiliates
Banks in U.S. possession
Private nonbank finance
Thrift institutions
Savings and loan associations
Mutual savings banks
Credit unions
Insurance
Life insurance companies
Other insurance companies
Private pension funds
State and local government retirement funds .
Finance n.e.c
Finance companies
Mutual funds
Money market funds
Real estate investment trusts (REITs)
Brokers and dealers
Securitized credit obligation (SCOs) issuers . .

11,643.9

12,674.9

2,185.5
1,485.1
57.2
167.4
475.8
213.2
653.2
8,592.0
367.7
745.3
240.6
2,476.3
2,231.9
215.6
13.4
15.4
4,762.1
1,572.0
1,184.2
240.6
147.2
1,932.6
920.0
287.9
358.5
366.2
1,257.5
559.2
283.4
224.7
7.8
46.7
135.7

2,440.5
1,710.1
56.4
180.3
493.7
205.1
734.2
9,295.1
367.2
871.0
233.3
2,643.9
2,368.4
242.3
16.2
17.1
5,179.7
1,484.9
1,088.9
241.1
154.9
2,140.3
1,013.1
317.5
394.7
414.9
1,554.5
617.1
307.2
291.8
8.4
142.9
187.1

11,643.9

12,674.9

13,563.6

14,171.2

13,563.6

27.1

53.6

61.3

55.4

61.3

19.8
325.5
2,755.0
46.9
4,354.7
882.8
2,169.2
596.9
338.0
325.0
42.8
478.3
118.3
838.4
79.8
2,312.0

23.8
354.3
3,210.5
32.4
4,644.6
888.6
2,265.4
615.4
428.1
403.2
43.9
566.2
133.9
903.9
81.8
2,508.3

26.3
380.0
3,303.0
64.0
4,741.4
932.8
2,325.3
548.7
498.4
379.7
56.6
602.1
137.4
938.0
81.4
2,678.8

26.3
402.0
3,882.3
63.6
4,799.4
1,008.5
2,342.0
487.9
539.6
363.4
58.0
812.4
188.9
951.6
72.2
2,791.7

13,563.6

2,634.2 2,653.8 2,648.2 2,658.2 2,642.4 2,631.3
1,875.1 1,881.7 1,875.3 1,860.8 1,859.2 1,837.2
53.9
53.4
53.2
51.9
51.3
52.9
199.9
174.6
189.9
190.1
208.1
208.6
530.6
536.2
531.3
534.2
528.8
530.0
245.5
246.2
250.1
248.4
252.9
252.0
797.1
871.1
907.2
810.0
848.8
819.3
9,993.0 10,092.7 10,253.3 10,418.0 10,537.3 10,713.3
388.5
397.7
419.9
382.7
389.5
431.0
1,050.3 1,088.4 1,124.8 1,158.5 1,182.4 1,219.0
272.5
271.8
282.6
247.3
253.7
264.7
2,780.2 2,796.6 2,817.8 2,853.3 2,860.3 2,881.3
2,470.8 2,480.0 2,488.7 2,502.5 2,513.7 2,521.5
275.6
319.2
313.4
327.0
284.4
297.5
11.9
13.6
12.3
11.3
11.6
12.8
19.7
19.7
21.6
20.9
19.9
20.0
5,526.8 5,571.3 5,656.5 5,735.9 5,803.0 5,899.4
1,287.8 1,248.4 1,205.1 1,190.6 1,164.5 1,153.3
752.4
901.3
866.3
826.1
804.2
771.1
224.1
216.4
211.5
213.4
212.5
208.7
162.3
165.7
174.9
180.0
188.4
170.2
2,392.0 2,448.8 2,511.7 2,544.6 2,584.7 2,635.5
1,148.5 1,183.7 1,201.4 1,199.6 1,224.3 1,250.0
378.7
392.5
352.2
361.4
370.7
387.0
441.8
491.9
487.2
497.5
442.0
469.6
449.5
486.2
495.5
461.7
470.1
474.3
1,847.0 1,874.1 1,939.7 2,000.7 2,053.7 2,110.5
649.4
651.7
647.4
645.6
641.0
641.6
374.6
394.4
421.4
450.5
480.3
520.4
411.4
389.9
389.5
402.8
423.1
413.5
7.4
7.4
7.0
6.8
6.7
7.2
163.6
180.4
226.9
228.9
214.3
243.9
240.6
250.3
268.0
273.6
284.4
259.9

RELATION OF LIABILITIES
TO FINANCIAL ASSETS

35 Total credit market debt
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52

Other liabilities
Official foreign exchange
Treasury currency and special drawing rights
certificates
Life insurance reserves
Pension fund reserves
Interbank claims
Deposits at financial institutions
Checkable deposits and currency
Small-time and savings
Large-time
Money market fund shares
Security repurchase agreements
Foreign deposits
Mutual fund shares
Security credit
Trade debt
Taxes payable
Miscellaneous

53 Total liabilities

13,669.9

13,809.3

13,973.0

14,171.2

14,300.9

14,500.1

56.6

53.6

52.9

26.3
380.0
3,303.0
64.0
4,741.4
932.8
2,325.3
548.7
498.4
379.7
56.6
602.1
137.4
938.0
81.4
2,678.8

26.0
385.0
3,520.6
57.8
4,776.4
905.1
2,355.3
553.1
551.7
348.6
62.6
661.6
132.5
914.1
75.1
2,700.3

26.1
392.3
3,555.8
34.0
4,765.7
933.1
2,351.5
532.6
532.8
354.0
61.7
683.7
137.5
920.2
65.8
2,707.9

26.2
397.2
3,720.8
58.4
4,769.5
948.3
2,339.7
517.1
533.1
368.9
62.4
744.2
158.1
946.3
71.8
2,743.2

55.4

52.7

54.4

26.3
402.0
3,882.3
63.6
4,799.4
1,008.5
2,342.0
487.9
539.6
363.4
58.0
812.4
188.9
951.6
72.2
2,791.7

26.3
407.3
3,889.4
63.1
4,812.9
984.8
2,344.8
468.6
571.0
376.4
67.2
859.3
195.1
950.3
73.9
2,789.2

26.4
413.4
3,962.7
58.1
4,817.9
1,033.9
2,321.6
437.3
557.2
396.7
71.2
936.7
183.3
960.3
67.2
2,817.9

22,999.5

25,188.3

26,577.2

28,217.1

26,577.2

26,975.8

27,151.8

27,661.5

28,217.1

28,420.4

28,798.6

Financial assets not included in liabilities (+)
54 Gold and special drawing rights
55 Corporate equities
56 Household equity in noncorporate business

40.0
3,141.6
2,373.1

40.3
3,819.7
2,524.9

41.3
3,506.6
2,449.4

41.6
4,630.0
2,372.6

41.3
3,506.6
2,449.4

40.7
4,047.2
2,478.4

40.7
4,104.7
2,509.5

41.1
4,338.5
2,496.0

41.6
4,630.0
2,372.6

41.3
4,502.5
2,384.5

42.0
4,565.8
2,370.1

Floats not included in assets ( - )
57 U.S. government checking deposits
58 Other checkable deposits
59 Trade credit

5.9
29.6
-164.3

6.1
26.5
-159.7

15.0
28.9
-148.0

4.7
30.9
-123.2

15.0
28.9
-148.0

5.2
26.7
-147.0

8.3
29.9
-146.7

19.8
23.6
-143.0

4.7
30.9
-123.2

.3
22.0
-119.1

-.2
20.1
-131.1

60
61
62
63
64
65

Liabilities not identified as assets ( - )
Treasury currency
Interbank claims
Security repurchase agreements
Taxes payable
Miscellaneous
Totals identified to sectors as assets

-4.1
-4.1
-4.3
-4.1
-4.6
-4.8
-4.7
-4.7
-4.8
-4.9
-4.9
-28.5
-31.0
-32.0
-15.5
-4.2
-9.9
-4.7
-4.2
-32.0
-1.8
-3.6
-12.4
11.5
-23.3
-13.7
-39.6
-23.3
-25.8
-13.7
6
.
4
-10.6
8.8
21.4
20.6
21.8
21.4
18.8
11.7
18.8
21.8
17.5
17.0
9.6
-134.6 -253.3 -249.7 -307.2 -249.7 -260.9 -242.8 -301.8 -307.2 -304.4 -321.5
28,841.1 31,956.8 32,966.0 35,659.8 32,966.0 33,956.5 34,186.7 34,941.0 35,659.8 35,746.0 36,199.2

1. Data in this table also appear in the Board's Z.l (780) quarterly statistical
release, tables L.6 through L.7. For ordering address, see inside front cover.

2. Excludes corporate equities and mutual fund shares,

A44
2.10

Domestic Nonfinancial Statistics • December 1992
NONFINANCIAL BUSINESS ACTIVITY

Selected Measures

Monthly data seasonally adjusted, 1987= 100, except as noted
1991
Measure

1989

1990

1992

1991
Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July r

Aug.

1 Industrial production

108.1

109.2

107.1

106.6

107.2

107.6

108.1

108.9

108.5

109.3

108.9

108.6

Market groupings
Products, total
Final, total
Consumer goods
Equipment
Intermediate
Materials

108.6
109.1
106.7
112.3
106.8
107.4

110.1
110.9
107.3
115.5
107.7
107.8

108.1
109.6
107.5
112.2
103.4
105.5

107.5
108.7
108.1
109.4
103.9
105.2

108.1
109.4
108.8
110.2
104.0
105.8

108.5
109.8
109.3
110.4
104.4
106.1

109.0
110.6
110.1
111.3
103.9
106.8

109.7
111.4
110.8
112.3
104.4
107.7

109.01
110.5r
109.6r
111.6r
104.4r
107.6r

109.5
111.0
110.3
111.9
104.8
108.9

109.3
110.9
110.1
112.1
104.4
108.2

109.1
110.8
110.2
111.5
104.0
107.9

108.9

109.9

107.4

108.1

108.5

109.0

109.9

109.6

110.1

109.8

109.4

2
i
4
5
6
/

Industry groupings
8 Manufacturing
9 Capacity utilization, manufacturing
(percent)2

83.9

82.3

78.2

77.0

77.4

77.5

77.7

78.2

77.8

78.0

77.7

77.2

10 Construction contracts 3

105.2

95.3

89.5

95.0

100.0

96.0

93.0

86.0

90.0

89.0

90.0

n.a.

11 Nonagricultural employment, total4
12 Goods-producing, total
13
Manufacturing, total
14
Manufacturing, production worker
15 Service-producing
16 Personal income, total
1/
Wages and salary disbursements
18
Manufacturing
19 Disposable personal income
20 Retail sales6

106.0
102.5
102.2
102.3
107.1
115.2
114.4
110.6
115.1
113.5

107.5r
101.0
100.5
ioo.r
109.5r
122.7
121.3
113.5
122.9
118.7

106.0r
96.4
97 Xf
96. l r
l.l r
127.0
124.4
113.6
128.0
119.8

105.8
95.2
96.1
95.5
109.1
130.0
126.2
113.7
131.4
123.1

105.8
95.2
96.1
95.6
109.2
131.2
127.6
114.5
132.6
124.6

105.9
95.2
96.1
95.7
109.3
131.8
128.0
114.6
133.8
123.1

106.0
95.2
96.1
95.7
109.5
131.9
127.8
115.0
133.8
123.5

106.2
95.3
96.1
95.7
109.6
132.4
128.6
115.5
134.2
124.1

106.1
95.0
95.9
95.4
109.6
132.5
128.5
ns.r
134.4
124.0

106.3
94.9
95.9
95.5
109.9
132.8
128.7
115.3
134.6
125.4

106.1
94.6
95.4
94.9
109.8
132.2
129.6
115.0
133.7
125.3

106.1
94.4
95.3
94.8
109.8

Prices7
21 Consumer (1982-84= 100)
22 Producer finished goods (1982=100)

124.0
113.6

130.7
119.2

136.2
121.7

138.1
121.8

138.6
122.1

139.3
122.2

139.5
122.4

139.7
123.2r

140.2
123.7

140.5
123.7

140.9
123.5

141.3
123.3

1. A major revision of the industrial production index and the capacity
utilization rates was released in April 1990. See "Industrial Production: 1989
Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Ratio of index of production to index of capacity. Based on data from the
Federal Reserve, DRI McGraw-Hill, U.S. Department of Commerce, and other
sources.
3. Index of dollar value of total construction contracts, including residential,
nonresidential, and heavy engineering, from McGraw-Hill Information Systems
Co., F.W. Dodge Division.
4. Based on data from U.S. Department of Labor, Employment and Earnings.
Series covers employees only, excluding personnel in the armed forces.
5. Based on data from U.S. Department of Commerce, Survey of Current
Business.

125.7

6. Based on data from U.S. Bureau of the Census, Survey of Current Business.
7. Based on data not seasonally adjusted. Seasonally adjusted data for changes
in the price indexes can be obtained from the Bureau of Labor Statistics, U.S.
Department of Labor, Monthly Labor Review.
NOTE. Basic data (not indexes) for series mentioned in notes 4, 5,and 6, and
indexes for series mentioned in notes 3 and 7 can also be found in the Survey of
Current Business.
Figures for industrial production for the latest month are preliminary, and many
figures for the three months preceding the latest month have been revised. See
"Recent Developments in Industrial Capacity and Utilization," Federal Reserve
Bulletin, vol. 76 (June 1990), pp. 411-35.

Selected Measures
2.11

A45

LABOR FORCE, EMPLOYMENT, A N D UNEMPLOYMENT
Thousands of persons; monthly data seasonally adjusted except as noted
1992
Category

1989

1990

1991
Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

HOUSEHOLD SURVEY DATA

1 Noninstitutional population1

188,601

190,216

191,883

192,906

193,036

193,168

193,295

193,431

193,588

193,749

193,893

2 Labor force (including Armed Forces) 1
3 Civilian labor force
Employment
4
Nonagricultural industries
5
Agriculture
Unemployment
6
Number
7
Rate (percent of civilian labor force) —
8 Not in labor force

126,077
123,869

126,954
124,787

127,421
125,303

128,309
126,287

128,604
126,590

128,830
126,830

129,148
127,160

129,525
127,549

129,498
127,532

129,396
127,437

129,219
127,273

114,142
3,199

114,728
3,186

114,644
3,233

113,811
3,232

114,155
3,194

114,465
3,209

114,478
3,178

114,322
3,252

114,568
3,204

114,519
3,218

114,459
3,242

6,528
5.3
62,524

6,874
5.5
63,262

8,426
6.7
64,462

9,244
7.3
64,597

9,242
7.3
64,432

9,155
7.2
64,338

9,504
7.5
64,147

9,975
7.8
63,906

9,760
7.7
64,090

9,700
7.6
64,353

9,572
7.5
64,674

108,329

109,872

108,310

108,142

108,200

108,377

108,496

108,423

108,594'

108,466r

108,409

19,442
693
5,187
5,644
25,770
6,695
27,120
17,779

19,117
710
5,133
5,808
25,877
6,729
28,130
18,304

18,455
691
4,685
5,772
25,328
6,678
28,323
18,380

18,290
653
4,582
5,753
25,146
6,673
28,584
18,461

18,278
651
4,603
5,754
25,089
6,675
28,643
18,507

18,279
646
4,605
5,746
25,170
6,682
28,707
18,542

18,275
641
4,632
5,745
25,143
6,681
28,833
18,546

18,236
634
4,600
5,745
25,144
6,672
28,854
18,538

18,242r
633
4,584
5,742
25,156r
6,660"^
28,971r
18,606r

18,150
628r
4,586r
5,728r
25,066r
6,663r
28,964r
18,681r

18,124
629
4,565
5,737
25,057
6,668
29,036
18,593

ESTABLISHMENT SURVEY DATA

9 Nonagricultural payroll employment3
10
11
12
13
14
15
16
17

Manufacturing
Mining
Contract construction
Transportation and public utilities
Trade
Finance
Service
Government

1. Persons sixteen years of age and older. Monthly figures are based on sample
data collected during the calendar week that contains the twelfth day; annual data
are averages of monthly figures. By definition, seasonality does not exist in
population figures.
2. Includes self-employed, unpaid family, and domestic service workers.
3. Includes all full- and part-time employees who worked during, or received

pay for, the pay period that includes the twelfth day of the month; excludes
proprietors, self-employed persons, household and unpaid family workers, and
members of the armed forces. Data are adjusted to the March 1984 benchmark,
and only seasonally adjusted data are available at this time.
SOURCE. Based on data from U.S. Department of Labor, Employment and
Earnings.

A46
2.12

Domestic Nonfinancial Statistics • December 1992
OUTPUT, CAPACITY, A N D CAPACITY UTILIZATION 1
Seasonally adjusted
1991
Q4

1992

Q2r

1991
Q3

Output (1987=100)

1992

1991
Q4

Capacity (percent of 1987 output)

1992
Ql

Q2r

Capacity utilization rate (percent)

1 Total industry

107.9

107.1

108.5

108.9

136.2

137.0

137.7

138.4

79.3

78.2

78.8

2 Manufacturing

108.6

108.0

109.5

109.8

138.9

139.7

140.6

141.4

78.2

77.3

77.9

77.7

Primary processing
Advanced processing

104.1
110.7

104.0
109.9

105.4
111.4

106.1
111.5

128.8
143.5

129.3
144.6

129.6
145.6

129.9
146.7

80.8
77.1

80.5
76.0

81.3
76.5

81.7
76.0

5
6
7
8
9
10
11
12
13

Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment

107.7
95.1
102.5
103.2
101.4
122.7
110.4
97.0

106.6
98.5
102.2
103.8
100.0
122.1
110.5
91.7

108.4
96.7
101.7
101.6
101.7
125.7
111.8
100.5

108.7
98.0
104.5
105.1
103.7
128.5
112.8
98.4

142.8
125.7
129.3
134.5
121.9
162.8
146.6
135.6

143.7
125.9
129.1
134.1
122.1
164.3
147.9
136.2

144.4
126.1
128.3
132.7
122.2
165.9
149.1
136.7

145.2
126.3
127.5
131.2
122.3
167.4
150.4
137.2

75.4
75.7
79.2
76.7
83.2
75.4
75.3
71.5

74.2
78.2
79.2
77.4
81.9
74.3
74.7
67.3

75.0
76.7
79.2
76.6
83.3
75.8
75.0
73.5

74.9
77.6
81.9
80.1
84.8
76.7
75.0
71.7

102.8

99.3

96.8

94.1

139.6

140.4

140.9

141.5

73.7

70.8

68.7

66.5

14
15
16
17
18
19

Nondurable goods
Textile mill products
Paper and products
Chemicals and products

109.7
104.1
107.4
113.0
126.2
107.1

109.8
104.3
105.8
113.6
124.4
107.7

110.9
106.2
106.7
116.8
129.7
109.2

111.1
106.8
107.4
117.1

134.8
118.8
119.3
143.4
148.7
121.4

135.6
119.2
119.9
144.3
150 5
121.5

136.5
119.7
120.5
145.1
121.6

82.0
88.0
90.5
79.4
86 4
88.2

81.5
87.9
88.7
79.2
83 7
88.7

81.7
89.0
89.0
81.0
86 2
89.9

81.4
89.2
89.1
80.7

107.1

133.8
118.3
118.7
142.3
146.1
121.4

99.7
109.4
111.6

97.9
107.0
109.7

98.9
107.4
110.3

99.3
109.5
113.3

114.7
129.2
125.2

114.7
129.5
125.6

114.7
129.8
126.0

114.8
130.1
126.4

87.0
84.7
89.1

85.3
82.6
87.3

86.2
82.7
87.6

86.6
84.2
89.6

Latest cycle3

1991

June r

July r

Aug/

Sept."

3
4

Petroleum products

20 Mining
21 Utilities
22 Electric

Previous cycle2
High

Low

High

Low

Sept.

78.7

88.1

1992
Feb.

Mar.

Apr.

May

Capacity utilization rate (percent)
1 Total industry

89.2

72.6

87.3

71.8

79.9

78.3

78.4

78.7

79.1

78.6

79.1

78.7

78.4

2 Manufacturing

88.9

70.8

87.3

70.0

78.8

77.4

77.5

77.7

78.2

77.8

78.0

77.7

77.2

92.2
87.5

68.9
72.0

89.7
86.3

66.8
71.4

81.3
77.7

80.4
76.1

80.8
76.1

81.1
76.3

81.5
76.8

81.4
76.3

82.5
76.2

81.5
76.1

81.0
75.7

3
4

Primary processing
Advanced processing

5
6
7
8
9
10
11
12
13

Durable goods
Lumber and products
Primary metals
Iron and steel
Nonferrous
Nonelectrical machinery
Electrical machinery
Motor vehicles and parts
Aerospace and miscellaneous
transportation equipment.

88.8
90.1
100.6
105.8
92.9
96.4
87.8
93.4

68.5
62.2
66.2
66.6
61.3
74.5
63.8
51.1

86.9
87.6
102.4
110.4
90.5
92.1
89.4
93.0

65.0
60.9
46.8
38.3
62.2
64.9
71.1
44.5

76.2
75.8
79.3
75.1
85.7
76.1
76.2
73.6

74.5
78.5
79.5
77.4
82.9
74.2
74.8
68.9

74.3
78.8
78.7
76.7
81.8
74.5
74.8
69.1

74.6
77.1
78.5
75.8
82.6
75.1
74.7
72.2

75.5
77.2
79.5
77.0
83.3
76.4
75.3
75.1

75.0
75.6
79.7
77.0
83.9
76.0
75.0
73.3

75.2
78.7
82.7
80.8
85.5
76.6
75.1
71.3

75.1
77.7
82.2
80.4
84.8
76.8
75.2
72.3

74.4
76.5
81.0
79.0
84.0
76.8
74.7
71.5

77.0

66.6

81.1

66.9

75.3

70.9

70.2

69.2

68.7

68.2

67.7

66.5

65.3

14
15
16
17
IK
19

Nondurable goods
Textile mill products
Paper and products
Chemicals and products
Plastics materials
Petroleum products

87.9
92.0
96.9
87.9
102.0
96.7

71.8
60.4
69.0
69.9
50.6
81.1

87.0
91.7
94.2
85.1
90.9
89.5

76.9
73.8
82.0
70.1
63.4
68.2

82.3
87.4
91.4
79.6
87.0
89.4

81.3
88.2
87.6
79.1
83.0
88.1

81.7
88.5
88.5
79.9
85.0
90.3

81.8
89.3
89.3
80.4
85.4
90.8

81.8
89.6
88.3
81.1
87.3
89.3

81.6
88.2
89.3
81.3
85 9
89.6

81.9
89.6
91.1
81.1
89 8
89.8

81.2
88.8
88.1
80.8

81.0
89.2
88.2
80.2

86.6

88.0

94.4
95.6
99.0

88.4
82.5
82.7

96.6
88.3
88.3

80.6
76.2
78.7

88.5
85.1
90.8

85.7
82.2
86.8

84.9
83.1
88.1

86.3
83.4
88.2

86.9
82.7
87.5

85.4
82.1
87.0

87.6
84.1
89.5

86.5
83.2
88.4

85.5
85.3
91.1

20 Mining
21 Utilities
22 Electric

1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover. For a detailed description of
the series, see "Recent Developments in Industrial Capacity and Utilization,"
Federal Reserve Bulletin, vol. 76 (June 1990), pp. 411-35.

2. Monthly high, 1973; monthly low, 1975.
3. Monthly highs, 1978 through 1980; monthly lows, 1982.

Selected Measures
2.13

INDUSTRIAL PRODUCTION

A47

Indexes and Gross Value 1

Monthly data seasonally adjusted

Group

1987
proportion

1992

1991
1991
avg.
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June r

July*

Aug.1" Sept. p

Index (1987 = 100)
MAJOR MARKETS

100.0

107.1

108.4

108.1

107.4

106.6

107.2

107.6

108.1

108.9

108.5

109.3

108.9

108.6

2 Products
3 Final products
4
Consumer goods, total
5
Durable consumer goods
6
Automotive products
7
Autos and trucks
8
Autos, consumer
9
Trucks, consumer
10
Auto parts and allied goods...
11
Other
12
Appliances, A/C, and TV
13
Carpeting and furniture
14
Miscellaneous home goods . . .
15
Nondurable consumer goods
16
Foods and tobacco
17
Clothing
18
Chemical products
19
Paper products
Energy
20
21
Fuels
22
Residential utilities

60.8
46.0
26.0
5.6
2.5
1.5
.9
.6
1.0
3.1
.8
.9
1.4
20.4
9.1
2.6
3.5
2.5
2.7
.7
2.0

108.1
109.6
107.5
102.3
97.8
90.2
84.6
99.6
109.3
105.8
99.5
99.4
113.4
109.0
106.7
93.5
115.8
123.6
108.5
103.5
110.4

108.9
110.4
109.4
107.7
106.5
103.0
94.6
117.1
111.8
108.7
104.1
101.8
115.6
109.8
107.8
95.2
117.3
124.8
106.7
104.4
107.6

109.0
110.6
109.7
107.5
106.7
105.1
92.6
126.1
109.1
108.1
102.1
101.8
115.6
110.3
107.8
96.3
117.0
125.6
108.5
103.5
110.3

109.0
110.6
110.0
106.0
103.6
99.0
89.8
114.5
110.5
108.0
102.3
101.6
115.2
111.1
108.1
96.5
117.9
126.4
112.0
103.6
115.1

108.4
109.9
109.1
104.6
101.3
96.7
88.2
111.0
108.2
107.2
98.9
101.5
115.5
110.3
107.0
96.2
118.0
126.8
109.3
104.3
111.2

107.5
108.7
108.1
101.3
94.2
84.3
79.1
93.0
109.1
106.9
99.6
101.1
114.7
110.0
107.3
95.0
118.1
126.8
106.8
103.8
108.0

108.1
109.4
108.8
105.3
101.6
94.3
84.8
110.2
112.6
108.3
102.9
102.4
115.0
109.8
107.4
95.2
118.3
124.7
106.4
103.5
107.5

108.5
109.8
109.3
106.2
103.6
95.7
81.9
118.8
115.5
108.3
103.5
102.5
114.7
110.2
107.8
95.1
119.4
124.6
107.0
103.7
108.2

109.0
110.6
110.1
107.9
106.5
102.5
93.1
118.3
112.5
109.1
103.4
104.4
115.2
110.7
107.6
95.3
120.8
125.1
108.9
105.1
110.3

109.7
111.4
110.8
111.1
110.6
107.8
98.6
123.3
114.8
111.5
107.4
105.9
117.3
110.7
107.7
96.4
121.4
124.3
107.2
104.0
108.4

109.0
110.5
109.6
109.2
108.0
104.0
97.6
114.8
114.0
110.2
106.2
103.2
116.9
109.7
107.2
95.5
121.6
121.7
104.8
104.4
105.0

109.5
111.0
110.3
108.5
106.4
100.5
92.3
114.3
115.3
110.1
102.3
103.4
118.8
110.8
108.5
96.7
121.5
121.9
107.4
105.3
108.2

109.3
110.9
110.1
108.8
106.0
100.0
86.2
123.1
115.2
111.0
110.6
104.0
115.8
110.4
108.4
95.5
121.9
121.8
105.6
100.2
107.6

109.1
110.8
110.2
108.1
106.2
100.4
90.2
117.6
114.8
109.6
108.8
103.4
114.1
110.8
108.6
95.0
121.3
122.3
108.4
103.1
110.4

23
24
25
26
27
28
29
30
31
32
33

Equipment
Business equipment
Information processing and related . .
Office and computing
Industrial
Transit
Autos and trucks
Other
Defense and space equipment
Oil and gas well drilling
Manufactured homes

20.0
13.9
5.6
1.9
4.0
2.5
1.2
1.9
5.4
.6
.2

112.2
121.5
131.5
155.5
108.0
126.8
88.6
113.6
91.1
93.3
85.5

111.8
122.2
130.3
152.2
108.2
132.7
99.3
114.2
89.1
80.1
86.2

111.9
122.3
131.7
156.0
106.8
133.1
101.1
113.6
89.1
79.0
86.3

111.4
121.8
133.4
157.8
104.2
130.5
96.5
113.8
88.8
78.1
87.0

110.9
121.4
134.0
159.1
102.3
129.5
96.1
114.1
88.1
75.8
87.9

109.4
119.9
134.1
160.6
100.7
124.2
84.9
113.1
86.7
71.8
98.4

110.2
121.0
134.6
162.4
101.3
129.2
94.7
112.2
86.2
73.9
99.7

110.4
121.5
136.0
164.9
101.3
128.9
95.0
112.2
85.6
76.2
98.7

111.3
123.0
137.9
168.2
101.7
131.7
101.3
113.2
84.7
79.2
100.7

112.3
124.5
139.2
170.5
103.4
133.3
105.6
115.0
84.2
79.2
100.3

111.6
124.1
140.4
174.0
102.9
131.8
101.7
111.5
83.6
74.6
97.1

111.9
124.5
141.9
178.0
103.6
128.7
98.1
111.9
82.9
78.6
112.0

112.1
125.1
142.9
180.5
102.7
131.0
100.7
112.9
82.2
75.0
106.1

111.5
124.7
143.4
184.0
102.5
128.7
101.2
111.9
81.2
74.3
106.3

34
35
36

Intermediate products, total
Construction supplies
Business supplies

14.7
6.0
8.7

103.4
96.0
108.4

104.3
96.5
109.7

104.1
95.4
110.1

103.9
95.9
109.4

103.8
95.0
110.0

103.9
95.5
109.9

104.0
96.0
109.6

104.4
96.7
109.7

103.9
96.5
109.0

104.4
97.8
109.0

104.4
97.2
109.4

104.8
98.0
109.6

104.4
97.9
108.8

104.0
96.8
109.0

37 Materials
38 Durable goods materials
39
Durable consumer parts
Equipment parts
40
41
Other
42
Basic metal materials
43 Nondurable goods materials
44
Textile materials
45
Pulp and paper materials
46
Chemical materials
47
Other
48 Energy materials
49
Primary energy
50
Converted fuel materials

39.2
19.4
4.2
7.3
7.9
2.8
9.0
1.2
1.9
3.8
2.1
10.9
7.2
3.7

105.5
107.1
96.4
114.4
106.0
106.0
105.9
97.0
106.9
106.1
109.7
102.3
102.4
102.0

107.5
109.3
101.3
113.9
109.3
109.5
108.3
99.5
110.4
108.2
111.3
103.6
103.8
103.4

107.4
108.8
101.6
113.6
108.2
107.7
109.6
101.8
112.0
109.9
111.2
103.1
102.8
103.8

106.6
108.6
100.5
113.7
108.3
108.1
107.7
99.9
108.6
108.3
110.1
102.2
100.9
104.5

105.8
108.1
97.0
114.2
108.4
108.1
107.1
98.5
109.6
107.0
109.7
100.4
100.4
100.5

105.2
107.0
95.3
114.1
106.7
105.1
107.3
98.9
107.4
107.6
111.2
100.4
100.5
100.2

105.8
108.1
97.1
115.2
107.5
107.3
107.1
101.5
106.8
106.6
111.2
100.5
100.6
100.4

106.1
108.3
97.9
115.1
107.5
106.3
108.9
102.0
107.8
109.3
112.7
100.1
98.2
103.8

106.8
108.7
99.3
114.7
108.1
106.3
109.4
103.2
109.2
109.9
112.2
101.3
99.8
104.1

107.7
110.4
102.5
116.2
109.2
108.3
109.7
102.9
107.8
111.2
112.4
101.3
99.7
104.3

107.6
110.2
102.9
116.2
108.7
107.7
110.4
102.3
110.8
110.9
113.4
100.6
99.6
102.6

108.9
111.1
101.8
117.5
110.1
111.5
111.5
103.9
111.7
112.7
113.2
102.9
102.3
104.1

108.2
111.1
103.1
117.2
109.7
111.0
109.8
102.0
108.2
111.3
113.1
101.5
100.8
103.0

107.9
110.4
100.8
117.0
109.3
109.7
109.8
102.6
109.2
110.7
112.8
102.0
100.7
104.4

97.3
95.3

107.6
107.9

108.6
108.8

108.5
108.8

108.3
108.7

107.7
108.0

107.3
107.6

107.6
107.8

107.9
108.2

108.3
108.6

109.0
109.2

108.6
108.8

109.6
109.9

109.1
109.3

108.9
109.2

Total index

SPECIAL AGGREGATES

51 Total excluding autos and trucks
52 Total excluding motor vehicles and parts...
53 Total excluding office and computing
machines
54 Consumer goods excluding autos and
trucks
55 Consumer goods excluding energy
56 Business equipment excluding autos and
trucks
57 Business equipment excluding office and
computing equipment
58 Materials excluding energy

97.5

105.8

107.3

107.2

106.8

106.1

105.3

105.8

106.1

106.6

107.4

106.8

107.6

107.1

106.7

24.5
23.3

108.6
107.4

109.8
109.7

109.9
109.8

110.7
109.8

109.8
109.1

109.6
108.3

109.7
109.1

110.2
109.6

110.6
110.3

110.9
111.2

109.9
110.1

110.9
110.6

110.7
110.6

110.8
110.4

12.7

124.8

124.4

124.3

123.8

123.3

123.6

124.1

125.2

126.4

126.3

127.0

127.5

127.0

12.0
28.4

116.0
106.7

117.3
109.0

116.9
109.1

116.0
108.3

115.3
107.8

113.3
107.1

114.3
107.8

114.5
108.5

115.7
108.9

117.1
110.2

116.1
110.3

115.8
111.3

116.2
110.7

115.2
110.2

A48

Domestic Nonfinancial Statistics • December 1992

2.13—Continued

„

Uroup

SIC

code

1987
proportion

1991

1992

1991
avg.
Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June r

July r

Aug. r

Sept. p

Index (1987 = 100)
MAJOR INDUSTRIES

1 Total index

100.0

107.1

108.4

108.1

107.4

106.6

107.2

107.6

108.1

108.9

108.5

109.3

108.9

108.6

2 Manufacturing
3 Primary processing
4 Advanced processing

84.4
26.7
57.7

107.4
102.4
109.8

108.9
104.4
111.0

109.0
104.7
111.0

108.6
104.1
110.7

108.1
103.5
110.3

107.4
103.6
109.2

108.1
103.9
110.0

108.5
104.5
110.3

109.0
105.0
110.8

109.9
105.6
111.9

109.6
105.6
111.4

110.1
107.1
111.5

109.8
105.9
111.7

109.4
105.4
111.2

5
6
7
8

47.3
2.0
1.4

107.1
94.2
99.1

108.4
95.2
101.2

108.2
93.8
100.5

107.8
96.4
99.9

107.1
95.2
100.6

105.8
97.4
98.7

107.0
98.8
98.1

107.0
99.2
98.6

107.6
97.2
101.1

109.1
97.4
103.3

108.5
95.4
100.3

109.0
99.3
100.8

109.0
98.1
102.0

108.2
96.6
100.4

2.5
3.3
1.9
.1
1.4

94.9
99.5
98.0
97.3
101.5

94.4
102.3
100.8
100.9
104.4

94.4
102.6
102.4
101.3
102.9

92.8
103.5
105.6
99.1
100.5

93.0
101.3
101.7
97.6
100.8

92.8
102.5
105.0
103.3
98.9

94.6
102.7
103.7
102.7
101.2

95.0
101.4
102.5
98.8
99.9

95.6
100.9
100.9
99.9
100.9

96.7
102.0
102.2
98.5
101.8

96.6
102.1
101.8
101.5
102.5

96.5
105.6
106.4
105.3
104.5

97.2
104.8
105.5
101.9
103.7

97.0
103.1
103.3
98.6
102.8

5.4
8.6

100.4
123.5

101.9
123.1

101.9
123.5

101.8
122.8

101.2
121.9

99.7
121.4

100.5
121.9

100.0
122.9

100.6
124.1

102.2
126.7

102.2
126.4

102.4
127.9

101.7
128.6

100.3
128.9

2.5
8.6

155.5
110.1

152.2
111.0

155.9
109.8

157.8
110.7

159.1
110.6

160.5
110.0

162.4
110.7

164.9
110.9

168.2
111.0

170.5
112.3

174.0
112.2

178.0
112.6

180.5
113.1

184.0
112.7

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

Durable goods
Lumber and products . . .
"'24
Furniture and fixtures . . .
25
Clay, glass, and stone
products
32
Primary metals
33
Iron and steel
331,2
Raw steel
Nonferrous
333-6,9
Fabricated metal
products
34
Nonelectrical machinery.
35
Office and computing
machines
357
Electrical machinery
36
equipment
37
Motor vehicles and
parts
371
Autos and light
trucks
Aerospace and miscellaneous transportation equipment.. 372-6,9
Instruments
38
Miscellaneous
39
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 . . .

34 Mining
35 Metal
36 Coal
37 Oil and gas extraction
38 Stone and earth minerals . .
39 Utilities
40 Electric
41 Gas

9.8

98.6

102.2

102.4

99.7

98.0

93.8

96.8

96.5

98.0

99.6

98.2

96.6

96.5

95.3

4.7

90.4

99.5

100.4

95.9

94.6

87.1

93.8

94.2

98.5

102.7

100.4

97.7

99.2

98.3

2.3

89.4

101.8

103.2

97.6

95.5

83.5

92.9

93.7

101.1

106.5

103.0

99.3

97.9

98.9

5.1
3.3
1.2

106.0
118.2
119.3

104.6
118.1
121.5

104.3
118.2
120.6

103.1
118.7
120.7

101.2
119.0
121.0

99.8
118.3
121.2

99.6
118.6
120.0

98.6
118.6
120.0

97.4
119.0
118.9

96.8
119.8
118.4

96.3
118.5
117.8

95.6
118.6
120.1

94.1
118.5
118.3

92.6
117.7
117.9

"20
21
22
23
26
27
28
29

37.2
8.8
1.0
1.8
2.4
3.6
6.4
8.6
1.3

107.9
108.6
99.7
100.5
96.2
105.1
112.3
110.9
107.5

109.6
109.5
102.7
103.2
98.1
108.0
113.3
112.6
108.6

110.1
109.4
102.2
105.5
98.7
109.0
114.4
113.5
106.0

109.6
110.1
97.7
104.4
98.8
106.1
114.2
113.0
106.7

109.5
109.6
94.7
102.5
99.0
107.0
114.5
112.6
108.6

109.5
109.2
98.8
103.1
97.5
107.1
114.8
112.7
106.6

109.6
109.6
99.4
104.7
97.7
104.6
114.4
113.4
106.9

110.4
110.2
101.3
105.3
97.8
105.8
113.8
114.8
109.7

110.7
109.6
101.0
106.3
98.0
107.0
113.7
115.8
110.3

110.9
109.3
102.5
106.8
99.0
105.8
113.4
117.0
108.5

111.0
109.0
103.6
105.3
98.1
107.3
113.0
117.5
108.9

111.6
110.2
102.7
107.1
99.3
109.6
112.3
117.4
109.1

110.9
110.4
103.8
106.3
97.7
106.1
112.3
117.2
105.3

110.8
110.5
103.4
106.9
96.5
106.5
112.2
116.7
107.0

30
31

3.0
.3

110.0
88.1

113.8
85.8

113.2
83.9

112.6
84.3

113.0
83.2

113.2
83.0

114.0
81.4

115.4
82.9

116.5
84.1

117.1
86.2

117.3
86.2

118.4
87.6

117.7
83.3

117.9
83.4

11,12
13
14

7.9
.3
1.2
5.7
.7

101.1
150.2
109.2
95.8
108.1

101.4
153.1
110.1
96.0
107.3

100.7
146.5
107.9
96.0
105.9

99.6
151.5
108.4
94.1
105.8

98.8
154.0
107.6
93.0
106.4

97.8
144.2
107.3
92.4
104.8

98.4
152.9
107.9
92.7
103.5

97.5
155.8
103.0
91.9
107.4

99.1
154.2
104.0
94.2
105.9

99.7
166.4
107.6
93.4
108.0

98.0
154.0
98.6
93.9
105.6

100.6
164.1
112.0
94.0
106.2

99.3
165.7
107.5
93.0
107.4

98.1
165.8
104.3
92.0
107.8

49i,3PT
492,3PT

7.6
6.0
1.6

109.2
112.8
96.0

109.7
113.4
95.8

109.4
112.2
98.9

111.0
112.7
104.7

107.9
109.9
100.5

106.8
109.3
97.5

106.4
109.0
96.9

107.7
110.7
96.7

108.2
111.0
97.7

107.3
110.2
96.6

106.7
109.7
95.3

109.3
113.0
95.4

108.2
111.7
95.5

111.0
115.2
95.6

79.8

108.4

109.5

109.3

108.9

108.6

108.9

109.3

109.6

110.3

110.1

110.8

110.4

110.0

82.0

106.0

107.6

107.1

106.6

105.8

106.5

106.8

107.2

108.1

107.6

108.1

107.7

107.2

"LO

SPECIAL AGGREGATES

42 Manufacturing excluding
motor vehicles and
parts
43 Manufacturing excluding
office and computing
machines

Gross value (billions of 1982 dollars, annual rates)
MAJOR MARKETS

44 Products, total

1,734.8 1,880.0 1,901.8 1,911.4 1,904.9 1,888.9 1,869.5 1,889.7 1,902.8 1,918.7 1,935.5 1,920.1 1,934.8 1,930.8 1,934.2

45 Final
46 Consumer goods
47 Equipment
48 Intermediate

1,350.9 1,481.8 1,501.5 1,510.0 1,504.1 1,488.0 1,468.7 1,490.8 1,501.5 1,518.2 1,532.1 1,519.1 1,530.1 1,528.1 1,533.5
833.4 879.8 898.3 902.4 902.2 894.5 877.6 890.2 896.2 905.6 912.4 901.3 908.9 903.9 907.8
517.5 602.0 603.3 607.6 601.8 593.5 591.1 600.6 605.3 612.7 619.7 617.8 621.2 624.2 625.7
384.0 398.2 400.3 401.4 400.8 401.0 400.7 398.9 401.2 400.5 403.4 401.1 404.7 402.7 400.7

1. Data in this table also appear in the Board's G.17 (419) monthly statistical
release. For ordering address, see inside front cover.
A major revision of the industrial production index and the capacity
utilization rates was released in April 19k). See "Industrial Production: 1989

Developments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April
1990), pp. 187-204.
2. Standard industrial classification,

Selected Measures
2.14

A49

HOUSING A N D CONSTRUCTION
Monthly figures at seasonally adjusted annual rates, except as noted
1991
1989

Item

1990

1992

1991
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

July r

Aug.

1,032
872
160
1,147
999
148
643
483
160
1,184
982
202
194

1,080
879
201
1,100
956
144
634
479
155
1,221
1,013
208
211

1,076
877
199
1,239
1,058
181
641
485
156
1,132
956
176
198

June

Private residential real estate activity (thousands of units, except as noted)
NEW UNITS

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

Permits authorized
One-family
Two-or-more-family
Started
One-family
Two-or-more-family
Under construction at end of period 1 ..
One-family
Two-or-more-family
Completed
One-family
Two-or-more-family
Mobile homes shipped

1,339
932
407
1,376
1,003
373
850
535
315
1,423
1,026
396
198

1,111
794
317
1,193
895
298
711
449
262
1,308
966
342
188

949
754
195
1,014
840
174
606
434
173
1,091
838
253
171

979
792
187
1,085
907
178
633
454
179
1,021
824
197
171

1,073
873
200
1,118
972
146
633
458
175
1,021
851
170
176

1,106
913
193
1,180
989
191
640
466
174
1,043
838
205
192

1,146
946
200
1,257
1,109
148
629
464
165
1,097
908
189
197

1,094
907
187
1,340
1,068
272
657
482
175
1,127
975
152
197

1,058
873
185
1,086
933
153
655
484
171
1,067
889
178
199

650
365

535
321

507
283

578
286

578
283

667
281

627
269

555
277

546
274

554 R
272

581
274

607
273

570
272

120.4
148.3

122.3
149.0

120.0
147.0

118.5
141.7

122.0
143.0

120.0
144.2

117.2
144.8

120.0
144.8

120.0
145.0

113.0"
146.0"

122.9
146.0

118.0
137.2

121.0
140.2

18 Number sold

3,346

3,211

3,219

3,230

3,310

3,220

3,490

3,510

3,490

3,460

3,350

3,450

3,310

Price of units sold (thousands
of dollars)2
19 Median
20 Average

92.9
118.0

95.2
118.3

99.7
127.4

97.9
124.9

100.3
127.3

102.4
130.5

102.8
128.8

104.0
130.2

103.3
130.6

102.5
130.6

105.1
133.7

102.7
132.2

104.6
132.2

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)2
16 Median
17 Average

1,054
879
175
1,196
1,019
177
653
484
169
1,204
1,011
193
189

EXISTING UNITS ( o n e - f a m i l y )

Value of new construction (millions of dollars)3
CONSTRUCTION

21 Total put in place

443,401

442,066

400,955 401,247

398,736

421,512 427,585" 427,980" 426,730

427,478

424,032

22 Private
23 Residential
24 Nonresidential, total
25
Industrial buildings
26
Commercial buildings
27
Other buildings
28
Public utilities and other

345,327
196,551
148,776
20,412
65,496
19,683
43,185

334,153
182,856
151,297
23,849
62,866
21,591
42,991

290,707 288,345
157,837 164,491
132,870 123,854
22,281 21,566
48,482 41,612
20,797 20,114
41,310 40,562

287,383 292,540 294,758 301,142 309,832" 306,999" 312,182
164,133 169,548 169,772 172,660 182,644" 182,892" 184,630
123,250 122,992 124,986 128,482 127,188" 124,107" 127,552
22,411 21,258 21,651
23,721 21,335" 21,008" 20,285
40,898 41,196 41,591 42,108 40,712" 39,643" 43,310
20,480
19,751 20,630 21,479 21,409" 21,993
21,991
39,461 40,787
41,114 41,174 43,732" 41,463" 41,966

308,119
183,217
124,902
20,472
39,788
22,211
42,431

304,448
186,764
117,684
17,671
35,278
21,543
43,192

98,071
3,520
28,837
5,009
60,705

107,909
2,664
31,154
4,607
69,484

110,247
1,837
29,918
4,958
73,534

111,353
2,633
29,562
5,363
73,795

119,359
2,258
32,605
5,665
78,831

119,584
2,152
33,444
5,382
78,606

29 Public
30 Military
31 Highway
32 Conservation and development...
33 Other

112,901
1,790
29,594
6,611
74,906

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 Bureau in July 1976.

407,121

114,581
2,039
30,221
5,480
76,841

411,767

117,009
2,206
32,744
5,283
76,776

120,370 117,753" 120,981"
2,548
2,329
2,668
30,895 31,447" 32,633"
6,197
5,818"
5,767"
80,730 78,159" 79,913"

114,548
2,503
31,496
5,889
74,660

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 17,000 jurisdictions
beginning in 1984.

A50
2.15

Domestic Nonfinancial Statistics • December 1992
CONSUMER A N D PRODUCER PRICES
Percentage changes based on seasonally adjusted data except as noted
Change from 12
months earlier

Change from 3 months earlier
(annual rate)

Item

1991
1991

1992

Aug.

Change from 1 month earlier

1992

Index
level,
Aug

1992

19921

Sept.

Dec.

Mar.

June

Apr.

May

June

July

Aug.

CONSUMER PRICES2
( 1 9 8 2 - 8 4 = 100)
1

All items

Food
3 Energy items
4 All items less food and energy
Commodities
6
Services
2

3.4

3.0

3.2

3.5

2.6

141.3

2.1
-4.8
4.5
4.3
4.7

1.8
2.2
3.3
2.5
3.6

2.7
3.6
3.1
.6
4.3

1.5
-6.9
4.8
5.3
4.8

-1.2
12.5
2.8
2.1
2.9

4.7
.4
2.5
2.1
2.6

-.4
.6
.2
.4
.1

.1
2.0
.2
.0

-.1

.9
-.2
.2
.2
.3

.4
.0
.2
.2
.1

138.5
105.9
148.1
133.1
156.8

1.0

.2
.R
2.R
-,4R

.1
.0
-.4
.2
.2

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

.3
.4
.8
.2
.0

123.3
123.2
80.9
136.3
128.0

.1
.2

.0
.2

.1
.0

115.9
122.3

-1.7
1.1
1.3

-.4
.2
.1

.6
3.6
-.5

103.0
83.2
130.5

.3
.2
.2

PRODUCER PRICES
(1982=100)
7
8
9
10
11

Finished goods
Consumer foods
Consumer energy
Other consumer goods
Capital equipment

.8
-1.2
-3.5
3.4
2.7

1.6
.4
2.3
2.2
1.4

1.0
-1.0
-.5
2.4
1.9

-7.0
3.6
3.5

3.0
-1.6
16.1
2.4
.9

2.0
4.3
1.0
1.2
.9

.2
-,2R
1.0"
,5R
.1

12
13

Intermediate materials
Excluding foods and feeds
Excluding energy

-1.4

-.3

1.0
1.1

-1.7
.0

.0
1.7

5.0
1.3

.7
1.3

.4
,2R

14
15
16

Crude materials
Foods
Energy
Other

-7.0
-21.8
-10.3

.0
8.1
3.9

-4.9
5.3
-5.9

11.8
-26.6
15.0

1.5
44.8
3.5

-5.9
21.8
3.8

I.R
3.2
.8R

1. Not seasonally adjusted.
2. Figures for consumer prices are for all urban consumers and reflect a
rental-equivalence measure of homeownership.

.7
.2

.6R
2.3
— .2R

SOURCE. Bureau of Labor Statistics.

Selected Measures
2.16

A51

GROSS DOMESTIC PRODUCT A N D INCOME
Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates
1991
Account

1989

1990

1992

1991
Q2

GROSS DOMESTIC PRODUCT

1 Total

5,250.8

5,522.2

5,677.5

5,657.6

5,713.1

5,753.3

5,840.2

5,902.2

3,523.1
459.4
1,149.5
1,914.2

3,748.4
464.3
1,224.5
2,059.7

3,887.7
446.1
1,251.5
2,190.1

3,871.9
441.4
1,254.2
2,176.3

3,914.2
453.0
1,255.3
2,205.9

3,942.9
450.4
1,251.4
2,241.1

4,022.8
469.4
1,274.1
2,279.3

4,057.1
470.6
1,277.5
2,309.0

832.3
798.9
568.1
193.3
374.8
230.9

799.5
793.2
577.6
201.1
376.5
215.6

721.1
731.3
541.1
180.1
360.9
190.3

710.2
732.0
545.8
185.2
360.6
186.2

732.8
732.6
538.4
175.6
362.8
194.2

736.1
726.9
528.7
169.7
358.9
198.2

722.4
738.2
531.0
170.1
360.8
207.2

773.2
765.1
550.3
170.3
380.0
214.8

33.3
31.8

6.3
3.3

-10.2
-10.3

-21.8
-27.0

.2
-1.2

9.2
14.5

-15.8
-13.3

8.1
6.4

14 Net exports of goods and services
15 Exports
16 Imports

-79.7
508.0
587.7

-68.9
557.0
625.9

-21.8
598.2
620.0

-15.3
594.3
609.6

-27.1
602.3
629.5

-16.0
622.9
638.9

-8.1
628.1
636.2

-37.1
625.4
662.5

17 Government purchases of goods and services
18 Federal
19 State and local

975.2
401.6
573.6

1,043.2
426.4
616.8

1,090.5
447.3
643.2

1,090.8
449.9
640.8

1,093.3
447.2
646.0

1,090.3
440.8
649.5

1,103.1
445.0
658.0

1,109.1
444.8
664.3

5,217.5
2,063.6
891.2
1,172.5
2,642.2
511.7

5,515.9
2,160.1
920.6
1,239.5
2,846.4
509.4

5,687.7
2,192.8
907.6
1,285.1
3,030.3
464.7

5,679.4
2,200.9
916.8
1,284.1
3,013.8
464.7

5,712.9
2,194.9
910.8
1,284.1
3,053.6
464.4

5,744.2
2,188.4
905.7
1,282.7
3,090.3
465.5

5,855.9
2,233.6
923.6
1,310.0
3,142.2
480.1

5,894.1
2,233.2
932.3
1,300.8
3,173.4
487.6

33.3
25.2
8.1

6.3
-.9
7.2

-10.2
-19.3
9.0

-21.8
-26.5
4.8

.2
-7.0
7.2

9.2
-8.1
17.3

-15.8
-19.3
3.5

8.1
9.5
-1.4

4,838.0

4,877.5

4,821.0

4,817.1

4,831.8

4,838.5

4,873.7

4,892.4

30 Total

4,249.5

4,468.3

4,544.2

4,529.2

4,555.4

4,599.1

4,679.4

4,716.5

31 Compensation of employees
32 Wages and salaries
33
Government and government enterprises
34
Other
35
Supplement to wages and salaries
Employer contributions for social insurance
36
37
Other labor income

3,100.2
2,586.4
478.5
2,107.9
513.8
261.9
251.9

3,291.2
2,742.9
514.8
2,228.0
548.4
277.4
271.0

3,390.8
2,812.2
543.5
2,268.7
578.7
290.4
288.3

3,379.6
2,804.3
543.4
2,260.9
575.2
289.1
286.1

3,407.0
2,824.4
544.3
2,280.0
582.6
292.0
290.6

3,433.8
2,845.0
546.4
2,298.6
588.7
293.7
295.0

3,476.3
2,877.6
554.6
2,323.0
598.7
299.4
299.2

3,506.3
2,901.3
561.4
2,339.9
605.0
301.5
303.6

38 Proprietors' income1
39 Business and professional 1
40 Farm 1

347.3
307.0
40.2

366.9
325.2
41.7

368.0
332.2
35.8

370.4
329.1
41.3

367.1
337.6
29.5

377.9
340.0
37.9

393.6
353.6
40.1

398.4
359.9
38.5

41 Rental income of persons 2

-13.5

-12.3

-10.4

-12.3

-10.3

-6.6

-4.5

3.3

42 Corporate profits1
43 Profits before tax 3
44 Inventory valuation adjustment
45 Capital consumption adjustment

362.8
342.9
-17.5
37.4

361.7
355.4
-14.2
20.5

346.3
334.7
3.1
8.4

347.3
332.3
9.9
5.1

341.2
336.7
-4.8
9.3

347.1
332.3
.7
14.1

384.0
366.1
-5.4
23.3

388.4
376.8
-15.5
27.0

46 Net interest

452.7

460.7

449.5

444.4

450.5

446.9

430.0

420.0

2
3
4
5

By source
Personal consumption expenditures
Durable goods
Nondurable goods
Services

6 Gross private domestic investment
7 Fixed investment
8
Nonresidential
9
Structures
10
Producers' durable equipment
11
Residential structures
12
13

Change in business inventories
Nonfarm

By major type of product
20 Final sales, total
21 Goods
22
Durable
23
Nondurable
24 Services
25 Structures
26 Change in business inventories
27
Durable goods
28 Nondurable goods
MEMO

29 Total GDP in 1987 dollars
NATIONAL INCOME

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.

A52
2.17

Domestic Nonfinancial Statistics • December 1992
PERSONAL INCOME A N D SAVING
Billions of current dollars, except as noted; quarterly data at seasonally adjusted annual rates
1991
Account

1989

1990

1992

1991

PERSONAL INCOME AND SAVING

1 Total personal income

4,380.3

4,664.2

4,828.3

4,806.9

4,846.2

4,907.2

4,980.5

5,028.9

2 Wage and salary disbursements
Commodity-producing industries
3
4
Manufacturing
5
Distributive industries
Service industries
6
7
Government and government enterprises

2,586.4
724.2
542.2
607.0
776.8
478.5

2,742.8
745.6
556.1
634.6
847.8
514.8

2,812.2
737.4
556.9
647.4
883.9
543.6

2,804.7
734.6
553.4
647.0
879.4
543.8

2,824.4
738.8
559.0
651.1
890.2
544.3

2,845.0
741.5
563.9
652.9
904.3
546.4

2,877.6
736.8
559.9
660.9
925.3
554.6

2,901.3
743.1
564.7
662.9
933.9
561.4

251.9
347.3
307.0
40.2
-13.5
126.5
668.2
625.0
325.1

271.0
366.9
325.2
41.7
-12.3
140.3
694.5
685.8
352.0

288.3
368.0
332.2
35.8
-10.4
137.0
700.6
771.1
382.0

286.1
370.4
329.1
41.3
-12.3
136.7
696.2
762.4
378.9

290.6
367.1
337.6
29.5
-10.3
135.6
701.8
777.1
384.2

295.0
377.9
340.0
37.9
-6.6
134.3
703.3
799.8
390.6

299.2
393.6
353.6
40.1
-4.5
133.9
684.8
842.7
405.7

303.6
398.4
359.9
38.5
3.3
136.6
675.2
859.7
412.1

8
9
10
11
12
13
14
15
16
17

Other labor income
Proprietors' income 1
Business and professional
Farm
Rental income of persons 2
Dividends
Personal interest income
Transfer payments
Old-age survivors, disability, and health insurance benefits . . .
LESS: Personal contributions for social insurance

18 EQUALS: Personal income
19

LESS: Personal tax and nontax payments

211.4

224.8

238.4

237.4

240.1

241.5

246.8

249.3

4,380.3

4,664.2

4,828.3

4,806.9

4,846.2

4,907.2

4,980.5

5,028.9

593.3

621.3

618.7

617.2

618.6

622.3

619.6

617.1

20 EQUALS: Disposable personal income

3,787.0

4,042.9

4,209.6

4,189.7

4,227.6

4,284.9

4,360.9

4,411.8

LESS: Personal outlays

3,634.9

3,867.3

4,009.9

3,994.4

4,036.6

4,065.5

4,146.3

4,179.5

22 EQUALS: Personal saving

152.1

175.6

199.6

195.3

191.0

219.4

214.6

232.3

19,555.6
13,028.9
14,005.0

19,513.0
13,043.6
14,068.0

19,077.1
12,824.1
13,886.0

19,090.6
12,837.6
13,891.0

19,094.0
12,847.9
13,876.0

19,066.0
12,802.6
13,913.0

19,158.5
12,930.2
14,017.0

19,181.8
12,893.3
14,021.0

4.0

4.3

4.7

4.5

5.1

4.9

5.3

MEMO

Per capita (1987 dollars)
23 Gross domestic product
24 Personal consumption expenditures
25 Disposable personal income
26 Saving rate (percent)
GROSS SAVING

27 Gross saving

741.8

718.0

708.2

701.3

679.4

698.2

677.5

682.9

28 Gross private saving

819.4

854.1

901.5

896.9

884.9

934.8

950.1

968.1

29 Personal saving
30 Undistributed corporate profits 1
31 Corporate inventory valuation adjustment

152.1
86.9
-17.5

175.6
75.7
-14.2

199.6
75.8
3.1

195.3
78.1
9.9

191.0
69.0
-4.8

219.4
78.3
.7

214.6
104.0
-5.4

232.3
97.7
-15.5

Capital consumption
32 Corporate
33 Noncorporate

352.4
228.0

368.3
234.6

383.0
243.1

382.5
241.0

383.5
241.4

386.3
250.7

386.1
245.3

391.2
247.0

-77.5
-122.3
44.8

-136.1
-166.2
30.1

-193.3
-210.4
17.1

-195.6
-212.2
16.5

-205.6
-221.0
15.4

-236.6
-258.7
22.0

-272.6
-289.2
16.6

-285.2
-302.9
17.7

allowances

34 Government surplus, or deficit ( - ) , national income and
product accounts
Federal
State and local

35
36

37 Gross investment

742.9

723.4

730.1

728.4

709.9

714.6

706.5

713.8

38 Gross private domestic
39 Net foreign

832.3
-89.3

799.5
-76.1

721.1
9.0

710.2
18.2

732.8
-22.9

736.1
-21.5

722.4
-16.0

773.2
-59.4

1.1

5.4

21.9

27.1

30.5

16.4

29.0

30.9

40 Statistical discrepancy
1. With inventory valuation and capital consumption adjustments.
2. With capital consumption adjustment.

SOURCE. U.S. Department of Commerce, Survey of Current Business.

Summary Statistics
3.10

U.S. INTERNATIONAL TRANSACTIONS

A53

Summary

Millions of dollars; quarterly data seasonally adjusted, except as noted 1
1992

1 Balance on current account
Merchandise trade balance
Merchandise exports
Merchandise imports
Military transactions, net
Other service transactions, net
Investment income, net
U.S. government grants
U.S. government pensions and other transfers
Private remittances and other transfers
11 Change in U.S. government assets other than official
reserve assets, net (increase, - )

-101,142
-115,668
361,697
-477,365
-6,837
32,604
14,366
-10,773
-2,517
-12,316

Q2P

-5,903
-17,222
107,946
-125,168
-624
14,468
4,474
-2,620
-858
-3,521

-17,788
-24,418
107,580
-131,998
-641
13,613
1,377
-3,011
-1,140
-3,568

-90,428
-108,853
388,705
-497,558
-7,818
39,873
19,287
-17,597
-2,945
-12,374

-3,682
-73,436
415,962
-489,398
-5,524
50,821
16,429
24,487
-3,462
-12,996

2,431
-16,397
103,324
-119,721
-1,427
12,209
3,931
8,214
-796
-3,303

-11,087
-20,174
104,151
-124,325
-995
13,018
3,076
-1,986
-793
-3,233

-7,218
-18,539
107,851
-126,390
-540
13,676
2,458
78
-1,080

-3,271

1,271

2,304

3,397

-420

3,180

-437

-38

-209

12 Change in U.S. official reserve assets (increase, - ) .
13 Gold
14 Special drawing rights (SDRs)
15 Reserve position in International Monetary Fund.
16 Foreign currencies

-25,293

-2,158

5,763

1,014

3,877

1,225

-1,057

1,464

-535
471
-25,229

-192
731
-2,697

-177
-367
6,307

-190
72
1,132

6
-114
3,986

-23
17
1,232

-172
111
-9%

-168

17 Change in U.S. private assets abroad (increase, - ) .
18 Bank-reported claims
19 Nonbank-reported claims
20 U.S. purchases of foreign securities, net
21 U.S. direct investments abroad, net

-90,923
-51,255
11,398
-22,070
-28,996

-56,467
7,469
-2,477
-28,765
-32,694

-71,379
-4,753
5,526
-45,017
-27,135

-7,644
-1,846
2,304
-11,783
3,681

-17,426
2,403
-298
-12,403
-7,128

-44,947
-23,219
1,269
-11,305
-11,692

-3,155
15,859
4,764
-8,703
-15,075

-6,987
12,592
-8,573
-11,006

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. banks3
27 Other foreign official assets

8,489
149
1,383
146
4,976
1,835

33,908
29,576
667

18,407
15,815
1,301
1,600

3,385
-1,586

-1,668

1,359

-4,178
-3,553
-219
421
-942
115

4,115
5,624
474
654
-2,732
95

12,819
12,619
1,075
-344
-914
383

21,192
14,909
540
%
5,534
113

21,071
11,615
1,699
503
7,329
-75

28 Change in foreign private assets in United States (increase, + ) . .
29 U.S. bank-reported liabilities3
30 U.S. nonbank-reported liabilities
31 Foreign private purchases of U.S. Treasury securities, net
32 Foreign purchases of other U.S. securities, net
33 Foreign direct investments in United States, net

205,205
63,382
5,565
29,618
38,767
67,873

65,471
16,370
4,906
-2,534
1,592
45,137

48,573
-13,678
-405
16,241
34,918
11,497

7,137
-27,411
-1,275
13,289
15,212
7,322

18,818

36,110
23,465
725
1,408
4,832
5,680

-2,629
-4,474
1,942

-5,133

34 Allocation of special drawing rights
35 Discrepancy
36 Due to seasonal adjustment
37 Before seasonal adjustment

1,866

8,508
1,575
-1,306
10,012

-2,158

8,343

32,042

10,738

1,707

-5,604

' 16,288*
10,872
5,989

-19,567
343
-19,910

1,225

-1,057

1,464

13,163

21,096

20,568

-4,288

1,023

2,459

-2,205

-2,699

-25,293

22,016

3,461

1,014
-4,599

47,370

1,631

3,877

5,763
16,807

2,394

-828

4,551
-3,820

0
1

-8,410
4,023
-12,433

-1,478
-6,137
4,659

47,370

2,447
613
1,835

1,660
883
777

-1,078

2,394

MEMO

Changes in official assets
U.S. official reserve assets (increase, - )
Foreign official assets in United States, excluding line 25
(increase, +)
40 Change in Organization of Petroleum Exporting Countries
official assets in United States (part of line 22)
38
39

1. Seasonal factors not calculated for lines 12-16, 18-20, 22-34, and 38-40.
2. Data are on an international accounts basis. The data differ from the Census
basis data, shown in table 3.11, for reasons of coverage and timing. Military
exports are excluded from merchandise trade data and are included in line 6.
3. Reporting banks include all types of depository institution as well as some
brokers and dealers.

4. Associated primarily with military sales contracts and other transactions
arranged with or through foreign official agencies.
5. Consists of investments in U.S. corporate stocks and in debt securities of
private corporations and state and local governments.
SOURCE. U.S. Department of Commerce, Survey of Current Business.

A54
3.11

International Statistics • December 1992
U.S. FOREIGN TRADE 1
Millions of dollars; monthly data seasonally adjusted
1992
Item

1 Exports of domestic and foreign
merchandise, (F.A.S. value),
excluding grant-aid shipments
2 General imports (customs value),
including merchandise for
immediate consumption plus entries
into bonded warehouses
3 Trade balance

1989

363,812

1990

393,592

1991

421,730

Mar.

Apr.

May

June

July r

Aug."

37,654

37,085

36,406

35,718

38,165

37,806

35,507

473,211

495,311

487,129

40,948

42,668

43,469

42,859

44,893

45,082

44,512

-109,399

-101,718

-65,399

-3,294

-5,584

-7,063

-7,141

-6,729

-7,276

-9,005

1. The Census basis data differ from merchandise trade data shown in table
3.10, lines 3-5, U.S. International Transactions Summary, because of coverage
and timing. On the export side, the largest difference is the exclusion of military
sales (which are combined with other military transactions and reported separately in table 3.10, line 6). On the import side, this table includes imports of gold,
ship purchases, imports of electricity from Canada, and other transactions;
military payments are excluded and shown separately in table 3.10, line 6. Since

3.12

Feb.

Jan. 1, 1987, Census data have been released forty-five days after the end of the
month; the previous month is revised to reflect late documents. Total exports and
the trade balance reflect adjustments for undocumented exports to Canada.
Components may not sum to totals because of rounding.
SOURCE. FT900, Summary of U.S. Export and Import Merchandise Trade
(U.S. Department of Commerce, Bureau of the Census).

U.S. RESERVE ASSETS
Millions of dollars, end of period
1992
Asset

1 Total
2 Gold stock, including Exchange
Stabilization Fund
3 Special drawing rights ,3
4 Reserve position in International
Monetary Fund
5 Foreign currencies

1989

1990

1991
Apr.

May

June

July

Aug.

Sept. p

74,609

83,316

77,719

74,657

74,712

74,587

77,092

77,370

78,474

78,527

11,059
9,951

11,058
10,989

11,057
11,240

11,057
10,947

11,057
10,930

11,057
11,315

11,059
11,597

11,059
11,702

11,059
12,193

11,059
12,111

9,048
44,551

9,076
52,193

9,488
45,934

8,994
43,659

8,968
43,757

9,175
43,040

9,381
45,055

9,625
44,984

9,762
45,460

9,778
45,579

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, 16 currencies were used; since January 1981,

3.13

Mar.

5 currencies have been used. U.S. SDR holdings and reserve positions in the IMF
also have been valued on this basis since July 1974.
3. Includes allocations of SDRs by the International Monetary Fund on Jan. 1
of the year indicated, as follows: 1970—$867 million; 1971—$717 million; 1972—
$710 million; 1979—-$1,139 million; 1980—$1,152 million; 1981—$1,093 million;
plus net transactions in SDRs.
4. Valued at current market exchange rates.

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS 1
Millions of dollars, end of period
1992
Asset

1989

1990

1991
Mar.

1 Deposits
Held in custody
2 U.S. Treasury securities 2
3 Earmarked gold

May

June

July

Aug.

Sept. p

589

369

968

262

206

217

219

264

297

546

224,911
13,456

278,499
13,387

281,107
13,303

300,277
13,304

303,413
13,304

307,562
13,295

307,337
13,268

316,431
13,261

318,328
13,261

306,971
13,241

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.

Apr.

Treasury securities payable at face value in dollars or foreign currencies,
3. Held for foreign and international accounts and valued at $42.22 per fine
troy ounce; not included in the gold stock of the United States.

Summary Statistics
3.14

FOREIGN BRANCHES OF U.S. BANKS

A55

Balance Sheet Data 1

Millions of dollars, end of period
1992
Account

1989

1990
Feb.

Mar.

Apr.

May

June

July

Aug.

All foreign countries

ASSETS

545,366

556,925

548,901

550,520"

562,212"

549,858"

564,816"

564,466

537,529

544,570

2 Claims on United States
3 Parent bank
4
Other banks in United States
5
Nonbanks
6 Claims on foreigners
7 Other branches of parent bank
8
Banks
9
Public borrowers
10 Nonbank foreigners
11 Other assets

198,835
157,092
17,042
24,701
300,575
113,810
90,703
16,456
79,606
45,956

188,496
148,837
13,2%
26,363
312,449
135,003
72,602
17,555
87,289
55,980

176,301
137,509
12,884
25,908
303,934
111,729
81,970
18,652
91,583
68,666

178,188"
142,181"
10,837
25,170
301,900
108,052
83,904
18,421
91,523
70,432

193,434"
157,129"
11,612
24,693
299,890"
112,190"
79,311
18,328
90,061
68,888

177,992"
143,790"
9,993
24,209
302,916"
111,369
83,562"
18,743
89,242
68,950

182,554"
145,974"
11,640
24,940
314,569"
115,688
85,923"
19,194
93,764
67,693"

183,933
147,626
10,418
25,889
311,990
115,664
84,467
20,162
91,697
68,543

171,911
136,287
9,576
26,048
311,578
112,177
85,448
19,645
94,308
54,040

163,101
128,331
9,181
25,589
321,262
116,674
86,978
20,423
97,187
60,207

12 Total payable in U.S. dollars

382,498

379,479

363,941

365,162"

381,113"

364,748"

370,290"

369,561

349,145

340,848

13 Claims on United States
14 Parent bank
15 Other banks in United States
16 Nonbanks
17 Claims on foreigners
18 Other branches of parent bank
19 Banks
20
Public borrowers
21
Nonbank foreigners
22 Other assets

191,184
152,294
16,386
22,504
169,690
82,949
48,396
10,961
27,384
21,624

180,174
142,962
12,513
24,699
174,451
95,298
36,440
12,298
30,415
24,854

169,662
133,476
12,025
24,161
167,010
78,114
41,635
13,685
33,576
27,269

172,539"
138,916"
10,006
23,617
163,623
75,087
42,488
13,136
32,912
29,000

187,744"
153,859"
10,956
22,929
163,877
78,067
39,671
13,217
32,922
29,492

173,337"
141,264"
9,255
22,818
162,%7"
75,342
41,250"
12,994
33,381
28,444

177,311"
142,874"
11,012
23,425
167,054"
77,165
41,845"
12,994
35,050
25,925"

177,638
144,287
10,016
23,335
168,586
76,912
43,095
13,723
34,856
23,337

166,507
133,120
9,135
24,252
162,843
72,250
41,718
13,320
35,555
19,795

157,471
124,805
8,876
23,790
161,306
70,693
40,156
13,661
36,7%
22,071

1 Total payable in any currency

United Kingdom
23 Total payable in any currency

161,947

184,818

175,599

172,479

169,139"

170,775

174,925"

171,027

159,317

165,832

24 Claims on United States
25 Parent bank
26
Other banks in United States
27
Nonbanks
28 Claims on foreigners
29 Other branches of parent bank
30
Banks
31
Public borrowers
32
Nonbank foreigners
33 Other assets

39,212
35,847
1,058
2,307
107,657
37,728
36,159
3,293
30,477
15,078

45,560
42,413
792
2,355
115,536
46,367
31,604
3,860
33,705
23,722

35,257
31,931
1,267
2,059
109,692
35,735
36,394
3,306
34,257
30,650

34,655
31,302
1,211
2,142
107,645
33,924
37,349
3,144
33,228
30,179

37,015
34,048
1,158
1,809
101,491"
33,463"
33,499
3,060
31,469
30,633

35,451
32,379
1,228
1,844
104,467
34,061
36,126
3,108
31,172
30,857

37,369
34,433
970
1,966
107,795
35,331
37,548
3,165
31,751
29,761"

38,0%
35,343
756
1,997
104,270
36,952
34,783
2,995
29,540
28,661

38,763
35,542
1,065
2,156
105,990
35,359
36,777
3,128
30,726
14,564

37,511
34,593
744
2,174
108,895
37,732
37,711
3,046
30,406
19,426

34 Total payable in U.S. dollars

103,208

116,762

105,974

102,341

102,283

102,285

104,392"

102,737

98,828

99,610

36,404
34,329
843
1,232
59,062
29,872
16,579
2,371
10,240
7,742

41,259
39,609
334
1,316
63,701
37,142
13,135
3,143
10,281
11,802

32,418
30,370
822
1,226
58,791
28,667
15,219
2,853
12,052
14,765

31,788
29,724
678
1,386
55,985
26,747
15,438
2,657
11,143
14,568

34,464
32,645
725
1,094
52,306
25,933
13,154
2,623
10,5%
15,513

33,298
31,022
853
1,423
54,129
25,922
14,829
2,545
10,833
14,858

35,185
33,059
677
1,449
56,615
27,482
15,348
2,463
11,322
12,592"

35,376
33,751
627
998
56,888
28,541
15,380
2,474
10,493
10,473

36,133
33,936
785
1,412
56,264
26,751
15,930
2,653
10,930
6,431

34,948
32,786
625
1,537
55,812
26,825
15,565
2,353
11,069
8,850

35 Claims on United States
36
Parent bank
37
Other banks in United States
Nonbanks
38
39 Claims on foreigners
40
Other branches of parent bank
41
Banks
42
Public borrowers
43
Nonbank foreigners
44 Other assets

Bahamas and Cayman Islands
45 Total payable in any currency

176,006

162,316

168,326

169,134"

175,893"

162,871"

167,139"

168,963

153,691

144,089

46 Claims on United States
47
Parent bank
Other banks in United States
48
49
Nonbanks
50 Claims on foreigners
51
Other branches of parent bank
52
Banks
53
Public borrowers
54
Nonbank foreigners
55 Other assets

124,205
87,882
15,071
21,252
44,168
11,309
22,611
5,217
5,031
7,633

112,989
77,873
11,869
23,247
41,356
13,416
16,310
5,807
5,823
7,971

115,244
81,520
10,907
22,817
45,229
11,098
20,174
7,161
6,7%
7,853

115,562"
84,661"
8,%9
21,932
44,033
11,528
19,311
6,545
6,649
9,539

122,762"
91,549"
9,809
21,404
44,285
11,278
19,645
6,599
6,763
8,846

112,080"
82,823"
8,115
21,142
41,929"
10,156
18,406"
6,332
7,035
8,862

115,633"
84,041"
9,729
21,863
42,828"
9,311
19,658"
6,459
7,400
8,678"

114,467
83,316
9,118
22,033
45,600
9,392
21,548
7,084
7,576
8,8%

102,850
72,107
8,045
22,698
41,886
8,678
18,837
6,728
7,643
8,955

94,595
64,454
8,060
22,081
41,315
8,5%
17,570
7,125
8,024
8,179

56 Total payable in U.S. dollars

170,780

158,390

163,771

164,710"

171,320"

158,196"

162,066"

163,313

147,905

138,348

1. Since June 1984, reported claims held by foreign branches have been
reduced by an increase in the reporting threshold for "shell" branches from $50

million to $150 million equivalent in total assets, the threshold now applicable to
all reporting branches.

A56
3.14

International Statistics • December 1992
FOREIGN BRANCHES OF U.S. B A N K S

Balance Sheet Data 1 —Continued
1992

1989

1990

1991
Feb.

LIABILITIES

Mar.

Apr.

May

June

July

Aug.

All foreign countries

57 Total payable in any currency

545,366

556,925

548,901

550,520r

562,212'

549,858'

564,816'

564,466

537,529

544,570

58 Negotiable certificates of deposit (CDs)
59 To United States
60
Parent bank
61
Other banks in United States
62
Nonbanks

23,500
197,239
138,412
11,704
47,123

18,060
189,412
138,748
7,463
43,201

16,284
198,121
136,431
13,260
48,430

15,988
191,047r
123,775
12,674
54,598r

14,498
210,357r
142,551
14,137

12,757'
196,635'
138,273'
15,075
43,287'

14,010'
198,897'
136,195'
13,944
48,758'

13,040
204,929
143,474
14,009
47,446

12,758
192,087
133,051
11,833
47,203

14,246
179,138
126,747
10,898
41,493

63 To foreigners
64
Other branches of parent bank . . .
65
Banks
66
Official institutions
67
Nonbank foreigners
68 Other liabilities

296,850
119,591
76,452
16,750
84,057
27,777

311,668
139,113
58,986
14,791
98,778
37,785

288,254
112,033
63,097
15,596
97,528
46,242

299,046
108,744
71,346
16,972
101,984
44,439

292,523r
113,314
62,924r
15,697
100,588
44,834

2%,580
111,968
65,055
16,083
103,474
43,886

308,394
115,235
68,391
19,465
105,303
43,515'

302,376
116,878
65,865
16,399
103,234
44,121

301,943
114,226
65,419
18,058
104,240
30,741

314,702
120,292
68,366
18,241
107,803
36,484

69 Total payable in U.S. dollars

396,613

383,522

370,561

363,744r

380,384r

365,920'

373,679'

374,506

354,666

346,278

70 Negotiable CDs
71 To United States
72
Parent bank
73
Other banks in United States
74
Nonbanks

19,619
187,286
132,563
10,519
44,204

14,094
175,654
130,510
6,052
39,092

11.909
185,286
129,669
11,707
43.910

11,515
179,340r
117,272
11,532
50,536r

10,278
198,349'
135,761
13,036
49,552r

8,470'
185,533'
131,844'
14,217
39,472'

9,643'
187,438'
130,007'
12,840
44,591'

8,475
192,792
136,273
13,251
43,268

8,531
179,395
125,647
10,816
42,932

8,755
166,309
119,302
9,835
37,172

75 To foreigners
76
Other branches of parent bank . . .
77
Banks
78
Official institutions
79
Nonbank foreigners
80 Other liabilities

176,460
87,636
30,537
9,873
48,414
13,248

179,002
98,128
20,251
7,921
52,702
14,772

158,993
76,601
24,156
10,304
47,932
14,373

156,744
74,466
23,665
10,652
47,961
16,145

156,216
77,492
21,910
9,625
47,189
15,541

157,139
75,780
22,569
10,413
48,377
14,778

162,011
77,000
24,063
13,102
47,846
14,587'

158,532
77,608
23,470
10,119
47,335
14,707

155,352
73,699
22,955
11,543
47,155
11,388

157,522
74,037
22,973
10,713
49,799
13,692

United Kingdom
81 Total payable in any currency ..

161,947

184,818

175,599

172,479

169,139'

170,775

174,925'

171,027

159,317

165,832

82 Negotiable CDs
83 To United States
84
Parent bank
85
Other banks in United States
86
Nonbanks

20,056
36,036
29,726
1,256
5,054

14,256
39,928
31,806
1,505
6,617

11,333
37,720
29,834
1,438
6,448

10,581
30,631
23,464
1,891
5,276

9,677
35,364
27,937
1,201
6,226

7,324
36,610
29,317
2,011
5,282

8,458
33,236
25,637
1,638
5,961

7,612
36,660
28,201
1,326
7,133

7,731
37,164
29,104
1,315
6,745

8,083
35,527
27,695
1,632
6,200

87 To foreigners
88
Other branches of parent bank
89
Banks
90
Official institutions
91
Nonbank foreigners
92 Other liabilities

92,307
27,397
29,780
8,551
26,579
13,548

108,531
36,709
25,126
8,361
38,335
22,103

98,167
30,054
25,541
9,670
32,902
28,379

104,432
27,864
30,686
10,685
35,197
26,835

96,566'
27,937
25,881'
9,277
33,471
27,532

99,804
28,239
27,046
9,539
34,980
27,037

106,603
30,429
27,549
12,732
35,893
26,628'

100,340
31,464
25,315
10,167
33,394
26,415

100,738
30,205
25,155
11,091
34,287
13,684

104,892
31,234
26,435
10,699
36,524
17,330

93 Total payable in U.S. dollars . . .

108,178

116,094

108,755

100,882

101,602

100,799

102,783'

101,901

97,565

99,092

94 Negotiable CDs
95 To United States
96
Parent bank
97
Other banks in United States
98
Nonbanks

18,143
33,056
28,812
1,065
3,179

12,710
34,697
29,955
1,156
3,586

10,076
33,003
28,260
1,177
3,566

9,061
26,261
21,788
1,639
2,834

8,562
30,993
26,272
1,032
3,689

6,136
32,510
27,904
1,796
2,810

6,967
28,936
24,435
1,184
3,317

5,750
32,300
26,720
1,084
4,496

6,139
32,178
27,351
857
3,970

5,890
30,357
25,873
1,088
3,396

99 To foreigners
100
Other branches of parent bank
101
Banks
102 Official institutions
103 Nonbank foreigners
104 Other liabilities

50,517
18,384
12,244
5,454
14,435
6,462

60,014
25,957
9,488
4,692
19,877
8,673

56,626
20,800
11,069
7,156
17,601
9,050

55,216
18,863
11,188
7,698
17,467
10,344

52,059
18,792
9,861
6,628
16,778
9,988

52,625
18,136
9,435
6,998
18,056
9,528

57,489
19,497
10,799
9,915
17,278
9,391'

54,262
20,918
9,848
7,049
16,447
9,589

52,894
18,634
9,399
7,808
17,053
6,354

54,381
18,983
9,289
6,956
19,153
8,464

Bahamas and Cayman Islands
105 Total payable in any currency . . .

176,006

162,316

168,326

169,134'

175,893'

162,871'

167,139'

168,963

153,691

144,089

106 Negotiable CDs
107 To United States
108 Parent bank
109 Other banks in United States .
110
Nonbanks

678
124,859
75,188
8,883
40,788

646
114,738
74,941
4,526
35,271

1,173
129,872
79,394
10,231
40,247

1,709
131,171'
73,744
9,733
47,694'

932
139,196'
82,050
11,696
45,450'

1,546'
124,605'
76,086'
12,060
36,459'

1,646'
128,891'
76,779'
11,085
41,027'

1,894
130,815
80,998
11,708
38,109

1,330
115,589
67,356
9,641
38,592

1,814
105,816
64,039
8,491
33,286

111 To foreigners
112
Other branches of parent bank
113 Banks
114 Official institutions
115 Nonbank foreigners
116 Other liabilities

47,382
23,414
8,823
1,097
14,048
3,087

44,444
24,715
5,588
622
13,519
2,488

35,200
17,388
5,662
572
11,578
2,081

34,425
17,050
5,054
490
11,831
1,829

34,002
17,100
5,139
536
11,227
1,763

34,899
16,933
6,009
736
11,221
1,821

35,021
16,842
6,346
731
11,102
1,581

34,637
16,799
6,075
770
10,993
1,617

35,136
17,668
6,390
862
10,216
1,636

34,878
17,315
6,242
935
10,386
1,581

171,250

157,132

163,603

164,403'

171,255'

158,247'

162,280'

163,951

148,744

138,864

117 Total payable in U.S. dollars

Summary Statistics
3.15

A57

SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period
1992
Item

1 Total1
2
3
4
5
6
7
8
9
10

By type
Liabilities reported by banks in the United States
U.S. Treasury bills and certificates3
U.S. Treasury bonds and notes
Marketable
Nonmarketable
U.S. securities other than U.S. Treasury securities
By area
Western Europe
Canada
Latin America and Caribbean
Asia

12 Other countries 6

1990

1991
Mar. r

Apr/

May r

June r

July r

Aug.P

344,529

360,546r

375,306

381,499

385,572

394,709

401,806

403,723

405,552

39,880
79,424

38,412r
92,692

42,633
94,731

43,874
102,143

44,583
102,968

47,471
111,224

51,432
109,278

48,860
114,781

51,389
113,307

202,487
4,491
18,247

203,677
4,858
20,907

212,178
4,922
20,842

209,042
4,956
21,484

210,754
4,989
22,278

208,069
5,021
22,924

213,363
4,625
23,108

212,290
4,582
23,210

212,977
4,476
23,403

167,191
8,671
21,184
138,096
1,434
7,955

168,365r
7,460
33,554
139,465r
2,092
9,608

173,255
8,251
35,663
147,756
2,408
7,971

178,041
7,016
37,961
148,614
2,011
7,854

179,239
7,855
39,130
148,573
2,392
8,381

185,416
9,347
39,732
149,062
2,792
8,358

191,224
9,302
39,433
150,215
3,265
8,365

194,037
9,876
39,121
150,055
3,218
7,414

194,972
9,990
38,310
151,798
2,860
7,620

1. Includes the Bank for International Settlements.
2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, negotiable time certificates of deposit, and borrowings under repurchase agreements.
3. Includes nonmarketable certificates of indebtedness (including those payable
in foreign currencies through 1974) and Treasury bills issued to official institutions
of foreign countries.
4. Excludes notes issued to foreign official nonreserve agencies. Includes

3.16

Feb. r

bonds and notes payable in foreign currencies; zero coupon bonds are included at
current value.
5. Debt securities of U.S. government corporations and federally sponsored
agencies, and U.S. corporate stocks and bonds.
6. Includes countries in Oceania and Eastern Europe.
SOURCE. Based on Treasury Department data and on data reported to the
Treasury Department by banks (including Federal Reserve Banks) and securities
dealers in the United States and on the 1984 benchmark survey of foreign portfolio
investment in the United States.

LIABILITIES TO, A N D CLAIMS ON, FOREIGNERS Reported by Banks in the United States 1
Payable in Foreign Currencies
Millions of dollars, end of period
1992

1991
Item

1988

74,980
68,983
25,100
43,884
364
1. Data on claims exclude foreign currencies held by U.S. monetary
authorities.

1989

67,835
65,127
20,491
44,636
3,507

1990

70,477
66,796
29,672
37,124
6,309

Sept.

Dec.

Mar.

June

63,291
63,724
29,812
33,912
2,348

75,129
73,318
26,192
47,126
3,274

67,874
60,844
23,269
37,575
2,862

70,764
58,968
23,462
35,506
4,428

2. Assets owned by customers of the reporting bank located in the United
States that represent claims on foreigners held by reporting banks for the accounts
of the domestic customers.

A58
3.17

International Statistics • December 1992
LIABILITIES TO FOREIGNERS
Payable in U.S. dollars

Reported by Banks in the United States 1

Millions of dollars, end of period
1992
Item

1989

1990

1991
Feb.

Mar.

Apr.

May

June

July

Aug. p

HOLDER AND TYPE OF LIABILITY

1 Total, all foreigners

736,878

759,634

756,510

756,130

774,028

769,486

785,162

786,664

777,121

768,489

2 Banks' own liabilities
3
Demand deposits
4
Time deposits
Other.
5
6
Own foreign offices 4

577,498
22,032
168,780
67,823
318,864

577,229
21,723
168,017
65,822
321,667

575,232
20,321
159,649
66,185
329,077

575,284
18,905
145,973
76,448
333,958

583,041
19,287
147,994
76,074
339,686

578,651
19,043
153,383
76,149
330,076

583,786
19,606
150,373
82,654
331,153

587,321
20,931
152,024
85,132
329,234

571,046
19,739
148,670
82,078
320,559

563,220
21,698
144,624
85,294
311,604

159,380
91,100

182,405
%,7%

181,278
110,734

180,846
112,172

190,987
119,882

190,835
120,924

201,376
130,392

199,343
128,672

206,075
135,516

205,269
135,744

19,526
48,754

17,578
68,031

18,664
51,880

16,894
51,780

18,429
52,676

17,797
52,114

18,995
51,989

18,020
52,651

19,402
51,157

18,541
50,984

4,894
3,279
96
927
2,255

5,918
4,540
36
1,050
3,455

8,981
6,827
43
2,714
4,070

11,315
9,579
35
2,216
7,328

11,219
9,317
144
1,686
7,487

10,291
8,408
29
1,819
6,560

11,313
9,358
46
2,520
6,792

12,511
10,288
40
3,788
6,460

10,942
7,813
24
3,014
4,775

12,584
9,477
21
2,630
6,826

1,616
197

1,378
364

2,154
1,730

1,736
1,317

1,902
1,225

1,883
1,442

1,955
1,461

2,223
1,687

3,129
2,602

3,107
2,654

1,417
2

1,014
0

424
0

417
2

637
40

441
0

494
0

534
2

527
0

453
0

113,481
31,108
2,1%
10,495
18,417

119,303
34,910
1,924
14,359
18,628

131,104
34,427
2,642
16,504
15,281

137,364
38,749
1,297
14,707
22,745

146,017
39,774
1,342
17,650
20,782

147,551
40.630
1,360
18.631
20,639

158,695
43,567
1,320
19,066
23,181

160,710
47,544
1,632
17,738
28,174

163,641
45,315
1,374
18,357
25,584

164,6%
47,837
1,679
18,573
27,585

82,373
76,985

84,393
79,424

%,677
92,692

98,615
94,731

106,243
102,143

106,921
102,968

115,128
111,224

113,166
109,278

118,326
114,781

116,859
113,307

5,028
361

4,766
203

3,879
106

3,697
187

4,019
81

3,812
141

3,717
187

3,602
286

3,459
86

3,466
86

515,275
454,273
135,409
10,279
90,557
34,573
318,864

540,805
458,470
136,802
10,053
88,541
38,208
321,667

522,424
459,177
130,100
8,632
82,857
38,611
329,077

517,825
454,078
120,120
8,369
74,564
37,187
333,958

527,683
461,497
121,811
8,543
74,266
39,002
339,686

522,084
456,309
126,233
8,753
79,632
37,848
330,076

527,455
460,919
129,766
9,229
77,098
43,439
331,153

526,461
459,699
130,465
9,704
80,009
40,752
329,234

514,721
448,109
127,550
8,440
77,407
41,703
320,559

502,190
435,109
123,505
9,848
73,202
40,455
311,604

61,002
9,367

82,335
10,669

63,247
7,471

63,747
7,733

66,186
8,344

65,775
8,410

66,536
8,946

66,762
8,927

66,612
9,444

67,081
10,557

5,124
46,510

5,341
66,325

5,694
50,082

5,999
50,015

6,733
51,109

7,147
50,218

7,044
50,546

6,647
51,188

7,129
50,039

6,920
49,604

103,228
88,839
9,460
66,801
12,577

93,608
79,309
9,711
64,067
5,530

94,001
74,801
9,004
57,574
8,223

89,626
72,878
9,204
54,486
9,188

89,109
72,453
9,258
54,392
8,803

89,560
73,304
8,901
53,301
11,102

87,699
69,942
9,011
51,689
9,242

86,982
69,790
9,555
50,489
9,746

87,817
69,809
9,901
49,892
10,016

89,019
70,797
10,150
50,219
10,428

14,389
4,551

14,299
6,339

19,200
8,841

16,748
8,391

16,656
8,170

16,256
8,104

17,757
8,761

17,192
8,780

18,008
8,689

18,222
9,226

7,958
1,880

6,457
1,503

8,667
1,692

6,781
1,576

7,040
1,446

6,397
1,755

7,740
1,256

7,237
1,175

8,287
1,032

7,702
1,294

7,203

7,073

7,456

8,049

8,110

7,624

7,642

7,351

6,976

7,279

7 Banks' custodial liabilities5
8
U.S. Treasury bills and certificates 6
9
Other negotiable and readily transferable
instruments
10 Other
11 Nonmonetary international and regional
organizations
12 Banks' own liabilities
13
Demand deposits
14
Time deposits
15
Other
16
17
18
19

Banks' custodial liabilities5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments
Other
9

20 Official institutions
21
Banks' own liabilities
22
Demand deposits
23
Time deposits
24
Other.
25
26
27
28

Banks' custodial liabilities5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments
Other
10

29 Banks
30
Banks' own liabilities
31
Unaffiliated foreign banks
32
Demand deposits
33
Time deposits
34
Other.
35
Own foreign offices 4
36
37
38
39

Banks' custodial liabilities5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments
Other

40 Other foreigners
41
Banks' own liabilities
42
Demand deposits
43
Time deposits
44
Other
45
46
47
48

Banks' custodial liabilities5
U.S. Treasury bills and certificates 6
Other negotiable and readily transferable
instruments
Other

49 MEMO: Negotiable time certificates of deposit in
custody for foreigners

1. Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. Excludes negotiable time certificates of deposit, which are included in
"Other negotiable and readily transferable instruments."
3. Includes borrowing under repurchase agreements.
4. For U.S. banks, includes amounts due to own foreign branches and foreign
subsidiaries consolidated in Consolidated Report of Condition filed with bank
regulatory agencies. For agencies, branches, and majority-owned subsidiaries of
foreign banks, consists principally of amounts due to head office or parent foreign
bank, and foreign branches, agencies, or wholly owned subsidiaries of head office
or parent foreign bank.
5. Financial claims on residents of the United States, other than long-term
securities, held by or through reporting banks.

6. Includes nonmarketable certificates of indebtedness and Treasury bills
issued to official institutions of foreign countries.
7. Principally bankers acceptances, commercial paper, and negotiable time
certificates of deposit.
8. Principally the International Bank for Reconstruction and Development, the
Inter-American Development Bank, and the Asian Development Bank. Excludes
"holdings of dollars" of the International Monetary Fund.
9. Foreign central banks, foreign central governments, and the Bank for
International Settlements.
10. Excludes central banks, which are included in "Official institutions."

Nonbank-Reported

Data

3.17—Continued
1992
Item

1989

1990

1991
Feb.

Mar.

Apr.

May

June

July

Aug.?

AREA

1 Total, all foreigners

736,878

759,634

756,510

756,130

774,028

769,486

785,162

786,664

777,121

768,489

2 Foreign countries

731,984

753,716

747,529

744,815

762,809

759,195

773,849

774,153

766,179

755,905

237,501
1,233
10,648
1,415
570
26,903
7,578
1,028
16,169
6,613
2,401
2,418
4,364
1,491
34,496
1,818
102,362
1,474
13,563
350
608

254,452
1,229
12,382
1,399
602
30,946
7,485
934
17,735
5,350
2,357
2,958
7,544
1,837
36,690
1,169
109,555
928
11,689
119
1,545

249,067
1,193
13,337
937
1,341
31,808
8,619
765
13,541
7,161
1,866
2,184
11,391
2,222
37,238
1,598
100,262
622
9,274
241
3,467

246,284
1,030
15,156
997
623
26,456
9,572
895
9,554
7,322
1,398
2,540
10,653
2,544
34,710
1,677
102,166
529
14,069
238
4,155

256,024
1,230
16,269
892
1,014
26,036
9,556
1,058
9,915
9,250
1,286
2,071
13,504
2,106
37,104
1,600
103,319
504
15,452
168
3,690

262,246
1,219
15,818
961
1,005
27,667
9,272
1,134
10,035
9,352
899
2,217
14,435
2,888
33,604
1,362
108,023
569
17,208
287
4,291

273,436
1,337
17,346
1,331
764
27,005
8,319
1,254
10,055
9,572
1,429
2,391
14,316
2,007
36,663
1,691
112,828
524
19,961
436
4,207

279,521
1,490
16,740
1,263
843
30,132
8,018
1,374
10,362
9,456
1,359
2,530
15,844
4,125
35,987
1,580
111,712
555
21,609
440
4,102

283,109
1,445
16,797
1,348
720
28,900
8,967
998
10,164
9,653
1,421
2,659
15,313
3,710
39,568
1,789
111,878
547
22,743
609
3,880

288,888
1,582
18,294
1,329
976
29,456
10,982
934
10,992
10,422
1,341
2,664
14,904
4,162
40,599
2,021
111,521
554
21,492
425
4,238

3 Europe
4
Austria
5 Belgium and Luxembourg
6
Denmark
7
Finland
8
France
9
Germany
10 Greece
11
Italy
12 Netherlands
13 Norway
14 Portugal
15
Spain
16 Sweden
17
Switzerland
18 Turkey
19
United Kingdom
20
Yugoslavia
21
Others in Western Europe
?2 U.S.S.R
23
Other Eastern Europe

18,865

20,349

21,605

20,482

20,931

20,500

22,556

20,358

22,350

20,410

25 Latin America and Caribbean
26 Argentina
Bahamas
27
78
Bermuda
79
Brazil
30
British West Indies
31
Chile
Colombia
32
33
Cuba
Ecuador
34
35
Guatemala
36
Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
Other
43

311,028
7,304
99,341
2,884
6,351
138,309
3,212
4,653
10
1,391
1,312
209
15,423
6,310
4,362
1,984
2,284
9,482
6,206

332,997
7,365
107,386
2,822
5,834
147,321
3,145
4,492
11
1,379
1,541
257
16,650
7,357
4,574
1,294
2,520
12,271
6,779

346,025
7,758
100,597
3,178
5,942
163,872
3,284
4,662
2
1,232
1,594
231
19,957
5,592
4,695
1,249
2,111
13,181
6,888

348,826
7,878
99,756
3,478
5,760
167,589
3,408
4,713
5
1,217
1,549
227
20,319
6,231
4,404
1,221
2,158
12,236
6,677

351,067
8,310
102,138
3,364
5,745
166,802
3,623
4,972
11
1,168
1,539
271
21,540
5,205
4,158
1,187
2,054
12,190
6,790

341,925
8,654
98,530
3,368
5,752
160,991
3,506
4,915
9
1,128
1,489
234
21,362
5,986
4,216
1,094
2,171
11,874
6,646

339,862
9,381
100,025
3,009
5,399
158,515
3,792
4,902
6
1,150
1,438
242
20,842
5,347
4,100
1,098
2,118
11,705
6,793

339,517
9,705
101,702
3,598
5,612
156,761
3,702
4,721
3
1,137
1,447
309
19,491
5,313
4,286
1,156
2,182
11,448
6,944

325,885
10,043
92,536
4,848
5,522
151,857
3,611
4,682
12
1,074
1,420
271
19,642
5,085
4,457
1,131
2,175
11,080
6,439

311,451
9,399
82,561
4,782
5,484
148,455
3,394
4,711
9
1,214
1,432
267
20,055
4,825
4,259
1,123
2,194
10,802
6,485

156,201

136,844

120,440

120,051

125,678

125,187

128,083

124,549

124,894

125,214

1,773
19,588
12,416
780
1,281
1,243
81,184
3,215
1,766
2,093
13,370
17,491

2,421
11,246
12,754
1,233
1,238
2,767
67,076
2,287
1,585
1,443
15,829
16,965

2,626
11,491
14,269
2,418
1,463
2,015
47,047
2,587
2,449
2,252
15,752
16,071

2,608
10,586
14,863
2,256
1,276
2,137
44,783
2,800
2,462
3,224
18,410
14,646

2,678
10,593
14,610
2,028
1,516
2,536
49,528
2,886
2,638
3,330
19,311
14,024

2,753
10,471
16,125
1,792
1,109
3,791
47,337
3,016
2,266
3,147
18,614
14,766

2,364
10,265
17,885
1,671
1,133
3,432
46,183
3,132
1,630
6,990
18,297
15,101

2,378
9,985
16,980
1,715
1,387
2,976
44,265
2,839
1,813
4,586
18,983
16,642

2,292
10,277
16,840
1,567
1,256
2,850
45,815
3,288
1,994
4,017
19,828
14,870

2,508
10,362
17,775
1,480
958
2,620
45,682
3,644
1,920
4,624
18,938
14,703

57 Africa
1
58
Egypt
59 Morocco
60
South Africa
61
Zaire
62
Oil-exporting countries
Other
63

3,824
686
78
206
86
1,121
1,648

4,630
1,425
104
228
53
1,109
1,710

4,825
1,621
79
228
31
1,082
1,784

4,919
1,632
82
199
30
1,214
1,762

4,886
1,337
90
191
35
1,428
1,805

4,864
1,610
88
188
27
1,277
1,674

5,430
2,001
77
399
26
1,257
1,670

5,810
2,540
87
248
29
1,232
1,674

5,516
2,324
85
269
17
1,211
1,610

5,314
2,143
93
275
24
1,088
1,691

64 Other
65
Australia
Other
66

4,564
3,867
697

4,444
3,807
637

5,567
4,464
1,103

4,253
3,065
1,188

4,223
3,100
1,123

4,473
3,575
898

4,482
3,211
1,271

4,398
3,192
1,206

4,425
3,066
1,359

4,628
3,322
1,306

67 Nonmonetary international and regional
organizations
International
Latin American regional
Other regional

4,894
3,947
684
263

5,918
4,390
1,048
479

8,981
6,485
1,181
1,315

11,315
8,992
1,500
823

11,219
8,813
1,785
621

10,291
7,543
1,788
960

11,313
8,400
1,903
1,010

12,511
9,536
2,356
619

10,942
7,023
2,699
1,220

12,584
9,361
2,319
904

24 Canada

45
46
47
48
49
50

51
5?

53
54
55
56

China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries
Other

68
69
70

11. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23.
12. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.
13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
14. Comprises Algeria, Gabon, Libya, and Nigeria.

15. Principally the Internationa] Bank for Reconstruction and Development.
Excludes "holdings of dollars" of the International Monetary Fund.
16. Principally the Inter-American Development Bank.
17. Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in "Other
Western Europe."

A59

A60
3.18

International Statistics • December 1992
BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1992
Area and country

1989

1990

1991
Feb.

Mar.

Apr.

May

June

July

1 Total, all foreigners

534,492

511,543

514,318

508,549

512,876

506,854

504,682

511,926

503,054

2 Foreign countries

530,630

506,750

508,035

502,099

506,503

502,065

499,881

505,932

499,633

119,025
415
6,478
582
1,027
16,146
2,865
788
6,662
1,904
609
376
1,930
1,773
6,141
1,071
65,527
1,329
1,302
1,179
921

113,093
362
5,473
497
1,047
14,468
3,343
727
6,052
1,761
782
292
2,668
2,094
4,202
1,405
65,151
1,142
597
530
499

114,355
327
6,158
686
1,912
15,112
3,371
553
8,242
2,546
669
344
1,881
2,335
4,540
1,063
60,435
825
789
1,970
597

110,871
447
7,451
709
1,586
13,720
3,406
562
7,346
2,461
665
350
2,155
2,928
3,921
1,076
57,082
810
1,116
2,491
589

112,774
375
7,005
737
1,321
14,040
3,788
537
8,584
2,268
687
368
3,355
2,636
3,375
943
57,920
807
879
2,659
490

123,696
444
6,967
871
1,475
13,685
3,117
567
9,835
2,688
567
361
3,726
3,062
4,095
927
66,365
781
821
2,824
518

120,739
456
6,487
994
1,536
14,031
4,044
492
10,282
2,642
731
398
2,687
3,007
4,144
1,130
62,509
735
894
2,948
592

126,212
433
6,166
1,436
1,521
14,440
3,311
506
10,619
2,267
722
367
3,880
6,745
3,973
976
63,932
697
771
3,035
415

124,478
647
6,475
951
1,274
14,154
3,863
590
10,507
2,041
731
382
3,730
5,982
3,683
1,173
62,815
693
1,227
3,153
407

3 Europe
4
Austria
5
Belgium and Luxembourg
Denmark
6
7
Finland
8
France
Germany
9
10 Greece
11
Italy
12 Netherlands
13
Norway
14
Portugal
15
Spain
16 Sweden
17
Switzerland
18 Turkey
19 United Kingdom
20
Yugoslavia
21
Others in Western Europe 2
22
U.S.S.R
23
Other Eastern Europe
24 Canada

15,451

16,091

15,094

15,874

15,468

15,121

16,460

16,386

17,443

25 Latin America and Caribbean
26
Argentina
27
Bahamas
28
Bermuda
29
Brazil
30
British West Indies
31
Chile
32
Colombia
33
Cuba
34
Ecuador
35
Guatemala
36 Jamaica
37
Mexico
38
Netherlands Antilles
39
Panama
40
Peru
41
Uruguay
42
Venezuela
43
Other

230,438
9,270
77,921
1,315
23,749
68,749
4,353
2,784
1
1,688
197
297
23,376
1,921
1,740
771
929
9,652
1,726

231,506
6,967
76,525
4,056
17,995
88,565
3,271
2,587
0
1,387
191
238
14,851
7,998
1,471
663
786
2,571
1,384

246,064
5,869
87.173
2,191
11,845
107,866
2,805
2,425
0
1,053
228
158
16,567
1,207
1,560
739
599
2,516
1,263

245,236
5,834
84,183
4,444
12,749
106,758
2,746
2,330
0
1,034
230
158
17,326
979
1,659
669
604
2,240
1,293

251,703
5,788
88,866
3,649
12,375
109,453
2,779
2,339
0
993
233
152
17,315
1,181
1,704
644
604
2,188
1,440

239,307
5,949
82,118
6,377
12,321
100,777
2,922
2,322
2
986
216
150
17,367
1,265
1,834
715
685
2,010
1,291

238,502
5,956
84,668
4,283
12,183
100,352
3,055
2,328
0
939
171
143
16,900
904
1,926
666
717
2,046
1,265

243,517
5,396
83,141
4,951
12,020
106,661
3,227
2,304
0
936
173
150
16,455
920
2,199
719
765
2,215
1,285

234,112
5,614
74,816
6,099
12,186
104,181
3,118
2,398
0
950
167
151
16,331
941
2,025
708
749
2,360
1,318

44 Asia
China
People's Republic of China
Republic of China (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea (South)
Philippines
Thailand
Middle Eastern oil-exporting countries 4
Other

157,474

138,722

125,288

122,662

119,631

116,770

117,259

112,406

115,961

634
2,776
11,128
621
651
813
111,300
5,323
1,344
1,140
10,149
11,594

620
1,952
10,648
655
933
774
90,699
5,766
1,247
1,573
10,749
13,106

747
2,087
9,617
441
952
860
84,833
6,048
1,910
1,713
8,284
7,796

699
1,881
9,721
418
1,061
943
80,267
6,295
1,789
1,621
10,981
6,986

719
1,969
10,466
518
1,096
901
74,615
6,423
1,831
1,599
12,291
7,203

660
2,008
8,520
504
1,055
837
72,116
6,218
1,690
1,618
14,562
6,982

729
1,808
9,127
475
1,132
874
74,430
5,796
1,618
1,703
13,453
6,114

685
1,778
8,272
458
1,085
888
69,269
5,927
1,648
1,756
14,505
6,135

642
1,965
9,103
512
1,090
901
71,159
6,063
1,635
1,705
14,323
6,863

57 Africa
58
Egypt
59
Morocco
60
South Africa
61
Zaire
<
62
Oil-exporting countries
63
Other

5,890
502
559
1,628
16
1,648
1,537

5,445
380
513
1,525
16
1,486
1,525

4,928
294
575
1,235
4
1,298
1,522

4,741
223
550
1,189
4
1,112
1,663

4,758
271
547
1,176
4
1,164
1,596

4,818
242
547
1,239
4
1,160
1,626

4,582
218
529
1,128
4
1,162
1,541

4,548
256
527
1,070
4
1,159
1,532

4,452
261
496
1,047
4
1,157
1,487

64 Other
65
Australia
66
Other

2,354
1,781
573

1,892
1,413
479

2,306
1,665
641

2,715
1,478
1,237

2,169
1,388
781

2,353
1,424
929

2,339
1,197
1,142

2,863
1,725
1,138

3,187
1,937
1,250

67 Nonmonetary international and regional
organizations 6

3,862

4,793

6,283

6,450

6,373

4,789

4,801

5,994

3,421

45
46
47
48
49
50
51
52
53
54
55
56

1. Reporting banks include all types of depository institutions, as well as some
brokers and dealers.
2. Includes the Bank for International Settlements and Eastern European
countries not listed in line 23.
3. Comprises Bulgaria, Czechoslovakia, Hungary, Poland, and Romania.

4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
5. Comprises Algeria, Gabon, Libya, and Nigeria.
6. Excludes the Bank for International Settlements, which is included in
"Other Western Europe."

Nonbank-Reported
3.19

Data

BANKS' OWN A N D DOMESTIC CUSTOMERS' CLAIMS ON FOREIGNERS Reported by Banks in the
United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1992
Claim

1989

1990

1991
Feb/

Mar/

Apr/

May r

506,854
34,585
302,551
120,195
70,703
49,492
49,523

504,682
34,637
308,342
116,823
70,205
46,618
44,880

1 Total

593,087

579,044

579,622

2 Banks' claims
3
Foreign public borrowers
4
Own foreign offices
Unaffiliated foreign banks
5
6
Deposits
7
Other
All other foreigners
8

534,492
60,511
296,011
134,885
78,185
56,700
43,085

511,543
41,900
304,315
117,272
65,253
52,019
48,056

514,318
37,130
318,894
116,569
69,168
47,401
41,725

58,594
13,019

67,501
14,375

65,304
15,240

63,354
17,522

53,646
17,098

30,983

41,333

37,125

33,115

24,240

14,592

11,792

12,939

12,717

12,308

12,899

13,628

8,974

7,887

7,571

45,767

44,638

38,888

9 Claims of banks' domestic customers 3 ...
11

Negotiable and readily transferable

Outstanding collections and other

576,230
508,549
38,341
305,943
119,029
70,885
48,144
45,236

512,876
36,892
318,350
113,936
67,007
46,929
43,698

July r

Aug.P

503,054
32,936
302,221
113,882
62,997
50,885
54,015

479,305
31,983
288,011
105,129
55,902
49,227
54,182

34,092

n.a.

June 1
565,572
511,926
35,956
314,613
112,012
63,643
48,369
49,345

13 MEMO: Customer liability on

14 Dollar deposits in banks abroad,
reported by nonbanking business
enterprises in the United States

39,117

1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are quarterly.
Reporting banks include all types of depository institution, as well as some
brokers and dealers.
2. For U.S. banks, includes amounts due from own foreign branches and
foreign subsidiaries consolidated in Consolidated Report of Condition filed with
bank regulatory agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists principally of amounts due from head office or parent

3.20

37,028

34,255

32,963

33,083

foreign bank, and foreign branches, agencies, or wholly owned subsidiaries of
head office or parent foreign bank.
3. Assets held by reporting banks for the account of their domestic customers.
4. Principally negotiable time certificates of deposit and bankers acceptances.
5. Includes demand and time deposits and negotiable and nonnegotiable
certificates of deposit denominated in U.S. dollars issued by banks abroad. For
description of changes in data reported by nonbanks, see Federal Reserve
Bulletin, vol. 65 (July 1979), p. 550.

BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States 1
Payable in U.S. Dollars
Millions of dollars, end of period
1991
Maturity, by borrower and area

1 Total
2
3
4
5
6
7

8
9
10
11
12
13
14
15
16
17
18
19

By borrower
Maturity of one year or less 2
Foreign public borrowers
All other foreigners
Maturity of more than one y e a r
Foreign public borrowers
All other foreigners
By area
Maturity of one year or less 2
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3
Maturity of more than one y e a r
Europe
Canada
Latin America and Caribbean
Asia
Africa
All other 3

1988r

1992

1990*
Sept.

Dec.

Mar.

June

233,184

238,123

206,903

195,275

195,187

194,219

196,909

172,634
26,562
146,072
60,550
35,291
25,259

178,346
23,916
154,430
59,776
36,014
23,762

165,985
19,305
146,680
40,918
22,269
18,649

160,395
17,601
142,794
34,880
17,935
16,945

162,515
21,047
141,468
32,672
15,866
16,806

161,266
20,241
141,025
32,953
16,344
16,609

162,438
20,491
141,947
34,471
15,154
19,317

55,909
6,282
57,991
46,224
3,337
2,891

53,913
5,910
53,003
57,755
3,225
4,541

49,184
5,450
49,782
53,258
3,040
5,272

51,211
5,682
47,289
50,010
2,815
3,388

51,875
6,474
43,521
51,007
2,549
7,089

52,608
6,926
48,597
43,605
2,486
7,044

54,977
7,926
49,189
41,386
2,142
6,818

4,666
1,922
47,547
3,613
2,301
501

4,121
2,353
45,816
4,172
2,630
684

3,859
3,290
25,774
5,165
2,374
456

3,733
3,706
19,282
5,635
2,393
131

3,883
3,546
18,264
4,459
2,335
185

4,355
3,250
18,180
4,738
2,191
239

6,791
3,178
16,891
5,007
2,341
263

1. Reporting banks include all kinds of depository institutions besides commercial banks, as well as some brokers and dealers.

1989r

2. Maturity is time remaining to maturity,
3. Includes nonmonetary international and regional organizations.

A61

A62

International Statistics • December 1992
CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks 1

3.21

Billions of dollars, end of period
1990
Area or country

1 Total

1988

1991

1992

1989
June

Sept.

Dec.

Mar.

June

Sept.

Dec.

Mar.

June p

346.3

338.8

321.7

331.5

317.8

325.4

320.8

335.5

341.5r

347.4r

355.2

152.7
9.0
10.5
10.3
6.8
2.7
1.8
5.4
66.2
5.0
34.9

152.9
6.3
11.7
10.5
7.4
3.1
2.0
7.1
67.2
5.4
32.2

139.3
6.2
10.2
11.2
5.4
2.7
2.3
6.3
59.9
5.1
30.1

143.6
6.5
11.1
11.1
4.4
3.8
2.3
5.6
62.6
5.0
31.3

132.1
5.9
10.4
10.6
5.0
3.0
2.2
4.4
60.8
5.9
23.9

129.9
6.2
9.7
8.8
4.0
3.3
2.0
3.7
62.2
6.8
23.2

130.1
6.1
10.5
8.3
3.6
3.3
2.5
3.3
59.8
8.2
24.6

134.0
5.8
11.1
9.7
4.5
3.0
2.1
3.9
64.9
5.9
23.2

137.3
6.0
11.0
8.3
5.6
4.7
1.9
3.4
68.5
5.9
22.2

130.2r
5.3
9.9
8.4 r
5.4
4.3
2.0
3.2
64.6 r
6.6
20.7

135.5
6.2
11.8
8.7
8.0
3.3
2.0
4.6
65.9
6.7
18.3

13 Other industrialized countries
14 Austria
15 Denmark
lb
Finland
1/
Greece
18 Norway
19 Portugal
20
Spain
21
Turkey
22
Other Western Europe
23
South Africa
24
Australia

21.0
1.5
1.1
1.1
1.8
1.8
.4
6.2
1.5
1.3
2.4
1.8

20.7
1.5
1.1
1.0
2.5
1.4
.4
7.1
1.2
.7
2.0
1.6

22.4
1.5
1.1
.9
2.7
1.4
.8
7.8
1.4
1.1
1.9
1.8

23.0
1.6
1.1
.8
2.8
1.6
.6
8.4
1.6
.7
1.9
2.0

22.6
1.4
1.1
.7
2.7
1.6
.6
8.3
1.7
.9
1.8
1.8

23.1
1.4
.9
1.0
2.5
1.5
.6
9.0
1.7
.8
1.8
1.9

21.1
1.1
1.2
.8
2.4
1.5
.6
7.1 r
1.9
.9
1.8
2.0

21.7
1.0
.9
.7
2.3
1.4
.5
8.3
1.6
1.0
1.6
2.4

22.T
.6
.9
.7
2.6
1.4
.6
8.3 r
1.4
1.6
1.9
2.7

21.2
.8
.8
.8
2.3
1.5
.5
l.T
1.2
1.3
1.8
2.3

25.4
.8
1.3
.8
2.8
1.7
.5
10.1
1.5
1.9
1.7
2.3

25 OPEC 2
2b
Ecuador
27
Venezuela
28
Indonesia
29
Middle East countries
30
African countries

16.6
1.7
7.9
1.7
3.4
1.9

17.1
1.3
7.0
2.0
5.0
1.7

15.3
1.1
6.0
2.0
4.4
1.8

14.2
1.1
6.0
2.3
3.1
1.7

12.8
1.0
5.0
2.7
2.5
1.7

17.1
.9
5.1
2.8
6.6
1.6

14.0
.9
5.3
2.6
3.7
1.5

15.6
.8
5.6
2.8
5.0
1.5

14.6
.7
5.4
2.8
4.2
1.5

15.8r
.7
5.4
3.QF
5.3
1.4

16.2
.7
5.3
3.0
5.9
1.4

31 Non-OPEC developing countries

85.3

77.5

66.7

67.1

65.4

66.4

65.0

64.3

70.6r

69.1

9.0
22.4
5.6
2.1
18.8
.8
2.6

6.3
19.0
4.6
1.8
17.7
.6
2.8

5.2
16.7
3.7
1.7
12.6
.5
2.3

5.0
15.4
3.6
1.8
12.8
.5
2.4

5.0
14.4
3.5
1.8
13.0
.5
2.3

4.7
13.9
3.6
1.7
13.7
.5
2.2

4.6
11.6
3.6
1.6
14.3
.5
2.0

4.5
10.5
3.7
1.6
16.2
.4
1.9

4.8
9.5
3.6
1.7
15.5
.4
2.1

5.0
10.8
3.9
1.6
18.2
.4
2.2

5.1
10.6
4.0
1.6
16.5
.4
2.2

Philippines
Thailand
Other Asia 3

.3
3.7
2.1
1.2
6.1
1.6
4.5
1.1
.9

.3
4.5
3.1
.7
5.9
1.7
4.1
1.3
1.0

.2
3.6
3.6
.7
5.6
1.8
3.9
1.3
1.1

.2
4.0
3.6
.6
6.2
1.8
3.9
1.5
1.6

.2
3.5
3.3
.5
6.2
1.9
3.8
1.5
1.7

.4
3.6
3.5
.5
6.8
2.0
3.7
1.6
2.1

.6
4.1
3.0
.5
6.9
2.1
3.7
1.7
2.3

.4
4.1
2.8
.5
6.5
2.3
3.6
1.9
2.3

.3
4.1
3.0
.5
6.8
2.3
3.7
1.7
2.4

.3
4.8r
3.6
.4
6.9
2.5
3.6
1.7
2.7

.3
4.9
3.8
.4
6.9
2.7
3.0
1.9
3.1

Africa
Egypt
Morocco
Zaire
,
Other Africa 3

.4
.9
.0
1.1

.4
.9
.0
1.0

.5
.9
.0
.8

.4
.9
.0
.8

.4
.8
.0
1.0

.4
.8
.0
.8

.4
.7
.0
.8

.4
.7
.0
.7

.3
.7
.0
.7

.5
.7
.0
.6

52 Eastern Europe
53
U.S.S.R
54
Yugoslavia
55
Other

3.6
.7
1.8
1.1

3.5
.7
1.6
1.3

2.9
.4
1.4
1.1

2.7
.4
1.3
1.1

2.3
.2
1.2
.9

2.1
.3
1.0
.8

2.1
.4
1.0
.7

1.8
.4
.8
.7

2.4
.9
.9
.7

2.9
1.4
.8
.6

3.0
1.7
.7
.6

56 Offshore banking centers
5/
Bahamas
58
Bermuda
59
Cayman Islands and other British West Indies
60
Netherlands Antilles
bl
Panama 4
62
Lebanon
b3
Hong Kong
64
Singapore
b5
Other 5

44.2
11.0
.9
12.9
1.0
2.5
.1
9.6
6.1
.0

36.6
5.5
1.7
9.0
2.3
1.4
.1
9.7
7.0
.0

40.3
8.5
2.5
8.5
2.3
1.4
.1
10.0
7.0
.0

42.6
8.9
4.5
9.3
2.2
1.5
.1
8.7
7.5
.0

42.5
2.8
4.4
11.5 ,
7.9
1.4
.1
7.7
6.6
.0

50.1
8.4
4.4
14.1
1.1
1.5
.1
11.6
8.9
.0

48.3
6.8
4.2
14.9
1.4
1.3
.1
12.4
7.2
.0

52.4
6.7
7.1
13.8
3.5
1.3
.1
12.1
7.7
.0

51.9
12.0
2.2
15.9
1.2
1.3
.1
12.2
7.1
.0

58.5
14. l r
3.9
17.4
1.0
1.3
.1
12.2
8.5
.0

56.6
12.1
5.1
18.0
.8
1.4
.1
12.7
6.4
.0

66 Miscellaneous and unallocated 6

22.6

30.3

34.5

38.1

39.8

36.4r

39.9r

44.6r

48.2 r

48.0 r

49.1

2 G-10 countries and Switzerland
3
Belgium and Luxembourg
4
France
5
Germany
b
1 Netherlands
8
Sweden
9
Switzerland
10 United Kingdom
11 Canada
12 Japan

32
33
34
35
3b
il
38

39
40
41
42
43
44
45
4b
47
48
49
50
51

Latin America
Argentina
Brazil
Chile
Colombia
Mexico
Peru
Other
Asia
China
Peoples Republic of China
Republic of China (Taiwan)
India
Israel
Korea (South)

1. The banking offices covered by these data are the U.S. offices and foreign
branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks.
Offices not covered include (1) U.S. agencies and branches of foreign banks, and
(2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are
adjusted to exclude the claims on foreign branches held by a U.S. office or another
foreign branch of the same banking institution. The data in this table combine
foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims
of U.S. offices in table 3.18 (excluding those held by agencies and branches of
foreign banks and those constituting claims on own foreign branches).
Since June 1984, reported claims held by foreign branches have been reduced
by an increase in the reporting threshold for "shell" branches from $50 million to

$150 million equivalent in total assets, the threshold now applicable to all
reporting branches.
2. Organization of Petroleum Exporting Countries, shown individually; other
members of OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar,
Saudi Arabia, and United Arab Emirates); and Bahrain and Oman (not formally
members of OPEC).
3. Excludes Liberia.
4. Includes Canal 2k>ne beginning December 1979.
5. Foreign branch claims only.
6. Includes New Zealand, Liberia, and international and regional
organizations.

Nonbank-Reported
3.22

Data

A63

LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in
the United States 1
Millions of dollars, end of period
1992

1991
Type and area or country

1988r

19891

1990"
Mar.

June

Sept.

Dec.

Mar.

June

1 Total

32,952

38,764

44,988

41,787

40,472

41,916

41,505

43,495

43,221

2 Payable in dollars
3 Payable in foreign currencies

27,335
5,617

33,973
4,791

39,791
5,197

37,211
4,576

36,003
4,469

37,210
4,706

36,225
5,280

38,174
5,321

36,914
6,307

By type
4 Financial liabilities
5 Payable in dollars
6
Payable in foreign currencies

14,507
10,608
3,900

17,879
14,035
3,844

20,010
15,984
4,026

18,606
15,266
3,340

18,260
14,947
3,313

20,350
16,675
3,675

20,242
16,242
4,000

21,664
17,566
4,098

21,382
16,261
5,121

18,445
6,505
11,940
16,727
1,717

20,885
8,070
12,815
19,938
947

24,977
10,683
14,294
23,807
1,170

23,181
8,793
14,388
21,945
1,236

22,212
8,569
13,644
21,056
1,157

21,566
8,313
13,253
20,535
1,031

21,263
8,310
12,953
19,983
1,280

21,831
8,914
12,917
20,608
1,223

21,839
9,198
12,641
20,653
1,186

9,962
289
359
699
880
1,033
6,533

11,660
340
258
464
941
541
8,818

10,346
394
700
621
1,081
516
6,395

9,559
335
632
561
1,036
517
5,810

9,634
355
556
658
1,026
484
5,932

11,403
397
1,747
652
1,050
468
6,521

10,814
217
1,593
649
1,056
360
6,294

12,071
174
1,997
636
1,025
355
6,977

12,604
194
2,324
836
979
470
6,925

7 Commercial liabilities
8 Trade payables
9
Advance receipts and other liabilities
10 Payable in dollars
11 Payable in foreign currencies

12
13
14
15
16
17
18

By area or country
Financial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

Canada

388

610

229

278

293

305

267

283

337

20
21
22
23
24
25
26

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

839
184
0
0
645
1
0

1,357
157
17
0
724
6
0

4,153
371
0
0
3,160
5
4

4,255
392
0
0
3,293
6
4

3,808
375
12
0
2,816
6
4

3,883
314
0
6
2,961
6
4

4,307
537
114
6
3,047
7
4

4,047
3%
114
8
2,915
7
4

3,298
343
114
10
2,157
8
4

27
28
29

Asia
Japan
Middle East oil-exporting countries

3,312
2,563
3

4,151
3,299
2

4,872
3,637
5

4,510
3,432
1

4,515
3,339
4

4,755
3,605
19

4,796
3,557
13

5,168
3,906
13

5,054
3,958
10

30
31

Africa
Oil-exporting countries 3

2
0

9
7

3
2

6
4

7
6

0
0

100

409

7,319
158
455
1,699
587
417
2,079

9,071
175
877
1,392
710
693
2,620

10,310
275
1,218
1,270
844
775
2,792

9,666
261
1,203
1,383
729
661
2,755

8,607
245
1,185
1,040
729
580
2,289

8,084
225
992
911
751
492
2,217

7,808
248
830
944
709
488
2,310

7,491
256
671
878
574
482
2,444

6,907
238
641
650
588
396
2,358

32
33
34
35
36
37
38
39

Allother

Commercial liabilities
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

Canada

1,217

1,124

1,261

1,251

1,208

1,011

990

1,094

997

41
42
43
44
45
46
47

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

1,090
49
286
95
34
217
114

1,224
41
308
100
27
323
164

1,672
12
538
145
30
475
130

1,589
14
494
216
35
343
129

1,619
5
504
180
49
358
119

1,512
14
450
211
46
291
102

1,352
3
310
219
107
304
94

1,701
13
493
230
108
375
168

1,794
8
406
212
73
473
278

48
49
50

Asia
Japan
Middle Eastern oil-exporting countries '

6,915
3,094
1,385

7,550
2,914
1,632

9,483
3,651
2,016

8,595
3,423
1,543

8,752
3,411
1,657

8,855
3,363
1,780

9,330
3,720
1,498

9,889
3,548
1,591

10,419
3,547
1,778

51
52

Africa
Oil-exporting countries 3

576
202

886
339

844
422

617
211

596
226

836
357

713
327

644
253

775
389

Other 4

1,328

1,030

1,406

1,464

1,431

1,268

1,070

1,012

947

1. For a description of the changes in the international statistics tables, see
Federal Reserve Bulletin, vol. 65, (July 1979), p. 550.
2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).

3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.
5. Revisions include a reclassification of transactions, which also affects the
totals for Asia and the grand totals.

A64
3.23

International Statistics • December 1992
CLAIMS ON UNAFFILIATED FOREIGNERS
the United States 1

Reported by Nonbanking Business Enterprises in

Millions of dollars, end of period
1991
Type, and area or country

1988r

1989r

1992

1990"
Mar.

June

Sept.

Dec.

Mar.

June

1 Total

33,805

33,173

35,365

35,578

37,124

38,345

42,386

41,746

41,067

2 Payable in dollars
3 Payable in foreign currencies

31,425
2,381

30,773
2,400

32,777
2,589

33,279
2,299

35,037
2,087

35,982
2,363

39,829
2,557

39,135
2,611

38,161
2,906

By type
4 Financial claims
Deposits
5
6
Payable in dollars
7
Payable in foreign currencies
8
Other financial claims
Payable in dollars
9
10
Payable in foreign currencies

21,640
15,643
14,544
1,099
5,997
5,220
111

19,297
12,353
11,364
989
6,944
6,190
754

19,891
13,727
12,552
1,175
6,164
5,297
866

19,746
13,115
12,052
1,063
6,631
5,960
671

20,904
12,576
11,758
817
8,328
7,656
673

22,566
16,227
15,182
1,045
6,339
5,641
698

25,320
17,177
16,253
924
8,143
7,322
821

25,029
16,819
15,626
1,193
8,210
7,521
689

24,263
14,956
13,631
1,325
9,307
8,643
664

11 Commercial claims
12 Trade receivables
13 Advance payments and other claims
14
Payable in dollars
15
Payable in foreign currencies

12,166
11,091
1,075
11,660
505

13,876
12,253
1,624
13,219
657

15,475
13,657
1,817
14,927
548

15,832
13,843
1,989
15,266
566

16,220
14,120
2,100
15,623
597

15,779
13,429
2,350
15,159
620

17,066
14,389
2,677
16,254
812

16,717
14,168
2,549
15,988
729

16,804
14,389
2,415
15,887
917

10,278
18
203
120
348
217
9,039

8,463
28
153
152
238
153
7,4%

9,651
76
371
367
265
357
7,971

10,640
86
208
312
380
422
9,016

11,875
74
271
298
429
433
10,222

13,131
76
255
434
420
580
10,997

13,523
13
312
342
385
591
11,226

14,083
12
277
290
727
682
11,507

13,097
25
786
381
732
779
8,663

16
17
18
19
20
21
22

By area or country
Financial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom

Canada

2,325

1,904

2,934

1,929

2,017

2,172

2,674

2,744

2,537

24
25
26
27
28
29
30

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

8,160
1,846
19
47
5,763
151
21

8,020
1,890
7
224
5,486
94
20

6,201
1,090
3
68
4,635
177
25

6,278
825
6
68
4,949
179
28

5,926
457
4
127
4,957
161
29

6,289
652
19
137
5,106
176
32

7,793
758
8
192
6,300
321
40

6,836
400
12
191
5,748
318
34

6,990
523
12
181
5,804
343
32

31
32
33

Asia
Japan
Middle East oil-exporting countries 2 ..

623
354
5

590
213
8

860
523
8

568
246
11

747
398
4

619
277
3

%2
385
5

1,009
423
3

1,280
712
4

Africa

106
10

140
12

37
0

62
3

64
1

61
1

57
1

60
0

57
0

148

180

207

269

275

294

311

297

302

5,181
189
672
669
212
344
1,324

6,209
242
964
6%
479
313
1,575

7,044
212
1,240
807
555
301
1,775

7,060
227
1,273
874
604
325
1,639

7,464
220
1,402
958
707
2%
1,817

6,884
190
1,330
858
641
258
1,807

7,865
192
1,539
934
643
295
2,078

7,809
181
1,552
929
645
327
2,069

7,852
213
1,534
892
655
359
2,078

35
36
37
38
39
40
41
42
43
44

Oil-exporting countries 3
All other 4
Commercial claims
Europe
Belgium and Luxembourg
France
Germany
Netherlands
Switzerland
United Kingdom
Canada

983

1,091

1,074

1,213

1,241

1,232

1,169

1,167

1,118

45
46
47
48
49
50
51

Latin America and Caribbean
Bahamas
Bermuda
Brazil
British West Indies
Mexico
Venezuela

2,241
36
230
299
22
461
227

2,184
58
323
297
36
508
147

2,375
14
246
326
40
661
192

2,334
15
231
327
49
653
181

2,433
16
247
309
43
710
195

2,494
8
255
385
37
741
196

2,590
11
263
418
41
828
202

2,564
11
272
361
45
889
206

2,619
9
283
431
31
846
246

52
53
54

Asia
Japan
,
Middle Eastern oil-exporting countries'

2,993
946
453

3,570
1,199
518

4,127
1,460
460

4,357
1,816
498

4,201
1,645
501

4,282
1,808
4%

4,552
1,861
622

4,326
1,770
636

4,387
1,753
601

55
56

Africa
Oil-exporting countries 3

435
122

429
108

488
67

394
68

428
63

431
80

418
95

417
75

417
70

333

393

367

474

454

456

472

434

411

Other

3. Comprises Algeria, Gabon, Libya, and Nigeria.
4. Includes nonmonetary international and regional organizations.

Securities Holdings and Transactions
3.24

A65

FOREIGN TRANSACTIONS IN SECURITIES
Millions of dollars
1992
Transaction and area or country

1990"

1991
Jan.Aug.

Mar.

Feb.

Apr.

May

June

July

Aug.

18,664
18,602

16,525
17,537

18,547
18,764

13,165
14,839

U.S. corporate securities
STOCKS

1 Foreign purchases
2 Foreign sales

173,293
188,419

211,204
200,116

148,025
154,299

21,429
21,200

18,857
19,423

17,536
18,034

3 Net purchases or sales ( - )

-15,126

11,088

-6,274

229

-566

-498

-1,012

-217

-1,674

4 Foreign countries

-15,197

10,520

-6,374

230

-588

-531

-1,170

-234

-1,629

-8,479
-1,234
-367
-397
-2,866
-2,980
886
-1,330
-2,435
-3,477
-2,891
-63
-298

50
9
-63
-227
-131
-354
3,845
2,177
-134
4,255
1,179
153
174

-5,213
-801
-109
-335
275
-3,865
1,692
993
-15
-4,139
-4,118
42
266

-108
-224
30
-115
304
-306
234
359
101
-399
-617
15
28

-88
-27
-36
-17
260
-237
410
-322
121
-886
-496
4
173

-730
-217
-48
-38
90
-334
412
45
-95
-158
-318
-1
-4

278
-121
149
76
122
-11
230
43
85
-557
-401
20
-72

-1,184
-148
-4
-217
-10
-691
74
-109
51
141
35
-1
-142

-964
10
-14
-14
-55
-741
131
-24
4
373
174
-7
253

-1,099
-46
-26
-54
-150
-663
-59
-24
-11
-442
-301
-1
7

568

100

-1

158

-45

118,764
102,047

153,096
125,634

141,453
113,337

17,983
14,790

17,429
14,398

16,722
11,666

17,539
13,222

16,691
12,407

18,274
16,301

20,327
16,202

5,056

4,317

4,284

1,973

4,125

4,388

4,205

2,094

4,110
1,705
-5
-13
22
-93
1,635
-100
878
284
1,364
-458
1
-22

5
6
7
8
9
10
11
12
13
14
15
16
17

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries

18 Nonmonetary international and
regional organizations
BONDS

19 Foreign purchases
20 Foreign sales
21 Net purchases or sales (—)

16,717

27,462

28,116

3,193

3,031

22 Foreign countries

17,187

27,592

27,891

3,187

2,942

10,079
373
-377
172
284
10,383
1,906
4,328
3
1,120
727
96
-344

13,115
847
1,577
482
656
8,933
1,623
2,672
1,787
8,459
5,767
52
-116

12,947
860
1,406
148
-283
9,639
-253
6,377
2,023
6,778
403
113
-94

2,345
58
277
12
252
1,756
97
708
-27
41
-121
15
8

1,183
-34
116
-15
124
745
-72
1,443
349
75
-316
28
-64

2,003
363
391
-122
-393
1,543
87
572
338
1,778
687
19
64

1,920
-45
67
123
-40
1,496
-68
1,022
455
1,088
324
6
-35

1,420
364
11
64
-53
847
-111
619
376
1,904
740
-6
3

983
161
-37
177
-13
714
67
663
239
231
-710
22
-111

-471

-131

225

195

-71

-121

-913
13,871
14,784
-2,767
33,109
35,876

72
14,604
14,532
-1,626
40,145
41,771

-3,240
13,469
16,709
-4,708
42,414
47,122

-2,913
9,685
12,598
-43
42,7%
42,839

23
24
25
26
27
28
29
30
31
32
33
34
35

Europe
France
Germany
Netherlands
Switzerland
United Kingdom
Canada
Latin America and Caribbean
Middle East 1
Other Asia
Japan
Africa
Other countries

36 Nonmonetary international and
regional organizations

4,861

Foreign securities
37 Stocks, net purchases or sales ( - )
Foreign purchases
38
39
Foreign sales
40 Bonds, net purchases or sales ( - )
41
Foreign purchases
Foreign sales
42

-9,205
122,641
131,846
-22,412
314,645
337,057

-31,967
120,598
152,565
-14,828
330,311
345,139

-16,966
99,047
116,013
-11,917
291,689
303,606

-2,293
10,628
12,921
269
33,576
33,307

-2,801
12,977
15,778
-357
33,045
33,402

-2,295
11,336
13,631
-1,318
30,421
31,739

43 Net purchases or sales (—), of stocks and bonds

-31,617

-46,795

-28,883

-2,024

-3,158

-3,613

-3,680

-1,554

-7,948

-2,956

44 Foreign countries

-28,943

-46,711

-32,144

-2,189

-3,492

-4,768

-3,706

-1,938

-8,807

-3,043

-8,443
-7,502
-8,854
-3,828
-137
-180

-34,452
-7,004
759
-7,350
-9
1,345

-19,927
-4,912
-1,304
-5,376
-72
-553

-2,251
1,154
708
-1,524
-10
-266

-605
-513
-479
-1,596
1
-300

-2,972
-904
-845
122
9
-178

-163
-710
-1,278
-1,235
-99
-221

-1,437
-852
-556
372
7
528

-5,751
-2,212
1,623
-2,459
14
-22

-2,238
133
341
-1,252
11
-38

-2,673

-84

3,261

165

334

1,155

384

859

45
46
47
48
49
50

Europe
Canada
Latin America and Caribbean
Asia
Africa
Other countries

51 Nonmonetary international and
regional organizations

1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait,
Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States).
2. Includes state and local government securities and securities of U.S.
government agencies and corporations. Also includes issues of new debt securi-

ties sold abroad by U.S. corporations organized to finance direct investments
abroad.
3. In a July 1989 merger, the former stockholders of a U.S. company received
$5,453 million in shares of the new combined U.K. company. This transaction is
not reflected in the data.

A66
3.25

International Statistics • December 1992
MARKETABLE U.S. TREASURY BONDS A N D NOTES

Foreign Transactions

Millions of dollars
1992
Country or area

1990F 1991
Jan.Aug.

Feb.

Apr.

May

June

July

Aug.

Transactions, net purchases or sales ( - ) during period 1
1 Estimated total2

18,927

19,865

24,641

4,632

-9,464

6,558

-7,924

14,448

-1,873

2 Foreign countries 2

18,764

19,687

22,908

5,015

-10,063

7,579

-6,945

11,758

-2,297

7,348

18,455
10
5,880
1,077
1,152
112
-1,259
11,463
13
-4,627

8,663
523
-4,725
-3,735
-663
1,007

7,751
2%
287
-967
300
-388
6,582
1,601
40
-1,169

-4,679
-91
-242
245
102
-411
-1,663
-2,629
10
-460

3,207
21
441
-219
-123
10
2,820
257
185

-7,302
289
329
-338
-3
-579
-5,867
-1,099
-34
2,627

3,828
-49
824
227
372
3
1,664
587
200
47

-2,464
331
-829
-1,046

10,024
13
-3,019

9,236
1,436
1,870
-3,667
-487
-1,688
10,110
1,234
428
5,571

-389
193
-895
197
2,520

3,521
80
255
367
-1,289
-76
3,752
417
15
900

14,734
33
3,943
10,757
-10,952
-14,785
313
842

10,285
10
4,179
6,097
3,367
-4,081
689
-298

-2,576
315
1,017
-3,908
13,418
2,615
%2
-3,703

-539
169
-351
-357
-430
-1,933
100

-1,361
73

2,780
-124
3,723
-819
1,363
657
193
-149

-320

-2,472
2,348
-2,406
1,085
40
416

3,589
-149
1,795
1,943
4,129
1,638
92
73

-2,869
216
-589
-2,4%
1,791
2,221
149
-1,424

-1,563
60
-758
-865
4,604
2,378
56
-170

163
287

178
-358
-72

1,733
1,887
47

-383

599
801

-1,021
-762
74

-979
-747
-4

2,690
2,421
127

424
365

-68

-354
-160
-75

18,764
23,218
-4,453

19,687
1,190
18,4%

22,908
9,300
13,608

5,015
-192
5,207

-10,063
-3,136
-6,927

7,579
1,712
5,867

-6,945
-2,685
-4,260

11,758
5,294
6,464

-2,297
-1,073
-1,224

7,348
687
6,661

-387

-6,822
239

2,926
7

1,679

233

556
15

-3,061

947
-56

856

1,093

3 Europe 2
4
Belgium and Luxembourg
5
Germany
6
Netherlands
7
Sweden
8
Switzerland 2
9
United Kingdom
10
Other Western Europe
11
Eastern Europe
12 Canada
13
14
15
16
17
18
19
20

Latin America and Caribbean
Venezuela
Other Latin America and Caribbean
Netherlands Antilles
Asia
Japan
Africa
Other

21 Nonmonetary international and regional organizations
22
International
23
Latin American regional

6,218

- 2

-228

-262

-1,172
-3,321
-3,044
125
-367

-1%

-26

6,994

MEMO

24 Foreign countries 2
25
Official institutions
26
Other foreign
Oil-exporting countries
27 Middle E a s P
28 Africa 4

1. Estimated 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. Includes U.S. Treasury notes, denominated in foreign currencies, publicly
issued to private foreign residents.

3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and
United Arab Emirates (Trucial States).
4. Comprises Algeria, Gabon, Libya, and Nigeria.

Interest and Exchange Rates
3.26

A67

DISCOUNT RATES OF FOREIGN CENTRAL BANKS 1
Percent per year
Rate on Oct. 31, 1992

Rate on Oct. 31, 1992

Country

Month
effective
Austria..
Belgium .
Canada..
Denmark
France . .

8.0
7.75
6.30
9.5
9.6

Oct.
Oct.
Oct.
Dec.
Dec.

1992
1992
1992
1991
1991

Month
effective
Germany...
Italy
Japan
Netherlands

8.25
14.0
3.25
7.75

1. Rates shown are mainly those at which the central bank either discounts or
makes advances against eligible commercial paper or government securities for
commercial banks or brokers. For countries with more than one rate applicable to
such discounts or advances, the rate shown is the one at which it is understood

3.27

Rate on Oct. 31, 1992

Country

Sept. 1992
Oct. 1992
July 1992
Oct. 1992

Norway
Switzerland
United Kingdom

Percent

Month
effective

10.50
6.0
12.0

July 1990
Sept. 1992
Sept. 1992

that the central bank transacts the largest proportion of its credit operations.
2. Since Feb. 1981, the rate has been that at which the Bank of France
discounts Treasury bills for seven to ten days.

FOREIGN SHORT-TERM INTEREST RATES 1
Averages of daily figures, percent per year
1992
Type or country

1
2
3
4
5
6
7
8
9
10

Eurodollars
United Kingdom
Canada
Germany
Switzerland
Netherlands
France
Italy
Belgium
Japan

1989

1990

1991
May

June

July

Aug.

Sept.

Oct.

10.87
130.48
3,968.50
7.04
6.83

10.01
120.11
3,653.50
8.41
8.71

8.46
101.56
3,088.00
9.15
8.01

4.05
10.56
7.10
9.63
8.48

3.84
10.00
6.60
9.70
8.77

3.87
9.94
6.03
9.66
9.04

3.40
10.10
5.58
9.69
8.67

3.33
10.27
5.15
9.79
8.09

3.15
9.86
5.33
9.37
7.20

3.30
8.23
7.57
8.85
6.28

7.28
9.27
12.44
8.65
5.39

8.57
10.20
12.11
9.70
7.75

9.19
9.49
12.04
9.30
7.33

9.42
9.92
12.38
9.50
4.72

9.43
9.83
12.39
9.51
4.72

9.45
9.98
13.38
9.50
4.60

9.50
10.11
15.54
9.54
4.32

9.73
10.27
15.27
9.71
3.87

9.23
10.51
17.54
9.44
3.89

8.63
10.82
15.52
8.70
3.85

1. Rates are for three-month interbank loans, with the following exceptions:
Canada, finance company paper; Belgium, three-month Treasury bills; and Japan,
CD rate.

Apr.

A68
3.28

International Statistics • December 1992
FOREIGN EXCHANGE RATES 1
Currency units per dollar, except as noted
1992
Country/currency unit

1989

1990

1991
May

June

July

Aug.

Sept.

Oct.

1
2
3
4
5
6
/
8
9
10

Australia/dollar 2
Austria/schilling
Belgium/franc
Canada/dollar
China, P.R./yuan
Denmark/krone
Finland/markka
France/franc
Germany/deutsche mark
Greece/drachma

10.870
130.480
3,968.500
1.1842
3.7673
7.3210
4.2963
6.3802
1.8808
162.60

10.010
120.110
3,653.500
1.1668
4.7921
6.1899
3.8300
5.4467
1.6166
158.59

8.460
101.560
3,088.000
1.1460
5.3337
6.4038
4.0521
5.6468
1.6610
182.63

75.587
11.422
33.386
1.1991
5.5182
6.2678
4.4075
5.4548
1.6225
192.09

75.561
11.068
32.362
1.1960
5.4893
6.0573
4.2846
5.2940
1.5726
190.69

74.507
10.500
30.717
1.1924
5.4564
5.7409
4.0803
5.0321
1.4914
182.89

72.479
10.199
29.824
1.1907
5.4417
5.5851
3.9773
4.9119
1.4475
179.12

72.255
10.214
29.917
1.2225
5.5048
5.6203
4.4764
4.9378
1.4514
182.70

71.481
10.436
30.581
1.2453
5.5486
5.7278
4.70%
5.0370
1.4851
192.50

11
12
13
14
15
16
17
18
19
20

Hong Kong/dollar
India/rupee
Ireland/pound 2
Italy/lira
Japan/yen
Malaysia/ringgit
Netherlands/guilder 2
New Zealand/dollar
Norway/krone
Portugal/escudo

7.8008
16.213
141.80
1,372.28
138.07
2.7079
2.1219
59.793
6.9131
157.53

7.7899
17.492
165.76
1,198.27
145.00
2.7057
1.8215
59.619
6.2541
142.70

7.7712
22.712
161.39
1,241.28
134.59
2.7503
1.8720
57.832
6.4912
144.77

7.7421
28.542
164.62
1,220.95
130.77
2.5223
1.8268
53.514
6.3311
135.23

7.7343
28.519
169.80
1,189.52
126.84
2.5187
1.7719
54.201
6.1493
130.79

7.7341
28.564
178.76
1,129.83
125.88
2.4999
1.6819
54.609
5.8581
126.24

7.7318
28.464
183.26
1,100.00
126.23
2.4977
1.6322
54.057
5.7120
124.98

7.7298
28.476
181.90
1,176.21
122.60
2.5029
1.6348
54.112
5.8116
127.86

7.7298
28.477
177.19
1,309.64
121.17
2.5044
1.6717
53.943
6.0562
132.33

21
22
2i
24
25
26
21
28
29
30

Singapore/dollar
South Africa/rand
South Korea/won
Spain/peseta
Sri Lanka/rupee
Sweden/krona
Switzerland/franc
Taiwan/dollar
Thailand/baht
United Kingdom/pound 2

1.9511
2.6214
674.29
118.44
35.947
6.4559
1.6369
26.407
25.725
163.82

1.8134
2.5885
710.64
101.96
40.078
5.9231
1.3901
26.918
25.609
178.41

1.7283
2.7633
736.73
104.01
41.200
6.0521
1.4356
26.759
25.528
176.74

1.6408
2.8483
786.83
101.47
43.445
5.8462
1.4907
25.016
25.550
180.95

1.6240
2.8077
793.60
99.02
43.941
5.6792
1.4250
24.770
25.400
185.51

1.6142
2.7577
789.93
94.88
44.014
5.4084
1.3347
24.783
25.293
191.77

1.6077
2.7629
792.56
93.05
44.050
5.2745
1.2966
25.120
25.265
194.34

1.5988
2.8037
788.76
98.19
44.159
5.3685
1.2780
25.227
25.209
184.65

1.6081
2.8923
786.79
105.74
44.276
5.6006
1.3176
25.278
25.253
165.29

89.09

89.84

88.30

85.91

82.57

80.97

81.98

85.03

MEMO

31 United States/dollar 3

98.60

1. Averages of certified noon buying rates in New York for cable transfers.
Data in this table also appear in the Board's G.5 (405) monthly statistical release.
For ordering address, see inside front cover.
2. Value in U.S. cents.
3. Index of weighted-average exchange value of U.S. dollar against the

currencies o f t e n industrial countries. The weight for each of the ten countries is
the 1972-76 average world trade of that country divided by the average world
trade of all ten countries combined. Series revised as of August 1978 (see Federal
Reserve Bulletin, vol. 64, August 1978, p. 700).

A69

Guide to Statistical Releases and Special Tables
STATISTICAL RELEASES—List

Published Semiannually, with Latest

BULLETIN

Reference

Anticipated schedule of release dates for periodic releases
SPECIAL TABLES—Quarterly

Data Published Irregularly, with Latest

BULLETIN

Issue
June 1992

Page
A78

Issue

Page

Reference

Title and Date
Assets and liabilities of commercial banks
September 30, 1991
December 31, 1991
March 31, 1992
June 30, 1992

February
May
August
November

1992
1992
1992
1992

A70
A70
A70
A70

Terms of lending at commercial banks
November 1991
February 1992
May 1992
August 1992

September
September
September
November

1992
1992
1992
1992

A70
A74
A78
A76

Assets and liabilities of U.S. branches and agencies of foreign banks
September 30, 1991
December 31, 1991
March 31, 1992
June 30, 1992

February
May
September
November

1992
1992
1992
1992

A80
A76
A82
A80

Pro forma balance sheet and income statements for priced service
June 30, 1991
September 30, 1991
March 30, 1992
June 30, 1992

November
January
August
October

1991
1992
1992
1992

A80
A70
A80
A70

December 1991
May 1992
August 1992

A79
A81
A83

Assets and liabilities of life insurance companies
June 30, 1991
September 30, 1991
December 31, 1991

operations

A70

Index to Statistical Tables
References are to pages A3-A68 although the prefix "A" is omitted in this index
ACCEPTANCES, bankers (See Bankers acceptances)
Agricultural loans, commercial banks, 20, 21
Assets and liabilities (See also Foreigners)
Banks, by classes, 19-21
Domestic finance companies, 34
Federal Reserve Banks, 11
Financial institutions, 26
Foreign banks, U.S. branches and agencies, 22
Automobiles
Consumer installment credit, 37, 38
Production, 47, 48
BANKERS acceptances, 10, 23, 24
Bankers balances, 19-21. (See also Foreigners)
Bonds (See also U.S. government securities)
New issues, 33
Rates, 24
Branch banks, 22, 55
Business activity, nonfinancial, 44
Business expenditures on new plant and equipment, 33
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 46
Capital accounts
Banks, by classes, 19
Federal Reserve Banks, 11
Central banks, discount rates, 67
Certificates of deposit, 24
Commercial and industrial loans
Commercial banks, 17, 20
Weekly reporting banks, 20-22
Commercial banks
Assets and liabilities, 19-21
Commercial and industrial loans, 17, 19, 20, 21, 22
Consumer loans held, by type and terms, 37, 38
Loans sold outright, 20
Nondeposit funds, 18
Real estate mortgages held, by holder and property, 36
Time and savings deposits, 4
Commercial paper, 23, 24, 34
Condition statements (See Assets and liabilities)
Construction, 44, 49
Consumer installment credit, 37, 38
Consumer prices, 44,46
Consumption expenditures, 52, 53
Corporations
Nonfinancial, assets and liabilities, 33
Profits and their distribution, 33
Security issues, 32, 65
Cost of living (See Consumer prices)
Credit unions, 37
Currency and coin, 19
Currency in circulation, 5, 14
Customer credit, stock market, 25
DEBITS to deposit accounts, 16
Debt (See specific types of debt or securities)
Demand deposits
Banks, by classes, 19-22

Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 22
Turnover, 16
Depository institutions
Reserve requirements, 9
Reserves and related items, 4, 5, 6,13
Deposits (See also specific types)
Banks, by classes, 4, 19-21, 22
Federal Reserve Banks, 5,11
Turnover, 16
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, 33
EMPLOYMENT, 45
Eurodollars, 24
FARM mortgage loans, 36
Federal agency obligations, 5, 10, 11, 12, 29, 30
Federal credit agencies, 31
Federal finance
Debt subject to statutory limitation, and types and ownership
of gross debt, 28
Receipts and outlays, 26, 27
Treasury financing of surplus, or deficit, 26
Treasury operating balance, 26
Federal Financing Bank, 26, 31
Federal funds, 7, 18, 20, 21, 22, 24, 26
Federal Home Loan Banks, 31
Federal Home Loan Mortgage Corporation, 31, 35, 36
Federal Housing Administration, 31, 35, 36
Federal Land Banks, 36
Federal National Mortgage Association, 31, 35, 36
Federal Reserve Banks
Condition statement, 11
Discount rates (See Interest rates)
U.S. government securities held, 5, 11, 12, 28
Federal Reserve credit, 5,6, 11, 12
Federal Reserve notes, 11
Federally sponsored credit agencies, 31
Finance companies
Assets and liabilities, 34
Business credit, 34
Loans, 37, 38
Paper, 23, 24
Financial institutions
Loans to, 20, 21, 22
Selected assets and liabilities, 26
Float, 51
Flow of funds, 39,41, 42, 43
Foreign banks, assets and liabilities of U.S. branches and
agencies, 21, 22
Foreign currency operations, 11
Foreign deposits in U.S. banks, 5, 11, 20, 21
Foreign exchange rates, 68
Foreign trade, 54
Foreigners
Claims on, 55, 57, 60, 61, 62, 64

A71

Foreigners—Continued
Liabilities to, 21, 54, 55, 57, 58, 63, 65, 66
GOLD
Certificate account, 11
Stock, 5, 54
Government National Mortgage Association, 31, 35, 36
Gross domestic product, 51
HOUSING, new and existing units, 49
INCOME, personal and national, 44, 51, 52
Industrial production, 44, 47
Installment loans, 37, 38
Insurance companies, 28, 36
Interest rates
Bonds, 24
Consumer installment credit, 38
Federal Reserve Banks, 8
Foreign central banks and foreign countries, 67
Money and capital markets, 24
Mortgages, 35
Prime rate, 23
International capital transactions of United States, 53-67
International organizations, 57, 58, 60, 63, 64
Inventories, 51
Investment companies, issues and assets, 33
Investments (See also specific types)
Banks, by classes, 19, 20, 21, 22, 26
Commercial banks, 4, 17, 19-21
Federal Reserve Banks, 11, 12
Financial institutions, 36
LABOR force, 45
Life insurance companies (See Insurance companies)
Loans (See also specific types)
Banks, by classes, 19—21
Commercial banks, 4, 17, 19-21
Federal Reserve Banks, 5, 6, 8, 11,12
Financial institutions, 26, 36
Insured or guaranteed by United States, 35, 36
MANUFACTURING
Capacity utilization, 46
Production, 46, 48
Margin requirements, 25
Member banks (See also Depository institutions)
Federal funds and repurchase agreements, 7
Reserve requirements, 9
Mining production, 48
Mobile homes shipped, 49
Monetary and credit aggregates, 4, 13
Money and capital market rates, 24
Money stock measures and components, 4, 14
Mortgages (See Real estate loans)
Mutual funds, 33
Mutual savings banks (See Thrift institutions)
NATIONAL defense outlays, 27
National income, 51
OPEN market transactions, 10
PERSONAL income, 52
Prices
Consumer and producer, 44, 50
Stock market, 25
Prime rate, 23
Producer prices, 44, 50
Production, 44, 47
Profits, corporate, 33

REAL estate loans
Banks, by classes, 17, 20, 21, 36
Financial institutions, 26
Terms, yields, and activity, 35
Type of holder and property mortgaged, 36
Repurchase agreements, 7, 18, 20, 21, 22
Reserve requirements, 9
Reserves
Commercial banks, 19
Depository institutions, 4, 5, 6, 13
Federal Reserve Banks, 11
U.S. reserve assets, 54
Residential mortgage loans, 35
Retail credit and retail sales, 37, 38,44
SAVING
Flow of funds, 39,41,42, 43
National income accounts, 51
Savings and loan associations, 36, 37, 39. (See also SAIF-insured
institutions)
Savings Association Insurance Funds (SAIF) insured institutions, 26
Savings banks, 26, 36, 37
Savings deposits (See Time and savings deposits)
Securities (See also specific types)
Federal and federally sponsored credit agencies, 31
Foreign transactions, 65
New issues, 32
Prices, 25
Special drawing rights, 5, 11, 53, 54
State and local governments
Deposits, 20, 21
Holdings of U.S. government securities, 28
New security issues, 32
Ownership of securities issued by, 20, 21
Rates on securities, 24
Stock market, selected statistics, 25
Stocks (See also Securities)
New issues, 32
Prices, 25
Student Loan Marketing Association, 31
TAX receipts, federal, 27
Thrift institutions, 4. (See also Credit unions and Savings and
loan associations)
Time and savings deposits, 4, 14, 18, 19, 20, 21, 22
Trade, foreign, 54
Treasury cash, Treasury currency, 5
Treasury deposits, 5, 11, 26
Treasury operating balance, 26
UNEMPLOYMENT, 45
U.S. government balances
Commercial bank holdings, 19, 20, 21
Treasury deposits at Reserve Banks, 5, 11, 26
U.S. government securities
Bank holdings, 19-21, 22, 28
Dealer transactions, positions, and financing, 30
Federal Reserve Bank holdings, 5, 11, 12, 28
Foreign and international holdings and
transactions, 11, 28, 66
Open market transactions, 10
Outstanding, by type and holder, 26, 28
Rates, 23
U.S. international transactions, 53-67
Utilities, production, 48
VETERANS Administration, 35, 36
WEEKLY reporting banks, 20-22
Wholesale (producer) prices, 44, 50
YIELDS (See Interest rates)

A72

Federal Reserve Board of Governors
and Official Staff
ALAN GREENSPAN, Chairman

WAYNE D . ANGELL

DAVID W. MULLINS, JR., Vice Chairman

EDWARD W. KELLEY, JR.

OFFICE OF BOARD

DIVISION OF INTERNATIONAL

MEMBERS

JOSEPH R. COYNE, Assistant
DONALD J. WINN, Assistant

to the Board
to the Board

THEODORE E. ALLISON, Assistant to the Board for Federal
Reserve System Affairs
LYNN S. FOX, Special Assistant to the Board
WINTHROP P. HAMBLEY, Special Assistant to the Board
BOB STAHLY MOORE, Special Assistant to the Board
DIANE E. WERNEKE, Special Assistant to the Board

EDWIN M. TRUMAN, Staff

LARRY J. PROMISEL, Senior Associate Director
CHARLES J. SIEGMAN, Senior Associate Director
DALE W. HENDERSON, Associate Director
DAVID H. HOWARD, Senior
Adviser
DONALD B. ADAMS, Assistant
Director
PETER HOOPER III, Assistant
Director

KAREN H. JOHNSON, Assistant

Director

RALPH W. SMITH, JR., Assistant

LEGAL

FINANCE

Director

DIVISION

J. VIRGIL MATTINGLY, JR., General

Counsel

SCOTT G. ALVAREZ, Associate General Counsel
RICHARD M. ASHTON, Associate General Counsel
OLIVER IRELAND, Associate General Counsel
KATHLEEN M. O'DAY, Associate General Counsel
MARYELLEN A. BROWN, Assistant to the General Counsel
OFFICE OF THE

SECRETARY

WILLIAM W . WILES,

Secretary

JENNIFER J. JOHNSON, Associate Secretary
BARBARA R. LOWREY, Associate
Secretary
ELLEN MALAND, Assistant
Secretary

DIVISION OF BANKING
SUPERVISION AND REGULATION
RICHARD SPILLENKOTHEN,

Director

STEPHEN C. SCHEMERING, Deputy

DON E. KLINE, Associate

Director

WILLIAM A . RYBACK, Associate

Director

FREDERICK M. STRUBLE, Associate Director
HERBERT A. BIERN, Deputy Associate Director
ROGER T. COLE, Deputy Associate Director
JAMES I. GARNER, Deputy Associate Director
HOWARD A. AMER, Assistant
Director
GERALD A . EDWARDS, JR., Assistant
Director
JAMES D. GOETZINGER, Assistant
Director
LAURA M. HOMER, Assistant
Director
JAMES V. HOUPT, Assistant
Director

JACK P. JENNINGS, Assistant

Director

MICHAEL G. MARTINSON, Assistant
Director
RHOGER H PUGH, Assistant
Director
SIDNEY M. SUSSAN, Assistant
Director
MOLLY S. WASSOM, Assistant
Director

DIVISION OF RESEARCH AND
MICHAEL J. PRELL,

STATISTICS

Director

EDWARD C. ETTIN, Deputy
Director
WILLIAM R. JONES, Associate
Director
THOMAS D. SIMPSON, Associate
Director

LAWRENCE SLIFMAN, Associate Director
DAVID J. STOCKTON, Associate Director
MARTHA BETHEA, Deputy Associate Director
PETER A. TINSLEY, Deputy Associate Director
MYRON L. KWAST, Assistant
Director
PATRICK M. PARKINSON, Assistant
Director
MARTHA S. SCANLON, Assistant
Director

JOYCE K. ZICKLER, Assistant
JOHN J. MINGO,

Director

Adviser

LEVON H. GARABEDIAN, Assistant

Director

(Administration )
DIVISION OF MONETARY
DONALD L . KOHN,

AFFAIRS

Director

DAVID E. LINDSEY, Deputy Director
BRIAN F. MADIGAN, Assistant Director
RICHARD D. PORTER, Assistant

Director

NORMAND R.V. BERNARD, Special Assistant to the Board
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
GRIFFITH L . GARWOOD,

Director

GLENN E. LONEY, Assistant
DOLORES S. SMITH, Assistant

Director
Director

A73

SUSAN M . PHILLIPS

JOHN P. LAWARE
LAWRENCE B . LINDSEY

OFFICE OF
STAFF DIRECTOR

FOR

S. DAVID FROST, Staff

MANAGEMENT

DIVISION OF RESERVE BANK
AND PAYMENT SYSTEMS
CLYDE H . FARNSWORTH, JR.,

Director

WILLIAM SCHNEIDER, Special

Assignment:

Project Director, National Information Center
PORTIA W. THOMPSON, Equal Employment Opportunity
Programs Officer

OPERATIONS

Director

DAVID L. ROBINSON, Deputy Director (Finance and
Control)
CHARLES W. BENNETT, Assistant
Director
JACK DENNIS, JR., Assistant
Director

EARL G. HAMILTON, Assistant Director
DIVISION OF HUMAN
MANAGEMENT
DAVID L . S H A N N O N ,

RESOURCES

LOUISE L. ROSEMAN, Assistant
FLORENCE M. YOUNG, Assistant

Director

JOHN R. WEIS, Associate

JEFFREY C. MARQUARDT, Assistant

Director

JOHN H. PARRISH, Assistant Director
Director

ANTHONY V. DIGIOIA, Assistant
JOSEPH H. HAYES, JR., Assistant

Director
Director

OFFICE OF THE INSPECTOR
BRENT L. BOWEN, Inspector

FRED HOROWITZ, Assistant Director

Director
Director

GENERAL

General

BARRY R. SNYDER, Assistant Inspector General
OFFICE OF THE

CONTROLLER

GEORGE E . LIVINGSTON,

Controller

STEPHEN J. CLARK, Assistant Controller (Programs and
Budgets)
DARRELL R. PAULEY, Assistant Controller (Finance)
DIVISION OF SUPPORT
ROBERT E . FRAZIER,

SERVICES

Director

GEORGE M. LOPEZ, Assistant

Director

DAVID L. WILLIAMS, Assistant Director
DIVISION OF INFORMATION
MANAGEMENT
STEPHEN R . MALPHRUS,

RESOURCES

Director

BRUCE M. BEARDSLEY, Deputy Director
MARIANNE M. EMERSON, Assistant Director
Po KYUNG KIM, Assistant Director
RAYMOND H. MASSEY, Assistant
EDWARD T. MULRENIN, Assistant

Director
Director

DAY W. RADEBAUGH, JR., Assistant Director
ELIZABETH B. RIGGS, Assistant
RICHARD C. STEVENS, Assistant

Director
Director

A74

Federal Reserve Bulletin • December 1992

Federal Open Market Committee
and Advisory Councils
FEDERAL OPEN MARKET

COMMITTEE
MEMBERS

A L A N GREENSPAN, Chairman

E . GERALD CORRIGAN, Vice

Chairman

WAYNE D . ANGELL

JOHN P. LAWARE

DAVID W . MULLINS, JR.

THOMAS H . HOENIG

LAWRENCE B . LINDSEY

SUSAN M . PHILLIPS

JERRY L . JORDAN

THOMAS C . MELZER

RICHARD F. SYRON

EDWARD W . KELLEY, JR.

ALTERNATE

MEMBERS

ROBERT D . MCTEER, JR.

EDWARD G . BOEHNE

JAMES H . OLTMAN

SILAS KEEHN

GARY H . STERN

STAFF
DONALD L. KOHN, Secretary and
Economist
NORMAND R.V. BERNARD, Deputy
Secretary
JOSEPH R. COYNE, Assistant
Secretary
GARY P. GILLUM, Assistant
Secretary
J. VIRGIL MATTINGLY, JR., General
Counsel

ERNEST T. PATRIKIS, Deputy General Counsel
MICHAEL J. PRELL,

Economist

EDWIN M . TRUMAN,

Economist

JOHN M . DAVIS, Associate

RICHARD G. DAVIS, Associate
Economist
THOMAS E. DAVIS, Associate
Economist
DAVID E. LINDSEY, Associate
Economist
ALICIA H. MUNNELL, Associate
Economist
LARRY J. PROMISEL, Associate
Economist
CHARLES J. SIEGMAN, Associate
Economist
THOMAS D. SIMPSON, Associate
Economist
DAVID J. STOCKTON, Associate
Economist

Economist

WILLIAM J. MCDONOUGH, Manager of the System Open Market Account
MARGARET L. GREENE, Deputy Manager for Foreign Operations
JOAN E. LOVETT, Deputy Manager for Domestic Operations

FEDERAL ADVISORY

COUNCIL

RONALD G . STEINHART,

TERRENCE A . LARSEN, Vice

IRA STEPANIAN, First District
CHARLES S. SANFORD, JR., Second District
TERRENCE A. LARSEN, Third District
JOHN B. MCCOY, Fourth District
EDWARD E. CRUTCHFIELD, JR., Fifth District
E.B. ROBINSON, JR., Sixth District

President

EUGENE A. MILLER, Seventh District
DAN W. MITCHELL, Eighth District
JOHN F. GRUNDHOFER, Ninth District
DAVID A. RISMILLER, Tenth District
RONALD G. STEINHART, Eleventh District
RICHARD M. ROSENBERG, Twelfth District

HERBERT V. PROCHNOW,

WILLIAM J. KORSVIK, Associate

Secretary

A75

CONSUMER ADVISORY

COUNCIL

COLLEEN D. HERNANDEZ, Kansas City, Missouri, Chairman
DENNY D. DUMLER, Denver, Colorado, Vice Chairman

BARRY A . ABBOTT, S a n F r a n c i s c o , C a l i f o r n i a

MICHAEL M . GREENFIELD, St. L o u i s , M i s s o u r i

JOHN R . ADAMS, P h i l a d e l p h i a , P e n n s y l v a n i a

JOYCE HARRIS, M a d i s o n , W i s c o n s i n

JOHN A . BAKER, A t l a n t a , G e o r g i a

GARY S . HATTEM, N e w Y o r k , N e w Y o r k

VERONICA E . BARELA, D e n v e r , C o l o r a d o

JULIA E . HILER, M a r i e t t a , G e o r g i a

MULUGETTA BIRRU, P i t t s b u r g h , P e n n s y l v a n i a

HENRY JARAMILLO, B e l e n , N e w M e x i c o

GENEVIEVE BROOKS, B r o n x , N e w Y o r k

KATHLEEN E . KEEST, B o s t o n , M a s s a c h u s e t t s

TOYE L . BROWN, B o s t o n , M a s s a c h u s e t t s

EDMUND MIERZWINSKI, W a s h i n g t o n , D . C .

CATHY CLOUD, W a s h i n g t o n , D . C .

BERNARD F. PARKER, JR., D e t r o i t , M i c h i g a n

MICHAEL D . EDWARDS, Y e l m , W a s h i n g t o n

JEAN POGGE, C h i c a g o , I l l i n o i s

GEORGE C . GALSTER, W o o s t e r , O h i o

JOHN V. SKINNER, I r v i n g , T e x a s

E . THOMAS GARMAN, B l a c k s b u r g , V i r g i n i a

NANCY HARVEY STEORTS, D a l l a s , T e x a s

DONALD A . GLAS, H u t c h i n s o n , M i n n e s o t a

LOWELL N . SWANSON, P o r t l a n d , O r e g o n

DEBORAH B . GOLDBERG, W a s h i n g t o n , D . C .

MICHAEL W . TIERNEY, P h i l a d e l p h i a , P e n n s y l v a n i a

THRIFT INSTITUTIONS ADVISORY

COUNCIL

LYNN W. HODGE, Greenwood, South Carolina, President
DANIEL C. ARNOLD, Houston, Texas, Vice President

JAMES L . BRYAN, R i c h a r d s o n , T e x a s

PRESTON MARTIN, S a n F r a n c i s c o , C a l i f o r n i a

VANCE W. CHEEK, Johnson City, Tennessee

RICHARD D . PARSONS, N e w Y o r k , N e w Y o r k

BEATRICE D'AGOSTINO, S o m e r v i l l e , N e w J e r s e y

THOMAS R . RICKETTS, T r o y , M i c h i g a n

THOMAS J. HUGHES, M e r r i f i e l d , V i r g i n i a

EDMOND M . SHANAHAN, C h i c a g o , I l l i n o i s

RICHARD A. LARSON, West Bend, Wisconsin

WOODBURY C . TITCOMB, W o r c e s t e r , M a s s a c h u s e t t s

A76

Federal Reserve Board Publications
For ordering assistance, write PUBLICATIONS SERVICES,
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THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS.

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ANNUAL REPORT.
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CONSUMER EDUCATION
PAMPHLETS
Short pamphlets suitable for classroom use. Multiple copies are
available without charge.
Consumer Handbook on Adjustable Rate Mortgages
Consumer Handbook to Credit Protection Laws
A Guide to Business Credit for Women, Minorities, and Small
Businesses
How to File A Consumer Credit Complaint
Series on the Structure of the Federal Reserve System
The Board of Governors of the Federal Reserve System
The Federal Open Market Committee
Federal Reserve Bank Board of Directors
Federal Reserve Banks
Organization and Advisory Committees
A Consumer's Guide to Mortgage Lock-Ins
A Consumer's Guide to Mortgage Settlement Costs
A Consumer's Guide to Mortgage Refinancings
Home Mortgages: Understanding the Process and Your Right
to Fair Lending
Making Deposits: When Will Your Money Be Available?
When Your Home is on the Line: What You Should Know
About Home Equity Lines of Credit

A77

STAFF STUDIES: Summaries Only Printed in the
Bulletin

1 6 0 . BANKING MARKETS AND THE USE OF FINANCIAL SERVICES BY SMALL AND MEDIUM-SIZED BUSINESSES, b y

Studies and papers on economic and financial subjects that are
of general interest. Requests to obtain single copies of the full
text or to be added to the mailing list for the series may be sent
to Publications Services.

1 6 1 . A REVIEW OF CORPORATE RESTRUCTURING ACTIVITY,

Staff Studies 1-145 are out of print.

1 6 2 . EVIDENCE ON THE SIZE OF BANKING MARKETS FROM
MORTGAGE LOAN RATES IN TWENTY CITIES, b y S t e p h e n

1 4 6 . THE ROLE OF THE PRIME RATE IN THE PRICING OF
BUSINESS LOANS BY COMMERCIAL BANKS, 1 9 7 7 - 8 4 , b y

1 6 3 . CLEARANCE AND SETTLEMENT IN U . S . SECURITIES MAR-

Gregory E. Elliehausen and John D. Wolken. September
1990. 35 pp.
1980-90, by Margaret Hastings Pickering. May 1991.
21pp.

A. Rhoades. February 1992. 11 pp.
KETS, by Patrick Parkinson, Adam Gilbert, Emily Gollob,
Lauren Hargraves, Richard Mead, Jeff Stehm, and Mary
Ann Taylor. March 1992. 37 pp.

Thomas F. Brady. November 1985. 25 pp.
1 4 7 . REVISIONS IN THE MONETARY SERVICES (DIVISIA) INDEXES OF THE MONETARY AGGREGATES, b y H e l e n T. Farr

and Deborah Johnson. December 1985. 42 pp.
REPRINTS OF SELECTED Bulletin ARTICLES
Some Bulletin articles are reprinted. The articles listed below
are those for which reprints are available. Most of the articles
reprinted do not exceed twelve pages.

1 4 8 . THE MACROECONOMIC AND SECTORAL EFFECTS OF THE
ECONOMIC RECOVERY TAX ACT: SOME SIMULATION

RESULTS, by Flint Brayton and Peter B. Clark. December
1985. 17 pp.
1 4 9 . THE OPERATING PERFORMANCE OF ACQUIRED FIRMS IN
BANKING BEFORE AND AFTER ACQUISITION, b y S t e p h e n

Limit of ten copies

A. Rhoades. April 1986. 32 pp.
1 5 0 . STATISTICAL COST ACCOUNTING MODELS IN BANKING:
A REEXAMINATION AND AN APPLICATION, b y J o h n T.

Rose and John D. Wolken. May 1986. 13 pp.
1 5 1 . RESPONSES TO DEREGULATION: RETAIL DEPOSIT PRICING

FROM 1983 THROUGH 1985, by Patrick I. Mahoney, Alice
P. White, Paul F. O'Brien, and Mary M. McLaughlin.
January 1987. 30 pp.
1 5 2 . DETERMINANTS OF CORPORATE MERGER ACTIVITY:

REVIEW OF THE LITERATURE, by Mark J. Warshawsky.
April 1987. 18 pp.
1 5 3 . STOCK MARKET VOLATILITY, b y C a r o l y n D . D a v i s a n d

Alice P. White. September 1987. 14 pp.
1 5 4 . T H E EFFECTS ON CONSUMERS AND CREDITORS OF
PROPOSED CEILINGS ON CREDIT CARD INTEREST RATES,

by Glenn B. Canner and James T. Fergus. October 1987.
26 pp.
1 5 5 . THE FUNDING OF PRIVATE PENSION PLANS, b y M a r k J.

Warshawsky. November 1987. 25 pp.
1 5 6 . INTERNATIONAL TRENDS FOR U . S . BANKS AND BANKING

MARKETS, by James V. Houpt. May 1988. 47 pp.
1 5 7 . M 2 PER U N I T OF POTENTIAL G N P AS AN ANCHOR FOR

THE PRICE LEVEL, by Jeffrey J. Hallman, Richard D.
Porter, and David H. Small. April 1989. 28 pp.
1 5 8 . THE ADEQUACY AND CONSISTENCY OF MARGIN REQUIREMENTS IN THE MARKETS FOR STOCKS AND DERIVATIVE

PRODUCTS, by Mark J. Warshawsky with the assistance of
Dietrich Earnhart. September 1989. 23 pp.
1 5 9 . N E W DATA ON THE PERFORMANCE OF NONBANK SUBSIDIARIES OF BANK HOLDING COMPANIES, b y N e l l i e L i a n g

and Donald Savage. February 1990. 12 pp.

Recent Developments in the Bankers Acceptance Market. 1/86.
The Use of Cash and Transaction Accounts by American
Families. 2/86.
Financial Characteristics of High-Income Families. 3/86.
Prices, Profit Margins, and Exchange Rates. 6/86.
Agricultural Banks under Stress. 7/86.
Foreign Lending by Banks: A Guide to International and U.S.
Statistics. 10/86.
Recent Developments in Corporate Finance. 11/86.
Measuring the Foreign-Exchange Value of the Dollar. 6/87.
Changes in Consumer Installment Debt: Evidence from the
1983 and 1986 Surveys of Consumer Finances. 10/87.
Home Equity Lines of Credit. 6/88.
Mutual Recognition: Integration of the Financial Sector in the
European Community. 9/89.
The Activities of Japanese Banks in the United Kingdom and in
the United States, 1980-88. 2/90.
Industrial Production: 1989 Developments and Historical
Revision. 4/90.
Recent Developments in Industrial Capacity and Utilization.
6/90.
Developments Affecting the Profitability of Commercial Banks.
7/90.
Recent Developments in Corporate Finance. 8/90.
U.S. Exchange Rate Policy: Bretton Woods to Present. 11/90.
The Transmission Channels of Monetary Policy: How Have
They Changed? 12/90.
Changes in Family Finances from 1983 to 1989: Evidence from
the Survey of Consumer Finances. 1/92.
U.S. International Transactions in 1991. 5/92.

A78

ANTICIPATED
SCHEDULE
OF RELEASE DATES FOR PERIODIC
RELEASES—BOARD
OF THE FEDERAL RESERVE SYSTEM1
(PAYMENT MUST ACCOMPANY REQUESTS)

Approximate
release days

GOVERNORS

Weekly Releases

Annual
rate

Date of period to which data
refer

•

Aggregate Reserves of Depository Institutions and
the Monetary Base. H.3 (502) [1.20]

$15.00

Thursday

•

Actions of the Board: Applications and Reports
Received. H.2 (501)

$35.00

Friday

•

Assets and Liabilities of Insured Domestically
Chartered and Foreign Related Banking
Institutions. H.8 (510) [1.25]

$15.00

Monday

•

Factors Affecting Reserves of Depository
Institutions and Condition Statement of Federal
Reserve Banks. H.4.1 (503) [1.11]

$15.00

Thursday

Week ended previous
Wednesday

•

Foreign Exchange Rates. H.10 (512) [3.28]

$15.00

Monday

Week ended previous Friday

•

Money Stock, Liquid Assets, and Debt Measures.
H.6 (508) [1.21]

$35.00

Thursday

Week ended Monday of
previous week

•

Selected Borrowings in Immediately Available
Funds of Large Commercial Banks. H.5 (507)
[1.13]

$15.00

Wednesday

Week ended Thursday of
previous week

•

Selected Interest Rates. H.15 (519) [1.35]

$15.00

Monday

Week ended previous Saturday

•

Weekly Consolidated Condition Report of Large
Commercial Banks, and Domestic Subsidiaries.
H.4.2 (504) [1.26, 1.30]

$15.00

Friday

Wednesday, 1 week earlier

Week ended previous
Wednesday
Week ended previous Saturday
Wednesday, 3 weeks earlier

Monthly Releases
•

Consumer Installment Credit. G.19 (421) [1.55,
1.56]

$ 5.00

5th working day of
month

2nd month previous

•

Debits and Deposit Turnover at Commercial Banks.
G.6 (406) [1.22]

$ 5.00

12th of month

Previous month

•

Finance Companies. G.20 (422) [1.51, 1.52]

$ 5.00

5th working day of
month

2nd month previous

•

Foreign Exchange Rates. G.5 (405) [3.28]

$ 5.00

1st of month

Previous month

•

Industrial Production and Capacity Utilization. G.17
(419) [2.12, 2.13]

$15.00

Midmonth

•

Loans and Securities at all Commercial Banks. G.7
(407) [1.23]

$ 5.00

3rd week of month

•

Major Nondeposit Funds of Commercial Banks.
G.10 (411) [1.24]

$ 5.00

3rd week of month

•

Research Library—Recent Acquisitions. G. 15 (417)

Free of
charge

1st of month

Previous month

•

Selected Interest Rates. G.13 (415) [1.35]

$5.00

1st Tuesday of
month

Previous month

Previous month
Previous month
Previous month

1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later
than anticipated.
The respective Bulletin tables that report the data are designated in brackets.

A79

Annual

Quarterly Releases

rate

Approximate
release days

Date of period to which data
refer

•

Agricultural Finance Databook. E. 15 (125)

$ 5.00

End of March,
June, September,
and December

January, April, July, and
October

•

Country Exposure Lending Survey. E.16 (126)

$ 5.00

January, April,
July, and
October

•

Flow of Funds Accounts: Seasonally Adjusted
and Unadjusted. Z.l (780) [1.57,1.58]

$25.00

23rd of February,
May, August,
and November

•

Flow of Funds Summary Statistics. Z.l (788)
[1.59, 1.60]

$ 5.00

15th of February,
May, August,
and November

•

Geographical Distribution of Assets and Liabilities
of Major Foreign Branches of U.S. Banks. E.l 1
(121)

$ 5.00

15th of March,
June, September,
and December

Previous quarter

•

Survey of Terms of Bank Lending to Business. E.2
( H I ) [4.23]

$ 5.00

Midmonth of
March, June,
September, and
December

February, May, August, and
November

•

List of OTC Margin Stocks. E.7 (117)

$ 5.00

January, April,
July, and
October

February, May, August, and
November

Previous quarter

Semiannual Releases
•

Balance Sheets for the U.S. Economy. C.9 (108)

$ 5.00

October and April

Previous year

•

Report on the Terms of Credit Card Plans. E.5

$ 5.00

March and August

January and June

$ 5.00

February

End of previous June

(115)

Annual Releases
•

Aggregate Summaries of Annual Surveys of
Securities Credit Extension. C.2 (101)

A80

Index to Volume 78
GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES
Issue

January
February
March
April
May
June

Text

1-106
107-168
169-222
223-312
313-402
403-458

"A " Pages

1-71
1-83
1-73
1-68
1-81
1-68

Index to
tables
72-73
84-85
74-75
70-71
82-83
70-71

The "A" pages consist of statistical tables and reference information.

Pages
509
ABU DHABI
Agriculture, U.S. Department of
512
Aid to Families with Dependent Children
894
Allison, Theodore E., statement
529
Amer, Howard A., appointed Assistant Director,
Division of Banking Supervision and Regulation
687
American Bankers Association
816
Angell, Wayne D.
Federal Reserve System, expenses and budget, statement . 515
Annual Statistical Digest, 1991, published
910
Articles
An analysis of potential Treasury auction techniques
403
Asset-backed commercial paper programs
107
Banking markets and the use of financial services by
households
169
Changes in family finances from 1983 to 1989:
Evidence from the survey of consumer finances
Article
1
Errata
274
Deregulation and competition in Japanese banking
579
Developments in the pricing of credit card services
652
Evolution of the U.S. commercial paper market
since 1980
879
Expanded HMDA data on residential lending:
one year later
801
Federal Reserve Banks as fiscal agents and
depositories of the United States
727
Monetary policy report to the Congress
223, 633
Recent developments affecting the profitability
and practices of commercial banks
459
State and local government sector: long-term trends
and recent fiscal pressures
892
Treasury and Federal Reserve foreign
exchange operations
19, 242, 484, 738
U.S. international transactions in 1991
313
Atlanta Journal Constitution, publication of articles
on mortgage lending
807
Auction techniques by the U.S. Treasury,
article on analysis
403
Australian government and indexed-linked bonds
606
Ausubel, Lawrence
665

Issue

July
August
September ....
October
November ....
December

Text

459-578
579-632
633-726
727-800
801-878
879-976

"A " pages

1-68
1-83
1-85
1-71
1-83
1-68

Index to
tables
70-71
84-85
86-87
72-73
84-85
70-71

Statistical tables are indexed separately (see p. A70 of this issue).

Pages
Automated clearinghouses
Services
Unit cost

BANC A Nazionale del Lavoro
512,
Bank for International Settlements, Basle
33, 600,
Bank Holding Company Act of 1956
Orders issued under
A.N.B. Holding Company, Ltd
ABC Bancorp
ABN AMRO Bank, N.V., Amsterdam,
The Netherlands
ABN AMRO Holding N.V., Amsterdam,
The Netherlands
ABN AMRO North America, Inc
Acquisition Corporation
Allied Bank Capital, Inc
Allied Irish Banks pic, Dublin, Ireland
Alpha Financial Group, Inc
101,
AMCORE Financial, Inc
American Bancshares, Inc
American Interstate Bancorporation, Inc
Ames National Corporation
AmFirst Financial Services, Inc
APM Bancorp, Inc
Arlington State Banc Holding Company
Arvest Bank Group, Inc
379,
Associated Banc-Corp
380,
Aurora First National Company
Australia and New Zealand Banking Group Limited,
Melbourne, Australia
Baily Financial Corporation
Banc One Colorado Corporation
Banc One Corporation .... 99, 159, 310, 573, 699, 722,
Banc One Mortgage Corporation
Banc One Ohio Corporation
Banc One Texas Corporation
BanCentral Corporation
Banco de Santander, S.A. de Credito,
Santander, Spain
60, 72,

729
515

685
682
627
963
296
296
296
963
627
58
456
930
721
309
59
163
218
627
445
383
380
292
874
876
876
310
699
932
721
163

A81

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Bancorp of Mississippi, Inc
721
BancWest Bancorp, Inc
571
Bank Corporation of Georgia
874
Bank of New York Company, Inc
797
BankAmerica Corporation
299, 338, 707
Bankers Trust New York Corporation
723
Banner Bancorp, Ltd
627
Barnett Banks, Inc
218, 630
Baylor Bancshares, Inc
628
BB&T Financial Corporation
382, 454
Belleville Bancshares, Corporation
163
Bellwood Community Holding Company
963
Berkshire Financial Services, Inc
571
Big Sioux Financial, Inc
573
Bigfork Bancshares, Inc
722
Blythedale Bancshares, Inc
630
BMC Bankcorp, Inc
723
Boatmen's Bancshares, Inc
163, 370, 382, 723, 963
BOK Financial Corporation
963
Bowbells Holding Company
721
BRAD, Inc
454
Brenton Banks, Inc
876
Broadmoor Capital Corporation
795
Brooke Corporation
966
Brooke Holdings, Inc
630, 797
Browning Partners International, Inc
380
Bushton Investment Company, Inc
218
BW3 Bancorporation
99
Camilla Bancshares, Inc
454
Capitol Bancorp Ltd
628
Cardinal Bancshares, Inc
797
Carolina First BancShares, Inc
795
Carolina First Corporation
937
Carrollton Bancshares Corporation
963
CB Financial Corporation
218
CB&T Clarksburg Corporation
704
C B & T Financial Corp

CB&T Financial Corporation
CBA Bankshares, Inc
CBI-Illinois, Inc
CBOC, Inc
CBS Bancshares, Inc
Central Bancompany, Inc
Central Bancshares, Inc
Central Delaware Financial Bancorp, Inc
Central Financial Bancorp, Inc

Central Financial Corporation
Centura Banks, Inc
Chadwick Bancshares, Inc
Chase Manhattan Corporation
Chemical Bank
Chemical Banking Corporation
Childress Bancshares of Delaware, Inc
Childress Bancshares, Inc
Chuo Trust and Banking Company, Limited,
Tokyo, Japan
Citizens Bank Group, Inc
Citizens Holding Company, Inc
Citizens National Bancorp, Inc
City Holding Company
CNB Bancshares, Inc
CNB of Central Indiana, Inc
Coal City Corporation
Colorado National Bankshares, Inc
Columbia Bancorp
Comerica Bank
Comerica Incorporated
Commerce Bancshares, Inc
Commercial Bancorp of Georgia, Inc
Commercial Financial Corp
Commonwealth Financial Corporation

628

704
628
454
163
309
218
797, 963
722
722

795
99, 101, 876
218
165
74
74
963
963
446
380
628
874
454, 628
380
380
963
874
630
554
101, 554, 630
454
723
454
874

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Community Bancorp of Louisiana, Inc
454
Community Bank Group, Inc
722
Community Financial of Kentucky, Inc
163
Community First Bankshares, Inc
218, 309, 630, 874
Community Group, Inc
454
Continental Bancorporation
380
CoreStates Financial Corp
779
Country Bancorporation
99
Country Bankers, Inc
628
County Bancshares, Inc
573
Coweta Bancshares, Inc
218
Cowlitz Bancorporation
163
Crescent Banking Company
380
Crossroads Bancshares, Inc
722
Crosswhite Bankshares, Inc
218
CS Bancshares, Inc
380, 795
CSB Bancorp Inc
99
Daupin Deposit Corporation
573
Dawson Corporation
380
Decatur Investment, Inc
963
Denmark Bancshares, Inc
876
Deuel County Interstate Bank Company
963, 966
Dickinson Financial Corporation
722
Dixon Bancshares, Inc
380
Donnelly Bancshares, Inc
722
DunC Corp
571
Dunlap Iowa Holding Co
963
Eagle Financial Services, Inc
99
Edwards Brothers Holding Company, Inc
628
Elkton Holding Company
218
F & M Bancorporation
573
F & M National Corporation
380
F. Calvin Packard Family Limited Partnership
218
F.N.B. Corporation
101
F.S.B. Bancorporation, Inc. of Fort Morgan ESOP
219
F.S.B., Inc
550, 796
F.W.S.F. Corporation
722
Farmers National Bancorp, Inc
99
Farmers State Bancshares, Inc
571
Farmers State Corporation
218
Farmersville Bancshares, Inc
163
FBOP Corporation
723
Fidelity Southern Corporation
967
Fifth Third Bancorp
165, 573
Financial Institutions, Inc
628
Financial Investors of the South, Inc
219
First Alabama Bancshares, Inc
101
First American Bank of Virginia
705
First Autauga Bancshares, Inc
309
First Bancorp of Kansas
964
First Bancorp, Inc
101, 571
First Bancshares Corporation
628
First Bancshares of St. Landry, Inc
136
First Bank System, Inc
571, 948
First Banks, Inc
454
First Beardstown Bancorp, Inc
163
First Busey Corporation
165
First Capital Bancorp, Inc
454
First Cecilian Bancorp, Inc
99
First Central Bancshares, Inc
454
First Citizens Bancorp
722
First Citizens Financial Corp
163
First Commercial Bancshares, Inc
220
First Commercial Corporation
98, 379
First Commonwealth Financial Corporation
381
First Community Bancshares, Corp
628
First Community Bancshares, Inc
165, 310, 795
First Evergreen Corporation
99
First Fidelity Bancorp, Inc
795
First Financial Corporation
100, 795
First Financial Corporation of Idabel
100

A82

Federal Reserve Bulletin • December 1992

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
First Holding Company of Park River Inc
163
First Integrity Bancshares, Inc
628
First Interstate BancSystem of Montana, Inc
939
First Maryland Bancorp
58
First Metro Bancorp
628
First Mid-Illinois Bancshares, Inc
631
First Midwest Corporation of Delaware
964
First National Agency of Bagley, Inc
454
First National Bancorp
163, 874
First National Bank of Artesia Employee
Stock Ownership Plan,
163
First National Johnson Bancshares, Inc
100
First Nebraska Bancs, Inc
873
First Neighborhood Bancshares, Inc
219
First of America Bank Corporation
162, 371
First Security Financial Corporation
627
First Southeast Missouri Bancorporation
628
First State Bancorp of Princeton, Illinois, Inc
795
First State Bancshares, Inc
629
First Tule Bancorp of Delaware, Inc
454
First Union Corporation
310, 335, 382, 797
Firstar Corporation
165, 219, 630, 722, 964
Firstar Corporation of Illinois
219, 965
FirstBank Holding Company Employee
Stock Ownership Plan
99, 873
Firstbank of Illinois Co
874
Flatonia Bancshares-Delaware, Inc
164
Flatonia Bancshares, Inc
164
Fleet/Norstar Financial Group, Inc
570
Flower Mound Bancshares, Inc
100
FNB Bancorporation, Inc
164
Forbes First Financial Corporation
381
Fort Rucker Bancshares, Inc
965
Fortress Bancshares, Inc
629
Fourth Financial Corporation
796
Franklin Financial Services Corporation
573
Friendship Bancshares, Inc
571
FSB Bankshares, Inc
874
Fuji Bank, Limited, Tokyo, Japan
382
Galatia Bancorp, Inc
309
Georgia Bank Financial Corporation
164, 964
Glacier Bancorp, Inc
713
Glen Burnie Bancorp
454
Golden Financial Corporation
618
Gore-Bronson Bancorp, Inc
784
Granville Bancshares, Inc
100
Grayson Bankshares, Inc
454
Guaranty Development Company
874
Harbor Bankshares Corporation
964
Hardwick Holding Company
100
Harleysville National Corporation
572
Haugo Bancshares, Inc
102
Hawkeye Bancorporation
964
Heartland Bancorp, Inc
964
Heartland Bancshares, Inc
100
Henning Bancshares, Inc
164
Heritage Financial Services, Inc
100, 381
Hill Bancshares, Inc
629
Hinsbrook Bancshares, Inc
381
HMS Holdings, Inc
214
HNB Corporation
455
Huntington Bancshares Inc
61
Independence Bancshares, Inc
219
Independence Community Bank Corporation
383
Independent Bankshares Corporation
874
Interbank Holding Corporation
139
Investors Banking Corporation
309
J & L Holdings Limited Partnership
629
J.P. Morgan & Co., Incorporated
723
Johnson Holdings, Inc
311
Jones Bancorp, Inc
874

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Kansas Bank Corporation
Key Centurion Bancshares, Inc
Keystone Financial, Inc
KLT Bancshares, Inc
KSAD, Inc
Lake Forest Bancorp, Inc
Lakeland First Financial Group, Inc
Laredo National Bancshares, Inc
Leachville State Bancshares, Inc
Liberty Bancorp, Inc
Lindo, Inc
Lisco State Company
Lockhart Bankshares, Inc
Lockhart Bankshares-Delaware, Inc
LoLyn Financial Corporation
Lost Pines Bancshares-Delaware, Inc
Mabrey Insurance Agency, Inc
Magna Acquisition Corporation
Magna Group, Inc
Mahaska Investment Company
Mahaska Investment Company ESOP
Mahoning National Bancorp, Inc
Manufacturers National Corporation
Marine Corporation
Marquette Bancshares, Inc
Mason-Dixon Bancshares, Inc
Matewan BancShares, Inc
McVille Financial Services, Inc
Meigs County Bancshares, Inc
Mercantile Acquisition Corporation of Kansas I
Mercantile Bancorporation, Inc
100, 377,
Merchants Holding Company
Meridian Bancorp, Inc
Merrill Merchants Bancshares, Inc
Mibank Corporation
Michigan National Corporation
Mid Am, Inc
Mid Penn Bancorp, Inc
Mid-Missouri Bancshares, Inc
Mid-South Bancorp, Inc

164
964
572
309
629
100
572
139
219
964
164
873
455
455
875
629
455
89
89
456
311, 456
310
573
165
796
310
456
796
629
964
966, 965
164, 572
379, 570
875
796
65, 723
966
100
381
572

Mid-South Bancshares, Inc

219

MidAmerican Corporation
Middle Georgia Corporation
Midlothian State Bank Employee Stock
Ownership Trust
Minden Bancshares, Inc
Minden Exchange Company
Minnesota-Wisconsin Bancshares, Inc
MNB Bancshares, Inc
Mohler Bancshares, Inc
Montana Bancsystem, Inc
Montfort Bancorporation, Inc
Morrill & Janes Bancshares, Inc
Morrill Bancshares, Inc
MSB Bancorp, Inc
MSB Shares, Inc
National City Corporation
310, 383,
National Westminster Bank PLC, London, England
NBD Bancorp, Inc
164, 572, 573,
NBD Indiana, Inc
NC Acquisition, Corp
NCNB Corporation
92,
Nevada First Development Corporation
New Mexico National Financial Incorporated
NGLC, Inc
Nichols Bancorp Inc
Niota Bancshares, Inc
NoDak Bancorporation
North American Bancorp, Inc
North Bank Corporation
North Platte Corporation

629
629

552,
....
870,
141,

572
381
381
381
965
965
456
573
333
333
722
219
631
953
966
966
383
162
299
965
796
219
455
722
629
875
381

Index to Volume 78

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Northland Bancshares, Inc
723
Northwest Bancorporation, Inc
572
Northwest Bancshares Corporation
629
Northwest Financial Corp
455
Norwest Corporation
101, 165, 287, 456,
573, 723, 875, 876, 966
Norwest Financial Services, Inc
723
Oak Bancorporation
100
Ohio Bancorp
381
Ohio County Community Bancshares, Inc
310
Ohio Valley Banc Corp
875
Ohnward Bancshares, Inc
216
Old National Bancorp
219
Old Second Bancorp, Inc
164
Old State Bank Corporation
455
Orangeville Bancorp, Inc
219
Otto Bremer Foundation and Bremer
Financial Corporation
876
P.N.B. Financial Corporation
796
Padgett Agency, Inc
219
Park Bankshares, Inc
629
PBA Financial Corporation
381
Peach State Bankshares, Inc
722
People's Savings Financial Corp
220
Peoples Bancorporation, Inc
455
Peoples Bancshares, Inc
572
Peoples First Corporation
381
Peoples Preferred Bancshares, Inc
572
Peotone Bancorp, Inc
572
Phenix-Girard Bancshares, Inc
219
Pine State Bancshares, Inc
381
Pioneer Bancshares, Inc
629
PNC Financial Corp
294, 797, 876
PNC Financial Corporation
876
Ponca Bancshares, Inc
100
Porter Bancshares, Inc
722
Prairie Bancorp, Inc
629
Prairie Bancshares, Inc
164
Prairieland Bancorp, Inc
966
Premier Financial Bancorp, Inc
629, 630
Princeton National Bancorp, Inc
455
Provident Bancorp, Inc
68, 381
Pyramid Bancorp, Inc
875
Regency Bancshares, Inc
875
Republic Financial Corporation
164
Republic New York Corporation
955
Resource One, Inc
965
Rockwood Bancshares, Inc
796
Romy Hammes Bancorp, Inc
100
Roscoe (Delaware), Inc
796
Roscoe Financial Corporation
796
Saban, S.A., Panama City, Panama
955
San Bancorp
455
Sarasota BanCorporation, Inc
630
Second Bancorp, Inc
382
Second Century Financial Corporation
965
Security Bancshares, Inc
722
Security Capital Bancorp
962
Security Shares, Inc
787
Shawnee Bancshares, Inc
100
Shorebank Corporation
619
Skandinaviska Enskilda Banken, Stockholm, Sweden .. 868
Sky Valley Bank Corp
164
Slippery Rock Financial Corporation
572
Society Corporation
302, 722
South Central Bancshares, Inc
630
Southern Banking Corporation
455
Southern National Corporation
309, 626
SouthTrust Corporation
381, 570, 710, 873
SouthTrust of South Carolina, Inc
873
Southwest Bancshares, Inc
164, 875

A83

Pages
Bank Holding Company Act of 1956—Continued
Orders issued under—Continued
Standard Bancorporation, Inc
100
State Bancorp, Inc
219
State Financial Services Corporation
572
State National Bancshares, Inc
164
Stearns Financial Services, Inc
102
Stichting Administratiekantoor ABN AMRO Holding,
Amsterdam, The Netherlands
296
Stichting Prioriteit ABN AMRO Holding,
Amsterdam, The Netherlands
296
Stock Exchange Financial Corporation
722
Stockgrowers State Banc Corporation
796
Sumitomo Bank, Limited
101
Summit Bancorp, Inc
381, 796
Sun Banc, Corp
796
Sun Banks, Inc
162
Sun Financial Corporation
965
SunTrust Banks, Inc
162
Swainsboro Bankshares, Inc
630
Swisher Bankshares, Inc
382
Synovus Financial Corporation
965
Tate Financial Corporation
100
Taylor Bancshares, Inc
706
TB&C Bancshares, Inc
455, 965
TCBankshares, Inc
219
Tennessee Bancorp, Inc
219
Texas Regional Bancshares, Inc
289
Texas State Bank
289
965
Tomoka Bancorp, Inc
Trans Financial Bancorp, Inc
309
Triangle Bancorp, Inc
382
Tulsa Valley Bancshares Corporation
382
U.K. Bancorporation, Inc
875
U.S. Bancorp
789
U.S. Trust Corporation
336
Union Bancorp, Inc
455
Union Bancorporation
165
Union Bancshares, Inc
164
Union Planters Corporation
70, 455, 796
Union Savings Bancshares, Inc
165
United Bank Corporation
101
United Central Bancshares, Inc
382
United Community Banks, Inc
875
United Missouri Bancshares, Inc
164
United Nebraska Financial Company
310, 966
United Security Bancorporation
102
USBANCORP, Inc
382, 796
Valley Bancorporation
631
Van Diest Investment Company
219
Vidalia Bankshares, Inc
630
Villages Bancorporation, Inc
455
Vogel Bancshares, Inc
219
Wabasha Holding Company
966
Wabasso Bancshares, Inc
165
Wachovia Corporation
795
Wall Street Holding Company
382
Wellington Delaware Financial Corporation
875
Wes-Tenn Bancorp, Inc
165
Wesbanco, Inc
572
West Milton Bancorp, Inc
572
West One Bancorp
102, 722
Western Bancshares, Inc
875
Western Washington Bancorp
797
Whitaker Bancshares, Inc
630
Whitaker Bank Corporation of Kentucky
165, 630
Wilson Bank Holding Company
875
Wilton Holding Company
310
Winton Jones Limited Partnership
797
Worthen Banking Corporation
101
WSB Bancshares, Inc
875
Bank Holding Company Performance Report
517

A84

Federal Reserve Bulletin • December 1992

Pages
Bank holding companies
Nonbank subsidiary amendment to Regulation Y
697
Streamlining of procedures for handling applications
752
U.S. in French market, proposed action, April 10, 1992 ... 429
Bank Insurance Fund
905, 908
Bank Merger Act
Orders issued under
1st Source Bank
94, 574
1st United Bank
166
American Bank
574
Auburn State Bank
103
BancFirst
798
Bank of Hampton Roads
724
Bank One, Champaign-Urbana
876
Centura Bank
967
Centura Interim Bank
103
Chemical Bank
220,311
Chemical Bank Michigan
166
Citizens Fidelity Bank and Trust Company ... 166, 574, 724
City Center Bank of Colorado
798
CivicBank of Commerce
383
Clifton Trust Bank
103
Cole Taylor Bank
967
Commercial and Savings Bank
103
Commercial Trust and Savings Bank
631
Commonwealth Bank
166
967
Custer County Bank
DeMotte State Bank
876
Farmers State Bank of Western Illinois
716
Fifth Third Bank, Cincinnati, Ohio
96, 166
Fifth Third Bank, Columbus, Ohio
96
First of America Bank-Ann Arbor
450, 627
First State Bancorporation, Inc
103
First State Bank of Taos
103
Fleet Bank of New York
798
Fleet Bank-NH
217
Interim Central Bank
383
Johnstown Bank and Trust Company
724
King Bancshares, Inc
574
Lorain County Bank
166
Manufacturers and Traders Trust Company
102, 621
Mellon Bank (MD)
967
Meridian Bank
571
Old Kent Bank and Trust Company
220
Old Kent Bank-Chicago
166
Peoples State Bank
383
Provident Bank
383
SouthTrust Bank of Pinellas County
103
State Bank and Trust Company
383
Tri-State Bank
383
United Missouri Bank of Paris
103
Vectra Bank
724
Vectra Bank of Englewood
724
Wesbanco Bank
220
Bank mergers, statement
262
Bank of Credit and Commerce International
Basle Committee report, announcement
685
Foreign Bank Supervision Enhancement Act of 1991,
announcement
428
Statement
504
Bank Secrecy Act
521
BankAmerica Corporation
Extension of comment period on application
208
Security Pacific Corporation, announcement
regarding public meeting
126
Banking markets
Developments, statement
905
Household use of financial services, article
169
Japanese, article
579
Staff study on size, from mortgage loan rates
117
Banking on the Brink, publication in statement on banking
developments
906
Banking system in the United States, statement
597

Pages
Basle Capital Accord
587, 670
Basle Committee on Banking Supervision
587, 682, 685
Bennett, Charles W., appointed Assistant Director,
Cash and Fiscal Agency/Definitive programs,
Reserve Bank Operations and Payment Systems
688
Bermudez, Michael L., article
727
Biern, Herbert A., promoted to Deputy Associate Director,
Division of Banking Supervision and Regulation — 687
Board of Governors (See also Federal Reserve System)
Consumer Advisory Council (See Consumer Advisory
Council)
Expenses and budget, statement
516
Federal Open Market Committee (See Federal
Open Market Committee)
Litigation (See Litigation)
Members
Greenspan, Alan, reappointment as Chairman
272
Lindsey, Lawrence B., appointment
36
List, 1913-92
105, 576
Phillips, Susan Meredith, appointment
36
Policy statements
Institutions to analyze lending patterns
332
Relocation of subsidiaries to another state, rescission .. 332
Publications (See Publications in 1992)
Regulations (See Regulations)
Staff
Changes
Amer, Howard A
687
Bennett, Charles W.
688
Biern, Herbert A
687
Cole, Roger T.
687
Dennis, Jack
688
Edwards, Gerald A., Jr.
687
Fox, Lynn S
332
Gamer, James 1
687
Hambley, Winthrop P.
332
Hamilton, Earl G
688
Henderson, Dale W
127
Homer, Laura M
687
Houpt, James V.
687
Howard, David H
126
Jennings, Jack P.
687
Maland, Ellen
834
Marquardt, Jeffrey C
688
Mingo, John J
127
Parrish, John H
688
Plotkin, Robert S
754
Pugh, Rhoger H
687
Roseman, Louise L
688
Struble, Frederick M
687
Summers, Bruce J
688, 834
Wassom, Molly S
687
Young, Florence M
688
Zemel, Robert J
754
Commentary
Regulation B, revision to clarify
428
Studies (See Staff studies)
Statements to the Congress (See Statements
to the Congress)
Thrift Institutions Advisory Council (See Thrift
Institutions Advisory Council)
Boemio, Thomas R., article
107
Bonds, indexed, statement
603
Book-entry securities
730, 735
Bretton Woods Agreements Act of 1945
512
British index-linked gilts
606
Bureau of Public Debt, U.S. Treasury
734

CANNER, Glenn B„ articles
Census, Bureau of the
CenTrust Savings Bank

652, 801
4
505

Index to Volume 78

Pages
Changes in family finances from 1983 to 1989: evidence
from the survey of consumer finances, errata
274
Check collection, same day settlement, amendment
923
Chrysler Motor Company, exports
320
Civil disturbances, financial services to affected cities
532
Code to Federal Regulations, rule to exclude some
transactions from section 23A of Federal Reserve Act .... 867
Cole, Roger T., promoted to Deputy Associate Director,
Division of Banking Supervision and Regulation
687
Columbia Gas
889
Commercial Bank Examination Manual
680
Commercial banks
Assets
461
Capital
464
Capital, in statement
670
Liabilities
463
Regulatory burden, statement
607
Commercial paper
Asset-backed
885
Programs, article
107
Market, article
879
Committee on Interbank Netting Schemes
182
Committee on Payment and Settlement Systems
182
Commodity Credit Corporation, 1990, program, statement . . 5 1 1
Community Reinvestment Act
Examination ratings availability
125
Fair-lending compliance
814
Home mortgage disclosure, statement
500
Home mortgage lending, statement on discrimination
194
Comptroller of the Currency, Office of .... 3, 273, 332, 532, 835
Conference of State Bank Supervisors, joint agreement
834
Congressional Joint Committee on Taxation
3
Conlan, Sandra
533
Consumer Advisory Council
Lease-Purchase Agreement Act, statement
612
Meetings
332, 532, 832
Members, new appointments
204
Nominations, announcement
685
Consumer Credit Protection Act
532, 612
Consumer Finances, 1989 survey
663
Consumer finances, article
1
Consumer Handbook on Adjustable Rate Mortgages,
brochure
273
Consumer Leasing Act
612
Consumer's Guide to Mortgage Lock-ins, brochure
273, 526
Consumer's Guide to Mortgage Refinancings,
brochure
273, 526
Consumer's Guide to Mortgage Settlement Costs, brochure . 273
Corrigan, E. Gerald
President, Federal Reserve Bank of New York
682
Statements
199, 258
Credit
Availability and terms, statement
746
Bank lending availability, statement
27
Card services, development, article
652
Ratings of investors, commercial paper market, article .... 881
Credit and Commerce American Holdings, N.V.
505
Current population survey
4

DEALER-PLACED paper
Decatur Federal Savings and Loan Association
Dennis, Jack, appointed Assistant Director, Financial
Examinations and Audit Review, Division of Reserve
Bank Operations and Payment Systems
Depository institutions (See specific types)
Reserve requirements (See Reserve requirements and
Regulations: D)
Directors, Federal Reserve Banks and Branches, list
Discount rate (See Interest rates)
Discover card, Sears Roebuck and Company
Drexel Burnham Lambert Group

883
807
688

386
654
182

A85

Pages
EARNINGS and expenses (See Income and expenses)
Economic conditions, analyzing affecting forces, statement . 191
Economic Recovery Tax Act
267
Economy
Monetary policy report to the Congress
Business
229, 639
External
231, 641
Government
230, 640
Household
228, 637
Labor
233, 643
Price developments
234, 644
Statements by Chairman Greenspan
264, 673
Poverty and inequality in America, aspects of, statement . 513
Statements by Chairman Greenspan
253, 329
Edwards, Gerald A., Jr.
Appointed Assistant Director, Division
of Banking Supervision and Regulation
687
Article
107
Elliehausen, Gregory E., article
169
Equal Credit Opportunity Act (Regulation B)
193, 808
Ettin, Edward C., statement
262
European Community
33
Expedited Funds Availability Act
Regulation CC, amendment
207
EZ clear, FRB services
734

FAIR Housing Act
193, 808, 816
Fair Housing and Equal Opportunity, Department
of Housing and Urban Development
819
Fair Trade in Financial Services Act of 1991, statement
31
Family finances, changes in, article
1
Family Support Act of 1988
895
Farmers Home Administration
802
273, 332, 505, 532,
Federal Deposit Insurance Corporation
597, 672, 728, 835, 905
Federal Deposit Insurance Corporation
Improvement Act of 1991
Actions taken under
Alex Sheshunoff & Company, Inc
622
Amalgamated Clothing and Textile Workers Union
720
ANB Corporation
794
ASB Bankcorp, Inc
720
Banc One Corporation
717, 872
Belmont Bancorp
794
Buchanan Ingersoll, P.C
623
B W 3 Bancorporation

961

CCNB Corporation
Citizens Bancshares of Eldon, Inc
Citizens Bancshares of Marysville, Inc
CNB, Inc
Colonial BancGroup, Inc
Commercial National Financial Corporation
County Bancshares, Inc
FBOP Corporation
First Banks, Inc
First Farmers & Merchants Corporation
First Fidelity Bancorporation
Firstar Corporation
Fishkill National Corporation
George Gale Foster Corporation
Great Lakes Financial Resources, Inc.,
Employee Stock Ownership Plan
Illinois Financial Services, Inc
Mid Am, Inc
NBD Bank, National Association
NBSC Corporation
Norwest Corporation
Old Kent Financial Corporation
Panhandle Bancshares, Inc
Peoples Bancshares, Inc
Peoples Savings, Inc
Puget Sound Bancorp

872
961
959
794
794
721
570
721
794
872
962
626
721
721
794
570
962
626
872
452
873
453
873
873
794

A86

Federal Reserve Bulletin • December 1992

Pages
Federal Deposit Insurance Corporation
Improvement Act of 1991—Continued
Actions taken under—Continued
Southern National Corporation
570
SouthTrust Corporation
570, 794, 962
SouthTrust of Florida, Inc
962
SouthTrust of Georgia, Inc
570
West Shore Bank Corporation
719
Banking system, statement
597, 609
Credit availability
748
H.R.5170, statement
525
Monetary policy statement
676
Newspaper publication rule
833
Prompt Corrective Action rule
833, 835
Real estate appraisal regulation, delay
126
Regulation CC amendment to implement
207
Regulation O amendment
533
Regulation Y amendment
429, 533
Federal Financial Institutions Examination Council
CRA examination ratings available
125
Federal Reserve supervision of bank lending
on commercial real estate, statement
684
Home mortgage disclosure, statements
193, 500
Home mortgage dislosure, article
801
Policy statement
332
Prompt corrective action provision
906
Real estate appraisal requirements
828
Regulatory burden, statement
609
Report of condition and income, credit card article
661
Revised policy on securities activities
207
Federal Home Loan Mortgage Corporation
108, 429, 819
Federal Housing Administration
528, 802
Federal Institutions Reform, Recovery,
and Enforcement Act of 1989
503
Federal National Mortgage Association
108, 429, 819
Federal Open Market Committee
Government securities statement
198
Policy actions, record .. 38, 128, 280, 431, 534, 689, 755, 911
31
Federal Register, in statement
Federal Reserve Act
523, 727, 833, 867
Federal Reserve and Treasury foreign exchange
operations (See Foreign exchange operations)
Federal Reserve Bank Branch Modernization Act
523
Federal Reserve Banks
Atlanta
733
Boston
809
Branches
Birmingham
523
El Paso
524
Houston
523
Nashville
523
Pittsburgh
733
San Antonio
524
Budgets
520
Cleveland
735
Depository services
728
Directors, list
386
District Banks, responsibility to government
securities market
256
EZ clear
734
Fedline
734
Fiscal agency services
729
Fiscal agents and depositories of U.S., article
727
Kansas City
425, 519
Letters of credit
734
Minneapolis
733
New York
East Rutherford Operations Center
520
Federal Reserve Bank services
735
Government securities market,
statements
196, 199, 258, 259, 425, 832
Operating income, release of preliminary figures,
announcement
207

Pages
Federal Reserve Banks—Continued
Philadelphia
733
Richmond
734
Federal Reserve Board (See Board of Governors)
Federal Reserve System (See also Board of Governors)
Expenses and budget, statement
515
Membership 1913-92, list
105, 576
Federal Tax Deposit Redesign
733
Federal Trade Commission
504, 816
Fedline
425, 733, 734
Fedwire
731, 909
Financial Institutions Reform, Recovery,
and Enforcement Act of 1989
Orders issued under
Advance Bancorp, Inc
98
Citizens Financial Services, Inc
162
First Commercial Corporation
379
First United Bancshares
379
Meridian Bancorp, Inc
379
Simmons First National Corporation
379
Real estate appraisal regulation
126
Financial Management Service
733
Financial services
Cities affected by civil disturbances
532
Household use, article
169
Financing (See Loans)
First American Banks
505, 506
First American Bankshares
508
First American Corporation
508
First Liberty Loan Bonds
727
First of Omaha Service Corporation
654
Ford Motor Company, exports
320
Foreign Bank Supervision Enhancement Act
601
H.R.4803, statement
496
Foreign Bank Supervision Enhancement Act of 1991
Interim regulation, announcement
428
Statement
34
Foreign Exchange Law of 1980
582
Foreign exchange operations of the Treasury
and Federal Reserve, reports
19, 242, 484, 738
Foreign stocks, list of marginable
208, 429, 686, 910, 918
Fox, Lynn S., appointed Special Assistant
to the Board for Congressional Liaison
332
Frankel, Allen B., article
579
Friedman, Milton, in article
403
Full Employment and Balanced Growth Act of 1978
(See Monetary policy: Reports to the Congress)
Functional Cost Analysis program
658

G-7 Summit
Garner, James I., promoted to Deputy Associate Director,
Division of Banking Supervision and Regulation
Garwood, Griffith L., statement
General Accounting Office
3, 510,
General Motors, exports
Gilbert, Adam, staff study
Glass-Steagall Act
Gollob, Emily, staff study
Government National Mortgage Association
108, 465,
Government Securities Act of 1986
Government securities markets,
statements
195, 199, 251, 256,
Government, state and local, long-term trends, article
Grandfathering rights, in statement
Grants, state and local government
Greene, Margaret L., report
Greenspan, Alan
Analyzing the forces affecting the economy, statement ....
Bill Taylor, statement
Economy, the performance of, statements
253,
Indexed bonds, statement

740
687
612
829
320
182
603
182
819
257
258
892
33
896
19
191
752
329
603

Index to Volume 78

A87

Pages
Greenspan, Alan—Continued
Monetary policy and nomination to second term,
statement
201
Monetary policy reports to the Congress, statements . 264, 673
Reappointment as Chairman of the Board of Governors .. 272
Stock market developments in Japan, statement
417
Tax policy, statement
120
Group of Ten (G-10) countries
315

Pages
JAPAN Fair Trade Commission
584
Japan's Securities and Exchange Law
586
Japanese banking system
579
Japanese economy
740
Japanese stock market developments, statement
417
Jennings, Jack P., appointed Assistant Director,
Division of Banking Supervision and Regulation
687
Joint Report on the Government Securities Market
421
Justice, U.S. Department of
503, 505, 807, 816

H.R.I245, One dollar coin act of 1991, statement
529
H.R.3927, government securities, statement
423
H.R.4398, Federal Reserve Bank Branch
Modernization Act, statement
523
H.R.4450, Treasury auctions
422
H.R.4803, Non-Proliferation of Weapons of Mass
Destruction and Regulatory Improvements
Act of 1992, statements
495, 499
H.R.5170, Mortgage Refinancing Reform Act of 1992,
statement
524
Hambley, Winthrop P., appointed Special Assistant
to the Board for Congressional Liaison
332
Hamilton, Earl G., appointed Assistant Director,
Protection program, Division of Reserve Bank
Operations and Payment Systems
688
Hargraves, Lauren, staff study
182
Health and Human Services, U.S. Department of
3
Henderson, Dale W., Associate Director, Division
of International Finance
127
Highly leveraged transactions, discontinuance
of supervisory definition, announcement
273
HMDA Task Force Report
817
Home equity lines of credit
Amendment to Regulation Z
699
Disclosures, final rule adopted
686
Home Mortgage Disclosure Act of 1990
Budget statement
517
Data on residential lending, article
801
H.R.5170, statement
525
Lending discrimination, statement
193
Statement
500
Home mortgage disclosure, article
801
Home Mortgage Lending and Equal Treatment, FFIEC
publication
814
Home Mortgages: Understanding the Process
and Your Right to Fair Lending, brochure
273, 814
Homer, Laura M„ appointed Assistant Director,
687
Division of Banking Supervision and Regulation
Houpt, James V., appointed Assistant Director,
Division of Banking Supervision and Regulation
687
Housing and Urban Development, Department of
504, 816
Housing Initiatives Program
819
Howard, David H., Senior Adviser,
Division of International Finance
126
Humphrey Hawkins Act (See Monetary policy:
Reports to the Congress)

KAVANAGH, Barbara, article
Kelley, Edward W„ Jr.
Commodity Credit Corporation, 1990, statement
Federal Reserve System, expenses and budget, statement .
Kennickell, Arthur, article
Kuwait, invasion of by Iraq
226, 227, 242, 253,

INCOME and expenses
Federal Reserve Banks, announcement
207
Independence Bank
508
Index-linked gilt, British
606
Industrial production and capacity utilization
Releases
24, 119, 185, 248, 326, 414,
489, 594, 667, 743, 825, 902
Interest rates
Discount rate change, amendment
45, 697
Discount rate change, announcement
36, 125, 685
Internal Revenue Service
604, 733
International Banking Act of 1978, in statement
32
International Monetary and Financial Policies
511
International transactions in 1992
313

107
511
515
1
313

LAWARE, John P.
Banking system developments, statements
597, 905
Current policies on examination
and supervision of institutions, statement
188
Mortgage lending discrimination, statement
193
Non-Proliferation of Weapons of Mass Destruction and
Regulatory Improvements Act of 1992, statement
495
Real estate appraisal requirements, statement
828
Regulatory burden, statement
607
Lease-Purchase Agreement Act
612
Legislation (See subject or specific name of act)
Lindsey, Lawrence B.
Home Mortgage Disclosure Act, statement
500
Member, Board of Governors, appointment
36
Mortgage Refinancing Reform Act of 1992, statement .... 524
Poverty and inequality in America, economic aspects,
statement
513
Litigation
Final enforcement decision issued by Board of Governors
Magee, James L
968
Final enforcement orders issued by Board of Governors
Buffalo Bank
799
Correll, Blaine E
457
Dellinger & Company
878
Farmers and Merchants Bank of Long Beach
384
Foster, James V.
725
Genoa Banking Company
975
Habib Bank AG Zurich, Zurich, Switzerland
725
Marshall County Bankshares, Inc
799, 975
Midwest Securities Trust Company
975
National Bank of Pakistan, Karachi, Pakistan
878
Sexton, Thomas J
725
State Bank and Trust of Colorado Springs
457
Thirty Second Avenue Corporation
799
Zaun, Dennis J
725
Zeisberger, Claudia
799
Pending cases involving
the Board of Governors
103, 166, 220, 311, 384, 456,
574, 631, 724, 798, 877, 967
Written agreements approved by Federal Reserve Banks
American Bank & Trust of Polk County
799
Antioch Holding Company
575
Arrow Financial Corporation
726
B.M.J. Financial Corporation
221
Baltimore Bancorp
799
Bank of Boston Corporation
726
Bank of Forest
632
Bank of the Commonwealth
221
Bank of White Sulphur Springs
384
Bank South Corporation
457
BankSouth Corporation
878
Citizens Bank
878
CivicBank of Commerce
878
Connecticut Bancorp, Inc
457
Constellation Bancorp
726

A88

Federal Reserve Bulletin • December 1992

Pages
Litigation—Continued
Written agreements approved by Federal Reserve
Banks—Continued
Cuyamaca Bank
726
Farmers National Bancorp of Cynthiana, Inc
457
Farmers Savings Bank
975
First American Bank
799
First Bancorp of Oklahoma, Inc
726
First Eastern Corp
726
First Indo-American Bank
632
First New York Business Bank Corp
167
First Prairie Bankshares, Inc
167
First State Bancorp
878
Georgetown Bancorp, Inc
385
Glendale Bank of Pennsylvania
975
Greater Chicago Financial Corporation
385
Guaranty Bancshares Corporation
632
Guardian Bank
976
Hibemia Corporation
221
High Point Financial Corp
976
Home Port Bancorp, Inc
799
Ken-Caryl Investment Company
878
Lincoln Financial Corporation
632
Mount Vemon Bancshares, Inc
878
Multibank Financial Corp
385
National Commercial Bank, Saudia Arabia
878
Northeast Bancorp, Inc
457
Pacific Western Bancshares
575
Paonia Financial Services Inc
878
Presidential Holdings, Inc
167
Prosperity Bank & Trust Company
385
Resource Bank
104
Security Bank Corporation
457
Shawmut National Corporation
976
Society for Savings Bancorp, Inc
221
Union Texas Bancorporation, Inc
632
UST Corp
799
Val Cor Bancorporation, Inc
221
West Coast Bank
221
Westport Bancorp, Inc
104
Loans
Commercial real estate, statement on securitization of .... 492
Local Government Assistance Corporation of New York .... 900
Louisiana Recovery District
900
Luckett, Charles A., article
652

MAASTRICHT treaty
Maland, Ellen, joined Office of the Secretary as Visiting
Assistant Secretary
Management and Budget, Office of, study
Manville Corporation
Manypenny, Gerald D., article
Marquardt, Jeffrey C., appointed Assistant Director,
Payment System Risk and Net Settlement program,
Division of Reserve Bank Operations
and Payment Systems
Marquette National Bank
Masterfile
Material adverse change clause
Mattingly, J. Virgil, statement
McAdoo, W.G., Secretary of the Treasury
McDonough, William J., articles
McFadden Act
McLaughlin, Mary M., article
Mead, Richard, staff study
Medicaid
Milgrom, Paul, in article
Mingo, John J., appointed Adviser, Division
of Research and Statistics
Monetary policy
Reports to the Congress
Statements

739
834
829
888
727

688
654
520
114
504
727, 735
484, 738
603
459
182
894
403
127
223, 633
264, 673

Pages
Money stock, revisions
274
Montgomery Ward
653
Moody's Investors Service
884
Morgan, Paul B., article
579
Morisse, Kathryn A., article
313
Mortgage and Realty Trust
888
Mortgage Bankers Association of America
817
Mortgage lending, statement on discrimination
193
Mortgage Refinancing Reform Act of 1992, statement
524
Mullins, David W., Jr.
Government securities markets,
statements
195, 251, 256, 421
NATIONAL Advisory Council
511
514
National Association of Realtors
National Association of Securities Dealers
258
National Bank of Georgia
505
National Examiners Conference
188
National Housing Act
528
National Information Center
517
National Institute on Aging
3
National Survey of Small Business Finances,
public-access data tape available
208
National Technical Information Service,
Federal Computer Products Center
209
National Treatment, study
32
New England states, changing capital ratios
671
New York State Banking Department
810
Newspaper publication requirement, reduction,
issuance of rule
833
Nikkei Stock Average
591
Non-Proliferation of Weapons of Mass Destruction and
Regulatory Improvements Act of 1992, H.R.4803,
statement
495
Noncumulative perpetual preferred stock in tier 1 capital .... 207
North American Free Trade Agreement
315

OFFICE of Thrift Supervision
332
Olympia and York Developments Ltd
683
Omnibus Budget Reconciliation Act of 1990
895
One Dollar Coin Act of 1991
529
Optima card, American Express
654
Organisation for Economic Co-operation
and Development
33, 319
Over-the-counter stocks, list of marginable
Revision, announcement
208, 429, 686, 910, 918

PARKINSON, Patrick, staff study
Parrish, John H., Assistant Director, Fedwire Section,
Division of Reserve Bank Operations
and Payment Systems
Payment Systems, Inc
Payments system risk program, reduction
Philadelphia National Bank case, Supreme Court decision ..
Phillips, Susan Meredith
Member, Board of Governors, appointment
Plotkin, Robert S., Assistant Director, Division of Banking
Supervision and Regulation, retirement
Post, Mitchell A., article
Poverty and inequality in America, economic aspects,
statement
Primary Dealers Act of 1988
Primary dealers controlled by French firm, announcement ...
Production, industrial (See Industrial production
and capacity utilization)
Prompt corrective action, issuance of rule
833,
Proposed actions
Branch closings by state member banks,
October 2, 1992
Capital adequacy guidelines, revision, February 19, 1992 .

182
688
663
909
170
36
754
879
513
832
832
835
909
274

Index to Volume 78

Pages
Proposed actions—Continued
Federal Deposit Insurance Corporation
Improvement Act of 1991, uniform real
estate lending standards, July 14, 1992
686
Regulation B, interpretation regarding data collection
on loan applications, December 23, 1991
126
Regulation C, revise to expand coverage of independent
mortgage companies, August 4, 1992
754
Regulation T, extension of comment period,
October 13, 1992
910
Regulation T, review, August 13, 1992
754
Regulations O and Y, revise to conform
to the Federal Reserve Act, February 13, 1992
274
Reserve requirements, change in computing procedure,
March 5, 1992
332
Risk-based capital guidelines, to modify
April 10, 1992
429
July 30, 1992
686
Ten percent revenue test, July 23, 1992
686
Truth in lending, revisions for home equity lines
of credit, December 26, 1991
126
Truth in Savings Act, new regulation DD, April 3, 1992 . 429
Public Debt Accounting and Reporting System
733, 734
Publications in 1992
78th Annual Report, 1991
332
Actions of the Board: Applications and Reports Received . 125
Annual Statistical Digest, 1991
910
Pugh, Rhoger H., appointed Assistant Director,
Division of Banking Supervision and Regulation
687

REAL estate
Appraisal Regulation, delay in effective date
126
Appraisal requirements, statement
828
Commercial loans, statement on securitization of
492
Real Estate Settlement Procedures Act
524
Regional Delivery System
520, 733
Regulations (Board of Governors, See also Rules)
Amendments and revisions
A, Extensions of Credit by Federal Reserve Banks
Discount rate, reduction
45, 135, 697
AA, Unfair or Deceptive Acts or Practices
Foreign Supervision Enhancement Act of 1991,
implementation
541
B, Equal Credit Opportunity
Data collection on loan applications,
proposed action
126
Foreign Bank Supervision Enhancement Act
of 1991, implementation
541
C, Home Mortgage Disclosure
Financial institutions to use 1990 census tract
numbers, revision
37, 46
Foreign Bank Supervision Enhancement
Act of 1991, implementation
541
CC, Availability of Funds and Collection of Checks
Check settlement, same day
909, 923
Federal Deposit Insurance Corporation
Improvement Act of 1991
753
Federal Deposit Insurance Corporation
Improvement Act, amendment to implement
207
Holds on checks, exception extention
776
D, Reserve Requirements of Depository Institutions
Capital adequacy appendixes
753
Computation process, change
752
Maintenance reserves, computation
769
Net transaction accounts, increase
53
Reduction in reserve requirements on net
transaction balances
333
Subordinated debt, elimination of requirement
for Board approval
770
Teller's checks, clarification of definitions
765
DD, Truth in Savings
Implementation to carry out provisions
832, 845

A89

Pages
Regulations (Board of Governors, See also Rules)—
Continued
Amendments and revisions—Continued
E, Electronic Fund Transfers
Foreign Bank Supervision Enhancement
Act of 1991, implementation
541
F, Interbank Liabilities
Federal Deposit Insurance Corporation
Improvement Act of 1991, requirements
601
G, Securities Credit by Persons Other than Banks,
Brokers, or Dealers
OTC and foreign margin stocks,
lists, revisions
211, 441, 686, 918
H, Membership of State Banking Institutions
in the Federal Reserve System
Capital adequacy appendixes
753
Commodity swaps, interpretation
37, 56
Messenger services, interpretation
544, 601
J, Collection of Checks and Other Items
and Wire Transfers of Funds
by Federal Reserve Banks
Payments system risk program, reduction
921
K, International Banking Operations
Commodity swaps, interpretation
37, 56
Federal Deposit Insurance Corporation
Improvement Act of 1991, requirements
601
M, Consumer Leasing
Foreign Bank Supervision Enhancement
Act of 1991, implementation
541
O, Loans to Executive Officers, Directors, and Principal
Shareholders of Member Banks
Federal Deposit Insurance Corporation
Improvement Act of 1991,
requirements
533, 544, 601
Federal Reserve Act, amendment to revise
to conform with
274
Q, Prohibition Against the Payment of Interest
on Demand Deposits
Truth in Savings Act implementation
844
T, Credit by Brokers and Dealers
OTC and foreign margin stocks,
lists, revisions
211,441,686,918
U, Credit by Banks for the Purpose of Purchasing or
Carrying Margin Stocks
OTC and foreign margin stocks,
lists, revisions
211,441,686,918
X, Borrowers of Securities Credit
OTC and foreign margin stocks,
lists, revisions
211, 441, 686, 918
Y, Bank Holding Companies and Change
in Bank Control
Bank holding companies may act as nonbank
subsidiaries
697
Capital adequacy appendixes
753
Federal Deposit Insurance Corporation
Improvement Act of 1991,
requirements
533, 544, 601
Federal Reserve Act, amendment to revise
to conform with
274
Financial advisory services provision
753
Interim rule
429
Leasing activities, expansion
548
Newspaper requirement, reduction in
844
Permissable nonbanking activities, list augmentation . 774
Regulatory burden, amendments approved
686
Z, Truth in lending
Final rule on home equity lines of credit adopted
686
Foreign Bank Supervision Enhancement
Act of 1991, implementation
541
Home equity lines of credit
To officers
699
Proposed action
126

A90

Federal Reserve Bulletin • December 1992

Pages
Regulations (Board of Governors, See also Rules)—
Continued
Real estate appraisal, announcement regarding delay of
effective date
126
Regulatory Uniformity Project
747
Reinhart, Vincent, article
403
Reserve requirements
Computation process, change
752
Net transaction account, increase
36
Reduction on net transaction account balances,
amendment
333
Transaction accounts, reduction in requirements
272
Resolution Trust Corporation
266, 493, 905
Rhoades, Stephen A., staff study
117
Risk-based capital guidelines, modifications
114, 207, 429
Roseman, Louise L., appointed Assistant Director,
Division of Reserve Bank Operations
and Payment Systems
688
Rotemberg, Julio
664
Rubin, Laura S., article
892
Rule of 78s
527
Rules of Procedure, reduction in newspaper publication
requirement
844
Rules Regarding Delegation of Authority
Authority to approve applications extended
to Federal Reserve Banks
445
Capital adequacy appendixes
753
Expansion of General Counsel duties, amendment
287
Subordinated debt, elimination of requirement
for Board approval
770

SALOMON Brothers
196, 256, 259,
Saloner, Garth
Savings and Loan Insurance Fund
Scher, Roger M., report
Sears Roebuck and Company
SEC Rule 2a-7
Second Banking Directive
Securities
Book-entry
Clearance and settlement in U.S. markets, staff study
French government market
Supervisory policy, revision
U.S. government
Automation process, statement
Market, statements
195, 199, 251,
Proposed legislation, statement
Securities and Exchange Commission ... 107, 196, 251,
Security Pacific Corporation
BankAmerica Corporation, announcement
of public meeting on acquisition
Extension of comment period on application
Semkow, Brian, in article
Senior Loan Officer Opinion Survey
on Bank Lending Practices
Shack-Marquez, Janice, article
Shoko Chukin Bank
Small Business Administration
Smart Exchange
Smith, Dolores S., article
Southeast Banking Corporation, in statement
Special purpose entity, programs
Special-purpose vehicle
Spillenkothen, Richard
Commercial real estate loans securitization, statement
Credit availability and terms, statement
Staff studies
Clearance and settlement in U.S. securities markets
Evidence on the size of banking markets
from mortgage loan rates in twenty cities
Standard & Poor's Corporation

260, 425
664
670
19
653
889
33
730, 735
182
832
207
425
256, 258
421
256, 889
126
208
587
461, 804
1
496
3
732
801
27
109
885
.... 492
746
182
117
109, 889

Pages
State member banks
Branch closings, amendment to Regulation CC
909
CRA examination ratings availability
125
Streamlining of procedures for handling applications
752
Statements to the Congress (including reports and letters)
Analyzing the forces affecting the economy (Chairman
Greenspan)
188
Bank credit availability (Richard Spillenkothen, Director,
Division of Banking Supervision and Regulation)
27
Bank mergers (Edward C. Ettin, Deputy Director,
Division of Research and Statistics)
262
Bank of Credit and Commerce International
504
(J. Virgil Mattingly, General Counsel)
Banking system (Governor LaWare)
597, 905
Commodity Credit Corporation, 1990, program
(Governor Kelley)
511
Credit and bank capital standards (Richard F. Syron,
President, FRB Boston)
670
Credit availability and terms (Richard Spillenkothen,
Director, Division of Banking Supervision
and Regulation)
746
Discrimination in mortgage lending, perspective
(Governor LaWare)
193
Economy, the performance of
(Chairman Greenspan)
253, 329
Examination and supervision of institutions,
current policies (Governor LaWare)
188
Fair Trade in Financial Services Act
(Governor LaWare)
31
Federal Reserve supervision of lending
on commercial real estate
678
Federal Reserve System, expenses and budget
(Governors Angell and Kelley)
515
Foreign Bank Supervision Enhancement Act of 1991
(Governor LaWare)
31
Government securities market
Automation of Treasury auctions (Peter D.
Sternlight, Executive Vice President,
Federal Reserve Bank of New York)
425
Joint report (E. Gerald Corrigan, President,
Federal Reserve Bank of New York)
258
Reforms to regulation
(Vice Chairman Mullins)
195, 251, 256, 421
Report on improvements (E. Gerald Corrigan,
President, Federal Reserve Bank of New York)
199
Home Mortgage Disclosure Act of 1990
(Governor Lindsey)
500
Indexed bonds, proposal (Chairman Greenspan)
603
Lease-Purchase Agreement Act (Griffith L. Garwood,
Director, Division of Consumer
and Community Affairs)
612
Monetary policy and nomination to second term,
statement (Chairman Greenspan)
201
Monetary policy reports to the Congress
(Chairman Greenspan)
264, 673
Mortgage Refinancing Reform Act of 1992
(Governor Lindsey)
524
Non-Proliferation of Weapons of Mass Destruction
and Regulatory Improvements Act of 1992
(Governor LaWare)
495
Poverty and inequality in America, economic aspects
(Governor Lindsey)
513
Real estate appraisal requirements (Governor LaWare)
828
Regulatory burden (Governor LaWare)
607
Securitization of commercial real estate loans
(Donald H. Wilson, Federal Reserve Bank
of Chicago)
492
Securitization of commercial real estate loans
(Richard Spillenkothen, Director, Division
of Banking Supervision and Regulation)
492
Stock market developments in Japan
(Chairman Greenspan)
417
Tax policy (Chairman Greenspan)
120

Index to Volume 78

Pages
Statements to the Congress (including reports and
letters)—Continued
United States One Dollar Coin Act of 1991
(Theodore E. Allison, Assistant to the Board
for Federal Reserve System Affairs)
529
Stehm, Jeff, staff study
182
Sternlight, Peter D., statement
425
Stock market
Developments in Japan, statement
417
Stock market credit, over-the-counter stocks
(See Over-the-counter stocks, list of marginable;
Foreign stocks, list of marginable; and Regulations:
G, T, U, and X)
Strategic Petroleum Reserves
321
Struble, Frederick M., appointed Associate Director
for Policy, Division of Banking Supervision
and Regulation
687
Sumitomo Bank
582
Summers, Bruce J.
Appointed Senior Adviser, Division of Reserve Bank
Operations and Payment Systems
688
Returned to Federal Reserve Bank of Richmond
as Senior Vice President
834
Supinski, Ron
533
Survey of Consumer Finances
1, 169, 171
Survey Research Center, University of Michigan,
in articles
2, 171
Syron, Richard F., President, Federal Reserve
Bank of Boston, statement
670
TABLES (For index to tables published monthly,
see guide at top of page A80; for special tables
published during the year, see list on page A69.)
Taxes, state and local government
895
Taxlink-FRB
733
Taylor, Bill, statement by Chairman Greenspan
752
Taylor, Mary Ann, staff study
182
Terms of credit card plans, statistical release
654
Testimony (See Statements to the Congress)
Thrift Institutions Advisory Council
Members, new appointments
125
Thrift Supervision, Office of
532, 835
Trade, merchandise
317
Transaction accounts, reduction in reserve requirements
272

A91

Pages
Treasury and Federal Reserve foreign exchange
operations (See Foreign exchange operations)
Treasury auctions, automation
425
Treasury Direct
732
Treasury Fiscal Service
Bureau of the Public Debt
728
Financial Management Service
728
Treasury, U.S. Department of
3, 196, 251, 256,
403, 520, 529, 603, 727
Truth in lending, Regulation Z (See Regulation Z)
Truth in Lending Act
524, 526
Truth in Lending Simplification Act
612
Truth in Savings Act (Regulation DD)
429, 832, 844
U.S. Securities and Exchange Commission
Underwriters Association of Japan
Uniform Standards of Professional Appraisal Practice
United States One Dollar Coin Act of 1991
Universal card, American Telephone and Telegraph
Uruguay Round

403
587
829
529
654
33

VENDOR Express
Veterans Administration
Vickrey, William, in article
VISA U.S.A

729
802
403
660

WASSOM, Molly S., appointed Assistant Director,
Division of Banking Supervision and Regulation
West Texas Intermediate
Wilson, Donald H., Financial Markets Officer,
Federal Reserve Bank of Chicago, statement
Wolken, John D., article

687
321
492
169

YOUNG, Florence M., appointed Assistant Director,
ACH and check programs, Division of Reserve Bank
Operations and Payment Systems

688

ZEMEL, Robert J., Senior Adviser, Division
of Information Resources Management,
retirement

754

A92

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 December 1991.

A93

1-A

2-B

3-C

5_E

4-D

Baltimore

Pittsburgh

Buffalo

MA«

• •

Charlotte
\

N E W YORK

BOSTON
6-F

7-G

• Nashville

Birmingham.

RICHMOND

CLEVELAND

PHILADELPHIA

8-H

fsrV
GA

Jacksonville

New Orleans

fill

„
Y

Miami
CHICAGO

ATLANTA
9-1

• Helena
MI

••P^JHB11!

MINNEAPOLIS
10-J

12-L

FLHHNI

/ NE

Omaha •

•

• M I H HH

•pBiMMi11

OklahomajCity

KANSAS CITY
11-K

DALLAS

SAN FRANCISCO

• Memphis

A94

Federal Reserve Banks, Branches,
and Offices
FEDERAL RESERVE BANK
branch, or facility
Zip

Chairman
Deputy Chairman

President
First Vice President

BOSTON*

02106

Richard N. Cooper
Jerome H. Grossman

Richard F. Syron
Cathy E. Minehan

NEW YORK*

10045

Ellen V. Futter
Maurice R. Greenberg
Herbert L. Washington

E. Gerald Corrigan
James H. Oltman

Buffalo

14240

James O. Aston

PHILADELPHIA

19105

Peter A. Benoliel
Jane G. Pepper

Edward G. Boehne
William H. Stone, Jr.

CLEVELAND*

44101

Jerry L. Jordan
William H. Hendricks

Cincinnati
Pittsburgh

45201
15230

John R. Miller
A. William Reynolds
Marvin Rosenberg
Robert P. Bozzone

RICHMOND*

23219

Anne Marie Whittemore
Henry J. Faison
John R. Hardesty, Jr.
Anne M. Allen

Robert P. Black
Jimmie R. Monhollon

Edwin A. Huston
Leo Benatar
Nelda P. Stephenson
Lana Jane Lewis-Brent
Michael T. Wilson
Harold A. Black
Victor Bussie

Robert P. Forrestal
Jack Guynn

Richard G. Cline
Robert M. Healey
J. Michael Moore

Silas Keehn
William C. Conrad

H. Edwin Trusheim
Robert H. Quenon
James R. Rodgers
Daniel L. Ash
Seymour B. Johnson

Thomas C. Melzer
James R. Bowen

Delbert W. Johnson
Gerald A. Rauenhorst
J. Frank Gardner

Gary H. Stern
Thomas E. Gainor

Burton A. Dole, Jr.
Herman Cain
Barbara B. Grogan
Ernest L. Holloway
Sheila Griffin

Thomas M. Hoenig
Henry R. Czerwinski

Leo E. Linbeck, Jr.
Cece Smith
Alvin T. Johnson
Judy Ley Allen
Roger R. Hemminghaus

Robert D. McTeer, Jr.
Tony J. Salvaggio

James A. Vohs
Robert F. Erburu
Donald G. Phelps
William A. Hilliard
Gary G. Michael
George F. Russell, Jr.

Robert T. Parry
Patrick K. Barron

Baltimore
21203
Charlotte
28230
Culpeper Communications
and Records Center 22701
ATLANTA
Birmingham
Jacksonville
Miami
Nashville
New Orleans

30303
35283
32231
33152
37203
70161

CHICAGO*

60690

Detroit

48231

ST. LOUIS

63166

Little Rock
Louisville
Memphis

72203
40232
38101

MINNEAPOLIS

55480

Helena
KANSAS CITY
Denver
Oklahoma City
Omaha
DALLAS
El Paso
Houston
San Antonio

59601
64198
80217
73125
68102
75201
79999
77252
78295

SAN FRANCISCO

94120

Los Angeles
Portland
Salt Lake City
Seattle

90051
97208
84125
98124

Vice President
in charge of branch

Charles A. Cerino1
Harold J. Swart1

Ronald B. Duncan1
Walter A. Varvel1
John G. Stoides1

Donald E. Nelson 1
Fred R. Herr1
James D. Hawkins1
James T. Curry III
Melvyn K. Purcell
Robert J. Musso

Roby L. Sloan1

Karl W. Ashman
Howard Wells
Ray Laurence

John D. Johnson

Kent M. Scott
David J. France
Harold L. Shewmaker

Sammie C.Clay
Robert Smith, III1
Thomas H. Robertson

John F.Moore 1
Leslie R. Watters
Andrea P. Wolcott
Gordon Werkema1

* Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New
York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines,
Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
1. Senior Vice President.

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 sub-

scription. For further information regarding a
subscription to the economic bulletin board,
please call 202-377-1986. 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.7

Flow of Funds

Quarterly

Publications of Interest
FEDERAL RESERVE REGULATORY SERVICE
To promote public understanding of its regulatory
functions, the Board publishes the Federal Reserve
Regulatory Service, a three-volume looseleaf service
containing all Board regulations as well as related
statutes, interpretations, policy statements, rulings,
and staff opinions. For those with a more specialized
interest in the Board's regulations, parts of this service are published separately as handbooks pertaining
to monetary policy, securities credit, consumer affairs,
and the payment system.
These publications are designed to help those who
must frequently refer to the Board's regulatory materials. They are updated monthly, and each contains
citation indexes and a subject index.
The Monetary Policy and Reserve Requirements
Handbook contains Regulations A, D, and Q, plus
related materials.
The Securities Credit Transactions Handbook contains Regulations G, 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 are the Board's list

of marginable OTC stocks and its list of foreign
margin stocks.
The Consumer and Community Affairs Handbook
contains Regulations B, C, E, M, Z, AA, and BB, and
associated materials.
The Payment System Handbook deals with expedited funds availability, check collection, wire transfers, and risk-reduction policy. It includes Regulation
CC, Regulation J, the Expedited Funds Availability
Act and related statutes, the official Board commentary on Regulation CC, and policy statements on risk
reduction in the payment system.
For domestic subscribers, the annual rate is $200
for the Federal Reserve Regulatory Service and $75
for each Handbook. For subscribers outside the
United States, the price including additional air mail
costs is $250 for the Service and $90 for each Handbook. All subscription requests must be accompanied
by a check or money order payable to the Board of
Governors of the Federal Reserve System. Orders
should be addressed to Publications Services, mail
stop 138, Board of Governors of the Federal Reserve
System, Washington, DC 20551.

U.S. MONETARY POLICY AND FINANCIAL MARKETS
U.S. Monetary Policy and Financial Markets by AnnMarie Meulendyke offers an in-depth description of
the way monetary policy is developed by the Federal
Open Market Committee and the techniques employed to implement policy at the Open Market Trading Desk. Written from her perspective as a senior
economist in the Open Market Function at the Federal
Reserve Bank of New York, Ann-Marie Meulendyke
describes the tools and the setting of policy, including
many of the complexities that differentiate the process
from simpler textbook models. Included is an account
of a day at the Trading Desk, from morning
information-gathering through daily decisionmaking
and the execution of an open market operation.
The book also places monetary policy in a broader

context, examining first the evolution of Federal
Reserve monetary policy procedures from their beginnings in 1914 to the end of the 1980s. It indicates how
policy operates most directly through the banking
system and the financial markets and describes key
features of both. Finally, the book turns its attention to
the transmittal of monetary policy actions to the U.S.
economy and throughout the world.
The book is $5.00 a copy for U.S. purchasers and
$10.00 for purchasers outside the United States. Copies are available from the Public Information Department, Federal Reserve Bank of New York, 33 Liberty
Street, New York, NY 10045. Checks must accompany orders and should be payable to the Federal
Reserve Bank of New York in US. dollars.

Publications of Interest
FEDERAL RESERVE CONSUMER CREDIT PUBLICATIONS
The Federal Reserve Board publishes a series of
pamphlets covering individual credit laws and topics,
as pictured below. The series includes such subjects
as how the Equal Credit Opportunity Act protects
women against discrimination in their credit dealings,
how to use a credit card, and how to resolve a billing
error.
The Board also publishes the Consumer Handbook
to Credit Protection Laws, a complete guide to consumer credit protections. This forty-four-page booklet
explains how to shop and obtain credit, how to maintain a good credit rating, and how to dispute unfair
credit transactions.

Three booklets on the mortgage process are also
available: A Consumer's Guide to Mortgage Lock-Ins,
A Consumer's Guide to Mortgage Refinancings, and
A Consumer's Guide to Mortgage Settlement Costs.
These booklets were prepared in conjunction with the
Federal Home Loan Bank Board and in consultation
with other federal agencies and trade and consumer
groups.
Copies of consumer publications are available free
of charge from Publications Services, mail stop 138,
Board of Governors of the Federal Reserve System,
Washington, DC 20551. Multiple copies for classroom use are also available free of charge.

^ Consumer Handbook
to Credit Protection
Laws